Post on 07-Apr-2018
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was undervalued by53% against the USdollar in August.Earlier, a report by con-
sultant PwC suggestedthat the Indian economywould surpass theJapanese economy in2012. The IMF expectsthe Japanese economyto contract 0.7% thisyear while India is ex-pected to grow 8.2%. Abigger economy couldalso give the govern-ment additional cloutand bargaining power
overseas.India, once a recipientnation for foreign aid,could now come to-gether with Brazil, Rus-sia and China to form afund to stabilise totter-ing economies in theEuro zone.Globally, companieshave their eyes set onIndia as a rapidly grow-ing nation that is full ofopportunities. Thesheer scale of develop-ment needed coulddrive growth for manyyears. India has theadvantage of size. Thescope of growth andexcess capacity presentin terms of resourceswould drive growth inthe future.
India might become theworld's third largesteconomy in 2011 byovertaking Japan in
terms of gross domesticproduct (GDP) meas-ured according tothe domestic pur-chasing power ofthe rupee, otherwisecalled purchasingpower parity.India is now thefourth-largest econ-omy behind the US,China and Japan.Numbers from 2010
show that the Japa-nese economy wasworth $4.31 trillion,with India snappingat its heels at $4.06trillion. But afterMarch's devastatingtsunami and earth-quakes, Japan's econ-omy is widely expectedto contract while India'seconomy will grow be-tween 7% and 8% thisfiscal.IMF forecasts showIndia and Japan neck-to-neck in 2011, but thedisaster in Japan hasbrought the event for-ward. Were it not for theearthquake and tsu-nami, India would haveovertaken Japan inaround 2013-14. The
purchasing power parity(PPP) method meas-ures the size of aneconomy by levelling
price differences be-tween countries that
occur in the process ofconversion to a singlecurrency. Under thismethod, a dollar shouldbe able to buy the sameamount of goods any-where in the world andexchange rates shouldadjust accordingly. TheEconomist's Big MacIndex, which takes theprice of a Big Mac bur-ger across 120 coun-tries to calculate the'real' price of its cur-rency, is a crude way tomeasure PPP. Indiawas included in the in-dex recently. It showedthat the Indian rupee
INDIA TO TOPPLE JAPAN AS WORLD'S 3RD-LARGEST ECONOMY
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FACT OF WEEK 10
INTERVIEW 11-12
ZARGONOMICS 13
ENTREPRENEUR 14-15
Columnist 16
Date 26 September 2011
Edition 23rd , Issue 19-24 September
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Apple Inc has been
granted 40 patents in
China, which will helpthe maker of iPhones
and iPads gain more
intellectual property pro-
tection in the country.
Apple, whose mobile
devices are among the
most pirated gadgets in
China, was granted the
patents on Sept 9. The
patents cover 37 of its
products including the
iPhone, iPad and
MacBook Air, and the
architecture of its three
stores in Shanghai.
Most of the new patents
were related to aspects
of its mobile phones,
such as user interface
and speaker technology.
Apple has been involved
in numerous lawsuits
with handset manufac-
turers, including SouthKorea's Samsung Elec-
tronics Co Ltd and Tai-
wan's HTC Corp. Sam-
sung Electronics was
considering legal action
to block sales of Apple's
new iPhone, in what
could be its strongest
step to defend against
claims by the US Com-
pany that it had copied
its product designs.
provide a Mitsubishi-
badged luxury sedan
based on its Fuga
model from the summer
of 2012. The Japanese
Nissan Motor Co and
Mitsubishi Motors Corpannounced an expan-
sion of their original
equipment manufactur-
ing (OEM) agreement to
include a high-end se-
dan that had been under
consideration under
their broad operational
tie-up. Nissan will
automakers will also
consider a deal underwhich Mitsubishi would
build the electric Mini-
cab-MiEV commercial
van for Nissan. Nissan
and Mitsubishi deep-
ened their cooperation
late last year in an effort
to share technology and
resources.
APPLE GRANTED 40 PATENTS IN CHINA
NISSAN, MITSUBISHI MOTORS ANNOUNCE NEW OEM MODEL
emerging generation of
green-energy automo-
biles here. And the state
-controlled Chinese auto
industry is just as eager
for expertise from GM,
an acknowledged globalleader in electric car
technology. GM's deci-
sion to develop electric
cars in China would be
part of the company's
effort to improve the
technical capabilities of
its joint ventures in
China, as the country's
car buyers become
more demanding.
GM holds minoritystakes in joint ventures
in China that sell more
cars each year than GM
sells in the U.S.
GM TO DEVELOP ELECTRIC CARS WITH CHINESE AUTOMAKER
General Motors would
develop electric cars in
China through a joint
venture with a Chinese
automaker, and would
transfer battery and
other electric car tech-
nology to the venture.GM, which is already
the largest foreign
maker of conventional
vehicles in China, is
keen to help define the
Page 2
state-controlled
Chinese auto
industry is just as
eager for expertise
from GM
Derik times CORPORATE WATCH
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Bosch and Siemens
Home Appliances
Group (BSH), largestmanufacturer of home
appliances in Europe
announced the launch
of Bosch home appli-
ances in India on 21st
Sep 2011. The brand
will be made available
across India in two
phases. The initial prod-
uct launch for India will
be done through leading
multi-brand retailers in
Tamil Nadu, Karnataka,
Andhra Pradesh and
Delhi-NCR region and inthe second phase the
products will be made
available across In-
dia. On occasion of the
launch, Marc Hantscher,
MD & CEO, BSH In-
dia said, "Bosch home
appliances will be avail-
able across India by mid
-2012." Hantscher also
confirmed the allotment
of land by Tamilnadu
government for the construc-
tion of Bosch factory in In-
dia. Bosch will be launchingtheir range of washing ma-
chines, refrigerators and
washing machines at this
point. Bosch will be distribut-
ing through 120 dealers
across 220 outlets in the
country. Advertising for the
brand is being handled by
Ogilvy and the focus is will be
mostly mass-media in TV
and print as well as shop-in-
shop activities.
and gas dehydration units,
with required utilities andsupporting facilities, as
well as flow lines, well-pad
piping, a remote manifold
station and liquid and gas
export pipelines. It will be
situated at the Lekhwair
oil and gas fields in
Oman. The order was
bagged by L&T Hydrocar-
Engineering and construc-
tion major Larson & Tou-bros hydrocarbon division
has bagged an Rs 700
crore contract from Petro-
leum Development Oman
for setting up a 3-
MMSCMD Greenfield gas
treatment plant. The gas
treatment plant will com-
prise gas desulphurization
bon's mid and downstream
business division through aninternational competitive bid-
ding (ICB) tender. The single-
train gas treatment plant at
Lekhwair gas will export
treated gas to the government
gas plant in Yibal and un-
sterilized condensate and wa-
ter to the existing Lekhwair
production station.
BOSCH HOME APPLIANCES LAUNCHED IN INDIA
L &T BAGS RS 700 CR ORDER FROM OMANESE GAS COMPANY
on business innovation in
software product develop-
ment, test engineering
and business critical plat-
form development.
HCL has also announced
Microsoft as its first offi-
cial enterprise customer.
Microsoft director Brad
Weed pledged $200,000
from the workforce investment
act fund to HCL to assist with
the training of future employ-
ees from Seattle area. The
collaborative engineering hub
will have a seating capacity of
350 people and will provideboth engineering and product
development services in the
areas of internationalization
and mobility.
HCL TECHNOLOGIES IN WASHINGTON TO CREATE 400 JOBS
HCL Technologies on
22nd September said it
has opened a global de-
livery centre in Redmond,
Washington, where its
initial investment of $4
million will create over
400 jobs in the Seattlearea over the next two
years. The new centre will
support the company's
continued global expan-
sion and increased focus
Page 3Derik times CORPORATE WATCH
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US Treasury Secretary Timothy
Geithner identified India, China
and Brazil as countries that will
experience rapid growth in thecoming decades, which would
provide "consistent strength" to
the American economy. It is
very likely everyone going to
see India, China, and Brazil-
the most populous countries
of the world grow very, very
rapidly in the coming decades.
The most important thing that
will determine the pace of ex-
port growth over a five-year
period of time is how fast the
world grows. But US
export growth has been
really very strong in the
earliest days of the re-covery and it's encour-
agingly strong because
it's happening across
the American economy,
from agriculture through
manufacturing, to all the
high-tech stuff and ser-
vices. That shows,
again, one of the great
fundamental strengths
of the United States,
which is that because
productivity growth has
been so high here, be-
cause the basic dynam-
ics of innovation are sostrong, our financial sys-
tem, even with the mess
of the crisis, is still really
better than any system
in the world at allocating
capital to innovators to
support growing compa-
nies.
the economic bilateral
relationship betweenIndia and the United
States and creating
jobs. Noting that eco-
nomics and globalisa-
tion is not a zero-sum
game, Indias growing
economy should not be
seen as a burden on the
US, nor a symbol of
Americas failure and
Welcoming Indian announce-
ment on guidelines for Infra-structure Debt Fund, the US-
India CEO Forum announced
several initiatives to improve
the private-public-partnership
between the two sides in areas
like clean drinking water, con-
servation and distribution sys-
tem in India. The CEO Forums
recommendations have pro-
vided a roadmap to strengthen
Indias success. Job
creation there does notequate to job loss here
the Reserve Bank an-
nounced guidelines for
permitting banks and
Non Banking Financial
Companies (NBFCs) to
set up Infrastructure
Debt Funds (IDFs) to
help meet long-term
financing for the sector.
CEO FORUM ANNOUNCES INITIATIVES TO ENHANCE INDIA-US TIES
against inflation, while
most of the world frets
about slowing US
growth and a European
debt crisis. The RBI's
modest approach would
be understandable if
they were keeping the
rupee stable in trade-
weighted terms, but that
is not the case. The ru-pee has been increas-
ingly undervalued in
nominal trade-weighted
terms.
RBI WARY OF LOSING DOLLARS, PREFERS MODEST FX INTERVENTION
The Reserve Bank of India has
not intervened in a big way in
the currency markets, unlike
most of its emerging Asian
peers, because it can ill-afford
to expend a limited and fragile
holding of foreign exchange
reserves. That reluctance tointervene is just one of the fac-
tors that set the RBI apart. It is
also currently the most hawkish
in the region, waging an
expensive and tough war
Page 4
India, China and
Brazil will
experience rapid
growth in the coming
decades, which would
provide "consistent
strength" to the
American economy.
Derik times economy WATCH
INDIA, BRAZIL, CHINA TO GROW RAPIDLY IN COMING DECADES: US
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The Finance Minister,
Mr. Pranab Mukherjee
has urged the G-20 to
strongly address theissue of excessive fi-
nancialisation of the
commodity markets,
stating that this could
hurt the real economy
through high and vola-
tile input prices. Making
an intervention at the
G20 Development and
Finance Ministers
meeting at Washington
on September 23, Mr.Mukherjee highlighted
that it does seem odd
that commodity prices
should be rising at a
time when there is un-
certainty regarding the
global recovery andgrowth. He noted that
there were sharp differ-
ences of opinion on
what was driving the
spike and volatility in
commodity prices. The
G20 must also address
the increasing food in-
security, Mr. Mukherjee
said, adding that sus-
tainable productivity,
better market, informa-tion that improves trans-
mission of market sig-
nals, more open trade,
and sustained invest-
ment are vital to boost
agricultural growth. Mr.
Mukherjee suggestedthat financing infrastruc-
ture development in de-
veloping economies
could be a good way to
add demand to the
global economy and
ensure sustainable
global growth. Many
developing countries
have developed the ca-
pacity to grow rapidly
but are constrained bypoor infrastructure.
cludes submission of
reports of steering com-
mittees and working
groups and eliciting
views of different minis-tries and departments.
After the finalisation of
the document, it will be
placed before the full
Planning Commission,
the Union Cabinet and
the National Develop-
ment Council (NDC),
the highest policy mak-
ing body of the country.
This exercise is likely totake time. The docu-
ments for 10th and 11th
Plans too were finalised
much after the begin-
ning of the respective
Plan periods. The 11th
Plan which began in
April 2007 was ap-
proved by the NDC in
The 12th Plan docu-
ment that seeks to raise
the economic growth
rate to 9% during the
five-year period will notbe ready by April 1,
2012, the day the next
Plan begins. As per the
schedule, the Planning
Commission will begin
writing the 12th Plan
document that runs into
several volumes after
March 2012. Tradition-
ally, the Plan panel has
been unveiling the pol-icy documents after the
lapse by several months
and this time it would be
no exception. The Com-
mission is scheduled to
complete spade work
relating to formulation of
the Plan document by
March 2012. This in-
December 2007. Simi-
larly, the 10th Plan
which begun in April
2002, was cleared for
implementation by theNDC in December
2002. As far as pro-
gress of the 12th Plan
documentation is con-
cerned, the NDC had
approved the 'Approach
Paper', which provides a
broad framework of the
government policy to be
pursued in the five-year
period to achieve thedesired growth rate, on
August 20 last. The Ap-
proach Paper would be
the basis for running the
various government pro-
grammes and schemes
till the new Plan is un-
veiled and implemented.
RISING COMMODITY PRICES HURTING ECONOMY
12TH PLAN DOC WILL NOT BE READY BY APR 1, 2012
Page 5
As per the schedule,
the Planning
Commission will begin
writing the 12th Plan
document that runs
into several volumes
after March 2012.
Derik times economy WATCH
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India's foreign exchange(forex) reserves rose by$266 million to $316.76
billion for the weekended Sep 16, after de-clining by $4.29 billion inthe previous week. For-eign currency assets,the biggest componentof the forex reserveskitty, rose by $202 mil-lion to $280.90 billionduring the week underreview. The foreign cur-rency assets expressedin US dollar terms in-
clude the effect of ap-
preciation or deprecia-tion of non-US curren-cies such as the pound
sterling, euro and yenheld in reserve. The as-sets had declined by$4.17 billion in the previ-ous week. The value ofspecial drawing rights(SDRs) rose by $2 mil-lion to $4.55 billion andreserves with the Inter-national Monetary Fund(IMF) increased by $62million to $2.99 billion.However, gold reserves
remained unchanged at
$28.32 billion. Gold re-serves had jumped by$2.97 billion during the
week ended Sep 2 dueto revaluation in prices.Rise in gold prices hadpushed India's foreignreserves kitty to an all-time high of $320.78billion for the weekended Sep 2. However,the forex reserve kittydeclined by $4.29 billionin the following week.
China will invest two trillion yuan ($313 billion) till 2015 to promote low-
carbon economy. The investment will help reduce energy consumption perunit of gross domestic product in China by 16 percent at the end of 2015compared with the level of 2010. During the five years to 2010, energy con-sumption per unit of GDP dropped by 19.1 percent. China will launch low-carbon pilot programmes in five provinces and eight cities during the nextfive years
INDIA'S FOREX RESERVES RISE BY $266 MILLION
CHINA TO INVEST OVER $313 BN IN GREEN ECONOMY
maintain international
policy coordination and
coordination through the
G-20. They also ex-
pressed their concern
over the slow pace of
quota and governance
reforms, including in the
area of surveillance in
the IMF, and for theneed for multilateral de-
velopment banks to mo-
bilize more resources for
low income and
developing countries.
OPEN TO SUPPORTING GLOBAL ECONOMIC STABILITY THROUGH IMF: BRICS
The Finance Ministers
of BRICS countries Bra-
zil, Russia, India, China
and South Africa said
they are open to the
idea of providing sup-
port through the Interna-
tional Monetary Fund(IMF) or other financial
institutions to address
global economic chal-
lenges. We underscored
the continuing need to
Page 6
BRICS
countries are
open to the
idea of
providingsupport through
the IMF.
Derik times economy WATCH
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7
The Insurance Regula-
tory and Development
Authority are planningseveral regulatory
changes as well as
regulatory actions to
strengthen the growing
insurance sector. The
changes in the curricu-
lum of agents' training
would help enhance
their productivity and
effectiveness. There
was a need to widen the
number of agencybranches to increase
the reach of effective
products. There was
also a need to make the
broking industry more
vibrant considering that
the current licensing
system for broking was
pretty expensive. The
issues related to fraud
management are: the
industry was not doing
an effective database
management and that it
needed to be more
number based in its ap-
proach. Thus, a data-
base driven fraud man-
agement system wouldbe an effective solution
in this regard. The do-
mestic insurance market
was expanding rapidly
and provided a unique
opportunity for innova-
tions in terms of prod-ucts and business mod-
els. The increased num-
ber of insurers had
given an impetus to put
in place the revised
regulatory framework.
Boosted by other favor-
able factors such as
better terms, availability
of wide variety of prod-
ucts and tax benefits,
the insurance sectorcould emerge as one of
the fastest growing in-
surance markets in the
coming decade.
the same period lastyear, the increase in
credit was to the tune of
Rs 6,90,889 crore, or 20
per cent. As on Septem-
ber 10, 2010, bank
credit was Rs 33,
83,406 crore. The de-
Bank credit increased toRs 40,74,295 crore dur-
ing the fortnight ended
September 9, a rise of
Rs 29,433 crore from
Rs 40,44,861 in the pre-
vious fortnight ended
August 26, 2011.Over
mand for credit is mov-ing slowly and the credit
off-take is more do to
with corporate utilizing
loans that were sanc-
tioned earlier.
REGULATORY CHANGES ON ANVIL IN INSURANCE SECTOR
BANK CREDIT UP 20% FROM LAST YEAR
between all depart-
ments and bodies re-
lated to the automobile
industry and frame
guidelines on various
issues.
The NAB would mainly
be the coordinating au-
thority for the upcoming
seven automotive cen-
ters of National Automo-
tive Testing and R&D
Infrastructure Project
(NATRiP). It would also
look into other policy-
related issues such as
electric and hybrid mo-
bility and replacement of
vehicles.
BOARD FOR AUTOMOTIVE INDUSTRY SOON
The Ministry of Heavy
Industries is planning to
set up a National Auto-
motive Board (NAB) as
a nodal agency for all
policy and certification
related issues of the
automobile industry.
The NAB will work as a
coordinating authority
Page 7
The NAB would mainly
be the coordinating
authority for the
upcoming seven
automotive centers of
National Automotive
Testing and R&D
Infrastructure
Project (NATRiP).
Derik times industry WATCH
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8
Zero duty entry for Bangla-
deshi garments to India
could indirectly end up of-
fering Chinese fabrics duty-free access into the coun-
try. This is because Bang-
ladesh is almost entirely
dependent on Chinese fab-
rics for the manufacture of
its exportable garment
items. The Bangladeshi
garments sector, despite
lacking a raw material
base, has emerged more
cost competitive than
the Indian clothing in-
dustry and now has an
edge even over the Chi-nese garment industry.
Bangladesh has sur-
mounted the problem by
riding on cheap Chinese
fabric imports and phe-
nomenally low labor
costs back home. In the
case of the Bangladesh-
India pact, the Rules of
Origin of exportable gar-
ment products are to be
determined by the
Agreement on South
Asia Free Trade Areanorms, which permits
garment items made of
imported fabrics to qual-
ify for duty-free market
access to India subject
to the condition that at
least 30 per cent value
addition should take
place in Bangladesh.
achievement of targets.
Of the 670-plus projects
awarded for develop-
ment under the PPP
mode, with aggregatevalue of about
Rs3,80,000 crore, 40
percent of these invest-
ments are accounted for
by the four Southern
states. Andhra Pradesh
managing to bag the
largest share (44 per
cent) followed by Karna-
Private sector's role in in-
frastructure is poised for
significant growth in the XII
Five-year plan, possibly
accounting for about 35 to40 per cent of projected
investment of $1 trillion.
The XII Plan seeks to
achieve a growth target of
about 9 per cent where
private sector investments
and public-private partner-
ship (PPP) investments are
set to play a larger role in
taka (29), Kerala (15)
and Tamil Nadu (12 per
cent). The South ac-
counts for 36 per cent of
projects awarded underPPP whose value is es-
timated to be about 40
per cent. He said that
there was a need for
independent regulator
and a mechanism to
resolve disputes.
PACT WITH BANGLADESH MAY OPEN INDIA'S DOORS TO CHINESE FABRICS
PRIVATE SECTOR INVESTMENTS SEEN RISING
ing pacts of companies,
which are not having 3G
services on pan-India ba-
sis. The pacts help them
reduce cost. These com-
panies had entered into a
bilateral roaming agree-
ment, both inter and intra
circle, to provide 3G ser-vices to customers in the
circles where they cannot
build their own 3G net-
work as they do not have
the license, in order to
bring a pan-India experi-
ence of 3G services to
their users. Airtel, Aircel
and Reliance Communi-
cations each owns 3G
spectrum license in 13 of
the 22 telecom circles,while Vodafone has it in
10 circles and Idea and
the Tatas in nine circles.
TRAI TO LOOK INTO 3G ROAMING PACTS OF LEADING TELCOS
Telecom regulator TRAI has
sought information from
leading service providers on
their bilateral agreements for
entering into 3G roaming
pacts, to ensure that there is
no violation of license terms
and conditions. TRAI is in-
vestigating into 3G roaming
agreements of telecom op-
erators. Earlier, Department
of Telecom (DoT) had also
raised doubts over 3G roam-
Page 8
The XII Plan
seeks to achieve
a growth target
of about 9 per
cent
Derik times industry WATCH
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9
Poor connectivity in Ba-
rak Valley region of As-
sam, coupled with er-
ratic power supply, hasbecome an area of
serious concern for the
tea industry, as the in-
dustry attributes it as a
major reason for loss of
competitiveness. The
tea industry argued that
due to abysmal condi-
tion of roads, extremely
slow progress of the
railway gauge conver-
sion project between
Lumding and Silchar, in
addition to non-
availability of qualitypower, was increasing
the cost of production of
tea gardens in Barak
Valley, which is the sec-
ond tea producing re-
gion in Assam after
Brahmaputra Valley.
Consequently, depend-
ence on self-generation
of power by using gen-
erators was on the rise
in Assam, resulting in
huge consumption of
diesel, which in turn was
increasing the cost ofproduction of tea. In the
tea producing regions of
Assam West Bengal,
absenteeism had even
touched 40 per cent dur-
ing the peak plucking
season in the recent
days. TAI has requested
the Centre not to offer
NREGS works during the
plucking season in the
tea growing regions.
over $1, 15,000 billion,
while that of the US it will
be around $1,00,000 bil-lion. China will overtake
the US as the world's
largest banking industry
by 2015, when it is ex-
pected that the asset size
of Chinese banks will be
nearly $30,000 billion,
The Indian banking sector
will be the third largest
with an asset size of$28,500 billion by 2025,
according to the Indian
Banks Association by
FICCI and global consult-
ing group BCG. By 2025
the Chinese banks will
have an asset size of
while that of the US will
be around $28,000 billion.
Domestic banks deploy62 per cent of staff in cus-
tomer-facing roles as
against the benchmark of
82 per cent observed by
BCG globally.
POOR CONNECTIVITY, ERRATIC POWER SUPPLY HIT ASSAM TEA INDUSTRY
INDIAN BANKING SECTOR TO BE 3RD LARGEST BY 2025: BCG
tries was $10.6 billion in
2010-11. There is, how-
ever, ample scope of
diversifying the existing
trade basket by bringing
in many more manufac-
tured goods. Mr. Scindia
met South African Dep-
uty Minister for Trade
and Industry Elizabeth
Thabethe and dis-
cussed ways to in-
crease trade coopera-
tion between the two
countries. The two
stressed upon the need
for enhancing ties in the
small and medium com-
panies to tap the full
potential of bilateral
trade. Mr. Scindia said
there was scope for uni-
versities and research
and scientific institutions
to enter into R&D col-
laborations of both
countries.
INDIA, SOUTH AFRICA TO STRENGTHEN TIES IN MSME SECTOR
India and South Africa
have agreed to
strengthen cooperation
in the medium, small
and medium enterprises
(MSME) sector through
joint ventures, technol-
ogy collaborations and
marketing tie-ups. At
present, South Africa is
India's second largest
trading partner. Trade
between the two coun-
Page 9
The Indian
banking sector
will be the
third largest
with an asset
size of $28,500
billion by
2025
Derik times industry WATCH
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10
Page 10
1. Hewlett-Packard has replaced its embattled Chief Executive with former eBay Chief Execu-
tive Meg Whitman, saying that the company's strategy to transform its business was sound.
2. M&M is planning to launch its global SUV christened XUV 5oo (pronounced 5 double oh) on
September 28. This is the first product designed and developed from its world class R&D
facility at Mahindra Research Valley near Chennai.
3. UBS chief executive Oswald Gruebel has resigned over a $2.3 billion rogue trading loss.
The move ends days of speculation about whether Mr. Gruebel could retain his position fol-
lowing the latest scandal to hit Switzerlands biggest bank.
4. Marking its first ever PSU acquisition, state-run NMDC on Thursday announced the 50 per
cent stake purchase in Australia-based Legacy Iron Ore as cornerstone investor for nearly
19 million Australian dollar.
5. Bharat Sanchar Nigam Ltd. (BSNL) has reported a loss of around Rs.6,000 crore in 2010-
11, which is up three times compared to Rs.1,822 crore reported in 2009-10, while its totalrevenues also declined to Rs.28,876 crore, a dip of around 10 per cent from Rs.32,072
crore.
6. Japanese auto major Nissan on Tuesday launched its mid-size sedan Sunny and said it
aimed to sell 12,000 units of the new car by the end of this fiscal.
Base model at Rs.5.78 lakh-The 1.5-litre petrol engine car is priced at Rs.5.78 lakh for the
base model and Rs.7.68 lakh for the top-end model (ex-showrooms in New Delhi).
7. Spelling out its endeavour to focus on improvement in cost competitiveness and quality,
Bharat Heavy Electricals Ltd. on Tuesday said it was on track to become a 20,000-MW
company in power equipment making by March, 2012.
8. The plea of UK-based telecom operator Vodafone to buy 5.48 per cent stake in the joint
venture Vodafone-Essar from two Mauritius based entities has been approved, the
government said on Monday.
9. NTPC has announced a major investment initiative for setting up four thermal power pro-
jects in coal-rich Madhya Pradesh and Chhattisgarh at a cost of Rs.41,000 crore during the
XII Plan (2012-17).
10. The ban on illegal mining in Karnataka is adversely impacting the sales of trucks and tip-
pers. Manufacturers such as Ashok Leyland, Indias second-biggest truck maker and VE
Commercial Vehicles are expecting a hit on retail off take of trucks if the Supreme Court ban
on mining is not lifted.
11. A six-tonnes, 20 years old NASA science satellite fell back to Earth, the U.S. space agency
said on Saturday, but it was not yet known where the remains landed.
Derik times Facts of the week
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Page 11Derik timesINTERVIEW
N P Singh, Multi Screen MediaMulti Screen Media (MSM) or Sony is having a
great year. It recently gained number two posi-tion on the Hindi general entertainment channel
(GEC) charts, after Star. This is, largely, on the
back of three new shows Bade Ache Lagte
Hain, Saas Bina Sasural and Kaun Banega
Crorepati. The Rs 1,000-crore Sony, however,
has always been the odd one in the Rs 30,000-
crore television industry.
What has changed in what MSM was doing?
There is a consistency in strategy that we did not have earlier. We kept
changing our strategy and programming and, therefore, had intermittent
success. We are very clear about whom we are addressing the
women in the age group 18-35. We don't want to lose focus and have
followed this to a T in the last one year. We have even give her (our
viewer) a name, Kusum. All our content is talking to her and we have
picked up shows that we hope will resonate with her. We are also look-
ing at more family-oriented programming like Kaun Banega Crorepati.
We have used (the success of KBC on Sony) to funnel viewership to our
women's shows. Also, now we have a very strong portfolio. We are the
only company with two of the five Hindi GECs (SET and Sab TV). We
have very strong Hindi movies channels with Max. (MSM also has rights
to several lucrative cricket tournaments). And now, we have started with
a very strong focus on fiction. That is what is giving us consistent ratings
and growth. Non-fiction gives a lot of spikes and then the viewers go
away.
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You tried this whole tack earlier with programming from Yash RajFilms (YRF). Why didn't that work?What we brought to TV with the YRF shows was an international look
and feel. They were nice shows, but lacked mass content. They weremore focused on the male. That strategy doesn't work on television.
Sony's success has always been a flash in the pan. Is there reasonto believe this might be different?We have always had very good shows, which did well Jassi, Heena,Kusum, CID. But somehow, we never made it to number one. So, we arenow following a consistent and sane strategy because we want to be aprofitable business. We are not running the business on ego.
Do you miss not owning distribution assets?Being platform-agnostic has helped us. We are favourites with cable and DTH op-erators because they know we don't have a competing company. We have One Al-liance, (a joint venture with Discovery), but nobody is threatened by it (because itonly distributes channels and doesn't own any pipeline).
There is some talk among broadcasters about doing programming in-house, la the US. This will help tackle rising programming costs. Your view?
There is merit in doing programming in-house. For instance, we do a large scaleshow, Xtra Innings for Max, which is in-house. It saves on costs and gets us bettermargins. So, for non-fiction and in some areas, doing in-house programmingmakes sense. But for fiction, the way the market is structured right now, (lots offragmentation and choice of ideas), it makes more sense to outsource. It hasworked beautifully for us. Also, non-fiction programming is done in a very controlledenvironment.
http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/
(This circulation is just for the education purpose)
Derik times INTERVIEW
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NET UNREALIZED APPRECIATIONThe change (positive or negative) in value that shares held in a tax-deferred account will ex-perience once they is sold. Net unrealized appreciation does not undergo income tax when it isdistributed, so this should be carefully considered by investors who are distributing stock from
their retirement plan to another account, which might be subject to income tax.
UNDERWATERA call option whose strike price is higher than the market price of the underlying security, or aput option whose strike price is lower than the market price of the underlying security. Thus,there is no incentive to exercise the option today.
ADJUSTED BASIS VALUEOriginal cost or base price of a fixed asset from which depreciation is deducted, and to whichcapital expenditure is added.
HARD SELLINGApplying psychological pressure (by appealing to someone's fears, greed, or vanity) to per-suade the prospect to make a quick purchase decision. This approach is justified onthe ground that most people are lazy and will postpone making a decision even if it were intheir best interest to make the commitment.
MANAGEMENT PREROGATIVEEmployer's or management's unqualified-authority to exercise its discretion in certain areaswithout discussions with or the agreement of a union. Also called management rights, they arenot subject to negotiations and may be expressly stated as such in a collective bargainingagreement.
DATA-MININGThe process of using technology to identify patterns and prospects from large amounts of infor-mation.
ADVERTISING ELASTICITYThe relationship between a change in advertising budget and the resulting change in productsales.
GALVANOMETER TESTA research method that measures physiological changes in consumers when asked a question
or shown some stimulus material such as an ad.
Derik times zargonomy
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Lawrence "Larry" Page (born March 26, 1973) is an Ameri-can computer scientist and internet entrepreneurwho, with SergeyBrin, is best known as the co-founder ofGoogle. As of April 4,2011, he is also the Chief Executive Officerof Google, as an-
nounced on January 20, 2011. As of 2011, his personal wealth isestimated to be $16.7 billion.
Early life and EducationPage was born in East Lansing, Michigan. His father, Carl Page,earned a Ph.D. in computer science in 1965 when the field was inits infancy, and is considered a "pioneer in computer science and
artificial intelligence." Both he and Page's mother were computer science professorsat Michigan State University. Page is Jewish on his mother's side, and was raised without re-ligion.Page attended the Okemos Montessori School (now called Montessori Radmoor)
in Okemos, Michigan from 1975 to 1979, and graduated from East Lansing High School in1991. He holds a Bachelor of Science degree in computer engineering from the University ofMichigan with honours and a Masters degree in computer science from Stanford University.While at the University of Michigan, "Page created an inkjet printermadeofLego bricks" (actually a line plotter), served as the president of the Eta Kappa Nu in Fall1994,and was a member of the 1993 "Maize & Blue" University of Michigan Solar team.After enrolling for a Ph.D. program in computer science at Stanford University, Larry Pagewas in search of a dissertation theme and considered exploring the mathematical proper-ties of the World Wide Web, understanding its link structure as a huge graph. His supervi-sorTerry Winograd encouraged him to pursue this idea, which Page later recalled as "thebest advice I ever got". Page then focused on the problem of finding out which web pages
link to a given page, considering the number and nature of such backlinks to be valu-able information about that page (with the role ofcitations in academic publishing in mind).[15] In his research project, nicknamed "BackRub", he was soon joined by Sergey Brin, a fel-low Stanford Ph.D. student.John Battelle, co-founder ofWiredmagazine, wrote of Page that he had reasoned that the"entire Web was loosely based on the premise of citation after all, what is a link but a ci-tation? If he could devise a method to count and qualify each backlink on the Web, asPage puts it 'the Web would become a more valuable place'. Battelle further described howPage and Brin began working together on the project:"At the time Page conceived of BackRub, the Web comprised an estimated 10 milliondocuments, with an untold number of links between them. The computing resources re-
quired to crawl such a beast were well beyond the usual bounds of a student project. Un-aware of exactly what he was getting into, Page began building out his crawler."The idea's complexity and scale lured Brin to the job. A polymath who had jumped fromproject to project without settling on a thesis topic, he found the premise behind BackRubfascinating. "I talked to lots of research groups" around the school, Brin recalls, "and thiswas the most exciting project, both because it tackled the Web, which represents humanknowledge, and because I liked Larry."Brin and Page originally met in March 1995, during a spring orientation of new computerPh.D. candidates. Brin, who had already been in the program for two years, was assigned
Derik times Entrepreneur
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to show some students, including Page, around campus, and they later became goodfriends.BusinessIn 1998, Brin and Page founded Google, Inc. Page ran Google as co-president along withBrin until 2001 when they hired Eric Schmidt as Chairman and CEO of Google. In January2011 Google announced that Page would replace Schmidt as CEO in April the sameyear. Both Page and Brin earn an annual compensation ofone dollar. On April 4, 2011,Page officially became the chief executive officer of Google, while Schmidt stepped downto become executive chairman.Other interestsPage is an active investor in alternative energy companies, such as Tesla Motors, whichdeveloped the Tesla Roadster, a 244-mile (393 km) range battery electric vehicle. He contin-ues to be committed to renewable energy technology, and with the help ofGoogle.org,Google's philanthropic arm, promotes the adoption of plug-in hybrid electric cars and otheralternative energy investments. Brin and Page are the executive producers of the 2007film Broken Arrows.Awards and recognitionsPC Magazine has praised Google as among the Top 100 Web Sites and Search Engines(1998) and awarded Google the Technical Excellence Award, for Innovation in Web Appli-cation Development in 1999. In 2000, Google earned a Webby Award, a People's VoiceAward for technical achievement, and in 2001, was awarded Outstanding Search Service,Best Image Search Engine, Best Design, Most Webmaster Friendly Search Engine, andBest Search Feature at the Search Engine Watch Awards."In 2002, Page, along with Sergey Brin, was named to the MITTechnology ReviewTR100,as one of the top 100 innovators in the world under the age of 35. In 2003, both Brin andPage received an honoraryMBA from IE Business School "for embodying the entrepre-neurial spirit and lending momentum to the creation of new businesses...." And in 2004,they received the Marconi Foundation Prize, the "Highest Award in Engineering," and wereelected Fellows of the Marconi Foundation at Columbia University. "In announcing their se-lection, John Jay Iselin, the Foundation's president, congratulated the two men for theirinvention that has fundamentally changed the way information is retrieved today." They
joined a "select cadre of 32 of the world's most influential communications technology pio-neers...." He was elected to the National Academy of Engineering in 2004. In 2005, Brinand Page were elected Fellows of the American Academy of Arts and Sciences. In 2002the World Economic Forumnamed Page a Global Leader for Tomorrow and in 2004 the XPRIZE chose Page as a trustee for their board.In 2004, Page and Brin were named "Persons of the Week" by ABC World News Tonight.
Page received an honorary doctorate from the University of Michigan in 2009 during
graduation commencement ceremonies. In 2011, he was ranked 24th on the Forbeslist of
the worldsbillionaires and as the 11th richest person in the United States
Derik times Entrepreneur
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Wellness matters
This article talks about the changing perception of Indians towards their health care and
how the pharmaceutical industries are taking edge over it.According to a survey reports, the increase in total consumer spending on healthcare of In-dia from 2002-2005 to 14% & to household spending on healthcare is expected to growfrom 7% to 13% by 2025. The same report estimated that the total investment of pharmaindustry of India between2005-2015 to $20 billion this would lead to India among top 10
pharmaceuticals in the world.The people are becoming more health conscious that means now to people wellness mattersa lot. the Consumer behavior is changing.Brown bread is replacing white bread, sugar free chocolates & biscuits are more preferred.Health supplements include honey; juices are experiences double digit growth. Breakfasts
are also change. Now people like to have light breakfast including cornflakes, oats, juicesinstead of prathas etc.
Ayurvedic spas are becoming very famous in Metro & mini- Metro cities. Yoga has at-tracted more than 70% of Indians including people of all standards.
Really, wellness is new mantra & new growth to pharmaceutical industries
Like disease management, wellness has many dimensionsIllness or wellness- is this always true that if a person is not ill, he is well. Example im-
munity providing products (chyawanprash) are a wellness offerings or it just givesthe feeling of being good.
Mind or Bodyis wellness is related to physical health or mental health? Ex- a personsuffering from diabetes, who is otherwise leading an active life, could be said to be in astate of wellness, in spite of having disease.Medicine or Food- is wellness about substituting medicine with food & food supple-ments? Dietary food helps to attain wellness by providing proper nourishment.
Products & servicesdoes the efficiency of wellness depends upon the size of the in-dustry? If so, what about luxuries spas transforms you in an hour to state of well-beingwhich costs 3 times than bottle of multi- vitamin tablets
so, it is not important to define wellness & its distinction from health, what important is
that there are few mega trends that are reshaping the wellness industry for explosive growthto help India arrive faster on the flat world. Hence being well matters than how to be-come well.
- (About author - Hrishita Monga, Student of Btech-MBA, Lovely Professional University)
Derik timescolumnist
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A) VISAKHAPATNAM DISTRICT COOPERATIVE CENTRAL BANKCLERKS AND ASSISTANT MANAGERS RECRUITMENT 2011
Important Dates:Online Registration: Till Oct 3, 2011Written Test: - Oct 30, 2011For further details, follow the link:http://www.linkingsky.com/government-exams/bank/visakhapatnam-cooperative-bank-recruitment-2011.html
B) SOUTH INDIAN BANK CLERKS RECRUITMENT 2011Important Dates:
Online Registration: Till 30/09/2011For further details:http://www.linkingsky.com/government-exams/bank/south-indian-bank-clerk-recruitment-2011.html
C)CENTRE FOR MANAGEMENT STUDIESPosition: Asst ProfessorEligibility: MBA or PGDMLocation: Assam
Last Date: 07-OcFor further details:http://www.sarkariexam.com/jobs/details/2011-10-07/Centre-for-Management-Studies/AsstProfessor
D)RAIL LAND DEVELOPMENT AUTHORITYPosition: GM/Accounts, Accounts OfficerEligibility: GraduateLocation: New Delhi
Last Date: 03-Oc
For further details:http://www.sarkariexam.com/jobs/details/2011-10-03/Rail-Land-Development-Authority/GMAccountsAccountsOfficer
Derik times Jobs watch
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ACROSS2. In the mesmerically popular TV Game show
Kaun Banega Crorepati, the prize money is issued on
the cheques of which bank?
5. What is the term used to describe the day which
is divided into several time periods in Broadcast Me-
dia?
7. Which media group has launched India's first e-
newspaper?
8. What is the old name of Lenovo?
9. What we know as Maruti Zen was launched
worldwide by Suzuki in the 90's under what name?
10. Which management term is derived from the
Greek word which means "Art of the General"?
11. Which famous fashion accessories house first
started as leather goods shop in Florence in 1921?
13. Which company coined the term "Born Global"
firms in the year 1993?
14. Which Indian confectioneries brand and TimesWarner are involved in a legal wrangle over the
'Bunny' logo?
15. What watchmaker sells an environment-
friendly brand of watches called "Eco Drive"?
16. Which is the only country having paper cur-
rency and have no coins and it introduced cheque
only in 1997?
DOWN1. This beer company claims that it is "The King
of Beers
2. Lending her name to a famous brand, who
was the Greek Goddess of Victory?
3. South Africa is the world's largest producer of
3 metals. Platinum and Gold are 2 of them,
whats the third?
4. "India's Family store" is the punchline of
which brand
5. This term is derived from the Greek word
'Oikanomia' means "House Management".
What is it?
Derik times crosswords
You can mail your answers till Friday, we
will publish the names of the personswith all right answers in next edition ofDerik Times
Mail us your answers at:synapzclub@gmail.com
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A new vacuum cleaner salesman knocked on the door on the first house of the street.A tall lady open the door.
Before she could speak, the enthusiastic salesman barged into the living room and opened a big black plastic bagand poured all the cow droppings onto the carpet.
"Madam, if I could not clean this up with the use of this new power-ful Vacuum cleaner in the next 10 mins, I will EAT all this dung!" -Exclaimed the eager salesman.
"Do you need chilly sauce or ketchup with that" asked the lady.
The bewildered salesman asked, "Why, madam?? "
"There's no electricity in the house..." said the lady.
Moral of the story:Gather all requirements and resources before working on any project and committing to the client...!!!
Gather all requirements before committing to the client
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