Fw: Cygnus Daily Business Update 31 Mar,10
G.V.Sandeep
G.V.Sandeep
DY Manager
Cygnus Business Consulting and Research Pvt ltd
Hyderabad
9849427085
040-23430203-114
Indian Economy
February inflation up 14.86% y-o-y: Government
India's consumer price index (CPI) rose 14.86 percent in February from a year earlier, lower than January's annual rise of 16.22 percent, government data showed on Wednesday. The consumer price index for industrial workers decreased by 2 points to 170 in February. India's annual wholesale inflation rose to 9.89 percent in February, compared with 8.56 percent rise in January and 3.50 percent a year ago. The wholesale price inflation is more closely watched in India because it covers a higher number of products.
India unifies foreign investment policies into one document
India unveiled a comprehensive policy document that consolidates all policies on foreign direct investment, including as many as 178 press notes issued from time to time, in a bid to simplify procedures. The Department of Industrial Policy and Promotion (DIPP) will ensure the changes are incorporated every six months. Finance Minister Pranab Mukherjee had promised such a document during his budget speech Feb 26, saying all prior rules, regulations and guidelines on foreign investment would be consolidated so that there is complete transparency on the matter. This would enhance clarity and predictability of our foreign direct investment policy to foreign investors. Thus far, foreign direct investment into India was administered primarily through a series of press notes, rules and guidelines issued over the years and some of its clauses had even led to disputes because of inconsistencies and vagueness.
Industry News
Automobile
Maruti may launch factory-fitted CNG vehicles next fiscal
The country's largest car maker, Maruti Suzuki India, may introduce factory-fitted CNG cars by next fiscal. Their R&D people are working on developing a CNG vehicle which will have factory fitted kits. They are going ahead with the development but lot will depend on availability of the fuel across the country. The company today started receiving natural gas at its Manesar plant from state-run Gas Authority of India Ltd (GAIL). As per the agreement with MSI, GAIL will supply 0.33 MMSCMD of R-LNG at the rate of USD 5.8 per mmBtu under a 10-year contract. MSI is the first customer of GAIL's newly commissioned Chainsa-Jhajjar-Hissar pipeline which has been constructed at an investment of Rs 450 crore.
HAL and Rolls-Royce announce manufacturing JV in India
Hindustan Aeronautics Limited (HAL), the country's premier aerospace company, and Rolls-Royce, the global power systems firm, signed an agreement to create a manufacturing joint venture here. The new company, a 50:50 joint venture between the city-based HAL and Rolls-Royce, will undertake the manufacture of compressor shroud rings. Construction of a new purpose-built production facility, incorporating the latest in modern manufacturing techniques, will commence this year with component production beginning in 2012. HAL and Rolls-Royce have been strategic partners since 1956, when HAL started producing the Orpheus engine, under licence. Since then the partnership has flourished on key programmes like the Hawk Advanced Jet Trainer's Adour Mk871 engine, following on from the production of Adour Mk811 engines for the Jaguar.
Banking
Murugappa, DBS Bank to part ways
After an uneasy relationship, the Chennai-based Murugappa Group and Singapore-based DBS Bank are parting ways. The Murugappa group will buy out DBS’ 37.48% stake in the joint venture Cholamandalam DBS Finance (CDFL) for Rs 226.46 crore. DBS will receive Rs 91 a share. With this, the Murugappa Group will regain complete control over the 30-year old NBFC. It will also get the two closely-held subsidiaries engaged in distribution and brokerage. The group will apply to the RBI for making CDFL a public deposit-taking company. The transaction will increase Murugappa Group’s stake in the NBFC to 74.96%. The group, through Tube Investments, will also acquire the Rs 150-crore investment made by DBS Bank by way of 1% fully convertible cumulative preference shares.
Construction
Cement cos may hike prices by Rs 7
Cement prices are likely to increase by up to Rs 7, the third successive rise this year by companies looking to undo the jump in input costs. Costs of coal, the main raw material, and freight charges have gone through the roof. After the price rise, a 50-kg cement bag will cost around Rs 285 a bag in Mumbai and Maharashtra. The wholesale price in these markets will be around Rs 275 a bag. Cement will be sold at Rs 310 a bag in Delhi, while some pockets of Tamil Nadu, where prices rose this week, may be spared. Cement makers are confident that the price rise will not dampen the improved demand due to the government’s increased spending in construction projects. Prices would fall in the long run after a boost in supply. Rourkela-based Shiva Cements, partly owned by ACC, would raise prices by Rs 7 from Thursday. The industry practice is to pass on the increase in input costs to end-users. Grasim Industries, India’s largest cement maker, declined to comment on a price rise, but said demand is healthy.
FMCG
They're lovin' it: McDonald's opens Hamburger Univ in Shanghai
China's newest university has no football field or fancy library. For inspiration, it looks not to Confucius, but to Ronald McDonald. But Shanghai's Hamburger U aspires to be a leader in higher learning for ambitious Chinese managers. McDonald's Corp inaugurated its first Hamburger University in China on Tuesday to train new generations of managers as foreign companies step up efforts to develop and keep Chinese talent. China is McDonald's Inc.'s fastest-growing global market. The move comes as foreign companies in China are focusing on developing local managers but face pressure to keep them as young, ambitious employees move on for better opportunities.
Placement
Genpact to hire 6,500 in China by 2015
Genpact, the back-office services provider, on Tuesday said it plans to scale up its operations in China and increase its headcount 6,500 in that market in the next five years. China and Japan are an important market for us. It contributes about 10 per cent to Genpacts overall revenue. They plan to take our headcount in China to 10,000 in the next five years. The BPO firm today also inked a multi-year deal with Japan's Hikari Tsushin to provide services to Hikari's clients in Japan and China. Genpact had signed the contract with Hello Communications, a 100 per cent subsidiary of Hikari Tsushin to provide customer service, finance and accounting, IT infrastructure support and back office processing to Hikari.
The X factor: Corporate world's key to success
There has been a great deal of research on the X factor, which brings you power, charisma, unsurmounted success and respect. The corporate world has been keen on adopting the principles of the X factor, which are the keys to success. The greatest respect you can give someone is through respect their time. When you keep people waiting, you have wasted their time. Time lost is life lost. When you don’t respect time, you don’t respect life. When you waste people’s time, you give them an unspoken message that they were not worthy of your concern. You cannot build success on wasted time, energy and life. To value another’s time equal to yours is the mark of a successful person. Your charisma shows up in your words and your character shows up in your actions. Charisma won’t last if your character does not support it. To keep your word and deliver your promise is the mark of a successful person. When you break your promise, you declare lack of respect for your own word.
Telecom
India delays mobile number portability to end-June
Mobile number portability, which allows users to retain their number even if they switch operators, was to be introduced in all telecoms zones by March 31. Last month, the telecoms minister said the introduction of mobile number portability would be delayed to end-May, citing security reasons. India has further delayed the introduction of mobile number portability to end-June.
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