Xed_CA Marketing Newsletter July 21 July 27

8/3/2019 Xed_CA Marketing Newsletter July 21 July 27

1/14

11 Pages 21st JULY 2011 27th JULY 2011 www.xedintellect.com

BUSINESS NEWS

ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8

INTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

NEWS DIGEST

IN BRIEF

PERSONALITIES OF THE

WEEK

COMPILED BY

INDUSTRY ANALYSIS

BSE SENSEX 18,249

NSE NIFTY 5,487

RS/$ 43.94

(as on 28th

July 2011)

ECONOMICINDICATOR

TCS, Wipro in race

for Tirupati temple

project to provide

IT solutions

COVER STORY

MARKETING NEWS

Yardley sales

double as Wipro

expands reach

INTERNATIONAL & MISC

NEWS

Apple No 1

international brand

in China

XED NEWSLETTER a weekly news bulletin

LAND ACQUISITION - LANDMINES ON THE PATH OF

GROWTH


2/14

TOP 10 HEADLINES OF THE WEEK

1. TCS, Wipro in race for Tirupati temple project to provide IT solutions.2. Microsoft opens new R&D facility in Bangalore.3. 2,800 companies vanish from bourses in last ten years.4. Cognizant set to replace Wipro as India's third largest IT Company.5. Infosys chairman Narayana Murthy backs Kaushik Basu's proposal to make bribe-giving legal.6. 2G case: Raja drags in PM, Chidambaram.7. Apple pips Google, Facebook to become No 1 international brand in China.8. Samsung pips Apple, Nokia in smart-phone sales for first time.9. Chinese drivers trapped in 100-kilometre traffic jam.10.In 10 years, urban Indian women's average income doubles.

ECONOMIC INDICATORS

Public spending on education is higherin India in comparison to China

An analysis on Education and the Asian Surgeby RAND Centre for Asia Pacific Policy revealsChina has better efficiency in utilization oresources. India spends a higher percent of itsGDP on education compared to ChinaHowever, per capita expenditure on education(public and private) is higher in China.

India lags behind China for mosteducation indicators

China and India have made progress in education.

Both the countries have followed differentdevelopmental paths. An analysis by RAND Centrefor Asia Pacific Policy reveals that India lags behindChina for most access, delivery and quality ofeducation indicators. China has nearly 100 percentenrolment for primary schooling and gender equalityin access to education.

Stock Market Indices as on 28thJuly11 Values

BSE SENSEX 18,249

NSE (NIFTY) 5,487

Current Market Rates as on 28thJuly11 Values

Rupee/US Dollar 43.94

Rupee/Pound 72.12


3/14

LAND ACQUISITION - LANDMINES ON THE PATH OF GROWTH

Verdict is out: In a recent development the Allahabad high court quashed the acquisition of589ha of land in Patwari village, where several projects were coming up. Later the SupremeCourt upheld the Allahabad high courts order to return 156ha of land to farmers of Shahberivillage. Before this verdict, the high court had de notified acquisition of 170ha and 70ha of landin Gulistanpur village and Surajpur village, respectively. This is a noteworthy development in themess that is the land acquisition process in India.

Why such fiasco:The science behind land aggregation is extremely opaque, thanks to lack of

proper land records and archaic laws governing land-related issues. The value of land dependsupon the potential of income it can generate. Typically agricultural land is much cheaper aspotential income is lower than any land which is made available for real estate development. Thefact that the land records and local area master plans can be manipulated encourages somepolicymakers and private land aggregators/developers to colludeagricultural land is thenaggregated at low prices in areas with an inside knowledge of an impending change in land use which later drives theprice up. The farmers and land owners of course do not have this valuable information. As a result, farmers sell landat prices which are cheaper and therefore end up feeling cheated when prices soar after change of land use.

Public realm, private gain: Presently, land acquisition in India is governed by the Land Acquisition Act, 1894According to the Act, the government has the right to acquire private landwithout the consent of the land owners ifit is acquired for a public purposeproject such as development of towns and village sites, building of schoolshospitals and housing and state run corporations. The Land Acquisition

(Amendment) Bill, 2007 redefined public purpose to allow land acquisitiononly for defence purposes, infrastructure projects, or any project useful tothe general public where 70% of the land had already been purchased fromwilling sellers through the free market.

As per the latest proposed bill by the government, the landowners will bepaid six times that mentioned on the registered sale deed of any plot in the area in the previous six months. And ifanyhow the land price goes up between the time of acquisition and that of possession by the industry, 20% of theincreased price will be paid to the landowners.

Uphill task ahead for authority: The going for the Noida Authority is getting tougher with each passing day. It wasstruggling to allot developed land plots, besides increased compensation to the farmers of a handful of villages. Nowfarmers from all the 54 Noida villages have made the same demands. Nithari village farmers allege that land wasacquired from them in 1976 at Rs4 per sq yard and sold in 2010 at Rs1, 07 Lakh per sqm. It was one of the biggest

land deals of India. Now the place is known as City Centre. What is irking the farmers is that the authority hadacquired the land under the urgency clause but sold it after 34 years at exorbitant market rates.

Give share in developed land: The crux of the Noida farmers' agitation is their demand for developed plots in lieu otheir acquired abadi (inhabited) lands. Noida Authority was supposed to give villagers developed plots equaling 5% otheir acquired abadi lands. However, a large number of claims for rehabilitation and compensation of owners of abadlands could not be settled as the built-up clusters surveyed before acquisition kept expanding illegally. In thespate of recent pro farmer verdicts by the Supreme Court, villagers have now grown more optimistic about settlingtheir long pending land disputes and getting adequately compensated.

What is the impact: The loopholes in land related laws are detrimental to theeconomy. The landlords get inadequately compensated in some cases, and thesoaring price of land after change of land use hurts the end-users who purchasereal estate after development of the area. In cases where farmers protest and get

a favorable judgment like it happened in Singur or Shahberi, the generalconfidence for future investment into new areas necessary for the largereconomic development of the country suffers a huge setback.

Solution:The solution to the problem lies in driving transparency in the market.Fair market competition will create healthy bidding for land, ensuring adequate compensation to land owners andensure quality and delivery of products at competitive prices to the end-user, benefiting the economy as a whole.

View:The protests by farmers in Noida have reached absurd levels. Seeking to reopen an acquisition that happened35 years ago is grossly ridiculous. If the principle is established that those whose lands have been acquired candemand enhanced compensation even decades after the event, it would set a dangerous precedent. This fallacyserves as a lesson that development without a good land acquisition bill can always be hijacked on petty issues andwe a country who aspire for inclusive and sustainable development can least afford it.


4/14

PERSONALITIES OF THE WEEK

Grandhi Mallikarjuna Rao:G. M. Rao is the founder and chairman of GMR Group, a leading infrastructuredeveloper in India. He was ranked 198th in the world's richest list by Forbes, andhis wealth was valued at $2.6 billion.

G. M. Rao is a Komati coastal Andhras traditional merchant-moneylender caste.He was among the first few to diversify from sugar into ethanol and power, using

the latest technologies. His Chennai plant was among the first to use sewage as acoolant, thus saving on water consumption.

A Visionary:A visionary businessman, G. M. Rao recognized the huge business potential in entering the infrastructure space, withthe opening up of the power sector in the 90s in India. Within a decade, he successfully established three greenfieldpower plants in the country, one each in the state of Tamil Nadu, Karnataka and Andhra Pradesh. In 2007, the GMRgroup won a bid to privatize India's third busiest airport, Indira Gandhi International Airport. GMR group has alsocompleted a $200 million Hyderabad airport project, which was bid on in May 2000. Under G M Rao's visionaryleadership, the Group commissioned the brand new Sabiha Gokcen International (SGA) airport terminal at IstanbulTurkey on 31st October, 2009

In April 2009 he was linked with a 500 million takeover ofEnglish Premier League side Liverpool F.C. He owns theIndian Premier League Twenty20 cricket team Delhi Daredevils.

Cherished values:His cherished values are: humility, team-work, willingness to learn, ensuring delivery, respect for individuals, andbeing socially responsible. GMR is a stickler for detail and he always keeps a close eye on quality control, on technicaprocesses, on the nitty-gritty be it in the sugar mill he runs in his home district of Srikakulam in Andhra Pradesh, othe power plant on a barge in Mangalore.

Larry EllisonLarry Ellison is the co- founder and chief executive officer of Oracle Corporation, he isthe fifthrichest person in the world as of 2011, with a personal wealth of $39.5 billion.In 1977, he founded Software Development Laboratories (SDL). In 1979, the companywas renamed Relational Software Inc., later renamed Oracle after the flagshipproduct Oracle database.

Formative years:

As a boy, Larry Ellison showed an independent, rebellious streak and often clashed withhis adoptive father. From an early age, he showed a strong aptitude for math and

science, and was named science student of the year at the University of Illinois. He

enrolled at the University of Chicago, but dropped out again after the first semester. His adoptive father was now

convinced that Larry would never make anything of himself, but the seemingly aimless young man had already

learned the rudiments of computer programming in Chicago. For eight years, Ellison bounced from job to job, working

as a technician for Fireman's Fund and Wells Fargo bank. As a programmer at Amdahl Corporation, he participated in

building the first IBM-compatible mainframe system.

ORACLE:

In 1977, Ellison and two of his Amdahl colleagues, Robert Miner and Ed Oates, founded their own company, Software

Development Labs. Ellison had come across a paper called "A Relational Model of Data for Large Shared Data Banks

by Edgar F. ("Ted") Codd, describing a concept Codd had developed at IBM. Codd's employers saw no commerciapotential in the concept of a Structured Query Language (SQL), but Larry Ellison did. Ellison and his partners won a

two-year contract to build a relational database management system (RDBMS) for the CIA. The project's code name:

Oracle. They finished the project a year ahead of schedule and used the extra time to develop their system for

commercial applications. They named their commercial RDBMS Oracle as well. IBM itself adopted Oracle for its

mainframe systems, and Oracle's sales doubled every year for the next seven years. The million dollar company was

becoming a billion dollar company. Ellison renamed the company Oracle Corporation, for its best-selling product.

Desire to win and stay ahead:

Larry Ellison has long desired to undo Microsoft and become, as he has put it, the "number one" software company in

the world. He's not there yet, despite having spent some $40 billion to buy up 75 hardware and software companies

over the years. Microsoft claims a market capitalization of $226 billion compared with Oracle's $169 billion.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Premier_Leaguehttp://en.wikipedia.org/wiki/Liverpool_F.C.http://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Liverpool_F.C.http://en.wikipedia.org/wiki/Premier_Leaguehttp://en.wikipedia.org/wiki/Indira_Gandhi_International_Airporthttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/India


5/14

BUSINESS NEWS

1) TCS, Wipro in race for Tirupati temple project to provide IT solutions-ET 27 JulyTCS and Wipro are among three companies vying to bag the prestigious Sri Seva Project ofthe Tirumala Tirupati Devasthanam (TTD) to provide IT solutions that will helpdevotees. Currently TTD offers four main e-services such as e-seva, e-accommodation, esudarshanam and e-hundi to the devotees and the Sri Seva project would help theadministration in offering services like providing rooms, 'laddus' as well as in tonsuring.

There are as many as 48 departments which need to be automated and brought under one

platform for better services to pilgrims, TTD had said. The project is estimated to cosbetween Rs 30 crore to Rs 35 crore, with an additional maintenance cost of around Rs 12

crore every year in the first phase, a senior official earlier said.

2) Microsoft opens new R&D facility in Bangalore-PTI 26 JulyMicrosoft today announced its new state-of-the-art R&D facility here. The 1,54,000 sq ftbuilding would house the Bangalore Microsoft India Development Centre (MSIDC) team thatcontributes to Microsoft Corp's ad Center technologies, as well as the researchers fromMicrosoft Research India. Microsoft's first R&D centre was set up in Hyderabad in 1998, whileMicrosoft Research India was established here in 2005.

Inaugurating the building, Qi Lu, President, Online Services Division, Microsoft Corp, said forthe last one decade, India has been a key player in Microsoft's strategy of global shareddevelopment. "The availability of world class talent, advanced infrastructure and proximity to

the booming emerging markets of the world are key reasons behind this. The decision to set up our second R&Dcentre in Bangalore reinforces Microsoft's commitment towards India," Qi said.

3) 2,800 companies vanish from bourses in last ten years- Hindu Business Line 23 JulyYou may not be surprised by the fact that 786 companies have got listed in the Bombay StockExchange in the last ten years. But do you know that in the same period, 2,800 companieshave disappeared from the bourses. You can neither buy nor sell shares of any of these.

Of the 1,600-odd companies that de-listed from the Bombay Stock Exchange, 53 per cent wasbecause of compulsory delisting. SEBI specifies a set of reasons why a stock may becompulsorily delisted: Loss-making companies with negative net-worth, securities suspendedfrom trading for more than six months, infrequent trading in the preceding three years,conviction of company/promoters/directors for violation of the SEBI Act, addresses ocompany/promoter/directors not known, and shareholding below minimum level according to

listing agreement. Much of the compulsory delisting happened in 2004, when the BSE drew upa list of companies that were already suspended for more than three years and chose to delist them.

4) Cognizant set to replace Wipro as India's third largest IT company-ET 22 JulyIT major Cognizant is all set to replace Wipro to become the country's third largest ITservices provider when it announces its results on August 2. Wipro reported IT servicesrevenues at $1.408 billion for the April-June quarter. This is about $40 million less thanCognizant's April-June quarter revenue guidance of $1.45 billion.

JP Morgan analyst Tientsin Huang, in a report on Cognizant dated July 15, drew arevenue estimate of $1.46 billion for the company in the April-June quarter. Theunderlying business fundamentals for the IT sector are healthy as the recentlyannounced strong quarterly earnings of TCS , IBM and Accenture suggest. Therefore ,Cognizant is expected to meet if not beat its guidance. The weakness that Infosys's and Wipro's results exhibit is more

a reflection of company-specific issues as against market fundamentals.

5) Infosys chairman Narayana Murthy backs Kaushik Basu's proposal to make bribe-giving legal-ET 21 JulyNarayana Murthy says If bribe giving is made legal then givers can filecomplaints against takers without fear. N.R. Narayana Murthy, chairmanof Infosys, said he fully supported proposals from economist Kaushik Basuto make paying bribes legal because this would help members of the publicblow the whistle on corrupt officials. Under Basu's proposals receiving abribe would remain illegal. Transparency International, the global anti-grafbody, puts India 87th on its corruption perception index - 10 places belowChina. Basu had argued that his policy would ensure that "the bribe giverwill be willing to cooperate in getting the bribe taker caught. Knowing thatthis will happen, the bribe taker will be deterred from taking a bribe.


6/14

6) 2G case: Raja drags in PM, Chidambaram- Hindu business line 25 JulyMr A. Raja, former Telecom Minister, dragged the Prime Minister, Dr Manmohan Singh,and the then Finance Minister, Mr P. Chidambaram, into the 2G spectrum case.Defending himself, Mr Raja, a DMK MP, submitted before the Special CBI Judge, Mr O.P. Saini, on Monday that the issue of sale of equity by spectrum licensees was discussedwith them (the Prime Minister and the then Finance Minister).

Senior Advocate Mr Sushil Kumar, appearing for Mr Raja, said that Mr Chidambaram,then Finance Minister who is now Home Minister had said in front of the Prime Ministerthat dilution of shares does not amount to sale of 2G licence as per the corporate law.

Mr Raja held that, When sale of equity does not amount to sale of licence, there is no question of earning profit. Howcan (then) be corruption there in this regard? He said there was nothing wrong in his decision of not auctioning 2Gspectrum. He said he was merely following the policies pursued by his predecessors and the NDA Government.

7) India's exports remain buoyant despite competition from Chinese goods- ET 23 JulyDespite competition from Chinese goods & slowing world economy Indias share inmerchandise world trade rose from 0.7% in 2000 to 1.4% in 2010. This is due to theexporters differentiating products and moving into goods higher up the valuechain. India's share makes it the 20th largest exporter in the world, according to theWTO's 'World Trade Report 2011'. Rising share in world trade can be attributed to a shiftowards better quality and high-value products - a strategy that has helped it growalongside China in the array of products the emerging powers sell to the richer nations.

India's exports of engineering goods in 2010-11 accounted for 38% of its total exports that year while textiles made

up 14%. "China follows the assembly line production approach, i.e. on mass scale. India has small batch process, soit has the advantage of using services in manufacturing. In fact, even China is increasingly becoming an importantexport destination for Indian goods. In 2010-11, China was the largest importer of Indian engineering goods at$5631.66 million (April-Jan).

8) If India agrees to Saudi Arabias demand for removal of anti-dumping duty on theplastics raw material, Reliance will be the biggest loser- ET 26 JulyIndias lucrative polypropylene market dominated by Reliance Industries is occupying centrestage in diplomatic relations between India and Saudi Arabia as the oil-rich kingdom is mountingintense pressure on New Delhi to withdraw anti-dumping duty on the plastics raw material. Theissue will be on the agenda in bilateral talks in September, when Saudi Arabia is expected tostrongly pitch for the withdrawal of the duty as the worlds biggest oil exporter is eyeing marketsfor the giant petrochemicals plants it wants to build to diversify its oil-centric economy. Reliance,Asias biggest manufacturer of the key input for plastics, commands 70% market share in India

with a capacity of 1 million tonnes and had successfully led the domestic industrys campaign foranti-dumping duty two years ago. Haldia Petrochemicals, which produces 3.2 lakh tonnes a year,also supports the levy. But Saudi Arabia resents this move and is relentlessly lobbying against it.

9) Rupee-denominated deals made easier-ET 23 JulyA year after the rupee got its Devanagari identity, the RBI has taken the first step topopularise it in international trade. The Reserve Bank on Thursday made it simpler foroverseas buyers and sellers of goods and services to cut rupee-denominated deals whiletrading with Indian businessmen. It has permitted overseas traders to hedge their currencyrisks with local and offshore banks for trades invoiced in rupee. While invoicing in rupee wasallowed a few years ago, foreign traders have not been accepting such export or importorders in the absence of a mechanism to cover risks arising out fluctuations in the

currency. For Indian traders, however, invoicing in rupee eliminates exchange risks built into all crossbordetransactions. Whenever rupee surged against dollar, exporters raised demand for rupee invoicing. But it never took of

as most foreign buyers and sellers, often with more bargaining power, feared possible losses in a volatile currencymarket.

10) Heres a Lot of Bull for Your Milk Shake!- ET 23 JulyNDDB to create 900 superbulls for another white revolution. India may have the worlds largestpopulation of cattle and be the top producer of milk, but the countrys bulls have a p roblem. Theirpedigree is not good enough, raising concerns about the future of the dairy industry. So now, anew breed of superbulls will be custom made in laboratories so that their progeny become milchcows of the highest order. The project to genetically upgrade Indias breeding bulls will be taken upby the National Dairy Development Board starting October, with the aim of creating 900 of thefinest bulls in about five years, NDDB Chairperson Amrita Patel said. The selective breeding will happen at 10laboratories and is expected to be the successor to Operation Flood that ushered in the White Revolution. Bulls wilproduce 30-100% more milk than the average 6.5 litres produced by a quality crossbred cow today.


7/14

11) Music cos, not composers, own song rights: HC-ET 27 JulyIn a setback to music composers and lyricists, the Bombay high court, in alandmark judgment, has upheld the right of music companies over a songrecording. The order by Justice S J Vazifdar is a huge relief to FM radio stationsand others who play recorded songs, including hotels and discotheques. Musiccomposers and lyricists were demanding a separate royalty every time their musicwas played.

The high court ruled that the Indian Performing Right Society Limited (IPRS), abody that safeguards the copyrights of music composers and lyricists, was not

entitled to claim or demand royalty or licence fees from a private FM channel forthe recorded song and music it plays on its radio station. This means that the FMstations will now have to only deal with Phonographic Performances Limited forobtaining a licence to play the music. The IPRS can claim royalty only when thesong is performed live or another song is recorded, or the original song is remixed

12) Indian traders learn Mandarin to strike business deals in China- ET 22 JulyThere has been a sharp increase in small traders who have enrolled in Mandarin classes in thepast two years, says Nitin Rao, founder of Career Crafters language institute in Mumbai. "Forthem, Mandarin is the language of money and opportunity." Three years ago, the Kolkata-based manufacturer of flex banners went to China on an impulse, accompanying a friend, afurniture dealer. And though he couldn't make any sense of the Mandarin when he walkedthrough the wholesale tarpaulin markets in Jiangsu and Guangzhou, he understood thebusiness potential well enough.

"The second wave of learning Mandarin is here," says Reshmi Kumar, Mandarin tutor While thefirst wave was initiated by Indian corporates who sent employees to China, small and medium-scale businessmen arenow learning this supposedly difficult language. Trade between the two countries touched $61.7 billion in 2010,marking a 43% jump from the previous year. For small Indian businessmen eyeing that pie, learning Mandarin is thekey.

13) Sale of cosmetics by inducing negative feelings-ET 23 JulyUniversity of Basque, Spain:Cosmetics adverts convince us that we are not good looking by usingimages of unusually beautiful people.Companies generate negative feelings in consumers so thatthey go for their cosmetic products to make themselves look attractive, says a study. The idea isto appeal to people's self-esteem and make them take "emotional decisions", said the study bythe University of Basque Country in Spain. The unconscious desire "to be attractive to theopposite sex, to be sexually attractive" prods people to buy cosmetics, the African Journal of

Business Management quoted the study as saying. "One way of achieving this is by subtly tellingthem they are ugly, something many cosmetics adverts achieve implicitly and very effectively byshowing images of unusually beautiful women," says a study author. The study was carried out on

products such as facial creams, anti-wrinkle creams and body lotions. A total of 355 women aged between 18 and 50were surveyed.

14) Last year, Indians sent home $100bn TOI 22 July27 million NRIs (2.2% of Indias population) have remitted $55bn (4% of GDP) & invested $45bn in2010. According to World Bank figures, $55 billion poured in from overseas Indians in 2010, adramatic increase of over 150% that the country had received in 2003 when nearly $21 billion wasremitted. The $55 billion remittance, along with other forms of investments, worked out to around$100 billion coming into the Indian economy. According to the World Bank, India is followed by China($51 billion), Mexico ($22.6 billion), the Philippines ($21.3 billion) and France ($15.9 billion). Keralaand Punjab are among states that receive the highest remittances from overseas residents. Didar

Singh believes that the big increase in remittances has much to do with the great degree of faith thatpeople have in the Indian banking system, coupled with a lack of trust in Americanbanks. Remittances may be in many forms, such as domestic consumption, property, health andeducation. This is real money that is very much part of the local economy, not money that is simply parked in abank, he said.

15) Apples profit grows 125% to $7.3bn, revenues grow 82% to $28bn (equivalent to 30% of IndiasGDP)- ET 21 JulyTriple-digit growth is normally associated with start-ups and not a 36-year-old company whosemarket value is more than 30% of Indias GDP. Yet Apple produced such astonishing results, largelyon the back of its two red-hot sellersiPad and iPhone. Reason? The storied Apple is the only largecompany that keeps innovating and re-inventing itself like a start-up.


8/14

16) Benami deals in name of spouse & kids to be legit-TOI 22 JulyIn an attempt to put a lid on benami transactions, the Union Cabinet on Thursdayapproved of the replacement of the Benami Transactions (Prohibition) Act 1988 with anew law, Benami Transactions (Prohibition) Bill 2011, which will make benamiproperties liable for confiscation. Under the new law, properties bought in the name ofa spouse or siblings will be allowed under benami deals, but a benami property will beliable for confiscation once the person involved has been given due opportunity ofbeing heard. Speaking after the Cabinet meeting, information & broadcasting ministerAmbika Soni said properties held by a coparcener (one of two or more personssharing an inheritance) in a Hindu undivided family and properties held by a person in

fiduciary capacity would be excluded from the definition of benami transaction.Properties acquired by an individual in the name of spouse, brother or sister or anyother lineal ascendant or descendant are benami transactions which are not prohibited, she said.

17) Difficult to Avoid Taxmans Glare ET 21 JulyA fortnight ago, three businessmen from the same family were summoned by tax officials inMumbai and Kolkata to appear with their tax returns and passports. In a world where taxsleuths carry out fishing enquiries to trace undisclosed income of wealthy individuals, jewellersand builders, the summons may have looked innocuous. But they weren't. For book keeperstax practitioners and the well heeled with offshore, secret bank accounts, it surfaced a lurkingfear: some tax havens are slowly, but surely, beginning to share specific information withIndian authorities.

Around March-April, the three businessmen had moved money from their bank accounts in Isle of Man, Cayman

Islands and Guernsey. "We understand tax authorities have come to know of these transactions. This is possible onlyif these jurisdictions have shared information," said a person aware of the transactions. "This was unthinkable in thepast when money changed hands and moved from one account to another without anyone getting a whiff of it," hesaid. Perhaps, not anymore.

18) Govt Under Pressure to Release Airwaves- TOI 21 JulyThe government is squatting on a valuable hoard of 2G mobile spectrum, wrestling withdilemmas about its value and how best to apportion it, as pressure mounts on the telecomdepartment to release it to desperate operators. The Department of Telecom (DoT) lastallotted 2G airwaves in late 2008 and has since maintained it has exhausted spectrum in mostregions. But a recent admission on the DoTs website that it has some 211 MHz of 2G spectrumfor GSM operators and another 75 units for CDMA carriers has triggered demands to release itquickly to the industry.The ministry can easily hope to raise around Rs. 25,000 crore from a possible sale or auction of

2G spectrum. A DoT official said the Telecom Commission, the top decision-making body of thecommunications ministry, will meet to examine the issue and to debate whether 2G airwavescan be handed out at prices recommended by Trai.

19) Indians spending more on kids education, less on food-TNN 25 JulyIndian families are investing heavily in their childrens education and spending more on healthcareat the expense of basic needs like food, reveals a NSSO survey on spending patterns ofhouseholds. Between 1999 and 2009, expenditure on food increased by 70% among rural familiesand 78% among urban ones. But the spending on education jumped up by 378% in rural areasand 345% in urban areas. Compare this to the overall household expenditure on all items, whichincreased by a mere 8% in rural areas and 20% in urban areas after adjusting for inflation.

And, it is not the same people who are spending more on their childrens education. In 2004 -05when the previous such survey was carried out, 40% of rural and 57% of urban families said they

were spending on education. The new survey records a big jump in these numbers63% of rural and 73% of urbanfamilies were getting their kids educated.

20) Walt Disney offers to buy out UTV's rest 49.56% stake for Rs 2,000 cr-ET 27 JulyWalt Disney Co plans to buy the rest of UTV Software Communications (UTV) it does not own and delistthe company in a deal potentially valued at $454 million, or Rs 2,014 crore, as the US entertainmentgiant seeks to expand its presence in Bollywood, media and gaming. The buyout will give Walt Disneycontrol over five businesses. UTV Software, a holding company, makes and distributes movies,broadcasts a clutch of movie and entertainment channels, produces content for television and otherdigital media, and also has a presence in gaming. India is the world's third-largest TV market trailingChina and the US with nearly 138 million TV households, according to a March 2011 report by KPMGand industry lobby FICCI. The media and entertainment industry is likely to expand 14% annually until 2015, withsegments such as TV, gaming and animation expected to outpace the industry growth, the report said.


9/14

INTERNATIONAL NEWS

21) Apple pips Google, Facebook to become No 1 international brand in China- New York Times 26 JulyA year after opening a flagship store here, Apple has a problem that any retailer wouldenvy: The huge 16,000-square-foot space is already too small. Huge crowds descend thestore's glass staircase, only to discover legions of mostly young Chinese crowding aroundspare displays of Apple's devices. Another Apple Store, four miles away, is also packed. Tocope, Apple says it is now planning a third, even larger Shanghai store, as well as dozens oother stores throughout the country.

Apple says its Chinese outlets - two in Beijing and two in Shanghai - are now the four mostheavily trafficked Apple stores in the world. They also generate the most revenue, outselling

even the Fifth Avenue Apple Store in New York, which is open around the clock. Apple's push into China may beimportant for other reasons: It shows the depth of this country's fast-growing upper middle class. Foreign brands canabsorb another lesson as well. Apple's success shows that with products that are not so easy to counterfeit, Chineseconsumers are willing to pay a premium. China has become the second-largest market after theUS for apps that runon the smartphone and tablet, according to Distimo, a Dutch company that tracks the popularity of apps.

22) Samsung pips Apple, Nokia in smartphone sales for first time- Bloomberg 26 JulySamsung Electronics, maker of the Galaxy mobile phone, may have surpassed Nokia and Apple insmart-phone sales for the first time on demand for devices that run on Android software, a researchcompany said. Samsung is estimated to have sold between 18 million and 21 million smart-phonesglobally in the April-June quarter, compared with 16.7 million for Nokia and 20.3 million iPhones,Neil Mawston, a London-based analyst at Strategy Analytics, a research company based in Boston,

said in an e-mailed response to questions on July 22. The data exclude tablet-computer sales.

The estimates show Google's Android is gaining ground on Apple in smart-phones as Nokia, which is turning toMicrosoft for software support, struggles to keep up with the pace. Samsung, which also produces low-end phonesthat aren't capable of downloading applications, has said it aims to more than double sales of high-end devices thisyear. "Samsung stands a reasonable chance of capturing the top spot on a quarterly basis if it can continue expandingits Android portfolio across high-growth markets like China and Brazil. Samsung and Apple will be at similar levels insmart-phones by the end of the year."

23) Entire Apple stores being faked in China-ET 26 JulyChina, a country known for its rampant piracy, has now reached a new milestone --fakeApple stores. An American blogger who lives in Kunming in southern Yunnan province saidThursday that she stumbled on three shops masquerading as bona fide Apple stores a fewdays ago. She says the employees told her they worked for Apple. She posted photos online

showing the employees wearing blue Apple T-shirts. Apple has four company stores inChina as well as various authorized resellers, who are not allowed to be Apple replicas. Themanager of one authorized seller in Kunming, who gave only his surname Zhang, says somestaff in the fake stores "can't even operate computers properly." Apple's Asia office based in

Beijing would not comment.

24) Anshu Jain first non-European becomes head of Deutsche Bank -ET 27 JulyAnshu Jain becomes the first non-European to head up DB, and the first Indian among a handfulof non-Europeans to head any large, listed European firm. As head of Deutsche Bank, hebecomes, simply, the most powerful banker in the Eurozone's largest economy. Jain is nostranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City ofLondon and DB's shareholders. He's got an enormous power base and is considered the bestbanker who's not a CEO in London, and one of the most influential globally. Jain's appointment isproof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or

that the German government would have any problems with him.

25) US likely to lose 'AAA' credit rating, say economists-Reuters 27 JulyThe United States will lose its top-notch AAA credit rating from at least one major ratingagency, according to a poll that also found wrangling over the debt ceiling has alreadydamaged the economy. A small majority of economists -- 30 out of 53 -- surveyed overthe past two days said the United States will lose its AAA credit rating from one of thethree big ratings agencies --Standard & Poor's, Moody's or Fitch.

Downgrade and default would have vastly different consequences. A ratings cut mightraise the risk of recession by hurting confidence, but might allow financial markets tomuddle through the next few months without incident. A default, however, would send

shockwaves through the global financial system that could kick-start a new financial crisis, analysts say.


10/14

MISCELLANEOUS NEWS

26) In 10 years, urban Indian women's average income doubles-TNN 26 JulyReinforcing the growing financial independence of women in India, a survey says the incomelevel of urban Indian women has doubled in the last decade. This increase has also led to theaverage urban household income doubling, according to a study by market research firmIMRB. The urban Indian woman who earned Rs 4,492 per month in 2001 was taking home asmuch as Rs 9,457 as of 2010. The rise in her income is directly reflected in the averagemonthly household income of urban India going up from Rs 8,242 to Rs 16,509 in 2010, saysthe IMRB survey.

According to official data, India's per capita income rose from Rs 16,688 in 2000-01 to Rs54,835 in 2010-11, a 228% rise. The IMRB figures suggest that urban incomes in the same period rose by 100% andincomes of urban women by 111%. What is significant in the survey is that with the woman's personal incomedoubling, she is increasingly outsourcing household work. From 91% women saying they did household workthemselves, the number has dropped to 71% in 2010, according to the survey.

27) Chinese drivers trapped in 100-kilometre traffic jam- www.cnn.com 21 JulyA 100Km traffic jam in North China lead to a severe congestion because of construction toexpand a section of the road. Cars continued to enter the highway, but there are no detoursto get off. Coal truck driver Liu Jianjun told China Daily it took 40 hours to drive the 100-kmstretch. This isn't the first time bumper-to-bumper traffic has plagued this highway. LastAugust and September, more than 10,000 vehicles plugged the highway creating a 120-km

jam.Last summer, crews were working on a parallel route. Beijing News reported poor road

design and bad traffic management was to blame for that jam that lasted off and on for morethan 20 days.Local residents tried to make some money selling water and instant noodles atinflated prices, but many drivers were hoping local authorities would bring them enoughwater and food to endure the heat.

28) CAT 2011 takes on a new avatar: One section less, 5 extra minutes-TNN 26 JulyThe Common Admission Test (CAT) is getting a format makeover. The test, which holds the key toadmissions to the 13 IIMs and other major B-schools in the country, will be conducted betweenOctober 22 and November 18, 2011. Though the number of questions remains the same, CAT2011 will have two sections instead of three, and students will get an additional five minutes totackle them. According to a statement released by testing agency Prometric and IIMs, the firstsection will focus on quantitative ability and data interpretation while the second will be on verbalability and logical reasoning. These two sections will be implemented sequentially with separatetime limits. It will be a 140-minute exam. Candidates will have 70 minutes to answer 30 questions in each section,

which will have an on-screen countdown timer.

29) Not one new student in 6 engg colleges in state-TNN27 JulyIn the thick of the admission season, there are some colleges that bear a deserted look. Theadmission counter is open but no ones queuing up. Pratap Institute of Technology andManagement in Washim is one among them. When the first round of seat allotments closedthere were around half-a-dozen colleges which did not have a single student opting to

join them. Ironically, they have all the popular streams on offercomputer science, electricaengineering, information technology.

Data from theDirectorate of Technical Education (DTE), which conducts admission toengineering colleges in Maharashtra, reveals that 34,801 seats remained unfilled after thefirst round. This is a 75% increase compared to last year, when close to 20,000 seats were

vacant after admissions closed. In fact, the state recently relaxed the eligibility criteria for engineering aspirants, from

50% in Class XII (in physics, chemistry, maths) to 45% for general category and 40% for reserved categories.

30) Ayurveda, unani under mediclaim umbrella-TNN 25 JulyTill some time back, health insurance policies used to cover only allopathy treatment whileayurveda, homeopathy, naturopathy and unani treatments were left out. Despite having acomprehensive health insurance plan in place, individuals who preferred such systems had to payout of their own pockets. These policyholders can now breathe easy as some insurance firmshave started including such alternative forms of treatment under their cover, especially ayurveda.

Naturopathy treatments are excluded in all policies, while few cover unani and homeopathic. Thisis because other forms of treatments have no standard treatment protocols and highly variedcosts thus making it difficult to actuarially compute the cost to be covered. Even under ayurveda,select procedures are covered to ensure people do not misuse a policy for a basic rejuvenation procedure.


11/14

THE INDIAN INFRASTRUCTURE INDUSTRYInfrastructure is recognized as a crucial input for economic development and refers to installations that form the basisfor any operation or system. Historically, the government has played a key role in supplying and regulatinginfrastructure services in India. However, due to the public sectors limited ability to meet the massive infrastructurefunding requirements, private sector investment in infrastructure is critical.

Overview: Construction is the second largest economic activity in India after agriculture. The governments successin infrastructure provision will be measured not by the quantum of funds invested, but on how infrastructurecontributes to the achievement of Indias economic, social and environmental objectives. The Planning Commission oIndia has planned extensive expansion in roads and highways, ports, civil aviation and airports, and power

infrastructure segments, with the Eleventh Five Year Plan (2007-2012) in progress. India has a very well establishedinfrastructure developer market. Companies like Larsen &Toubro, Punj Lloyd, Reliance, GMR, Suzlon and Tata Powerhave evolved into fully-fledged national players (and in some cases international players). In certain sectors, such ashighways, power and water, companies like Gammon, Bharat Heavy Electrical Limited (BHEL) and Thermax havesignificantly progressed on the technological front.

Urbanization: With Indias urban population expected to increase from400 million in 2011 to about 600 million or more by 2030, cities andtowns will need to create adequate infrastructure to sustain economicactivity. Investment required in urban infrastructure is estimated at Rs 60lakh crore over the next 20 years.

Power and Energy: Increased manufacturing activities and a growingpopulation are also causing a surge in power usage. India has an

electricity grid supporting 135 GW generation capacity and an expansivetransmission and distribution network. The planning commission wants totarget 100,000 MW capacity in 12th Plan (against likely achievement of50,000 MW in Eleventh Plan). Commercial energy demand will increase at

7% p.a. if GDP grows at 9% requiring a major supply side response and also demand management. Energy pricing isa major issue as Petroleum and Coal prices are significantly below world prices and world prices are unlikely to soften.

Roads and Highways: The Indian road network of 33 lakh km is the second largest in the world. About 65% offreight and 80% passenger traffic is carried by the roads. National Highways constitute only about 2% of the roadnetwork but carry about 40% of the total road traffic. The Golden Quadrilateral, a highway networkconnecting Delhi, Mumbai, Chennai and Kolkata, is the largest highway project in India, initiated by Atal BiharVajpayee. It is the first phase of the National Highways Development Project (NHDP) and consists of building5,846 km of four/six lane express highways at a cost of 60,000 crore. The NHDP is a project to upgrade, rehabilitateand widen major highways in India to a higher standard (implemented in 1998). Its different phases are in various

stages of completion.

Railways: The railway freight traffic is projected to cross 1100 million tonnes by the end of 11th Five Year Plan butthere are infrastructure gaps and capacity constraints in the rail system. For instance, the Dedicated Freight Corridoproject is expected to now cost around Rs 77,000 crore, including the cost of borrowing and inflation. The projectannounced in 2005, involves building an exclusive freight line each in the west and the east to connect Mumbai andKolkata with Delhi, to be completed by 2012, but is yet to take off due to delays in land acquisition and finalization othe alignment of railway lines. The Railways is banking heavily on DFC to decongest its clogged network and helpsubstantially increase speeds of both passenger and freight trains, making it more competitive against airlines andsnatching business away from road transporters.

FDI in Infrastructure: Foreign players have greater technological expertise, deeperpockets and more extensive experience compared to domestic companies. Up to100% FDI is allowed in respect of projects relating to electricity generation,

transmission and distribution, other than atomic reactor power plants. There is nolimit on the project cost and quantum of foreign direct investment.

Challenges: Uncertainty, scarcity of funds and competing priorities presentchallenges to all governments in infrastructure planning and delivery. While many ofthe major Engineering & Construction companies have massive order backlogs,talent shortage is an issue in key skilled trades such as fitting, welding, masonry andplumbing. India is also facing shortages of construction equipment and machinery.Coal availability will be a major constraint. Long term health of power sector is beingseriously undermined with losses of Rs 70,000 crore per year. Whilst the need forgreater infrastructure investment is clear, equally important is the need tosustainably manage such investments. Sustainability requires that futuregenerations are not compromised by investment decisions of current generations.


12/14

MARKETING NEWS

1. Yardley sales double as Wipro expands reach The Hindu Business Line 21 JulyYardley, Wipro's iconic brand and among the oldest brands in the world, recorded a 100per cent growth during Q1 of 2011-12. We doubled our sales of Yardley during Q1 of2011-12 and Yardley is now not restricted to Class I towns and has reached rural markets,said Mr Vineet Agrawal, President, Wipro Consumer Care and Lighting. Recording an 18 pecent year-on-year growth, WCCL, the FMCG arm of Wipro Ltd, posted revenues of Rs 755crore during the first quarter of the current fiscal. We have done reasonably well in althree of our businesses, the India FMCG industry grew by 21 per cent, the institutiona

business by 15 per cent and international business by 40 per cent, said Mr Agrawal. Thecompany's recent acquisition of soap brand Aramusk (from Mumbai-based VVF Ltd) wilstrengthen the premium soap category, he added.

2. Doing ethnographic research, live - The Hindu Business Line 21 JulyLive video streaming of ethnographic research has been launched in India and 13 othercountries by Majestic Marketing Research (MMR), under the brand Ethnostream'. With thenew tool, teams in non-urban locations will be able to join the proceedings at the conferencefacilities. Ethnostream will help companies reduce the high cost of travel and logistics involvedin ethnographic research today, said Mr Raj Sharma, President, MMR, in a wide-rangingconversation with Business Line.

He explained, We see ethnographic research being increasingly used today, with executivesfrom research and product innovation teams, besides marketing, wanting to observe

consumers and their behaviour firsthand in their natural environments, and converse withthem. But this involves high cost on travel, especially for MNCs and executives from abroad,and it is also very time consuming. We see Ethnostream eliminating those issues.

3. Dabur's chairman Amit Burman-promoted Lite Bite foods makes overseas debut ET 21 July

Consumer goods maker Dabur's chairman Amit Burman-promoted Lite Bite

Foods has made its overseas debut, a statement released by the firm said on

Wednesday. The first outlet of Lite Bite-owned multi-store restaurant, Punjab

Grill, has opened its first store in Singapore. Lite Bite Foods chairman Ami

Burman said: "Punjab Grill was an obvious choice for our first internationa

venture, and we hope to set new benchmarks in hospitality." The company,

which is the largest franchiser for fast-food chain Subway in India, has close to

50 outlets across the country and aims to grow to 200 outlets over the next

three years. Lite Bite plans to utilise its Indian cuisine brands Punjab Grill andZambar for its overseas expansion.

4. PepsiCo Q2 profits up 18% as emerging markets fizz - The Hindu BusinessLine 21 JulyPepsiCo has said its snacks and beverages business in India and China hasregistered double-digit gains. It helped the FMCG major offset volume softness insome West Asian markets where political unrest affected demand. Announcing itssecond quarter results on Thursday in New York, PepsiCo said its net profit had

jumped 18 per cent on strong sales in emerging markets as well as an acquisitionin Russia. However, The consumer in developed markets continues to bestressed, said PepsiCo Chairman and CEO Ms Indra Nooyi. We are thereforeimplementing previously announced incremental pricing actions in the third quarter

to more fully cover input costs, a press release quoted her as saying.

5. Toshiba India merges TV and PC biz - The Hindu Business Line 22 July

Toshiba India Private Ltd has merged its personal computer andtelevision businesses to create a wider network of customer touchpoints and service centres. TIPL, the 100 per cent subsidiary ofToshiba Corp, said it will shortly start manufacturing its LCDtelevisions in India besides establishing a research and developmencentre in Gurgaon.The TV and PC will be unified to take advantageof digital convergence. The other focus areas will include service,research and development and supply chain management, MMasayuki Ito, Vice-President, Digital Products and Services divisiontold newspersons here.


13/14

6. Colour works for BlackBerry BS 22 JulyThe creators of Blackberry, Research in Motion (RIM), say analysts, did well in

consciously finding the pulse of the youth. Results speak for themselves. Cyber MediaResearch data reveal that RIM grabbed 13 per cent share of Indias smart phonemarket in 2010, up from 8 per cent in 2009. BlackBerry has now become a statussymbol for college-going youth as they know that executives use it primarily. Besides,BBM allows us to keep in touch with each other, notes Smit Chotai, a student.BlackBerry Messenger or BBM is an instant messaging app and comes with a chat-stylelayout, and unlimited characters.

Given that there are over 100 smart phone models from local and internationalvendors, we realise that consumers have a variety of options, acknowledges RIMEnterprise Sales Director (India) Sunil Lalvani, adding: Hence, it was a very conscious strategy to target the youth.RIM first slashed the price of BlackBerry Curve to under Rs 10,000 and the BBM went viral after its campaign inFebruary last year, coinciding with Valentines Day. BBM was a success in markets like Indonesia, and the RIMmanagement believed it would work here too.

7. L'Oreal plans to invest Rs 500 crore in India to open factories, labs and innovation centre ET 25 JulyL'Oreal SA plans to invest Rs 500 crore to open more factories, laboratoriesand an innovation centre in India, which the French cosmetics giant wants tobe one of its top six markets in the world by the end of this decade, a topofficial said. The company also plans to take several brands developed in thecountry to other markets, L'Oreal's Asia Pacific Zone MD Jochen Zaumseisays. "Garnier Color Naturals, Matrix oils, a salon specific brand and Kaaja

(eyeliner) are all Indian innovations that we will be soon launching in othercountries, especially in South East Asia because we feel that if its successful ina market like India, it should so well in other emerging countries too," saysZaumseil.

8. Hidesign to set up venture with Italy's Braccialini The Hindu Business Line 24 JulyPondicherry-based leather bags and accessories maker Hidesign will soon announce a jointventure with Italy's Braccialini to launch the brand in India. As part of the proposed jointventure, Hidesign will also set up a new production line at one of its manufacturing units tomake Braccialini bags and other leather items.Talks are at an advanced stage to form a jointventure with Braccialini. There are some legal issues pending post which we will launch thebrand in India, Hidesign President, Mr Dilip Kapur, told PTI. He said the Italian brand willcomplement Hidesign's product portfolio.

9. Bird Group to launch Swiss leather goods brand Bally in India PTI 23 JulyBird Group, a diversified business entity, today said it has entered into a franchiseagreement with Swiss luxury goods firm Labelux to launch the latter's leather goodsbrand Bally in India. Bird Group will set up the first exclusive Bally store in thecountry later this year in Delhi.

"This partnership is of immense strategic importance for us. We believe that Bally'sheritage of excellence in craftsmanship and established reputation in luxury goods isa perfect fit with India's evolving luxury sector and consumer expectations," BirdGroup Executive Director Ankur Bhatia said in a statement. Founded in Switzerlandin 1851, Bally is owned by Labelux Group that manufactures shoes and accessoriesunder the brand.

10. Shine comes from emerging markets for Reckitt in Q2 The Hindu Business Line 25 July

For household goods giant Reckitt Benckiser, it was emerging marketslike India that delivered shine, even as sales in Europe remainedweak. In its second quarter results, the Anglo-Dutch group deliverednet income growth of 10 per cent at 404 million (which excludesone-time gains and losses) over Q2 2010. Sales in emerging marketsrose 14 per cent on a comparable basis even as, comparable sales inEurope dipped by 2 per cent. The growth in the base business wasdriven in particular by an excellent result in developing markets, andwas boosted by innovations such as the continued roll out of theDettol No Touch Hand Soap System into new markets, said Mr BartBecht, Chief Executive Officer of the Anglo-Dutch group.


14/14

11. Budding brands looking to make it big overseas - The Hindu Business Line 25 July

FMCG MNCs usually salivate over the large share of mouths available in India. But for abunch of enterprising home-grown entrepreneurs it's a slice of the global pie that islooking attractive. Companies such as frozen yoghurt chain Cocoberry and floral retaifirm Ferns N Petals are chasing interesting new markets. At a time when consumersentiments overseas is not as high as in India, why the global foray? For me, India is23 countries, I have to have as different a strategy, a different taste, a different flavoufor every State here, so why not global, retorts Mr Bhalla , CEO, Cocoberry. In fact, he

says a Dubai may have more in common with a Delhi market than a Chennai marketwith a Delhi market.

12. FMCG companies set to post strong double-digit Q1growth this fiscal ET 26 JulyInflation-led price hikes and contribution from acquisitions isexpected to perk sales growth to strong double digits year-on-yearfor fast-moving consumer goods (FMCG) companies for the firstquarter this fiscal. Though volume growth is likely to sustain formost of the product categories, the highly competitive categories(like shampoos) are likely to witness some moderation due todowntrading by consumers at the bottom of the pyramid in thecurrent high inflationary scenario, analysts say.

Favourable macroeconomic drivers such as GDP, rising incomelevels and population growth are driving growth in the FMCG sector. For Q1 FY12, analysts expect a sales growth ofaround 17% year-on-year for FMCG companies. They expect the topline growth of most FMCG companies to be a mixof higher sales volume and price increases witnessed in the first quarter FY12.

13. Cadbury Kraft India one of fastest growing operations for Kraft globally ET 27 JulyChicago-headquartered Kraft Foods, which acquired Cadbury last January for $18.9billion, is earning a double bonanza from British chocolate maker's Indianoperations. Not only is Cadbury Kraft India one of the fastest growing operations foKraft globally, revenues spurted by 40% in January-March 2011 quarter, thedomestic business is proving to be a ripe hunting ground for talent. Within a year-and-a-half of acquiring Cadbury, the $50 billion Kraft has picked up 21 managers foglobal and regional roles from the Indian affiliate. "Something like this has neveever happened in any other market wherever Kraft is present globally. And I thinkthat it shows the commendable flexibility of Kraft to stick to its `best of bothstrategy," points out Anand Kripalu, President, South Asia & Indo China, & ManagingDirector, Cadbury India. 'Best of both' refers to the Kraft-Cadbury combine's efforts

to integrate the cultures, heritage and people of both brands.

14. Telecom next big call for loyalty service providers: Accentiv The Hindu Business Line 26 July

Accentiv, an end-to-end loyalty solutions provider, has said the growth in organisedretail and airlines is fuelling the growth of loyalty service providers in India. As a part ofits growth strategy, the company said it looking to invest in analytics an area whichprovides data on customer buying behaviour and also track return on investments bycorporates.You need to have loyalty programmes to retain customers. Newer sectorslike telecom and DTH too are looking at loyalty programmes as a part of their customer

retention function. Airlines, retail, banking and hotels are the ones that are fuelling thegrowth. As organised retail grows, loyalty programmes will proliferate, Mr Ashok M.S.,Chief Operating Officer, Accentiv, said.

15. Close Up smile gets wider BS 27 JulyColgate-Palmolive is the overall market leader in the Rs 3,000 crore Indiantoothpaste market. But the crown has eluded Colgate in the fastest growingsegment of the toothpaste market the Rs 900 crore gel segment whereHindustan Unilevers Close Up has widened its lead with a 60 per cent share. Whileanalysts agree that the first-mover advantage has helped Close Up secure anedge, a large part of its success can be attributed to two factors - youth-centricproduct positioning and an innovative product pipeline. The most recent additionto its arsenal has been the Fire Freeze variant. Such innovative variants havehelped Close Up keep the gel segment buzzing.

Documents

Xed_CA Marketing Newsletter July 21 July 27