Vignesh S

Why Tamil Nadu is the most daunting liquor market in India

2013-02-10T13:09:00.000+05:30

You would think nothing can ruffle Vijay Mallya's United Spirits Ltd BSE -0.69 % (USL) in the Indian drinks market. The company controls nearly half of India's 230-million-cases-a-year market, thanks to a bevy of brands in its portfolio. Earlier this week, India's largest drinks company posted a 71% increase in net profit toRs 80.6 crore in the December-ended quarter.

But USL hardly sounded like a company that had reported spectacular earnings. Reason: the report card from Tamil Nadu. The company said it continued to be hurt by regulatory changes in Tamil Nadu where, it said, the state government is promoting local brands by artificially controlling supply.

"Against a capacity of 1 million cases per month [in Tamil Nadu] and a demand that is much larger, United Spirits' monthly capacity is being artificially pegged at 0.75 million cases... to benefit new and existing local players," it said in a statement.

Curious Market

That's the odd thing about Tamil Nadu. It is India's largest liquor market, with monthly sales of 42 lakh cases and growing at more than 12% by volume. According to a Times of India report, the state consumed liquor worth Rs 300 crore in four days to usher in the New Year. In other words, it is a drinks company's paradise. Not just USL, even a rookie player would be panting at the prospects of such a market.

But Tamil Nadu also happens to be the most daunting liquor market in India. To understand why, you need to go back to 1983, when chief minister MG Ramachandran created the Tamil Nadu State Marketing Corporation, or Tasmac, to sell liquor in the state. Tasmac has an ironclad control over distribution of liquor in Tamil Nadu.

Subsequent governments have moved to further tighten Tasmac's grip over liquor sales (6,798 retail outlets) in the state due to its potential to make money. In 2010-11, Tasmac earned Rs 18,000 crore. These revenues are important for the state government as they are diverted towards election freebies.

After the AIADMK came to power, the government ordered that even hotels and pubs should procure liquor through Tasmac. The order was lifted only because the agency did not have the capacity to store imported foreign liquor.

A tightly regulated market is not the only rub for drinks companies. Liquor produced in the 11 distilleries in the state is divvied up between the large companies and a raft of local players (see Have You Heard...).

A senior executive of a top drinks company, speaking anonymously, complained that this goes against the grain BSE -4.89 % of free market economics: "The government passes whimsical ad hoc orders and consumers drink what the government decides."

A new entrant must either establish a distillery on its own or partner an existing player. Modi Illva India, the producer of Rockford Reserve (see page 22), has launched the whisky in 18 states, but is yet to enter Tamil Nadu for this reason. That may also be why drinks giant Pernod Ricard has kept away from the state.
A senior executive of another drinks company says every local player is affiliated to a politician belonging to the AIADMK or the DMK. "It is a market neck-deep in political nepotism."

A Tasmac official agreed. "For instance, the market share of Midas [a distillery owned by an associate of the AIADMK] was negligible during the DMK reign. It picked up after the AIADMK came to power."

Political Factor

For this reason, fortunes can suffer a reversal following a change of government. The Tasmac official says Mallya's USL took a beating after the AIADMK came to power. The company's monthly market share fell to 12% in December from more than 20% in May last year. Volumes dropped to almost 5 lakh cases (of 9 litres each) from about 10 lakh. Currently, the company's share is less than 10%. USL declined to comment for this article.

The second company executive quoted earlier says USL has long benefited from government policies in Tamil Nadu. "The reaction from USL could be because Diageo [Mallya is looking to sell 53.4% in USL to the world's largest drinks company] may have started making noises about the practices in Tamil Nadu." That could be the most distinguishing trait about Tamil Nadu. It frustrates even the most powerful drinks companies.

Why Singapore scores over India on settlement of corporate conflicts

2013-01-01T21:12:00.003+05:30

When Telenor and Unitech BSE 3.71 % had issues related to their partnership, they said they would hold formal talks in Singapore rather than in India. Most of the Videocon BSE 0.05 % Group's contracts with Indian parties provide for arbitration in Singapore, and several recent shipping disputes involving Indian companies are being settled outside the country, says Anirudh Krishnan, a Madras High Court advocate.

Companies in India, as elsewhere, prefer to resolve their commercial disputes outside courts, through independent third-parties and a process called arbitration. "Arbitration is popular among companies as they do not want to enter into long-drawn litigation and also due to confidentiality issues," says KS Harisankar, executive director of the Centre for Advanced Research & Training in Arbitration Law, Jodhpur. So does the government as India's courts are submerged under pending cases—about 32 million as of June 2011, according to a Supreme Court publication.

But such are the rules, and such is the absence of urgency in the government to fix them, that they don't promote a clear and efficient arbitration ecosystem in India, pushing the large companies out of the country and leaving the small ones to navigate the long wait of the courts.

Nine years ago, crucial changes were suggested in the Indian Arbitration & Conciliation Act, 1996. In 2010, the law ministry released a consultation paper on the proposed amendments, but the changes are still on the drawing board. "Plenty of changes are necessary," says SK Dholakia, senior advocate and an expert in arbitration. "But our law ministers do not appear to be action-oriented. I have met them all except the present one. They promise to do something, but don't do anything."

Absence Of Defined Laws

The lack of legislative action has meant the interpretation of different clauses of the 1996 law has been left to the courts. Till September 2012, even after arbitration was held outside India, either of the parties could challenge it in India, defeating its intended purpose as the means of last resort. "The key is to separate international and domestic arbitration," says Harisankar, assistant professor, National Law University, Jodhpur. "Singapore follows this model."

It took a September 2012 SC verdict in a case between Bharat Aluminium Company Ltd (Balco) and Kaiser Aluminium Technical Service to clarify the Indian Arbitration Act will not apply if arbitration proceedings are held outside India.

"It (the Balco verdict) is definitely a step in the right direction," says Dholakia. However, for every court decision that furthers the cause of arbitration, there is another that restores the status quo, says Krishnan. He cites the example of the SC ruling in the SBP versus Patel Engineering BSE 2.62 % case on what should be done if one of the parties fails to nominate an arbitrator. The Arbitration Act says the chief justice or an institution designated by it can appoint an arbitrator. The SC interpreted this to mean a Supreme Court or High Court judge, again defeating the purpose of keeping arbitration out of the courts.

This verdict is seen as a setback to arbitration institutions. "If this decision (Patel Engineering) had not held so, perhaps institutions would today have a huge role in appointing arbitrators, and this would have been the shot in the arm that institutional arbitration required," says Krishnan.

Few Indian Institutions

By one classification, arbitration is of two kinds: ad hoc and institutional. In ad hoc arbitration, typically, each party appoints one arbitrator each, and jointly agree on a third name. An example of this is the ongoing dispute between the Delhi Metro Rail Corporation (DMRC) and the Reliance Infrastructure-promoted entity over the troubled Delhi airport metro line.

The main drawback of ad hoc arbitration is the absence of a time-frame to decide a case. For example, a party can delay proceedings by refusing to appoint an arbitrator; another cause of delay is finding a common schedule among arbitrators for hearings. A 2011 survey done by Ernst & Young of 68 companies showed that 24% of respondents had undertaken ad hoc arbitration.

In institutional arbitration, companies approach an institution -- a wing of a court or an arm of a law firm that specialises in such cases. Compared to the ad hoc route, institutional arbitration is more defined—for example, there are set rules on how arbitrators will be selected and duration of the proceedings.

But weak arbitration laws have meant there are few such Indian institutions. "People still prefer ad hoc arbitrations," says Pallavi S Shroff, senior partner with Amarchand & Mangaldas, a law firm. "Or where foreign parties are involved and institutional arbitration is contemplated, the ICC at Paris or LCIA in London or SIAC in Singapore. It is sad there is not a single Indian institution of repute."

In 2009, the London Court of International Arbitration (LCIA) set up shop in India. The same year, the Delhi High Court opened its arbitration centre. "The establishment of (these) two institutions have been a gamechanger regarding the perception of lawyers and businesses vis-a-vis arbitration," says Ajay Thomas, registrar of LCIA India. He adds the Delhi High Court centre was significant as it promoted the cause of institutional arbitration in India and was a signal from the courts that the judiciary was not antiarbitration.

Rule Changes & Reforms

Experts would like to see two other changes in Indian arbitration laws for greater clarity. The first, says Dholakia, is to stop one of the parties in the dispute from taking away assets or investments from India while international arbitration is on. The second, adds Thomas, is to clearly state the 'national policy', or the grounds on which a court can set aside an arbitration award citing national considerations.

The SC, in a case between ONGC BSE 0.13 % and Saw Pipes, included the term 'patent illegality', which is not defined under the Arbitration Act. This has resulted in added confusion on what grounds arbitration awards can be challenged in local courts.

A third reform experts are seeking is the establishment of commercial courts. The Commercial Division of High Courts Bill, 2009, was passed by the Lok Sabha in December 2009, but is yet to be passed in the Rajya Sabha. The bill envisages each high court having a division to handle commercial disputes above a certain value; it also specifies processes and time limits.

All this will make for easier, smoother arbitration, and keep more companies out of courts and in India. The government has to act.

Dark horses emerge top wealth creators in 2012, UB Group tops the list along with Ramco, Godrej & Birla Groups

2013-01-01T21:07:00.001+05:30

The year 2012 appeared to be the year of the underdogs. The highest wealth creators this year were the less-fancied groups such as Chennai-based Ramco Indiabulls, Godrej and BK Birla. The surprise, however, was the embattled UB Group.

The UB Group, which has under its fold seven companies, mainly in liquor and aviation, topped the list of wealth creators for 2012, as its market capitalisation tripled in the past one year, driven primarily by theUnited Spirits BSE 2.81 % (USL) deal, its biggest company with Diageo, the world's most profitable liquor company, which led to a rerating of USL.

Both the Ramco and the BK Birla Groups, which mainly have interests in the cement industry, gained from the favourable outlook of the industry. The BSECement Index rose by 45% in 2012 compared to a gain of 27% in the Sensex.

"The cement industry suffered last year due to demand-supply mismatch. However, this year due to better production discipline, companies were able to maintain their margins.

The Street believes that the margins in the coming quarters will go up, which has led to a rally in thesestocks," said Rajesh Ravi, senior analyst at Karvy. The Indiabulls Group, with a presence in real estate and housing finance, on the other hand gained from the reversal in the interest rate cycle.

"Indiabulls' financials reported a healthy growth in disbursements and become the second-largest housing finance company this year," says Hardik Shah, analyst at KR Choksey.

The Godrej Group, with a diver-sified presence in consumer, real estate, agro and chemicals, benefited from an improved show across all its businesses. All its group companies outperformed the respective industry indices, propelling the company to the list of top five leading wealth creators of 2012.

Amongst the top five groups by market capitalisation, the Mukesh Ambani-led Reliance Group and Tata Groupunderperformed the benchmark Sensex. Their market capitalisation rose 16% and 25%, respectively, while theSensex gained 27%. The HDFC BSE 0.60 %, Aditya Birla and ICICI BSE 1.92 % Groups outperformed the Sensex as their market capitalisation rose 48%, 37% and 66%, respectively.

10 Corporate buzzwords that will dominate 2013

2013-01-01T21:05:00.001+05:30

1. Money

Contrasting imperatives will bring about many unions between those in need of funds and those with a surplus, via mergers and acquisitions, and public and private issues. Many cash-starved Indian companies will hawk assets to cut debt, while the better ones will raise capital to grow. Companies with heavy debt will restructure to sharpen focus on core business, while foreign companies from the US and Japan will hunt for Indian assets to expand.

2. Women's Safety

The outpouring of anguish following the recent gang rape of a young woman in a Delhi bus and her tragic death is wending its way to India Inc. It is putting pressure on companies, especially those in 24x7 sectors, to not treat safety of women at the workplace and beyond as a blind spot, and instead fortify internal processes, take initiatives and sensitise male co-workers. The urgency to do so has never been more.

3. CSR

With a new law likely to make it mandatory for companies above certain thresholds to spend 2% of their net profi t on corporate social responsibility (CSR) activities, this aspect could acquire greater focus and structure among the well-intentioned. Most companies are currently below the 2% mark. To scale up and to make their CSR spend count, CEOs will have more professionals on board, choose and structure initiatives thoughtfully, and make auditing and reporting of it more stringent.

4. New Banks

After eight years of dithering, new banks are a possibility. There are high hopes, and fears about business houses returning to own banks after four decades. Many groups such as the Birlas are keen, but will the conditionalities be so tough that it makes banking an unviable proposition? It will a discussion topic, more so if many big ones don't make it.

5. Accelerators

After eight years of dithering, new banks are a possibility. There are high hopes, and fears about business houses returning to own banks after four decades. Many groups such as the Birlas are keen, but will the conditionalities be so tough that it makes banking an unviable proposition? It will a discussion topic, more so if many big ones don't make it.

6. Corporate Governance

The new Companies Bill, if passed, could change the way India Inc looks at governance. From greater shareholders rights (class-action suits) to scrutiny of related-party disclosures (board now has to justify them), from rotation of auditors (maximum tenure of fi ve years for an auditor) to stringent penal provisions (fraud is defi ned for fi rst time and imprisonment now introduced in many cases)...companies will have to make themselves more accountable.

7. SMAC

SMAC (social, mobility, analytics and cloud) is the most beloved acronym now in the jargon-fi lled enterprise software world. The promise is that this set of technologies will give more power to employees and customers, turn data into insights and deliver software in an on-demand form. Eventually, SMAC may mean that enterprises need be concerned with outcomes alone, and not what goes into the plumbing.

8. Gender Diversity

Gender diversity in India is still a notion practised in pockets. Having said that, there is a greater consciousness that more women in the workforce — across levels and functions — is a good thing.

It's not acceptable that women occupy just 5.3% of the total board seats of the BSE-100 companies or have only a 20% presence in engineering institutes. Many companies and organisations are proactively trying to correct this imbalance -- for example, by promoting and nurturing women, by offering fl exihours and by setting up corporate creches...This will continue in 2013.

9. Solar Power

From Rs 18 per unit three years ago, the cost of producing solar power is now about Rs 11, making it a viable alternative to, say, gensets. As of November, according to PricewaterhouseCoopers India, the country had an installed solar capacity of 1,047 MW; this is projected to increase to 1,650 MW in 2013. More states are following Gujarat to incentivise investments. Big groups like Reliance ADAG and Birla are coming in. Gigawatt scale (Above 1,000 MW) installations per year, as expected from 2013 onwards, will attract global component makers (glass, cells, batteries, panels) to set up units here, further lowering costs.

10. Digital Marketing

Just when marketers thought they had nailed what digital marketing stands for, it has gone and changed again. It has variously stood for creating websites, search engine optimisation, marketing on social media and engagement, and maybe even sales via mobile platforms. In 2013, it will stand for all of the above, and more — swot up on buzzwords like SoLoMo (social, local, mobile) and gamifi cation (think of the point system in games like Farmville applied to mundane tasks to make them more engaging)

Piramal Group in talks to buy US PE firm TPG Capital’s 20.27% stake in Shriram Transport Fin for Rs 3,500 cr

2013-01-01T21:03:00.000+05:30

Mumbai-based billionaire Ajay Piramal's eponymous Piramal Group is in advanced talks to buy US private equity firm TPG Capital's 20.27% stake in India's largest truck financier, Shriram Transport Finance Ltd (STFL), for around Rs3,500 crore, two people with direct knowledge of the negotiations said.

"TPG Capital has already sounded out its partner (Shriram) about Piramal Group being a potential buyer, and it has given its consent," one of the persons told ET, adding that contours of the proposed deal involve TPG selling its entire holding in a block sale to Piramal Healthcare BSE 0.31 % at current market price. "The sale will fetch around Rs3,500 crore and the block sale will help TPG save on capital gains tax."

The second person said negotiations are in advanced stages and a deal is likely to be sealed by January-end or early February.

Puneet Bhatia, head of TPG Capital in India, declined comment while the Piramal Group, whose businesses span healthcare to real estate, said in an emailed response: "As a policy, we do not comment on market speculation." Piramal, who is sitting on a moun-tain of cash since selling his formulations business to America's Abbott Laboratories in 2010 for $3.72 billion, has made no secret of his desire to diversify into financial services.

A significant foothold in Shriram, one of India's biggest and most successful finance firms, could help him realise that dream. A successful purchase of a sizeable minority stake in Shriram Transport BSE 0.11 %Finance would rank as the latest instance of an opportunistic acquisition by Piramal.

Other recent acquisitions include the deal for an 11% stake inVodafone India, the country's second-largest mobile telephony company by subscribers, for about Rs6,000 crore.

In June this year, it bought US-based Decision Resources Groupfor $635 million.

A deal with Piramal would mean a tidy profit for TPG, which bought into Shriram for Rs 486 crore and has been trying since last year to exit it. TPG bought into Shriram in 2006 through affiliate Newbridge Capital, which acquired a 49% stake in unlisted group holding company Shriram Holding Madras Pvt Ltd.

TPG found it difficult to exit the investment initially because of certain non-transferable covenants in the shareholder agreement with Shriram that diminished its allure. But the merger of the holding company with the listed STFL, completed just a few weeks ago, now offers it an exit.

TPG, a global buyout fund with around $54.5 billion of assets, owns 4.6 crore shares, or 20.27% of Shriram Transport, which can be sold either in pieces or in one block. At Friday's closing price of Rs 750.20 a share, these shares command a value of Rs 3,450 crore. STFL, which controls up to a fourth of the pre-owned truck financing business and 7-8% of new truck financing, commands a market value of Rs 17,018 crore.

While the Shriram Group declined comment, one official, who requested anonymity, said the group was not averse to the Piramal Group coming in as a minority shareholder, although details about the rights the new minority shareholder would have were yet to be finalised.

"The valuation part of the deal is more or less finalised. However, the relationship between the new financial investor and the management is yet to be defined," the official said. Although it may not enjoy the same covenants held by TPG, it is expected that the Piramal Group could be granted some privileges by virtue of its large holding.

The senior Shriram official said the group was not keen to give special rights of the sort TPG enjoyed to the buyer. "But, we have not reached that stage," the official added.

A former head of another US private equity firm said ideally for Shriram, TPG should have sold its interest to another like-minded financial investor.

"Knowing Piramal's interest in financial services, a sale will be like bringing in a Trojan horse," said the person, requesting anonymity.

Why India does not have a vibrant strategic culture

2012-10-21T21:43:00.001+05:30

Manmohan Singh bemoans its absence. In the halcyon days of his first term, Singh, attempting to change the strategic outlook of this giant nation, was often heard complaining, "We must develop a strategic culture in this country."

He joins a large number of Indian intellectuals who decry our apparent lack of ability to plot out India's "strategic thought" or even plan a "grand strategy".

To a casual observer, India's actions — or lack thereof — often appear to be a result of who the government spoke to last, or based on ad hoc considerations that undermine India's interests. What makes this outlook interesting is that foreign analysts writing about India, seem equally clear that India does not have a vibrant strategic culture.

So Inchoate

Many of us would agree with George Tanham who wrote in his seminal RAND study on Indian strategic thought: "[India] is an extraordinarily complex and diverse society, and Indian elites show little evidence of having thought coherently and systematically about national strategy."

Why do we seem to be an inchoate mass of chattering classes, government, national security establishment and politicians, all working at cross purposes, with the result that nobody quite knows why we do what we do or whether Indian interests are at all being advanced in the global marketplace?

India, many argue, does not have a strategic culture because it has never faced an existential threat. The burden of being around for millennia has given a sort of timelessness to its strategic outlook.

Off the Mark

On a more mundane level, though, part of the problem is the lack of an articulated grand strategy — that makes it difficult for either practitioners or analysts to figure out exactly why we do what we do. For instance, why do we hanker after a permanent seat in the UN Security Council, even without veto power?

The fact is, it is part of an otherwise unarticulated Indian trait that we must be acknowledged as a great nation, even if we missed the boat in the first place. Second, the wild accusations of "sellout" during the negotiations before the India-US nuclear deal missed the point about why we were entering into the deal in the first place. This resulted in most of the strategic debates being wide off the mark. When "strategy" does find voice, Indian "interests" are often expressed as third person "values", again unnecessary in the modern age.

Ironically, this is why think tanks or strategic analyses remain hopelessly emasculated even in this information age — their discourse depends mainly on published stuff in the media, because the establishment freezes them out of the processes behind real decision-making. This means think tanks are also personality-driven, depending on their personal contacts within the "system".

Second, a severe lack of capacity constrains India's national security apparatus — the number of bureaucrats in the foreign office has been a subject of discussion for some time. What is less talked about is the system itself, which doesn't really lend itself to strategic thinking. Since the national security/ foreign policy system functions through silos, the division "handling" say, Iran-Pakistan-Afghanistan, is also responsible for the grand strategy therein. This sucks the oxygen out of any policy planning or strategy exercise within the foreign office.

Back to the Epics

The truth, as always, is complex. What is strategic culture, and do we have it? Kanti Bajpai writes: "Strategic culture consists of two parts. The first is the central strategic paradigm — the basic assumptions about orderliness in the world. Included here are assumptions about the role of war in human affairs, about the nature of the adversary, and about the efficacy of the use of force. The second part is grand strategy, or the secondary assumptions about operational policy that follow." Bajpai says there are three streams of Indian strategic thought — Nehruvian, neo-liberal and hyperrealist, saying that core values remain common to all, but strategies differ.

Is there a strategic culture in India? Actually, yes. There are core strategic values that India has embraced and lived by since Independence despite changes in strategic, foreign and security policies. It is inspired by not only the Arthashastra, but the Ramayana and the Mahabharata also, leavened by the complexities and contradictions inherent in Indian thought that have evolved over centuries of being a culture that encompassed and assimilated "foreign" influences.

Tanham says, "Four principal factors help to explain Indian actions and views about power and security: India's geography; the 'discovery' of Indian history by Indian elites over the past 150 years; Indian cultural and social structures and belief systems; and the British rule (raj)."

The Need for Autonomy

Shivshankar Menon, in a tribute to strategic guru K Subrahmanyam, describes the bedrock of Indian strategic thought as defined by "Subbu" — the need for "strategic autonomy". Often mistaken as a synonym for non-alignment, this is actually much closer to flexible realism. Menon says, "India is alone, along with the USA in an earlier age, in seeking to industrialise and accumulate power as a democracy."

Therefore, Indian strategic culture is a function of our assimilative history. As Menon says, "Strategy is not just about outdoing an adversary who is trying to do the same to you. It is also about finding cooperative solutions and creating outcomes in non-zero-sum situations, even when others are motivated by self-interest and not benevolence."

India could face shortage of air traffic control officers

2012-10-21T21:42:00.003+05:30

With burgeoning air traffic, India could soon face a severe shortage of air traffic control officers (ATCOs), a top aviation official said today, asking theAirports Authority of India to take immediate steps to recruit them in large numbers.

Responding to the suggestion by DGCA chief Arun Mishra, AAI Chairman V P Agrawal said the average annual intake of ATCOs was about 250, apart from an almost similar number for communication officers. "We will step up this recruitment process in the coming days," he said.

They were speaking at the opening of the four-day Asia Pacific Regional Meeting of the International Federation of ATC Association here.

Expressing concern over airlines criticising "high airport charges", the AAI chief said the navigation charges in India were "25-30 per cent lower than Europe and China. And yet, the IATA (International Air Transport Association) speaks of high charges."

He said the improvements in air traffic flow management and navigation systems had led to lesser fuel burn for aircraft and has helped airlines save lot of resources.

Referring to the new satellite-based augmentation system GAGAN to be implemented next year, Agrawal said the Indian Air Force has also come forward to cooperate in the flexible use of airspace that would considerably improve air traffic flow over the Indian airspace. "This will be a game-changer".

Terming ATCOs as "unsung heroes of aviation" who kept the skies safe, the DGCA chief said a major challenge facing the aviation sector was its rapid growth which was yet to be matched by developments in infrastructure and manpower.

He said the country would "very soon face severe shortage of ATCOs" and asked AAI to think of innovative ways to produce such professionals to meet the high growth in civil aviation.

Mishra also asked the AAI and other professionals in the field to carry out more studies to facilitate fatigue risk management, pointing towards the "arduous and tiring nature" of their job to keep air travel safe and secure.

The ATCOs not only cover 130 airports across the country, but the vast Indian airspace comprising 9.5 million square kilometres, including the oceanic airspace.

Bigger challenge than Kilimanjaro? Atul Haku Shah hopes to rule Africa's supermarket

2012-10-21T21:38:00.002+05:30

When Atul Shah travelled to the US for a year in 1983 he was just 17. But he had no interest in a formalhigher education in America and didn't head for a fancy B-School. Instead, he spent the 12 months studying the retail sector and working in supermarkets. He was developing a business strategy for his own family business back in Kenya.

"My parents had immigrated to Kenya from Jamnagarin Gujarat in the 1940s, long before I was born. My father had then set up a small retail business in Nakuru, a city near Nairobi," says Shah. Even as a student in secondary school, he was passionate about the retail business and worked part-time in the family store.

The trip to the US was to get a better understanding of big retail formats and hone his skills. "The sheer size of the retail industry in America was an eye-opener and I was convinced that we could start a retail revolution back in Africa too," says Shah.

Retail Spread

His father Nemchand had acquired a small retail business called Nakuru Mattresses in 1978, which had then evolved into Nakumatt, the family retail store mainly selling mattresses.

While, over the years, the product offerings had expanded into various other things such as FMCG and consumer durables, it was Atul, after his return from the US, who is credited with starting the retail revolution in East Africa with the first superstore in Nairobi in 1992 called Nakumatt Mega.

Today his group, Nakumatt Holdings, is the largest retailer across East Africa, and the Nakumatt Mega network has spread to 27 locations in Kenya and has expanded to Uganda, Rwanda, Burundi, Tanzania and South Sudan.

In 2008, Nakumatt opened its first store outside Kenya in Kigali (Rwanda). And in June 2009, the first Nakumatt store in Uganda opened in central Kampala. Uganda is one of the big markets for Shah and in November 2010, Nakumatt acquired Payless Supermarket, a supermarket chain in Uganda.

Anchored in Africa

"There is a huge business opportunity in Africa in formal retailing formats, which I plan to tap in the years to come. In Kenya, too, the retail revolution is catching on and we are identifying smaller towns to set up supermarkets, hypermarkets and convenience stores," says Shah.

And though he is quite happy being referred to as theKishore Biyani of East Africa, after India's retail king and Future Group CEO, he has no plans to either enter the Indian retail space or even tap the Indian stock market.

"We are currently a family-run business, with my two sons Neel and Ankoor too having joined the company. When we look at tapping the market, it will be in Africa," says Shah.

The company has an annual turnover of $450 million. It also runs a loyalty programme across the countries it is present in called Nakumatt SmartCard which has a membership base of 500,000. "We are firmly committed to Africa and serve over 200,000 customers daily in the region with a range of over 75,000 products. For me, the future is definitely here in Africa and I hope to have a much bigger footprint in other parts of this continent too in the next five years," says Shah.

Foreign Money, Local Sourcing

He has been closely watching the developments on the policy front, over foreign direct investment in the retail sector in India, to compare with his own experience of having developed deep relationships with the agricultural sector in East Africa. "About 50% of our products come from the agricultural sector and we source most of it locally. Though we don't directly reach out to farmers, we have deep relationships with the farming community through our suppliers in this region," he says. The group now directly employs over 5,500 people locally.

Shah, who has an extended family in Gujarat, likes to visit India occasionally. But his life and work is in East Africa which he considers his only home. Atul Shah, who is called Haku Shah by family and friends, recently climbed to the top of Kilimanjaro, Africa's tallest mountain, as part of a charitable initiative by his company. Taking the retail revolution into the interior parts of East Africa is proving no less a challenge.

Straight out of Agatha Christie: Why Tata IHC's Orient Express bid has historical and literary value

2012-10-21T21:35:00.001+05:30

It is not often that a company gets an opportunity to acquire a piece of history. In 2005, the Tata-controlled Indian Hotels purchased Pierre, a New York hotel, built just before the Great Depression. It was inaugurated with great fanfare in the 1930s, but economic troubles quickly forced it out of business.

A painful business reorganisation followed, but with fortunes dwindling, it was left to Paul Getty with wealth from the Stanford oil business to lead a remarkable turnaround.

Orient-Express, the international luxury hotel resort chain that is Indian Hotels' latest target, does not boast such an impressive pedigree having been established only in the 1980s, but it has something else for which the history-conscious Tata group will be ready to walk the extra mile. A name, a lasting name.

In 1934, the year when Agatha Christie's novel Murder on the Orient Express was published, the name Orient Express (also called the Venice-Simplon Orient Express) was associated with just a train. A fashionable and popular service running between Paris and Istanbul with stopovers at Venice, Belgrade, Bucharest and Vienna. The modern, post-World War II makeover that resulted in the name being transplanted to a chain of luxury hotel resorts, and had not yet happened.

Christie's book was inspired by a real-life event, when, en route from Istanbul, the train was trapped in Turkey for six days in deep snow. On another occasion, the author herself was stuck on board for 24 hours due to floods.

Her authorised biography quotes in full a letter to her husband detailing the event. The letter includes descriptions of some passengers on the train who influenced the plot and characters of the book, in particular an American lady, Mrs Hilton, who was the inspiration for Mrs Hubbard.

The book made the train service world famous, but it had acquired a different sort of fame during World War I as trenches littered central Europe's rural landscape and the sound of artillery and the smell of gas poisoned the air and the earth and maimed an entire generation of able-bodied men.

Love, Hate & Propaganda

Robert Baden-Powell, better known to the world as the founder of the Boy Scouts movement, used to travel in the train as a lepidopterist, sketching butterflies and collecting smaples. What was unknown to the world at that time was that Baden Powell's sketch books had coded drawings of enemy fortifications along Yugoslavia's Dalmatian coast. In 1920, the then president of France Paul Deschanel found himself in an embarrassing situation when he stumbled out of the train in his pyjamas and bathroom slippers. With great difficulty, he reached the signal box to be greeted by the signal man. "I am the president of France," Deschanel said. The signal replied without batting an eyelid. "And I am Emperor Napoleon".

Despite its great popularity, one man hated the train and its service with all the intensity that he could muster. Adolf Hitler took particular interest in one car of the service which had been used by the Allies as a conference room when the Germans signed the surrender document on November 11, 1918.

After his troops stormed Paris in 1940, Hitler ordered the same car to be brought to the place of the signing in 1918 before asking the exhausted Allies to surrender. Five years later, as his own defeat appeared inevitable, the car was blown up to prevent it from becoming a symbol of Allied triumph.

The Cold War did not provide any exciting episodes for the train service but it was being increasingly associated writers and movie makers. Graham Greene's Stamboul Train was based on the Venice-Simplon Express, and a cavorting Sean Connery makes a daring escape in the train in the Bond thriller From Russia with Love.

The service finally came to a halt in 1977 (though a super-luxury train by the same still continues to run) but the name has survived thanks to a an American businessman James Sherwood after he purchased Venice based Hotel Ciprani in 1976. Sherwood, who had earlier founded London based shipping company Sea Containers Ltd, then took control of the Venice-Simplon Orient Express, which was operated by Compagnie Internationale des Wagons-Lits in 1982 after he had bought two of the original carriages of the train at an auction in 1977. After acquiring the tourist train, Sherwood continued to build on the brand and currently operate high end hotels, cruise and train services around the world.

Indian Hotels Company makes $1.86 bn offer to buy Orient-Express Hotels

2012-10-21T21:31:00.000+05:30

Indian Hotels Company, the hospitality chain owned by the Tatas, along with an Italian fund has offered to buy Orient-Express HotelsLtd (OEHL), in an attempt to break a five-year impasse during which the Tata Group's efforts to increase its influence over the operator of luxury hotels, restaurants and tourist trains had always been firmly rebuffed.

In a statement issued on Thursday evening, IHC, which owns 6.9% of OEHL, said it had teamed up with Charme II Fund, an Italian Fund managed by Montezemolo and Partners SpA, to make an offer to purchase all the shares of NYSE-listed Orient-Express it does not own already.

IHC and its partner have offered to pay $12.63 per share, a 40% premium to OEHL's closing price on October 17, 2012, and a 45% premium to its 10-day moving average.

The announcement drove up the shares of the Bermuda-based company by 38%, the biggest gain since its shares started trading in 2000, according to Bloomberg News.

The total value of the transaction is $1.86 billion, including Orient-Express' net debt, the statement from IHC said. Indian Hotels would finance the deal through a combination of debt and equity, the statement added.

While Charme II Fund will invest $100 million for a minority stake in the combined company, the Tata Group has secured debt financing from Bank of America NA, ICICI Bank BSE -0.86 % and Standard Chartered Bank.

Simultaneously, Indian Hotels has also entered into an agreement with James Sherwood, former chairman and founder of Orient-Express, whereby Sherwood has agreed to waive certain rights that would have been triggered in the event of an acquisition of Orient-Express by Indian Hotels. Bank of America Merrill Lynch is advising the Tata Group on the deal.

Charme II fund was founded by Luca Cordero di Montezemolo, one of Italy's most prominent businessmen who serves as chairman of Ferrari SpA as well as vice-chairman of UniCredit.

The New York Times quoted a letter from RK Krishna Kumar, vice-chairman of IHC, to Philip Mengal, CEO of Orient-Express, expressing "disappointment" that the latter's board was not willing to consider "a substantial equity investment by IHCL".

IHC currently holds over 71 lakh 'Class A' shares of Orient-Express aggregating to a 6.9% equity stake, acquired in stages during 2007 and 2009.

Earlier Attempts Rebuffed

The IHC board has given an 'inprinciple' approval to the management to make an offer to the Orient-Express board, seeking its consent for acquiring the outstanding 93.1% Class A common shares of the US hotel chain.

OEH has two categories of shares — Class A and Class B. Class A shares are traded on the NYSE while Class B shares, which have higher voting rights, are controlled by a Bermudabased subsidiary of OEHL, Orient-Express Holdings.

"Total funds required to consummate the transaction are in place. IHC also has an agreement with Montezemolo & Partners, an important Italian company directly owned by the Montezemolo family that is the manager of Charme II Fund, which will be a minority shareholder in the SPV set up for the transaction," the IHC note to BSE said.

"Indian Hotels has great respect for Orient-Express and its collection of unique luxury hotel properties around the world, and we are very excited at the prospect of bringing our two great companies and brands together," said Krishna Kumar. "We believe this premium all-cash offer represents a compelling and immediate value proposition for Orient-Express' shareholders and provides Orient-Express with access to the additional capital necessary to preserve its properties and heritage while potentially expanding its footprint."

"While we would have preferred to negotiate confidentially with Orient-Express, US securities laws required public disclosure of our proposal. However, we are prepared to devote all necessary resources to expeditiously complete due diligence. We look forward to Orient-Express' prompt reply and the opportunity to engage in further discussions that will result in a mutually beneficial transaction for both companies' shareholders and other constituencies," Krishna Kumar was quoted as saying.

In the past, Indian Hotels' efforts to increase its stake or seek control had been rejected by the company. The former CEO of Orient-Express, Paul White, had earlier written to Krishna Kumar saying he didn't believe "there is a strategic fit between your predominantly domestic Indian hotel chain and our global portfolio of luxury hotels".

The Orient-Express management had ring-fenced the company from any potential hostile attempt by including a "poison pill" clause. But by approaching the board directly and not the other shareholders, the Tatas may circumvent those roadblocks.

"By making it an Indo-Italian effort, they are trying to pacify the board and even the Orient-Express shareholders," said an investment banker following the development. The Tatas have also proposed to keep Orient-Express an independent company with an independent management team. Even as recent as August, the Tatas had said they had no immediate plan to take over Orient-Express.

"The Orient-Express is a good and strategic fit for us. However, nothing is on the table now for acquiring it. We may look at options later as it will be a longterm investment for us," Ratan Tata had told at the 111th annual general meeting of the company.

The bid comes just weeks after Indian Hotels posted a drastic drop in profit in the first quarter ended June to Rs 4.03 crore against Rs 21.31 crore in the yearago quarter and Rs 65.21 crore in the March quarter. Indian Hotels has been buffeted by the global economic downturn, which has affected occupancy rates in the US, and is saddled with consolidated debt of over Rs 3,500 crore.

How to get rid of unwanted body hair by shaving

2012-10-21T21:29:00.001+05:30

FACIAL HAIR

Fact: An average man spends five months of his lifeshaving his facial hair

Majority of working men prefer to sport the clean-cut look — it's a globally acceptable 'corporate grooming standard' Statistics don't lie: 84% shave daily, while only 16% prefer to maintain well-defined shadow stubbles, moustaches or beards.

RAZORS & BLADES

What to use: As each person's hair growth pattern is distinctly different (even within members of the family), always choose your blade or razor based on your individual needs. Never make your buying decision based on a friend, a colleague or a relative's recommendation. You will need to try a variety of brands and blades — disposables, single, double or triple, until you find the right one for yourself.

How to use it: Always shave after your bath. The combination of body gel, soap, shampoo and water will make the hair softer and open up your pores resulting in a smoother and cleaner shave. It also prevents unnecessary nicks, cuts, abrasions and an after-shave irritation.

What not to do: At all costs, avoid a reverse shave. When you shave against the grain, the blade rakes across the skin and pulls the hair more harshly up and away from the face — this leads to the likelihood of nicks, razor burn and ingrown hairs. Your razor is as personal as your toothbrush — for sake of hygiene and to prevent infections, never share it with anyone.

Upkeep: A single use disposable blade should never be used twice. The primary disadvantages — lower quality shave, skin irritation or in-grown hairs afterwards. On the other hand, a double or triple blade can be used until it gets blunt or when it begins to pull your skin or skips areas it shouldn't. Using an old or a blunt blade can also result in a rash, red patches or a painful razor burn.

Maintenance: When not in use, never leave your razor wet or with hair on it. This can attract bacteria and lead to skin breakouts. Rinse your razor (ideally with a warm antiseptic solution) after each use and cover it once it's dry.

What you should know: You will need a flexible monthly budget to restock and refill. Most brands (both local and international) are priced rather high and claim their blades last a lot longer than they actually do. I am yet to come across a make that can guarantee a good shave, after just about a week of regular use.

CLIPPERS, GROOMERS & TRIMMERS

Spoilt for choice: You can choose from a huge variety on offer — both electric and battery operated that can be used to shave, shape, trim or remove your facial and body hair. As some models are specifically for body hair and others for facial shaving, understand the products features, before you make your purchase. Pick one that suits your requirements. I personally like the new range from WAHL and Philips. Both brands are priced well and can be trusted for durability and quality.

Plus: Fewer cuts in the skin, quicker shaving and no need for water supply. Experienced users actually use their gadgets on the go, either on a long haul flight and some even in their cars — on the way to an important meeting! Most people also find that they do not experience ingrown hairs or razor bumps, when using an electric or battery operated shaver.

Minus: Some don't always cut the whiskers as close as wet shaving does and they require a source of electricity or batteries that need a charge. With the kind of power outages we have seen recently, having a wet shaving set on stand-by is almost imperative!

Usage: Before you use a motorised razor, your skin may need to be dry and preferably clean. Follow the manufacturers instructions. Set the blade to the kind of shave you need — there's normally an option available. Based on the end result you want to achieve, choose between a direct, close or a further apart setting.

After care: Dust and brush the blade when you are done with it and keep it covered until next use.

BEFORE & AFTER SHAVE

Pre: Douse face and neck with a water-based moisturiser before you sleep. Wake up with soft & well-nourished skin and be assured of a close and hassle free shave.

Post: If you have very dry skin, you may use a soothing after-shave balm (by Nivea), oil (by Clarins Men) or a water-based moisturiser (by Shiseido Men) on the affected area. I don't recommend after-shave lotions as their overuse can sometimes result in dark batches or sunburn.

Home Remedies: Old timers have good reason to recommend the use of Alum to soothe and cool the shaved area and I endorse the suggestion. You may also apply aloe vera jelly, both as a skin conditioner and an antiseptic — which is best when derived fresh, from cutting the aloe vera leaf into two. This medicinal plant is easy to grow at home and thrives well in most parts of India.

CREAMS, GELS, SOAPS & FOAMS

For a wet shave: Lathering or lubricating agents such as cream, gel or foam should be used. Lubricating and moisturising the skin to be shaved ensures a smoother shave and helps prevent a razor or skin burn. Squeeze out the required quantity from the can, tube or bottle and spread evenly on the target area. Allow the product a minute of rest before running your razor through it.

Using regular body soap is never recommended as they can leave your skin feeling both dry and flaky. You may however use an old fashioned shaving soap (Crabtree & Evelyn) and a classing shaving brush to work up a lather with. Surprisingly, some men even use shampoo or shower gel to shave.

Recommended brands: Nivea & Gillette BSE 0.88 % for gels and foams and Godrej, Dettol and Old Spice for creams. Choose your lubricant based on your skin type - dry, oily or sensitive skin.

NOSE & EARS

It's unsightly to see hair sticking out from the ears and nose. Use a facial hair scissor (its an ordinary scissor with blunt ends so you don't hurt yourself) or a trimmer for removing the hair growth. Based on the amount of hair and how fast it grows back, you should do this at least once or twice a month. Nose strips can be used to remove the hair that grows on the nose. You would need to use these, about once every 10 days.

Tip: Avoid pulling the hair out with tweezers or your fingers — this can often result in unwanted pimples — that can be both long-term and painful.

CHEEKS & BROWS

Clean hair that grows around the eyes and on upper cheeks. This is a sensitive area and pulling hair out can be a bit painful, at least for the first few times. Removing the hair from the centre of the brows is highly recommended. It can open up your face and make you look both brighter and well groomed. This can be done with threading and should ideally be done by your barber or stylist when you go for your haircut. Even if the centre of your brows are naturally clean, trim long and loose strands that tend to stick out from the centre or sides of the brows. Always balance the ends of your brows — the inner end of the brow (that meets the nose) should always be lower than the outer ends (that touch the temples).

Tip: Lifting the ends of your brows makes your face appear slimmer and more angular and has the affect of a (non-surgical) facelift, by drastically enhancing and accentuating the natural shape of your jaw line.

BODY HAIR

Fact: Body hair removal and trimming is not just restricted to women. A recent market survey by Philipsreveals that almost 80% women think excessive body hair in men is a turn off. Another interesting finding: 61% men seem to dislike their own body hair.

Myth: Removing the hair on your body, will make it grow back thicker, faster and a lot more.

When: It's best to start only when the hair starts to grow either too rapidly, begins to feel uncomfortable or get a bit out of control.

Who: Most models, actors, body builders, some sportsmen and a lot of 'real' men do it. While some claim to do it purely for 'professional reasons', a lot actually do it because they prefer to look or feel smooth, clean and well defined. Hair removal now transcends barriers of age, caste, creed, economics, culture, religion and last but not the least — sexual orientation. Most men, who do it once, are likely to repeat the process but may not always admit to doing so. Like getting a tattoo done, the end results are said to be addictive.

1. Clippers or trimmers: Especially useful if your growth is long, thick or bushy. A clipper may not always remove the hair completely but can shorten the length to a level that's very close to skin. A clipper is best to use if you like your body retaining some of its natural hair.

2. Hair Removing creams: This is by far the quickest and most convenient way to remove body hair. They are many brands that make hair removal creams — Veet, Jolen, Jojoba, Anne French etc. Though none of these have launched a male-specific product yet, almost half of their consumers are believed to be men — both in urban and rural India. If you are using a hair removal cream, and follow instructions on the packaging. Avoid creams if you have very dry or sensitive skin. To play it safe, apply a water-based moisturiser for a few days before and after using the cream.

3. Wax: Waxing removes hair from the roots and is therefore the most effective. The advantage: it keeps your skin looking and feeling smooth for days, if not weeks. But the process can be a bit painful and can often lead to skin breakouts, if done by an inexperienced person. Alternatively, you may use wax strips (by Veet) to target specific areas.

Chest & abs: Recommended if you unbutton your shirt, wear deep-neck tees or collarless tops. For a completely slick and clean look, remove all the hair — down to the roots. For a more real feel, trim as necessary.

Underarms: If you want to prevent sweating, stay cooler & feel lighter, keep underarms completely clean.

Arms: If you wear sports vests, short or half sleeve tops, trim or remove hair on arms and forearms too.

Fingers & Hands: Trim the hair on the hands and fingers — if you occasionally wear full-sleeve shirts or jackets and if your hands are excessively hairy.

Legs: Trimming the hair on the thighs and calves works a lot better than going completely clean - not only because it looks more manly and real, but also because it's a lot easier to maintain.

The vitals: Remove excessive hair to keep the area dry. If you have sensitive skin and are prone to a rash, go completely clean, as and when needed.

Royal Enfield looks to expand overseas presence

2012-10-16T21:41:00.000+05:30

Premium motorcycle manufacturer Royal Enfield, a part of Eicher Motors BSE 0.09 %, is looking to expand its overseas presence on the back its recent launch the 'Thunderbird 500cc', a top official said today.

"Yes. We are looking at (new) markets. We have to please our customers...," Royal Enfield Chief Executive Officer Venki Padmanabhan told reporters here.

Royal Enfield is one of the preferred brand in California, the US, which he said, has one of the most stringent emission norms.

Padmanabhan, after unveiling the Thunderbird 500cchere, said besides exporting to the United States, they ship to over 40 developing and developed countries.

"We sell few bikes in California. I would say, exports contribute about 4,000 units a year. We export to some of the developed markets like United Kingdom, Germany, France and Australia," he said.

Royal Enfield currently exports 500cc motorcycle range manufactured from its decades old 10acre plant in Thiruvottiyur situated near here.

Expressing hope that the new plant coming up at Oragadam, near Chennai at an investment of Rs 150 crore would reduce the waiting period for some of its models, he said the company would have a combined capacity of 1.50 lakh units once it becomes operational.

At present, some of the products from Royal Enfield comes with a waiting period of over six to eight months, according to a company official.

Royal Enfield produces about 10,000 units a month from its Thiruvottiyur facility. It inked an MoU with the Tamil Nadu government for setting up the new plant, in which it was alloted 50 acre land at the SIPCOT Industrial Park at Oragadam. Royal Enfield announced investments of Rs 150 crore for the new plant.

The Oragadam facility is likely to begin production by first quarter of next financial year, Padmanabhan said, adding, they have combined capacity of about 150,000 units annually.

China-India 1962 War: Arunachal Pradesh will benefit by developing trade & friendship links

2012-10-16T21:37:00.003+05:30

Let me make the first statement: Arunachal Pradesh is an integral part of India. But over the years it has remained isolated from mainland India, mainly because it is located in the eastern-most corner of India. It is incidentally the largest North-Eastern state in terms of area, and it shares a 1,680 km-long border with three foreign nations: China, Bhutan and Mynamar.

With China alone, Arunachal shares a 1,080 km-long border. To stretch the introduction a little further, it is India's land of the rising sun and home to 26 major tribes and over 100 sub-tribes who speak different dialects. Apart from abundant forest resources and huge hydro-power potential, the state has mineral resources like oil and gas, dolomite, graphite, coal, quartzite, limestone, marble etc.

When students from the north east were targeted in Bangalore in August via hate SMSes, the population from Arunachal Pradesh was mostly unaffected. Yes, there were anxieties, but they did not leave the city in fear. Maybe they are too small a number to be noticed by those who were spreading rumour.

We need to devise institutionalised ways to make the integration of the north-east with the rest of India more meaningfully. Currently, central government employees are given a little more incentives in their LTA if they choose to visit the north-east.

The government also sponsors youths from various parts of India to visit the north-east to get first-hand experience. I suggest, both the Centre and state governments must devise more schemes whereby people from the rest of India are encouraged to visit the north-east and understand the region better.

On China, my views are straight and simple. China is an economic giant and we need to enhance trade ties further. But Arunachal Pradesh will benefit if we develop trading links by land. So far the only border trading point between India and China is located near Nathu La in Sikkim.

I suggest we must work towards converting the 1962 war routes as trade and friendship routes. In October 1962, Chinese soldiers occupied Tawang located in the western part of Arunachal, then called North East Frontier Agency, or Nefa. On east Arunachal, Indian and Chinese soldiers fought at Walong. We all grew up with stories around those battles.

I strongly believe that after 50 years, both New Delhi and Beijing must enter into a serious dialogue to make Tawang-Bum-La and Walong-Rima trading routes a reality. Let those be named as friendship routes. Once those land routes are opened for legal trade, entrepreneurs from Arunachal will be able to export products such as rice, oranges, orchids and handicraft items to China.

In recent years, the connectivity to those border towns has improved, making it easier for them to handle goods coming from Assam plains too. The Rupai-Walong and road to Tawang are being widened. Tawang has always been a popular tourist spot. Let it also be known for serious business with China.

Reliance Industries' over $1 bn Q2 profit may not impress investors

2012-10-16T21:36:00.001+05:30

Reliance Industries once again posted over $1 billion net profit in a single quarter in July-September '12 after a gap of three consecutive quarters. However, this is unlikely to impress investors as its petrochemical business dropped to a new low, while a large chunk of the profits came from higher other income.

If the global economic weakness results in a weakness in refining margins as well, the company could find it difficult to repeat its performance in next couple of quarters.

"Maintaining similar profitability in coming quarters appears challenging for Reliance Industries BSE -1.21 % given the macro economic trends that would put pressure on margins of refining as well as petrochemical segments," said Sandeep Randery, head of research with BRICS Securities.

A Morgan Stanley report on Reliance Industries last week cited expectations of a weaker margin environment in refining and a subdued outlook on petrochemicals as key factors before turning cautious on the company and downgrading it from 'Equal-weight' to 'Underweight'.

Petroleum refining was the sole driver of profitability in this quarter. The segment reported gross refining margin (GRM) - the differential between the cost of a barrel of crude oil and realisation from sale of refined products produced from it - at $9.5 per barrel.

This was the best number in last four quarters, but lower compared with $10.1 it had reported in the September 2011 quarter. This coupled with high operating rates boosted the profits from this segment to highest ever.

On the other hand, the petrochemicals segment that has been under pressure for a prolonged time witnessed its profit margins dip to historically lowest level of 7.9%.

The segment's profit at Rs 1,740 crore was lowest in last three years. The sector's woes are unlikely to get over in a while.

The third key segment of oil & gas production continued to drift lower with dwindling gas production from the KG basin. Its profits for the Sept '12 quarter, too, were lowest in three years, and unless the company goes ahead with further capex in this field they are expected to continue declining.

In this scenario, the company's growing cash balances have come to its rescue, as the other income contributed 31% of its pre-tax profits.

This maybe a good thing for maintaining profits at decent levels and reflects the debt-free, cash-rich balance sheet, but a drag when it comes to its capital efficiency.

The abovementioned Morgan Stanley report had also pointed 'increased risk of investments into the low-ROE businesses,' as one of the reasons behind downgrading it.

It is, therefore, more likely that the street would treat RIL's results as a non-event. The scrip will continue to take cues from developments in the global economics and Indian regulatory environment-issues like KG basin capex and natural gas price revisions post 2014.

Cuba scraps exit visa requirement

2012-10-16T21:34:00.000+05:30

The Cuban government announced on Tuesday that it will no longer require islanders to apply for an exit visa, eliminating a much-loathed bureaucratic procedure that has been a major impediment for many seeking to travel overseas.

A notice published in Communist Party newspaper Granma said Cubans will also not have to present a letter of invitation to travel abroad when the rule change takes effect January 13, and beginning on that date islanders will only have to show their passport and avisa from the country they are traveling to.

``As part of the work under way to update the current migratory policy and adjust it to the conditions of the present and the foreseeable future, the Cuban government, in exercise of its sovereignty, has decided to eliminate the procedure of the exit visa for travel to the exterior,'' read the notice.

The measure also extends to 24 months the amount of time Cubans can remain abroad, and they can request an extension when that runs out. Currently, Cubans lose residency and other rights including social security and free health care and education after 11 months.

Still, the notice said Cuba plans to put limits on travel within unspecified sectors. Doctors, scientists, members of the military and others considered valuable parts of society currently face restrictions on travel to combat brain drain.

``The update to the migratory policy takes into account the right of the revolutionary State to defend itself from the interventionist and subversive plans of the US government and its allies,'' the note said. ``Therefore, measures will remain to preserve the human capital created by the Revolution in the face of the theft of talent applied by the powerful.''

Migration is a highly politicized issue in Cuba and beyond its borders. Under the ``wet foot, dry foot'' policy, the United States allows nearly all Cubans who reach its territory to remain.

Along with the announcement on migration, Granma published an editorial explaining the political significance of the measure, attributing it to the need to address the needs of the Cuban diaspora.

More than 1 million people of Cuban origin live in the United States, and thousands more are in Europe.

All about Michael Corbat, Citigroup's new Chief Executive Officer

2012-10-16T21:31:00.001+05:30

Michael L. Corbat the new Chief Executive Officer ofCitigroup with approximately 200 million customer accounts and activities in more than 160 countries and jurisdictions has been at Citi and its predecessor companies since his graduation from Harvard Universitywith a bachelor's degree in economics in 1983.

In his latest role as Citi's CEO of Europe, Middle East and Africa since the start of the year, he oversaw all of Citi's business operations in the region, including consumer banking, corporate and investment banking, securities and trading and private banking services.

Previously, Corbat served as the CEO of Citi Holdings, Citi's portfolio of non-core businesses and assets. In this role, he oversaw the divestiture of more than 40 businesses, including the IPO and sale of Citi's remaining stake in Primerica. Corbat also restructured Citi's consumer finance and retail partner cards businesses and divested more than $500 billion assets, reducing risk on the company's balance sheet and freeing up capital to invest in Citi's core banking business.

Corbat has previously served as the CEO of Citi's Global Wealth Management unit. Prior to this, he was Head of the Global Corporate Bank and GlobalCommercial Bank at Citi, a role in which he led the firm's efforts to provide financial services to top-tier multi-national corporations and financial institutions around the world. In his various advisory and structuring roles, Corbat has guided retail and institutional clients across the spectrum of financial services, from the bankruptcy of Orange County, California, to sovereign debt restructurings in Latin America and business restructurings in North America and Europe.

In addition, Corbat was the Head of Global Emerging Markets Debt, responsible for the origination, trading and sales of emerging markets fixed income debt. He also held a number of positions at Salomon Brothers, one of Citi's predecessor companies, including Managing Director roles in Emerging Markets, High Yield and Derivatives.

2012-10-16T15:55:00.002+05:30

HTC has launched its new smartphone Desire X in India at Rs 19,799. The phone has a 4-inch super LCD display with a resolution of 800 x 480 pixels. Weighing 114g with battery, the phone comes armed with a 1 GHz dual-core processor.

The phone runs Android 4.0 with HTC Sense 4.0a, and has an internal storage of 4GB. The expansion card slot supports micro SD memory card for additional storage. The phone has 768 MB RAM. or storage, HTC has integrated Dropbox in the Desire X with 25GB of free online storage for two years.

The HTC Desire X sports a 5 megapixel camera with auto focus, LED flash. It comes packed with a 1650 mAh battery. HTC unveiled this phone at the IFA 2012 event held in August in Berlin.

Robert Vadra shuts Facebook account after row over 'mango men in banana republic' post

2012-10-09T23:36:00.001+05:30

In his latest response to charges of corruption levelled against him by anti-corruption activists, Robert Vadra kicked up some more dust by writing on his Facebook: "Mango people (aam admi) in banana republic."

The activists hit back, saying Vadra - a small-town boy from Moradabad, whose middle-class family was in the business of artificial jewellery and brassware - owed people of the country an apology and an explanation for describing India as a banana republic. India Against Corruption member Kumar Vishwas demanded an apology from the son-in-law of Congress president, and National Advisory Council chairperson, Sonia Gandhi, over his 'mango people' remark.

As regards the 'banana republic' mention, Vishwas says Vadra owed people an explanation. "Vadra's mother-in-law has been ruling the country so he should explain why India is being called a banana republic ," Vishwas said.

A day after IAC's Arvind Kejriwal accused Vadra of receiving an interest free loan from DLF BSE -0.02 %and purchasing real estate property at throw away prices, Vadra had used his Facebook page to break his silence on the allegations made against him by Kejriwal. He had posted a message on the social networking site: "Thanks so much for your concern. I am fine and can handle all the negativity."

He further said, "( I have) lost people I loved, what can be worse" . Following Monday's ruckus over his latest postings on the 'aam admi' - the constituency made famous by Sonia Gandhi and the UPA government - Vadra shut down his account. For long, name-calling has been a lethal weapon in the country's political combat.

While political leaders in Congress, who defend the party president's son-in-law have been using labels - 'conspiracy hatched by Kejriwal's saffron friends' - Vadra opted for an urban slang, 'mango people.' This isn't the first time Vadra has embarrassed himself and the Gandhi family. During last year's Uttar Pradesh assembly polls, Vadra put his foot in his mouth, saying his wife Priyanka Vadra's "time would soon come."

"Abhi Rahul ka time chal raha hai, phir Priyanka ka time aayega, phir parivar ke doosre..." (This is Rahul Gandhi's (his brother-in-law ) time. After that will come Priyanka Gandhi's time - and also of other family members," he had said. Vadra had also claimed that he was under pressure to contest from Sultanpur.

According to him, he had to say a big no to party leaders because he was more interested in his business , workout regimen and his two children than politics. During the UP election, he had led motorcycle rallies and an IAS officer who dared stop him found himself coincidentally transferred out of Amethi.

Colgate hits its highest market share of 54.5% in 15 years

2012-10-09T23:33:00.003+05:30

In a hyper-competitive consumption-driven market like India, most virtual monopolies, from MarutiSuzuki to Nokia, have had to contend with steady erosion in market share over the years. Whilst the share of India's No 1 carmaker is today well below 50 per cent, the Finish handset manufacturer's leadership position is under constant threat from Samsung.

Against such a backdrop, one long-standing consumer brand has been not just holding on to its pole position but actually inching further head in its core category of oral care. In the first half of calendar year 2012, Colgate Palmolive India's market share in the toothpaste marketstood at 54.5 per cent, its highest since 1998, a rare instance of a market leader gaining new ground.

Aggressive marketing and a huge 32 per cent jump in advertising spend in the first quarter of fiscal year 2013 over a year ago coupled with a launch of new variants across consumer segments has helped the largely single-product company drive growth.

Analysts who met up with the company said the leadership team exuded confidence about its growth plans and medium to long-term strategy. Colgate's executive management team includes three women: along with managing director Prabha Parmeswaran, there are Sarala Menon, VP, customer service & logistics, and Rekha Rao, VP, marketing.

Colgate's India top team is publicity-averse - the company was unwilling to participate in this feature - and that may not be a bad thing for the brand. "The brand is not bigger than the leadership. Its leadership is anonymous yet the brand does exceedingly well in the market," says Jagdeep Kapoor, founder Samsika Marketing Consultants.

Unlike most virtual monopolies that typically have few competitors - think Google in internet search and ESPN in sports television in the US - Colgate's rise has been in a highly competitive market. The biggest threat to Colgate in India isHindustan Unilever Ltd BSE 1.46 % (HUL), which has put its might behind two brands, Close-Up and Pepsodent.

The other MNC in the game is GlaxoSmithKline Consumer Healthcare with Aquafresh and Sensodyne. Then, there are a clutch of domestic players, with Dabur leading the way with three brands on the ayurvedic platform plus the Promise label that it had acquired from Balsara in the mid-2000s. Other local brands that keep the big boys on their toes include Vicco and Anchor.

If Colgate has been able to stay convincingly ahead of the market, it's thanks to its ability to segment a category (including toothbrushes and mouthwashes) in which product differentiation is notoriously difficult to achieve.

With at least 10 extensions to the flagship Colgate Dental Cream (including a kids' toothpaste and a whitening product), one mouthwash (Plax), and a wide range of toothbrush extensions (including one with a flexible head and a cheek and tongue cleaner as well as battery toothbrush), Colgate has been able to make oral care account for over 80 per cent of its total sales.

Other categories in the Colgate portfolio include the Palmolive range of personal care products (body washes and hair gels) and dishwashing paste brand Axion.

Colgate has backed its extended product range with robust distribution clout. The essentially single-brand company has one of the widest networks, touching 4.5 million retail outlets in India."Colgate's sustained distribution strength, coupled with product innovation and creation of sub-categories such as mouthwash and sensitive oral care have helped it drive growth aggressively, explains Gautam Duggad, vice president, equity, at Motilal Oswal.

Analysts, however, warn that the HUL threat and forays like the first move by GSK in the sensitive teeth segment with Sensodyne - which forced Colgate to react with the Sensitive extension - will keep the leader on its toes. Also, if Procter & Gamble does eventually take the plunge into toothpastes by launching Crest in India, the competitive scenario could become more intense.

Cadbury India to be now known as Mondelez

2012-10-09T23:33:00.001+05:30

On October 3, 14 employees of MondelezInternational from five continents joined their chairman & CEO Irene Rosenfeld to be part of the opening bell ceremony at the Nasdaq stock exchange in New York to mark the second day of trading under the company's new ticker symbol MDLZ. One of those 14 was Nikhila Rangaswamy, VP for people & talent at the Indian operation, which till recently was known as Cadbury India and which is now migrating to the new identity.

In early 2010, Kraft Foods had acquired British candy maker Cadbury in a deal worth close to $19 billion. Then, on October 1, 2012, Kraft's snacks business - which includes brands such as Cadbury, Tang and Trident - was spun off into Mondelez; the flagship company will be left with the grocery portfolio, which includes such brands as Philadelphia cream cheese and Maxwell House coffee. Rangaswamy may have been part of the name-changing ceremony in the West - Rosenfeld also hosted her along with the remaining 13 for lunch the same day - but back home there's frenetic activity under way to make a seamless transition to the new platform.

Late last week, Cadbury India had an internal employee event across its head office, factories and sales offices at which employees were introduced to the new company, its vision and focus. Employees wearing purple Mondelez T shirts attended the event and Anand Kripalu, president, India and South East Asia, addressed employees across India through a video conference. The Mondelez theme song was played with the management and employees singing along and a cake was cut to mark the occasion. Employees contributed an item that was auctioned and the money collected for an NGO as part of the Joy of Giving Week celebrations; the 'joy' theme coincides with Mondelez's endeavour to offer "delicious moments of joy," explains a spokesperson for the Indian operation of the snacks giant.

"There will be no change whatsoever in the names of any of our products as Mondelez International is the overarching corporate identity and will ultimately appear on the back of the pack. There will be no change in branding practices for Cadbury in India," a company spokesperson said.

What the Indian operation is trying to convey is that the overarching brand name may have changed but what haven't the values and associations embedded in it. Market strategy consultant Rama Bijapurkar explains that brands are like people and, if a person changes her name -she has to tell her friends and acquaintances that she is the same person; only the name has changed. But Cadbury has to communicate this to consumers. "Change the name and you have to make a lot of special effort to convince everybody that nothing else has changed except the name," points out Bijapurkar.

A former head of Cadbury at a regional level who does not want to be names adds that "the monies being spent on India by Mondelez are getting bigger. I do not expect the Mondelez name change to make any difference to Cadbury's brand equity (for the worse), especially in Commonwealth countries."

Going for an interview? Non-verbal communication as important as verbal

2012-10-09T00:32:00.000+05:30

Bizxchange.Bureau

"Communication occurs when signals carry information-bearing messages between a source and a destination" - Robert M. Krauss, Columbia University. This can also be termed as verbal communication. On the other hand non-verbal communication is that process of communication where people exchange visual cues - for example: gestures, body language, eye contact, facial expression, etc.

Whether you are in a social gathering or in an interview, the combination of verbal and non-verbal communication is of utmost importance. On several occasions we tend to overlook the necessity of transmitting the right non-verbal signals and end up conveying wrong messages. This holds true during an interview process as well. According to BVM Rao, Head Human Resources at Shoppers Stop, "We always look at the candidate's balance between non-verbal and verbal communication while conducting an interview. Certain non-verbal signals such as eye contact and overall body language are very important in our recruitment process. If we find a candidate constantly rolling his eyes or fidgeting, we immediately know that he's lying. Therefore, there are other cues which indicate if the candidate is confident or otherwise."

For any recruiter it is crucial to keep in mind some of the basic non-verbal aspects. Shital Kakkar Mehra, Corporate Etiquette & Protocol consultant at Soft Skills International lays down some of these factors:

> Non-verbal first impression tools: The way you exchange cards, your handshake and eye contact - all create impact in the first few seconds of your interaction with the interviewers. Also, pay attention to your attire and accessories as they too send quick non-verbal signals.

> Posture: Although our sedentary lifestyles and constant use of technology gadgets have led to slouching and hunching for long hours, sitting/ standing upright during an interview signals - "I am confident" and "I am motivated to be with you", signaling interest.

> Fidgeting: Tapping your feet, drumming your fingers, doodling, touching your hair/ face - all conveys the same message "I would rather be somewhere else". Instead minimise your body language gestures so that the interviewers can focus on your words and not get distracted by your non-verbal signals.

> Physical space: People who are under-confident tend to shrink into their own bodies, reducing the space they take up physically and in the minds of their listeners. In an interview, sit confidently and use hand gesture.

In case if any of the above non-verbal signal requirement is not met, the interviewer goes for cross-questioning rounds with the candidates. "Over a period of time one can master the art of verbal communication. However, by putting the candidate in an uncomfortable zone through cross-questioning about past experience, recruiter can understand if the candidate is suited for the position," says Prakash Nahata, CEO, Anthroplace Consulting Pvt Ltd. He further adds, "In several cases we focus on the candidate's overall presentation - starting from the time they enter the office premise to the time he leaves the recruiter's room. Here, as the candidate remains unaware of our screening process to measure his non-verbal aptitude, we end up getting valued information about him."

Though the weightage between verbal and non-verbal communication varies in different organisations, it is important to strike a balance between the two for a successful communication process. Companies are becoming more careful in their candidate selection process and even after recruitment the employees are provided with ongoing communication training to enhance the customer interaction level.

How triple top & bottom patterns are formed in stock charts

2012-10-09T00:31:00.002+05:30

In the previous issue, we discussed the double top and double bottom reversal patterns. The double top formation is confirmed only when the bears pull the prices below the double top confirmation level (that is, the value of the previous bottom that occurred between two clear tops). The double top possibility is negated if the bulls hold on to this crucial support and manage to push the prices to higher levels again.

In this case, the price movement develops into some other chart pattern. Since the probability of this shaping up into a 'triple top pattern' is high, let us consider what this formation is. While the double top pattern is common, the triple top is rare. However, the latter generates a reliable sell signal, especially if the formation occurs after a big rally and is, therefore, worth studying.

Though the triple top pattern is similar to the double top, the main difference is that it has three distinctive tops. Once the bears fail to pull the prices below the double top confirmation level (B2), the bulls get an upper hand in the fight and push up the prices once again. If the bears are able to restrict this movement close to the price levels of the previous two tops (T1 and T1), this results in the formation of another top (T3).

Usually, the price then falls back to the previous support levels (B1 and B2). Since the three distinctive tops have already been formed, it is now called the 'triple top confirmation level'. Any decisive break below this support will confirm the triple top formation.

There are several other small differences between the double and triple tops. First, the tops in the case of the latter may not be as clearly and evenly spaced as in the case of a double top. The intervening valleys also may not occur exactly at the same levels, that is, the second one may be a bit smaller or higher compared with the first one.

In this case, the triple top confirmation happens only when the price falls below the 'lowest bottom' formed between these three peaks. However, the basic crowd psychology, that is, the bulls are not able to take the resistance area even after three consecutive attempts, increases the importance of this chart formation. Each failure adds weight to the indication of a possible reversal.

Trading rules

Since it is a very reliable reversal pattern, investors could sell their holdings once the formation is confirmed (that is, the price falls below the triple top confirmation level). Likewise, positional traders can also use the triple top formation to cover their long positions. The traders with high risk-taking ability may also consider shorting the counter to benefit from the expected price fall. As explained in the case of a double top, the target is calculated with the help of the height of the pattern.

The other rules of double top—there should be a medium-term rally before this formation, the pattern's height and width should be decent enough, the volume comes down in the later tops and increases at the time of a breakout—are applicable here also.

Variations

Since all these tops may not be exactly at the same levels, it is possible to have small variations in each of them. The most common variant among them is the one where the middle peak is significantly higher compared with the left and right peaks, which are at similar levels.

This common variant, called the head & shoulders pattern, is a powerful sell signal and, we shall consider it in detail the next time. In some other cases, the middle peak is slightly lower than the left and right peaks. Though there is no specific name given to this pattern, this is also a valid reversal pattern and investors/traders can use it to their advantage.

Triple bottom

The triple bottom pattern is identical to the that of the triple top, except that it occurs at the bottom (that is, it looks like an inverted triple top). There are three distinct bottoms (B1, B2 and B3) and the triple bottom confirmation occurs when the price goes above the tops (T1 and T1) that are formed between these bottoms.

Most of the rules associated with the triple top are applicable to the triple bottom as well. However, the one thing that investors/traders should be careful about is that the bottom formation usually takes a long time and, therefore, the triple bottom pattern is not as powerful as the triple top formation.

How to bypass office software rules

2012-10-09T00:30:00.003+05:30

PORTABLE APPS

www.portableapps.com

PortableApps is a free and open source solution for all your software needs. The idea is simple — with PortableApps, you can keep all your software and settings with you, even if you regularly switch computers or need to work on locked computers or with guest accounts. You can download individual apps or the PortableApps platform and run it from the local hard drive, from a USB drive, memory card, iPod, any generic MP3 player and even from cloud-based storage.

The PortableApps platform is not really required if you only need one or two apps, but it helps to integrate everything, keeps apps updated and helps find new apps. There are hundreds of free apps available on the Marketplace; everything from games to educational tools, software development, accessibility tools, office & productivity apps, security and multimedia playback.

WEB APPS

Microsoft Office

The web version of Microsoft Office lets you view and edit Word, Excel, PowerPoint and OneNote files that are stored in your SkyDrive cloud storage. Just log in using your Windows Live ID to access the user interface. You can also share your documents directly from within the interface and collaborate with others in real time. http://office.com/web-apps

Zoho Suite

Zoho offers a large suite of free web apps. On offer is a document editor, calendar, email and a planner along with various tools for collaboration and project management. They also offer a suite of business apps that allow website creation, finance management, report generation, invoice creation and HR management. www.zoho.com

Pixlr Image Editor

This webapp lets you upload an image from your computer, fetch it from a URL or create one from scratch. You can work with a file as large as 4000 x 4000 pixels in an interface inspired from Adobe's Photoshop. Also available is the adorable Pixlr o-matic (web app + Android/iOS app) which adds one-click retro effects to your photos. www.pixlr.com

PROGRAMS THAT DON'T NEED TO BE INSTALLED

Recuva

Recuva is an easy-to-use data recovery tool that can be run off a portable USB drive. It can scan hard drives, memory cards or even iPods to recover lost files. It can rebuild Word documents lost or corrupted due to a program crash and can even recover deleted email from most mail programs. www.piriform.com/recuva

InfraRecorder

InfraRecorder is a CD/DVD burning tool (Windows 7 only) that supports dual-layer DVDs, multi-session CD writing and also works with re-writable discs. It can be used to make video, audio or data discs, save a disc as an ISO image as well as make copies of a disc. http://infrarecorder.org

YamiPod

YamiPod is a free iPod manager (replacement for iTunes). It can be used in Windows, Mac or Linux and can be saved and run from the iPod itself. It works with multiple iPods on the same computer and it can also be used to remove duplicate tracks and find lost music. www.yamipod.com

USE THESE AS BROWSER ADD-ONS

LastPass

Too many passwords to remember? This password manager works with Firefox, Chrome & Opera — it even syncs data across them. Login with one master password to access all your passwords. Your master password can also be programmed to work with frequently accessed sites; the program will automatically log you in using the stored password.

Aviary Tools

Available for Firefox and Chrome, Aviary Tools is a suite of addons that includes a multi-format image editor, audio editor and a screen capture tool. Each add-on can also be installed as a standalone product. The image editor is particularly versatile, with support for layers, masks, brushes & the ability to import images directly from places like Flickr, Picasa & FaceBook.

SlideRocket

This Chrome extension is a complete PowerPoint replacement — you can create a presentation within your browser. There are multiple templates to choose from along with the option to upload images, audio or video from your computer. A work in progress can also be shared with others for collaboration. Once finished, it can be exported as a PowerPoint file or PDF.

Air navigation system GAGAN to help Jet Airways, Indian Airlines, others to cut fuel cost by upto 20%

2012-10-09T00:29:00.002+05:30

There are many reasons for Indian airlines, a perpetually struggling lot, to be hopeful: more foreign funding, more overseas routes and cheaper oil. Yet, more than all this, what could embellish the bottom line of Indian carriers next year is a new navigation system in Indian skies that, its makers say, will knock off 20% of the fuel bill of airlines and increase air traffic.

The effect can be potent as fuel costs swallow about 50% of an airline's revenues. At 20% savings, a crude calculation on 2011-12 numbers shows that Jet Airways BSE -1.28 % would have turned a Rs 1,236 crore loss into a Rs 90 crore profit, and SpiceJet BSE -0.94 % would have shaved off Rs 439 crore of its Rs 605 crore loss. And if Kingfisher BSE -4.91 % hadn't since gone into a freefall, even it would have knocked off Rs 589 crore of its Rs 651 crore loss for the year.

Here's how. Today, when an aircraft takes off in Indian skies, it doesn't trace a straight vertical line to a cruising height. It, instead, rises in fits and starts, with bursts of acceleration. Likewise, between two destinations, it doesn't trace the straight line -- the shortest distance. It, instead, zigs and zags.

Both manoeuvres mean airlines end up burning more fuel than ideal because current Indian air-navigation systems don't allow for the greater accuracy and surety available in some other parts of the world. This is set to change in July, 2013, when the Airports Authority of India (AAI) launches GPS-aided GEO augmented navigation system (GAGAN). "Airlines can save 20% on their fuel costs," reckons S Sundara Raman, executive director (communication, navigation & surveillance), AAI.

Also Read:
Surf internet while flying

Straighter Routes

GAGAN will catapult India into an elite league in air navigation: this is only the fourth such system in the world, after that of the US, European Union and Japan (see graphic). "It's an eye in the sky," says Amber Dubey partner, aviation, KPMG. "With ground-based systems (the current system), there's a need to have systems at every few kilometre. Here, one satellite tracks everything, and far more accurately."

GAGAN is a superior version of the current GPS system: it can detect activity at a finer level. So, while aircraft in India currently keep a distance of 80-100 miles, GAGAN will reduce this to 30 miles. This will allow thrice as many planes to fly, and reduce congestion on busy routes, as well as make Indian skies safer. Raman expects a six-fold increase in time. He also estimates airlines to reduce their flying time on the Delhi-Mumbai route by 10 minutes.

A senior SpiceJet technical official, speaking on the condition of anonymity, confirms that airlines don't take a straight line between two destinations. "We take pre-determined routes set by the air traffic control centre. For example, between Delhi and Bangalore, we have to take a detour over Bhopal and do a series of deviations that add up to a much longer route," he says. "After GAGAN, we will have what is called 'freedom flights', leading to reduced fuel burn by 18-20%."

GAGAN will also make Indian skies safer. For example, while landing, the current system gives an aircraft the coordinates of a landing strip in a range of 20 metres. By comparison, GAGAN will give it in a range of 20 feet, thus reducing the possibility of human error. The signals on GAGAN will be beamed by three satellites of the Indian Space Research Organisation (ISRO), located at a height of about 36,000 km. Two of these satellites have been launched. A third one is expected to be launched in 2013.

Fifteen ground stations in India, being set up by US-based defence technology company Raytheon, will back the three satellites. "The certification by the Directorate General of Civil Aviation (DGCA, the aviation regulator) is scheduled soon after completion of the operational testing performed by AAI in 2013," says William L Blair, president, Raytheon India.

The fourth partner in the project is Mitre Corporation, another American engineering and technology company that is doing the certification of the AAI equipment, something it had done for the corresponding American system.

More Air Traffic

Besides boosting the financial numbers of airlines, GAGAN will also help Airports Authority of India (AAI). In 2010-11, the latest period for which its financials are available, AAI earned 65% of its Rs 5,139 crore revenues from air-navigation services.

Basically, AAI charges every plane flying over Indian air space, even those that don't land on it. Raman says AAI expects to treble its revenues from air-navigation services by 2015, riding on GAGAN. "About 8-12% of the operating cost of an airline goes to air-navigation charges," says Dubey of KPMG.

As can be seen by its circle of influence in the world map in the graphic, GAGAN can position itself as an alternative to the Japanese MSAS system for airlines flying between Australia/Asia and Europe. That's the pitch AAI plans to make.

"We would attract foreign airlines flying from the Gulf to Europe to use our more efficient airspace after the GAGAN rollout. This will boost our revenues considerably," says Raman. "We may even plough back the greater revenues and lower charges to draw more aircraft traffic."

According to Raman, AAI has drafted a memorandum of understanding with all Asia-Pacific countries so that their airlines can use Indian air space. Also, in order to provide a continuous corridor on GAGAN, AAI is talking to its counterparts in Pakistan and Afghanistan, through the ministry of external affairs, to install ground stations in those countries.

GAGAN can also be used for wide range of applications in surveying and mapping, disaster management, transport and mining. For example, it can alert a regulator to mining activity outside a lease area. Those other uses will follow in time. First off, it will be Indian airlines who will tap GAGAn --- profitably.

10 less-known but awesome Google products

2012-10-09T00:27:00.003+05:30

Cookin with Google

This customised search lets you find recipes from across the world. Through this page, Google will only search through food sites that provide recipes and remove useless links that just have the search terms mentioned. The results you get can be further filtered using various heads — special recipes for diabetics, low-fat recipes, for vegetarians for weight watchers and so on.
http://goo.gl/0oCea

Navigation & Traffic

Google latest update for Android devices adds voice guided, turn-by-turn navigation for India. It can be accessed via Google Maps or via the dedicated navigation app on some phones. However, Google Navigationalso shows live traffic information for select cities in India — displayed using colours (red for heavy, yellow for moderate and green for free). Accordingly, the app can also suggest a reroute — the best possible way to reach your destination and avoid traffic. Google's live traffic information can be viewed on a desktop browser as well.

Hangout

Hangout is Google's free group video chat service. It allows up to 10 people to simultaneously video chat via their desktop, phone or tablets. It automatically detects who is speaking and shows him/her in the main window. Within Hangout, you can share screens with others or collaborate on Google Docs. Hangout also lets you publicly broadcast a chat on your Google Plus profile or YouTube channel.http://plus.google.com/hangouts

Map Maker

Google Map Maker lets you update Google Maps & Google Earth data of over 200 countries with relevant information. You can add new places, edit details of existing places or review information submitted by other users. The changes made by you will be reviewed by moderators — once approved, they will get added and accessible to anyone in the world.
www.google.com/mapmaker

WebMasters

Everyone wants their own website to get a higher Google rank, but its far more complicated than it sounds — terms like site indexing, ranking and search engine optimisation are often bandied about. Google has a free service called 'Webmasters' that helps you understand how Google views and ranks your website, identifies problems in accessing it, provides tips on how to improve your website's visibility and generates free and detailed traffic and analysis reports.
www.google.com/webmasters

Moderator

Moderator is an open forum by Google where anyone can initiate a discussion about anything. Once you submit a question or start a topic, other users vote if the question or idea is good or not. Visitors can also post comments or questions in the discussion, which can also be voted upon, marked as useful or flagged as inappropriate. You can share an entire discussion or a specific comment via email, Facebook, Twitter or Google Plus to elicit more responses.
www.google.com/moderator

Schemer

Schemer is a service that allows you to make a list of activities to do around you (according to your interests). You can add friends (called accomplices) to your schemer account and it will automatically find and recommend common activites that you and your friends can do. You can also browse schemes recommended by people for various places and add those to your list.
www.schemer.com

Google allows you to use its various applications via SMS. For instance, you can search the web for news, cricket scores, or movies by just sending an SMS to 9773300000 — you'll get the results as an SMS. You can also register your phone with Google Calendar to receive SMS notifications for upcoming events. The service is great for feature phones or when you have limited data connectivity.

Scholar

This is a customised search for articles, theses, books, court opinions and other documents. It can help you with locating the entire document on the web if available, and articles are ranked according to quality of content, the author and how often has it been used as a reference in other documents.
http://scholar.google.com

Account Activity

Worried about where and how you are spending time on the Internet? Google now offers a detailed report on your account usage for various Google products. You just need to register for the service and Google will generate a report, including details on email, YouTube, search history — and then mail it to you.
http://goo.gl/niMGv

THE GOOGLE DOODLE ARCHIVE