Xed Marketing Newsletter Week July07 July13

8/4/2019 Xed Marketing Newsletter Week July07 July13

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11 Pages 07th JULY 2011 13th JULY 2011 www.xedintellect.com

BUSINESS NEWS

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

INTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

NEWS DIGEST

IN BRIEF

PERSONALITIES OF TH

WEEK

COMPILED BY

GLOBAL AVATION

INDUSTRY

BSE SENSEX 18,717

NSE NIFTY 5,630

RS/$ 44.52

(as on 14th

July 2011)

ECONOMICINDICATOR

Maruti to launch

new version Of

Swift hatchback

COVER STORY

MARKETING NEWS

HP sees explosive

printer market

growth in India

INTERNATIONAL & MISC

NEWS

U.S. Considers

Adding Sound to

Electric Cars

XED NEWSLETTER a weekly news bulletin

COVER STORY: AN URGENT ALTERNATIVE


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TOP 10 HEADLINES OF THE WEEK

1. Maruti to launch new version Of Swift hatchback.2. Cadbury's UK forces name change on Pune Co.3. Three Oberoi hotels ranked 5th, 8th and 14th in world.4. 8 Indian cos among world's 500 largest corporations: Fortune.5. Infosys no longer leads the Indian IT sector.6. 100 Cos Sit on a Big Stack of Cash.7. U.S. Considers Adding Sound to Electric Cars.8. Britain's News of the World hits the newsstands for the last time.9. Maran Steps Down, DMK Stain Darkens.10.Mint-fresh: new series of coins launched with latest rupee symbol.

ECONOMIC INDICATORS

CORRUPTION PERCEPTION INDEX

Since 1995, Transparency International (TI)has published an Annual CorruptionPerceptions Index (CPI) ordering thecountries of the world according to "thedegree to which corruption is perceived toexist among public officials and politicians"The organization defines corruption as "theabuse of entrusted power for private gain".

The 2010 Corruption Perceptions Index is based on 13independent surveys. However, not all surveys include allcountries. A higher score means less (perceived) corruption. Theresults show seven out of every ten countries (and nine out ofevery ten developing countries) with an index of fewer than 5points out of 10

Stock Market Indices as on 14thJuly11 Values

BSE SENSEX 18,717

NSE (NIFTY) 5,630

Current Market Rates as on 14thJuly11 Values

Rupee/US Dollar 44.52

Rupee/Euro 63.15


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COVER STORY: AN URGENT ALTERNATIVE

Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sourceswithout the undesired consequences of the replaced fuels such as high CO 2 emissions, considered to be the majocontributing factor of global warming. With carbon emissions being priced in the form of carbon credits, there is nowan even more urgent need to find an alternative to fossil fuels.

Why such rush:Take a look at the statistics and you will know why. In India oil and gasconsumption is growing at a compound annual growth rate of 6.5% and equals over 195mntonne of oil equivalent. Global average energy demand will increase from current levels of

1,818 kg of oil equivalent (KGOE) per person to 4,228 kg per person in the next twodecades. The recent release of 60mn barrels of oil by US will artificially lower oil price &measures like this could be seen as one more reason to shy away from seemingly costlieralternative energy and sticking to conventional sources. Unfortunately, over the long term,oil prices will almost certainly continue to rise. Then we eventually will need alternative fuels.

Investing in alternative energy:In general there are three sub segments of alternative energy investment: solarenergy, wind energy and hybrid electric vehicles. Each of these three segments involves very different technologiesand investment concerns.

Photovoltaic solar energy is based on semiconductor processing and accordingly, benefits from steep cost reductionsin the microprocessor industry. Economics of wind energy is determined by how hard the wind blows and the gridinvestment requirement and the prices of steel. Complications in manufacturing wind turbines which are often tallerthan 100 meters mean that logistics and a global manufacturing platform are major sources of competitive advantage.

Hybrid and battery electric vehicles are commercially available and are gaining wider industry and consumeracceptance worldwide. For example, Nissan USA introduced the world's first mass-production Electric Vehicle "NissanLeaf".

Where is the hurdle? Switching to alternative energy sources is not all without pain. It has its own cost.Lets assume we switch to natural gas from coal. It would require substantial investments inpipeline storage, storage capacity and new terminals to process imported natural gas. Now ifwe consider solar panels, their efficiency is generally low, around 10-15%. For a householdsupply of lets say 100KWHs, solar panels on at least 400 square meters of land are need edWind energy is a clean fuel. However, it does cause significant amount of noise pollution.Biomass is a good alternative to using fossil fuels but it ends up doing the same thing as fossifuels, that is, emitting CO2 and greenhouse gases on combustion.

Proponents even while agreeing to its serious environmental after effects say these energy

demands can be satisfied by nuclear energy. After all given a choice between freezing in the dark and burninghydrocarbons human beings will choose the later. Immediate personal needs always trump long term societal goalsespecially fuzzy green goals.

Where India stands:India would need investments of about $600bn across various segments of the hydrocarbonchain in next two decades to take care of its energy requirements. Currently with more than 70% share in the totarenewable energy capacity, wind energy has a lions share. The dominance of wind is expected to continue during atleast the 12th plan, in which the government is planning to install 11,200 MW out of 18,700 MW total renewableenergy capacity. The government wants to take power generation through solar means to 16,000 MW during the 13 t

plan target. It plans to spend an estimated US$175 bn to buy an additional 21 foreign reactors to reach a nuclearpower capacity of 63,000 megawatts by 2032, from the current level of 4,560 megawatts. More than 70%investment in the sector has come from private players. In the future too, the private sector is expected to leadinvestments in this sector. At normative costs, investment requirements in the 12th and the 13th plans for capacityaddition are expected to be Rs 1,46,000 Cr and Rs 2,65,000 Cr respectively.

Nuclear concerns: With growing acceptance that nuclear energy is the desirable alternativeenergy source to fall back upon, India finds itself in trouble. The new Nuclear SuppliersGroup guidelines seem to underscore that the transfer of sensitive exports of enrichment andreprocessing technologies (ENR) technologies will exclude nations which are not signatories tothe Non proliferation Treaty (NPT) and do not have full-scope safeguards. This appears to bein violation with the crucial waiver granted to India as per the 123 agreement.

Task cut out:Even though the need is not imminent, it is very much visible. The gradualshift to alternative energy, specifically, nuclear energy is the way to go. Japans nuclear crisisshould be considered a lesson hard learned for the safe use of nuclear energy rather than asan excuse to make it taboo. After all, when push comes to shove its the most viable technology available to us andwe might not have a choice but to sign a pact with the nuclear devil.


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PERSONALTIES OF THE WEEK

MAHENDRA SINGH DHONI: An Astute LeaderA fluke can happen once or twice but definitely not again and again. 20-20 World Cup, IPL,Champions Trophy, Asia Cup, World Cup, Worlds No.1 Test playing team, Worlds second bestlimited over team all of them couldnt surely have happened due to consistent strokes ofluck. Dhoni's success is proof of the difference between instinct and luck. Dhoni's instincts staysharp because he is calm, and a calm opponent is the most dangerous opponent.

Early Life: This Cricketing Rajput was born in Ranchi to Pan Singh and Devaki Devi. He

studied at DAV Jawahar Vidya Mandir, Shyamli. His journey to become a star cricketer startedfrom there. He initially excelled in badminton and football and was selected at district and clublevel in these sports. Later his football coach inspired him to play cricket and he focused oncricket after his 10th standard.

On Field: His journey started with Bihar U19 squad for the 1998/99 season and he made his Ranji Trophy debut forBihar in the 1999/00 season as an eighteen year old boy. He was recognized for his efforts in the 2003/04 season,especially in the ODI format and was picked for India A squad for a tour of Zimbabwe and Kenya. As Right handedbatsman and Wicket Keeper, Dhoni scored 183 against Sri Lanka for the highest score made by anyone in the secondinnings in ODI matches. He became the first wicket keeper to have ever led India in Tests.

Awards & Endorsements:Dhoni received Rajiv Gandhi Khel Ratna and Indias fourth highest civilian honor, PadmaShri in 2009. TIME magazine included him in the list of 100 most influential people in 2011. According to theSportsPro magazine Dhoni is 10th most valuable sports brand worldwide and number 1 among Asian sport-stars

Currently Dhoni has 20 endorsements, only Shahrukh Khan has more (21). He was contracted by the Chennai SuperKings for 1.5 Million USD. This made him the most expensive player in the IPL for the first season. In July 2010, Dhonitied up with Rhiti Sports Management and Mindscapes and has been promised a minimum guarantee of Rs 210 croreover the next three years.

Leadership Style:A bigger stage invariably brings out the best in champions. Dhoni is a winner and certainly achamp.He is the only captain in the world to have tasted success in all formats of the game, and that too in just fouryears. Intuitive decision-making is based on identifying organized patterns and underlying structures in ourexperience. MSD's ability to read the game and the weaknesses of his opponents, more than compensates for the lackof major pre-match brainstorming.

ADITYA VIKRAM BIRLA: An epitome of prominenceA formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a globalbusiness empire at the age of 24. He was the first to put Indian business on the world map,as far back as 1969, long before globalization became a buzzword in India. He had foreseenthe winds of change and staked the future of his business on a competitive, free marketdriven economy order. He set up 19 companies outside India, in Thailand, Malaysia,Indonesia, the Philippines and Egypt. He believed that a business could be global even whilstbeing based in India.

Aditya Birla was born on 14 November 1943 in Kolkata to industrialist Basant Kumar andSarala Birla. After college in Kolkata, Birla earned a degree in chemical engineering at theMassachusetts Institute of Technology. He was married to Rajashri and had a daughterVasavadatta and a son Kumar Mangalam,who now heads the Aditya Birla Group.

Career Progression: After returning to India in 1965, Birla struck out on his own intextiles. Under his stewardship, his companies rose to be the world's largest producer of viscose staple fiber & thelargest refiner of palm oil. In India, they attained the status of the largest single producer of viscose filament yarn,apart from being a producer of cement, grey cement and rayon grade pulp. The Group is also the largest producer ofaluminum in the private sector, the lowest first cost producers in the world and the only producer of linen in thetextile industry in India. With this outstanding record of enterprise, he helped create enormous wealth for the nation,and respect for Indian entrepreneurship in South East Asia.

Professional Accolades: Besides giving name to one of the largest industrial empires in India, Aditya Birla served asthe director of Reserve Bank of India, Air India, and The India Fund.

Legacy: Aditya Birla passed away suddenly, aged 51, in Baltimore on 1st October, 1995, owing to prostrate cancerIn memory of him, the Aditya Vikram Birla Kalashikar Puraskar is awarded to painters and sculptors and a scholarshipto recognize and award fresh talent and potential future leaders from prestigious institutes in India. He would alwaysbe remembered for creating India's first global corporation.
http://en.wikipedia.org/wiki/Chemical_engineeringhttp://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttp://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technologyhttp://en.wikipedia.org/wiki/Chemical_engineering


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BUSINESS NEWS

1) Maruti to launch new version Of Swift hatchback-ET 8 JulyMaruti has stopped the production of its highly selling premium hatchback Swift. This hasbeen done to make way for the new Swift, which will be launched in late August or earlySeptember. The Swift was first unveiled by Suzuki in 2005 with a sporty sub-compactdesign.

Maruti has codenamed the new Swift as YP8 and its trial runs are on in the Manesarplant. Maruti currently sells close to 5000 Swifts every month and the car when launched in

2005 had changed the whole face of the India's hatchback B to B+ segment. Suzuki hadsaid that the new 3rd generation Swift has an improved design, safety, fuel consumptionand CO2 emission.

2) Cadbury's UK forces name change on Pune co- ET 8 JulyGlobal majors track their brands closely, as Cad B, a Pune-headquartered chain of chocolatebased eats and drinks was found. The chain, with a presence in 35 cities, has changed itsname to Cafe Chokolade, following a stay obtained by Cadbury's UK from the Bombay HighCourt. Apart from the name change, the chain has increased its product portfolio to includeice creams with plans to add cakes.

3) Three Oberoi hotels ranked 5th, 8th, 14th in world- IANS 8 JulyThree Oberoi hotels have been ranked fifth, eighth and 14th in the world by globamagazine Travel+Leisure. The Oberoi Udaivilas, Udaipur; The Oberoi Rajvilas, Jaipur

and The Oberoi Amarvilas, Agra, which achieved the distinction, were ranked first,third and fourth in Asia in the magazine's World's Best Awards 2011 Reader's Poll.

The Oberoi, Mumbai, and The Oberoi, New Delhi, have also been ranked amongst thetop city hotels in Asia, a statement from the hotel group said. Mena House Oberoi hasbeen ranked the 8th best city hotel in Africa, the statement added. "Travel+Leisure'sWorld's Best Awards are amongst the most prestigious in the international trave

industry as it is the readers who define excellence in hospitality and travel.

4) 8 Indian cos among world's 500 largest corporations: Fortune- ET 12 JulyEight Indian companies have made the cut in the list of world's 500 largest companiescompiled by Fortune magazine, with Indian Oil finding a place in the top 100and Reliance Industries in 134th spot. Out of the eight, five are state-run entities.Indian Oil has cornered the 98th spot, up from 125th place last year.

Mukesh Ambani-led Reliance Industries has also improved its ranking from previousyear's 175. Other Indian companies in the list are Bharat Petroleum(271), State Bankof India (291), Hindustan Petroleum (335), Tata Motors (358), ONGC (360) and TataSteel(369). Fortune's global list of world's 500 largest companies for 2011, compiledon the basis of latest annual revenue figures, is topped by retail giant Wal-MartStores. The retailer had annual revenues of USD 421,849 million. The list features 61Chinese companies.

5) Infosys no longer leads the Indian IT sector- ET 13 JulyQuestions have been raised on Infosys strategy as TCS, HCL & Cognizantperform better than Infosy. Infosys dismal first-quarter performance againsthe backdrop of a strong global demand for IT outsourcing is a reaffirmationthat Indias second-largest software exporter viewed as an industry bellwether,

no longer represents the broader trends in the sector. After the turnaround indemand six quarters ago, TCS Infosys closest peer and the countrys largestIT player has reported a faster growth rate.

In the two years ended March 2011, which encompass the period of recoverysales and operating profit of TCS grew by 10% and 16%, respectively, on acompounded basis. The corresponding numbers for Infosys were 8% and8.1%, respectively. This raises serious questions over the strategies thatInfosys embarked upon and the business proposition it employed to cater tothe fresh demand that emerged after the subprime crisis. What marked ou

Infosys from its peers was the way it built an enviable war chest in the form of a humongous cash pile by protectingoperating margins. In contrast, its peers focused on opportunities to invest in organic as well as inorganic growthwhile settling for lower margins in the near term.


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6) 100 Cos Sit on a Big Stack of Cash- ET 12 JulyTotal cash with companies in the BSE 500 index, has risen 17% in the past fiscal thoughthe number of cash-rich companies has fallen to 100 from 116 a year earlier, a study byET Intelligence Group shows. A fifth of Bombay Stock Exchanges 500 constituents,including state run Bharat Heavy Electricals and Lakshmi Machine Works, are sittingatop huge cash piles, thanks to prudent business practices that filled their coffers whenthe rest are squeezed by rising cost of funds.

Total cash with companies in the BSE 500 index, which represents 93% of the totalmarket capitalisation of BSE shares, has risen 17% in the past fiscal, though the

number of cash-rich companies has fallen to 100 from 116 a year earlier, a study by ETIntelligence Group shows. The myth that most capital goods manufacturers areburdened with debt and higher funding costs in times of rising interest rates is alsoshattered with BHEL, Bharat Electronics, Siemens and Alstom Projects drawing comfort from their fat cash reserves.

7) Govt paralysis forcing Indians to invest abroad, says Deepak Parekh- TNN 7 JulyHere's an economy that's growing at close to 8%plus a huge marketat a time whenthe US and Europe are struggling with creaking growth, growing unemployment andrising debt; and yet the buzz across boardrooms is that investing abroad is "at leastheadache-free". They complain about frustrating delays in government approvals at allevels, primarily those related to land acquisition and the environment.

HDFC chairman Deepak Parekh, told TOI, "I have been told by several large industriahouses that they are now looking at investing abroad as it's much easier. Their aim or

strategy is to now have 50% of their turnover from abroad. He said that, It is just lackof decision by bureaucrats and politicians. The media has created so much of a scare that honest people are scared totake a decision. There is total paralysis in policy. My hope is that there is this ministerial and bureaucratic change thathas happened and is happening and this will lead to quicker and more transparent decision making.

8) Websites offering specialist medical opinion a hit with patients- ET 7JulyAs people increasingly take healthcare into their own hands, companies such as MediAngelsare sensing a business opportunity. "We'd like to put power in the hands of the consumer,"said Debraj Shome, a plastic surgeon and co-founder of MediAngels. "In my own practice Ihave found that 30% of patients want a second opinion and this jumps to 80% when itcomes to surgery." Shome said 300 super-specialists have made themselves available toanswer patient queries on the MediAngels website. In India, there is one doctor for every1,588 people. Companies such as MediAngels and Bangalore's Rx HealthCare-Magic, anonline health service founded three years ago, think they have some technology-enabled

answers.

9) Kingfisher Fin, UB Holdings pledge stake- Financial Express 7 JulyVijay Mallya-led United Breweries (Holdings) and its subsidiary Kingfisher Finvest Indiahave pledged their entire stake of 272 million shares in Kingfisher Airlines, thecompanies said. UB Holdings, the holding company of the UB Group that has interestsin liquor and aviation, pledged all of its 199.59 million shares in the airline, which is40.10% of the total number of outstanding shares of the company. Meanwhile,Kingfisher Finvest has pledged its stake of 63.47 million shares that amounted to 25%of the total number of outstanding shares of the company. UB Holdings had pledged 86million shares prior to this while Kingfisher Finvest had pledged 61 million shares. Thepledging of shares comes even as Kingfisher's plans to raise over $250 million through

global depository receipts earlier this year have been delayed, and a few months after the airline implemented a debtrecast plan.

10) RIM loses 1m BlackBerry users in US while Android and Apple boom- The Guardian 7 JulyComScore data shows that nearly one in three US mobile users now has smartphone,with Android and Apple taking two-thirds of share but RIM, Microsoft and Palm arelosers. BlackBerry-maker RIM lost more than 1 million users in the US in the threemonths to May, as Google's Android platform cemented its lead as the most-usedsmart-phone platform there and Apple gained more than 3 million users, according tonew statistics from market research company ComScore.

The data suggest that the Microsoft platform principally the ageing Windows Mobile lost 860,000 users. Palm, which last produced a phone nearly two years ago, dropped from 1.93 million to 1.84million users, according to the data. RIM in its last quarter, to the end of May, reported a 9.6% fall in profits despiterevenues up nearly 16% year-on-year, and a dramatic fall in the average selling price of its devices.


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11) Indian IT Cos Lobby to Jump US Firewall- TOI 8 JulyLobbying has been a taboo for Indias wildly successful software companies: thatdistasteful activity was supposed to be the preserve of those looking to prosper from thelicense permit raj. But now, in the home of free market capitalism, as their encounters withdisguised protectionism grow more frequent, the L word does not appear so dirty anymore.

That is why, while America keeps inventing reasons to make it harder for them to dobusiness. Many Indian software companies are spending large sums hiring professionahelp to win friends and influence people in their biggest market. At stake is over $30

billion (. 1.3 lakh crore) in business every year, about half of Indias total outsourcingrevenue. Among the companies mounting an aggressive PR effort is Wipro. BetweenJanuary and March this year, Wipro spent nearly $60,000 (. 27 lakh) to lobby lawmakersand other officials about restrictive visa rules and policies that favor locacompanies. Indian tech firms are not alone in trying to explain why broader immigrationreforms are needed for America, top US software companies including Microsoft, Google,HP and IBM lead the lobbying efforts.

12) Global gaming to cross $74b by yearend- Financial Chronicle 7 JulyGlobal IT research and advisory firm Gartner expects the gaming ecosystem to witnessa spending of $112 billion by 2015 and exceed $74 billion in 2011, up by 10.4 per cent over2010 spending of $67 billion. The agency also estimates the gaming industry to undergomajor technology and business model transitions. The agency estimates the gaming softwarecomponent to represent $44.7 billion in 2011, dominating the overall gaming market during

this period as it absorbs almost two-thirds of consumers gaming budgets.

Within the gaming software market, mobile gaming will experience the largest growthopportunity with its share growing from 15 per cent in 2010 to 20 per cent in 2015.

13) Cheaper electricity to help power companies restart sick units- ET 9 JulyPower exchanges are flush with electricity, which is available cheap as low as Rs 1.50 peunit at night and industrialists are lapping it up to restart sick units, introduce night shifts,and retire diesel-fired backup units where costs are as high as Rs 11 per unit. Several steel,textiles and cement mills are buying power from exchanges, particularly in Punjab and TamiNadu, where state governments have adopted favorable policies of "open access", or thechoice to buy electricity from sources other than state distribution utilities. Customers arealso queuing up in industrialized states like Gujarat, where Nirma, Arvind Mills and DishmanPharma are awaiting regulatory approvals to start buying power from exchanges.

Officials say the average per unit cost of electricity in the open market has come down to Rs3 from Rs 10 about a year ago as there is surplus power in the system because of low offtake by state utilities. As a result, factories were either shut down or were operating for 2-3

days a week are running round the clock now. But state utilities, having enjoyed a monopoly for decades, are tryingto protect their own turf.

14) India Aims to Seek Parliament OK for Companies Bill- WSJ 8 JulyIndia plans to soon seek parliament's approval for a new companies bill that wouldreplace some of the archaic laws and help boost investors' confidence as the SouthAsian nation stresses on sprucing its corporate governance image. The federal cabinetis likely to discuss the new bill by July-end, the corporate affairs ministry said Friday,adding that it plans to introduce the bill in parliament in the session that begins Aug 1.

The proposed law, which would replace the Companies Act of 1956, seeks to strengtheninvestors' rights against the management of companies and proposes to introduce theconcept of class-action lawsuit in India. It also proposes to tighten the laws for raisingmoney from the public and seeks to prohibit insider trading by company directors or key managerial personnel bytreating such activities as a criminal offence.

15) Tech firms told to cut rates up to 15% - TOI 11 JulyAs US firms struggle with rising oil prices & weak demand, they force Indian IT vendors to reducebilling rates by 15%. Indian tech firms are being asked by top outsourcing customers to reducerates for back office and software work by up to 15%, threatening to erode their high profitmargins. As Americas top outsourcing customers aim to restore profits amid rising oil prices andweak consumer demand, they are asking Indian tech firms to do more with less billing rates foback office, software development and maintenance projects are already down by up to 15%.


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16) Mukesh Ambani calls for adopting Indianised approach for CSR-ET 11 JulyReliance Industries' Chairman Mukesh Ambani today asked Indian corporate houses toadopt a new business model which should be measured on "social returns together withfinancial returns", while imbibing the country's ethos and value systems. "Businesses willnot only have to act as the trustees of their shareholders or owners but will also have tocare for the society by the virtue of the license given to them by the society itself. Thebusinesses should be measured on social returns together with financial returns," he said.

Advocating for an Indianised approach towards CSR initiatives, he further said that thebusiness houses need to adopt an Indianised approach, incorporating Indian ethos and

value systems. "We will have to move from the model of CSR to a model of continuoussocial business through enterprise and entrepreneurship where societal needs and gaps are seen as duties as opposedto just business opportunities," the RIL Chairman said.

17) Cos Burn the Candle at Both Ends to Erase Stress Marks- ET 12 JulyTech cos use counselors, flexi-time, job rotation, paid sabbaticals, recreation time & allowemployees to say no to targets, to cope with burn outs. Clinical psychologists like SugamRamesh, who is attached to Bangalores Apollo Clinic, attest to an increase in executiveburnout cases in recent years.

Concerned about their employees' well-being and productivity, many are trying to putsafeguards and anti-stress and anti-burnout measures in place. So, in the last 18 months,managers at Wipro have been urged to make one thing clear to their US clients: every sixmonths, about one-third of employees on a project, would be replaced with a different set of

people. The idea, Wipros senior executives say, is to give the staff a breather from working onconstant night shifts.

18) GPS on trucks carrying grains- The Hindu Business Line 10 JulyAfter the success of pilot project to check diversion of subsidized food-grains by installingGPS devices on trucks ferrying foodgrains to ration shops in Tamil Nadu and Chhattisgarh,the Centre has sought proposals from other states for implementing the system.

The Centre provides Rs 15,000 for installation and maintenance of GPS (Global PositioningSystem) on each truck, sources said.The fund is made available under the scheme named

Innovative methods in PDS scheme'. The installation of GPS is also aimed at ensuring timelydelivery of foodgrains at fair price shops, the sources added.

19) Bihar becoming major milk producer- ET 10 July

Bihar, which until recently was dependent on milk supply from Punjab and Andhra Pradesh tomeet its domestic consumption, is turning out to be a frontline state in milk production. Bihafarmers now supplying 14 lakh liters per day (LLPD). The figure was just 2.8 LLPD in 2000. Ittargets 32 LLPD by 2021. Bihar is among first 10 leading milk producing state of the countrytoday. Bihar is among first 10 leading milk producing state of the country today.

State Agriculture minister Narendra Singh attributed the success story to progressive approach ofthe Nitish Kumar government which is according top priority to farm sector including dairy. Thestate government is providing various incentives to the farmers, including subsidized feed andfodder and 30 per cent subsidy on purchase of animals among other things, to promote milk

output in the state, he added. Out of 11 lakh litre of milk procured daily, the state is sending around 3.5 lakh litre ofprocessed milk everyday to Mother Dairy, Amul and Delhi Milk Scheme (DMS) in the national capital, and other stateslike Assam, Orissa, West Bengal besides Nepal.

20) Milind Deora to increase telephony services in rural areas -The Hindu 12 JulyMilind Deora today took charge as the Minister of State for IT andCommunication and said his top priority will be to increase telephonyservices in rural areas. My first priority as minister will be to increase thetelephony services in rural areas and that too, at affordable prices, Mr.Deora said. He further said: The services offered will have to beaffordable, but has to give revenue to the Government as well. Mr . MilindDeora is a two-time Member of the Lok Sabha from South Mumbai. Hisdebut in the Government as the Minister of State for IT andCommunication comes in the wake of his 74-year-old father Mr. MurliDeoras resignation as Cabinet minister, citing old age.


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INTERNATIONAL NEWS

21) U.S. Considers Adding Sound to Electric Cars- The Wall Street Journal 8 JulyThe Obama administration said Thursday it would consider requiring electric cars andother vehicles with noiseless engines to be equipped with sound technology to make iteasier for pedestrians, blind people and others to become aware of their presence.Auto makers have acknowledged that electric vehicles need to make some type ofnoise to warn pedestrians of their approach. Cars powered by electric motors such asthe Nissan Leaf and Chevrolet Volt make very little noise compared to vehicles withgasoline engines.

The number of electric vehicles on the road is still low, but sales are increasing. Automakers already employ warning devices on their electric vehicles and have created

special noise making devices so that the visually impaired can hear the approach of the vehicles.

22) Britain's News of the World hits the newsstands for the last time- Reuters 9 JulyBritain's News of the World hit newsstands for the last time Sunday after being closedamid the phone-hacking scandal, ending 168 years of scoops and scandal with theheadline "Thank You and Goodbye." In a full-page editorial, Britain's top-selling weeklynewspaper apologized to readers for the long-running hacking controversy, saying:"Quite simply, we lost our way." But the row is far from over, and as owner RupertMurdoch headed to London to take personal charge of the crisis, it was reported thatpolice would soon be questioning his top British executive, Rebekah Brooks. More than200 staff now face an uncertain future after Murdoch's shock decision to axe the paper.

Despite public anger over the hacking, Britons were snapping up the final copy of thepaper as a souvenir.

23) Move2Picasa allow users to move from Facebook to Gooogle+- ET 12 JulyApplication geeks are cashing in on users' craze to move from Facebook toGoogle+ new social media site. Google+ Applications and websites thatenable this migration are already showing up. Move2Picasa is a smalapplication that allows users to move their photos from Facebook toGoogle+. Coded by Pune-based Web developer Aman Kumar SinghMove2Picasa saw over 10,000 users put in requests for migrating theirphotos from their Facebook accounts to Google+ profiles. "I did not thinkit will get such a response. We moved 4 lakh photos which took up lot ofresources. We have a long request queue waiting, so we have temporarilypaused accepting requests," said Singh, cofounder of the web app

developing firm Amiworks.

24) China's forex reserves hit new record- TOI 12 JulyChinas forex reserves grew a massive 30.3% in a year to $3.197bn at end of June. Indiasforex reserves are 1/10th of China. The central bank had said previously its reserves stoodat $3.0447 trillion at the end of March.

China's forex reserves have ballooned in recent years, fuelled by strong foreigninvestment, large trade surpluses and inflows of "hot money" -- short-term speculativefunds in search of quick profits. The stockpile has been rising as Beijing buys foreigncurrencies used to pay for the country's exports in order to control the value of the yuan.

25) Moodys cuts Irelands credit rating too to junk, warns of 2nd bailout- Reuters 13 JulyMoody's cut Ireland's credit rating to junk on Tuesday, warning that the debt-laden

country would likely need a second bailout -- just the latest move amid heighteningconcerns about Europe's ability to address its debt crisis and prevent it fromspreading. It reflects the credit rating agency's view that any further financiaassistance from Brussels will require private investors to share part of the painpossibly through a debt rollover or swap.

Investors fear a Greece default could ripple through Europe's banking system,putting pressure on stretched public finances in other euro zone countries. Economicgrowth in the European region as a whole has been sluggish, as a number of nationshave struggled with mounting debt costs and have had to pass harsh austerity plansthat have slowed economic growth further, creating a vicious cycle where taxrevenues drop, reducing their chances of repaying the debt even more.


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MISCELLANEOUS NEWS

26) Maran Steps Down, DMK Stain Darkens-ET8 JulyUnion Textiles Minister Dayanidhi Maran resigned in disgrace on Thursday, barely 24 hoursafter the CBI told the Supreme Court that he had coerced C Sivasankaran into selling hisstake in Aircel to a Malaysian company controlled by the ministers friend, T AnandaKrishnan.

Maran is the second minister in Prime Minister Manmohan Singhs team to quit thegovernment over suspected involvement in the 2G telecom spectrum scandal. The resignation

is certain to inject some urgency into the prime ministers plans to revamp his CabinetSources said the exercise could be carried out as early as next week. A series of graft caseshave been fuelling public outrage against the government, and the prime minister himself had

admitted that it was hurting the image of his government as well as the countrys.

27) Mint-fresh: new series of coins launched with latest rupee symbolHT 8 JulyFinance minister Pranab Mukherjee on Friday launched a new set of coins of 50 paise,Rs 1, 2, 5 and Rs 10 with the new rupee symbol embedded in them. The new series ofcoins have been introduced with features at the edge, which make it convenient foreasy recognition and distinction. The design has been adopted keeping in mind thedifficulties faced by visually challenged people, the finance ministry statement said.

The new coins will only reduce the cost of moving materials but also are user- friendlyin size and weight, Mr. Pranab Mukherjee said. Security Printing and Minting

Corporation of India Ltd (SPMCIL) is minting the new series of coins of alldenominations. The new coins will be lifted by the RBI of circulation to public verysoon. Mukherjee had promised to launch the new series of coins in his budget speechin February.

28) Damned lies and the magic of sarkari statistics- Express Buzz 10JulyThe latest survey on jobs by the National Sample Survey Office, between 2005 and 2010, Indiacreated fewer jobs and yet its unemployment has gone down despite a clear rise in workingage population. And you dont have to wade through 235 pages of riveting text and numbersfor proof. Earlier this week at the Statistics Day Conference, RBI Governor Duvvuri Subbaraosaid, The recently put out data on employment throw up a paradox as they simultaneouslyindicate fewer jobs created in the five-year period to 2010 along with a decline in the longterm unemployment rate.

Share of expenditure on cereals has registered the largest decline in share among all the itemgroupsfrom 26.3 per cent to 15.6 per cent in rural India and from 15 per cent to 9 per cent in urban India. Indeed,the survey adds that in the urban areas, practically all the food groups have suffered a declin e in share and in therural sector beverages, etc. show a distinct rise in share, while pulses, edible oil, sugar, and salt and spices show afall.

29) India set to become most populous by 2025: Maken- The Hindu 12 JulyMinister of State for Youth Affairs and Sports Ajay Maken on Monday said India wason the path of becoming the most populous nation by 2025 surpassing China. Thecountry would have to face many new challenges, if the population continued to growat the current rate, Mr. Maken said. Expressing concern over the rising population ata National Workshop on Youth for Population Stabilization,' held to mark WorldPopulation Day at Vigyan Bhavan here, Mr. Maken urged the youth to spread themessage of population stabilization. However, he said if population growth was a

challenge, it could also be converted into an opportunity as average age in India by 2020 would be among the lowest

30) Proposal for only 4-6 subsidised LPG cylinders- The Hindu 12 JulyAn Empowered Group of Ministers (EGoM), headed by Finance Minister PranabMukherjee, is likely to meet to discuss the report prepared by the task force ondirect transfer of cash subsidies on kerosene, LPG and fertilizers.

Although no agenda has been outlined for the meeting, it is likely that the recentlysubmitted report of the task force, which is headed by Unique IdentificationAuthority of India chairman Nandan Nilekani, will be taken up.If the report isapproved by the EGoM and sent to the Union Cabinet, the government's subsidyburden could be brought down substantially.


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THE GLOBAL AVIATION INDUSTRYThe Aviation industry encapsulates the development, operation and management ofaircrafts. Supporting 32 million jobs and $3.5 trillion in economic activity, it remains a largeand growing industry facilitating economic growth, world trade, international investment &tourism and therefore central to globalization.

Overview: An Airline provides air transport services for traveling passengers and/or freight. Airlines lease or owntheir aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutualbenefit. Generally, airline companies are recognized with an air operating certificate or license issued by agovernmental aviation body. Airline services can be categorized as being intercontinental, intra-continental, domestic,

regional, or international, and may be operated as scheduled services or charters. Groups such as the InternationaAir Transport Association (IATA) and International Civil Aviation Organization (ICAO) establish worldwide standards forsafety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries,which designate specific carriers to operate on specific routes. The IATA is an international industry tradegroup of airlines representing some 230 airlines comprising 93% of scheduled international air traffic. All the Airlinerules and regulations are defined by IATA.

Deregulation:Many countries have national airlines that the government owns and operates. Fully private airlinesare subject to a great deal of government regulation for economic, political, and safety concerns. The United States,Australia, and to a lesser extent Brazil, Mexico, India, the United Kingdom and Japan have "deregulated" their airlines.In the past, these governments dictated airfares, route networks, and other operational requirements for each airline.Since deregulation, airlines have been largely free to negotiate their own operating arrangements with differentairports, enter and exit routes easily, and to levy airfares and supply flights according to market demand.

Performance:Historically, air travel has survived largely through state support, whether in the form of equity orsubsidies. Although the overall trend of demand has been consistently increasing, the airlineindustry as a whole has made a cumulative loss during its 100-year history (once the costsinclude subsidies for aircraft development and airport construction). The industry has beenobserved to be cyclical in its financial performance. 4-5 years of poor earnings precede 5-6years of improvement. But profitability even in the good years is generally low, in the rangeof 2-3% net profit after interest and tax. In times of profit, airlines lease new generations ofairplanes and upgrade services in response to higher demand. Since 1980, the industry hasnot earned back the cost of capital during the best of times. Conversely, in bad times losses

can be dramatically worse. Warren Buffett once said that despite all the money that has been invested in all airlines,the net profit is less than zero.

Challenges: The economic slowdown which began in 2008 hit the globalaviation industry severely, with many airlines such as United and British

Airways in the red due to falling passenger numbers and increasingcompetition from low-frills airlines coupled with rapidly rising fuel costs.Terrorism, wars and revolutions, pandemic fears, earthquakes and volcanoes,failing economies and skyrocketing fuel prices have been critical in impactingthe profitability of Airlines. Unpredictable weather and conditions of extremeheat, cold, fog and snow can shut down airports and cancel flights costing anairline, money. Fuel makes up a significant portion of an airline's total costs.Labour is an airline's No.1 cost as airlines must pay pilots, flight attendants,baggage handlers, dispatchers, customer service and others. Also, there isshortage of skilled aviation personnel and increasing pressure to on theaviation industry to address their impact on climate and a switch to Bio-Fuels

Industry Outlook: The global aviation industry is gearing up to cater to a world of 16 billion passengers & 400million tonnes of cargo and is poised to grow at a healthy 5.6% CAGR. In terms

of total passenger trips, the main air travel markets of the future will continueto be in and between conventional mature markets as US and Europe andemerging markets such as India, China and the Middle East, which offer a greatgrowth potential. The IATA has given the airline industry profit forecast at $4billion for 2011, a 78% drop compared with the $18 billion net profit recordedin 2010 on account of Natural disasters in Japan, unrest in the Middle East andNorth Africa, plus the sharp rise in oil prices . The average oil price for 2011 isexpected to be $110 per barrel (Brent).Fuel is estimated to comprise 30% ofairline costsmore than double the 13% of 2001. Global GDP projections of3.2% support the continued growth in demand for air transport. Passengedemand is expected to grow 4.4% and cargo demand is expected to increase5.5%.


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MARKETING NEWS

1) HP sees explosive printer market growth in India The Hindu Business Line 7 JulySo you thought the printer market would take a hit as people get more environmentconscious and go the e-route to save paper. Well, here is a reality check. Tech majorHP estimates that India will throw up a 120 billion page-opportunity in 2014. That's a50 per cent growth from the 80 billion pages printed now. We are seeing atremendous growth in India, even outpacing the growth rate in many other regions,said Mr John Solomon, Senior Vice-President, Imaging and Printing Group, AsiaPacific and Japan, HP.

The optimism is based on multiple drivers: the low printer-to-PC ratio, explosivegrowth in content creation (from 40,000 petabytes to 2.3 million petabytes between 2010 and 2020), the rise inmobility and Web usage in India, and analogue-to-digital transformation. At present, a large portion of printing isskewed in favour of analogue or offset printing.

2) Hallmark launches network in the West - The Hindu Business Line 7 July

The Hallmark division of greetings cards producer, Archies, has launched itsdistribution network in Western India, and has plans to go pan-India with over 100retail stores over the next three years.

In January this year, the US-based social expressions' company inked a licenceagreement with Archies to open up exclusive Hallmark stores in India and also expandthe retail footprint. Under the agreement, the latter is authorised to produce andmarket cards in India, sell them to licensees in Sri Lanka and Bangladesh and alsoprovide Hallmark with designs for cards for Indian occasions like Rakhi and Diwali forsale in overseas markets.

3) LG to ramp up marketing on microwave oven - The Hindu Business Line 7 July

Consumer durables, LG Electronics India, said on Thursday that it would spend Rs 20 croreon marketing and advertisement of its microwave oven range this year. The company sellsmicrowaves with price ranging from Rs 4,200 to Rs 27,000. LG, which recently started itsannual MallikaEKitchen Cooking Contest, said it is reaching out to more cities andtowns through the campaign this year.

He said the company has seen more participation and it has penetrated into tier II and IIIcities this year.LG MallikaEKitchen Cooking Contest is an annual marketing campaign

started in 2009 with aim to educate consumers on the importance of healthy lifestyle andcreate awareness about LG products.

4) Walt Disney, Sony warm up to 3D movies at home BS 8 July3D movies, which captivated audiences in theatres, are now set to woo movie buffs on the homescreen. Hollywood studios like Walt Disney Studios and Sony Home Entertainment Pictures areintroducing popular titles in 3D Blu-ray discs to cash in on the growth of 3D hardware in India.

Walt Disney Studios, for example, had tested the waters by introducing two titles Bolt and AChristmas Carol last year. Disney is not alone in bringing the 3D viewing experience homeHardware manufacturers are hoping that as volumes increase, price of hardware (which is amajor hindrance to 3D adoption) will drop.With the advancement in manufacturing techniquesthe price of 3D TVs as well as Blu-ray players is expected to get more affordable, believesTadato Kimura, general manager (marketing) Sony India.

5) Music licensing co says pay up or face the music - The Hindu Business Line 8 JulyDid you know that Infosys, Apollo Hospitals, the Indian Railways and a whole host ofoffices, salons, hotels and malls that play any kind of music on their premises are payingan annual fee to Phonographic Performance Ltd (PPL). But there is also a large section ofhotels, pubs and the event-organising community that is evading paying this fee.

PPL is the apex licensing arm of the Indian Music Industry (IMI) that is authorised to issuelicences to any hotel/pub/event organiser involved in the commercial playing ofcopyrighted music. It administers the broadcasting, telecasting and public performancerights on behalf of its 200-plus members that include music companies in India. PPL hasnow undertaken a national campaign, where it obtains injunctions from various courtsincluding the High Courts against all defaulting venues if the licence fee is not paid.


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6) The Rs 5 conundrum BS 8 JulyBeverage companies are trying hard to crack the bottom of the pyramid market. Butthe going hasnt been that easy for beverage majors. For most part, these firms havestruggled to make a profitable product at Rs 5. Cokes famous attempt at targetingthe Rs 5 price point with a product popularly called Chhota Coke, a 200-ml-bottle,remained an experiment as the company struggled to manage both packaging andtransportation costs at that price point.

Coke, recently re-entered the branded powdered ready-to-drink market with its FantaFun Taste at Rs 5. Pepsi has launched a heath & wellness drink called Lehar Gluco+ in

a plastic cup. Launched under its joint venture with Tata Global Beverages. With all these efforts by beveragecompanies, the hope is that they can break into a segment that is increasingly becoming too important to ignore.Besides, as brand experts say these low-unit packs are a good way to build the brand appeal as they act like brandambassadors.

7) Better Connection BS 11 JulyTo become the most favoured operator in the MNP stakes, Idea has worked hardto spruce up its network and quality of service. Almost six months after MNP wasimplemented, Navanit Narayan, chief service delivery Officer of Idea Cellular, anAditya Birla group company, is breathing easy. While the media campaign playedits part in creating awareness, he believes its Ideas quality of service that didthe trick, and helped his company create stickiness. Players like RelianceCommunications (RCom), Tata Teleservices and BSNL have been the main losersin the MNP game.

The idea of MNP was to give users multiple choice. We started the exercise two-and-a-half years back, putting thenetwork infrastructure in place. Given the low post-paid base, this was a challenge. We knew it was not going to be agame changer since pre-paid users are low ARPU (average revenue per user) ones. So we looked at other factors. Youcant just reduce the cost and expect customers to stick around. Hence, we wanted to focus on improving the qualityof network and our service levels.

8) New, Improved BS 11 JulyIn March this year, Jyothy Laboratories snapped up Henkel AG and Co KGaAs 50.97 per centstake in its Indian unit for Rs 142.9 crore. At one shot, the three-brand company leapt intothe big league with six new brands in its stable, namely, Henko, Mr White, Fa, Pril, Margo andNeem. Analysts say the acquisition fulfils Jyothys primary aim of de-risking its portfoliowhich relies in a big way on a single brand, Ujala Supreme fabric whitener, which contributes32 per cent to its turnover. Manufacturing will be the first area of rework. Product

formulations will remain the same, but manufacturing will be decentralised for Henkel brandsExperts say Jyothy can leverage its knowledge of the Indian consumer to work its magic on

Henkel brands.

9) Blackberrys scissors out women's range to dress men better BS 9 July

Apparel brand Blackberrys has dropped its women's range to focus on the highly buoyantmenswear category.Women's formal range is a tricky business. Although it contributed aboutfive per cent to our turnover, we discontinued to concentrate on the male formal and semi-formal range. Also, it was difficult to maintain inventory to cater to a large segment of women,said Mr Yogesh Tiwari, Vice-President (Marketing), Blackberrys. Blackberrys said the opportunityin the men's range has been driven by the need for occasion dressing.' The concep t ofoccasion dressing has undergone a sea change. Now people have different clothes for differentoccasions that add a zing to their personalities, Mr Tiwari said.

10) World's largest consumer goods firm Procter & Gamble upbeat on India, invests 345 crore insubsidiary P&G Home Products ET 12 July

Procter & Gamble, the world's largest consumer goods firm, has invested Rs. 345 crore in itsunlisted arm P&G Home Products in one of its largest investments in a decade in thecountry. Analysts now expect the US giant to be more aggressive in the Indian market, enternew categories, including toothpastes, surface cleaners and hair oils, and make more productslocally to offer more mass-consumption products. The money will primarily power P&G's 'Project2-3-4' strategy to double the number of Indians who use its products, treble per capitaspending by Indians on its products and quadruple net sales of its India operations by 2015.

The development confirms the Cincinnati-headquartered company's move to shift its focus away from the westernmarkets and catch up with archrival Unilever in emerging markets such as India.


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11) CavinKare forays into liquid candy The Hindu Business Line 12 JulyShampoos to foods company, CavinKare Pvt Ltd has forayed into the confectionery segmentwith its liquid candy Funfills - at Rs 1 price point under the brand Chinni's. The candy comes infive different fruit variants. According to Mr C.K. Ranganathan, Chairman and Managing Directorof the company, the candy is made out of fruit pulp and fruit bits. To start with, the companyhas launched its products in the Tamil Nadu and West Bengal markets.The national rollout is setto happen before the end of 2011.The company sources this product from a captive third-party manufacturer in Cuddalore in Tamil Nadu.

According to Mr Sanjay Sachdeva, Business Head, Foods & Snacks, CavinKare, the organised

confectionery market in India is approximately Rs 3,000 crore with domestic players such asParle and Nutrine, and international brands such as Perfetti Van Melle, Cadbury and Lotte competing. CavinKare plansto come out with more variants of this product and also plans new products in the months to come.

12) Pfizer, Ranbaxy tie up with ITC to sell over-the-counter products in rural areas - The Hindu Business

Line 12 July

Drug-majors Ranbaxy and Pfizer have formalised an alliance with fast-moving-consumer-goods (FMCG) company ITC to tap the rural markets for their over-the-counter (OTC)products. The development was confirmed by sources from both pharmaceutical companies,though details were not disclosed.

While it is not clear whether the OTC products would be available only with chemists in thehinterland or the products would trickle into grocery and kirana stores as well thepharmaceutical industry has been long advocating a formal policy for OTC products. The

three companies are reported to have undertaken a pilot project in Uttar Pradesh.

13) Sony logs on to tablet PC domain in India BS 13 JulyIt clearly is a very late entrant in the tablet computer market, but JapaneseSony has big plans for the segment. It aims to be number two in the marketwithin a year of launch. Two products, codenamed S1 and S2, have beenunveiled by the electronics major in April in Tokyo. Sales of the products arelikely to commence shortly, say company executives. The launch will happensoon, says Masaru Tamagawa, managing director, Sony India. Teaser ads arealready visible on the Sony Corporation website. And most countries includingIndia are waiting for the shipments to happen, he says.

For the Indian entity, which figures among the top 10 markets for Sony with aturnover of Rs 5,700 crore, the launch of the two tablet PC models, will represent a new avenue of growth.

14)Scorpio on Gen-X drive BS 13 JulyM&M wants to attract those 18-25 year olds who are buying mid-sized sedans, butfancy an SUV for its rugged image. Its a month now that Mahindra & Mahindraadded yet another variant to its popular Scorpio range. The new Scorpio EX is 5 percent, or Rs 41,000, cheaper than the Scorpio LX, but doesnt have many things thatthe LX has. So just why did M&M, which is a market leader in the SUV segment witha 28 per cent market share, come up with another Scorpio variant at a cheaper pricepoint? The company says the reason was simple enough: it wants to attract youngprofessionals and college goers who had pockets deep enough for a mid-sized sedan

but always fancied an SUV for the ruggedness and space it offers.

15)Hind Unilever, Bharti Retail tie up to promote plastic recycling The Hindu Business Line 12 JulyFMCG major Hindustan Unilever Ltd and Bharti Retail have joined hands to launch aninitiative to promote plastic recycling among consumers in the National Capital Region(NCR).The programme, called Go Recycle' will run for three months in all the 31 Easydayand Easyday Market stores across NCR. This is a first-of-its kind initiative in India. It istargeted to help reduce packaging waste and also educate consumers to practiceresponsible consumption.

The programme will be promoted through in-store displays, leaflets and mailers. It aims todrive consumer participation through various incentive schemes, including discountcoupons for buying HUL products at Easy Day stores.

Xed Marketing Newsletter Week July07 July13

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