CURRENT AFFAIRS LEARNING MATERIAL26 th September’09 – 2 nd October’09

1. Nissan’s 370Z sports car to race into India by Jan

26 September

Nissan Motor India is planning to launch its sports car 370Z in India by January 2010. The company has drawn up an aggressive plan for India which will see a business model comprising five locally-made cars and four imported models by 2012.

The company considers India as one of the key market and expects to sell 300-odd units of its Teana and X-trail models, which have already been launched in the Indian market. It has appointed Hover Automotive India as its service partner for marketing, sales, after-sales service and dealer development in the country.

Under the service provision agreement, Hover will undertake the implementation of Nissan’s marketing and sales strategy and support dealer development in India.

Speaking to Business Standard ,Hover Automotive India Vice-Chairman G M Singh said: “We are planning to launch the sports car 370Z in India by January 2010. Although, the market size for sports car is small, the demand will definitely increase in the near future and we are bullish on it.” He added Nissan is already investing close to $1.4 billion for setting up a manufacturing facility in Chennai, having an initial installed capacity of 200,000 units per annum and which can be upgraded to 400,000 units per annum.

The new plant is likely to be operational in the first half of 2010.

The company has plans to launch its hatchback car Micra also in first half of 2010. Singh added: “Micra will be built on new platform and we will launch the car by the end of June 2010.” It has also plans to export Micra to Europe and 100 other countries.

Nissan India, which already imports the X-Trail SUV and the Teana sedan as CBUs (completely built-up units), plans to sell over 300-odd units of these cars. On the supplier front, he added that the company has plans to source 70-80 per cent of the components locally over aperiod of time.

2. One day internationals: Caught and bowled T20

27 September

Time was when a one day international (ODI) cricket match between India and Pakistan on a Saturday evening during the festival season would be the pride and joy of the broadcaster and mean a day of losses for other channels. That was before the 20-oversa-side game, or T20, took guard and began to hit ODIs, 50 overs a side, out of the ground.

As India capitulated to Pakistan in the ICC Champions Trophy in South Africa on Saturday, just about enough television viewers tuned in to give the match an average rating of 2.8 on STAR Cricket, according to overnight television ratings agency a Map. That is a sharp fall from the 4-4.5 garnered by any ODI involving India in the recent past.

Sports broadcaster ESPN STAR Sports, the broadcaster for the ICC Champions Trophy, is targeting Rs 200220 crore in advertising revenue from this tournament.

The future of ODIs look to be under a cloud if you compare the ratings with T20’s. Even a non-India match like the final of the T20 World Cup between Pakistan and Sri Lanka in May generated an average rating of 3.7. But it was the final of a tournament, one might argue. But then the group match between India and West Indies got 5.2, making it the most watched match of the tournament.

Even when one looks beyond international events and on to the Indian Premier League, ODIs still seem to be losing out. The 59 matches of IPLII during April-May garnered an average rating of more than 4 on SET Max, according to a Map data.

The four Champions Trophy matches before the India-Pakistan tie generated average ratings that were 0.60.8 lower than those of any major cricket tournament in the recent past, including IPL-II and the T20 World Cup.

Expectedly, advertisers are all aflutter. The 40-50 of them that together put more than Rs 1,000 crore every year in buying time on cricket broadcasts on private sports channels, are looking at putting more in Twenty20. “While IPLII generated over Rs 400 crore in ad revenue for SET Max, the forthcoming Airtel T20 Champions League may generate over Rs 250 crore for ESPN, much more than what it expects from the ongoing Champions Trophy," says an IPL executive.

3. Renault-Nissan looking at engine unit for car JV

27 September

To support their mega car production plans in the country, French car maker Renault and Japanese auto giant Nissan seem likely to set up an engine and transmission

facility that would entail further investment.

Both initiated work on the Rs 4,500 crore, 400,000 units per annum joint venture plant at Oragadam near Chennai in June last year. This was after the share in investment amongst the partners was rearranged after the withdrawal of utility vehicle maker Mahindra & Mahindra from the originally tripartite venture.

As both Renault and Nissan will be launching volume generating vehicles, including compact cars and sedans, over the next two to three years, they are also in the process of finalising the idea for an engine and transmission plant.

Currently, Renault imports all its three engines (petrol and diesel) for the Logan sedan (built jointly with Mahindra) from Romania and Spain, as volumes of the car are significantly low. Since the localisation content is low, it has pushed up overall cost of the car.

Kiminobu Tokuyama, managing director and CEO, Nissan Motor India, said: “Our current plan is to utilise a capacity of 2,00,000 and (later) 4,00,000, which is our commitment to the government of Tamil Nadu. We are not discussing product specification or product details as yet....(but) soon, I believe, we will start discussing some of the product specifications, such as engine capacity, transmission.” According to experts, typically a, engine plant with a size of 4,00,000 units or more will require an investment of aminimum of Rs 1,500 crore.

The joint venture Renault Nissan Automotive India (RNAIPL) is a high volume project, comprising sales in not just the domestic market but exports as well. Both companies have expressed keen interest in taking advantage of the low cost of manufacturing in India and shipping production to markets abroad.

Earlier, US auto giant Ford Motors signed a memorandum of understanding (MoU) with the Tamil Nadu government for setting up a 250,000 engines a year capacity unit, primarily to assist the company’s compact car, Figo, while increasing the localisation content to be price-competitive.

Although Nissan hasn’t revealed price details of the compact car it intends to roll out in May next year from Chennai, the vehicle will need to have localisation content as high as 80 per cent to compete effectively with peers such as the the Suzuki A-star and Hyundai’s i10.

Similarly, Renault’s compact car, sedan, derivatives of the Logan and other products of Nissan, which will come out from the same plant, will have to be priced competitively.

The proposed engine plant of RNAIPL will cater to requirements of both companies, although the power, performance and character of the engine will be tuned to suit the basic needs of the typical vehicle.

Move appears inevitable to boost localisation content, for cost control

The joint venture Renault Nissan Automotive India is a high volume project, comprising sales in not just the domestic market but also exports

The proposed engine plant will jointly cater to requirements of both the companies although the power, performance and character of the engine will be tuned to suit the basic needs of the typical vehicle

Currently, Renault imports all its three engines (petrol and diesel) for the Logan sedan (built jointly with Mahindra) from Romania and Spain, as volumes of the car are low

4. Mundra Port in talks with Vietnam govt to set up port

PRESS TRUST OF INDIA Mumbai, 27 September

Gujarat-based Mundra Port and Special Economic Zone Ltd is holding talks with the Vietnamese government to set up a port in that country.

“Talks are in progress with the Government of Vietnam to set up a port there. Things are still, however, in the initial stage but we are hopeful (of setting up the port),” Mundra Port Director Rajeeva Sinha told PTI.

Sinha declined to divulge details but said that, “if things materialise, then Mundra Port will be the first such Indian company to set up a port abroad”.

On the company’s plans to set up ports on the east coast of India, Sinha said, the company plans to set up at least one port in the region in the next three-four years which will basically cater to the iron ore and coal bulk.

Mundra Port was talking to the governments of Orissa, Andhra Pradesh and Tamil Nadu for setting up the port, he said, without giving a specific time-frame for the project.

Just a few days ago, Mundra Port had signed a 30year concession with the Mormugao Port Trust (MPT) for development of a coal terminal in Goa on a build, operate and transfer model.

The project, which will take shape in two years, will handle 10 million tonnes of coal

per annum and will generate a revenue of Rs 200 crore per year.

Around Rs 350 crore will be invested in the project, which will be commissioned by March 2013. MPT currently handles import of 5.5 million tonnes of coal annually.

He also informed that work was in progress for another specialised coal terminal at Mundra which is expected to be completed by 2011.

The project, at an investment of Rs 2,200 crore, will be commissioned by 2010, he said.

The project will handle 10 million tonnes of coal per annum

Dutch shipbuilding group plans India unit

Dutch shipbuilding group IHC Merwede plans to set up a facility in India to manufacture dredging equipment. “We are planning to set up a unit in India in the next few years as the Indian maritime industry is growing,” IHC Merwede Dredging and Mining Area Manager for India Philip De Bats said.

IHC Merwede, the largest global player in dredging and off-shore work has supplied both small and large dredges to India from its Netherlandsbased units for over a decade.

The company also signed an MoU with Cochin Shipyard last Friday for future collaboration on dredging and off-shore activities in the country. However, De Bats refused to divulge the investment the company is likely to make in this regard. “We can’t reveal the figure right now, but the number would be huge as adredge costs somewhere between $1.5-350 million (depending on their size),” Bats said.

The company, with a global market share of 60 per cent in the dredging and off-shore work business, will also open another regional headquarter in Mumbai to boost its presence and service offerings in the Indian sub-continent

5. Women outnumber men in NREGA workforce; Kerala tops

PRESS TRUST OF INDIA New Delhi, 27 September

Women are contributing more than half the work force under the ambitious NREGA scheme, with Kerala topping the chart of female participation and Jammu and Kashmir figuring at the bottom.

According to an assessment of the rural development ministry, about 52 per cent of all households given employment across the country under NREGA (National Rural

Employment Guarantee Act) since 2008, are women.

Kerala and Tamil Nadu have taken a march over other states on the number of women participation followed by Rajasthan and Chhattisgarh.

As per statistics with the Ministry, women constituted 85.05 per cent of the total 3,16,287 households which were provided jobs under the Rural Employment Guarantee Act since 2008.

In Tamil Nadu, the percentage of women stood at 80.52 among a total of 21,21,317 households employed under the Act. Among the western states, Rajasthan had the highest number of women who took up jobs under NREGA. They constituted 71.32 per cent of the total 47,37,819 households which were provided work under the Act.

Participation of women, however, remained lowest in Jammu and Kashmir during the said period. Of a total 55,176 employed in the state, the percentage of women stood merely at 4.22. In Andhra Pradesh, percentage of women in various NREGA programmes stood at 59.26 of atotal 39,09,189 households.

Women outnumbered men in naxalaffected Chhattisgarh where they constituted 52.27 per cent of the total 10,31,094.

In Tripura, their participation remained nearly 52 per cent of the total 1, 29,775. Although, the national percentage of women participation remained high, Ministry’s assessment reveals that their share remained below 50 per cent in the rest of the states.

According to the latest assessment of the rural development ministry, about 52 per cent of the households given employment across the country under NREGA since 2008 are women

6. Lupin buys cholesterol drug for $39 million

28 September

Pharmaceutical major Lupin has acquired the US rights for a cholesterol lowering drug, Antara (Fenofibrate capsules, 43 mg and 130 mg), from bankrupt US drug company Oscient Pharmaceuticals for close to $39 million (Rs 188 crore).

The drug had $70 million (Rs 337.5 crore) worth of sales in the US market in 2008, data from drug sales tracking agency IMS show.

Lupin acquired the drug in abidding process on September 25 under the procedures of the US Bankruptcy Court. Lupin outbid Akrimax Pharmaceuticals and private equity player Paul Capital to acquire Antara, Vinita Gupta, group president and chief

executive of Lupin told Business Standard.

“The drug has strong brand equity, with primary care physicians, and has patent protection till 2020. We plan to strengthen the marketing of this product by doubling our US sales team to about 120 people,” she said.

Antara currently has 4.5 per cent share of the Fenofibrate market worth $1.9 billion and grew 20 per cent in revenue in the last year.

Gupta said the company would fund the acquisition from internal accruals. Lupin, whose turnover is Rs 3,900 crore, had created a Rs 1,000 crore war chest fund two years earlier, as part of an aggressive acquisition strategy.

Lupin paid $38.6 million for the product and related assets, inclusive of inventory, said sources.

Lupin had previously filed amarketing application (ANDA) with the US Food and Drug Administration (FDA) to market generic versions of Fenofibrate capsules, 43 mg and 130 mg. On September 21, prior to the acquisition of Antara, Lupin sold its ANDA to Dr Reddy’s Laboratories.

The company has also settled the pending litigation with Oscient Pharmaceuticals regarding the generic version. Lupin had challenged the patents of the drug and following this, Oscient sued Lupin.

Company sources said the Antara acquisition enables Lupin to enter the primary care market with a three-product portfolio. Lupin’s Suprax tablets and Allernaze have strong potential in primary care. Unlike most other Indian companies selling generics drugs in the US market, Lupin sells the drugs by marketing to physicians. The company is ranked ninth in the US market in terms of number of prescriptions in a year. The brand business contributed around $74 million (Rs 356 crore), 27 per cent of Lupin’s overall US business.

Buys US rights for Oscient Pharma’s Antara

7. Greenko to buy licence for 96-Mw Sikkim project

REUTERS London, 28 September

Clean energy producer Greenko Group said it had agreed to buy a licence for a 96-Megawatt (Mw) hydropower project in Sikkim to boost production capacity.

The Sikkim project will cost about ¤105 million ($154 million) to build, take four years to complete, and is part of the group’s expansion plan, according to Chief

Executive Anil Chalamalasetty.

“The project is in an advanced stage of development with necessary permits in place and land acquired in aregion of proven hydrological data,” Chalamalasetty said.

Greenko expects to obtain debt to fund 70 per cent of the Sikkim project cost within three to six months. It said it is in advanced stages of negotiation over similar assets.

The company also announced on Monday that pretax profit for the year to endMarch rose to ¤3.2 million from ¤2.8 million a year earlier as sales climbed 6 per cent.

Greenko, founded in 2006 to develop, own and operate projects in Asia, said it secured production capacity of 255.5 Mw at the year-end and aims to increase that to 1,000 Mw by the end of its financial year 2014.

8. Nooyi tops world’s 50 top biz women list

India-born cola queen Indra Nooyi has topped the list of the world’s 50 top business women compiled by the Financial Times ,which also features three Indians — Britannia’s Vinita Bali, Biocon’s Kiran Mazumdar-Shaw and HT Media’s Shobhana Bhartia. Nooyi, chairman and chief executive of beverages and soft drinks major Pepsico, is followed by US-based Avon Products’ Andrea Jung and French entity Areva’s Anne Lauvergeon. PTI

9. Nissan’s Infiniti brand may debut in India

28 September

Affluent Indian automobile buyers may get another brand to choose from. Nissan, Japan’s third largest car maker, is looking at the possibility of launching Infiniti, a luxury brand owned by it, in India.

Known for its luxurious features and power-packed driving characteristics, Infiniti is a premium brand which competes with benchmark ones globally such as Mercedes, BMW, Porsche, Audi and Accura.

Kiminobu Tokuyama, managing director and CEO, Nissan Motor India, told Business Standard ,“We have got a global Infiniti business unit, which is a separate unit from Nissan Motor Company. They have been studying all the opportunities and I am sure they will start studying the Indian market, as it is the best potential market in the world.” Nissan has been pushing for expansion of the Infiniti brand into newer markets across the globe — Taiwan, South Korea, Russia, Ukraine, China and Western Europe over the years. The brand is popular in the very developed

automotive markets of the US and Canada.

However, if launched in India, all Infiniti models would carry a hefty price tag, as they would not be locally made and will have to pay 100 per cent duty.

Infiniti’s line-up includes sedans, coupes, convertibles, sports utility vehicles (SUV) and SUV coupes, falling in the range of $33,250 (Rs 16 lakh) -$56,050 (Rs 27 lakh) in the US market. These vehicles are propelled by engines of capacities ranging from 3.6 litre, V6, 328-bhp to 5.6 litre, V8, 320bhp.

Upon a 100 per cent increase, the price of Infiniti models here would be in the range of Rs 34-57 lakh, putting it in direct comparison with the German car makers.

The surge in demand for luxury cars in India in the past couple of years has made many top auto manufacturers launch their products here. The list includes BMW X6 and the M series, Mercedes new C class, Eclass and S class, as well as the AMG series, Audi R8, the Porsche range of models, Land Rover and Jaguar, to name some.

“The recent entry of so many luxury car makers, with some more brands readying to enter, shows the potential of the luxury market in India. Although the volumes generated are far lower than some other overseas markets, it has been growing in very high doubledigits recently,” said a city-based auto analyst.

The launch of a luxury brand in India will bolster the brand image of Nissan in the domestic market; it has a recognition problem despite being in the market for over four years. The company currently sells just two models in India (X-Trail and Teana), both imported.

However, within the next nine months, the company will be launching its first locally produced car from its Chennai plant. It is also preparing to add two more products from the completely built unit (import) route, which will be the sports convertible 370Z and apremium SUV Murano.

Competes with Mercedes, BMW, Porsche, Audi and Accura

In India, the price of Infiniti models would be in the range of Rs 34-57 lakh

10. Ratan Tata bags award

28 September UK-based news magazine, The Economist ,today named Tata Group Chairman Ratan Tata as the winner of the eighth edition of its annual ‘Business Process Innovation Award’ for the successful development and launch of the world’s cheapest car, the Tata Nano. In a statement, the magazine said Tata was selected for “...forging a

company that is shaping businesses across the globe and changing the way Indian companies conduct business. The company is also responsible for inventing the Tata Nano, the world’s lowest-cost car. Innovative methods through which the car is designed and manufactured enable Tata Motors to offer a more affordable, safe and efficient form of mobility to families in emerging markets.” “Innovative ideas are everywhere,” said Mark Langley, executive vice-president and COO of the Project Management Institute. “What we salute with the Business Process Award is rarer: The implementation, through effective projects and programmes that translate ideas into lasting change. Tata Motors’ Nano challenges the way automobiles have been made and marketed for a hundred years. The application of project management is testimony to Tata Group’s record of refining its processes, from boardroom to manufacturing floor, and promises transformation of an industry facing a billion new customers over the next generation.” This award from a prestigious UK-based magazine comes at a time when Tata’s acquisition of British car brands Jaguar and Land Rover is being severely criticised, for reporting big losses after the takeover and also the most recent decision to rationalise one of its plants in the Midlands.

11. Paper maker goes into e-teaching

28 September

Sundaram Multi Pap Ltd, a manufacturer of paper products for school students and office use, plans to launch software on virtual classes for students of standards 8th, 9th and 10th in English and Marathi for the Maharashtra state syllabus.

A wholly-owned subsidiary company has been formed under the name of Sundaram Edusys Pvt Ltd which will produce the software for the state board course, called Back to School 2010.

“It will come in the form of aset-top box which can simply be plugged in and played on a computer, laptop or a television set. We have roped in about 50 teachers and experts for this project. It will be complete with two- and three-dimensional animation to help students learn better,” Amrut PShah, chairman and managing director, Sundaram Multi Pap Ltd told Business Standard.

The product will have a real and an animated teacher in a virtual class, teaching chapter-wise with the help of animated pictures, mind map theory and the like. The software will have chapters covered from textbooks of all the 22 subjects, which will involve a one-time subscription cost. Once, purchased, the software can be used multiple times by multiple students. Amrut wouldn’t go into details of the price of the software.

“We are still working it out. We aim at launching it in the coming academic year and that is when the costs will be declared. This kind of a package is ideal for students and also for teachers and coaching classes, etc,” he added. The company recently launched an ecofriendly photocopy paper and completed a Rs 17 crore expansion project at Palghar. The expansion includes a new exercise book manufacturing machine with a fully automatic production line. This has stepped up the comapny’s

annual capacity of converting paper into stationery from 20,000

Sundaram Multi Pap, a manufacturer of paper products for school students and office use, has formed a wholly-owned subsidiary which will produce the software for state board course

12. MTS to launch high-speed internet services soon

28 September

New telecom licencee MTS, in which Sistema of Russia holds a majority stake, is preparing to launch high-speed wireless internet services that offer speeds of up to 3.1 mbps.

GSM operators have termed the services “legally untenable”, something MTS contests. The move will enable MTS (a brand owned by Sistema Shyam TeleServices Ltd) to join the league of major CDMA operators.

On a comparative basis, the services are 20 times faster than other wireless broadband connections and 10 times faster than average fixed line broadband connections in the country. When asked, Sistema Shyam TeleServices Ltd (SSTL) President and Chief Executive Officer Vsevolod Rozanov confirmed the development and said: “Yes, we are considering it.” “Other CDMA operators have already launched the services and we don’t see why there should be an issue. Clearly, the data market is picking up. Though, a company cannot focus on data only, there needs to a sustainable business balancing both data and voice,” he added.

SSTL is a joint venture between Sistema of Russia (73.71 per cent) and the Shyam Group of India (23.79 per cent), with the remaining 2.5 per cent being publicly held.

The Cellular Operators’ Association of India (COAI) had earlier sought the Department of Telecommunications’ (DoT’s) intervention to stop these highspeed wireless internet services. COAI claimed these were 3G Evolution Value Data Optimised (EVDO) services. In its letter, COAI complained it was ‘legally untenable’ to permit select players to get a preferential headstart to offer 3G services.

MTS, which has operations across six circles, will complete apan-India rollout by the end of next year. The company will roll out services in Delhi and the National Capital Region by Diwali (October), Karnataka in amonth’s time and Mumbai, Maharashtra and Haryana by the end of this year.

The three major CDMA operators - Bharat Sanchar Nigam Ltd (3G EVDO card), Reliance Communications (Reliance Netconnect) and Tata Teleservices Ltd (Photon+) had earlier rolled out their services.

Will be 10 times faster than the average fixed line broadband service in the country

MTS, which has operations across six circles, will complete a pan-India rollout by end-2010

13. Adventure sport business expanding in Uttarakhand

In the 1980s, tour operator Avinash Kohli began exploring new business opportunities in the hills of Garhwal. He found great potential in the white water rafting business on the tidal waves of the river Ganga at Shivpuri, near the holy city of Rishikesh.

That was the first time that Kohli, with the help of some Americans, set up a rafting company— Wildlife Adventure. Within years, Shivpuri, an idyllic beach, became the Mecca of adventure sport.

Despite not getting any support from the government, Kohli guided the local youth to expand the rafting business, which has now grown to Rs 25-35 crores. According to an estimate, nearly 50,000 people are associated with the adventure sport business in Uttarakhand.

Yusaf Zaheer, for example, is the owner of Himalayan River Runners, which has an annual turnover of Rs 30-35 lakh. Zaheer organises white water rafting as well as beach camps at Shivpuri. He is also now organising rock climbing in the area and planning trekking tours.

A fortnight ago, however, the tourism business comprising nearly 109 rafting companies, which operate along the 70 km long stretch between Devprayag and Muni Ki Reti in Tehri district, came to a standstill following an agitation.

These operators were annoyed with the forest department for not having issued lease permits this season and for instead adopting the bidding process. Forest officials also expressed their helplessness, saying that the move to adopt the bidding process had been taken at the highest level in the government. For nearly one week, the adventure sport business remained suspended.

14. Warner, YouTube near deal for music videos

Mon Sep 28, 2009 6:04pm EDTNEW YORK (Reuters) - Warner Music Group and YouTube are finalizing an agreement that would allow music videos from artists such as Madonna and Green Day to once again be featured on the popular web site, according to sources close to the deal.

The deal, which one source described as imminent, would resolve a dispute over licensing rights that caused Warner Music to pull music videos by its artists from Google Inc's YouTube in December.

YouTube and Warner, the third largest music company, declined comment on the deal, first reported by AdAge on Monday.

A deal would mean that Warner Music's stable of artists would once again appear on the world's most popular video sharing site, joining those from EMI Music, Sony Music Entertainment and Universal Music Group, all of which have renewed deals.

Financial details are unclear; but Warner Music Chief Executive Edgar Bronfman has made known his desire to improve terms of his previous deal with YouTube. Like other industry executives, he faces a music market that has been stung by tumbling CD sales and slowing digital music growth.

The deal would also open the door to a possible role for Warner in a new music video website called Vevo, which is backed by Universal and Sony and will be supported by YouTube's technology platform.

At the moment, talks about Warner joining Vevo are still in "early stages" and could break down over a range of issues, one source said. The source declined to be named because of the sensitive nature of the discussions.

Music industry insiders say that Web videos are catching up with radio and music television as one of the most important music discovery tools for fans.

They say Vevo would create a more sophisticated way to experience music on the web, describing a site that would be the music industry's version of Hulu, the popular U.S.-based online TV service backed by NBC Universal, News Corp and Walt Disney Co.

Former Universal Music digital chief Rio Caraeff was appointed as Vevo's top executive earlier this summer. The venture has held talks with major advertisers and deals with at least four big brand names are expected to be ready in time for its debut later this year.

15. Starbucks debuts Via instant coffee in U.S., Canada

Mon Sep 28, 2009 9:52pm EDTLOS ANGELES (Reuters) - Chief Executive Howard Schultz called Starbucks Corp's Via Ready Brew "perhaps the biggest opportunity" in company history as he prepared for the instant coffee product's North American roll-out on Tuesday.

With Via, the coffee chain that introduced espresso drinks to the masses, hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.

"This is the biggest investment we've made in a national launch," said Schultz, who is navigating a turnaround at Starbucks while looking for new products to drive profits.

Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.

Some analysts have questioned whether U.S. coffee drinkers will flock to Via, particularly since it will compete with familiar and far less expensive products.

Schultz said that due to the higher quality of Via, it would not compete with existing instant coffee products. He added that Via did not cannibalize Starbucks main business in markets where it was tested.

"This is not your grandmother's instant coffee," Schultz said. "The quality of Starbucks Via is a mirror image of the quality and taste of Starbucks brewed coffee."

While the CEO said that Via "exceeded expectations" when it was tested in Seattle, Chicago and London, he declined to reveal expectations for Via profits, the cost of the advertising campaign or the timing of Via's launch in other parts of the world.

A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.

Starbucks aficionados "won't balk at the price" of Via if they believe it delivers on taste, said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.

16. Xerox to buy ACS to expand back office services

Mon Sep 28, 2009 10:26pm EDTNEW YORK (Reuters) - Xerox Corp plans to buy Affiliated Computer Services Inc for $5.5 billion to move into the outsourcing business, but shares of the printing company plunged on concerns that it was gambling on a major shift in strategy.

The cash-and-stock deal, Xerox's biggest ever and the first major move by new CEO Ursula Burns, is the latest in the technology services sector, where reliable revenue streams have attracted hardware vendors looking to diversify. Xerox rival Hewlett-Packard Co bought EDS last year, and Dell Inc plans to buy Perot Systems Corp.

Shares of Xerox fell 14.48 percent to $7.68 as some analysts questioned how quickly the acquisition will bear fruit and others cited concerns about the dilution of Xerox shares.

BMO Capital markets analyst Keith Bachman said Xerox is seeking to buy access to new markets for its copiers and printers through ACS, but their sales teams could struggle to sell each other's services.

"Xerox's (deal) appears more radical in scope than any deal contemplated by HP, Sun, or IBM -- more change at once, with less initial product overlap," Bachman wrote in a client note.

"To be fair, we believe that Xerox has proven with Global Imaging Services that it can effectively integrate companies, but we question the amount of current strategic overlap." Xerox acquired GIS in April 2007 for about $1.5 billion.

Xerox said it will pay 4.935 Xerox shares and $18.60 cash for each share of ACS, totaling $6.4 billion, or $63.11 a share based on Friday prices. That was a 33.6 percent premium -- and about the same as ACS's record share price of $63.66 in 2006.

But with the fall in Xerox shares on Monday, the deal value shrank to $56.60 per share. ACS rose 13.99 percent to $53.86.

Norwalk, Connecticut-based Xerox, which has about $1 billion in cash, said about $3 billion of the deal will be financed through capital markets. Its credit default swaps rose by 0.10 percentage point to 1.78 percentage points, indicating that the cost of protecting its debt has risen.

Xerox said that if its board terminates the deal, the company will have to pay ACS $235 million. If ACS's board terminates the deal, then the company will pay Xerox $194 million.

Despite Xerox's share fall, analyst Shannon Cross of Cross Research said the deal appeared to be fairly priced when compared to Dell's bid for Perot and HP's acquisition of EDS.

"The ACS acquisition will strengthen Xerox's enterprise business, allowing it to expand from a document management company ... into the (outsourcing) space with strongholds in government and healthcare," Cross said in a note to clients.

17. The World's First Commercial ITS Verification Test Carried out in Changchun City, China

Mon Sep 28, 2009 10:00pm EDT- Renesas Provided the WAVE Terminal Platform - TOKYO--(Business Wire)-- Renesas Technology Corp. and the city of Changchun, China have jointly carried out a verification test of the world's first commercial ITS¹ using public bussesin Changchun City, China this month. The test was completed successfully. Renesas provided the WAVE terminal platform that implements WAVE² communication, a

new wireless communication technology, and confirmed the realization of WAVE communication used in public busses.

Currently, there are many efforts underway globally to implement ITS that connect vehicles and the roads they drive on with a network to resolve road and transportation problems such as traffic jams and road accidents. High-capacity data communication between vehicles (car to car) and between traffic signal equipment, road information management systems, and other roads/vehicles (road to car) are required to implement the ITS services such as ETC³, GPS for car navigation systems, safe driving support systems, and public transportationmanagement services. Since last year, at locations around the world, there have been efforts to promote ITS verification testing aimed at practical implementation of ITS using the WAVE technology. This is because WAVE can implement, in real time, the high-speed/high-capacity communication required for image transmission, and it is regarded as the next-generation wireless technology capable of supporting car to car and road to car connections.

Now, a WAVE verification test has been carried out in Changchun City, using WAVE terminals located in three public busses, eight bus stops and an intersection on the main street that connects Changchun station with the Changchun municipal government. This was the first time that such a test has been carried out using public busses that were actually operated commercially, with bus stops on an ordinary street used for the bus route. Renesas` WAVE terminals were installed in the busses, bus stops, and at intersections, where information, including image information acquired with cameras at the various sites, was exchangedbetween the WAVE terminals. The scenes at the intersections were projected on the monitor within the bus next to the driver`s seat, and the bus driver was able to determine the state of traffic congestion. Similarly, by showing the scene inside the bus to the Changchun Transit Authority (CTA), they could see the degree of crowding, as well as use the information for crime prevention. Also, by collecting this terminal data and acquiring bus position information in real time, it will be possible for the CTA to estimate the bus arrival times and display such information at bus stops, and to achieve stable bus operations control by optimizing the bus arrival intervals.

Renesas developed a WAVE evaluation system in 2008 and has participated in ITS verification testing at many locations. The Chinese government has been promoting the construction of ITS infrastructure in major cities, and Changchun City has been developing its ITS infrastructure since 2007. Changchun City is the home of the First Automobile Works Group, which is one of the three major car manufacturers in China where automotive-related industries are concentrated.Here, Renesas, partnering with FAW Qiming Information Technology Co., Ltd., which is part of the First Automobile Works Group in Changchun, has been participating in ITS infrastructure construction planning since June 2007. Renesas and Changchun National Optoelectronics Industry Base Development Co., Ltd., co-hosted this current test with the support of the Changchun Bureau of Industry and Information along with Changchun Public Transport Group Co., Ltd., and Changchun Information Center for building the verification test infrastructure system. Renesas provided the WAVE platform integrating WAVE technology and related software, including software for the bus control system.

Renesas confirmed from the results of the verification test that the WAVE technology will be able to apply to safety monitoring of roads and public transportation systems. The results can also be applied to traffic control systems, traffic information service systems, and safety driving assistance at intersections and with public transportation systems. Renesas will provide an ITS terminal platform system with key devices and technological support toChangchun City, which is aiming at full deployment of a WAVE system. By providing ITS solutions, including the latest WAVE technology, not only in Changchun City but to other sites as well, Renesas contributes to safety, security, and comfort in the automotive society. In addition, Renesas will contribute to the standardization of WAVE, which IEEE 801.11p4 and ETSI5 have now studied to standardize WAVE as a unified specification, by providingfeedback obtained from ITS verification tests using Renesas` advanced WAVE evaluation system and developing a SoC incorporating WAVE technology.

18. AT&T accuses Google of violating telecom law

Sat Sep 26, 2009 12:30am EDTAT&T on Friday accused Google of violating the U.S. Federal Communications Commission's net neutrality rules by blocking Google Voice calls to some rural areas.

In a letter to the FCC, the carrier said Google is claiming an advantage over other telecommunications providers by blocking calls, a cost-saving measure that traditional carriers are prohibited from using. "We urge the Commission to level the playing field and order Google to play by the same rules as its competitors," wrote Robert Quinn, a senior vice president for AT&T's federal regulatory issues, in a letter to the FCC.

The letter came at a heated moment both for net neutrality and for the Google Voice service. On Monday, FCC Chairman Julius Genachowski kicked off an effort to formalize the four net neutrality principles in the agency's Internet Policy Statement and add two more, covering non-discrimination and transparency.

Google Voice creates a single number that works across all of a user's phones. That number can be used to make calls and send and receive text messages, and the software also includes tools for managing voicemail. Google recently submitted the application for approval in Apple's iPhone store. The two are disputing what happened next, with the search giant saying that the application was rejected and Apple insisting it is still considering it.

Google systematically blocks calls to certain areas from consumers using Google Voice, AT&T said, citing press reports. By doing this, Google can reduce its access expenses, according to AT&T. The FCC in 2007 prohibited traditional carriers from blocking calls because it said the practice might degrade the reliability of telecommunications networks, Quinn wrote.

AT&T charges that Google's call blocking violates the fourth principle of the FCC's Internet Policy Statement, which says consumers should be able to reap the

benefits of competition among network, application, service and content providers. Though Google has claimed that Google Voice is not a traditional phone service, it effectively is, AT&T says. And even if it's an application and not a phone service, Google Voice is still governed by that principle because it covers application providers, the letter said.

The carrier also accused Google of violating a proposed fifth principle, on nondiscrimination, which says one provider can't block fair access to another. Google itself is discriminating when it blocks calls to certain local exchange carriers, AT&T said.

Local phone companies charge long-distance service providers for originating and terminating calls to and from their networks. Some small rural carriers charge higher-than-usual rates, in some cases using revenue-sharing deals with call centers or other operations that draw in many long-distance calls. Traditional carriers are required to connect these calls despite the high charges.

19. MindTree to acquire Kyocera Wireless’ subsidiary in India

BS REPORTER Bangalore, 29 September

In a move that would help it consolidate its position in the growing product engineering services (PES) space, Mindtree, the IT and R&D services company, has signed an agreement with Kyocera Wireless Corp (KWC) to acquire its Indian subsidiary, Kyocera Wireless (India).

The acquisition involves an upfront payment of about $6 million (about Rs 29 crore), other than payments linked to the revenues to be acquired from Kyocera during 2010-11 and 201112. MindTree expects this acquisition to contribute about $9 million in revenues for the period October 2009 to March 2010, with profit after tax in the range of 13-15 per cent.

California-headquartered KWC is a global producer of mobile handsets and wireless products, and is part of the $11.5 billion Kyocera Corporation. Established in 2003, Kyocera Wireless (India) employs about 600 people in India, with its development centre located in Bangalore.

The company provides wireless product development, software engineering and product testing services for KWC’s global product portfolio, other than developing customised wireless handsets for Indian telecom service providers. The terms say KWI would continue to provide engineering services to KWC and other Kyocera entities, post the sale.

“We are pleased to enter into this agreement with MindTree,” said Yasuyuki Yamamoto, General Manager of Kyocera Corporation’s Corporate Communication

Equipment Group. “This allows Kyocera to improve its cost structure and competitiveness, while providing MindTree a strong engineering resource, especially in the field of software for mobile devices,” he added.

Following its organisationwide restructuring announced in March this year, MindTree had identified PES as one of five key areas of growth. The business unit which comprises R&D and outsourced product development services, is headed by Janakiraman S as the president and Group CEO. The company had been keenly exploring the inorganic way of growth, to boost the new practice.

20. TVS group to diversify, eyes ‘green’ power

29 September

The TVS group, a leading brand in the automotive industry, is set to create its brand in ‘green’ power energy through a new company. It is also eyeing the defence sector, as part of a diversification plan, through Sundaram Clayton, a leading supplier for the automobile industry.

Speaking on the sidelines of Sundaram Clayton’s annual general meeting Venu Srinivasan, MD, said, “We are planning to venture into green power. Our immediate focus would be wind and micro-hydro, followed by solar and biomass.” Sundaram Clayton is planning to set up a 5 Mw wind energy farm in Tamil Nadu through anew company, which is expected to be floated in the next six months. On the capital for the new company, Srinivasan said, “It’s in the drawing stage.” And, “we are talking to (the) defence (ministry) for supplying to aviation and maritime force,” said Srinivasan.

The company’s products, including raw aluminum castings and machined castings, catering to commercial vehicles, passenger cars and the two-wheeler industry.

Srinivasan said the proposed diversification plan would help the company reach its target of aRs 1,000 crore turnover in five years, from Rs 492 crore last year. “To support the target, we will increase our foundry capacity to 50,000 tonnes from the current 35,000 tonnes, with an investment of around Rs 200 crore over the next five years.” The increase in capacity is mainly to cater to the company’s new customers, including Nissan Motors, Daimler, BMW and others. The company, said Srinivasan, is expecting orders worth Rs 400 crore from these majors over the next three to five years.

May consider merging subsidiaries: Venu Srinivasan

Responding to a shareholder’s query, Venu Srinivasan said the TVS Group will consider demerging its subsidiary companies. There are 17 subsidiaries, of which seven are in the auto field and 10 are not. Among the 17, five are direct subsidiaries of Sundaram Clayton, three under TVS Motor Company Ltd, six under TVS

Investments Ltd, two are under TVS Electronics and one under TVS Motor (Singapore) Pte Ltd.

21. IIM-A accepts MHRD’s salary package

BS REPORTER Ahmedabad, 29 September

The board of the Indian Institute of ManagementAhmedabad (IIM-A) today accepted the Ministry of Human Resource Development’s (MHRD’s) recommended salary package but reiterated it had reservations over the issue of faculty promotions.

IIM-A Director Samir Barua, who met reporters here to discuss the outcome of the board of governors’ recent meet in Udaipur, said: “While both the faculty members and the board have approved the MHRD’s recommendations in principle, we still have reservations on restrictions on faculty promotions. Our arguments with the MHRD are not on the monetary recommendations. We are going to raise the issues of authority and position with the ministry. The dialogue is still on. Meanwhile, the faculty is ready to implement the salary recommendations after a month.” Barua, however, insisted that unlike the manner in which the Indian Institutes of Technology (IITs) went about the issue, “we want to make our requests in adignified way as we are a responsible public institution. The IITs themselves are a divided house. Within the protesting IITs, there are faculty voices which are of dissent. So, it is difficult to say whether we will go with the IITs on the pay revision issue,” he added.

The premier institute will, instead, take up the matter with the MHRD through the Committee on Future Directions, which will prepare a blueprint and write to the ministry. “Privately-funded institutions have no restrictions, while we work under restrictions on compensation, choice of students, expansion, collaboration and joint degrees. The government should free us from these restrictions, and give institutes like IIM-A, IIM-Bangalore and IIM-Calcutta aperiod of five years and then decide on our autonomy, based on our performances,” he said.

When asked about the possibility of IIMs converting into universities, Barua said: “By the word ‘university’, we mean to highlight possibility of incorporating multiple disciplines, rather than offering pure degrees. This can be done by networking and collaborating with other institutes specialising in other streams. While we have not taken any stand on this matter, such apartnership with other streams like law or art is one of the options we are considering.”

22. Google working on "smart" plug-in hybrid charging

Wed Sep 30, 2009 12:30am EDT

SAN FRANCISCO (Reuters) - Google Inc is in the early stages of looking at ways to write software that would fully integrate plug-in hybrid vehicles to the power grid, minimize strain on the grid and help utilities manage vehicle charging load.

"We are doing some preliminary work," said Dan Reicher, Google's director of Climate Change and Energy Initiatives. "We have begun some work on smart charging of electric vehicles and how you would integrate large number of electric vehicles into the grid successfully."

"We have done a little bit of work on the software side looking at how you would write a computer code to manage this sort of charging infrastructure," he said in an interview on the sidelines of an industry conference.

Google, known for its Internet search engine, in 2007 announced a program to test Toyota Prius and Ford Escape gasoline-electric hybrid vehicles that were converted to rechargeable plug-in hybrids that run mostly on electricity.

One of the experimental technologies that was being tested by the Web search giant allowed parked plug-ins to transfer stored energy back to the electric grid, opening a potential back-up source of power for the system in peak hours.

Google has pushed ahead in addressing climate change issues as a philanthropic effort through its Google.org arm.

Reicher said Google has been testing its fleet of plug-in hybrids "pretty intensely" for the last couple of years.

23. Salesforce.com invests in accounting software firm

Tue Sep 29, 2009 9:10pm EDTBOSTON (Reuters) - Salesforce.com Inc, a maker of Web-based software for managing sales and customer service, is getting into the business of selling accounting programs through a venture with a Dutch company.

Salesforce has set up a company, FinancialForce.com, with Unit 4 Agresso NV that sells accounting software using Salesforce.com's technology for building and distributing software over the Web.

The move brings Salesforce into an area where it had been conspicuously absent. The San Francisco-based company will compete head-to-head with Intuit Inc, Microsoft Corp and Sage Group Plc, which sell accounting programs to small and mid-sized businesses.

Unit 4 Agresso owns a majority stake in the venture, FinancialForce Chief Executive Jeremy Roche said in an interview. He declined to give specifics or say how much the two companies had invested in the project.

While the companies did not say how they would split up any profits from FinancialForce.com, Salesforce stands to benefit from traffic it generates because the product runs using its own technology at its own data centers.

Salesforce distributes all its software over the Web. Customers access its programs through Internet browsers and pay monthly service fees to access the programs.

It also makes money by letting other companies develop software with its technology and host it at its data centers. FinancialForce.com was originally developed with that service, known as Force.com.

The new venture offers a basic accounting package comparable to products sold by Intuit, Microsoft and Sage.

24. US, Italy sign pact to build nuclear power stations

Tue Sep 29, 2009 7:40pm EDTWASHINGTON, Sept 29 (Reuters) - The United States and Italy on Tuesday signed a nuclear cooperation deal that would enlist U.S. companies to help build a string of nuclear power stations across Italy, ending a 22-year ban by the Italian government.

"Italy is restarting its nuclear energy again," U.S. Energy Secretary Steven Chu told reporters. "It has aggressive goals, very admirable goals, in decreasing its carbon emissions through nuclear, through renewable energy, through improvements and efficiency."

Chu said companies like General Electric (GE.N) and Toshiba Corp (6502.T) unit Westinghouse will be able to bid on projects in Italy, which hopes to issue in mid-February criteria that would determine the location of the facilities.

Italy, the only Group of Eight industrialized nation without nuclear power, rejected it in a 1987 referendum after the Chernobyl disaster in Ukraine.

Italy aims to rebuild the sector and produce 25 percent of power from nuclear plants. That would help reduce Italy's heavy dependence on fossil fuel imports and cut carbon emissions.

The five-year pact, which was signed by Chu and Italy's Economic Development Minister Claudio Scajola, calls for cooperation between the two countries to develop up to a dozen reactors. There is an option to renew the agreement for another five years.

New reactors can cost an average of at least $3 billion to $4 billion to develop.

Scajola told reporters after the signing that he hopes the facilities will be built starting in 2013 and will start producing energy several years later.

25. Domino's Pizza Introduces New Sandwich Stars

Tue Sep 29, 2009 5:48pm EDTDomino's(R) looks to astrological signs to help predict consumers' favorite Oven Baked Sandwiches

Domino's Pizza® (NYSE: DPZ), the recognized world leader in pizza delivery, is lining up with the stars -- astrological stars that is. In honor of the launch of its four new sandwiches, and just for fun, Domino's consulted an astrologer to see if consumers' zodiac signs influence their food and sandwich preferences. Take it with a grain of salt if you must, but there may just be something surprisingly stellar in a Taurus love for beef, a Cancer craving for comfort foods, a Scorpio preference for spicy seasonings and the like.

For this entertaining analysis, Domino's partnered with Steve Weiss, author of Signs of Taste and president of Straightforward Communications, a marketing and research consultancy specializing in consumer demography and trends. "My interest in food astrology grew out of a talk on menu trends I once gave to the National Restaurant Association," says Weiss. "I surveyed hundreds of professional and amateur 'foodies' regarding their menu preferences and, as an afterthought, I asked everyone to note their birth dates. When I eventuallytabulated the results by astrological sign, I was amazed and delighted by some real correspondences among the various signs."

"At Domino's we're always going to have a serious interest in customer values, the motivations people have for enjoying a Domino's experience," said Jenny Fouracre, Domino's Pizza spokesperson. "At the same time, though, we know that one value common to everyone is having a little fun. Astrology is just one of those areas where consumer research and fun overlap, where you can get at a little bit of insight and enjoy a big smile at the same time."

26. Procter & Gamble Announces Partnerships with U.S. Olympic Athletes

Tue Sep 29, 2009 3:00pm EDTCINCINNATI--(Business Wire)-- Procter & Gamble (NYSE: PG) announced today a series of Team USA athlete marketing alliances that will extend through the 2010 Olympic Winter Games in Vancouver. This announcement comes shortly after P&G and the United StatesOlympic Committee (USOC) announced a 17 brand marketing partnership, across fiveUSOC sponsorship categories for the 2010 and 2012 Games.

Baver, Belbin, Flowers and Vonn will be aligned with P&G beauty brands including COVER GIRL, Olay, Olay Quench, Pantene, Secret, and Venus. Jacobellis and Ohno will be aligned with Vicks.

The athletes will be fully integrated across numerous marketing channels including advertising, public relations, in-store merchandising, mobile, digital and direct mail.

"Partnering with these world-class athletes further accentuates our commitment to Team USA and P&G`s long tradition of helping people achieve their personal best each and every day," said Kirk Perry, Vice President, North America for P&G. "Each one of these athletes has a unique personality that fits within our brands` equities and we are confident they will resonate with our target consumers."

27. Sony Pictures Entertainment First Studio to Support Verbum Dei High School Work Study Program

Tue Sep 29, 2009 1:22pm EDT

LOS ANGELES and CULVER CITY, Calif., Sept. 29 /PRNewswire/ -- Sony Pictures Entertainment has signed on to be a corporate sponsor of student interns from Verbum Dei High School, the renowned college preparatory school in the Watts area of Los Angeles, California.

"The Verbum Dei and Sony Pictures partnership is our first student internship entry into the entertainment business and is a very significant opportunity for us," said William Muller, S.J., President, Verbum Dei High School. "Needless to say, our students have been looking forward to this opportunity with Sony."

The internship program, which is designed to prepare high schoolers with real world work experience while they complete their education, began this month. Four Verbum Dei students share an entry-level job at the Sony Pictures Entertainment headquarters in Culver City.

"We are thrilled to join this incredible program as part of our efforts to cultivate the next generation of entertainment professionals and support our local community," said George Rose, Executive Vice President of Human Resources for Sony Pictures Entertainment. "Verbum Dei has distinguished itself by giving students the chance to get real world work experience before they apply to college."

A Catholic, college preparatory high school located in Watts, Verbum Dei High School has implemented a Corporate Work Study Program whereas students work one day a week in entry level positions with local businesses to help fund their education and gain valuable work experience. Verbum Dei boasts a 100% college acceptance rate for its graduates.

28. Meet Dell's New $2,000 LaptopTue Sep 29, 2009 12:33pm EDTAbout as slim as the Adamo and just half a pound heavier, Dell’s new slim laptop is a PC intended for business users who crave beauty and are willing to pay whatever it takes to get it.

At the basic level, the Dell Latitude Z is a notebook with a 16-inch HD display that runs Intel Core 2 Duo processor and offers a choice of up to two 256 GB solid state drives. It comes with multi-touch trackpad that supports gestures such as pinch and zoom.

But the device goes beyond that to offer some smooth features — a new kind of touchscreen, wireless charging and some solid security features.

Lets start with the touchscreen. Instead of a touchscreen display, the Latitude Z has touch functionality built along the frame of the notebook display.  Sliding your fingers vertically along the frame pops up a tool bar that lets you choose common applications like email, photos, and camera.

The Latitude Z has a two megapixel camera that goes significantly beyond the traditional webcam function. Hold your business card in front of the camera and it scans the card and saves the information to Microsoft Outlook contacts.  If you have a sheet of paper, you hold it in front of the camera and can choose to save it as a PDF.

The camera also has face-recognition capability. So, if turned on, it can detect when you step away from the computer and automatically lock the machine then.

Other security features include a fingerprint reader and contact less smart card reader so you can lock the computer by just waving your office badge over it.

Another interesting addition to the laptop is new hardware that supports a ‘Latitude On’ mode. The mode promises instant start up and offers always on connection to email, internet, contacts and calendar.

The idea is to bring the functionality of a BlackBerry that promises always synced email and calendar to a PC, says Steve Belt, vice president of business client engineering at Dell.

29. Kenya Airways eyes Airbus A330-200s - sources

Tue Sep 29, 2009 8:51am EDT* Discussing purchase of 6-9 Airbus A330-200s-officials

* Cites Dreamliner delays, still in talks with Boeing

* Kenya Airways seeking to modernise its fleet

NAIROBI, Sept 29 (Reuters) - Kenya Airways (KQNA.NR) is in talks with Airbus (EAD.PA) about buying several A330-200 planes after delays to Boeing's (BA.N) much-anticipated B787 Dreamliner jet, senior officials at the airline said on Tuesday.

The carrier's Chief Executive Officer Titus Naikuni said on Friday the company was in talks with Airbus and that between six and nine aircraft were under consideration.

An official at Kenya Airways told Reuters the carrier, which is majority-owned by AirFrance-KLM (AIRF.PA) and the Kenyan government, had started talks because some leases on its planes were about to expire, and that it was eyeing the A330-200.

A second official at the carrier confirmed the plans.

The airline had no immediate official comment.

Naikuni told reporters on Friday the discussions were at a very early stage, and that the carrier was also still in talks with Boeing. Kenya Airways had agreed to buy nine Dreamliners.

Seattle-based Boeing is marketing its Dreamliner as 20 percent more fuel efficient than other planes.

Kenya Airways, which posted its first full-year pretax loss since privatisation in 1996 for the period ended in March -- due to fuel hedging costs -- wants to modernise its fleet of 28 Boeings and Brazilian-made Embraer jets.

The airline is one of Africa's leading carriers. It is opening new routes on the continent and wants to increase the frequency of flights to some existing destinations, such as Zimbabwe and Zambia. (Reporting by Duncan Miriri; Editing by David Clarke and Jon Loades-Carter)

30. Dell adds wireless battery charging to new laptop

Tue Sep 29, 2009 4:06am EDTDell introduced the Latitude Z business laptop, which includes a new wireless charging technology that could eventually find its way into other Dell systems, the company said on Tuesday.

The Latitude Z can be placed on a special stand that generates an electromagnetic field to recharge laptop batteries wirelessly. The technology, which Dell calls inductive charging, takes the same amount of time to recharge laptop batteries as an AC adapter, said Steve Belt [CQ], vice president of business client engineering at Dell.

"There's a coil in the bottom of the notebook and then there's a matching coil in the stand. You set them next to each other and it generates a current that flows and charges the battery," Belt said.

This is the first time Dell has included wireless recharging in its laptops. The recharging stand must be purchased separately, however, as an optional extra. The technology could help reduce the dependency on power adapters traditionally used to recharge laptops.

Dell is also adding new hardware that will allow the laptop to boot quickly while giving it "always-on" capabilities similar to those in a smartphone. The laptop includes an Arm processor -- a type of chip more often found in smartphones -- to boot a laptop quickly for fast access to commonly used Web applications like e-mail and a Web browser. The processor is included alongside an Intel processor, which is used to run the Windows OS.

The laptop is a vehicle to demonstrate some of the latest mobility features Dell could ultimately put in more of its business laptops, Belt said. Inclusion of some of those features in further laptops will depend on how the market responds to the technologies, Belt said.

Wireless charging is already being used in some consumer electronics like mobile phones. For example, Palm sells a kit to recharge its Palm Pre smartphone using inductive charging, also known as inductive coupling. Similar technology is being used to recharge electronic toothbrushes and even power tools.

31. Another meltdown in US: G8 is history 26Sep’09THE G20 summit underway here got a boost on Thursday night when, at the inaugural dinner for the leaders of the 20 leading economies and their spouses, host US President Barrack Obama said categorically that the Group of 20 has now replaced the G8 as the premier global economic forum. Rarely do changes in the global balance of economic power find such rapid reflection in the global architecture of economic cooperation as in the present instance, said Mr Obama. In his speech at the summit, Mr Singh focused on three things: the need to sustain the coordinated stimulus measures by national governments around the world for some more time, at least till the end of 2010; the developed countries’ obligation to take the lead in quelling protectionist eruptions and concluding the Doha Round of trade negotiations fast and stimulating investment in the developing countries. The prime minister also indirectly held out a hand of friendship and cooperation to China by virtue of the prescriptions that he recommended for regaining global growth momentum. Mr Singh posited stepped-up investment in developing countries, as the way out for both developing and developed countries.

32. Sanofi scans India for acquisitions 26 Sept’09SANOFI-AVENTIS, the $42-billion French drug maker, which bought companies in Brazil, Mexico, and the home-grown Shanta Biotech this year, has sent a delegation to India to finalise another target for acquisition in a market that is estimated to be worth more than $17 billion and growing, two persons familiar with the matter said. Global drug makers hunt for generic cos in emerging markets A DIRECTOR at Bangalore-based Micro Labs declined to comment.A team of around 10 officials from Sanofi-Aventis has been in India recently to visit Mumbai-based Piramal Lifesciences, the hived-off R&D company of the Piramals, where they spent a few days meeting executives, said a source familiar with Sanofi’s moves. The team have also met some of the other leading manufacturers in Mumbai and Bangalore, the source said. A Sanofi-Aventis spokesperson declined to comment.    Global pharma giants, such as GlaxoSmithKline, Pfizer and Sanofi, are hunting for generic drug makers, as they face potential revenue slump when a host of the patents they hold expires in the next few years. The absence of blockbuster patented drugs is forcing these companies to increase their revenues by buying up generic companies in developing markets, which are growing exponentially because

of economic prosperity.

   

33. After water, it’s helium on moon 26 Sep’09INDIA’S space agency said on Friday that it has been able to detect deposits on the moon of a mineral which can be used to fuel power plants, a day after the announcement of incontrovertible evidence of the presence of water on earth’s only natural satellite. The Chandrayaan-1 spacecraft, which set out on India’s first lunar voyage in October last year, has identified deposits of helium-3 (He-3), accomplishing one of the key objectives of its mission, top officials of the Indian Space Research Organisation (Isro) said.

34. Unilever to buy Sara Lee brands, unit for $1.88 b

26 Sep’09UNILEVER, the maker of Dove soap, agreed to buy Sara Lee’s personal-care and European detergent unit for € 1.28 billion ($1.88 billion), gaining Sanex shower gel in its biggest purchase in nine years. Unilever, based in London and Rotterdam, will pay cash for the business, which makes Duschdas and Radox soap and had sales of more than € 750 million for the year ending June 2009, according to a statement on Friday. Sara Lee, which has been shedding units to focus on coffee and food, said the proceeds would help it buy back as much as $1 billion in stock. The purchase is the largest by chief executive officer Paul Polman since he took the reins at Unilever at the start of the year. He focused the company on winning back cash-strapped shoppers and boosting sales volumes by cutting prices, and was rewarded as the company unexpectedly posted volume growth in western Europe in the second quarter.

35. HDFC BANK 26 Sep ’09CMP: RS 1608.55 TARGET PRICE: NA BROKERAGE house Citigroup Global Markets has rated HDFC Bank among its ‘preferred’ pick among bank stocks, but is cautious on the sector as a whole. “We believe the risks to loan growth are much higher than widely anticipated and will likely lead to disappointment on the growth and asset quality outlook. We also believe that there is pressure on interest rates to rise (regulator/inflation driven,

rather than loan driven), which could rise as early as 4QFY10 and may lead to lower-than-anticipated margin expansion (as wholesale deposit rates would likely go up more than the expansion in loan yields),” a Citi note to clients said.

36. A change of Fortune(r) for Toyota in mid-SUV segment

27 Sep’09 It wasn’t exactly built for speed. But ironically, Toyota’s new SUV Fortuner is setting the sales chart on fire here. In the compact mid-SUV segment — comprising strong contenders such as Honda’s CR-V, Ford’s Endeavour, Mitsubishi’s Pajero and GM’s Captiva — Toyota seems to have set the cat among the pigeons. The phenomenon, which can now safely be called the “Fortuner Effect”, has hit the sales of these rival vehicles like a sledgehammer, despite some of them such as Ford India launching new variants of their existing models. In a span of 30 days after the Fortuner’s launch, Toyota Kirloskar Motor received bookings for 7,000 vehicles, which is roughly 10 times more than what the other companies sold collectively in the month of August this year.

37. Greater disclosures may be made must for life insurers

27 Sep’09TO BRING greater transparency to the life insurance market, the insurance regulator could make it mandatory for life insurers to provide greater number of disclosures on a regular basis. The set of disclosures include furnishing expense ratio (a measure of cost efficiency), grievance redress record and renewal volumes on a quarterly basis. Expense ratio is calculated as underwriting expenses to net premium. A high expense ratio indicates a firm’s inefficiency to control operational costs relative to premium.

38. Nissan to launch sports car in India 27sep’09 pg 3NISSAN Motor will roll out its new sports car ‘Z370’ in India in 2010 as part of its strategy to offer more variants to the Indian customers. “Nissan will launch its sports car Z370 in the Indian market in January 2010,” Hover Automotive India (marketing partner of Nissan India), vice-chairman, GM Singh said.    “Though the market for sports car in India is limited now, but we think over a period of time, the market for such cars will increase,” he said.    The company will also unveil its small car Micra hatchback on new platform in 2010 in the Indian market. “Micra will come out with three variants of petrol and diesel...moreover, it will be developed entirely on a new platform,” he said.

39. Redefining high Samsung OMNIAHD provides a top quality video viewing with its touch screen display 27sep’09 pg 11

The new OmniaHD from Samsung is being flaunted as the world’s first full-touch screen handset. The latest offering in the Omnia series, this touch screen phone incorporates multimedia features and very fast data communication. The high definition video recording feature enables users to capture footage in HD (720p) quality and also to enjoy HD content on HD TV. The 16: 9 screen of QHD display with 16M colour and dual stereo speaker will enable users to enjoy standard definition and high definition videos in cinemascale quality. The 720p quality video along with the 3.5-inch display makes the video viewing experience on OmniaHD very spectacular. The active matrix organic light emitting diode (AMOLED) touch screen provides sharpness of tone, vivid colours and great clarity even in direct sunlight. It also consumes less power. Motionenabled features including 3D games make it intuitive and exciting to enjoy the best ever mobile multimedia experiences.

   The dedicated 8MP camera ensures camera-quality photographs and videos which can be shared through super-fast internet access. Users can also enjoy PC-like websurfing on the phone’s 9.4 cm auto-rotating display. GPS with integrated compass makes OmniaHD suitable for both pedestrians and drivers, and the navigation touch control and voice guidance via dual stereo speaker provide drivers with easy and safe navigation. The huge 16GB internal memory — expandable to another 32GB — allows storage of up to 48GB of data.

40. LUXE LIFE 27 sept pg 8• 95% of business for designer duo Shantanu-Nikhil from standalone stores in India. Their exports to international countries has come down to 5% as against 12-13% earlier

• Ritu Kumar had to downsize exports by 10% due to economic downturn

• Top league brands looking at India specific collections to appeal to Indian clientele

• Salvatore Ferragamo has glam Ganciomania that is on a wait list

• Canali’s new Nawab Collection pays tribute to Indian heritage

• Judith Leiber tied up with Indian designer Suneet Varma recently

• Montblanc looked beyond its usual Russian emperors and American icons and named a limited edition after Mahatma Gandhi

Number of households in India earning over Rs 45 lakh or more: 1.8 million

Amount spent every year on luxury or premium goods and services: Rs 4 lakh

Percentage growth in the number of such households: 14%

Percentage of luxury consumers from Delhi and Mumbai: 40%

Top four categories in Indian luxury market pie: Jewellery (27%), Clothing (16%), Digital Accessories (13%), Timewear (8%)

41. Camlin looks to sell arm’s pharma business

28 sep’09 pg 4CAMLIN, the maker of a popular range of stationery products, is exploring options to sell the pharmaceutical businesses of subsidiary Camlin Fine Chemicals, in a bid to focus more on the chemicals business that has seen growing applications.    The 74-year-old Mumbai-based group, controlled by the Dandekar family, has been one of India’s earliest makers of active pharmaceutical ingredients, or API, and among the first to ride the wave of Indian expertise in pharma research.    “It’s not as if we would be selling the API business immediately,” managing director Ashish Dandekar told ET. “But, yes, this business is not growing and we are more focused on fine chemicals, which now accounts (for) more than 80% of our revenue. So we are looking at all options,” he said.

42. Animation, gaming jobs set to double by 2012: Nasscom

Global Cos Plan To Move Jobs To India To Spur Employment Opportunities Here utanuka Ghosal KOLKATA 28sep’09 pg 4   THE animation industry is likely to have the going good in respect of jobs. Nasscom’s projections suggest that employment in this sector will double from 14,700 now to 29,500 by 2012. Similarly, the gaming industry too will create a huge number of jobs in the next three years, with the projections being 10,700 jobs by 2012 from a meagre 2,300 people now.    Responding to a ET questionnaire over phone from Delhi, Sangeeta Gupta, vice-president of Nasscom said: “The animation and gaming industry in India has immense scope to grow. Given the financial meltdown, many western countries are actively looking at destinations like India to develop animation content within moderate budgets. The increased interest of Bollywood and the regional cinema industry for animation, has boosted growth also. The Indian animation industry has moved from a pure offshore model to co-production model. While the domestic sector contributed with manpower and infrastructure, international producers helped with marketing and distribution.”

43. HUL takes Eureka Forbes to court over Aquasure ad

Claims Rival’s Ad Shows Its Mascot For Pureit In A Demeaning Manner 28sep’09 pg5   HINDUSTAN Unilever (HUL) has taken Eureka Forbes (EFL) to court for creating an advertisement for Aquasure that allegedly shows its mascot for Pureit in a demeaning manner.    HUL has approached the Bombay High Court alleging that EFL is disparaging its

water purefier brand Pureit through a commercial for Aquasure. HUL has asked the court to restrain EFL from broadcasting the TV commercial. Eureka Forbes is the market leader in the water purefier segment.    The Aquasure commercial shows a blindfolded lady being handed a glass of water by a man in yellow raincoat (the Pureit ‘mascot’). After a sip, the lady spits out the water saying “shee chlorine...swimming pool jaisa pani”. Then, TV actor Smriti Irani enters the frame, takes off the blindfold and hands another glass of water to the lady saying, “aankhen kholiye, chlorine se bachiye”, while the man in the yellow raincoat is shown cowering away from the scene. Both parties refused to comment on the case since “the matter was subjudice”.

However,

44. Cos eye mobile bills for ad space ADVERTISERS SEE POST-PAID USERS AS PRIME CUSTOMERS 28 sep’09 pg 6   USED to the adline tagged on your railway ticket, electricity or LPG bills? Well, brace up for the next level of interactive ads. This time, it’s the ubiquitous mobile that’s emerging as a prime medium for linking the gap. And, savvy advertisers are warming up to its potential.    For instance, Mahindra & Mahindra (M&M) used mobile interactivity through railway tickets to create a buzz around its new 2-wheeler brand ‘Flyte’, while BSNL used it to reach out to potential broadband customers. Small wonder, Axis Ad-Print Media, a pioneer in personal media services which specialises in pre-printed stationery for various utility bills, is now devising a communication strategy around mobile phones.    “We are trying to customise personalised media. We’ve already created substantial reach across some 14 crore households through utility bills. Now, we are trying to link the gap with mobile phones,” Axis CEO Amit Dey told ET. Mr Dey came on board recently to spearhead this effort, fresh from his stint as head of sales for Europe and Americas at OnMobile, an Infosys-backed mobile services start-up.

45. PepsiCo installs biogas plant at Pune unit 28 sep’09 pg 6PEPSICO India has installed a biogas plant at its Frito-Lay manufacturing unit at Pune. The company is now directly using this gas for the production of its snack product Kurkure. The company commissioned the plant in June this year and is now running at full daily capacity.    Rajeev Kumar, VP, Operations, PepsiCo India said, “The plant produces enough biogas for two processing lines. We have stopped using LPG on those two lines, where we produce Kurkure, out of the seven lines. The plant produces 2200 million cubic meters of gas a day, substitute 200 tonnes of LPG annually.    It also reduces our carbon emissions by 600 tons annually. The Pune plant is the first one across Frito-Lay’s global operations to use biogas.”The Pune manufacturing unit produces the entire range of Frito-Lay’s snacking products Lays, Kurkure, Cheetos, Uncle Chips and the recently launched biscuit brand Aliva.    The unit also generates 10-12 tons of bio-degradable waste daily, comprising potato peels, extra burnt chips, green potatoes, etc, which was earlier disposed off as waste and will now be used in the biogas plant. Installed at an investment of Rs 3.5 crore, the plant will save the company its annual expenditure of Rs 1.5 crore on waste disposal.

46. 3G spectrum winners will also be allowed 2G entry

Centre Gives In To Foreign Telecom Firms’ Demand 29 sep’09 pg 1A KEY document prepared by the Union telecom ministry says successful bidders for third generation (3G) spectrum will also be allotted 2G airwaves, conceding a major demand of foreign telcos looking to take part in the 3G auctions.    The Information Memorandum (IM), set to be released to potential bidders in a couple of days, says new entrants that successfully bid for 3G frequencies will also be eligible for 2G spectrum, used by the current crop of mobile service providers in the country.    The document, which contains details of the 3G auctions scheduled for December 7, however, says the allocation of second generation airwaves will be ‘subject to availability.’ ET has accessed a copy of the document.    The 3G spectrum is essential for offering value-added services such as video conferencing and ultra-fast internet on mobiles, interactive gaming and high-speed downloads. Currently, only state-run telcos BSNL and MTNL offer 3G services in the country.    Global telecom companies, which do not have a presence in India, have so far maintained that they would not enter the 3G race here unless they are allowed to offer full-fledged mobile services.    But this concession may not ensure the participation of foreign telcos. “We will require more information on the terms of the licence and clarity on clauses such as ‘subject to availability’,” an executive with an international telco said.    The telecom department (DoT) can allot fresh 2G spectrum in many circles, only if the defence forces vacate the same and existing operators are already waiting for fresh allotments, he said, requesting anonymity.    There are over 300 2G applications pending and foreign telcos do not stand a

chance if they are asked to join the queue, he added. So far, 2G spectrum has been given to all existing telecom operators for free, based on them meeting certain pre-defined subscriber numbers.

47. How about a bandhani saree and salwar-kameez in denim?

29 sep’09 pg 16 How do you plan to expand your market? A five-pocket jeans is not going to work for a villager. Companies need to modify the product, not just ape the Western world. Why not have salwar suits and sarees made out of denims? We need to have a connect with the consumer. You cannot just cater to the trouser-wearing women. So far, Indian companies have associated the fabric with a form. Denim is not just about jeans. That’s a Western phenomenon. But we are in India. We can have a bandhani saree in denim and a patan patolain denim. We (Arvind) have made a ready-to-wear saree for young girls who are not able to wear a saree properly. We have not test-marketed the product yet as we are keen on a denim salwar-kameez first.

48. Pepsico warms up to winter 29 sep’09 pg 16NEW DELHI: With the winter season just round the corner, global beverages major Pepsico is changing its distribution system to check a drop in its soft drinks sales during the cold season, besides working on introducing ‘winter-friendly products’ in future. “We are looking at a strategy by which we can increase our share of the total pie... The first thing we will focus on is changing the distribution system and ensuring availability of soft drinks even during the winter,” Pepsico chairman (India region) Sanjeev Chadha said. While he did not elaborate on the changes in the distribution system, Mr Chadha said the idea was to overcome the problems faced when shoppers close down or change the distributors’ mindset that soft drinks will not sell during winters.

49. Intel sees big market for Atom here 29 sep’09 pg 7   INTEL Corp — the world’s top chipmaker — expects its Atom processor to power a host of devices in the Indian market, in addition to the no-frills netbook or the nettop. These could be a mix of mobile banking devices, mobile internet devices (MID), point-of-sales terminals to even outdoor display terminals. Intel confirmed that a multitude of vendors were developing a spate of new applications in India.    Talking to ET, Intel Technology India director (marketing-south Asia) Prakash Bagri said: “Atom has the potential to power products like MID, mobile banking devices, GPS monitoring devices, personal healthcare gadgets, point-of-sales terminals, and even outdoor display terminals. “Atom fits well in the embedded space and devices, which deliver internet-centric experience or needs to be powered by internet. A lot of such devices are under development and may hit India soon,” said Mr Bagri.    Elaborating, Mr Bagri said at least 35 vendors are developing MIDs with Atom. “MIDs have a huge potential in India, once there is availability of a robust mobile

data network. This will be possible when 3G and Wi-Max services comes into full play,” he said. Incidentally, it has just globally unveiled the Atom processor CE4100, the newest system-on-chip designed to bring internet content and services to digital TVs, DVD players and set-top boxes.

50. Bosch will supply security systems for Games

ET NOW 29 sep’09 pg 7THE Commonwealth Games are yet to begin, but Bosch Security Systems has already managed a victory. The company has been chosen to supply the security systems for the Games. Bosch Security Systems is a division of Bosch with revenues of Rs 150 crore in India.    According to Bosch Security Systems, following last year’s terror strikes in Mumbai, both the public and private sectors have begun taking security more seriously and a lot of new players are now entering this segment.    “There is a scramble in the market place, everyone wants to get into the security business. There is a good potential, its like a big gold rush,” said Dhiraj Wali, vice-president, Bosch Security Systems. Bosch did not divulge the size of the Commonwealth Games order.

51. Tata Tele-BSNL sign 15-yr infra sharing deal

30 September

Tata Teleservices Ltd (TTSL) today joined state-owned BSNL for sharing infrastructure across the nation, in a first such partnership that would help the private firm expand its GSM network expeditiously.

After signing the 15-year deal, Tata Tele said: “This is amoment of pride for us, as we have become the first private telecom operator to enter into such a strategically important agreement with BSNL, one that will allow us to expand our telecom footprint across the country much more quickly.” TTSL, however, declined to give financial details of the deal. “The agreement, which is valid for 15 years, will be applicable to both TTSL and TTSL (Maharashtra) Ltd in all of India’s 22 telecom circles,” TTSL’s Legal and Regulatory Affairs President Madhav Joshi said.

The deal comes at a very strategic time for Tatas as the company is in the process to launch its GSM mobile services under the Tata DoCoMo brand name, and BSNL has infrastructure assets across the country — the largest for any telecom firm.

52. Puma on a new track in India: Kidswear

It is proving third time lucky for Puma, the German sports and lifestyle brand, in India. Despite being one of the first international players to have entered the country in the early 90s, Puma came into its own only in 2006 when it took charge of

its manufacturing and also stepped up efforts to come up with its exclusive stores.

It is now ready with its line of kidswear as well, which it launched on Wednesday. “Kidswear, which has been there internationally, would complete the range for us in India. It would be a take-off on our adult range of apparel, footwear and accessories,” says Puma India Managing Director Rajiv Mehta.

But Puma’s presence in India did require course corrections since the time it entered the market. While its tie-up with Carona fell through in 1998, its second foray in 2002 could not be sustained either. It had licensed Planet Sports to manufacture its apparel and accessories and distribute its footwear and eyewear. Observers say that in both the instances, quality became the bone of contention.

In 2006, the brand finally took the plunge and set India which wielded more control over local manufacturing and imports. “Despite spending less time in the market, we have been able to clock as much revenues as some older players. On a percentage basis, we are more profitable than many others,” asserts Mehta. Puma has already managed to increase the number of its exclusive stores from 45 in April to 64 by September.

Its latest diversification in a Rs 5,000 crore market that is growing at 15 per cent will be with a partner which knows the Indian kids market well. While Puma will keep production and imports under its control, the distribution will be through Giny aged by proing such as Rs 2,000 for a Tshirt.” Puma’s range will feature mid- to premium products, priced from Rs 399 upwards.

53. ANZ bank to buy rest of ING venture for $1.5 billion

25 September Australia & New Zealand Banking Group Ltd agreed to buy ING Groep NV’s stake in their life insurance and wealth management venture for A$1.76 billion ($1.5 billion) in the bank’s biggest acquisition since 2003. Australia’s fourth-biggest lender will pay cash for ING’s 51 percent stake in ING Australia and ING New Zealand, the Melbourne-based bank said in a statement today. Amsterdam-based ING, which received a¤10 billion ($14.6 billion) lifeline in October from the Netherlands, will book a profit of ¤300 million from the sale, it said in a statement. Australian banks, which remained profitable throughout the financial crisis, have raised capital via share sales to help fund asset purchases from distressed sellers. ANZ Chief Executive Officer Mike Smith, who previously headed HSBC Holdings Plc’s Asian division, in August agreed to buy Royal Bank of Scotland Group Plc’s units in six Asian countries. “ANZ is taking advantage of the retreat by international banks,” said Tim

Schroeders, who helps manage about $1 billion at Pengana Capital Ltd in Melbourne. The deal is “symptomatic of a very healthy domestic banking sector.” ING, which is seeking to raise funds to repay the Dutch state, and ANZ merged their insurance and wealth management divisions in Australia and New Zealand in 2002.

54. Olympic medallist Vijender’s boxing reality show still on

25 September In what may come as a big boost to sports management firm Percept and production house Bull Dog Entertainment, their recently announced reality action boxing series The Contender —featuring Olympic bronze medalist Vijender Singh —will still be produced, despite the legal row with Singh’s sports management firm, Infinity Optimal Solutions (IOS). IOS, the Delhi-based sports management firm handling Singh since 2005, had obtained a stay order from the Delhi High Court recently, restraining the ace boxer from entering into any commercial activity with Percept or any other entity. However, all parties involved — IOS, Percept, Bull Dog Entertainment (the rights holder for The Contender and Vijender Singh — are likely to resolve the matter, sources close to the development said. IOS took legal recourse after Bull Dog Entertainment and Percept Talent Management (PTM) announced the launch of T he Contenderboxing series featuring Vijender Singh as its anchor, without involving the IOS. After this, IOS went to the Delhi High Court, alleging a breach of contract by Singh. To make matters worse for the world No 2 boxer, PTM had announced amulti-crore image management contract with Singh that would make him one of the richest non-cricket sportsperson in the country. But this, too, happened without the involvement of IOS. “The series is on for sure. Whatever legal issues exist are between Singh and IOS, we are going ahead with the show. It is in the pre-production stage now. We should launch it in early 2010 or postIPL next year,” Bull Dog Entertainment Vice-Chairman and MD Akash Sharma told Business Standard.

55. Provogue talks to FMCG firms for distribution joint venture

25 September

Apparel maker and retailer Provogue India is in talks with fast moving consumer goods companies (FMCG) to form a joint venture to distribute its bodycare products across the country, a top company official said.

Though the official refused to name the companies it is talking to, FMCG companies

such as Godrej, Hindustan Unilver and Marico can fit the bill, as they already have presence in bodycare and large distribution capacities in the country, analysts said.

Separately, sources said Kishore Biyani’s Future Logistics is also planning a foray into the distribution business, for which it is talking to a few companies.

Currently, Provogue sells hair gel, body spray and other accessories under its own brand name in its stores and select outlets of Shoppers Stop’s department stores. The distribution JV is expected to help it gain better market share and expected to give Rs 50 crore in revenues in the next couple of years, the official said.

“We have capabilities in the bodycare segment and we want to expand this area through a joint venture with distribution companies,’’ said Salil Chaturvedi, deputy managing director, Provogue India.

56. Johnnie can take a walk, Bagpiper to be No.1

Party’s Over For Diageo Brand As Mallya Whisky To Top Global Sales By Year-End ET 30 sep’09 pg 1AS LAID-OFF workers at the Scottish home of Johnnie Walker drain the bitter cup, India’s United Spirits is preparing to raise a toast to a whisky named in honour of a Scottish highland tradition — the Bagpiper.    It is widely expected that at the end of this year, when the numbers are totalled, Johnnie Walker’s iconic Striding Man will not be striding at the head of the band of the world’s top-selling whiskies. The Bagpiper, walking with a little extra swagger in a ceremonial Indian dress complete with a turban, will be leading the party.    In Kilmarnock, which will be losing its nearly two-century-old link with the brand because of Diageo’s decision to shut the plant in the western coastal town, the workers are almost gleeful that Johnnie Walker will be overtaken by a Johnnie-come-lately.    “We wish Bagpiper every success for the future and hope their sales continue to rise and rise. And we want to know if Bagpiper can give 700 desperate folk a job,” Scottish tabloid Daily Recordquoted shop steward Georgina Cunningham as saying earlier this month. United Spirits, part of the Vijay Mallyaowned UB Group, says it expects to sell 17 million cases of Bagpiper whisky in the fiscal to March. Johnnie Walker sales during the same period are projected at 16.8 million cases.    In 2008, Johnnie Walker sold 16.3 million cases to 15.4 million by Bagpiper. Sales of the Indian whisky have been growing at 10-11%, United Spirits said, while the scotch brand’s volumes grew by 4% in the fiscal to June 2009, according to Diageo.    “Bagpiper’s strong growth has been achieved on the back of the investment in the brand, the consistent quality it has delivered to consumers and the imagery which has been spruced up by an English design house,” United Spirits president and MD Vijay Rekhi observed.    A Diageo representative said Bagpiper is an important brand in India but there is no direct comparison between it and the “world’s best-selling Scotch whisky brand.”

Bagpiper sales stood at £450m globally in 2008

57. PE hunger to exit may see Domino’s float IPO

JP Morgan’s Failure To Find Buyer Prompts Move ET 30sep’09 pg 1THE Indian franchisee of Domino’s Pizza plans to come up with an initial public offer (IPO) to allow private equity investor JP Morgan, which owns 33% in the company, to exit the fast-food chain, three persons familiar with the matter said. The Delhi-based Jubilant Group owns 67% stake in Domino’s Pizza India, which will become the first restaurant chain in the country to be traded publicly if the share sale goes through. The chain’s parent, the US-based Domino’s Pizza, doesn’t hold a stake in its Indian franchisee.    The details of the proposed IPO are not known. JP Morgan did not respond to an e-mail sent by ET. Domino’s Pizza India CEO Ajay Kaul also declined to comment. “We cannot talk on behalf of JP Morgan. An IPO is one of the options we are looking at, but it is for the private equity partner to decide,” said Shyam Bhartia, co-promoter of Jubilant Group.    JP Morgan is looking at exiting Domino’s Pizza through the primary market route since it has not been able to find a buyer at the valuation it wants, an executive at a private equity firm said. Besides, covenants and rights enjoyed by a first investor may not be transferable through a share sale to an investor without the consent of the Indian partner.    In 1999, Indocean Capital, an affiliate of JP Morgan Partners, had picked up a 25% stake in Domino’s Pizza India, which was subsequently increased to 33%, a person close to the deal said.    Eating out and home delivery of fast food in the country has increased in the past few years.    Today, about 30% of working singles eat out at least once a month and a majority of them spend Rs 101-150 per meal, according to the Food Franchising Report, 2009, prepared jointly by Ficci-CIFTI and Franchise India Holdings. This has led to an increase in private equity deals in the restaurant space. Chain plans to add 70 stores this year.

58. MindTree to acquire Kyocera Wireless’ arm

ET 30 sep’09 pg 7MUMBAI: Software major MindTree said it would acquire Bangalore-based subsidiary of Kyocera Wireless by making an upfront payment of $6 million, while further payments would be linked to revenues in the next two fiscals. “We expect this acquisition to contribute approximately $9 million in revenues for the period of October 2009 to March 2010, with profit after tax (PAT) expected to be in the range of 13-15%,” MindTree said in a regulatory statement. Kyocera Wireless employs about 600 people in its development centre in Bangalore. —IANS

59. L&T expects Rs 8k-crore revenue from nuke business

30 sep’09 pg 7ENGINEERING and construction company Larsen & Toubro (L&T) is eyeing big bucks from the nuclear power business with annual revenue projections of Rs 7,000-8,000 crore, once India launches its ambitious nuclear power capacity addition programme. The company, which has already entered into agreement with four major global vendors of nuclear power equipment, has also initiated talks with French technology company Areva for a possible nuclear power plant development agreement.    “There are only five major nuclear power reactor makers in the world. We have already teamed up with four and are looking at similar arrangement with Areva to complete the chain,” L&T CMD AM Naik said. L&T already has a relationship with the French company that has recently given it orders for spent fuel canisters meant for export markets. Over the past year, L&T has signed co-operation agreements with GE Hitachi of the US, Atomstroy Export (ASE) of Russia, Toshiba Westinghouse of the US and Atomic Energy of Canada (AEC).

60. World’s first chopper city in Guj 30 sep’09 pg 22INDIA will soon be home to a hi-tech Helicopter City that promises to be a one-stop shop for all chopper-related services — maintenance, hire, overhaul, R&D, aerospace training, design and avionics.    The project will come up near Surat in Gujarat and is touted as world’s first integrated complex for chopper services. Australia-headquartered Centre for Asia Pacific Aviation (CAPA), world’s leading provider of independent aviation market intelligence, will invest around Rs 1,000 crore to develop the Helicopter City that will be part of the Rs 11,500-crore Gujarat Vittal Innovation City (GVIC), a multi-product SEZ that will come up at Umargaon near Surat.    The project will also draw global investments as talks are on with US- and Middle East-based companies. The project will include a general airport and is part of the largest single-location aviation project in the country.

61. CEOs by day, models for a cause 44 CEOS WILL WEAR CREATIONS BY TOP DESIGNERS TO RAISE MONEY FOR CHARITY 30 sep’09 pg 22   MOVE over India Fashion Week — Corporate India is now set to have its own fashion soirée, with 44 CEOs preparing to walk the ramp at the Taj tomorrow. The brainchild of Madhabi Puri Buch, managing director of ICICI Securities, the Toofles-Tag Heuer Style for Smiles Show will have heads of family businesses, MNCs, PSUs, all coming together to raise money for charity, while wearing creations by Sabyasachi Mukherjee, Wendell Rodricks, Arjun Khanna and Narendra Kumar.    One of the industrialists who will be making his debut as a model is Adi Godrej, who says, “This will be my first time. I’ve never walked the ramp before. I decided to participate because it’s a philanthropic event and because Madhabi is leading the effort.”

   Mr Godrej is not quite sure what clothes he will be wearing, but Meher Pudumjee has gone to some trouble choosing her attire. The chairperson of Thermax, who is coming down from Pune especially for the event, says she was initially set on wearing Indian clothes, but finally gave in to the organisers and switched to a western outfit by Wendell Rodricks. “I’m participating for Akanksha, which is an NGO that provides supplementary schooling to underprivileged kids in municipal schools,” she says. “They need more teaching volunteers and I hope to use this platform to get the message across.”    While the CEOs participating in the event will get a chance to help their favourite charities, Ms Buch also wants them to commit to the work being done by the Toofles Foundation, which she started last year. “We are basically a fundraising agency for other NGOs and as such, we are cause-agnostic,” she says. “We keep 10% of the money collected for administrative expenses, and give the rest to any cause the donors favour.”

62. THE DEAL IS DEAD. LONG LIVE THE DREAM

South African nationalism and India’s hesitation on capital account convertibility scupper the creation of a giant MNC from the emerging markets ET1oct09 pg 1   INDIA’S telecom czar Sunil Mittal’s dreams of forging a transnational alliance with Africa’s largest telco MTN were shattered for the second time in less than two years with Bharti Airtel and the South African company calling off talks a few hours before the expiry of the September 30 deadline after the South African government refused to soften its stance on the proposed deal structure.    “Bharti and MTN have decided to disengage from their discussions when the exclusivity period ends on September 30 2009. This (deal) structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form. In view of this, both companies have taken a decision to disengage from discussion,” Bharti Airtel said in a statement on Wednesday evening. ET NOW this paper’s television channel, was the first to break the story at 7.25 pm, even ahead of the official statement from Bharti.    The statement was issued in India even as the top management team of Bharti — chairman Sunil Mittal along with top executives Manoj Kohli and Akhil Gupta — was at an offsite in Thailand. The deal fell through, say sources, after two crucial meetings in South Africa on Wednesday — in one of these, the key representatives of the government expressed reservations about the deal and refused to budge from its earlier stance on dual listing of companies or DLC. Thereafter, the MTN board met and formally called off the deal.

63. M&M to bring engine units under one co 1 Oct 09 MAHINDRA & Mahindra (M&M), the nation’s largest tractor-maker, may combine its two engine-making units, unlisted subsidiary Powerol and the listed Swaraj Engines, under one company in a bid to boost revenues from the business, said two officials familiar with the development.    The combined entity, which may be headed by Bishwambhar Mishra, MD of Swaraj Tractors, will have a revenue of more than Rs 1,000 crore a year. Mahindra, which

owns 33% in Swaraj Engines, said it does not comment on market speculation.    The Mahindra Group, which has been segmenting businesses under different companies instead of a single company with diversified businesses, may benefit from the merger of engines divisions too as it aims to become a top global tractor maker surpassing John Deere of the US. While Powerol supplies engines to Mahindra tractors, Swaraj supplies for its namesake tractor company which Mahindra bought in 2008. The group has separate companies for various businesses such as real estate, finance, leisure and software.    Mahindra is contemplating two options, people close to the development said. The tractor maker may merge its subsidiary Powerol with Swaraj, leading to higher stake for Mahindra in Swaraj Engines. Alternatively, Swaraj Engines may sell its business to Mahindra and payout the proceeds to minority shareholders and Kirloskar Oil Engines, which owns 17% of Swaraj, leaving it a shell company.    A final decision will depend on which structure will be beneficial from a sales tax point, legal experts say.    Atul Kirloskar, MD of Kirloskar Oil Engines, refused to comment on a possible stake sale, although analysts believe the it made sense for the Kirloskars.    Swaraj Engines had a sales of Rs 208 crore for the year ended March 2009 and the net profit was Rs 21.2 crore.    “As a consolidated entity the engines and genset business will have a larger foundation to stand on and build a much larger business,” said Mahantesh Sabarad of Centrum Broking.

64. MUL now plans petrol-CNG combo CO’S R&D CENTRE IS WORKING ON INDIA’S FIRST DUAL ENGINE THAT WILL CUT FUEL BILL TO A FOURTH 1 oct’09   ENGINEERS at Maruti Suzuki’s R&D centre in Gurgaon are close to developing the country’s first dualfuel engine, running on petrol and CNG, that will shrink a vehicle’s fuel bill to a fourth, making it one of the cheapest to run anywhere in the world. The optimism is palpable at India’s No 1 carmaker, whose technicians are close to developing an engine that will use multi-point fuel injection (MPFI) technology in CNG mode — just as it does in petrol mode — eliminating loss of power and efficiency associated with current retro-fitted CNG engines.

65. Danone settles row with Wahaha, ends JV 1oct ’09 pg 8FRENCHfood group Danone settled a legal row with China’s top beverage producer Wahaha by selling out of their joint venture, as analysts speculated Danone is looking to the United States for a big acquisition.    Danone agreed to sell its 51% stake in the venture to Wahaha, the companies said on Wednesday. A source briefed on the matter said Danone was selling the stake for around € 300 million ($437 million).    Some analysts speculated that Danone could use the cash to help finance an acquisition, despite Danone’s denial on Tuesday that it was holding bid talks with US babyfood company Mead Johnson Nutrition. “The end to the dispute is good news, but... the market will no doubt think that if Danone is selling out of Wahaha, it’s to finance a big deal,” Oddo Securities said. Bankers said Mead Johnson could be a good deal for Danone, as did analysts at Credit Suisse and Goldman Sachs,

although they cautioned that any deal could be hard to pull off. Goldman Sachs analysts said a takeover of Mead Johnson by Danone, to overtake Nestle as the world’s biggest baby-nutrition company, had “a compelling strategic logic”.    However, they said a deal could be complicated by tax implications for Bristol-Myers Squibb, which spun off Mead Johnson earlier this year and still owns 83%. Credit Suisse said Mead Johnson’s Latin American and Asian businesses would be a “great fit” for Danone. Mead Johnson has a market capitalisation of roughly $9 billion, while Danone’s is of around € 26 billion.    Speculation that Danone was building a war chest for possible deals was fuelled in June when Danone raised € 3.05 billion through its first capital increase in 22 years. — Reuters

66. Car sales hit record high in Sept on festive fervour

2 oct’09 pg 1HYUNDAI, Honda, General Motors and Ford sold a record number of cars in a month in September as buyers — more confident of jobs and bonuses than last year — lapped up cheap financing schemes offered by banks flooded with deposits. But Maruti, which accounts for about half the cars sold in the country, missed the monthly record as it suspended production of the SX4 sedan.    Total car sales surged to over 1.53 lakh in September, from highest monthly sales of 1.29 lakh units reported in March this year, provisional numbers released by companies showed. “Money is coming into the system and the higher liquidity could result in even better volumes in October and set a bigger sales record in the domestic auto market,” said Ramnath Subramaniam, director (research) at capital market firm IDFC-SSKI Securities. Final numbers could be higher as some, like Toyota, are yet to report the numbers.    South Korea’s Hyundai posted its best sales in 11-year history in the country. Domestic sales grew 25% to 27,803 cars, from 22,311 cars a year ago. Exports grew 9% to 26,001 cars. Maruti sales up 11% to 6-month high “THE car market behaved differently this year with consumers purchasing even during shradh — that is considered an inauspicious period in the Hindu religion,” said Arvind Saxena, senior VP (marketing & sales) at Hyundai Motor India. “But sales actually spiraled up in the last ten days, with many of our models going off the

shelf.”

67. Grasim to sell cement biz to UltraTech Rs 9,500-Crore Deal To Create India’s Largest Standalone Cement Maker 2 oct’09 pg 1   ULTRATECH will buy Grasim’s cement division in a deal worth more than $2 billion as the Aditya Birla Group’s attempts to consolidate its cement business under one single roof reaches fruition after 11 long years.    Ultratech, 55% owned by Grasim Industries, will buy the latter’s cement plants with an annual production capacity of 22 million tonnes and issue shares worth more than Rs 9,500 crore to its parent. The transaction will create India’s single-largest entity in the cement industry. Swiss giant Holcim’s Indian subsidiaries, Gujarat Ambuja and ACC, have a combined higher capacity but do not form one corporate entity.    An AV Birla Group spokesperson declined comment.

68. Videocon eyes Finnish electronic major 2 Oct’09CONSUMER durables major Videocon Industries is in talks to acquire Finnish electronics manufacturer Elcoteq after the Helsinki-based company called off discussions with Chinese firm Shenzhen Great Wall Kaifa Technology.    A person close to the development said Videocon has signed a non-binding agreement and is looking to enter into a definitive contract by mid-November. The deal size may depend on restructuring of the company’s debt to allow it to be swapped for equity, the person said. When contacted, Videocon Industries chairman Venugopal Dhoot declined to comment. An Elcoteq spokesperson said: “We will disclose the identity of the partner within one week, maybe earlier. Prior to that, we cannot comment on any market rumours.” On Wednesday, Elcoteq announced that it had signed a non-binding agreement with what it described as ‘an Asian strategic investor’.    Videocon is looking to capture a part of the growing global electronics manufacturing services, especially in the fields of ipods, iphones and computers, as large companies such as Apple and Blackberry are increasingly outsourcing

manufacturing jobs to low-cost countries as part of their global cost reduction initiatives. The Indian consumer durables maker, which acquired Thomson’s global colour picture-tube manufacturing business for € 240 million four years ago, sees synergies between Elcoteq’s business and its existing consumer electronics and mobile operator services business, said a person close to Videocon.

69. Religare may launch health insurance by April ’10

2 Oct’09RELIGARE Enterprises plans to roll out its health insurance business by April 2010 even as it continues to scout for a foreign partner for the venture. The company is confident of completing all formalities in the current financial year, said Amit Varma, president for healthcare at Religare Enterprises. We will approach the Insurance Regulatory and Development Authority (Irda) in a couple of months for a licence to start operations, he added.    Religare Enterprises has started hiring for the proposed health insurance business and expects to appoint a CEO shortly. The company is in the process of setting up operations and is likely to appoint a new head by November, Mr Varma said.    The news of a fresh venture comes close on the heels of Religare Enterprises’ aborted joint venture with Swiss Reinsurance for health insurance. The company is now in talks with global health insurers such as Discovery Health, Cigna and Aetna for a possible tie up, learns ET. “We hope to induct a foreign partner in the health insurance venture after our proposed joint venture with the world’s second-largest reinsurer Swiss Re fell through last month,” Mr Varma said.    Religare Enterprises, which has a life insurance joint venture with Aegon of the Netherlands, had signed a non-binding term sheet with Switzerland-based Swiss Reinsurance Co to develop a health insurance joint venture earlier this year.    However, talks between the companies fell through as Swiss Re was already present in the Indian market through a 26% stake in TTK Healthcare Services, a third-party administrator in health insurance, and Religare believed that the new deal could clash with the existing Indian venture.    With a reach of just about 2% of the country’s 1.1-billion population, India offers a huge potential in health insurance market. There are over 30 health insurance products in the category offered by both life and non-life insurers. While ICICI Lombard, Bajaj Allianz and Reliance General are some of the prominent general insurers in the health insurance space, Apollo DKV, Max Bupa and Star Health & Allied Insurance are the standalone players.

70. Cisco to buy Norwegian co for $3 b 2 Oct’09CISCO has agreed to buy Norwegian videoconferencing company Tandberg for $3 billion, the latest in a series of bets taken on using video to drive demand for its core data transmission gear.    The world’s dominant maker of Web routers and switches said buying Tandberg would strengthen its position in a $34-billion market for remote business collaboration tools and help it make underused videoconferencing more useful and less clumsy.

   Cisco’s head of European markets, Chris Dedicoat, said the move would complement Cisco's high-end videoconferencing service TelePresence. — Reuters

71. Taro drags Sun to court again ET 1 Oct’09SUN Pharmaceuticals has been slapped with another lawsuit. The Mumbai-based pharma company has been sued by Taro Pharmaceuticals, the Israeli company it was trying to acquire, for alleged failure to disclose shareholder material information.    In its filings with the US District Court for the Southern District of New York on Tuesday, Taro Pharma charged Sun Pharma with failure to disclose details, including the recent action by the US Food and Drug Administration (FDA), against Sun’s US-subsidiary Caraco Laboratories. “Sun Pharma did not disclose the fact that the FDA action apparently grew out of a long pattern of failure to comply with regulatory requirements governing the manufacture of drugs at Caraco under Sun’s controlling hand nor the impact these events and other serious lapses of operational diligence and corporate governance would have on Taro, its operations, business and its shareholders, if Sun were to gain control of Taro,” the Israeli company said in its filings. An email sent to Sun Pharma did not receive a response at the time of filing this story. Taro has also alleged that Sun misappropriated confidential information about Taro gathered as part of the proposed merger transaction and that it used it to disrupt and harm Taro’s customer relationships and undermine Taro’s revenues.    Abhishek Singhal, an analyst with Macquarie, feels that this is just posturing on Taro’s side and will not be factored into the stock price of Sun Pharma. “There is already another case pending in the court in New York against the Levitt family (Taro promoters) for cheating and not honouring an agreement. What is interesting will be the decision of the Israeli Supreme Court on the tender offer. If it rules in Sun’s favour, as the lower courts did, then Sun will have a strong wicket to stand on. The fact that Sun has not tendered in their shares at the slightly higher stock price now shows that they are confident.”

72. Brandscapes to launch health conclave ET 30sep’09 pg 6MUMBAI: With the importance of healthcare and preventive care growing in India, there has been an increasing focus on health marketing. The Economic Times in association with Brandscapes Worldwide is launching the first Health Marketing Conclave in India. An initiative of ‘Times Grey Cell’, the conclave comprises a conference on October 6 in Mumbai, followed by a workshop on October 7 and 9 in Mumbai and Delhi, respectively.

73. Toyota to recall 3.8 m vehicles in US ET 1 Oct 09DETROIT/WASHINGTON: Toyota Motor said it will recall some 3.8 million vehicles in the United States because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people. The recall includes the hot-selling Prius hybrid and would be the largest ever for Toyota, which has built a reputation for safety and quality that helped it surpass

General Motors as the world’s top automaker last year. The recall also comes at a critical time for Toyota as it scrambles to squeeze spending to bounce back from record losses forecast this year amid a broadbased slump in car sales.

74. Insurance sector IPO norms ET 2 Oct ’09NEW DELHI: Irda is likely to come out with IPO guidelines for insurance companies by October end. “The IPO guidelines, which will standardise the norms for calculation of embed-ded value of the insurance companies, may be finalised by October end ” IRDA Chairman J Hari Narayan told reporters on sidelines of a CII function in capital on Monday. IRDA is also considering an appli-cation made in July by Reliance Capital's insurance unit to go public before the normal 10-year qualification period. India has 22 life insurance firms and 21 non-life insurance companies operating in the country. "Guidance note on valuation has to come from the Institute of Actuar-ies and this is likely to come in the next 10-15 days.We are also working on disclosure norms for insurance companies that will work in the larger interest of the public,” Mr Narayan added.

75. DMRC daily income Rs 1 cr 2 Oct ’09

NEW DELHI: Delhi metro’s average daily income crossed Rs 1 crore in September 2009 for the first time since it became functional in December 2002. “Delhi Metro’s average daily earning during September was Rs 1,00,27,877,” said an official in the DMRC. The Dwarka Sector 9 to Yamuna Bank corridor earned the highest revenue of over Rs 41 lakh daily while the route from Dilshad Garden to Rithala generated Rs 31 lakh.