RBI PROJECTS HIGHER INFLATION EVEN AS RISKS TO

GROWTH EMERGE There were no surprises in the Reserve Bank of India‘s (RBI) mid-quarter review of monetary policy on Thursday. That is seen from the behaviour of the rate-sensitive sector indices in the stock market. The index that fell the most on Thursday was the Bombay Stock Exchange‘s (BSE) FMCG index, followed by the IT index. The rate-sensitives didn‘t do too badly. True, BSE‘s auto index also fared badly, but that was mainly on account of Maruti Suzuki India Ltd, which was beaten down on fears of a strong

yen. Clearly, a 25 basis points (bps) hike in the repo rate had already been factored into prices. Indeed, the BSE Bankex is actually up a bit this week. A few analysts believe the revision of the expected inflation rate to 8% in March from 7% earlier is an indication of hawkishness on RBI‘s part. We would think it‘s merely an acknowledgement of reality. Nevertheless, it does underline the fact that high inflation is not going to go away in a hurry.

The headline inflation number for April may be lower, thanks to a high base, but that base effect is going to wear off soon, as inflation fell from 10% in July to 8.8% in August. Add to that pressures due to higher crude oil prices, with reports saying that retailers are facing losses of Rs15.79 per litre of diesel sold. The chances are the government will soon be forced to raise diesel rates, perhaps after the state elections. And then we have the pressures on the core inflation in non-food manufactured products—the RBI review says, ―Producers are able to pass on higher input prices to consumers‖—in other words, they now have pricing power and will pass on higher input costs. Small wonder then RBI‘s guidance says it is likely to persist with the current anti-inflationary stance, which means more rate hikes in future. How much more? Taking the one-year OIS (overnight indexed swap) at the current rate of around 7.4%, or around 65 bps more than the current repo rate of 6.75%, which means the market is expecting a further 50-75 bps hike in the repo rate over the next year.

At the same time, RBI has also acknowledged that risks to growth are emerging, in particular in investment demand. It says that the pace of credit growth has moderated since December. And finally, RBI echoes the widespread scepticism about the projected fiscal deficit for the year, when it says ―this will materialize only if commitments to contain subsidies are adhered to‖. For the equity markets, the central bank‘s review offers little comfort, as it paints a picture of both high inflation as well as challenges to growth.

“Progress is often

equal to the difference

between mind and

mindset.”

INSIDE THIS

ISSUE:

RBI’s MID QUARTER

REVIEW

CORPORATE watch

ECONOMY watch

INDUSTRY watch

FACT OF WEEK

INTERVIEW

ZARGONOMICS

ENTREPRENEUR

ANSWERS TO BIZ WIZ-9

THE DERRICK

CORPORATE WATCH

INDIA WILL BE KEY PART OF TOYOTA'S GLOBAL VISION PLAN Toyota Kirloskar Motor's recent move to increase capacity at its Bangalore facilities is keeping in line with its parent's global vision for emerging markets. The idea is to generate demand from region-specific models which will include compact cars, and vehicles such as the Innova and Fortuner from the IMV (innovative international multipurpose vehicle) platform. The company has earmarked a bigger script for India which will be the launch pad for the Etios compact in June. Brazil would see something similar where India will supply transmissions as part of the global business plan for the Etios. This is precisely what Toyota had done with the IMV model where Thailand,

Indonesia, Argentina South Africa are its production hubs which met the needs of over 100 countries. It is only natural that India will take the role of the lead country for the Etios given the sheer size of the compact market here coupled with the benefits of low costs and high quality. In fact, exports could also be envisaged to South Africa while Brazil will cater to Latin America. In its global vision plan for 2015, Toyota has its goals set for each region from Japan, China, Europe and North America to Asia/Oceania and West Asia/Latin America/Africa. There will be greater levels of self-reliance in North America while Asia/Oceania will be key to product development, specifically the IMV and compact car programmes. The rapid growth of China and India has also convinced carmakers that they need to adopt region-specific strategies if they have to succeed. The Etios is, therefore, an important chapter for Toyota as it sets about building a base in the Asia-Pacific region with Latin America to follow in due course. Its Japanese counterpart, Honda, is also in the same trajectory with its Brio compact scheduled for launch in Thailand and India in the coming months.

CORPORATES TAKE TO REBRANDING TO REACH TARGET AUDIENCE

Rebranding has becoming a strategy for the cororates to reach the target audience. The youth is an important customer base, but there are other motives too. Companies are aiming create a unified brand identity among global customers, employees and stakeholders because of their diverse businesses. Companies are also battling clutter by distancing themselves from competitors and this is done by changing the logo or going green. Companies also view rebranding as effective tool to draw talent and customers. A new brand is also a springboard to respond to trouble. The Tata Nano, for instance, ditched the 'people's car' tag to portray itself as a vehicle that is more affordable and durable. Nano is also trying to shed the bad press it got after many of the cars caught fire. Indian companies expanding overseas think a new image is key to their growth plans. Telecom powerhouse Bharti Airtel, for instance, rechristened itself as Airtel last year after it acquired Zain's operations in Africa and Warid Telecom in Bangladesh. The company's aim was to create a 'new, modern, more friendly and accessible' image in the minds of all users in these countries. Rebranding exercises typically cost between Rs 100 crore and Rs 300 crore. However in most cases it is a painstaking effort as companies have to first take employees and customers into confidence before execution.

VODAFONE STILL BELIEVES NO TAX TO PAY

Vodafone continues to believe that it had no tax liability over its 2007 purchase of Hutchison Whampoa Ltd's mobile business in India. Vodafone, which has been fighting a $2.5 billion tax bill in India over the deal, stated that its position had not changed with regard to the tax case. Every adviser they have consulted, both during the transaction and since, is in common agreement that no tax liability should arise. India's Supreme Court will hear the tax case on July 19 and Vodafone stated it would continue to "defend its position vigorously."

RELIANCE POWER GETS 5 HYDEL PROJECTS IN HIMACHAL PRADESH

Corporate giants like Reliance Power and Tata Power-SN Power joint venture have been allotted hydropower projects in Himachal Pradesh. However, other companies like Larsen and Toubro (L&T), Essar Power, Moser Baer and GVK Energy did not get any project. Reliance Power has got five out of the 18 projects for which global bids were invited by the state. One project was withheld by the government as there was only one bidder. Reliance Power was allotted the 300 MW Purthi, 94 MW Teling and 44 MW Shangling, all in Lahaul and Spiti district, 130 MW Sumte Kothang and 104 MW Lara Sumta projects in Kinnaur district. Tata Power-SN Power was allotted the 236 MW Dugar project. The other companies that got hydropower projects in the state are Capital Consortium, BMD, ABG Shipyard , AMR Mitra Joint Venture, Bell Spun Energy, Green Infrastructure and BLA Industries. The allotted projects would generate power with an aggregate capacity of 1,325.5 MW. Himachal Pradesh has abundant water resources with a power potential of about 23,000 MW. About 6,672 MW have been harnessed till now by the central and state governments, private players and joint venture companies.

CANON INDIA TO SELL 1-LAKH DIGITAL SLR CAMERAS IN 2011

In a sign of maturity of the Indian photography market, segment leader Canon is targeting to more than double the sale of high-end digital SLR cameras to 1 lakh units this year. The company's President and Chief executive in India stated that company is planning to sell one lakh units of digital single lens reflex (SLR) cameras, which accrue in higher revenues. Courtesy the good numbers expected from DSLRs, the company has also set a higher target for its overall revenues from India. The company also sells printers and photocopiers. Canon controls over 50 per cent of the DSLR market presently and the average cost of a single unit's sale is Rs 40,000 in the category as compared to around Rs 7,000 in the lower end consumer digital cameras. The company's entry level offering retails at around Rs 22,500 and over 70 per cent of the cameras sold will be in the entry level category.

HCL INFOSYSTEMS SURGES NEARLY 7% ON WINNING IAF ORDER

Shares of IT hardware firm HCL Info systems on Friday jumped by nearly 7 per cent in the morning trade on BSE after the company bagged an Rs 300-crore order from the Indian Air Force. The company's stock advanced by 6.61 per cent to Rs 108 on Bombay Stock Exchange, while on National Stock Exchange the stock surged by 7.23 per cent to Rs 109 a piece. The company, had (on 18th March, 2011) received an order from the Indian Air Force to deploy Wideband CDMA-based portable wireless network. According to the deal, the WCDMA network will provide backbone connectivity and ensure video interactivity for video calls, cross connectivity with other communication platforms like IP-based communication within the Air Force Network.

HYUNDAI RECALLS 190,000 CARS IN US

South Korea's largest automaker, Hyundai Motor Co., has recalled 190,000 cars with faulty airbags in the United States, Yonhap news agency report revealed. Hyundai recalled 190,000 Elantra passenger cars sold between 2006 and 2008 in the US as they have defective airbag sensors. The recall is expected to begin next month and recall repairs will be provided at dealer service centres.

CAIRN HEAD SAYS SEES VEDANTA DEAL DONE BY APRIL 15

Cairn Energy stated that it was hopeful of concluding a long-delayed deal to sell its Indian assets to Vedanta Resources by April 15. Cairn Energy agreed six months ago to sell up to 51% in its Indian unit to Vedanta, but the deal has been delayed as the government looks into issues of royalty payments. The row has reached the cabinet which will rule on the matter. The company will stick to the April 15 deadline. Bill Gammell, CEO of Cairn Energy stated that it's in the government's hand and the government has to take a decision.

LOSS-MAKING COMPANIES WANT PF RELIEF

Confederation of Indian Industries (CII) has sought a relief from Employees' Provident Fund Organization (EPFO) for loss-making companies that run their own PF trusts. As per the rule, companies that run their own PF trusts would not get exemption if they are in the red for three consecutive years. Several firms, including a well-known oil company, have urged EPFO to extend the benefit. But, PF officials say, the organization will not accede to the request. Representation from CII and from several companies has argued that though they are making losses for three years, the workers' monies are safe. However, PF officials stated that they have made it clear to all the companies and also to CII that such a request is not in the interest of the workers. As many as 2,775 companies, called exempted establishments in PF parlance, enjoy a special status under which the money from their employees' provident fund is not given to EPFO, instead invested through trusts formed by the companies. The exemption, however, can be withdrawn if a company makes losses for three years. EPFO suspects that the loss making firms may dip into employees' dues because of financial constraints.

VOLTAS TO FORM JV WITH GERMANY'S KION GROUP

Air conditioner maker Voltas has signed an agreement with Germany-based Kion Group to establish a joint venture in India for developing and servicing industrial trucks and warehousing equipments. Voltas' material handling operations will be integrated into a new joint venture company, where Kion Group will hold a majority share. The new firm will be named Voltas Materials Handling (VMH) and is expected to start operations from April, 2011.Kion has know-how and technological leadership in the forklift truck business, so the partnership will help VMH further consolidate its leading position in India.The Tata-group firm said the joint venture will focus on the Indian market with a product range that includes

diesel/LPG and electric trucks with load capacities of 1.5 to 16 tonnes. The JV firm plans to have 25 branches and dealerships all over India. The Voltas brand will continue to expand its product range, particularly in the warehouse-equipment sector. The partnership will ensure long-term sustainability, and we are well positioned in the Indian forklift truck market.

TPG, SHRIRAM GROUP ACQUIRE VISHAL RETAIL FOR RS70 CRORE TPG Wholesale Pvt. Ltd, a subsidiary of TPG VW Ltd, and Airplaza Retail

Holdings Pvt. Ltd, a company owned by the Shriram Group, have completed their

acquisition of debt-ridden Vishal Retail Ltd. The TPG-Shriram combine paid Rs70

crore to the erstwhile chairman and managing director of Vishal Retail, Ram

Chandra Agarwal, for the transfer of all assets, rights, and interests, inventories,

cash flows, store leases and liabilities, the company said on Monday in a stock

exchange filing. Vishal shares rose nearly 20% to close at Rs37.55 on Monday on

the Bombay Stock Exchange even as the exchange‘s bellwether equity index, the

Sensex, rose 1.55% to close at 18,455.69. Attempts to fund its ambitious expansion plan with borrowings

left the retailer laden with debt and inventory. As much as Rs730 crore of debt was sought to be

restructured.

The completion follows an announcement in September 2010 when Vishal‘s board approved a Rs100 crore

sale of assets and transfer of some liabilities to TPG and Chennai-based Shriram Group. The new structure

will see TPG Wholesale operate the back-end sourcing, merchandising, logistics and franchise operations,

while Airplaza Retail will operate the retail shops along with other franchisee partners currently operating

Vishal branded stores.

THE DERRICK

ECONOMY WATCH

UK BUSINESSES URGED TO LOOK AT EMERGING INDIAN CITIES

The UK and India have shared interest in getting the Doha round completed as it would not only help both the economies but also improve the world GDP by $160 billion. The negotiations on Free Trade Agreement between India and European Union were still going on, as sensitive areas need to be ironed out The sensitive issue for India is opening up its service sector for multinational companies while in this case of EU it is agriculture and textile the major ones among others. UK Minister for Trade and Investment, Mr Green highlighted the need to embrace the vast opportunities to build on the vibrant, two-way relationship between the two countries. Delhi, Mumbai, Chennai, Bengalore are already established base for business in India and beyond but many of India's emerging cities have often been overlooked in favor of more familiar cities. The Minister said that UK companies should delve beyond the traditional business hubs and seek out new opportunities in these rapidly expanding cities. These cities are Coimbatore, Mangalore, Vadodara, Visakhapatnam, Thiruvananthapuram, Kakinada, Kochi, Madurai, and Jaipur among other cities.

COMMISSION FOR FINANCIAL REFORMS GETS PM'S NOD

Prime Minister Manmohan Singh approved the formation of Financial Sector Legislative Reforms Commission (FSLRC) that will rewrite and clean up the financial sector laws in the country. The need for the commission was strongly felt, as much old legislation became complex, lengthy and ambiguous after many amendments were made to these. The council was mandated to undertake macro-prudential supervision of the economy and address issues related to inter-regulatory co-ordination. The finance minister had, in Budget 2010, proposed to set up FSDC. The government had, earlier proposed two sub-committees, one on regulatory coordination chaired by the Reserve Bank of India governor and the other, on financial stability, headed by the finance secretary.However, after RBI raised concerns; the government changed the structure and said there would be only one sub-committee headed by the central bank governor. It also replaced the High Level Coordination Committee on Financial Markets.

NPC SEEKS RENEWAL OF LICENCE FOR TARAPUR NUCLEAR PLANT

The Tarapur Atomic Power Station, the country‘s largest nuclear plant, has applied to the Atomic Energy Regulatory Board (AERB) for renewal of its licence, days after the Fukushima plant in Japan suffered a major damage following a devastating earthquake, leading to radiation leaks.The five-year operational licence of the Tarapur plant, being operated by Nuclear Power Corporation (NPC) since 1969 on boiling water reactors (BWR), expires on March 31. In India, nuclear plants are required to seek a fresh licence from AERB after every five years. After the Three Mile Island (TMI) accident in 1979 in the US, the NPC had installed an additional battery bank capable of powering for 12 hours at Tarapur. Further, it has added a 100 per cent start-up transformer to enhance the off-site power reliability. In the aftermath of the Chernobyl nuclear disaster in 1986, NPC had revised all operating procedures at the Tarapur station, added a hydrogen-monitoring system and launched full scope inspection of primary containment.

CAG PULLS UP SEBI, IRDA, 3 OTHERS FOR RETAINING SURPLUS FUNDS Government auditor CAG has rapped five regulators, including Sebi, Irda and PNGRB, for keeping their surplus funds worth over Rs2,142 crore, collected through fee and penalty, outside the government accounts. Scrutiny of the annual accounts of the 5 regulators - Sebi, Irda, Pfrda, CERC and PNGRB - revealed that they were retaining their surplus funds aggregating to Rs2,142.47 cr at the end of FY10 outside the government accounts. These five include Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority (Irda), Pension Fund Regulatory Development Authority (Pfrda),

Central Electricity Regulatory Commission (CERC) and Petroleum and Natural Gas Regulatory Board (PNGRB). The practice by the regulators are in contravention of the instructions issued by the finance ministry that all ministries and departments of the government would ensure that funds of regulatory bodies are maintained in the public account, the CAG said. The CAG report for the year ended March 2008 and March 2009 had also highlighted retention of funds by Irda and Sebi outside the government accounts.

HASAN ALI’S INCOME ROSE TO RS54,268 CR IN 6 YEARS: CAG Income of Pune-based stud farm owner Hasan Ali Khan multiplied by over 100 times in six years from Rs529 crore to Rs54,268 crore in 2006-07, reveals CAG report tabled in Parliament on Friday. Income of Pune-based stud farm owner Hasan Ali Khan multiplied by over 100 times in six years from Rs529 crore to Rs54,268 crore in 2006-07, reveals CAG report tabled in Parliament on Friday. Khan, who is presently in custody of the Enforcement Directorate (ED), has not filed returns for several years despite earning crores, Comptroller and Auditor General of India (CAG) said. His taxable income, according to the assessment made by Income Tax authorities, jumped from Rs528.9 crore in 2001-02 (assessment year) to Rs5404.7 crore in 2002-03. Thereafter, it soared to Rs54,268.6 crore in 2006-07. The report further said that Hasan Ali did not file income tax returns for five assessment years from 2001-02 to 2003-04 and 2005-07. However, he filed the tax returns for these years in May 2007 after IT

notice following search operations. Hasan Ali, 53, on Thursday surrendered before the ED after the Supreme Court cancelled his bail and remanded him to four days ED custody.

RBI HIKES POLICY RATES BY 25 BPS TO FIGHT INFLATION

The Reserve Bank of India, or RBI on Thursday increased its overnight lending and borrowing rates by a quarter percentage point each to control high inflation, which has already begun hurting the common man. The RBI hiked its repo rate or the rate at which it infuses money into the banking system to 6.75% and reverse repo rate, at which it sucks out excess money, to 5.75%. With the latest round of 25 basis point (bp) hike, the apex bank has hiked its short-term rates eight times since March 2010 to battle high inflation. One bp is one hundredth of a percentage point. Immediately after the announcement, the benchmark sensex was trading 62.11 points down at 18,296.58 points while the yield on the most traded 8.08 % government bond maturing in 2022 remained largely unchanged at 8.07%. The headline inflation, which is still above the central bank‘s projection of 7% for the fiscal year ending March, 2011, rose to to 8.31% in February, from 8.23% the previous month, defying forecasts of a slowdown. RBI has raised its projection for March inflation to 8%. Further, continuing uncertainty about energy and commodity prices may vitiate the investment climate, posing a threat to the current growth trajectory to the domestic economy, the RBI said.

ECONOMIC SURVEY FORECASTS FARM GROWTH AT 5.4% The Economic Survey on Friday pegged the country‘s agriculture sector growth at 5.4% in the current fiscal, as against 0.4% in the previous year. The survey also called for a ―Second Green Revolution with technological breakthrough in the agriculture sector‖ to boost farm output and ensure the food security of the country. The growth of the agriculture and allied sector is expected to be higher this year on the back of a revival in foodgrains production in the 2010-11 crop year (July-June) following a good monsoon. Foodgrains production is estimated to rise to 232.07 million tonnes in 2010-11 crop year from 218.11 million tonnes last year. The country is all set to harvest a record wheat, pulses and cotton crop this year. In the 2009-10 crop year, farm sector gew at only 0.4% due to severe drought in 2009, which hit almost half the country, reducing foodgrain production by 16 million tonnes.

CABINET APPROVES PFRDA BILL

The Union Cabinet gave its nod to the long-awaited Pension Fund Regulatory and Development Authority Bill (PFRDA) that aims to grant statutory status to the pension regulator and open up the sector for foreign direct investment. The Cabinet also cleared the State Bank of India (Subsidiary Banks Laws) Amendment Bill, which proposes to transfer certain powers vested with the Reserve Bank of India, with regard to its subsidiaries, to the central government. If the Bills are not introduced in the current session, they may be tabled in a special session to be convened in end of May or in the Monsoon Session (July-August). The Bill seeks to allow foreign direct investment in pension funds, in line with the insurance sector, in which FDI up to 26 per cent is allowed. The State Bank of India (Subsidiary Banks Laws) Amendment Bill seeks to amend the State Bank of Hyderabad Act, 1956 and the State Bank of India (Subsidiary Banks) Act, 1959.The

amendment will reflect the transfer of ownership of State Bank from the Reserve Bank to the central government.The Bill seeks to empower the government to fix the authorized capital of SBI subsidiaries and appoint managing directors. It will also fix the terms of office, salaries and allowances of managing directors of the subsidiaries by the government.

INDIA’S BULGING GRAIN STOCKS RAISE EXPORTS HOPES

India‘s bulging grain stocks prior to end-March harvest season make a strong case for lifting export curbs, but analysts say it is unlikely due to political compulsions ahead of state elections in coming months. At 17.2 million tonnes, wheat stocks on 1 March were more than double the 8.2 million tones target, government sources said on Wednesday, while rice stocks rose to 28.75 million tonnes against a target of 11.8 million tonnes. High food prices pose a political challenge, drawing voter ire ahead of state elections in coming months that will help determine the strength of the ruling Congress party-led coalition for the rest of its term. State-run Food Corp of India, the main grain procurement agency, buys wheat from local farmers between March and May, while it procures rice throughout the year from October.

The government buys rice and wheat from farmers to build reserves for emergency, run various welfare programmes and protect farmers from distress sale.

ADB SIGNS $250 MN LOAN AGREEMENT WITH INDIA

The Asian Development Bank (ADB) on Thursday entered into a $250 million loan agreement with India as

part of its infrastructure financing project. This is the second tranche of loan for the ongoing Second India

Infrastructure Project Financing Facility, originally approved in 2009. In 2009, ADB had agreed to provide a

$700 million multi-tranche financing facility to help IIFCL provide long-term funding for infrastructure

development. The first tranche of $210 million was earmarked to finance three subprojects for improving

roads and highways in Madhya Pradesh, Punjab, Haryana, Himachal Pradesh and Delhi NCR, besides

partially funding a power project in Kutch district in Gujarat. ADB had previously provided a $500 million loan

to IIFCL for the First Infrastructure Project Financing Facility in 2007. Of the loan, about $381 million was

disbursed for 27 road subprojects and $89 million for two international airport subprojects in Delhi and

Mumbai.

THE DERRICK

INDUSTRY WATCH

SPECTRUM TO BE RESERVED FOR DESI MOBILE TECHNOLOGIES

To encourage development of local wireless technologies, the Wireless Planning and Coordination (WPC) wing has proposed to reserve nearly 40 Mhz spectrum across various frequency bands to be used for indigenously developed telecom network products. The WPC, which controls spectrum usage in the country on behalf of the Telecom Ministry, has floated a draft National Frequency Allocation plan under which it has mapped out airwaves in four different bands including the 900Mhz, 1,800 Mhz and 1,900 Mhz frequency bands for exclusive use for Made in India products. The move is aimed at encouraging local technology companies to come up with India's own IPR in wireless technologies, thereby cutting down on imports.

Currently, almost all of telecom network technology is being imported from multinational companies such as Ericsson and Nokia Siemens. Reserving spectrum could act as an incentive to Indian companies such as Shyam Group and Tejas Networks. Mobile operators are opposed to the move given that they are faced with severe spectrum crunch in the same bands, parts of which are proposed to be reserved. The operators also viewed that it was too late to think about Indian technologies given that global players are much ahead in R&D.

INDIA AHEAD OF THE US IN ENERGY EFFICIENCY:THE CLIMATE GROUP

The market for low carbon goods and services in India could touch $135 billion by 2020 creating some 10.5 million jobs. The Climate Group‘s report – India's Clean Revolution – stated that enormous potential exists for generating new income and jobs by developing domestic renewable energy resources and clean technologies that improve the efficiency of sectors such as transport and industry. India is making more progress than the US on energy efficiency, and this market is expected to treble to $77 billion in next 10 years, the international NGO said. India now ranks fifth in the world in terms of wind energy production. Bold low carbon policies will increase India's energy independence and help provide access to energy to those who still lack it. The low cost labor and highly skilled manufacturing base will make India a major hub for clean technologies. Governments and companies around the world are waking up to the economic prospects inherent in the clean revolution. By 2020, the global markets for low carbon goods and services are expected to be worth $2.2 trillion. In the next decade, India's share of the global low carbon could balloon to $135 billion. Its compounded annual growth rate of 17 per cent is predicted to outstrip Europe, North America, China and the rest of the world. Only China and the US are likely to attract more clean energy investment in the next 10 years but the rate of increase of India's private investment (763 per cent) will be three times the rate of either of these two competitors.

TATA MOTORS TO HIKE PRICES OF PASSENGER VEHICLES BY UP TO RS

36,000

Tata Motors will hike the prices of its passenger vehicles, excluding the Nano, by up to Rs 36,000 from April 1, to offset rising input costs. Despite continuous cost control initiatives, the company is being forced to take these increases on account of steep rise in input costs. Under the revised price, the Indica will be costlier by Rs 7,000-Rs 9,000, Vista and Indigo CS by Rs 8,000-Rs 11,000 and Manza by Rs 10,000-Rs 15,000. The price of Nano will, however, not be revised. In the utility vehicles segment, depending upon the model, Sumo prices will go up by Rs 13,000-Rs 15,000, Grande by Rs 16,000- Rs 19,000, Safari by Rs 18,000-Rs 29,000, Aria by Rs 30,000- Rs 36,000 and Venture by Rs 9,000-Rs 12,000. Tata Motors launched new diesel and petrol variants of Indica, priced between Rs 2.95 lakh and Rs 3.95 lakh .Other leading car-makers, worried over rising input costs are expected to take a call on whether to hike their product prices by end-this month. Honda Siel Cars India has already stated that it would up its prices by 2-3 per cent from April 1. Car sales in

India hit a record monthly high of 1.89 lakh units in February. The February sales number is higher than the record 1.84 lakh cars sold in January. According to SIAM, India's total domestic vehicle sales in the current fiscal year are expected to grow 26-27% year-on-year.

UNDER-RECOVERIES OF OMCS MAY GO UPTO RS 98,000 CR: IIFL

If the average crude oil prices continue to remain at USD 100 per barrel in the coming months, the total under recoveries for the oil marketing companies (OMCs) will go up to Rs 98,000-crore in FY 12, a report by a brokerage firm IIFL said. With the crude oil prices touching USD 100 per barrel mark in February, the under recoveries for FY 11 is expected to touch Rs 72,000-crore. For the period April-December 2010, the gross under recoveries of OMCs were Rs 47,000-crore based on average crude oil price of USD 80 per barrel. However, so far in Q4 FY11, crude oil prices have averaged at USD 101 per barrel, which would result in gross under recoveries of about Rs 25,000 for Q4 FY11. The unrest in the Middle East and North African (MENA) countries could further push the crude prices up. The profitability and cash flows for OMCs will continue to be strained on account of uncertainty on future subsidy sharing pattern. Predictability of earnings for oil marketing companies has always been a difficult proposition considering high degree of uncertainty on subsidy sharing mechanism. We expect the government to increase their sharing to 50 per cent for the current fiscal. A decision on subsidy sharing formula will result in better earnings visibility for oil marketing companies, which will enable them to plan their cash flows better.

3 INDIAN COS IN RACE TO BID FOR BANDANNA ENERGY'S COAL ASSETS

Three top Indian companies have joined the race to bid for the coal assets of one of Australia's largest thermal coal explorers - Bandanna Energy - in a deal that could be valued at $1.5 billion. GVK, state-owned consortium ICVL and Reliance Power have shown early interest in bidding for the assets estimated to have reserves of over 1.3 billion tonnes of thermal coal. Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is March 31, 2011. An information memorandum circulated among bidders indicates that the company has $750 million worth assets.

Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India has prompted most user companies to scout global resource rich nations to tap for coal assets.

SAIL, ESSAR STEEL DENY CHARGES OF CARTELIZATION

Leading steel manufacturers SAIL and Essar Steel refuted the charges of 'cartelisation' and 'unfair trade practices', leveled by ancillary steel producers, by attributing steep hike in HR Coil prices to sky-rocketing raw material costs and stated that SAIL decide it‘s our own pricing and marketing policyThe prices of coking coal have seen a quantum jump during the financial year 2010-11 from a level of USD 128 per tonne in the beginning of the financial year to USD 330 per tonne prevailing at present To produce one tonne of crude steel it require one tonne of coking coal. It can be seen that prices of coking coal have jumped by two-and-a-half times.

AIRLINES FACE “MAJOR SLOWDOWN” DUE TO JAPAN The nuclear and earthquake crises in Japan will cause the airline industry a ―major slowdown‖ it will not start to recover from until at least the second half of 2011, industry body IATA said on Friday. The International Air Transport Association said it was too early to assess the long-term impact but with the $62.5 billion Japan market representing 6.5% of scheduled worldwide traffic and 10% of industry revenues. IATA said the most exposed international market to Japanese operations was China, where Japan accounts for 23% of its international revenues. Taiwan and South Korea were equally exposed with 20% of their revenues related to Japanese operations, followed by Thailand (15%), the United States (12 %), Hong Kong (11%) and Singapore (9%). Japan produces 3-4% of global jet fuel supply, some of which is exported to Asia, IATA said.

ENERGY DEVELOPMENT SETS UP UK SUBSIDIARY

Energy Development Company has set up a subsidiary in the United Kingdom for trading and consultancy business. The company is into power generation and various infrastructure development businesses. In a regulatory filing, the company said it has formed a wholly owned subsidiary by the name ‗EDCL (Europe) Ltd´ in the UK. The firm in a separate filing said it is in the process of acquiring five hydro electric projects having a total capacity of 56 MW. Two projects -- having a capacity of 39 MW -- are in Arunachal Pradesh, while three are in Uttarakhand. These would be acquired by way of taking over 100 percent shares holding of the SPV companies formed. Shares of the company were down over 3% from its previous close at Rs35.40 in the late afternoon trade on the Bombay Stock Exchange.

JAPAN CRISIS TO HIT DIAMOND INDUSTRY

Diamond producers like De Beers and diamantiares in India, especially in Surat were banking heavily on the

growth of the diamond jewellery consumption in India, China and other Asian nations. But, the growth

prospects are likely to be affected by the havoc in the aftermath of tsunami and earthquake in Japan.

After the effects of global economic downturn in 2008, Japan`s polished diamond import had started to show

signs of recovery with the import touching $72.4 million in January, an increase of 44 per cent from January

2010.

The January 2011 data of polished diamond import show that India continued to be Japan`s main supplier

with an export of 1.99 lakh carats diamond worth $33.1 million, an increase of 46.2 per cent by value

compared to January 2010. Belgium exported $11 million worth of polished goods followed by Israel shipping

$5.8 million worth of goods.

THE DERRICK

FACTS OF THE WEEK

1. Indian investment in United Kingdom has gathered steam as 42 Indian companies are going to enter UK in

2011.

2. State owned carrier Air India is planning to take call soon on making Dublin airport in the Irish capital its

new hub.

3. Goldman Sachs group, the world‘s biggest securities firm will buy Exchange traded funds (EIFs) specialist

Benchmark for Rs.130crore.

4. Mumbai based Jyothy Laboratories Ltd (JLL), maker of UJALA fabric whitener has acquired 15% stake in

Henkel India.

5. Vishal Retail has sold its retail and wholesale businesses to private equity firm TPG and Shriram Group

for a total cash consideration of Rs.70crore. Vishal had a debt of Rs.735crore.

6. General Electric will invest $50million in manufacturing unit in India this year.

7. Fortis Healthcare has made a tie up with US based TotipotentRX cell Therapy pvt ltd to set up stem cell

therapy centres across its select hospitals.

8. Internet giants YAHOO & MICROSOFT have made tie up to compete with Google together, the tie up is

moving beyond the technology, 200 engineers from Yahoo are working with Microsoft.

9. Financial services firm Religare enterprises gas planned to raise up to Rs.2500crore for expansion,

including investments in insurance business acquisition.

10. Nippon Life insurance, the Japanese largest Life insurance company buys 26% stake in Reliance

Insurance for Rs.3,062 crore.

11. Essar steel which has 500 outlets at present will raise its Retail Network to 650 outlets by 2012.

12. Carmakers are offering best discounts this march, Maruti is giving up to Rs.40,000 discount, Hyundai up

to Rs.45,000 and Honda up to Rs.55,000.

13. Bharti Airtel will not buy government‘s 30% stake in Hexacom as government had demanded a premium

over the Rs.1800crore base price fixed by Deloitte.

THE DERRICK

INTERVIEW

EMERGING MARKETS TO GROW STRONGER: DOUGLAS FLINT, HSBC

As chairman of HSBC Holdings, Douglas Flint leads one of only a handful of banks that survived the global economic crisis without a government bailout. Flint, 55, tells ET in an interview that the time has come for banks to return to basics — being financial intermediaries — and rebuild trust with the public and governments. The banking sector may be out of the woods for now, but it is still stalked by numerous dangers. Edited excerpts from the interview:

How would describe the state of the banking industry? Is it firmly out of the woods now?

I think we have come out the acute phase of the major issues that were problematic in 2007, 2008. So structured credit, securitisation and sub-prime in the US I think have played largely through. Maybe if the US economy were to double dip or something, then there would be further bumps. But the causes of the severe stress that took place in 2008 I think have played

through. But there are a whole bunch of different problems. Sovereign debt issues in Europe; public finances in America at municipal, state and national level; global imbalances, North Africa & Middle East political tensions; impact of a higher oil price. There are plenty of things out there to disturb what people had planned for the next few years. Do you worry that the North African political crisis could spill over into China? Is China the elephant in the room? I think what‘s happening in the Middle East and Africa is a pointer to every regime of every shape that the power of public opinion has to be respected and has to be understood. Some of the imbalances that have grown in the last decade from the benefits of globalisation and the distribution of those benefits being somewhat skewed to a small proportion of the population and between generations is clearly going to create political tensions particularly at a time when you‘ve got rising energy and food prices and in the developed world fiscal tightening and fiscal consolidation to create a platform for growth in the future. So people can quite legitimately ask the questions: So what was my share of the fruits of globalisation and growth over the last decade? And now I am going to tighten my belt so that we can grow again, what‘s my share of the fruits going forward? So I think whether it‘s in the West or in the developing world, public perception of the equity of income distribution, trade flow equality and so on will play a big part in international dialogue and domestic politics of whichever shape. HSBC is one of the few banks that escaped the crisis. What will be the shape of the banking industry? What will drive revenue growth in banks? The finance industry is there to service the economic policies of governments and to help individuals and corporates meet their personal and corporate objectives in terms of helping them finance their activities and make money and have a safe home for savings, plan for retirement. It clearly needs to make money sufficient to reward those who give it the capital so that they would continue to give it capital. And I think we have to, as an industry, rebuild the trust and reputation that was lost. So do shareholders need to expect lower returns from banks over the next few years compared with the past? Do they settle for lower profits? I think that‘s becoming a realisation. Returns will fall. You know that a lot of the high profitability turned out to be recognising profits that never existed and were written off in the years that followed. So if you normalise, returns were never that high.

Globally, regulators and governments have been much tougher. And there has been an argument that such regulations can stifle innovations that have helped the financial services industry. Do you think regulations can cut innovation in the fin services industry? The answer is yes. But that may not be a bad thing. I think when the industry says ‗you might stifle innovation‘, it‘s perfectly reasonable to respond and say that many of the innovations in the structured products area had no real utility. They were financial products designed to arbitrage the financial system. Derivatives have enabled small businesses, mid-sized enterprises and large businesses to do much more sophisticated risk management than they were ever able to do and therefore moderate their own risks. It‘s getting the balance, which comes down not to regulations but to supervision.

You were mentioning about the crisis in North Africa, rising oil and food prices. Are these issues

going to take some sheen off emerging markets?

I think there‘s a risk that must be the case. Higher oil price, rising food and energy prices will clearly lead to

economic difficulties in many of the developing markets. This will certainly put pressure on the lower-age

segments of those economies and flow through into interaction with political systems as to how to

accommodate it. So yes, I think there is a risk there that the pressures build up because of that.

Where do global companies that took a bet on developing economies stand in such a scenario?

If you are a portfolio investor and if you are running a totally free allocation, you can clearly move your money

and decide that ‗I had a good run here, I go somewhere else‘. If you are an international bank like HSBC, we

have been here for decades, or centuries. We‘re committed through the cycles. One of the proudest

moments I had, one of the moments I‘ll always remember, was when we got a dividend in January 2010 from

Argentina, 10 years after the crisis. We stayed there, we stayed through. We rebuilt the business. For people

like us, in many respects, a slowdown in certain markets may give an opportunity to build more for the long

term. I have been in this group for about 15 years, which is not much in HSBC‘s terminology. During that time

we have been through (the collapse of the hedge fund) LTCM, Russian debt default, Latin American crisis,

avian flu, Asian crisis, SARS, US sub prime crisis, a number of Middle East shocks. And we have coped

because they haven‘t all come at the same time.

A lot of growth for the emerging economies in the last few years has been because of investors in

developed markets chasing yields. Will recent political developments trigger something similar to the

Asian crisis?

I don‘t think so because the emerging economies have learnt so many lessons from the Asian crisis. There

has not been a huge induction of foreign currency borrowings. The reserve positions now of most of the

countries the world over have significantly improved from where they were. The breadth of international trade

now is much better than it was. So countries are in a much stronger position. I think that many countries have

been quicker to adopt macro prudential controls on bubbles forming. China has been doing reserve

tightening, restricting the amount of money that can be lent into property. Hong Kong has been doing the

same. I don‘t think it is going to be a repeat of the Asian crisis now.

We are in an era where Twitter, a company which has not made profit, is getting a $4.5 billion

valuation. $50 bn for Facebook. Does this situation look familiar?

They defy logic in some ways. Yet every so often there are examples of companies that did not exist 20

years ago, like Google, suddenly get enormous and very powerful. These valuations are indicative valuations

because you are extrapolating from one price what undoubtedly would be proven or not proven over time.

Clearly people have got enough information to make a judgment as to whether they think that's right or not. I

don't think that the amount of money going into that set is sufficiently large for it to have any real impact on

the real global economy. But it's fascinating, particularly in the case of Facebook, just how many customers

or people it can have interacting across its platforms. It is just an extraordinary phenomenon.

HSBC has been in India for ages. But look at your peers, particularly StanChart, the way they have

grown in this country. Will you re-look your strategy in India? Is there any bet that went wrong in

India?

We have grown organically since 1865. Some of our competitors have had the opportunity to merge, to

acquire clients. We would love to do more in India. We would love to be able to expand faster. We'd love to

have a bigger platform commensurate with our commitment to the country. We have 32,000 people and India

is in the top 10 of our countries in terms of profitability. It can easily be top 5. Easily. But obviously, we need

to have a scale of operations that would commensurate with that. So, we have all the willingness in the world

to build in India as and when opportunities would present themselves in a way we will be able to take them.

What will be the thrust areas when it comes to India? Between build and buy, assuming you get

regulations that permit both, what would be preferable?

One is just an acceleration in timing. Building is always less expensive to do, but it takes a lot longer. Buying

gives you basically the customer base already packaged and accelerates what you would have taken five,

seven, 10 years to achieve. So it is a question of what‘s the value of the acceleration in the timing. We could

look at both.

The question was more aimed at ascertaining your hunger. How hungry are you to really ramp up,

expand in a big way?

If you said choose one country in the world that you could expand into, that would be India. You can have

one pick and you can do whatever you like, it would be India. I think the scale of opportunities is huge. We

made significant investments in emerging markets in the last 15 years. In Latin America, we have made

major investments (and) in China. We have not had the opportunities to make major investments in India. We

made some investments but nothing of the scale if we had the opportunity to do. So we are hungry.

The Reserve Bank of India has said that if you convert yourself into a subsidiary, you can have all

that you spoke about. Will you do it?

That sounds a slightly more generous interpretation. I think the indications of what‘s being explored for

subsidiarisation are very interesting. We welcome the proposals. We think they are very interesting. We are

going to study them very carefully. If that is a route to achieve what we want to do, then we will certainly look

at them very very seriously.

What are the parts in the RBI’s discussion paper that you don’t like, the ones that would stop you? Is

it that you still will not have the same treatment as local banks?

In principle it looks very good. It‘s something we welcome very much. But we need to understand the detail.

But it looks good and certainly we are certainly optimistic about the opportunity it gives us to build from where

we are.

What excites you the most in these proposals? Is it the room to have more branches? Or is it

opportunity to acquire other banks?

Both. It will be terrific if we are able to open branches in key locations. And it would be good if we had the

opportunity to acquire.

Are you re-looking your retail strategy? You have taken a hit of over $350 million on your retail

portfolio in India.

We have re-looked it. We have significantly curtailed. Nobody made a great success of going deeper into

consumer lending. So we re-focused. We have a business that‘s getting to profitability, which is good.

What is the one thing that keeps you awake?

I think technology is increasingly going to be potentially disruptive to the banking industry. It doesn‘t keep me

awake at night, but I think technology is going to be a big opportunity and also potentially disruptive and

potentially a threat.

THE DERRICK

ZARGONOMY

PERIODIC INVENTORY METHOD

System of inventory control in which no continuous record of changes (receipts and issues of inventory items) is kept. At the end of an accounting period, the ending-inventory is determined by an actual (physical) count of every item and its cost is computed by using a suitable method such as FIFO, LIFO, weighted averages, etc. This amount is subtracted from the sum of purchases (or cost of goods manufactured) and the beginning-inventory of the new accounting period to arrive at the cost of goods sold.

PERPETUAL INVENTORY METHOD (PIM)

System of inventory control in which the number of units of any inventory item (and the total value of inventory) on anyday can be obtained from the stock records. In this method(1) all additions (purchases) and withdrawals (sales orconsumption) are recorded in inventory cards as they occur to provide a running balance of quantity and cost of items, (2) a certain number of items are counted every day (orweek or month) so that, by the year end, every item has been actually (physically) counted at least once. If there is any mismatch (due to human error, leakage, pilferage, loss) between the physical quantity and the quantity shown in inventory cards, the records are adjusted accordingly. Also called continuous inventory method. STAGGING

The practice of buying initial public offerings at the offering price and then reselling them once trading has begun, usually for a substantial profit. This is more commonly done by institutional investors than retail investors, because institutional investors get most of the IPO shares at the offering price. Stagging is most profitable in a hot IPO market, when the price of an IPO often rises dramatically above the offering price on the first day. also called flipping.

THROUGHPUT CONTRACT

Type of take-or-pay contract used mainly in oil and gas industry, often as an indirect guaranty for project financing. In this arrangement, a party (usually a group of producers) undertakes to pass (put through) an agreed minimum amount of material (such crude or refined oil or gas) through a processing plant (called a processingagreement) or a pipeline (called a pipeline agreement) during a fixed period (month, quarter, year).

TOLLING CONTRACT

Type of take-or-pay contract for conversion, processing ortransportation (usually through a pipeline) of raw materialor finished product. Used commonly in oil and gas industry, a tolling contract does not require the converter, processor, or transporter to purchase the input material or to sell theoutput product.

ALGORITHMIC TRADING

A form of automated trading in which computers execute trade orders based on a series of parameters, such as time, price and volume. One benefit of algorithmic trading is that it allows a company, such as a hedge fund or mutual fund, to break up an order so that the trade does not influence market price. Because computers automatically initiate the orders it is not necessary to have a person review the information.

UNDERWRITING AGREEMENT

Securities-purchase contract between an underwriter or underwriting syndicate and an issuer of bonds or shares. Among other terms, it specifies the price at which the security will be offered to the public (public offering price), underwriter's profit margin (underwriting spread), and the date by which the payments must be settled (settlement date).

SUBSCRIPTION WARRANT

A certificate, usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price, usually above the current market price at the time of issuance, for an extended period, anywhere from a few years to forever. In the case that the price of the security rises to above that of the subscription warrant's exercise price, then the investor can buy the security at the subscription warrant's exercise price and resell it for a profit. Otherwise, the subscription warrant will simply expire or remain unused. Subscription warrants are listed on options exchanges and trade independently of the security with which it was issued. also called warrant.

THE DERRICK

ENTREPRENEUR

MICHEAL DELL

Michael Saul Dell (born February 23, 1965) is an American business magnate and the founder and chief executive officer of Dell Inc. He is one of the richest people in the world, with a net worth of US$14 billion in 2010.

EARLY LIFE AND EDUCATION

Michael Dell was born to a well-off, Texan Jewish family, on February 23, 1965. The son of an orthodontist and a stockbroker, Dell attended Herod Elementary School in Houston, Texas. In a bid to enter business early, he applied to take a high school equivalency exam at age eight. In his early teens, he invested his earnings from part-time jobs in stocks and precious metals.

Dell purchased his first calculator at age seven and encountered his first teletype machine in junior high, which he programmed after school.

At age 15, after playing with computers at Radio Shack, he got his first computer, an Apple II, which he promptly disassembled to see how it worked. Dell attended Memorial High School in Houston, selling subscriptions to the Houston Post in the summer. While making cold calls, Dell observed that newlyweds and people moving into new homes were most likely to buy a subscription. He targeted this demographic group by collecting names from marriage and mortgage applications. Dell earned $18,000 that year, exceeding the annual income of his history and economics teacher.

CAREER

While a pre-med student at the University of Texas at Austin, Dell started an informal business upgrading computers in room 2713 of the Dobie Center residential building. He then applied for a vendor license to bid on contracts for the State of Texas, winning bids by not having the overhead of a computer store.

In January 1984, Dell banked on his conviction that the potential cost savings of a manufacturer selling PCs directly had enormous advantages over the conventional indirect retail channel. In January 1984, Dell registered his company as "PC's Limited". Operating out of a condominium, the business sold between $50,000 and $80,000 in upgraded PCs, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated it to a business center in North Austin. The company employed a few order takers, a few more people to fulfill them, and, as Dell recalled, a manufacturing staff "consisting of three guys with screwdrivers sitting at six-foot tables." The venture's capitalization cost was $1,000.

In 1992 at the age of 27, Dell became the youngest CEO to have his company ranked in Fortune magazine's list of the top 500 corporations. In 1996, Dell started selling computers over the Web, the same year his company launched its first servers. Dell Inc. soon reported about $1 million in sales per day from dell.com. In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, passing Compaq to become the world's largest PC maker. The metric marked the first time the rankings had shifted over the previous seven years. The company's combined shipments of desktops, notebooks and servers grew 34.3 percent worldwide and 30.7 percent in the United States at a time when competitor's sales were shrinking.

In 1998, Dell founded MSD Capital L.P. to exclusively manage his and his family's investments. Investment activities include publicly-traded securities, private equity activities, and real estate. The firm employs 80 people and has offices in New York, Santa Monica and London. Dell is not involved in day-to-day operations.

At a speech before the Detroit Economic Club in November, 1999, Dell defined the "3 C's" of e-commerce (content, commerce, and community) while articulating his strategy for offering a superior customer experience online.

On March 4, 2004, Dell stepped down as CEO of Dell Inc. but stayed as chairman of the board, while Kevin B. Rollins, then president and COO, became president and CEO. On January 31, 2007, Dell returned as CEO at the request of the board, succeeding Rollins.

Accolades for Dell include: "Entrepreneur of the Year" (at age 24) from Inc. magazine; "Top CEO in American Business" from Worth magazine; "CEO of the Year" from Financial World, Industry Week and Chief Executive magazines. Dell serves on the Foundation Board of the World Economic Forum, the executive committee of the International Business Council, the U.S. Business Council, and the governing board of the Indian School of Business in Hyderabad, India. He previously served as a member of the U.S. President‘s Council of Advisors on Science and Technology.

In July 2010 Dell agreed to pay a $4 million penalty to settle SEC charges of disclosure and accounting fraud in relation to undisclosed payments from Intel Corporation. Dell Corporation and two other company executives also paid to settle all the charges.

WRITINGS

Dell's 1999 book, Direct from Dell: Strategies That Revolutionized an Industry, is an account of his early life, his company's founding, growth and missteps, as well as lessons learned. The book was written in collaboration with Catherine Fredman.

WEALTH AND PERSONAL LIFE

As of 2010, Forbes estimates Dell's net worth at $13.5 billion.

Dell resides in Austin, Texas with his wife, Susan, and their four children.

PHILANTHROPY

In 1999, Michael and Susan Dell established the Michael and Susan Dell Foundation, which focuses on children‘s causes. By 2010, the foundation had committed more than $530 million to assist nonprofit organizations serving urban communities in the United States and India. The foundation has also provided $65 million in grants to three health-related organizations associated with the University of Texas: the Michael & Susan Dell Center for Advancement of Healthy Living, the Dell Pediatric Research Institute, and the Dell Children‘s Medical Center, as well as funding for a new computer science building on the University of Texas campus.

In 2002, Dell received an honorary doctorate in Economic Science from the University of Limerick in honor of his investment in Ireland and the local community and for his support for educational initiatives.

POLITICAL CONTRIBUTIONS

In 2004, Susan and Michael Dell were among 53 contributors of $250,000 (the maximum legal donation) to the second inauguration of President George W. Bush.

CRITICISM

In the April 2011 issue of Mother Jones, a timeline of Michael Dell's life is included in the article 'American Magnate: Michael Dell: How a homegrown geek outsources, downsized, and tax-breaked his way to the top.' The article juxtaposes the CEO's spending on luxurious homes and private jet travel with his pursuit of tax breaks and tax holidays and Dell Computer's outsourcing of jobs overseas.

THE DERRICK

ANSWERS TO BIZ WIZ-9

1. The foundations of this company were laid in 1884 by Dr. S. K. Burman. Today, it is India's

largest Ayurvedic medicine manufacturer. Which company?

Ans: Dabur India Limited

2. It was founded in New Delhi in 1983 and is today the world's second largest optical storage media

manufacturer. Which company?

Ans: Moser Baer

3. This beer company claims that it is "The King of Beers".

Ans: Budweiser

4. When consumers have a strong need that can't be met by any existing product, what is it called (term was

coined by Philip Kotler)?

Ans: Latent Demand

5. In South America, Ford once marketed a car under the name 'Pinto', but the product didn't sell. Why?

Ans: Pinto' is Brazilian slang for "small male genitalia".

6. Which organisation is behind the famous "Got Milk?" campaign?

Ans: California Milk Processor Board

7. KFC told the world that their chicken was 'finger lickin' good'. What did they tell the people of China when they

first went there (hint: their sales were abysmal at first)?

Ans: Lick it and love

8. It was founded in 1996 and is ranked No. 10 Indian Web Portal. In 2001, it acquired the India Abroad

newspaper. What?

Ans:Rediff.com

9. Which of these drinks called themselves the UnCola?

Ans:7 up

10. Toshiba is in talks with TerraPower to jointly develop an advanced nuclear reactor. Which well known business

personality owns TerraPower?

Ans: Bill Gates

11. Which new car, planned by GM and its partner in China, gets its name from the Chinese word for 'treasured

horse'?

Ans: Bao Jun

12. Formula-1 hotel are the hotels from which company

Ans: Accor

13. What is the old name of Lenevo?

Ans: Legrand

14. This company, the world's largest in its category, recently changed its logo for the first time in its 40-year

history. Since it is now a well-known brand, it has made its logo a wordless one. Name it.

Ans: Starbucks

15. Name the brand which is the first to sponsor a farm in the hugely popular social game Farmville.

Ans:McDonald‘s

16. What is the term used to describe equipment placed on or near the streets such as bus shelters, signs,

benches and kiosks. This is a medium for outdoor advertising too?

Ans: Street furniture

17. Whose initiatives are called 10,000 small businesses and 10,000 women?

Ans: Goldman Sachs

18. Which famous brand ran an ad during the 1930s with the lines "Big Business Demands" with the guarantee

that read "Have your dealer fit your hand with ___, if it fails to suit you, he will refund your money without

questions"?

Ans:Sheaffer

19:

Personality?

Ans: Nato kan (prime minister of Japan)

20.

Logo?

Ans: Vedanta resource plc

If you have any feedback, suggestions then mail us on newsderrick@gmail.com . Disclaimer: Derrick does

not have own reporters. These are the news collected from different sources. ................TEAM SYNAPZ