Feb 2012

23 Feb 2012

Avg CEO pay crosses Rs 2-cr mark:

The average annual compensation for a CEO in India stands at over Rs two crore and is nearly 2.6 times the pay package for other top business executives in the country, as per a new study.
According to the top executive compensation report 2011-12, released by global management consultancy Hay Group today, the average CEO (Chief Executive Officer) compensation has crossed Rs two-crore mark, on cost-to-company (CTC) basis.

A CTC pay package typically includes salary, bonus, commissions, reimbursements, and various other benefits.

For the next level of top executives (excluding the CEO), the average pay package is now above Rs one crore, it added.

The study further pegged the average CEO compensation at "larger, more complex organisations" at more than Rs 7 crore.

Hay Group said the CEO compensation has seen an increase on a year-on-year basis and the uptrend is likely to continue going forward, as there is a lack of "holistic" CEOs.

Besides, the cross-sector employability of CEOs is also likely to fuel the compensation packet, the study said.

Hay Group' Rewards Practice Leader Sridhar Ganesan said that the average CEO salary in the country is now 2.6 times that of the the rest of the executive population, in terms of total pay package.

While the exact increase in the CEO pay levels could not be ascertained, the government data shows that India's per capita income grew by 15.6 per cent to cross Rs 50,000 level for the first time in 2010-11. It is expected to further cross Rs 60,000 level in the current fiscal, ending March 31, 2012.

As per the data disclosed by listed companies, their top-management remuneration grew by 36 per cent in 2010-11, while the rise in overall staff costs was about 18 per cent.

"The Indian CEO market has always seen a large pool of 'operationally-excellent' CEOs, but a constant scarcity of 'managing-business' CEOs has driven compensation high," Hay Group' Ganesan said.

"This also has implications on the next line of top executives ¿ the average CEO's salary is 2.6 times that of the rest of the executive population, in terms of total CTC, excluding long-term incentives (LTIs)," he noted.

Ganesan said that compensation is expected to further spiral upwards owing to the increasing cross-sector employability of CEOs and the new breed of 'lateral CEOs'.

Citing instances of such cross-sector movements, he said that a global cement major has recruited an Indian investment banker as the CEO of its India operations, while the head of Indian manufacturing company has joined an IT company to lead its manufacturing vertical.

Amid current economic parameters, organisations are adopting some amount of caution. But since there is scarcity of holistic CEOs, if we balance out the cautious approach and the scarcity we will still see some amount of hike in CEO compensation going forward, he added.

The report said that employers are giving increasing importance to "performance" as the percentage of variable pay component has increased in the overall compensation.

The study further noted variable pay as a percentage of fixed CTC was in the range of 15 to 30 per cent.

Besides, for both CEO/MD levels and other executives, there is a growing trend of long-term incentives, the study said, adding stock options are the most prevalent vehicle.

There is, however, very little total compensation differential between top executives across core and enabler functional roles, indicating that the reward philosophy driving business accountability as a top 'team' rather than a few stakeholders is here to stay.

The report features insights from about 87 organisations across sectors, analysing compensation practices of top executives ¿ CEOs, their direct reports, and heads of businesses as well as functions.

Hay Group said its report was designed to enable organisations to understand prevailing compensation practices and trends, and assist them in formulating market-aligned and business-model affordable compensation for top executives.

Source: www.expressindia.com

Feb 2012

23 Feb 2012


Avg CEO pay crosses Rs 2-cr mark:

The average annual compensation for a CEO in India stands at over Rs two crore and is nearly 2.6 times the pay package for other top business executives in the country, as per a new study.
According to the top executive compensation report 2011-12, released by global management consultancy Hay Group today, the average CEO (Chief Executive Officer) compensation has crossed Rs two-crore mark, on cost-to-company (CTC) basis.

A CTC pay package typically includes salary, bonus, commissions, reimbursements, and various other benefits.

For the next level of top executives (excluding the CEO), the average pay package is now above Rs one crore, it added.

The study further pegged the average CEO compensation at "larger, more complex organisations" at more than Rs 7 crore.

Hay Group said the CEO compensation has seen an increase on a year-on-year basis and the uptrend is likely to continue going forward, as there is a lack of "holistic" CEOs.

Besides, the cross-sector employability of CEOs is also likely to fuel the compensation packet, the study said.

Hay Group' Rewards Practice Leader Sridhar Ganesan said that the average CEO salary in the country is now 2.6 times that of the the rest of the executive population, in terms of total pay package.

While the exact increase in the CEO pay levels could not be ascertained, the government data shows that India's per capita income grew by 15.6 per cent to cross Rs 50,000 level for the first time in 2010-11. It is expected to further cross Rs 60,000 level in the current fiscal, ending March 31, 2012.

As per the data disclosed by listed companies, their top-management remuneration grew by 36 per cent in 2010-11, while the rise in overall staff costs was about 18 per cent.

"The Indian CEO market has always seen a large pool of 'operationally-excellent' CEOs, but a constant scarcity of 'managing-business' CEOs has driven compensation high," Hay Group' Ganesan said.

"This also has implications on the next line of top executives ¿ the average CEO's salary is 2.6 times that of the rest of the executive population, in terms of total CTC, excluding long-term incentives (LTIs)," he noted.

Ganesan said that compensation is expected to further spiral upwards owing to the increasing cross-sector employability of CEOs and the new breed of 'lateral CEOs'.

Citing instances of such cross-sector movements, he said that a global cement major has recruited an Indian investment banker as the CEO of its India operations, while the head of Indian manufacturing company has joined an IT company to lead its manufacturing vertical.

Amid current economic parameters, organisations are adopting some amount of caution. But since there is scarcity of holistic CEOs, if we balance out the cautious approach and the scarcity we will still see some amount of hike in CEO compensation going forward, he added.

The report said that employers are giving increasing importance to "performance" as the percentage of variable pay component has increased in the overall compensation.

The study further noted variable pay as a percentage of fixed CTC was in the range of 15 to 30 per cent.

Besides, for both CEO/MD levels and other executives, there is a growing trend of long-term incentives, the study said, adding stock options are the most prevalent vehicle.

There is, however, very little total compensation differential between top executives across core and enabler functional roles, indicating that the reward philosophy driving business accountability as a top 'team' rather than a few stakeholders is here to stay.

The report features insights from about 87 organisations across sectors, analysing compensation practices of top executives ¿ CEOs, their direct reports, and heads of businesses as well as functions.

Hay Group said its report was designed to enable organisations to understand prevailing compensation practices and trends, and assist them in formulating market-aligned and business-model affordable compensation for top executives.

News Feb 2012

Feb 22, 2012


FY12 Economic Growth seen at 7.1%: Rangarajan:

India's economy could grow 7.1% this fiscal (FY12), feels C Rangarajan, economic advisor to the Prime Minister. His estimate is slightly better than the 6.9% GDP growth estimated by the state-owned Central Statistical Organisation (CSO). While admitting to the slack in manufacturing,

Rangarajan is hopeful that growth in farm output can be seen averaging at 3% against 2.5% estimated by the CSO.

He sees the economy growing 7.5%-8% next fiscal.

Rangarajan said that headline inflation is expected to ease to 5-6%. However, current account deficit is seen at 3% of GDP.

It is hoped that eurozone will soon find a solution to the problem. Germany is more forthcoming in providing this relief. US economy is better than Europe, but overall situation will be tight. The coming year is expected to be sans any shock.


Investment rate has been coming down

Gross fixed capital formation down sharply over past 4 years

Likely to have record food grain output this year

Expansion of fiscal deficit an area of concern

FY12 fiscal gap seen higher on rising subsidy bill

Manufacturing has not been doing well

Expect 3.9% growth in manufacturing sector

Expect 9.4% growth in services sector in 2011-12

Balance of payments situation has been difficult

Capital flows have picked up since January

Seeing increased FDI in FY12

FY13 budget must have decisive, tough measures

Mining sector projected to grow by 6% in FY13

Manufacturing sector to grow by 7.5% in FY13

Increase in veg prices due to archaic marketing arrangement

Adjustment of diesel prices has been overdue

Excessive appreciation of rupee vs dollar not good

Must return to pre-crisis tax-GDP ratio

Source: www.moneycontrol.com



Econet seeks $3 bn damages from Bharti Airtel:

Econet Wireless is seeking at least $3.1 billion in damages from Bharti Airtel in a dispute over ownership of its subsidiary Airtel Nigeria, according to a suit filed on Wednesday.

The move follows a Nigerian court ruling on January 30 that Bharti Airtel's ownership of its subsidiary Airtel Nigeria is "null and void" because co-founder and 5% shareholder Econet was not consulted on the transfer.

South Africa-based Econet Wireless is disputing Bharti's ownership of one of its top Africa operations.

Bharti said on February 8 that its stake in its Nigerian unit was "completely safe" and that the world's fifth-biggest mobile phone carrier by subscribers had appealed against the verdict.

"The claim for damages and equitable compensation against the Applicant and some of the Respondents might be in excess of $3 billion," the document filed to the court said.

"The above estimated damages might also be in addition to a claim for $100 million received by the applicant as fees for the management of VNL (Vee Networks Limited, a former name of Airtel) for a period of six years which sum should have accrued."

Bharti Airtel inherited the legal case as part of a $9 billion acquisition of Zain's Africa operations in 2010, including 65% of Zain Nigeria.

The basis of Econet's claim is that its 5% stake was unfairly cancelled when Zain took control, so any decision made since then without it, including the transfer to Bharti, is void. The Nigerian court upheld that claim.

Nigeria contributes about 9.5% to Bharti's consolidated operational profits, the company says.

Econet disputed the buyout of Airtel's stake from Zain Nigeria in 2010 because its right of first refusal over the stake was denied, in a dispute that had been ongoing since 2003, when the same assets were first sold to Vee Networks.

Source: Business Standards.

Bears take over bulls on D-Street; Sensex, Nifty lose over 1% each:

The benchmark indices took three trading sessions to gather momentum, but only one to crash down! Today, extending previous two sessions’ gains, the key indices started off well in green. However, during the course of the day, the bourses fell below the equator and ended with major losses.


At close, the Bombay Stock Exchange’s Sensex was at 18,145.25, down 283.36 points or 1.54%. The National Stock Exchange’s Nifty pulled down shutters at 5,505.35, lower by 101.80 points or 1.82%, from the previous close.

Tracking trade:

The bourses kick-started trade on a positive note and within seconds registered intraday highs: Sensex at 18,523.78 and Nifty at 5,629.95. Later, after trading range-bound in green for an hour, the bourses slipped in red following the news of SBI providing relief package to Kingfisher Airlines.

News reports suggest that country’s biggest lender; SBI may provide Kingfisher Airlines with Rs 1,200 crore relief package, including working capital of Rs 400 crore, bank guarantee of Rs 500 crore and loan repayment extension worth Rs 250-300 crore. The news took a toll on the stock, which gave up nearly 9% and was the biggest loser on the Sensex.

Reflecting the decline in the stock, the major indices kept hitting ground till the closing bell. The Sensex hit the bottom at 18,095.81, while the Nifty fell below 5,500 mark and registered intraday low at 5,491.35.

The picture was no different for the broader market. Secondary market, which also ended near intraday lows, underperformed the key indices. The BSE Midcap index lost 3.46%, while the BSE Smallcap index was down 3.24%.

On the sectoral front, barring BSE IT index (0.45%), all 12 BSE indices ended with losses. Among losers, BSE Realty index (-6.77%) was the biggest dud, followed by BSE Consumer Durables index (-4.93%) and BSE Metal index (-4.29%). Indices for banking and power stocks lost over 3%, while that for PSU and capital goods were down over 2% each. BSE Auto index gave up 1.55%, in trade.

Out of the 30 blue-chip companies listed on the Sensex, six ended with gains. TCS (1.46%), Sun Pharma (1.24%) and ITC (0.60%) topped the charts. On the downside, SBI (-7.91%), DLF (-7.69%) and Sterlite Ind (-6.62%) were leading the losers.

The overall market breadth was extremely weak. Of the 3,083 stocks traded on the BSE, only 767 advanced, while 2,210 declined and 106 remained unchanged.

Source:  www.yourmoneysite.com 

News Feb 2012

Feb 22, 2012


Econet seeks $3 bn damages from Bharti Airtel

Econet Wireless is seeking at least $3.1 billion in damages from Bharti Airtel in a dispute over ownership of its subsidiary Airtel Nigeria, according to a suit filed on Wednesday.

The move follows a Nigerian court ruling on January 30 that Bharti Airtel's ownership of its subsidiary Airtel Nigeria is "null and void" because co-founder and 5% shareholder Econet was not consulted on the transfer.

South Africa-based Econet Wireless is disputing Bharti's ownership of one of its top Africa operations.

Bharti said on February 8 that its stake in its Nigerian unit was "completely safe" and that the world's fifth-biggest mobile phone carrier by subscribers had appealed against the verdict.

"The claim for damages and equitable compensation against the Applicant and some of the Respondents might be in excess of $3 billion," the document filed to the court said.

"The above estimated damages might also be in addition to a claim for $100 million received by the applicant as fees for the management of VNL (Vee Networks Limited, a former name of Airtel) for a period of six years which sum should have accrued."

Bharti Airtel inherited the legal case as part of a $9 billion acquisition of Zain's Africa operations in 2010, including 65% of Zain Nigeria.

The basis of Econet's claim is that its 5% stake was unfairly cancelled when Zain took control, so any decision made since then without it, including the transfer to Bharti, is void. The Nigerian court upheld that claim.

Nigeria contributes about 9.5% to Bharti's consolidated operational profits, the company says.

Econet disputed the buyout of Airtel's stake from Zain Nigeria in 2010 because its right of first refusal over the stake was denied, in a dispute that had been ongoing since 2003, when the same assets were first sold to Vee Networks.


Source: Business Standards.

News Feb 2012

Feb 21, 2012


January consumer price inflation 7.65%:

India's annual consumer price inflation was 7.65% in January, the government said in a statement, higher-than wholesale inflation for the period.
The annual consumer price index (CPI) data released for the first time on Tuesday measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India.

Unlike most central banks, which mainly use the CPI to monitor inflation and set monetary policy, the Reserve Bank of India (RBI) has long used the wholesale price index (WPI) as India's main inflation gauge.

Inflation as measured by the WPI eased to a 26-month low of 6.55% in January.
The RBI signaled last month its readiness to cut rates if there was a sustained decline in inflation.

Source: CNBC.


BSE to launch Greenex, the green index:

The Bombay Stock Exchange will launch a new index, BSE Greenex, on Wednesday. The index will track companies which are friendly to the environment based on a methodology provided by IIM-Ahmedabad.

The index will also track companies that have minimum carbon footprint. BSE will also launch a guideline for investors which will help them understand the relationship between the amount of carbon footprints of each company and the respective short-term and long-term impact on its investment and returns.

The index and the guidelines will be launched by minister of corporate affairs. At present, BSE has 13 sectoral indices tracking key sectors including banking, real estate, Metal, power and so on. In addition, it has market capitalisation based indices, such as BSE Mid cap, BSE Small cap, BSE 100, BSE 200 and BSE 500.

This is the second theme based index launched by BSE after the Shariah index.

The National Stock Exchange had launched an index tracking environment-friendly companies a couple of years ago. The S&P ESG India index provides investors with exposure to a liquid and tradable index of 50 of the best performing stocks in the Indian market as measured by environmental, social, and governance parameters. It is an index based purely on quantitative factors rather than subjective ones.

This index not only ensures a selection of environmentally, socially and corporate governance responsible companies, but also securities which are representative of the Indian equity markets based on size and liquidity.

Source: Business Standards.

Europe seals new Greek bailout but doubts remain:


Euro zone finance ministers agreed a 130-billion-euro ($172 billion) rescue for Greece on Tuesday to avert an imminent chaotic default after forcing Athens to commit to unpopular cuts and private bondholders to take bigger losses.

The complex deal wrought in overnight negotiations buys time to stabilize the 17-nation currency bloc and strengthen its financial firewalls, but it leaves deep doubts about Greece's ability to recover and avoid default in the longer term.

After 13 hours of talks, ministers finalized measures to cut Athens' debt to 120.5 percent of gross domestic product by 2020, a fraction above the target, securing a second rescue in less than two years in time for a major bond repayment due in March.

"We have reached a far-reaching agreement on Greece's new program and private sector involvement that would lead to a significant debt reduction for Greece ... to secure Greece's future in the euro area," Jean-Claude Juncker, who chairs the Eurogroup of finance ministers, told a news conference.

Greece will be placed under permanent surveillance by an increased European presence on the ground, and it will have to deposit funds to service its debt in a special account to guarantee repayments.

The 5 a.m. deal (0400 GMT) was hailed as a step forward for Greece, but experts warned that Athens will need more help to bring its debts down to the level envisaged in the bailout and will remain worryingly "accident prone" in coming years.

By agreeing that the European Central Bank would distribute its profits from bond-buying and private bondholders would take more losses, the ministers reduced Greece's debt to a point that should secure funding from the International Monetary Fund.

Italian and Spanish bond yields fell amid relief among investors that a threat to the wider euro zone had been avoided, although expectations of an agreement had been largely priced into foreign exchange and stock markets.

"It's an important result that removes immediate risks of contagion," Italian Prime Minister Mario Monti told a news conference.

"A nightmare scenario was avoided," said Greek Finance Minister Evangelos Venizelos in Athens. "It is maybe the most important (deal) in Greece's post-war history."

While the deal provides time for the euro zone to put new crisis measures in place over the coming months, it means Greece will struggle for years without economic growth.

The austerity measures imposed on Athens are widely disliked among the population and will put pressure on politicians who must contest an election expected in April.

Further street unrest could test politicians' commitment to cuts in wages, pensions and jobs. Greece's two biggest labor unions called a protest in Athens on Wednesday.

An opinion poll taken just before the Brussels deal showed that support for the two mainstream parties backing the rescue had fallen to an all-time low while leftist, anti-bailout parties showed gains.

Anastasis Chrisopoulos, a 31-year-old Athens taxi driver, saw no reason to cheer the deal.

"So what?" he asked. "Things will only get worse. We have reached a point where we're trying to figure out how to survive just the next day, let alone the next 10 days, the next month, the next year."

Conservative leader Antonis Samaras, a strong contender to become next prime minister, said the rescue package's debt-reduction targets could only be met with economic growth.

"Without the rebound and growth of the economy ... not even the immediate fiscal targets can be met, nor can the debt become sustainable in the long-term," he said during a visit to Cyprus.

Parliaments in three countries that have been most critical of bailouts - Germany, the Netherlands and Finland - must now approve the package. German Finance Minister Wolfgang Schaeuble, who caused an outcry by suggesting that Greece was a "bottomless pit," said he was confident it would be passed.

STUCK IN TRAGEDY

Many economists question whether Greece can pay off even a reduced debt burden, suggesting the deal may only delay a deeper default by a few months.

Swedish Finance Minister Anders Borg said: "What's been done is a meaningful step forward. Of course, the Greeks remain stuck in their tragedy; this is a new act in a long drama.

"I don't think we should consider that they are cleared of any problems, but I do think we've reduced the Greek problem to just a Greek problem. It is no longer a threat to the recovery in all of Europe, and it is another step forward."

Jennifer McKeown, senior European economist at Capital Economics, said: "The austerity measures it will have to implement and increased monitoring by the troika amidst public outrage will make things harder and drive it deeper into recession. There is a risk of a euro zone exit later this year."

A return to economic growth in Greece could take as much as a decade, a prospect that brought thousands onto the streets of Athens to protest on Sunday. The cuts will deepen a recession already in its fifth year, hurting government revenues.

"We sowed the wind, now we reap the whirlwind," said Vassilis Korkidis, head of the Greek Commerce Confederation. "The new bailout is selling us time and hope at a very high price, while it doggedly continues to impose harsh austerity measures that keep us in a long and deep recession."

EXTRA RELIEF

A report prepared by experts from the European Union, European Central Bank and International Monetary Fund said Greece would need extra relief to cut its debts near to the official debt target given the worsening state of its economy.

If Athens did not follow through on economic reforms and savings to make its economy more competitive, its debt could hit 160 percent by 2020, said the report.

"Given the risks, the Greek program may thus remain accident-prone, with questions about sustainability hanging over it," the nine-page confidential report said.

The beefed-up monitoring of implementation of the reforms could bolster accusations among some Greeks of interference in domestic affairs but some critics say that is essential.

Dutch Finance Minister Jan Kees de Jager, one of Athens' most strident critics, told Dutch news agency ANP he had bargained hard for the permanent monitoring mission.

"This program is not something to cheer about," he said.

BOND SWAP

The accord will enable Athens to launch a bond swap with private investors to help put it on a more stable financial footing and keep it inside the euro zone.

About 100 billion euros of debt will be written off as banks and insurers swap bonds they hold for longer-dated securities that pay a lower coupon.

Private sector holders of Greek debt will take losses of 53.5 percent on the nominal value of their bonds. They had agreed to a 50 percent nominal writedown, which equated to around a 70 percent loss on the net present value of the debt.

Juncker said he expected a high participation rate in the deal, a view echoed by the German banking association.

Greece said it would legislate to allow it to enforce losses on bondholders who do not take part voluntarily.

Euro zone central banks will also play their part.

A Eurogroup statement said the ECB would pass up profits it made from buying Greek bonds over the past two years to national central banks for their governments to pass on to Athens "to further improve the sustainability of Greece's public debt."

The ECB has spent about 38 billion euros on Greek government debt with a face value of about 50 billion euros.

The private creditor bond exchange is expected to launch on March 8 and complete three days later, Athens said on Saturday. That means a 14.5-billion-euro bond repayment due on March 20 would be restructured, allowing Greece to avoid default.

The vast majority of the funds in the program will be used to finance the bond swap and ensure Greece's banking system remains stable; some 30 billion euros will go to "sweeteners" to get the private sector to sign up to the swap, 23 billion will go to recapitalize Greek banks.

A further 35 billion or so will allow Greece to finance the buying back of the bonds. Next to nothing will go directly to help the Greek economy.

Source: Reuters.

Business Quiz 11

Which co has raised the prices of Whitney Houston albums after her death opportunistically ?

Sony music

Which two brands from Pepsico are being promoted under a single slogan ” I feel UP” ?

7Up and Nimbooz

Which brand of whisky known for ‘making it large’ has signed on SRK as its brand ambasador ?

Royal Stag

For tv commercial of which brand has Dhanush sung and written a jingle for Sachin Tendulkar ?

Boost

Which insurance co appears to be opportunistic and show Yuvraj Singh talking about his health often in the TVC ?

Birla Sun Life

Which co insures 4 out of 5 films made out of Hollywood and also awards the most risky film of the year award ?

Fireman’s fund

What is the signifiance of the number 24902 in Richard Branson book Capitalism 249O2 ?

Circumference of earth at equator is 24902 miles

Yesterday was SUPERBOWL the ultimate TV event. How did it get its name?

Lamar Hunt the organiser saw his girl play with Super Ball.

Why there was a tie breaker conducted to sell Jadeja in the IPL V auctions ?

Bcoz both teams reached the upper limit of purse money of 2mn $

Name the indian city that has been declared as the first smoke free tourist city in india.

Ernakulam

What is the new name of UTV Software – the media co ?

Walt Disney India

Under what name has Amazon started a online shopping service in india ?

Junglee

Connect Peter Thiel, Accel Partners, Digital sky, Microsoft to Facebook

All early stage investors in FB who will benefit with its IPO

“We don’t build services to make money. We make money to build better services.” Who said it recently ?

Facebook founder Mark Zuckerberg in his letter to prospective shareholders

The govt of india has launched a new index called CRIS. What is CRIS ?

Comparative index for sovereigns

As per GOI the per capita income in india crossed an important figure in 2010-11. What is the figure ?

Rs 50000 p.a

Business Quiz 10

At 57, she is still the leading lady. Who or what is being talked about ?

The Filmfare award trophy

In the 70 year history of The economist magazine, they are launching a separate section for the first time for a country. Name the country.

China

You know wifi. Now a new tech has come to transmit data called Li-Fi. What is LiFi ?

Light fidelity, a new technology where variations in light is used to transmit data. Casio has developed products using this.

Which country known as an export power house for many years will report a current acc deficit ?

Japan

Which Canadian co recently decided to go from a CO CEO model to a single CEO one ?

Research in motion or RIM

Name the Swedish retailer who has decided not to enter India because of the 30% sourcing norm.
Ikea

To whom did President Obama say “Happy to meet a world leader who has an year bigger than mine “?

Mickey Mouse

Which major data sharing site on the net has shut down after its founder was arrested ?

MegaUpload

What is the contribution of John Brager’s Robot wisdom to social media ?

The word blog

The men’s hair cream brand Brylcreem changed hands in India recently. Who is the new owner of this brand ?

HUL from Godrej Sara Lee

How is Oscar awards connected to the Kodak company ?

The award function is held at Kodak theatre in LA

As per Indian building by laws what is essential for those who seek permission to build houses in plots above 120 sq.m ?

Plant a tree

Moheet Nagrath, an Indian from Hyderabad, heads Global HR of which MNC globally ?

Proctor and Gamble

Business Quiz 9

Q1. The campus placements in IIMs have been likened to what by Tata HR Chief Satish Pradhan ?

Ans. Cattle at Pushkar fair

Q2. Connect Bandit, intruder, Hayabuza..

Ans.Suzuki motorcycles

Q3. Name this luxury car model which Daimler has decided to withdraw from india ?

Ans. Maybach

. Q4Cyrus Mistry is the first Non-Indian national to head the Tatas. What passport does he have ?.

Ans. Irish

Q5. Name this detergent brand that created waves in the ’80s as competitor to Surf and is now being withdrawn.

Ans. Nirma

Q6. What is the day after Thanksgiving day called in the US ? Why is this day important for retail industry ?

Ans. Black Friday. Discount season

Q7. Verghese Kurien, the milkman of India celebrates his 90th birthday today. An easy question. How did AMUL get its name ?

Ans. Anand Milk Union Ltd

Q8. Under what brand has tanishq launched a range of low-priced jewllery for working women ?

Ans. Mia

Q9. Which co has launched the music of 3 that has the “Why this KOLAVERI di” tamil song that has gone viral ?

Ans. Sony Music

Q10. In Money market lingo, what is TED spread ?

Ans. The gap between LIBOR & US 3m treasury bill

Q11. Who has been named as the successor to Ratan Tata ?

Ans. Cyrus Mistry

Q12. Why is a 1967 study by psychologist Stanley Milgram relevant for today’s social networking world ?

Ans. The  concept of 6 degrees of freedom that separates any two humans

Q13, Name the man behind JaxtrSMS the free SMS service ?

Ans.Sabeer Bhatia

Q14. Which smartphone operating system is also known as ‘ice cream sandwich’ ?

Ans. Android 4.0

Q15. Theodore Forstmann who died recently coined the phrase ” Barbarians at the gate”. Who did he refer to as barbarians ?

Ans. The guys who do Leveraged Buyouts (LBOs)


Q1. In the Boost ad, a young boy appeared with Kapil Dev. He also went on to don the India cap. Name him.

Ans. Nikhil Chopra ( Source :GSK web-site)

Q2. The former telecom minister Sukh Ram has been convicted for receiving a bribe for a cable contract. What was the amount of the bribe ?

Ans. 3  lakh

Q3. What is TATA FIRST DOT ?

Ans. A platform for student startups

Q4 Which group has entered the retail sector with plans to launch over a lakh of small grocery outlets under the Q Shop name ?

Ans. Sahara

Q5. Which global brand has launched a controversial ad campaign showing Obama-Wen Lip kiss ?

Ans. Benetton

Q6. Raghuram Rajan and Pratap Bhanu Mehta have been awarded prizes for Economics and Pol Science. Name this prestigious prize.

Ans. Infosys Prize

Q7. My fathers watch was one. My alarm clock was one. Name this old swiss brand acquired by Titan for a mere 2 m euros.

Ans. Favre Leuba

Q8. Name this artist who accounts for 17% of contemporary art sales. His first exhibition was 32 paintings of Campbell’s soup cans.

Ans. Andy Warhol

Q9. Name this 100 year old car brand named after a swiss born racing driver and has a “bow-tie’ badge on its bonnet.

Ans. Chevrolet

Q10. Exxon Mobil is the world’s largest listed oil co. But it is only 11th if unlisted oil cos are included in terms of oil reserves. Name the #1 .

Ans. National Iranian Oil Co (NIOC) of Iran

Q11. How do we know this Korean conglomerale that started life as a noodle co and is today a group of 83 cos under a holding co Everland ?

Ans. Samsung ( it means three stars in Korean)

Q12. Add the next one in this series Archana, East West, Damania, NEPC, Paramount…

Ans. Kingfisher ( airlines)

Q13. Einstein is normally associated with theoretical physics. For which home appliance he has a joint patent with Leo Szilard?

Ans. Refrigerator

Q14. What is common to the following @TCS , Infy Bubble, Cognizant 2.0, World of W, U&I ?

Ans. Social networking platforms of Tech cos. TCS, Infosys, CTS, Wipro and HCL respectively

Economic Data of 2011

ECONOMY:

Slowing Growth Indian industrial production growth slowed sharply in December as capital investment remained weak. The December figure compares with a rise of 5.95 per cent in November

Persian Link
Iran is the second largest supplier of crude oil to India, supplying more than 425,000 barrels of oil per day and India is one of the largest foreign investors in Inran's oil and gas industry. In 2011, the $12 billion annual oil trade between India and Iran was halted due to extensive economic sanctions against Iran

Tilting Balance A look at India's trade with Pakistan shows that export figures are heavily tilted towards India. In 2010-11, India's exports to Pakistan was worth $2,333.62 million while imports were worth $332.51 million

CORPORATE:

On A High A look at 10 Indian companies by market capitalisation. Reliance is the company with the highest market capitalisation at Rs 2,75,763 crore while HDFC Bank rounds up the list with Rs 1,20,812 crore m-cap in the week ending February 10. This period saw a total gain of Rs 29,776 crore and a total loss of Rs 14697 crore. Bharti were the only stocks to lose among the heavyweights during this period

ECONOMY:

Rupee Redux The first month of 2012 has seen the rupee reversing a falling trend and go up to Rs 49.31 for each US dollar on January 27 from a low of 53.50 on January 2

AGRICULTURE

Grain Gain Foodgrains production has grown consequentially since 2004-05 till date except for a dip in 2009-10

ECONOMY:

Mixed Trend A look at the consumer price index for agricultural and rural labourers in December 2011. While the general index and food prices showed a downturn compared to November 2011, that for pan, supari rose

Feb 2012

Feb 20, 2012


Adopting a bullish stance on India, overseas investors have pumped in about Rs 14,000 crore in the Indian equity market so far this month and the experts expect this positive trend to continue further.

Since the beginning of 2012, the FIIs have infused a total of Rs 24,225 crore ($ 4 billion) into Indian stocks, after taking into account Rs 10,358 crore of net inflow during January 2012.

During February 1-17, 2012, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 47,895 crore, while they sold equities amounting to Rs 34,028 crore, translating into a net investment of Rs 13,867 crore ($ 2.81 billion), as per data available with market regulator Sebi.

Market analysts attributed strong FIIs inflow in the domestic market to the reversal in RBI's monetary policy and the subsequent impact of improved liquidity position.

The foreign fund houses have also infused Rs 799 crore in the debt market so far this month. This takes the overall net investments by FIIs into Indian markets to Rs 14,666 crore (USD 2.97 billion) for this period.

Stock market inflows in the first 17 days of February, at Rs 13,867 crore, were higher than that for the entire month of January 2012, which stood at Rs 10,358 crore.

"FIIs have been infusing money into the Indian market due to change in RBI's monetary policy that have added liquidity to the system. This liquidity will help in growth of the country," Wellindia Executive Director Hemant Mamtani said.

"Indian market will continue to witness inflows in the whole year," he added.

Strong surge in FII inflows in 2012 so far has helped boost the equity markets as well as helped the Indian rupee to strengthen.

The stock market barometer Sensex gained 6.37 per cent or 1096 points in February. The index finished at 18,289.35 on February 17, the last trading session of the month, gaining 135 points from its last close.

It is not only India which has witnessed an upsurge in investment, equity funds focused on all emerging markets put together have seen an inflow of over $ 19 billion in 2012.

"In 2012, FIIs infused money into the Indian market mainly on account of easing inflation, a relaxing of foreign investor restrictions and the RBI's policy moves," CNI Research Head Kishor Ostwal said.

FIIs had mostly stayed away from Indian equities in 2011. They flocked toward the debt market in 2011 with a net investment of Rs 20,293 crore, while pulling out Rs 2,812 crore from equities.

News Feb 2012

Feb 19

Business dull, 65 B-schools across India to shut down:

            On the academic floor, the MBA programme was once supreme. Arrogantly and unambiguously, it became the final sign-off to schooling, attracting not only those interested in business but also all those who wanted to master the tools of management.

That hubris, thanks to its own profligacy, is now being shaken. The Indian management education sector grew so wildly when demand was rampant (today there are 3,900 management schools with close to 3.5 lakh seats) that supply overshot demand by a long straw. And now comes the fallout.

In a dramatic, though not entirely unexpected, development, as many as 65 business management colleges across India are planning to close down; these institutes no longer see business sense in offering an MBA course, preferring to use the land for more lucrative ventures. 

In fact, experts predict that many more management colleges may close down in the days to come. As S S Mantha, chairman of the All-India Council for Technical Education, puts it, "Colleges in remote India and institutes of poor quality are not getting students."

Feb 16

Days after CBI Chief's statement that Indians are the largest depositors in Swiss banks, Switzerland today said such estimates and statistics lack evidence and are uncorroborated.


In an unusual step, the Embassy of Switzerland here issued a press release saying, "it wishes to make a clarification in view of unsubstantiated media reports that have been recently published about Switzerland and Swiss Banks."


But, the release, which did not mention CBI Chief's statement, said that Switzerland is not a tax haven.
"There have been several speculations about the amount of wealth held by Indians in Swiss Banks. Such estimates and statistics lack evidence and are uncorroborated," it said.


At an Interpol programme here on February 13, CBI Director A P Singh had said: "It is estimated that around 500 billion dollars of illegal money belonging to Indians is deposited in tax havens abroad. Largest depositors in Swiss Banks are also reported to be Indians."
Without indicating the source of the estimate of the illegal Indian money abroad, he had said India, in particular, has suffered from the flow of illegal funds to tax havens such as Mauritius, Switzerland, Lichtenstein and British Virgin islands.


While there have been various estimates of Indian black money stashed abroad, the statement by the CBI Director was significant that for the first time someone in authority in the country had come out with an estimate.

Feb 15

Iran stops oil exports to six EU countries: state TV


Tehran: Iran has stopped oil exports to six European states in retaliation for European Union sanctions imposed on the Islamic state's key export, its English-language Press TV reported on Wednesday.
"Iran cuts its oil exports to six European countries," Press TV reported.
Press TV said Iran has stopped exporting oil to Netherlands, Greece, France, Portugal, Spain and Italy.


Brent crude oil prices were up $1 a barrel to $118.35 shortly after the announcement.
The EU's 27 member states have decided to stop importing crude from Iran from July 1 over its disputed nuclear program, which the West says is aimed at building bombs. Iran denies this.
Iran's oil minister said on February 4 that the Islamic state would certainly cut its oil exports to "some" European countries.

Feb 14

Well it's good news. January wholesale inflation has eased to 6.55% (MoM) against 7.47% in the last month. This is in-line with estimates as according to a CNBC-TV18 poll it was seen at 6.53%.

Jan primary articles inflation at 2.25% Vs 3.07% (MoM)

Jan WPI primary articles index up 0.5%

Jan food articles inflation at -0.52% Vs 0.74% (MoM)

Jan food articles index down up 0.3% (MoM)

Jan fuel group inflation at 14.21% Vs 14.91% (MoM)

Jan fuel group index up 0.1% (MoM)

Jan manufacturing products inflation at 6.49% Vs 7.41% (MoM)

Jan manufacturing products index :: Up 0.4% (MoM)

Jan all commodities index up 0.5% (MoM)

Annual food prices in January fell 0.52%  from 0.74% rise in December, helped by improved supplies of vegetables.


However, prices of protein-rich food items such as eggs, fish and meat, milk and pulses remained high, suggesting that food inflation remains a potential problem area.


Manufacturing inflation, a barometer for demand-driven price pressures, dropped to 6.49% from 7.41% in December.


Fuel prices rose 14.21% from a year earlier, compared with an annual rise of 14.91% in December.
Fuel inflation has been steady, as political considerations have forced the government to delay an adjustment in petroleum and coal prices.


Any government move to align domestic petroleum prices with global prices to reduce its massive subsidy bill runs the risk of igniting inflation.


A decision on petroleum subsidy reforms is expected after the conclusion of a series of state elections being held between now and early-March.




Feb 10


Industrial output in December has slowed down to 1.8% versus 5.9% in November. This is significantly below CNBC-TV18's estimates of 3.45%.


Capital goods growth at -16.5% vs -4.6% (MoM)
Mining goods growth at -3.7% vs -4.4% (MoM)
Manufacturing goods growth at 1.8% vs 6.6% (MoM)
Consumer durables growth at 5.3% vs 11.2% (MoM)
Non-durable consumer goods growth at 13.4% vs 14.8% (MoM)
Consumer goods growth at 10% VS 13.1% (MoM)
Electricity growth at 9.1% vs 14.6% (MoM)
Basic goods growth at 4% vs 6.3% (MoM)
Intermediate goods growth -2.8% at vs 0.2% (MoM)




NEWS from Econoic Times:


30 pc sourcing clause difficult to live up to: IKEA
January 23, 2012


NEW DELHI: Scandinavian furniture retailer IKEA, which has been waiting to set up shops in India independently, today said the 30 per cent local sourcing clause applied for 100 per cent FDI in single brand retail might be difficult to live up to. "We have found that the conditions applied to local sourcing from SMEs might be difficult for us to live up to," the Group's spokesperson in the country told reporters. Earlier this month,...




21 Jan 2012



HUL in pact to make, mkt Brylcreem in India and distributing the Brylcreem brand in India. This is consequent to the sale of global rights of the Brylcreem brand by Sara Lee Corporation to Unilever. Prior to this, the brand was being manufactured, marketed and distributed in India and Sri Lanka by Godrej.

Business Quiz 8

251) Its Mexico ads were supposed to have read, "It won't leak in your pocket and embarrass you."
       The company thought that the word "embarazar" (to impregnate) meant to embarrass, so the
        ad read: "It won't leak in your pocket and make you pregnant!"
       Parker Pen

252) Its "Come Alive With the [company name] Generation" translated into "[company name]
        Brings Your Ancestors Back From the Grave" in Chinese.
        Pepsi

253) It introduced a toothpaste in France called Cue, the name of a notorious porno magazine.
        Colgate-Palmolive

254) This auto major marketed this car in Central and South America by the name meaning in
         Spanish, "it doesn't go".
         GM for car Nova

255) This Scandinavian vacuum manufacturer used the following in an American campaign:    
         "Nothing sucks like an [company name]."
          Electrolux

256) In takeover jargon, what is a Poison Pill ?
        Liabilities or losses deliberately assumed by a company, to make it a less attractive
        candidate for takeovers.
257) What is the key difference between cars for the American & Canadian markets?
        Dashboard in FPS system vs. MKS system.

258) What is the similarity between Levi Strauss and Fevicol?
        Their logos are similar: horses pulling apart jeans for Levi's, elephants pulling apart a ball
        for Fevicol. As mentioned above, the respective product logos are derivatives of the
        Magdeburg hemisphere experiment

259) A British company called Wire & Plastic Products Ltd. is the world no. 1 in its field. What field?
         Advertising. It's the core of the WPP Group that owns O&M, JWT and other companies.

260) What invention of the confectioner George Smith was named after a famous race horse of the  
         early 20th century ?
        The Lollipop

Business Quiz 7

201) In 1906, Ammembal Subba Rao Pai founded this organization as the ... Bank Hindu
       Permanent Fund. Fill up the blank. (Some more details: the organization has a bi-monthly, bi-
        lingual house journal called Shreyas, and has on its rolls sportsmen such h as Venkatesh
       Prasad and Vimal Kumar.)
       Canara

202) The following is part of Bono's foreword to this book: "His voice is louder than any electric
       guitar, heavier than heavy metal. He is not just animated; he's angry. Because he knows that a
       lot of the crisis in the developing world can be avoided." Can you name the author and the
       book, which talks about putting an end to poverty?
   
       “The End of Poverty", author is Jefferey D Sachs

203) After years of delivering speeches about a scandal and his survival of colon cancer, he has
        landed his first regular job in 10 years — as commercial manager of Ireland's Galway United
        Football Club. Who's he?
       Nick Leeson

204) It was started in 1887 as the Clinton Pharmaceutical Company, when its partners, McLaren
        Bristol and John Ripley Myers, got it officially incorporated. In 1898, the company got a new
        name, with the founders' names becoming part of it. After Myers' death h in 1899, when the
        company became a corporation, its name underwent a further change. How was it known
        before and after Myers' death?
        Bristol , Myers - after his death it got changed to Bristol-Myers

205) ‘India's Online Marketplace' is now ...?
       Baazee.com [now eBay.in]

Top CEO's

Business today Magazine conducted a survey along with HBR(Harvard Business Review) on best CEOs in india. this survey conducted based the Value Creation between 1995 to2011.

Top 25 CEOs are.........

1)Naveen Jindal (Jindal Steel and Power)
2)A.M.Naik (L&T)
3)Y.C.Deveshwar (ITC)
4)Bhaskar bhat (Titan Industries)
5)Sunil Bharati Mittal (Bharati Airtel)
6)R.Sridhar (Sriram Transport finance)
7)Mukesh Dhirubahi Ambani (RIL)
8)*Vijay Jindal (Zee entertainment enterprises)
8)Pankaj R.Patel (Cadila healthcare)
8)*Pangal Jayendra Nayak (Axis Bank)
11)*Subhir Raha (ONGC)
12)Kalyan Ganguly (UB)
13)Madhukar B.Parekh(Pidilite ind)
13)Sunil Duggal (Dabur India)
15)*V.K.Rekhi (United Spirits)
16)*V.S.Jain (SAIL)
17)*Prakash Kulkarni (Thermax)
18)*L.A Dean (Sesa Goa)
18)*A.K.Puri(BHEL)
20)*Ashok Soni (Voltas)
21)*B.Muthuraman (Tata Steel)
22)*S.S.Kohli
23)Anand Mahindra (M&M)
24)*R.Sheshayasee (Ashok leyland)
25)Kamal K.Sharma (Lupin)

*These CEO are retired