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.