Russia is likely to participate in railway projects in India, funding for which could be routed through the newly-set up BRICS' New Development Bank. Indications in this regard came from the head of Russian Railways Vladimir Yakunin, who said negotiations are underway with India in this regard. "As of now we are only a part of the Business Council. We do not yet have projects that are in the process of signing or implementation. But...I am sure that such projects may appear in the near future. We are talking about Brazil, and negotiating on India," Yakunin said. The CEO of the Russian Railways said the company would be "interested" in funding from the New Development Bank of BRICS (Brazil, Russia, India, China, South Africa), according to Russian news agency Tass. Russian Railways is currently negotiating the possibility of participation in a number of projects in India, particularly in the modernisation and construction of railway infrastructure for increasing train speeds up to 160-200 km per hour, as well as the modernisation of railway stations. India has embarked on a massive task of upgrading and modernisation of its railways, which will require huge investment of about $120 billion. To attract investments, India has opened some elements of the railways to FDI. These include development of railway stations and coach manufacturing. Last week, Railway Minister Suresh Prabhu had said $120 billion will be made in next five years in the cash-strapped railways which is in the process of upgradation and expansion. Russia is likely to participate in railway projects in India, funding for which could be routed through the newly-set up BRICS' New Development Bank. (PTI)
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In a major restructuring of its mobile devices business, US tech giant Microsoft on Wednesday (8 July) said it is writing off $7.6 billion it spent on acquiring Nokia and will cut 7,800 jobs, but was silent on India impact."I want to update you on decisions impacting our phone business... We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business," Microsoft CEO Satya Nadella said in an email to employees.He said that restructuring of phone business has led to an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services business in addition to a restructuring charge of approximately $750 million to $850 million.Microsoft had acquired mobile devices business from Nokia in a $7.2 billion deal which concluded in April last year.This is the second round of major job cut after Nadella took over as Microsoft CEO. About a year ago he announced axing up to 18,000 jobs, biggest cuts in its 39-year history.After fresh round of job cuts, Nadella said that there is need to focus on phone efforts in the near term while driving reinvention."We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family," he said.As per IDC report for the first quarter of 2015, mobile phones based on Android operating system dominated the market with 78 per cent share, followed by Apple's iOS. Windows-based phones stood at third spot with market share of 2.7 per cent."In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group," Nadella said.As per the new strategy, Microsoft plans to narrow focus to three customer segments where it can make unique contributions and differentiate.The company's employee strength in India could not be ascertained. Microsoft had some 118,000 employees globally at the end of March.
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Chinese stocks bounced on Thursday, after the securities regulator banned shareholders with large stakes in listed firms from selling, in Beijing's most drastic step yet to stem the dramatic plunges that have roiled global financial markets. As the daily drumbeat of official announcements aimed at propping up the sinking equity market continued, state news agency Xinhua said police would investigate "malicious" short selling of stocks, and the banking regulator said it would allow lenders to roll over loans backed by stocks. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2 percent in early trading, while the Shanghai Composite Index gained 1 percent. Both had tumbled around 6-7 percent on Wednesday. More than 30 percent has been knocked off the value of Chinese shares since mid-June, and for some global investors the fear that China's market turmoil will destabilise the financial system is now a bigger risk than the crisis in Greece. Indeed, the Obama administration is worried the stock market crash could get in the way of Beijing's economic reform agenda. "The concern, that is a real one, is what does it mean about long-term growth in China," U.S. Treasury Secretary Jack Lew said on Wednesday at an event in Washington on financial stability. "How do Chinese policymakers respond to this, and what does it mean in terms of core conditions of the economy?" In the most draconian support measure so far, the China Securities Regulatory Commission (CSRC) said on its website late on Wednesday that holders of more than 5 percent of a company's stock would be barred from selling for the next six months. The CSRC, which warned earlier on Wednesday of "panic sentiment" gripping a market dominated by ordinary retail investors, said it would deal severely with any shareholders who violated the latest selling restriction. The prohibition is also seen applying to foreign investors with stakes in Shanghai- or Shenzhen-listed companies, although most of their holdings are below 5 percent. Separately, major shareholders of top Chinese banks including ICBC and companies including Sinopec pledged to either maintain their holdings or increase their stakes in the companies. Reform AgendaThe plunge in China's previously booming stock markets, which had more than doubled in the year to mid-June, is a major headache for President Xi Jinping and China's top leaders, who are already grappling with slowing growth. Beijing, which had made handing a larger role to market forces a centrepiece of its economic reform agenda, has rolled out a battery of measures to support the stock market, including an interest rate cut, suspension of initial public offerings and enlisting brokerages to buy stocks, backed by cash from the central bank. But the barrage of emergency measures had done little to arrest the slide in a market that has begun to seize up, with around half the companies listed on Shanghai and Shenzhen exchanges opting to escape the rout by having their shares suspended. China's Finance Ministry and state investor Central Huijin Investment Ltd pledged not to reduce their shareholdings in the country's Big Four banks - Industrial and Commercial Bank of China Ltd (ICBC), China Construction Bank, Agricultural Bank of China Ltd and Bank of China Ltd. Sinopec Corp, Asia's largest oil refiner, said in a filing on Wednesday that its controlling shareholder Sinopec Group had increased its stake in the listed company by buying 46 million domestic "A" shares in Shanghai, or 0.04 percent of the total issued share capital. China's stock market is still smaller than those of many developed countries relative to GDP, which analysts say could limit the impact of the turmoil on the real economy. Nevertheless, commodities that are sensitive to the outlook for the world's second biggest economy have been hit, with copper prices touching a six-year low on Wednesday and iron ore tumbling to a 10-year low. China's cabinet said on Wednesday it planned to spend 250 billion yuan ($40.3 billion) to foster growth in areas of the economy most in need of support and would accelerate construction of big public services projects. China has orchestrated brokerages and fund managers to promise to buy billions of dollars' worth of stocks, helped by a state-backed margin finance company that the central bank pledged on Wednesday to provide sufficient liquidity. The securities regulator said on Thursday the Securities Finance Corp would also use money to subscribe to mutual funds. "As many assets at financial institutions such as brokerages and publicly raised mutual funds are related to banks, the safety of such institutions will effectively prevent risk at the stock market from spreading to the banking system," said Guo Yanling, senior stock analyst at Shanghai Securities. (Reuters)
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Call drops have become a part of life for Indians just like having mobile phones became a part of their lives a decade ago. However, the situation is deteriorating by the day and it is becoming impossible to have a seamless conversation over the phone in most parts of the cities during peak hours (Between 9am -11am in the morning and 5 pm -10 pm in the evening).The situation is so bad that despite changing telecom service providers through mobile number portability option, there is no respite for the consumers. The government is threatening telecom operators with penalties if the services are not improved but the companies are blaming the government for providing insufficient spectrum. Who Is Right?The telecom minister, Ravi Shankar Prasad has categorically said that the government has provided enough spectrum to the companies and they need to invest in the infrastructure to improve customer satisfaction. In the recent round of auction, the government sold 470 MHz of airwaves.Shankar has also discussed the idea of penalizing companies if they do not improve services.According to some media reports, the telecom regulatory authority of India (Trai) is working on a mechanism to penalise the telecom operators for every call drop.What Do The Telecom Operators Say?According to Rajan Mathews, Director General, The Cellular Operators Association of India (COAI): "There is not enough spectrum with the Indian telecom operators. “In India, the average amount of spectrum per operator is between 12-15 MHz, whereas internationally it is 45-50 Mhz. How can you have better services with more subscribers and less spectrum?” asks Mathews.Apart from this, in the past few years telecom companies have faced resistance from activists in installing mobile towers in residential areas. Many PILs have been filed in different High courts of the country against installation of mobile towers so far. Department of telecommunication (DOT) and World Health organisation have so far denied any relation between cancer or other types of health hazards and mobile tower radiations.Despite this, the companies have found it difficult to install their towers in residential areas in the past three years. Gopal Vittal, MD and CEO of India’s largest telecom company by revenue and market share, recently said , “We need both spectrum and more sites for mobile towers. In Delhi Lutyens area alone we need 217 sites, but we have only 117 sites. The statement came in the backdrop of telecom minister blaming the telecom companies for not doing enough to improve services.Vittal was ruing the fact that people are averse to having mobile towers in their area.Is this the only reason for not installing more mobile towers?According to some experts, telecom companies are not ready to invest enough to install upgrade their infrastructure.The spectrum auction of 2010 was fiercely fought between the Indian telecos. The telecom sector shelled out around Rs 70,000 crore to the government for getting buying the spectrum, in the hope that the 3G services will help them recover the cost. In 2010, Bharti, won 3G spectrum in 13 circles, bidding Rs12,300 crore. This resulted in a debt pile up of Rs 10,233.10 crore on the company’s balance sheet in March 2011, an increase of 103 per cent from a debt of Rs 5,038 crore in March 2010. A part of this, debt was also taken to buy business in the Africa continent. But clearly the company has been paying a higher interest outgo since then.The spectrum auctions in 2014 and 2015 have further dented the financials of the telecom companies restraining their ability to create new infrastructure. In 2014-15 The telecom operators shelled out over Rs one lakh crore to retain their spectrum that was up for renewable.Global credit ratings agency, Moody’s says: “These payments will cause debt levels to rise significantly for most operators, including Bharti Airtel Ltd. (Baa3 stable) and Reliance Communications Limited (RCom, Ba3 stable), and will limit their ability to make additional investments over the next 12-24 months, possibly slowing the rollout of 3G/4G networks in India”.Will The Telecom Companies Not Improve At All?If the government gets tough, the companies will have to improve their services, even if it means more debt on the balance sheet for investments.Some operators have already decided to recognize the issue. Anil Ambani's Reliance Communications doesn't charge a customer for the outgoing mobile pulse where the call gets disconnected due to network problems. Similarly, Uninor gives a minute of free talk time within 24 hours for disconnections during a call.If the government comes out with stringent laws to penalise poor service quality by telecom operators, chances are that every telecom company will start compensating the consumers in some way or other.However, everything comes at a cost. Given the leveraged balance sheets of the companies, the only way out to improve services will be to increase the voice tariffs. But, is the customer ready to pay higher cost for a glitch free call?
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The situation in China coupled with the worries about rupee depreciation and the Greece-Eurozone crisis is likely to keep investors on the tenterhooks, says Paramita ChatterjeeJust when India was coping with the Greek crisis, sentiments were dampened on Wednesday (8 July) following a rout in other Asian markets with over 5 per cent crash in Shanghai.Chinese stock markets tumbled on Wednesday sending money managers in India into a tizzy. Sensex tanked 483.97 points to close at 27,687.72, while Nifty closed at 8,363.05 - down 147.75 points or 1.74 per cent. Panic spread and sentiments were down across Asia as China’s benchmark gauge towards its steepest drop in two years.Typically, when one market falls, especially that of the size of China, it’s natural for other markets to follow suit. After all, China is currently the second biggest market in terms of market capitalisation, despite a 37 per cent fall in its value.In the short term, there will of course be volatility. The situation in China coupled with the worries about rupee depreciation and the Greece-Eurozone crisis is likely to keep investors on the tenterhooks. “Adding to Greece crisis, slowdown in China has now started haunting the markets world over. Selling pressure was witnessed across the board as a result all the sectoral indices closed in red,” said Jayant Manglik, President, Retail Distribution, Religare Securities.However, Tarun Sisodia, Director & Head of Research, Anand Rathi Financial Services echoed a different sentiment and said the unfolding events in China are a result of structural problems within China and is unlikely to have a major impact on India going forward. There are certain sectors which may be impacted but all in all it is the local cues that would dictate the trend ahead and for that one should look out for CPI numbers, quarterly results and progress of monsoons, among other things.In 2014, the previous calendar year, India’s net trade deficit with China stood at $45 billion with India’s export figures standing at $13 billion. In 2013, India’s net trade deficit was $35 billion, which was approximately a quarter of India’s deficit with all other trading countries.In a global scenario, this kind of a steep fall in markets was witnessed by Japan in 1990. In Japan, it started with a credit market and real estate bubble, the first tremors of which were felt in stock market resulting in a crash. That in turn affected banks that were saddled in bad debt. Incidentally, in the late 1980s Japan was considered a power that could rival or even overtake the US like China is considered now! Wondering if China will meet with the same fate as Japan then!
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It has been about 16 months since Subrata Roy has been in jail and chances of his getting out seem bleak. The Sahara group on Tuesday (7 July) had expressed its inability to pay Rs 36,000 crore to its investors within 18 months as ordered by the Supreme Court last month, saying there was “no business house in the world or country” that could pay the amount within the time frame fixed by the court.Sahara’s lawyer Kapil Sibal, however, clarified that the “obligation to pay” wasn’t disputed. Sibal told a special bench headed by Justice TS Thakur that his client would file an application seeking a review of last month’s order setting tough terms for the group to secure the release of its jailed chief, Subrata Roy, in Tihar jail since March last year.Roy was jailed after he failed to appear before the Supreme Court in contempt proceedings initiated by market regulator, the Securities and Exchange Board of India (SEBI), after the company did not abide by its 2013 verdict ordering a refund of money collected under two financial schemes declared illegal by the top court.Later, the court said Roy and two jailed directors would be released after the company deposited Rs 10,000 crore – half in cash and the remaining as bank guarantees – as surety amount. Sahara failed to comply with the conditions, which is why Roy remains in jail.The Supreme Court on 19 June had set a schedule for Sahara chief Subrata Roy and his group to return Rs 36,000 crore in instalments over 18 months to the Securities and Exchange Board of India (Sebi).The payments shall begin once Roy and two Sahara group directors are released from Tihar jail. The three-judge bench comprising justices T.S. Thakur, Anil R. Dave and A.K. Sikri was hearing arguments related to a dispute over the sale of a Sahara-owned 145-acre property in Gorakhpur, Uttar Pradesh.While the Sahara group is in advanced negotiations with one party to sell the plot of land for Rs 64 crore, another developer has offered Rs 110 crore. The second developer approached the Supreme Court to consider its proposal to buy the land at a higher price.Trial Court Proceedings Again Roy, Others Stayed Till Aug 18On July 2, Delhi High court extended till August 18 the stay on trial court proceedings against Sahara chief Subrata Roy, now in Tihar Jail.Justice Suresh Kait said the interim order of April 10, by which the proceedings and bailable warrants were stayed against Roy and two directors of Sahara India Commercial Corporation Ltd (SICCL), J B Roy and Ranoj Das Gupta, would continue.The court extended relief to the Sahara chief and three others after they sought time to submit their reply to the affidavit filed by the IT department.The IT department in its affidavit has contended that it filed a complaint in the trial court against Roy and the others as they had not filed their returns. In its affidavit, it also said that action was taken after issuing a show cause notice to them and that the amounts claimed by the company and its directors as losses were not correct.By its April 10 order, the court had also stayed the proceedings against SICCL which was made an accused in the case.Besides Subrata Roy, J B Roy and Gupta have approached the court after warrants were issued against them, while another director, O P Srivastava, has also moved court seeking quashing of the trial court proceedings.On March 24, the trial court had issued bailable warrants against J B Roy and Gupta for their failure to appear before it and had sought the presence of all the accused on April 15.It had also issued production warrant for Subrata Roy and directed the jail authorities to produce him before the court.The IT department had on February 13 filed a complaint in the trial court against the company and its directors, Subrata Roy, J B Roy, O P Srivastava and Ranoj Das Gupta for not filing the return of the company for 2013-14.They were booked for offence under Section 276 CC of the IT Act, which deals with failure to furnish return of income in due time.The court had earlier taken cognisance of the complaint and issued summons to the five accused seeking their presence.The income tax return was not filed by them till the time of filing of the complaint and cognisance taken by the court.The IT department's complaint said several notices were issued to the firm and its directors. In their letters, the accused had sought time to file the return but did not do so even after they were granted time. Thereafter, the complaint was filed in the court, it said.But the chances of Subrata Roy getting out of jail has become more and more difficult with the recent terms and conditions set by the Supreme Court.
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High performing companies are backed by passionate teams and it does not happen by chance, says Dr. Yasho V. VermaWhich came first - Profitable companies or great companies to work at? This isn't a chicken and egg question but surely one that must not be ignored.Today is a age of fast learners and fast growing companies racing agaisnt time to turn into profitable ventures. Profit motive is a good thing but as the old saying goes, 'As you sow, so shall you reap' seems a suitable fit to describe how companies must look into employee engagement models to ensure they are nurturing winning teams while also not losing the commercial focus.It is a well established fact that highly engaged employees' quotient is directly proportinal to their greater commitment levels. More the employees are bound with a company behaviourally and intellectualy, they tend to contribute significanlty well in terms of knowledge, skills and capabilites resulting in an overall healthy and conducive work culture for all. They do not feel fatigued as work is no work for them, they relate to companies' philosophy, mission and vision and find a real connection and pride of their association with the company. They are easily identified as the passionate lot, a quality not easy to ignore soon after hiring.What keeps the employee engaged is the quality of work and satisfaction derived in terms of cognitive value and aspirational growth. His individual goals of personal growth get intuitively linked to that of organisation at large. The responisbilty of managers and top manegment becomes significant and influencing to help enrich the employees experience and continue to do so for all times to come. Rewards and recognition do boost the morale once in a while, but what makes them going is the camaraderie they share with one and all. It is becoming increasingly important for leaders and managers to hold a non-judgemental view about how an individual approaches a task, the end result must be explained and expected without breathing too much on the brave necks.Some significant influencing factors that may help create amiable work environments and happy employees contributing to company's profitabilty include:Leadership Style: Is it entreprenerial or bossy, the latter is obsolete. One may opt or create their own and usually it is a discreet mix of many styles.Transparency - Usually top down, it is the measure or degree intent to share and communicate.Organisational structure - Flat or layered, the modern way is moving towards larger span of control and more collaborative in nature.Systems and procedures - Turning more SOP driven and non bureacratic.Autonomy - Delegation is turning defunct, trust plays a key role as accountability is given weightage and end results matter to all parties concerned. Reward and Recognition - No longer a tool or means to reach objective, it is a mechanism to differentiate outstanding achievers, manifestation of self actualisation as per maslow's theory, though the theory may apparently seem archival to some.Environment- Cultural fabric, woven with a common intent to work hard, built with mutual trust and team work of those who are largely risk bearers, consider experience and learning as supreme, prefer a non - political, no blame game calm and peaceful work background.So while companies may run like formula one cars, it is advisable they wear their helmets, tighten their seat belts and do not forget to enjoy the ride, navigation well must be the resolve.The author is a management thinker & philosopher, advisor to Videocon and a member on board of Dena Bank
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Only 100 units of Desert Storm Despatch and Squadron Blue Despatch to be manufactured in India, reports Haider Ali KhanRoyal Enfield announced the price of its limited edition range of motorcycles titled Despatch in Mumbai on Wednesday (8 July). This will be available only in two colour variants, Desert Storm Despatch and Squadron Blue Despatch in India. Only 100 units of each colour variant will be manufactured for sale in India.“Customers can book their motorcycles starting 10 am from 15 July at store.royalenfield.com. After booking, customers can take the delivery of the motorcycle from the nearest company store or dealership in their city. The limited edition motorcycles range has received tremendous response after it was unveiled at Royal Enfield’s exclusive store at Khan Market in Delhi” said Rudratej Singh, president of Royal Enfield.This limited edition motorcycles come with an exclusive signature camouflage pattern and a distinctive embossed hallmark detailing the particulars of its manufacture. Each Royal Enfield Despatch motorcycle has been handcrafted using a unique film transfer technique that uses a delicate and precise hands-on process to transfer the camouflage pattern on the motorcycle’s skin, making each motorcycle to be unique before rolling out of the factory. Royal Enfield Despatch comes with genuine Italian leather seats accompanied by a classic leather buckle strap to hold the air filter box. This edition is inspired by the stealthy, non-reflective paint on the engines of the original Despatch Rider motorcycles; the bike gets a matte black paint on the engine, exhaust and silencer.Royal Enfield has new unit in Chennai and will be able to grow its production rapidly against a surge in demand for its motorcycles. It had recorded 50 per cent growth since last 3 years.Royal Enfield’s products include the Bullet, Classic and Thunderbird models in both 350 and 500cc and the recently introduced Continental GT 535cc cafe racer. It operates through 12 company-operated stores and 400 dealers in all major cities and towns in India and exports to over 50 countries across the world including the USA and Middle East.The oldest motorcycle company in continuous production, Royal Enfield made its first motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-size motorcycle segment in India with its unique and distinctive modern classic bikes. With its new manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly against a surge in demand for its motorcycles. With 50 per cent growth every year for the last 3 years, Royal Enfield is fast becoming a very important player in the global mid-size motorcycle market and is working towards re-inventing this space with motorcycles that are evocative and engaging and great fun to ride.
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