Enthused with winning a defence project worth Rs 2,500 crore, NRI billionaire Anil Agarwal-led Sterlite Technologies is now vying for another strategic project in the sector worth Rs 7,000 crore. The optical fibre manufacturer is also connecting defence establishments in Jammu & Kashmir with high-speed optical fibres. “We are also vying for other defence projects. We already have one project for Rs 2,500 crore, which is essentially an army project. We have already bid for another army project worth Rs 7,000 crore,” Sterlite Technologies Non-Executive Chairman Anil Agarwal said. Agarwal, who is also the Chairman of mining giant Vedanta Resources, said the company is bullish on the defence sector. The company’s CEO Anand Agarwal said Sterlite produces state-of-the-art optical fibres, which can compete with the best globally. “Our value proposition is among the best globally and above all, we fulfill the requirements for the ‘Make in India’ programme,” he added.Sterlite is also the biggest provider for Prime Minister Narendra Modi’s ambitious BharatNet project, which is estimated to cost the government over Rs 72,000 crore. National Optical Fibre Network (NOFN) or BharatNet, which forms the backbone of the Digital India initiative, seeks to connect 2.5 lakh gram panchayats with high-speed broadband by December, 2017. The project cost is estimated to be around Rs 72,778 crore. Anil said the firm will play the role of optical fibre manufacturer, network creator, network designer, network manager and maybe even in the space of specialised services. “At the moment, we will make optical fibres, which is a very big business. Then, we are doing this complete Digital India’s massive network, that is 60-70 per cent is to be created. “You have to create software, you have to get best international people to supply equipment, put things together. So that is the focus we have,” he added. Moving ahead with economic sector reforms, the Cabinet in August last year had raised FDI ceiling in the sensitive defence sector to 49 per cent from 26 per cent, with the condition that control of the joint venture defence equipment manufacturing will remain in Indian hands.The move was aimed at boosting domestic industry of a country which imports up to 70 per cent of its military hardware.(PTI)
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Reliance Industries Ltd plans to sell a 3.1 per cent stake, worth $32 million at the current market price, in unit Network18 Media & Investments Ltd to comply with rules mandating public ownership in listed firms.Reliance said in a statement on Monday that the selldown of 32.5 million shares on Wednesday would help it meet the minimum 25 percent public ownership rule.Conglomerate Reliance, controlled by billionaire Mukesh Ambani, last year bought a majority stake in the media group that runs business news channels, a news portal and other news and e-commerce websites.At the stock's Monday close, the stake is valued at Rs 203 crore ($32 million). A unit of Reliance, which owns the stake, will sell it through stock exchanges.Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of Rs 3,88,494 crore ($62.2 billion), cash profit of Rs 36,291 crore ($ 5.8 billion) and net profit of Rs 23,566 crore ($3.8 billion) for the year ended March 31, 2015.RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ and continues to be featured for the 11th consecutive year, currently ranking 114th in terms of revenues and 155th in terms of profits. RIL ranks 194th in the Financial Times’ FT Global 500 2014 list of the world’s largest companies. As per Newsweek’s Green Rankings 2014, RIL is India’s greenest and most environment-friendly company, ranking 185th among the world’s largest 500 companies.
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One month after the ban of Maggi, instant noodles sales in India have crashed by over 90 per cent to just about Rs 30 crore from Rs 350 crore a month earlier, according to industry estimates. With the key category facing an uncertain future, food processing industry players are worried that this could have an impact on their overall investment plans, while companies are now facing ‘increased harassment from safety inspectors’, according to a senior official of industry body Assocham. “In the last one month the instant noodles category has suffered a massive drop in sales to about Rs 30 crore a month. Before the Maggi ban this category was around Rs 4,200 crore annually, which is about Rs 350 crore per month. There is a fear psychosis among consumers,” the official said. Last month central food safety regulator FSSAI had banned Nestle’s Maggi saying it was “unsafe and hazardous” for consumption after finding excessive levels of lead and violation of labelling regulations on taste enhancer monosodium glutamate (MSG). Nestle India had recalled Maggi from the markets. With FSSAI cracking the whip, HUL withdrew its Knorr Chinese noodles and Indo Nissin Top Ramen noodles which were pending for approval with the food safety regulator. Packaged food firms on the radar In the aftermath of Maggi controversy, there has been “increased focus” on packaged food companies, the official said, adding “there is a lot of harassment going at lower level. The industry is very scared of being subjected to more harassment”. Seeking government intervention, the Assocham official said: “There is no standard protocol for testing in different states and manufacturers are not given enough time to take remedial measures.” At least on the issue of MSG, the government should clarify that it was misbranding and not a safety issue. On the impact of the controversy on the food processing industry, the official said: “If there is a feeling that all food companies are rogue and consumers stay away from packaged food, who is going to invest?” Currently, investments proposed in food-related projects is about Rs 90,000 crore which can have a multiplier effect, the official said, adding even employment could also be affected to an extent if the uncertainty over noodles category remained. Around 1,500 workers of Nestle India involved in manufacturing of Maggi have been impacted by the stoppage of production.(PTI)
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As Maruti struggles to be as successful in the big cars segment as it has been in its small car one, Suzuki may be planning to roll out its luxury cars without the Maruti brand name. In its bid to crack the big vehicle segment, Maruti Suzuki India is establishing a new setup of retail outlets under Nexa brand to sell premium products starting with its upcoming S-Cross model.According to a Times of India report, Suzuki’s new cars will carry only the ‘S’ badge. The cars will sport the model’s name and a logo denoting the vehicle’s engine size and a Nexa dealership sticker on the rear. The premium products from Maruti Suzuki should include the Swift hatchback, Swift DZire, Ertiga and the Ciaz at the moment. The Kizashi, the Vitara Brezza and the YRA (or the iK-2) will be also come under the premium category. About 20 dealerships will be opened in the initial phase and later on this will be expanded.Globally, car makers, such as Nissan Motor Co., Toyota Motor Corp. and Honda Motor Co. have similar models where they sell luxury cars under Infiniti, Lexus and Acura brands. But these are aimed at countering the German marques such as the Mercedes-Benz, BMW AG and Audi.The company that has set a target of selling two million units annually by 2020 with around 25 models, expects the Nexa network to contribute a significant amount to its sales and will open 100 dealerships under it in 30 cities by the end of ongoing fiscal.Its different dealerships have hired 700 people from other sectors like hospitality, aviation and financial services to offer a differentiated luxury car buying experience for its "discerning customers".Maruti Suzuki India Executive Director (Marketing and Sales) RS Kalsi told PTI in Nashik, "We have created a customer base of 1.5 crore in the three decades of our operations. Our customer profile is changing today and we not only need to offer new premium products so that they stay with us when they look to upgrade to bigger cars but also a different buying experience. Many of them are third generation customers, young achievers who are experienced car users", he added."That's why we need to offer a differentiated buying experience to these customers. So we have hired people from other sectors like hospitality, aviation and financial services and will even provide personal relationship manager," he added.On the significance of Nexa and upcoming S-Cross, Kalsi said: "In order to extend our leadership we have to continuously find new segment and have to raise the bar. We have set a target of selling two million units annually by 2020 and these two new initiatives in 2015-16 are the first few steps in that direction."MSI has so far sold 3,41,329 units in the current fiscal till June, up 13.8 per cent from 2,99,894 units sold during the same period previous fiscal.For the 2014-15 financial year, the company had posted its highest ever sales at 12,92,415 units, up 11.9 per cent, from 11,55,041 units in 2013-14. The previous high was in 2010-11, when the company had sold 12,71,005 units.The company's domestic sales during the last fiscal stood at 11,70,702 units, up 11.1 per cent, from 10,53,689 units in 2013-14 fiscal.
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Payoneer, a cross-border payments company available in 200+ countries, is soon going to host the 2nd Payoneer Forum event on 11 July 2015, In New Delhi. The event will take place from 4 PM onwards at the Sri Sathya Sai Auditorium, Lodhi Road. The event brings together an audience of professionals, consultants and entrepreneurs to network and listen to our expert speakers and panel, offering a combined experience of 40+ industry years!As the new Mary Meeker Internet Trends report shows, India is the world leader in Internet user additions per year, up 63 million in 2014 with 65 per cent of traffic through mobile. The Indian market is producing more highly skilled professionals than ever before and this greater connectivity is changing lives and opportunities for businesses worldwide. Payoneer’s launch in India comes at the right time. Its reliable and secure platform saves money in cross-border transactions, prevents dubious payment possibilities and empowers freelancers and entrepreneurs to work in a conducive environment without worrying about payments”, says Chitraparna Sinha, the owner of Esmee Network, a digital marketing agency in New Delhi and one of the Payoneer (India) Brand Ambassadors.The Event Sessions areSession 1- The Rise of Asian Freelancers, by Dipesh GargSession 2 - How To Live A Laptop Lifestyle Freelancer Life?, by Jitendra VaswaniSession 3: Building Your Freelancing Asset - How to Find, Convert and Retain Clients?, by Chitraparna SinhaSession 4 – How I Created a Consulting Firm: Embedding Digital Marketing into The Value Chain, by Ritu DavidSession 5 – Affiliate Marketing - A Passive Freelancing, by Kulwant NagiSession 6 – Entrepreneurship Journey, by Mayank WadhwaSession 7 – Native Advertising - After all, What is it?, by Arun PrabhudesaiLastly, there will be an expert panel session comprising of Siddharth Bagga, Vipul Taneja & Danish Wadhwa.
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Even as pundits say that the Greece crisis is unlikely to have any major impact on India in the long run since the two countries' trade volume is relatively low, stock markets are expected to remain volatile in the short term.Sensex opened in red in the morning trade on Monday (6 July) and plunged over 200 points after Greece voted against the bailout terms set by its creditors. However, as the day progressed, it bounced back to close at 28,208.76, up 115.97 points or 0.41 per cent, while Nifty rose 37.25 points to close at 8,522.15, in the backdrop of most sectors witnessing renewed buying interest at lower levels.“Like other global markets, the initial reaction to Greece voting, where they rejected conditions of a rescue package from creditors on Sunday, was negative on domestic front,” said Jayant Manglik, President, Retail Distribution at Religare Securities. Besides, depreciation in Indian rupee against dollar was also dampening the markets sentiments, he added. However, noticeable buying interest across the board not only helped index to pare losses but end the day in green as well.While the Indian economy is not linked to Greece in any major way, there are certain concerns which are looming large on the bourses. If Greece continues to be a part of Europe and asks for concession on the austerity package or debt write-off, there may be a situation where other nations such as Spain, Portugal and Italy come up with a similar request. Also, on the contrary, if Greece decides to finally move out of Europe, even then markets will doubt the EU's commitment to protect its unity and weak link, said markets experts. “Withdrawal of confidence by the market on EU's commitment can create crisis situation for the weak links of EU,” said Nilesh Shah, MD, Kotak Mutual Fund.Going forward, India is likely to be impacted from the flight of safety into Dollarized assets, which in turn may result in some volatility in the omestic equity, debt and the forex market. However, since Indian government is closely monitoring the situation and RBI has increased its forex reserves to around US$ 355 bn, it is likely to provide a strong cushion for any spike in dollar demand, added Shah.In the months to come, the factors that will determine market numbers are CPI numbers, quarterly results, progress of monsoons and major bills such as GST, among others.
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Online taxi-hailing company Uber has signed a memorandum of understanding (MoU) with the Telangana government aimed at creating thousands of jobs and entrepreneurship opportunities, fostering technical innovation and research into smart city initiatives. Uber has committed $50 million (Rs 317 crore) over 5 years for a centre it is establishing in Hyderabad to train its drivers and customer support staff. "It is an outstanding example of what can be achieved when the private and the public sector work together with the best interests of the local communities at heart to bridge the digital divide in line with Prime Minister Narendra Modi’s Digital India initiative,” said Siddharth Shanker, general manager Uber. Uber has a long-term commitment to creating tens of thousands of jobs and entrepreneurship opportunities, bringing greater efficiency to automobile utilization and safer transportation choices for people in Telangana state. The MoU is a visionary step and a significant milestone in how governments and Uber are working together around the world to develop smarter cities. Sixteen months ago Uber transformed urban mobility for millions of Indians, when it launched in Hyderabad, by introducing a more safe, reliable and efficient way to move around the city. In fact, the flexibility, entrepreneurial opportunity and earning potential of Uber’s innovative technology has an equally transformational impact on the livelihoods of thousands of driver partners and their families. The company will leverage its unique model to create unrivalled entrepreneurship opportunities and support tens of thousands of middle class jobs in the state of Telangana. Uber will also collaborate with Telangana Academy for Skills and Knowledge to identify and train more than 2,000 drivers by the end of 2016, who will then drive on its platform, the company said in a statement on Monday. Uber’s Vehicle Finance programme and technology platform will facilitate first-time vehicle ownership and provide unrivalled economic opportunities for the successful candidates from the TASK programme.
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India was conspicuous at this year’s Cannes Lions by its worst performance in yearsBy Noor Fathima Warsia India had a disappointing year at the Cannes Lions International Festival of Creativity, the annual international advertising jamboree, as far as its showing in New Media category was concerned. It was a complete washout for Indian agencies this year as none of the entries were able to even make it to the shortlist in the category.Overall, however, Indian agencies managed to put up a decent show in the traditional media categories of Print and Outdoor. Besides, a Grand Prix in the newly introduced category of Glass Lions that awards ‘work done for good’ such as for social causes, they bagged 12 Lions including six silver and five bronze and a Glass Lion. BBDO India won the Glass Lion Grand Prix for its ‘Touch the Pickle’ campaign for Procter & Gamble’s brand Whisper.Although India’s overall performance cannot be described as bad in itself, its steady rise at the global platform makes its showing this year one of its worst. In 2014, India won 27 metals of which five were gold, nine silver and 13 bronze.Jean Lin, CEO, Isobar WorldwideJury president, Cyber LionsThe nearly 200 Indian delegates at Cannes Lions this year looked visibly disenchanted with the performance despite the Grand Prix. Multiple reasons have been cited for the poor performance, but it all eventually boils down to the quality of work. Says Rajiv Rao, chief creative officer, Ogilvy & Mather: “The idea should be powerful enough to catch a jury’s attention. As proven by the Grand Prix winner, the ‘Touch the Pickle’ campaign, the content should be relevant to the country. A good idea can win in any category.”The fact remains that Indian agencies have yet to prove themselves in the newer categories such as Cyber Lions, Mobile Lions, Creative Data or even the Innovation Lions category. “India needs to work really hard and do fresh work. Unlike Print and Television, Cyber and Mobile are categories that Indian agencies are still trying to understand so there is still some time before we begin creating work that competes and wins at the global level,” says Rao. Besides, it’s time Indian agencies started paying attention to the packaging of their entries so as to tell the stories in a compelling and convincing way.One hopes India will learn from its disappointment at Cannes Lions. As K.V. Sridhar, chief creative officer, SapientNitro India, says, “There will be years when we are at a low, but it is important that we take our learning and move on.” Echoes Rao: “Every year we must learn from the festival and go back inspired to produce better content for the advertising world.”Jury MusingsThe overall quality of work in the Cyber Lions category was very refreshing this year. We had a great jury that was keen to award not only fresh but also ideas that make a difference to the brand. My observation was that Asia per se, and not just India, could have done much better. For one thing, I did not see enough entries sent to the category from the region. It is a fact that there is a lot of good work that we are seeing out there, but agencies are not entering this in a platform like Cannes Lions. The cost of the entry could be one reason, but I would also urge agencies to be confident of the kind of work they are doing. Some of the work from the region is as good as what some of the more advanced markets are doing. As the digital landscape becomes more pronounced in a market like India, I look forward to a lot more coming from India. Indian creativity has a new canvas to paint in the form of digital, and I am convinced that the creative professionals will take up that opportunity.Jasmin Sohrabji, CEO, Omnicom Media Group India & Southeast Asia, Juror, Media LionsMedia is always an interesting category to judge in a festival that is predominantly about awarding creativity and great ideas. The clutter and competition in media today needs great ideas to differentiate work that will make a difference for brands. For agencies and advertising professionals, that is the ultimate prize — doing work that will benefit the brand. I was delighted to see some great quality work in Media Lions category this year. The judging process allowed us to spend time with the entries and give fair time to the work that was entered. There is an inherent challenge, at a platform like Cannes Lions, in judging creative work done for a business-driven, high-spending brand and organisations promoting social causes with the same parameters. That being said, I would put special attention on ideas that are scalable. The strength of an idea comes through when you can take it to a larger set of audience, and put it to different kinds of tests. The longevity of the idea also matters. Between a great creative spark seen in a one-off activity and an idea that is deeply rooted in insights and strategy, I would like to see more of the latter in Media Lions. That is what differentiates the work that will eventually stay on, and resonate with audiences in a manner that matters.Storytelling In Social MediaEvan Spiegel, co-founder & CEO of social messaging app Snapchat, tells Noor Fathima Warsia why Snapchat is different from other social platforms.It is after what he describes as a ‘series of unfortunate incidents’ that Evan Spiegel, co-founder and CEO of Snapchat, had the time to create a social platform that took a different view on how people profiled themselves, and of storytelling on social media. His venture prior to Snapchat, which was also in partnership with Bobby Murphy (co-founder, Snapchat) had failed. He was “thrown out” of his fraternity at Stanford, and he was recovering from a breakup of a three-year old relationship. “In the context of not-a-lot-to-do, this was when we began work on Snapchat,” Spiegel recalls.While still significantly behind social messaging players such as WhatsApp, Facebook Messenger, WeChat, Viber and LINE in India, Snapchat has tried to differentiate itself in its product and growth strategy.The beginnings for the app were simple. The logo was hand drawn by Spiegel and the colour yellow was chosen because “none of the top 100 popular apps were yellow”. While the success of Snapchat is evidence enough of how the platform’s simplicity paid off, Spiegel believes that there were some fundamental areas of difference between Snapchat and other platforms. He says, “For me, the most important is restoring immediacy to conversations — which is not what social platforms have been about. The second, which even surprised us in the way it caught up, is our stories product. We started putting stories and videos in a chronological order and that really worked.”EVAN SPIEGEL, Co-founder & CEO SnapchatIn his view, prior to Snapchat, social media worked more as a repository. “It was ‘I am every experience I have ever had’. But for Snapchat, a person is a result of those experiences. Social platforms can grow at a rapid pace, and a profile is said to be a copy of the user but that changes. Our approach really targeted that,” he informs.Brands Are Not PeopleSnapchat challenges the mindset that brands should behave like people on social media platforms in order to become a part of conversations. “The growth of social media has been about bringing products to people, and then jamming brands in that. Brands tend to have a certain identity and message. They change the way they express it, but they do not deviate much. This is not true for people. There is a fundamental difference. Brands should be friendly but they cannot behave like buddies,” Spiegel states.This was also the time that Snapchat began working on its stories product that essentially looked at different events from around the world and encouraged users to create a public story collection through their videos and images. “We believe that many different perspectives are better than any one. When you see an event from 10,000 perspectives, it has the depth of the event,” he explains.After the initial success of the product, Snapchat took more steps including hiring journalists to cover events competently. The platform follows an average 24-hours timeframe for its stories.According to Spiegel, Snapchat’s first focus is to ensure that it is getting its product right and is able to introduce improvisations to existing products and create new products that can help it better engage wi th people, and in the process with brands. Its strategy in India would be no different, but by the company’s own admission, it has significant ground to cover in this social media crazy market. @NFWarsia (This story was published in BW | Businessworld Issue Dated 27-07-2015)
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