derik times 23rd edition

8/4/2019 Derik Times 23rd Edition

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1

was undervalued by53% against the USdollar in August.Earlier, a report by con-

sultant PwC suggestedthat the Indian economywould surpass theJapanese economy in2012. The IMF expectsthe Japanese economyto contract 0.7% thisyear while India is ex-pected to grow 8.2%. Abigger economy couldalso give the govern-ment additional cloutand bargaining power

overseas.India, once a recipientnation for foreign aid,could now come to-gether with Brazil, Rus-sia and China to form afund to stabilise totter-ing economies in theEuro zone.Globally, companieshave their eyes set onIndia as a rapidly grow-ing nation that is full ofopportunities. Thesheer scale of develop-ment needed coulddrive growth for manyyears. India has theadvantage of size. Thescope of growth andexcess capacity presentin terms of resourceswould drive growth inthe future.

India might become theworld's third largesteconomy in 2011 byovertaking Japan in

terms of gross domesticproduct (GDP) meas-ured according tothe domestic pur-chasing power ofthe rupee, otherwisecalled purchasingpower parity.India is now thefourth-largest econ-omy behind the US,China and Japan.Numbers from 2010

show that the Japa-nese economy wasworth $4.31 trillion,with India snappingat its heels at $4.06trillion. But afterMarch's devastatingtsunami and earth-quakes, Japan's econ-omy is widely expectedto contract while India'seconomy will grow be-tween 7% and 8% thisfiscal.IMF forecasts showIndia and Japan neck-to-neck in 2011, but thedisaster in Japan hasbrought the event for-ward. Were it not for theearthquake and tsu-nami, India would haveovertaken Japan inaround 2013-14. The

purchasing power parity(PPP) method meas-ures the size of aneconomy by levelling

price differences be-tween countries that

occur in the process ofconversion to a singlecurrency. Under thismethod, a dollar shouldbe able to buy the sameamount of goods any-where in the world andexchange rates shouldadjust accordingly. TheEconomist's Big MacIndex, which takes theprice of a Big Mac bur-ger across 120 coun-tries to calculate the'real' price of its cur-rency, is a crude way tomeasure PPP. Indiawas included in the in-dex recently. It showedthat the Indian rupee

INDIA TO TOPPLE JAPAN AS WORLD'S 3RD-LARGEST ECONOMY

Synapz club

Inside this issue:

CORPORATE

watch

2-3

ECONOMY

watch

4-6

INDUSTRY

watch

7-9

FACT OF WEEK 10

INTERVIEW 11-12

ZARGONOMICS 13

ENTREPRENEUR 14-15

Columnist 16

Date 26 September 2011

Edition 23rd , Issue 19-24 September

Whats new

Wit Ness-

Management joke

on Back cover

Crosswordsfun

with Knowledge

Raise your level

A publication of


2/20

2

Apple Inc has been

granted 40 patents in

China, which will helpthe maker of iPhones

and iPads gain more

intellectual property pro-

tection in the country.

Apple, whose mobile

devices are among the

most pirated gadgets in

China, was granted the

patents on Sept 9. The

patents cover 37 of its

products including the

iPhone, iPad and

MacBook Air, and the

architecture of its three

stores in Shanghai.

Most of the new patents

were related to aspects

of its mobile phones,

such as user interface

and speaker technology.

Apple has been involved

in numerous lawsuits

with handset manufac-

turers, including SouthKorea's Samsung Elec-

tronics Co Ltd and Tai-

wan's HTC Corp. Sam-

sung Electronics was

considering legal action

to block sales of Apple's

new iPhone, in what

could be its strongest

step to defend against

claims by the US Com-

pany that it had copied

its product designs.

provide a Mitsubishi-

badged luxury sedan

based on its Fuga

model from the summer

of 2012. The Japanese

Nissan Motor Co and

Mitsubishi Motors Corpannounced an expan-

sion of their original

equipment manufactur-

ing (OEM) agreement to

include a high-end se-

dan that had been under

consideration under

their broad operational

tie-up. Nissan will

automakers will also

consider a deal underwhich Mitsubishi would

build the electric Mini-

cab-MiEV commercial

van for Nissan. Nissan

and Mitsubishi deep-

ened their cooperation

late last year in an effort

to share technology and

resources.

APPLE GRANTED 40 PATENTS IN CHINA

NISSAN, MITSUBISHI MOTORS ANNOUNCE NEW OEM MODEL

emerging generation of

green-energy automo-

biles here. And the state

-controlled Chinese auto

industry is just as eager

for expertise from GM,

an acknowledged globalleader in electric car

technology. GM's deci-

sion to develop electric

cars in China would be

part of the company's

effort to improve the

technical capabilities of

its joint ventures in

China, as the country's

car buyers become

more demanding.

GM holds minoritystakes in joint ventures

in China that sell more

cars each year than GM

sells in the U.S.

GM TO DEVELOP ELECTRIC CARS WITH CHINESE AUTOMAKER

General Motors would

develop electric cars in

China through a joint

venture with a Chinese

automaker, and would

transfer battery and

other electric car tech-

nology to the venture.GM, which is already

the largest foreign

maker of conventional

vehicles in China, is

keen to help define the

Page 2

state-controlled

Chinese auto

industry is just as

eager for expertise

from GM

Derik times CORPORATE WATCH


3/20

3

Bosch and Siemens

Home Appliances

Group (BSH), largestmanufacturer of home

appliances in Europe

announced the launch

of Bosch home appli-

ances in India on 21st

Sep 2011. The brand

will be made available

across India in two

phases. The initial prod-

uct launch for India will

be done through leading

multi-brand retailers in

Tamil Nadu, Karnataka,

Andhra Pradesh and

Delhi-NCR region and inthe second phase the

products will be made

available across In-

dia. On occasion of the

launch, Marc Hantscher,

MD & CEO, BSH In-

dia said, "Bosch home

appliances will be avail-

able across India by mid

-2012." Hantscher also

confirmed the allotment

of land by Tamilnadu

government for the construc-

tion of Bosch factory in In-

dia. Bosch will be launchingtheir range of washing ma-

chines, refrigerators and

washing machines at this

point. Bosch will be distribut-

ing through 120 dealers

across 220 outlets in the

country. Advertising for the

brand is being handled by

Ogilvy and the focus is will be

mostly mass-media in TV

and print as well as shop-in-

shop activities.

and gas dehydration units,

with required utilities andsupporting facilities, as

well as flow lines, well-pad

piping, a remote manifold

station and liquid and gas

export pipelines. It will be

situated at the Lekhwair

oil and gas fields in

Oman. The order was

bagged by L&T Hydrocar-

Engineering and construc-

tion major Larson & Tou-bros hydrocarbon division

has bagged an Rs 700

crore contract from Petro-

leum Development Oman

for setting up a 3-

MMSCMD Greenfield gas

treatment plant. The gas

treatment plant will com-

prise gas desulphurization

bon's mid and downstream

business division through aninternational competitive bid-

ding (ICB) tender. The single-

train gas treatment plant at

Lekhwair gas will export

treated gas to the government

gas plant in Yibal and un-

sterilized condensate and wa-

ter to the existing Lekhwair

production station.

BOSCH HOME APPLIANCES LAUNCHED IN INDIA

L &T BAGS RS 700 CR ORDER FROM OMANESE GAS COMPANY

on business innovation in

software product develop-

ment, test engineering

and business critical plat-

form development.

HCL has also announced

Microsoft as its first offi-

cial enterprise customer.

Microsoft director Brad

Weed pledged $200,000

from the workforce investment

act fund to HCL to assist with

the training of future employ-

ees from Seattle area. The

collaborative engineering hub

will have a seating capacity of

350 people and will provideboth engineering and product

development services in the

areas of internationalization

and mobility.

HCL TECHNOLOGIES IN WASHINGTON TO CREATE 400 JOBS

HCL Technologies on

22nd September said it

has opened a global de-

livery centre in Redmond,

Washington, where its

initial investment of $4

million will create over

400 jobs in the Seattlearea over the next two

years. The new centre will

support the company's

continued global expan-

sion and increased focus

Page 3Derik times CORPORATE WATCH


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4

US Treasury Secretary Timothy

Geithner identified India, China

and Brazil as countries that will

experience rapid growth in thecoming decades, which would

provide "consistent strength" to

the American economy. It is

very likely everyone going to

see India, China, and Brazil-

the most populous countries

of the world grow very, very

rapidly in the coming decades.

The most important thing that

will determine the pace of ex-

port growth over a five-year

period of time is how fast the

world grows. But US

export growth has been

really very strong in the

earliest days of the re-covery and it's encour-

agingly strong because

it's happening across

the American economy,

from agriculture through

manufacturing, to all the

high-tech stuff and ser-

vices. That shows,

again, one of the great

fundamental strengths

of the United States,

which is that because

productivity growth has

been so high here, be-

cause the basic dynam-

ics of innovation are sostrong, our financial sys-

tem, even with the mess

of the crisis, is still really

better than any system

in the world at allocating

capital to innovators to

support growing compa-

nies.

the economic bilateral

relationship betweenIndia and the United

States and creating

jobs. Noting that eco-

nomics and globalisa-

tion is not a zero-sum

game, Indias growing

economy should not be

seen as a burden on the

US, nor a symbol of

Americas failure and

Welcoming Indian announce-

ment on guidelines for Infra-structure Debt Fund, the US-

India CEO Forum announced

several initiatives to improve

the private-public-partnership

between the two sides in areas

like clean drinking water, con-

servation and distribution sys-

tem in India. The CEO Forums

recommendations have pro-

vided a roadmap to strengthen

Indias success. Job

creation there does notequate to job loss here

the Reserve Bank an-

nounced guidelines for

permitting banks and

Non Banking Financial

Companies (NBFCs) to

set up Infrastructure

Debt Funds (IDFs) to

help meet long-term

financing for the sector.

CEO FORUM ANNOUNCES INITIATIVES TO ENHANCE INDIA-US TIES

against inflation, while

most of the world frets

about slowing US

growth and a European

debt crisis. The RBI's

modest approach would

be understandable if

they were keeping the

rupee stable in trade-

weighted terms, but that

is not the case. The ru-pee has been increas-

ingly undervalued in

nominal trade-weighted

terms.

RBI WARY OF LOSING DOLLARS, PREFERS MODEST FX INTERVENTION

The Reserve Bank of India has

not intervened in a big way in

the currency markets, unlike

most of its emerging Asian

peers, because it can ill-afford

to expend a limited and fragile

holding of foreign exchange

reserves. That reluctance tointervene is just one of the fac-

tors that set the RBI apart. It is

also currently the most hawkish

in the region, waging an

expensive and tough war

Page 4

India, China and

Brazil will

experience rapid

growth in the coming

decades, which would

provide "consistent

strength" to the

American economy.

Derik times economy WATCH

INDIA, BRAZIL, CHINA TO GROW RAPIDLY IN COMING DECADES: US


5/20

5

The Finance Minister,

Mr. Pranab Mukherjee

has urged the G-20 to

strongly address theissue of excessive fi-

nancialisation of the

commodity markets,

stating that this could

hurt the real economy

through high and vola-

tile input prices. Making

an intervention at the

G20 Development and

Finance Ministers

meeting at Washington

on September 23, Mr.Mukherjee highlighted

that it does seem odd

that commodity prices

should be rising at a

time when there is un-

certainty regarding the

global recovery andgrowth. He noted that

there were sharp differ-

ences of opinion on

what was driving the

spike and volatility in

commodity prices. The

G20 must also address

the increasing food in-

security, Mr. Mukherjee

said, adding that sus-

tainable productivity,

better market, informa-tion that improves trans-

mission of market sig-

nals, more open trade,

and sustained invest-

ment are vital to boost

agricultural growth. Mr.

Mukherjee suggestedthat financing infrastruc-

ture development in de-

veloping economies

could be a good way to

add demand to the

global economy and

ensure sustainable

global growth. Many

developing countries

have developed the ca-

pacity to grow rapidly

but are constrained bypoor infrastructure.

cludes submission of

reports of steering com-

mittees and working

groups and eliciting

views of different minis-tries and departments.

After the finalisation of

the document, it will be

placed before the full

Planning Commission,

the Union Cabinet and

the National Develop-

ment Council (NDC),

the highest policy mak-

ing body of the country.

This exercise is likely totake time. The docu-

ments for 10th and 11th

Plans too were finalised

much after the begin-

ning of the respective

Plan periods. The 11th

Plan which began in

April 2007 was ap-

proved by the NDC in

The 12th Plan docu-

ment that seeks to raise

the economic growth

rate to 9% during the

five-year period will notbe ready by April 1,

2012, the day the next

Plan begins. As per the

schedule, the Planning

Commission will begin

writing the 12th Plan

document that runs into

several volumes after

March 2012. Tradition-

ally, the Plan panel has

been unveiling the pol-icy documents after the

lapse by several months

and this time it would be

no exception. The Com-

mission is scheduled to

complete spade work

relating to formulation of

the Plan document by

March 2012. This in-

December 2007. Simi-

larly, the 10th Plan

which begun in April

2002, was cleared for

implementation by theNDC in December

2002. As far as pro-

gress of the 12th Plan

documentation is con-

cerned, the NDC had

approved the 'Approach

Paper', which provides a

broad framework of the

government policy to be

pursued in the five-year

period to achieve thedesired growth rate, on

August 20 last. The Ap-

proach Paper would be

the basis for running the

various government pro-

grammes and schemes

till the new Plan is un-

veiled and implemented.

RISING COMMODITY PRICES HURTING ECONOMY

12TH PLAN DOC WILL NOT BE READY BY APR 1, 2012

Page 5

As per the schedule,

the Planning

Commission will begin

writing the 12th Plan

document that runs

into several volumes

after March 2012.



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6

India's foreign exchange(forex) reserves rose by$266 million to $316.76

billion for the weekended Sep 16, after de-clining by $4.29 billion inthe previous week. For-eign currency assets,the biggest componentof the forex reserveskitty, rose by $202 mil-lion to $280.90 billionduring the week underreview. The foreign cur-rency assets expressedin US dollar terms in-

clude the effect of ap-

preciation or deprecia-tion of non-US curren-cies such as the pound

sterling, euro and yenheld in reserve. The as-sets had declined by$4.17 billion in the previ-ous week. The value ofspecial drawing rights(SDRs) rose by $2 mil-lion to $4.55 billion andreserves with the Inter-national Monetary Fund(IMF) increased by $62million to $2.99 billion.However, gold reserves

remained unchanged at

$28.32 billion. Gold re-serves had jumped by$2.97 billion during the

week ended Sep 2 dueto revaluation in prices.Rise in gold prices hadpushed India's foreignreserves kitty to an all-time high of $320.78billion for the weekended Sep 2. However,the forex reserve kittydeclined by $4.29 billionin the following week.

China will invest two trillion yuan ($313 billion) till 2015 to promote low-

carbon economy. The investment will help reduce energy consumption perunit of gross domestic product in China by 16 percent at the end of 2015compared with the level of 2010. During the five years to 2010, energy con-sumption per unit of GDP dropped by 19.1 percent. China will launch low-carbon pilot programmes in five provinces and eight cities during the nextfive years

INDIA'S FOREX RESERVES RISE BY $266 MILLION

CHINA TO INVEST OVER $313 BN IN GREEN ECONOMY

maintain international

policy coordination and

coordination through the

G-20. They also ex-

pressed their concern

over the slow pace of

quota and governance

reforms, including in the

area of surveillance in

the IMF, and for theneed for multilateral de-

velopment banks to mo-

bilize more resources for

low income and

developing countries.

OPEN TO SUPPORTING GLOBAL ECONOMIC STABILITY THROUGH IMF: BRICS

The Finance Ministers

of BRICS countries Bra-

zil, Russia, India, China

and South Africa said

they are open to the

idea of providing sup-

port through the Interna-

tional Monetary Fund(IMF) or other financial

institutions to address

global economic chal-

lenges. We underscored

the continuing need to

Page 6

BRICS

countries are

open to the

idea of

providingsupport through

the IMF.



7/20

7

The Insurance Regula-

tory and Development

Authority are planningseveral regulatory

changes as well as

regulatory actions to

strengthen the growing

insurance sector. The

changes in the curricu-

lum of agents' training

would help enhance

their productivity and

effectiveness. There

was a need to widen the

number of agencybranches to increase

the reach of effective

products. There was

also a need to make the

broking industry more

vibrant considering that

the current licensing

system for broking was

pretty expensive. The

issues related to fraud

management are: the

industry was not doing

an effective database

management and that it

needed to be more

number based in its ap-

proach. Thus, a data-

base driven fraud man-

agement system wouldbe an effective solution

in this regard. The do-

mestic insurance market

was expanding rapidly

and provided a unique

opportunity for innova-

tions in terms of prod-ucts and business mod-

els. The increased num-

ber of insurers had

given an impetus to put

in place the revised

regulatory framework.

Boosted by other favor-

able factors such as

better terms, availability

of wide variety of prod-

ucts and tax benefits,

the insurance sectorcould emerge as one of

the fastest growing in-

surance markets in the

coming decade.

the same period lastyear, the increase in

credit was to the tune of

Rs 6,90,889 crore, or 20

per cent. As on Septem-

ber 10, 2010, bank

credit was Rs 33,

83,406 crore. The de-

Bank credit increased toRs 40,74,295 crore dur-

ing the fortnight ended

September 9, a rise of

Rs 29,433 crore from

Rs 40,44,861 in the pre-

vious fortnight ended

August 26, 2011.Over

mand for credit is mov-ing slowly and the credit

off-take is more do to

with corporate utilizing

loans that were sanc-

tioned earlier.

REGULATORY CHANGES ON ANVIL IN INSURANCE SECTOR

BANK CREDIT UP 20% FROM LAST YEAR

between all depart-

ments and bodies re-

lated to the automobile

industry and frame

guidelines on various

issues.

The NAB would mainly

be the coordinating au-

thority for the upcoming

seven automotive cen-

ters of National Automo-

tive Testing and R&D

Infrastructure Project

(NATRiP). It would also

look into other policy-

related issues such as

electric and hybrid mo-

bility and replacement of

vehicles.

BOARD FOR AUTOMOTIVE INDUSTRY SOON

The Ministry of Heavy

Industries is planning to

set up a National Auto-

motive Board (NAB) as

a nodal agency for all

policy and certification

related issues of the

automobile industry.

The NAB will work as a

coordinating authority

Page 7

The NAB would mainly

be the coordinating

authority for the

upcoming seven

automotive centers of

National Automotive

Testing and R&D

Infrastructure

Project (NATRiP).

Derik times industry WATCH


8/20

8

Zero duty entry for Bangla-

deshi garments to India

could indirectly end up of-

fering Chinese fabrics duty-free access into the coun-

try. This is because Bang-

ladesh is almost entirely

dependent on Chinese fab-

rics for the manufacture of

its exportable garment

items. The Bangladeshi

garments sector, despite

lacking a raw material

base, has emerged more

cost competitive than

the Indian clothing in-

dustry and now has an

edge even over the Chi-nese garment industry.

Bangladesh has sur-

mounted the problem by

riding on cheap Chinese

fabric imports and phe-

nomenally low labor

costs back home. In the

case of the Bangladesh-

India pact, the Rules of

Origin of exportable gar-

ment products are to be

determined by the

Agreement on South

Asia Free Trade Areanorms, which permits

garment items made of

imported fabrics to qual-

ify for duty-free market

access to India subject

to the condition that at

least 30 per cent value

addition should take

place in Bangladesh.

achievement of targets.

Of the 670-plus projects

awarded for develop-

ment under the PPP

mode, with aggregatevalue of about

Rs3,80,000 crore, 40

percent of these invest-

ments are accounted for

by the four Southern

states. Andhra Pradesh

managing to bag the

largest share (44 per

cent) followed by Karna-

Private sector's role in in-

frastructure is poised for

significant growth in the XII

Five-year plan, possibly

accounting for about 35 to40 per cent of projected

investment of $1 trillion.

The XII Plan seeks to

achieve a growth target of

about 9 per cent where

private sector investments

and public-private partner-

ship (PPP) investments are

set to play a larger role in

taka (29), Kerala (15)

and Tamil Nadu (12 per

cent). The South ac-

counts for 36 per cent of

projects awarded underPPP whose value is es-

timated to be about 40

per cent. He said that

there was a need for

independent regulator

and a mechanism to

resolve disputes.

PACT WITH BANGLADESH MAY OPEN INDIA'S DOORS TO CHINESE FABRICS

PRIVATE SECTOR INVESTMENTS SEEN RISING

ing pacts of companies,

which are not having 3G

services on pan-India ba-

sis. The pacts help them

reduce cost. These com-

panies had entered into a

bilateral roaming agree-

ment, both inter and intra

circle, to provide 3G ser-vices to customers in the

circles where they cannot

build their own 3G net-

work as they do not have

the license, in order to

bring a pan-India experi-

ence of 3G services to

their users. Airtel, Aircel

and Reliance Communi-

cations each owns 3G

spectrum license in 13 of

the 22 telecom circles,while Vodafone has it in

10 circles and Idea and

the Tatas in nine circles.

TRAI TO LOOK INTO 3G ROAMING PACTS OF LEADING TELCOS

Telecom regulator TRAI has

sought information from

leading service providers on

their bilateral agreements for

entering into 3G roaming

pacts, to ensure that there is

no violation of license terms

and conditions. TRAI is in-

vestigating into 3G roaming

agreements of telecom op-

erators. Earlier, Department

of Telecom (DoT) had also

raised doubts over 3G roam-

Page 8

The XII Plan

seeks to achieve

a growth target

of about 9 per

cent



9/20

9

Poor connectivity in Ba-

rak Valley region of As-

sam, coupled with er-

ratic power supply, hasbecome an area of

serious concern for the

tea industry, as the in-

dustry attributes it as a

major reason for loss of

competitiveness. The

tea industry argued that

due to abysmal condi-

tion of roads, extremely

slow progress of the

railway gauge conver-

sion project between

Lumding and Silchar, in

addition to non-

availability of qualitypower, was increasing

the cost of production of

tea gardens in Barak

Valley, which is the sec-

ond tea producing re-

gion in Assam after

Brahmaputra Valley.

Consequently, depend-

ence on self-generation

of power by using gen-

erators was on the rise

in Assam, resulting in

huge consumption of

diesel, which in turn was

increasing the cost ofproduction of tea. In the

tea producing regions of

Assam West Bengal,

absenteeism had even

touched 40 per cent dur-

ing the peak plucking

season in the recent

days. TAI has requested

the Centre not to offer

NREGS works during the

plucking season in the

tea growing regions.

over $1, 15,000 billion,

while that of the US it will

be around $1,00,000 bil-lion. China will overtake

the US as the world's

largest banking industry

by 2015, when it is ex-

pected that the asset size

of Chinese banks will be

nearly $30,000 billion,

The Indian banking sector

will be the third largest

with an asset size of$28,500 billion by 2025,

according to the Indian

Banks Association by

FICCI and global consult-

ing group BCG. By 2025

the Chinese banks will

have an asset size of

while that of the US will

be around $28,000 billion.

Domestic banks deploy62 per cent of staff in cus-

tomer-facing roles as

against the benchmark of

82 per cent observed by

BCG globally.

POOR CONNECTIVITY, ERRATIC POWER SUPPLY HIT ASSAM TEA INDUSTRY

INDIAN BANKING SECTOR TO BE 3RD LARGEST BY 2025: BCG

tries was $10.6 billion in

2010-11. There is, how-

ever, ample scope of

diversifying the existing

trade basket by bringing

in many more manufac-

tured goods. Mr. Scindia

met South African Dep-

uty Minister for Trade

and Industry Elizabeth

Thabethe and dis-

cussed ways to in-

crease trade coopera-

tion between the two

countries. The two

stressed upon the need

for enhancing ties in the

small and medium com-

panies to tap the full

potential of bilateral

trade. Mr. Scindia said

there was scope for uni-

versities and research

and scientific institutions

to enter into R&D col-

laborations of both

countries.

INDIA, SOUTH AFRICA TO STRENGTHEN TIES IN MSME SECTOR

India and South Africa

have agreed to

strengthen cooperation

in the medium, small

and medium enterprises

(MSME) sector through

joint ventures, technol-

ogy collaborations and

marketing tie-ups. At

present, South Africa is

India's second largest

trading partner. Trade

between the two coun-

Page 9

The Indian

banking sector

will be the

third largest

with an asset

size of $28,500

billion by

2025



10/20

10

Page 10

1. Hewlett-Packard has replaced its embattled Chief Executive with former eBay Chief Execu-

tive Meg Whitman, saying that the company's strategy to transform its business was sound.

2. M&M is planning to launch its global SUV christened XUV 5oo (pronounced 5 double oh) on

September 28. This is the first product designed and developed from its world class R&D

facility at Mahindra Research Valley near Chennai.

3. UBS chief executive Oswald Gruebel has resigned over a $2.3 billion rogue trading loss.

The move ends days of speculation about whether Mr. Gruebel could retain his position fol-

lowing the latest scandal to hit Switzerlands biggest bank.

4. Marking its first ever PSU acquisition, state-run NMDC on Thursday announced the 50 per

cent stake purchase in Australia-based Legacy Iron Ore as cornerstone investor for nearly

19 million Australian dollar.

5. Bharat Sanchar Nigam Ltd. (BSNL) has reported a loss of around Rs.6,000 crore in 2010-

11, which is up three times compared to Rs.1,822 crore reported in 2009-10, while its totalrevenues also declined to Rs.28,876 crore, a dip of around 10 per cent from Rs.32,072

crore.

6. Japanese auto major Nissan on Tuesday launched its mid-size sedan Sunny and said it

aimed to sell 12,000 units of the new car by the end of this fiscal.

Base model at Rs.5.78 lakh-The 1.5-litre petrol engine car is priced at Rs.5.78 lakh for the

base model and Rs.7.68 lakh for the top-end model (ex-showrooms in New Delhi).

7. Spelling out its endeavour to focus on improvement in cost competitiveness and quality,

Bharat Heavy Electricals Ltd. on Tuesday said it was on track to become a 20,000-MW

company in power equipment making by March, 2012.

8. The plea of UK-based telecom operator Vodafone to buy 5.48 per cent stake in the joint

venture Vodafone-Essar from two Mauritius based entities has been approved, the

government said on Monday.

9. NTPC has announced a major investment initiative for setting up four thermal power pro-

jects in coal-rich Madhya Pradesh and Chhattisgarh at a cost of Rs.41,000 crore during the

XII Plan (2012-17).

10. The ban on illegal mining in Karnataka is adversely impacting the sales of trucks and tip-

pers. Manufacturers such as Ashok Leyland, Indias second-biggest truck maker and VE

Commercial Vehicles are expecting a hit on retail off take of trucks if the Supreme Court ban

on mining is not lifted.

11. A six-tonnes, 20 years old NASA science satellite fell back to Earth, the U.S. space agency

said on Saturday, but it was not yet known where the remains landed.

Derik times Facts of the week


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Page 11Derik timesINTERVIEW

N P Singh, Multi Screen MediaMulti Screen Media (MSM) or Sony is having a

great year. It recently gained number two posi-tion on the Hindi general entertainment channel

(GEC) charts, after Star. This is, largely, on the

back of three new shows Bade Ache Lagte

Hain, Saas Bina Sasural and Kaun Banega

Crorepati. The Rs 1,000-crore Sony, however,

has always been the odd one in the Rs 30,000-

crore television industry.

What has changed in what MSM was doing?

There is a consistency in strategy that we did not have earlier. We kept

changing our strategy and programming and, therefore, had intermittent

success. We are very clear about whom we are addressing the

women in the age group 18-35. We don't want to lose focus and have

followed this to a T in the last one year. We have even give her (our

viewer) a name, Kusum. All our content is talking to her and we have

picked up shows that we hope will resonate with her. We are also look-

ing at more family-oriented programming like Kaun Banega Crorepati.

We have used (the success of KBC on Sony) to funnel viewership to our

women's shows. Also, now we have a very strong portfolio. We are the

only company with two of the five Hindi GECs (SET and Sab TV). We

have very strong Hindi movies channels with Max. (MSM also has rights

to several lucrative cricket tournaments). And now, we have started with

a very strong focus on fiction. That is what is giving us consistent ratings

and growth. Non-fiction gives a lot of spikes and then the viewers go

away.


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You tried this whole tack earlier with programming from Yash RajFilms (YRF). Why didn't that work?What we brought to TV with the YRF shows was an international look

and feel. They were nice shows, but lacked mass content. They weremore focused on the male. That strategy doesn't work on television.

Sony's success has always been a flash in the pan. Is there reasonto believe this might be different?We have always had very good shows, which did well Jassi, Heena,Kusum, CID. But somehow, we never made it to number one. So, we arenow following a consistent and sane strategy because we want to be aprofitable business. We are not running the business on ego.

Do you miss not owning distribution assets?Being platform-agnostic has helped us. We are favourites with cable and DTH op-erators because they know we don't have a competing company. We have One Al-liance, (a joint venture with Discovery), but nobody is threatened by it (because itonly distributes channels and doesn't own any pipeline).

There is some talk among broadcasters about doing programming in-house, la the US. This will help tackle rising programming costs. Your view?

There is merit in doing programming in-house. For instance, we do a large scaleshow, Xtra Innings for Max, which is in-house. It saves on costs and gets us bettermargins. So, for non-fiction and in some areas, doing in-house programmingmakes sense. But for fiction, the way the market is structured right now, (lots offragmentation and choice of ideas), it makes more sense to outsource. It hasworked beautifully for us. Also, non-fiction programming is done in a very controlledenvironment.

http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/

(This circulation is just for the education purpose)

Derik times INTERVIEW
http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/http://www.business-standard.com/india/news/qa-n-p-singh-multi-screen-media/450293/


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NET UNREALIZED APPRECIATIONThe change (positive or negative) in value that shares held in a tax-deferred account will ex-perience once they is sold. Net unrealized appreciation does not undergo income tax when it isdistributed, so this should be carefully considered by investors who are distributing stock from

their retirement plan to another account, which might be subject to income tax.

UNDERWATERA call option whose strike price is higher than the market price of the underlying security, or aput option whose strike price is lower than the market price of the underlying security. Thus,there is no incentive to exercise the option today.

ADJUSTED BASIS VALUEOriginal cost or base price of a fixed asset from which depreciation is deducted, and to whichcapital expenditure is added.

HARD SELLINGApplying psychological pressure (by appealing to someone's fears, greed, or vanity) to per-suade the prospect to make a quick purchase decision. This approach is justified onthe ground that most people are lazy and will postpone making a decision even if it were intheir best interest to make the commitment.

MANAGEMENT PREROGATIVEEmployer's or management's unqualified-authority to exercise its discretion in certain areaswithout discussions with or the agreement of a union. Also called management rights, they arenot subject to negotiations and may be expressly stated as such in a collective bargainingagreement.

DATA-MININGThe process of using technology to identify patterns and prospects from large amounts of infor-mation.

ADVERTISING ELASTICITYThe relationship between a change in advertising budget and the resulting change in productsales.

GALVANOMETER TESTA research method that measures physiological changes in consumers when asked a question

or shown some stimulus material such as an ad.

Derik times zargonomy


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Lawrence "Larry" Page (born March 26, 1973) is an Ameri-can computer scientist and internet entrepreneurwho, with SergeyBrin, is best known as the co-founder ofGoogle. As of April 4,2011, he is also the Chief Executive Officerof Google, as an-

nounced on January 20, 2011. As of 2011, his personal wealth isestimated to be $16.7 billion.

Early life and EducationPage was born in East Lansing, Michigan. His father, Carl Page,earned a Ph.D. in computer science in 1965 when the field was inits infancy, and is considered a "pioneer in computer science and

artificial intelligence." Both he and Page's mother were computer science professorsat Michigan State University. Page is Jewish on his mother's side, and was raised without re-ligion.Page attended the Okemos Montessori School (now called Montessori Radmoor)

in Okemos, Michigan from 1975 to 1979, and graduated from East Lansing High School in1991. He holds a Bachelor of Science degree in computer engineering from the University ofMichigan with honours and a Masters degree in computer science from Stanford University.While at the University of Michigan, "Page created an inkjet printermadeofLego bricks" (actually a line plotter), served as the president of the Eta Kappa Nu in Fall1994,and was a member of the 1993 "Maize & Blue" University of Michigan Solar team.After enrolling for a Ph.D. program in computer science at Stanford University, Larry Pagewas in search of a dissertation theme and considered exploring the mathematical proper-ties of the World Wide Web, understanding its link structure as a huge graph. His supervi-sorTerry Winograd encouraged him to pursue this idea, which Page later recalled as "thebest advice I ever got". Page then focused on the problem of finding out which web pages

link to a given page, considering the number and nature of such backlinks to be valu-able information about that page (with the role ofcitations in academic publishing in mind).[15] In his research project, nicknamed "BackRub", he was soon joined by Sergey Brin, a fel-low Stanford Ph.D. student.John Battelle, co-founder ofWiredmagazine, wrote of Page that he had reasoned that the"entire Web was loosely based on the premise of citation after all, what is a link but a ci-tation? If he could devise a method to count and qualify each backlink on the Web, asPage puts it 'the Web would become a more valuable place'. Battelle further described howPage and Brin began working together on the project:"At the time Page conceived of BackRub, the Web comprised an estimated 10 milliondocuments, with an untold number of links between them. The computing resources re-

quired to crawl such a beast were well beyond the usual bounds of a student project. Un-aware of exactly what he was getting into, Page began building out his crawler."The idea's complexity and scale lured Brin to the job. A polymath who had jumped fromproject to project without settling on a thesis topic, he found the premise behind BackRubfascinating. "I talked to lots of research groups" around the school, Brin recalls, "and thiswas the most exciting project, both because it tackled the Web, which represents humanknowledge, and because I liked Larry."Brin and Page originally met in March 1995, during a spring orientation of new computerPh.D. candidates. Brin, who had already been in the program for two years, was assigned

Derik times Entrepreneur


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15

to show some students, including Page, around campus, and they later became goodfriends.BusinessIn 1998, Brin and Page founded Google, Inc. Page ran Google as co-president along withBrin until 2001 when they hired Eric Schmidt as Chairman and CEO of Google. In January2011 Google announced that Page would replace Schmidt as CEO in April the sameyear. Both Page and Brin earn an annual compensation ofone dollar. On April 4, 2011,Page officially became the chief executive officer of Google, while Schmidt stepped downto become executive chairman.Other interestsPage is an active investor in alternative energy companies, such as Tesla Motors, whichdeveloped the Tesla Roadster, a 244-mile (393 km) range battery electric vehicle. He contin-ues to be committed to renewable energy technology, and with the help ofGoogle.org,Google's philanthropic arm, promotes the adoption of plug-in hybrid electric cars and otheralternative energy investments. Brin and Page are the executive producers of the 2007film Broken Arrows.Awards and recognitionsPC Magazine has praised Google as among the Top 100 Web Sites and Search Engines(1998) and awarded Google the Technical Excellence Award, for Innovation in Web Appli-cation Development in 1999. In 2000, Google earned a Webby Award, a People's VoiceAward for technical achievement, and in 2001, was awarded Outstanding Search Service,Best Image Search Engine, Best Design, Most Webmaster Friendly Search Engine, andBest Search Feature at the Search Engine Watch Awards."In 2002, Page, along with Sergey Brin, was named to the MITTechnology ReviewTR100,as one of the top 100 innovators in the world under the age of 35. In 2003, both Brin andPage received an honoraryMBA from IE Business School "for embodying the entrepre-neurial spirit and lending momentum to the creation of new businesses...." And in 2004,they received the Marconi Foundation Prize, the "Highest Award in Engineering," and wereelected Fellows of the Marconi Foundation at Columbia University. "In announcing their se-lection, John Jay Iselin, the Foundation's president, congratulated the two men for theirinvention that has fundamentally changed the way information is retrieved today." They

joined a "select cadre of 32 of the world's most influential communications technology pio-neers...." He was elected to the National Academy of Engineering in 2004. In 2005, Brinand Page were elected Fellows of the American Academy of Arts and Sciences. In 2002the World Economic Forumnamed Page a Global Leader for Tomorrow and in 2004 the XPRIZE chose Page as a trustee for their board.In 2004, Page and Brin were named "Persons of the Week" by ABC World News Tonight.

Page received an honorary doctorate from the University of Michigan in 2009 during

graduation commencement ceremonies. In 2011, he was ranked 24th on the Forbeslist of

the worldsbillionaires and as the 11th richest person in the United States

Derik times Entrepreneur


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Wellness matters

This article talks about the changing perception of Indians towards their health care and

how the pharmaceutical industries are taking edge over it.According to a survey reports, the increase in total consumer spending on healthcare of In-dia from 2002-2005 to 14% & to household spending on healthcare is expected to growfrom 7% to 13% by 2025. The same report estimated that the total investment of pharmaindustry of India between2005-2015 to $20 billion this would lead to India among top 10

pharmaceuticals in the world.The people are becoming more health conscious that means now to people wellness mattersa lot. the Consumer behavior is changing.Brown bread is replacing white bread, sugar free chocolates & biscuits are more preferred.Health supplements include honey; juices are experiences double digit growth. Breakfasts

are also change. Now people like to have light breakfast including cornflakes, oats, juicesinstead of prathas etc.

Ayurvedic spas are becoming very famous in Metro & mini- Metro cities. Yoga has at-tracted more than 70% of Indians including people of all standards.

Really, wellness is new mantra & new growth to pharmaceutical industries

Like disease management, wellness has many dimensionsIllness or wellness- is this always true that if a person is not ill, he is well. Example im-

munity providing products (chyawanprash) are a wellness offerings or it just givesthe feeling of being good.

Mind or Bodyis wellness is related to physical health or mental health? Ex- a personsuffering from diabetes, who is otherwise leading an active life, could be said to be in astate of wellness, in spite of having disease.Medicine or Food- is wellness about substituting medicine with food & food supple-ments? Dietary food helps to attain wellness by providing proper nourishment.

Products & servicesdoes the efficiency of wellness depends upon the size of the in-dustry? If so, what about luxuries spas transforms you in an hour to state of well-beingwhich costs 3 times than bottle of multi- vitamin tablets

so, it is not important to define wellness & its distinction from health, what important is

that there are few mega trends that are reshaping the wellness industry for explosive growthto help India arrive faster on the flat world. Hence being well matters than how to be-come well.

- (About author - Hrishita Monga, Student of Btech-MBA, Lovely Professional University)

Derik timescolumnist


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A) VISAKHAPATNAM DISTRICT COOPERATIVE CENTRAL BANKCLERKS AND ASSISTANT MANAGERS RECRUITMENT 2011

Important Dates:Online Registration: Till Oct 3, 2011Written Test: - Oct 30, 2011For further details, follow the link:http://www.linkingsky.com/government-exams/bank/visakhapatnam-cooperative-bank-recruitment-2011.html

B) SOUTH INDIAN BANK CLERKS RECRUITMENT 2011Important Dates:

Online Registration: Till 30/09/2011For further details:http://www.linkingsky.com/government-exams/bank/south-indian-bank-clerk-recruitment-2011.html

C)CENTRE FOR MANAGEMENT STUDIESPosition: Asst ProfessorEligibility: MBA or PGDMLocation: Assam

Last Date: 07-OcFor further details:http://www.sarkariexam.com/jobs/details/2011-10-07/Centre-for-Management-Studies/AsstProfessor

D)RAIL LAND DEVELOPMENT AUTHORITYPosition: GM/Accounts, Accounts OfficerEligibility: GraduateLocation: New Delhi

Last Date: 03-Oc

For further details:http://www.sarkariexam.com/jobs/details/2011-10-03/Rail-Land-Development-Authority/GMAccountsAccountsOfficer

Derik times Jobs watch
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ACROSS2. In the mesmerically popular TV Game show

Kaun Banega Crorepati, the prize money is issued on

the cheques of which bank?

5. What is the term used to describe the day which

is divided into several time periods in Broadcast Me-

dia?

7. Which media group has launched India's first e-

newspaper?

8. What is the old name of Lenovo?

9. What we know as Maruti Zen was launched

worldwide by Suzuki in the 90's under what name?

10. Which management term is derived from the

Greek word which means "Art of the General"?

11. Which famous fashion accessories house first

started as leather goods shop in Florence in 1921?

13. Which company coined the term "Born Global"

firms in the year 1993?

14. Which Indian confectioneries brand and TimesWarner are involved in a legal wrangle over the

'Bunny' logo?

15. What watchmaker sells an environment-

friendly brand of watches called "Eco Drive"?

16. Which is the only country having paper cur-

rency and have no coins and it introduced cheque

only in 1997?

DOWN1. This beer company claims that it is "The King

of Beers

2. Lending her name to a famous brand, who

was the Greek Goddess of Victory?

3. South Africa is the world's largest producer of

3 metals. Platinum and Gold are 2 of them,

whats the third?

4. "India's Family store" is the punchline of

which brand

5. This term is derived from the Greek word

'Oikanomia' means "House Management".

What is it?

Derik times crosswords

You can mail your answers till Friday, we

will publish the names of the personswith all right answers in next edition ofDerik Times

Mail us your answers at:[email protected]


19/20

19


20/20

A new vacuum cleaner salesman knocked on the door on the first house of the street.A tall lady open the door.

Before she could speak, the enthusiastic salesman barged into the living room and opened a big black plastic bagand poured all the cow droppings onto the carpet.

"Madam, if I could not clean this up with the use of this new power-ful Vacuum cleaner in the next 10 mins, I will EAT all this dung!" -Exclaimed the eager salesman.

"Do you need chilly sauce or ketchup with that" asked the lady.

The bewildered salesman asked, "Why, madam?? "

"There's no electricity in the house..." said the lady.

Moral of the story:Gather all requirements and resources before working on any project and committing to the client...!!!

Gather all requirements before committing to the client

Contact -

Gaurav Saini - 7696527090

Ashish Tiwary - 9988179147

E-mail: [email protected]

[email protected]

[email protected]

SYNAPZ club is a management club

effectively bridging the gap between

classroom learning and contemporary

ways of doing business. We believe

that providing an informal, collabora-tive and well-guided forum will be

conducive to learning.

Some of our activities are

Open house discussion

(Every Wednesday 4-5 pm)

Derik Times

Online quiz

(Every Friday )

Mega Business Quiz

(Once in semester)

Various other competi-

tion and seminars

synapz club

exploring the unexplored

Join us on facebook-

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WIT-NESS
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