India to overtake China in 2014: Ernst & Young report

New Delhi: India will overtake China in 2014, according to a forecast by the Ernst & Young's report on Rapid Growth Markets (RGMs). In 2014, India is expected to grow at 9 per cent while China is expected to grow at 8.6 per cent. India and China would probably be less impacted among the 25 Rapid Growth Markets (RGMs) in case of a deterioration of the Eurozone debt crisis. The overall outlook for India remains positive and economic growth will steadily accelerate during 2012. "India's consumption-led economy continues to make the country a highly attractive investment destination in the short to medium term. Its domestic demand-driven growth model has helped the country weather the volatility in the global markets, providing significant growth opportunities to businesses," according to Farokh Balsara, Partner & India Markets Leader, Ernst & Young India.

India to attract $80 billion FDI over 12-24 months, says a Morgan Stanley survey

New Delhi: Over the next 12-24 months India could attract a massive $80 billion in foreign direct investment (FDI), according to a research report by Morgan Stanley. India received $48-billion FDI in the last two years. "The findings show that global companies see real opportunity in India and that their investment appetite is increasing, notwithstanding continuing negative perceptions around infrastructure bottlenecks," said Ridham Desai, head of India Research at Morgan Stanley. The startling number came out of a survey of 176 of the firm's internationally-based research analyst teams that cover 1,766 global companies. These teams determined the likely India investment opportunity recognised by the companies they covered. The survey did not involve direct interaction with the companies. "Conducting a survey among large companies worldwide was not feasible due to very high costs and time taken," the detailed note says explaining the survey. The 20% of the companies covered in the survey have already invested nearly $80 billion into India, almost 53% of the total FDI into the country. "As per our global analysts, 59 new companies are likely to invest in India while 67 of the currently invested global companies are unlikely to make further investments," the report says. However, according to the survey, despite the intentions to pump in such large amounts India is still not a high priority destination

Oracle to buy RightNow for about $1.5 bln

Oracle Corp plans to buy online customer service company RightNow Technologies Inc for about $1.5 billion, sparking speculation of bids for other so-called cloud technology companies that deliver software, data and computing power over the Internet. Oracle's bid amounted to a 20 percent premium over RightNow's closing price on Friday. RightNow's shares rose 19 percent in early trading. Oracle is pushing into the cloud technology market, including sales force automation, human resources and databases. Oracle said on Monday it would pay $43 for each share of RightNow. The company's shares, which closed at $35.96 on Friday, rose to $42.81 on Nasdaq. "RightNow got a very good price from Oracle. I don't see other bidders. Not at this valuation," said Pacific Crest analyst Brendan Barnicle RightNow may have to pay Oracle a termination fee of around $60 million if it accepts a higher bid from another party. The termination fee could be around $18 million if the deal is terminated under certain other cases. Oracle expects the deal to close in late 2011 or early next year. Analysts said Oracle has buying assets to fill in holes in its cloud offerings in the last year with acquisitions have included ATG, Inquira and FatWire. RightNow's technology helps manage customer call centers and extend the support to Web and social networks. "This acquisition shows Oracle is serious about being in the cloud space," said Susquehanna analyst Derrick Wood. "We however do not think it can do it organically and that if it wants to be a formidable competitor it will need to enter the market through acquisitions," Wood said. But the interest in smaller cloud computing companies will not be limited to Oracle said analysts, other major technology companies that could be interested include Dell Inc, Hewlett Packard and Microsoft Corp. Started in a spare bedroom by its founder Greg Ginaforte in 1997, RightNow clocked sales of over $185 million in 2010 and competes with bigger rival SalesForce.com and online marketing software maker Constant Contact Inc. For years, Oracle have been rumored to be targeting SalesForce.com to beef up its cloud offering but it seems unlikely that it would be one of Oracle's priority targets. Another possible target for Oracle could be NetSuite Inc which is already partly owned by Oracle CEO Larry Ellison. Pacific Crest's Barnicle said the RightNow deal is good for the entire sector as it signals a potential wave of acquisitions. Shares of Egain Communications Corp, one of RightNow's peers, jumped 11 percent to $7.88, following the news of RightNow's acquisition. In July, RightNow raised its full-year recurring revenue growth outlook to 27 percent from a a previous 24 percent. Separately, RightNow reported third-quarter profit ahead of Wall Street estimates and canceled its conference call scheduled for later in the day. The company also canceled its Oct. 25 analyst day conference.

Indian IT biggies TCS, Infosys, Wipro can withstand demand uncertainty: S&P

Credit rating agency Standard and Poor's (S&P) today said top three Indian IT companies -- Tata Consultancy Services, Infosys and Wipro -- are likely to maintain their investment grade ratings even if demand weakens. "The largest Indian IT companies have strong margins, are cost-competitive, and have proven delivery models. These attributes will help them to weather uncertain and volatile demand," S&P's Credit Analyst Abhishek Dangra said about the three firms. S&P has given TCS and Infosys BBB+ and Stable rating, while Wipro holds BBB and positive credit rating. S&P report said that the three leading IT companies will be able to grow at a faster pace than the global industry, at least over the next few years. It expects these companies to maintain industry-leading EBITDA (indication of cash flow) margins and grow in double digits in the next 12 months. "Bigger challenges for the Indian IT companies will occur in the long-term. We expect the cost advantages of these companies to diminish as foreign competitors increase their already-large employee bases in India," a S&P statement said. The agency said business and reputation risk is rising due to increasing protectionism and it expects the three Indian IT companies to adapt to the challenges, as they have in the past. On dependency of IT companies on the slowing economies of the US and Europe, it said sovereign budget cuts across these markets could hurt business sentiment and lower private-sector IT spending. The agency, however, added that deal cancellations would not have as much impact as in 2008-2009, and the time it takes to close deals has lengthened. Dangra said high unemployment rates, slowing growth and political activism in many countries are generating opposition to outsourcing. "Still, we expect focus on cutting costs in a slowing global economy to support demand for outsourcing to India. Such a practice results in significant cost savings," he added.

Mysore Palace is among the world's 31 must-see places

Bangalore: If Madame Tussauds in London attracts the maximum number of tourists from across the world, the majestic Mysore Palace ranks a close second in the list of the most-visited places on the globe. In yet another affirmation of its drawing power, the New York Times recently listed it as one of the 31 must-see places on Earth for two consecutive years. The palace plays host to an average 2.5 million tourists each year. Going by the growing tourist footfalls, Karnataka tourism department officials say it could well be the numero uno soon. Feedback from tourists from the UK, Spain, France and other countries suggests that the palace has mesmerized visitors. Many wonder why Buckingham Palace has been considered magnificent for so long when the Mysore Palace can boast of superior construction. In 2010, Mysore Palace had a domestic visitor footfall of 3.1 million and another 70,000 from abroad. Other places in Mysore played host to 7 million domestic and 12,000 international visitors. The first nine months of 2011 have seen 2.4 million domestic visitors and 60,000 international visitors touring the palace. The city, on the other hand, received a whopping 6.75 million domestic and 25,000 foreign tourists till September. "The Mysore Palace and the city attract a large number of tourists to the state. Hardly does Mysore get left out of a tour itinerary involving either Karnataka or south India," says a senior official of the tourism department. Tours that start in Tamil Nadu and end in Bangalore enter Karnataka from Wayanad through Nagarahole, Mysore or Hassan before reaching Bangalore. for onward departures. A lot of tours enter Karnataka coming through Ooty, Bandipur and Mysore and conclude at Bangalore. "Mysore generates a handsome revenue for the state," senior tourism officials said. It's evident by the fact that three new hotels are coming up in a big way to cash on the growing business. Readying their infrastructure are Radisson Blu Plaza (170 rooms), Sheraton Mysore Hotel (220 rooms) and the Country Inn Suites (130 rooms), all expected to start operations in one year. "The fact that Mysore is also popular as a hub for wellness, yoga and meditation, among other things, contributes in a big way to bring good revenue for the state," says Vinita R of Windflower Spa and Resorts in Mysore.

India-Malaysia bilateral trade seen rising to $15 billion by 2015

Hyderabad: India-Malaysia bilateral trade is expected to touch $15 billion by 2015, said Mr Shah Nizam Ahmed, Consul (Trade), Consulate General of Malaysia. Malaysia wants to develop direct trade with India and other Asian countries. India is Malaysia's largest trading partner among countries of the South, excluding ASEAN nations and China, he told a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here on Wednesday. The two countries have concrete trade relations through comprehensive economic cooperation agreement. For India, Malaysia is the second largest trading partner in the ASEAN region after Singapore, Mr Ahmed said. The bilateral trade figure as per 2010 data is around $9 billion, said Mr V.S. Raju, President of the chamber.

LG's new phone aims to beat Apple, Samsung

LG Electronics Inc's new Optimus phone sports a display sharper than the one onApple Inc's iPhone and its chip puts it on par with Samsung Electronics Co's newest Galaxy. Gwon Soo Seok, 23, still isn't won over. "LG's image is that of a laggard," said Gwon, a student in Seoul who is leaning toward an iPhone or a Galaxy. "LG seems to have good technology, but Apple and Samsung are the cool ones," said Gwon, who stopped using devices made by Seoul-based LG, the world's No. 3 phonemaker, three years ago. The failure to woo consumers like Gwon leaves LG at a disadvantage to Apple and Samsung insmartphones, the fastest- growing segment of the $207 billion mobile-phone industry. LG had 718 billion won ($625 million) in operating losses at the handset division in the year to June, compared with a 5.7 trillion-won profit in the same period at Samsung. "LG was slow to embrace the smartphone market, and they are still having a hard time correcting the mistake," said Lim Han Eui, a telecommunications consultant at ROA Consulting in Seoul. "There has been nothing particularly special about their phones. They need to develop their own color and identity." LG, whose panel unit supplies the "Retina" displays used in the iPhone, introduced its first smartphone globally last year, more than three years after the debut of the Apple device. Apple, based in Cupertino, California, accounted for 18.5 per cent of global smartphone shipments in the second quarter, compared with 13.5 percent a year earlier, research company Strategy Analytics said in July. Nokia Oyj, based in Espoo, Finland, dropped to third place, falling behind Samsung after its market share shrank to 15.2 per cent from 38.1 per cent. 'Behind the Curve' Including basic phones, Nokia remained the world's biggest handset maker with a 24.5 per cent share, followed by Samsung at 20.5 per cent and LG at 6.9 per cent, according to the researcher. "They've been behind the curve and are constantly playing catch-up," Annalisa Di Chiara, a Hong Kong-based senior analyst at Moody's, said of LG. "The question, really, is whether they will ever catch up on the mobile side." LG shares have slumped 36 per cent this year, compared with a 3.4 per cent drop for Samsung, a 22 per cent jump for Apple and a 39 per cent tumble for Nokia. Earlier this month, Moody's cut the outlook for LG's Baa2 issuer and senior unsecured debt rating to "negative" from "stable," citing weakness in the handset market. Standard & Poor's lowered the long-term corporate credit and senior unsecured debt ratings to BBB- from BBB on October 14. Hard sell The company is aiming to stem losses and convince investors a turnaround is possible. Koo Bon Joon, the younger brother of LG Group's chairman, took over last year after his predecessor Nam Yong quit, taking responsibility for failing to come up with a model to counter the iPhone. The maker of Chocolate and Prada handsets is cutting back on less-profitable models, Park Jong Seok, head of the mobile business, said in July. More than 12 new models have been unveiled this year, under the Optimus brand. LG showcased the Optimus LTE in Seoul on October 10, touting its 329 pixels-per-inch screen compared with the iPhone 4S's 326. The chip has a 1.5 gigahertz processor, the same as Samsung's latest Galaxy model. LG has the strength in technology for next-generation mobile devices such as the long-term evolution model, said Ken Hong, a Seoul-based spokesman. The latest phone is capable of running on faster networks using the so-called LTE technology. 'Ripe time' "Time is ripe for us to put that into action," he said. "The Year 2012 is going to be a significantly different scene from now." The company is also betting on 3D technology in mobile phones, a feature Samsung and Apple don't offer. It introduced a 3D phone this year and plans are in place for more, said Jeong Ok Hyun, head of LG's research center. Full-year net loss at the mobile-phone division may narrow to 270 billion won in 2011 compared with the 654 billion won loss a year earlier, according to the average of four analysts' estimates compiled by Bloomberg News. LG is scheduled to report third-quarter earnings this week. "LG's strategy seems to be to make anything they can come up with, with the hope that something will become a hit," said Woo Chang Hee, a Seoul-based analyst at LIG Investment & Securities Co. "They may be taking the right steps, but the pace isn't fast enough."

Ecommerce portal OneBazaar launches online consumer community Jatang

Mumbai-based retail company Cosmic Retail, which operates OneBazaar.com, has launched Jatang as a social networking website that rewards its members for every single activity they do on the portal. The points collected can be redeemed on OneBazaar.com. Users can add other users as friends, exchange messages, write blogs, add videos/photos, browse through classifieds and get automatic notifications on latest updates. Jatang users must register before using the site. Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics.

Facebook accused of creating 'extensive profiles' of non-users

Facebook is now building profiles of non-users who haven't even signed up to the social networking site, it has emerged. The claim has been made in a complaint filed in August by Ireland's Data Protection Commissioner. It alleges that users are encouraged to hand over the personal data of other people including names, phone numbers, email addresses and more, which Facebook uses to create "extensive profiles" of non-users. " Facebook Ireland is gathering excessive amounts of information about data subjects without notice or consent by the data subject," the complaint said. It added that in many cases the information "might be embarrassing or intimidating for the data subject. The information might also constitute sensitive data such as political opinions, religious or philosophical beliefs, sexual orientation and so forth." Facebook, however, categorically denied the allegations, Fox News reports. "The allegations are false. We enable you to send emails to your friends, inviting them to join Facebook. We keep the invitee's email address and name to let you know when they join the service," said Facebook spokesman Andrew Noyes. "This practice is common among almost all services that involve invitations from document sharing to event planning," he said.

Microsoft and Google consider bid for yahoo

As a host of potential bidders circle Yahoo, several of Silicon Valley's biggest companies are considering whether to jump into the fray themselves. Microsoft and Google are both weighing whether to participate in the bidding. Each has its own business reasons for wanting to see the continued existence of Yahoo, which despite its financial struggles still has a monthly audience of almost 700 million unique visitors. But there's one thing the technology giants have in common: Not one of them wants to actually buy or run Yahoo. Instead, Microsoft and Google are considering lending financial support to private equity firms or others weighing a bid, according to people briefed on the matter. Microsoft is the furthest along, having held discussions with a number of leveraged buyout firms, these people said. Under one possible combination, Microsoft would chip in billions of dollars in financing as part of a consortium led by the private equity firm Silver Lake and the Canadian Pension Plan Investment Board, three of these people said. That group would be backstopped by billions of dollars in bank financing as well. Google, for its part, has had conversations with two private equity firms about backing a takeover, according to another person briefed on the matter. Such discussions are in the early stages and may not lead to a bid, this person said. Representatives for Microsoft, Google, Silver Lake and Yahoo declined to comment on any potential bidding. While nearly every major private equity firm has been conducting some preliminary due diligence on Yahoo, potential suitors have been trying to sort out what bids would look like before they sign nondisclosure agreements with Yahoo to officially pore over its books, according to people briefed on the matter. These people spoke on the condition of anonymity because they were not authorized to speak publicly about confidential talks. But what has become apparent is that the private equity firms would be focused on turning around the company, while a deep-pocketed backer like Microsoft or Google would supply capital. A crucial Yahoo adviser, Allen & Company, has told potential bidders that they should focus on how to improve the company's core North American operations and not worry about the divestiture of the company's huge holdings in theAlibaba Group of China and Yahoo Japan. Players like Microsoft and Google are primarily interested in what they could reap from teaming up with Yahoo. Yahoo's news arm reported 81.2 million unique visitors in August, making it the biggest online news site. Microsoft already has in place a wide-ranging agreement with Yahoo: Its Bing search engine fetches answers to user queries, while Yahoo's sales force sells ads against those results. Microsoft may also push to integrate its newest acquisition, the Internet communications company Skype, into Yahoo. With a deal, Google could eventually wrest Yahoo away from Microsoft when their partnership expires. By doing so, the company could provide its own search technology and use its DoubleClick display advertising subsidiary to service Yahoo's advertising inventory, this person said