MRF turnover crosses Rs 10,000 cr; eyes acquisitions abroad

CHENNAI: MRF today said its turnover for the first time has crossed Rs 10,000 crore in one year, becoming the first Indian tyre maker to achieve this mark, and announced plans to acquire plantations or companies abroad to neutralise the impact of high import duty on rubber. "MRF is the first Indian tyre company to have crossed the turnover of Rs 10,000 crore in one year. It registered growth in excess of 30 per cent over the previous year," MRF Chairman K M Mammen told reporters here. "In 2007, we reported Rs 5,000 crore. Rs 10,000 crore is something we are proud of, because we are the first Indian (tyre) company to achieve this," Mammen said. Talking about future plans, he said MRF was seriously thinking of going out of the country or acquire companies. "We are reviewing a lot of these wonderful ideas," he said. He also expressed hope that the company would double the revenues in future. Stating that the high import duty was having an impact on its bottom line, he said they were looking to acquire plantations in any region or acquire companies. When asked whether the company has zeroed in on any company or any plantations, he only said, "We are looking at the whole world." MRF exports tyres to 65 nations. It has seven facilities in the country. To another question whether putting up a factory outside India would be a feasible option for the company, Mammen said it was not a right option. "But taking over (of overseas companies) is fine. We are looking at all over the world. I would say, there are lot of opportunities in Europe, South east Asia, China," he said.

TVS, GMR joint venture to go pan-India

CHENNAI/HYDERABAD: TVS and GMR, two of South India's most prominent family businesses, have been in a very silent joint venture in the aviation logistics space for more than a year-and-a-half now. Starting with the Hyderabad airport, where the JV is already operational, the plan is to go pan-national. Such a coming together of these two groups has never been discussed in the media until now. The tie-up is between TVS Logistics, whose MD is R Dinesh, and GMR Hyderabad Airport Resource Management. GMR Group head GM Rao's son Kiran Kumar Grandhi is one of the directors of the JV. The TVS company, which has a 51% stake, didn't share details. However, Hemanth DP, COO of the GMR group company, said the idea behind the alliance with TVS Logistics was mainly to tap road feeder services from and to the airport. "TVS is a very established player in the trucking business. We are developing the feeder services as more and more airlines are in need of an extension of their network," he said. "If you come in Lufthansa from Frankfurt to Hyderabad and go in a Jet Airways to Tirupati, technically you book one seat only but it is in two different airlines. Similarly, in the cargo business, we want to establish the road feeder network to connect the last leg. In some cases, it will be by road." The JV is currently operating Aero Express, the bus service that connects the airport to major locations in the city. This is a service that has been scaled up in recent times with more frequency and routes. Vikram R Jaisinghani, the GMR group company's CEO, said, "There is an opportunity for TVS to offer road feeder services and they may be one of the players in the logistics space at the airport." Then there are warehousing services, where GMR believes players like TVS can work with it. Jaisinghani was bullish about his company's plan to develop a cargo hub. The JV has its origins in a company called Radi Logistics, where some TVS members had minor stakes and an associate of Dinesh owned the biggest stake.

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.