Success in my Habit

Wednesday, January 25, 2012

Telcos asked to ensure that towers are run on hybrid power

New Delhi: All telecom companies have been mandated to ensure that that at least 50% of all rural towers and 20% of the urban towers are powered by hybrid power by 2015. Further 75% of rural towers and 33% of urban towers are to be powered by hybrid power by 2020.

These directions have been issued after the government has accepted sector regulator Trai's recommendations on 'green telephony'.

The new rules also mandate that all telecom products, equipments and services in the telecom network should be certified "Green Passport [GP]" by the year 2015. The telecoms department's technical arm - Telecommunication Engineering Centre - will certify telecom products, equipments and services on the basis of Energy Consumption Rating ratings, the regulator said.

Besides, all service providers should declare to the regulator the carbon footprint of their network operations. This declaration should be done twice in a year.

Service providers should adopt a voluntary code of practice encompassing energy efficient network planning, infra-sharing, deployment of energy efficient technologies and adoption of renewable energy technology (RET) to reduce carbon footprints, the regulator said in a statement.

It has also asked service providers to evolve a 'Carbon Credit Policy' in line with carbon credit norms with the ultimate objective of achieving a maximum of 50% over the carbon footprint levels of the Base Year (2011) in rural areas and 66% in urban areas by the year 2020.

Operatores should aim at Carbon emission reduction targets for the mobile network at 5% by the year 2012-2013, 8% by the year 2014-2015, 12% by the year 2016-2017 and 17% by the year 2018-2019, the new norms on green telephony add.

India key in IBM's 2015 roadmap

Mumbai: As a part of its 2015 Roadmap, India is going to be one of the crucial geographies for IBM, both as a delivery centre and as part of emerging market focus. IBM has six delivery centres in India.

It does not give a headcount, but third-party reports suggest its India unit has close to 100,000 employees and the India revenue is around $3 billion (Rs 1,509 crore).

Growth markets, Analytics, Next Generation Data Centre and Cloud & Smarter Planet are the four focus areas of its road map. A crucial aspect of this growth is how it deploys people and processes in an integrated manner to capture new opportunities.

The services unit will be key. Within the services unit, it will be the Global Business Services (GBS) unit which will be the core. For 2010-11, IBM reported revenue of $19.3 billion for its GBS unit; it was $4.9 billion for the quarter ended December 31, 2011. The GBS unit works closely with global delivery centres across the globe.

“IBMs global delivery strategy has gone through phases of growth. After the initial focus on centres in India, China and Latin America, the most recent initiative has been to create globally integrated capabilities, along with integrated industry and domain capability, with globally deployed assets and talents,” said Suhas Bhide, general manager - global delivery, India.

IBM set up its growth market units as early as 2009. “Before this, we had geography-based divisions. We realised that within these regions, there will be slices growing faster than the rest and with unique constraints. Hence, we picked certain growth markets from regions that then become part of our emerging markets focus,” he added. The markets of India, China, Latin America, West Asia and Africa represent the growth market unit.

With a prominent presence in some of these emerging market, it now intends to reap the early mover advantage in some. “We have invested so far $6 billion (Rs 30,000 crore) in India as a growth market. If you look at IBM India, it is a microcosm of IBM global, which is one-of-its kind,” said Bhide.

Some early successes in India include the IBM-Bharti Airtel deal, replicated in other emerging regions. Some entities that work with IBM include Idea and Vodafone in telecommunications; State Bank of India, Canara Bank and HDFC Bank in banking and financial services;, Amul, Tata Sky, Indian Railways and the income tax department.

“When you are working in some of the emerging market geographies like India, you realise there is no labour arbitrage. More, all these firms are competing globally and, hence, need global benchmarks in service delivery as well,” said Bhide.

For the year 2011, growth markets are 22 per cent of IBM’s revenue. The growth markets’ revenue grew 16 per cent year-on-year and the BRIC countries (Brazil, Russia, India, China) reported growth of 19 per cent.

Europe opening up to Indian IT services

Bangalore: The European crisis is acting as a catalyst in driving offshoring from a region that has traditionally preferred onshore IT services. The strong Europe revenue numbers and client additions of Indian IT majors in recent times indicate that clients are viewing offshoring as a cost and efficiency lever.

In calendar year 2011, top-tier IT companies grew their Europe revenues between 23% and 40%. In the just completed Oct-Dec quarter, they posted strong sequential growth in Europe, with Infosys growing at 17%, TCS at 19% and HCL at 6.3%. Europe also saw a larger share of multi-million dollar deals being signed than the US.

Infosys added 14 new clients in Europe of which two were in the $500-million bracket and these were the largest deals the company won in the quarter. TCS won 10 large deals in the quarter that included four from Europe, three from the US, and two from Asia-Pacific. HCL won 18 large deals worth $1 billion, in which Europe led the list in terms of value.

Europe accounts for about 20-30 % of Indian IT's revenues, but a large portion of this comes from the UK. In Continental Europe, led by Germany ($44 billion in IT spends) and France ($37 billion), Indian IT has just a single-digit market share of IT spends. Other large but under-penetrated markets include Spain, Italy and the Nordic regions.

There are other factors too that explain Indian IT's improved performance in Europe. Anil Chanana, CFO at HCL Technologies, said Indian IT has developed capabilities both organically and inorganically to take on large and complex projects. European IT spends are skewed towards higher-margin, project based services such as system integration.

There are also emerging opportunities in 'run the business services'. Cognizant CFO Gordon Coburn said, "One of the things we are seeing as part of the current economic cycle, even in places like France and Germany, is that clients are beginning to openly address the issue of lowering their cost by moving application management services to the global delivery model."

Indian vendors have also made huge investments in Europe in the past couple of years and have appointed country heads recruited locally. Sanjay Vishwanathan, CEO of Sonata Software, said the growing success of the global delivery model, as well as service lines like remote infrastructure and cloud, are helping the cause of offshorers. Indian IT companies also have near shore centres in Europe in countries like Hungary, Poland, Portugal and Romania.

A Deutsche Bank study with 55 major IT decision makers in Europe found that TCS and Wipro were the most favoured vendors. TCS has a greater revenue exposure to Germany and France, which gives it an advantage in this market. Wipro offers the best near shore delivery alternatives and has recently made some key strategic acquisitions.

Infosys is said to offer high-end services on par with European and American counterparts, but is not very flexible when negotiating commercial terms. HCL's acquisition of Axon and strong infrastructure management capabilities has enabled it to win key deals in Europe but is still not viewed as a tier-1 player.

However Infosys CEO S D Shibulal cautions that despite adding 120 European clients in the last nine months, he would wait for a couple of quarters more to say confidently that the European uptick is a secular trend. There is also the danger of Europe falling into a deep recession which might lead to cuts in IT spends.

Switzerland beckons Indian tourists

Chennai: With Indian tourists among the biggest spenders in Switzerland, the Swiss Tourism is pulling out all the stops to promote the land of mountains, glaciers and rivers to potential tourists.

A team of 22 officials from Switzerland Tourism is in Chennai to promote Switzerland as a destination of choice among the travel agents, who in turn will take the message to the potential travellers.

On an average, an Indian spends Swiss Franc 350, including on hotels and restaurants, while it was Swiss Franc 200 among other nationals, Ms Ritu Sharma, Deputy Director and Media Manager, India, Switzerland Tourism, which promotes Switzerland as a holiday and travel destination.

Switzerland continues to be a major attraction for Indians, especially with a number of films shot in that country. Last year, nearly 4.5 lakh Indians stayed overnight in Switzerland, which was nearly 100 per cent growth when compared with the previous year. This year, the target is to grow the overnight stay by Indians by nearly 20 per cent, she told newspersons.

Key markets
India, Brazil and China, and Gulf countries are the key markets that the Switzerland Government will focus this year. Reason, due to the Euro crisis, the Europeans may not spend too much while it is the Indians, Chinese, Brazilians and people in the Gulf who could afford to travel to Switzerland.

Tier II and III towns
Switzerland Tourism will undertake marketing activities this year ranging from customer reach out programmes and advertising campaigns to training programmes for travel agents in tier-II and tier-III cities. The marketing initiatives will focus on the fact that not only is Switzerland a perfect destination for family holidays and honeymooners but also for other segments such as senior holidays, gourmet holidays and adventure holidays, she said.

Year of water
The Switzerland Tourism has dedicated the year 2012 to the ‘year of water' to celebrate its famous glaciers, lakes and rivers. This campaign will create a perfect backdrop for Indian tourists, since Indians have long revered water as divine. In 2011, it was the year of ‘hiking,' which was not liked by Indians, she said.

MICE
Meetings, incentives, conferences and exhibitions will continue to be a major focus as Switzerland is becoming popular with small group of 100-200 people as well as large movements. For instance, Amway took 3,500 people to Switzerland in May, she said.

Asian Development Bank sets its annual investment plan for India at $2 bn till 2014

Asian Development Bank said it plans to investment about $2 billion every year in India's infrastructure space between 2012 and 2014 although the country demands much more than this.

ADB has kept its annual infrastructure financing for India unchanged as its faces fund constraints, its managing director general Rajat Nag said. The Manila-based institution had invested about $2 billion each in 2010 and 2011.

The country will need about $1 trillion investment during the 12th Five Year Plan (2012-2017).

"The size of our investment plan for India is not a reflection of the demand, neither it is a reflection of its performance. It is the supply constraint at our end which compels us to keep the annual plan unchanged at $2 billion," Nag said on Friday at an Indian Chamber of Commerce event in the city.

India is a founding member of ADB and its fifth largest shareholder.

Friday, January 20, 2012

McDonald's goes for costliest revamp to attract more adults

New Delhi: Fifteen years after it entered India, Big Mac is changing colours, literally. The world's largest fast-food chain is shedding its familiar red-and-yellow colours for more muted tones as it goes for its biggest and costliest revamp in the country, in line with its global strategy of attracting more adults.

The makeover also involves taking away the iconic mascot, Ronald McDonald, at least from some of its outlets in the country and beefing up its menu with options that are more likely to appeal to adults. The US-based burger-and-fries chain has already added McSpicy Chicken Burger and McFlurry desserts to its offerings in India.

The red-and-yellow company logo will be replaced by white across its 240 restaurants over the next three-four years and the decor will change from neon-yellow and bright-red interiors to pale colours.

"The change has already kicked off with one outlet each in New Delhi and Mumbai," said McDonald's India (North & East) MD and joint venture partner Vikram Bakshi. The company hopes to upgrade the consumer's experience, he said, without alienating its younger customers and raising prices.

Others are not so confident. "McDonald's core equity, at least in India, lies with kids, mostly in the sub-13-year age group. I am not sure if the move to bring in muted colours and decor would go well with this category of consumers," said Mahesh Chauhan, co-founder of advertising and marketing firm Salt Brand Solutions.

"It may be a good move for some other developed markets, but I am not sure how it will work for a market like India where organised food retail still remains very small." The makeover in India, part of the company's revamp in the Asia-Pacific Middle-East and Africa region, comes three-four years after the US and Europe.

"The designs will be different in different stores depending on their location but the common thread will be more soothing colours, contemporary designs and softer seating," said Bakshi. Ronald McDonald will disappear from locations where more adults visit the outlets, but will remain in restaurants where the footfalls of children are higher. Globally, McDonald's has been under pressure from nutritionists and activists to remove its clown mascot because it attracts mainly children.

According to the company, nearly half-a-million customers visit its restaurants in India every day. The revamp will cost at least 50% more per outlet, Bakshi said, but added that the company hopes to recover the additional investments through more volumes. The company is donning a new look at a time India is on its way to becoming a global hotspot for food retailers, with chains like Starbucks, Dunkin Donuts and Burger King planning to enter the country.

"Global firms like McDonald's would not take such calls too often, and this would require big investments. They would have anticipated competition which is expected to come in sooner than later," said Harminder Sahni, founder of retail consultancy Wazir Advisor.

NRI venture to invest Rs 500 cr in Kerala

Kozhikode: The Dubai-based Fathima Healthcare Group has launched a new venture, NRI Project Management India Ltd (NRI-PMI), and has drawn up plans to invest around Rs 500 crore in various projects here in the first phase.

The projects include a world trade centre, convention centres, star hotels, supermarkets and amusement parks. The new venture will mainly focus on the welfare of the non-resident Indians (NRIs) and their families, according to Dr K.P. Hussain, Chairman, Fathima Healthcare Group.

He said here on Wednesday that funds would be raised through shares from NRIs and invested in profitable projects. The company will identify suitable projects in other States in India as well for making investments and NRIs will be given preference in employment according to their skills or through proper training at NRI-PMI-funded projects.

The company will have branches all over India with regional head-offices. Further, it was proposed to establish representative offices all over the world with the support of related authorities, Dr Hussain said.

The NRIs can either propose the projects or take up new or existing projects of the Union or State governments. The projects will create employment opportunities for NRIs who return from abroad after losing jobs or for any other genuine reason.

Along with the NRI projects, the group is floating a new venture, styled, Corn Corner Foods India Private Ltd. To begin with, sweet corn machines will be established in different parts of Kozhikode city as also in its suburbs, offering employment opportunities to around 100 people.

The group's other initiative, Dr K.P. Hussain Charitable Trust, is planning to install dialysis units in all district hospitals in Kerala at an estimated cost of Rs 5.5 crore. The trust has been extending scholarships to students from poor sections of the society and assistance for the treatment of poor patients.

Fathima Healthcare Group has spread its activities to Qatar, Oman, Bahrain and Saudi Arabia and has also firmed up its presence in education, media and hospitality fields.

Nippon Life picks 26% in Reliance AMC for Rs 1,450 cr

Mumbai: Japanese life insurance major, Nippon Life Insurance, on Thursday signed a memorandum of understanding (MoU) to acquire a 26 per cent stake in Reliance Capital Asset Management (RCAM) for Rs 1,450 crore. This is the largest foreign direct investment in the Indian mutual fund sector. RCAM is part of the financial services arm of Reliance Capital, an Anil Dhirubhai Ambani Group company.

According to a press release, the largest life insurer of Japan valued Reliance Life Insurance at around Rs 5,600 crore ($1.1 billion), or roughly 6.64 per cent of total assets — which is higher than the deals that have taken place in the industry in the last couple of years. Morgan Stanley advised Nippon on the deal.

Goldman Sachs bought Benchmark Mutual Fund at a reported amount of Rs 130.5 crore, giving it a valuation of 4.1 per cent of assets. In September 2009, L&T Finance had bought DBS Chola Mutual Fund for Rs 45 crore, or 1.5 per cent of assets. The only deal that comes close to such a valuation is IDFC’s purchase of Standard Chartered Mutual Fund in 2008. The company had paid Rs 831 crore, or 5.7 per cent of assets.

In the mutual fund segment, deals are valued on the basis of a fund house’s asset mix, network strength, long-term earnings prospects and profitability. Typically, the higher the amount of equity AUM over the long term, the more the valuation. This is because equity mutual fund schemes earn better commissions than debt and other fund categories in a given tenure.

This is the second stake sale in the company. In 2008, hedge fund manager Eton Park Capital Management had purchased a 4.76 per cent stake for Rs 501 crore, paying the fund house 13 per cent of its AUM. RCAM, India’s second-largest AMC in terms of assets under management, managed Rs 84,299-crore assets as on December 31. Though HDFC Mutual Fund has become the largest player in terms of assets, Reliance emerged as the most profitable mutual fund house in 2010-11, with a net profit of Rs 261 crore, while HDFC reported net profit of Rs 242 crore.

“We are delighted to have Nippon as our strategic partner in the mutual fund business. They are already our partners in the Life insurance business. The mutual fund partnership cements and strengthens the relationship between Reliance Group and Nippon Life further and takes it to a new level, said Reliance Capital chairman Anil Ambani. “This investment is our second capital alliance with the Reliance Group, following our investment in Reliance Life last year,” said Nippon Life president Yoshinobu Tsutsui. In March last year, the Japanese insurer had picked up 26 per cent in Reliance Life, the life insurance arm of R-Cap, for Rs 3,062 crore. That was the largest FDI in the Indian insurance sector. The transaction pegged the total valuation of Reliance Life at approximately Rs 11,500 crore ($2.6 billion). Nippon Life, Asia’s largest private life insurance company, which managed assets worth $600 billion (Rs 30 lakh crore), posted revenue of Rs 3,49,834 crore ($80 billion) and a profit of Rs 12,199 crore ($3 billion) for the financial year ended March 31, 2011, the release added.

Parkside Hotels of UK enters India

hennai: Parkside Hotels of the UK is entering India as a part of its expansion in major markets in Asia.

Parkside is a global hotel chain with a range of properties catering to budget and ultra luxury segments. A division of this hotel chain, Parkside Zebra Hotels, has tied up with seven hotels in India and in Nepal and is entering into management contracts in South-East Asia.

Mr Himanshu Mehta, President and CEO, Parkside Zebra Hotel, told media persons that the $140-million chain will bring in a range of brands, including the Parkside Zebra Inn for budget travellers, the Parkside Zebra Hotel in the four- and five-star category, Parkside Zebra Suites offering high end suites that could cost up to Rs 30,000 a night and the niche segment Parkside Zebra Collection that could set a guest back by about Rs 1 lakh a day.

In India it has so far signed up about half a dozen properties of three to 150 rooms under the Parkside Zebra Inn and Suites. These properties are in Amritsar, Dharamshala, Jaisalmer, New Delhi and Udaipur. The company has charted out ambitious plans to tie up more lease and management contracts and is in discussions to add 30 properties in Chennai, Munnar, Baroda, Bangalore, Nagpur, Pondicherry and Dehradun.

As a part of its expansion in Asia it has signed up 19 hotels across Pakistan, Bangladesh, Nepal, Sri Lanka, Dubai and Malaysia. A unique feature of Parkside is that its offerings are significantly lower priced than equivalent brands as its business model is low-cost while offering high-end service. Its fee structure is based on number of rooms at the hotel and there is no long-term agreement, according to Mr Mehta.

Highway corridor to link Mumbai with satellite towns

Mumbai: The state government is looking beyond its proposed coastal road plan to develop a comprehensive network of urban freeways and highways connecting the financial capital of the country to major satellite townships. The 1,740-km highway corridor will be developed by 2030.

This has been recommended by the 11-member joint technical expert committee, which submitted its final report to chief minister Prithviraj Chavan on Tuesday. The panel, headed by municipal commissioner Subodh Kumar, has drawn the idea from a Comprehensive Transport Strategy prepared by consultants Lea Associates for the MMRDA in 2009.

The committee acknowledged that even though the share of public transport in Mumbai and surrounding areas is already high, the roads are badly congested and the government needs to substantially invest in road transport infrastructure. This could be done in the form of rings, radials, urban freeways and a well-developed and connected network of highways. High-quality transport network consisting of urban freeways and different types of transit system is the need of the hour, the panel has said. "The recommended highway network will comprise a significant roads length running along the city coastline." The highway network would connect to a ring road that would be constructed around Mumbai. Beginning from Nariman Point in South Mumbai and connecting to Versova will be the Western Freeway.

Similarly, an Eastern Freeway will run along the Eastern Coast of the Island City and connect to Chembur, further merging with the Eastern Express Highway at Ghatkopar. The proposed Sewri-Nhava Trans Harbour Link will secure connectivity between Sewri and Nhava. The MTHL and the Virar-Alibag corridor will complete the ring road around Mumbai.

While the overall cost estimate has not been arrived at, the ring road could be around 58 kms and cost Rs 32,000 crore, said estimates. Of the total network of Highway Corridor, nearly 539 kms will be newly developed, another 782 kms of existing arterial road will be upgraded or extended, arterial corridors and links to the length of 420 km will be constructed. The proposed Highway Corridor will include Eastern Freeway, Sewri-Worli Sea Link, Mumbai Trans Harbour Link (from Sewree to Kharkopar, Rave), inner ring roads connecting Kaman, Bhiwandi, Panvel and Dronagiri, Middle Ring Road connecting Bhiwandi, Nandivali, Narthengaon, Panvel and Kharkopar).

An Outer Ring Road connecting Khopoli, Jite and Rewas Port will complete the ring. This apart, there will be eight radials connecting NH-8, parts of NH-3, Bhiwandi Bypass, Nahur, Airoli, Nilaje, Badlapur, Chembur, Mankhurd, Vashi, Taloja, Belapur, Kalamboli, Uran, Pen and New Airport. The corridor will be completed by extending Western Coastal Freeway in the south and north up to Virar.