NEW DELHI: Telenor says it expects India to protect its "lawful investment" after Supreme Court scrapped mobile permits held by the Norwegian giant and other firms on grounds the licensing process was rigged.
Telenor entered India's growing telecom market in 2009, paying $1.1 billion for a majority stake in Indian mobile firm Uninor, which holds 22 of the 122 licences cancelled by the Supreme Court on Thursday.
"We look to the government to arrive at a fair outcome that doesn't jeopardize our lawful investment," the company said in a statement in New Delhi late Friday.
Telenor said separately Friday in Oslo it would take a charge of 4.2 billion kroner (550 million euros, $720 million) on its Indian unit. After the charge, the book value of the company's Indian assets would be worth 2.4 billion kroner.
The Supreme Court scrapped the second-generation (2G) mobile licences issued in 2008 to a host of companies with foreign partners on the grounds the sale was fraudulent, costing the government up to $39 billion in lost revenues.
Telenor is the second largest foreign investor in the country's telecom sector, after Britain's Vodafone Group.
"When we have not caused any of the faults found by the courts, it is obvious to everyone our investment must not be jeopardised," the company said.
"We urge the government to ensure that a foreign investor that had nothing to do with these processes is not harmed."
Telenor added it was reviewing the court order "and will consider necessary actions to safeguard our investment."
Indian law allows the firms affected by the court order to seek a review of the ruling and companies are weighing what action to take.
Analysts say the ruling will further sour investor sentiment toward India that has already been rattled by a slowing economy and regulatory uncertainty.
Telenor partnered with Indian property developer Unitech, one of a number of Indian companies with no telecom experience that bought mobile licences and later sold stakes in their new cellular operations to foreign investors for hefty sums.
Other foreign investors included Gulf-based Etisalat and Russia's Sistema JSFC.
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Saturday, February 4, 2012
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Jonty Rhodes to promote South African tourism in India as brand ambassador
Chennai: Former South African cricketer Jonty Rhodes, who is the fielding coach for Indian Premier League team Mumbai Indians, will wear another hat in India. He has volunteered to promote South African tourism in India as brand ambassador.
For the Rainbow Nation, India is now a core segment to attract tourists and Mr Rhodes has a ‘great' fan following in India, said Ms Hanneli Slabber, Country Head, South African Tourism.
In an earlier avatar, in 2005 the South African cricketer was roped in by the eco-safari operator Conservation Corporation Africa as its ambassador to India. He is also involved in coaching young crickets on fielding in some of the academies.
According to Ms Slabber, Mr Rhodes coming on board South African tourism is very timely, as India is one of the most ‘vibrant' markets to attract tourists to the Rainbow Nation. “We are taking India seriously. With 62 officials from South Africa [compared to 32 last year] on a road show to is a testimony of the importance this country is for us,” she said. Mr Rhodes is so passionate about India that he plans to write road trip diaries this year. The first part is to be released in March, she said.
Record volume
In 2011, nearly 85,000 Indians visited South Africa. This was nearly 18 per cent more than the previous year's number of 72,000, she said.
Interestingly, in terms of volumes, Mumbai and Delhi send the most number of tourists to South Africa. However, when it comes to spending, travellers from secondary cities like Chennai, Ahmedabad, Bangalore, Hyderabad and Pune spend 15-20 per cent more than that of visitors from Mumbai and Delhi, she said.
With the burgeoning development, increasing purchasing power and flourishing travel aspirations of Indians in Tier II and III cities, going forward, South African tourism would like to expand our reach in these promising markets through road shows and advertising and marketing campaigns. Last year, the advertising budget for India was increased by 50 per cent, and this year by another 50 per cent, she said without giving any numbers, she said.
For the Rainbow Nation, India is now a core segment to attract tourists and Mr Rhodes has a ‘great' fan following in India, said Ms Hanneli Slabber, Country Head, South African Tourism.
In an earlier avatar, in 2005 the South African cricketer was roped in by the eco-safari operator Conservation Corporation Africa as its ambassador to India. He is also involved in coaching young crickets on fielding in some of the academies.
According to Ms Slabber, Mr Rhodes coming on board South African tourism is very timely, as India is one of the most ‘vibrant' markets to attract tourists to the Rainbow Nation. “We are taking India seriously. With 62 officials from South Africa [compared to 32 last year] on a road show to is a testimony of the importance this country is for us,” she said. Mr Rhodes is so passionate about India that he plans to write road trip diaries this year. The first part is to be released in March, she said.
Record volume
In 2011, nearly 85,000 Indians visited South Africa. This was nearly 18 per cent more than the previous year's number of 72,000, she said.
Interestingly, in terms of volumes, Mumbai and Delhi send the most number of tourists to South Africa. However, when it comes to spending, travellers from secondary cities like Chennai, Ahmedabad, Bangalore, Hyderabad and Pune spend 15-20 per cent more than that of visitors from Mumbai and Delhi, she said.
With the burgeoning development, increasing purchasing power and flourishing travel aspirations of Indians in Tier II and III cities, going forward, South African tourism would like to expand our reach in these promising markets through road shows and advertising and marketing campaigns. Last year, the advertising budget for India was increased by 50 per cent, and this year by another 50 per cent, she said without giving any numbers, she said.
Amazon flows into India via Junglee route
Mumbai: Amazon.com on Thursday flowed into India — not on its own but by using one of its offshoots. The world’s largest online retailer dusted off a website, Junglee.com, it bought 14 years ago and launched it in the country.
Amazon is obviously waiting for the government’s multi-brand retail FDI (foreign direct investment) policy before it comes in directly.
Junglee.com will not compete with established e-commerce sites like Flipkart or eBay and is being positioned as an online shopping service that will help customers discover products from other websites (including Amazon.com). When users select or choose to buy a product from Junglee.com, they would be redirected to the seller’s website.
Each seller will be responsible for shipping, will have their own refund and return policies and payment modules. Amit Agarwal, vice-president, Amazon.com, said, “The selection on Junglee includes more than nine million books and three million products from more than 14,000 Indian and global brands. Junglee would be that shopping platform where users can discover and compare products easily without going from one site to another.”
Not surprisingly, Flipkart and eBay are not part of the websites one can visit using the Junglee.com platform.
Amazon’s entry as a shopping catalogue aggregator is not being viewed as a threat by Indian counterparts. OLX.in, an online classifieds site which also merely connects buyers and sellers, claims it is not “just a meta shopping search tool like Amazon”. Amarjit Batra, country head of OLX.in, said, “We are a marketplace for local listings that include real estate to automobiles and Amazon is beginning with just shopping categories. We have not only more services and products for users than Amazon’s Junglee.com but also have an established network of buyers and sellers.” The site draws over 10 million users every month, claims Batra.
Experts say leading e-commerce sites like Flipkart need to watch Amazon’s entry carefully.
Benoy C S, director (ICT Practice), Frost & Sullivan, South Asia & Middle East, said, “While there is no immediate threat to existing e-commerce players, Amazon’s intention would be to establish itself as a full-fledged e-commerce portal eventually in India. That could be a cause for worry.”
Flipkart played a generous rival and welcomed the move. CEO Sachin Bansal said, "We believe FDI will go a long way in improving efficiency in the supply chain and also invite investment in relevant areas. It will bring down the overall costs in the system, leading to larger benefits for the Indian consumer. As far as the e-commerce sector is concerned, we are already witnessing significant investments in the supply chain and technology and we expect this to get a further boost, going forward."
India, with its 100 million internet users, is an attractive market for online retail. ComScore data indicate 54 per cent of the online population in India accesses retail services (websites) online. Data also show that around 10 per cent of the online population in India visits comparison shopping sites, the fourth largest retail category online. The top online retail categories, according to ComScore data, are computer software, consumer electronics and computer hardware.
Amazon, which set up its first warehouse in India last year, had said the move would make product shipments faster and cheaper. For now, Amazon products (like Kindle) ordered via Junglee.com will be shipped and charged the usual international product duties and taxes. Analysts maintained that with cost being a critical factor in online shopping, Amazon cannot compete with local players who can ship products at much cheaper rates.
For now, Junglee.com integrates with online and offline retailers, lists their entire selection of products available in India and uses Amazon’s search technology that enables customers to navigate and find what they are looking for quickly. Junglee also uses the same recommendation engine technology as Amazon.com, such as displaying the “Most Frequently Viewed Products” or “Customers Who Viewed This Product Also Viewed”.
Agarwal underlined that Junglee.com would look to tap local businesses and retailers, too. “Our goal with Amazon Seller Services is to help retailers of all sizes succeed and grow their business online. We will invest in helping local businesses build their brand and increase sales, while lowering the cost of selling their products online,” he said. Currently, Amazon is allowing Indian sellers to place their ads on its network for free.
Ram Shriram, founding board member of Google and one of the first investors in Google, headed Junglee that was acquired by Amazon.com in August 1998.
Amazon is obviously waiting for the government’s multi-brand retail FDI (foreign direct investment) policy before it comes in directly.
Junglee.com will not compete with established e-commerce sites like Flipkart or eBay and is being positioned as an online shopping service that will help customers discover products from other websites (including Amazon.com). When users select or choose to buy a product from Junglee.com, they would be redirected to the seller’s website.
Each seller will be responsible for shipping, will have their own refund and return policies and payment modules. Amit Agarwal, vice-president, Amazon.com, said, “The selection on Junglee includes more than nine million books and three million products from more than 14,000 Indian and global brands. Junglee would be that shopping platform where users can discover and compare products easily without going from one site to another.”
Not surprisingly, Flipkart and eBay are not part of the websites one can visit using the Junglee.com platform.
Amazon’s entry as a shopping catalogue aggregator is not being viewed as a threat by Indian counterparts. OLX.in, an online classifieds site which also merely connects buyers and sellers, claims it is not “just a meta shopping search tool like Amazon”. Amarjit Batra, country head of OLX.in, said, “We are a marketplace for local listings that include real estate to automobiles and Amazon is beginning with just shopping categories. We have not only more services and products for users than Amazon’s Junglee.com but also have an established network of buyers and sellers.” The site draws over 10 million users every month, claims Batra.
Experts say leading e-commerce sites like Flipkart need to watch Amazon’s entry carefully.
Benoy C S, director (ICT Practice), Frost & Sullivan, South Asia & Middle East, said, “While there is no immediate threat to existing e-commerce players, Amazon’s intention would be to establish itself as a full-fledged e-commerce portal eventually in India. That could be a cause for worry.”
Flipkart played a generous rival and welcomed the move. CEO Sachin Bansal said, "We believe FDI will go a long way in improving efficiency in the supply chain and also invite investment in relevant areas. It will bring down the overall costs in the system, leading to larger benefits for the Indian consumer. As far as the e-commerce sector is concerned, we are already witnessing significant investments in the supply chain and technology and we expect this to get a further boost, going forward."
India, with its 100 million internet users, is an attractive market for online retail. ComScore data indicate 54 per cent of the online population in India accesses retail services (websites) online. Data also show that around 10 per cent of the online population in India visits comparison shopping sites, the fourth largest retail category online. The top online retail categories, according to ComScore data, are computer software, consumer electronics and computer hardware.
Amazon, which set up its first warehouse in India last year, had said the move would make product shipments faster and cheaper. For now, Amazon products (like Kindle) ordered via Junglee.com will be shipped and charged the usual international product duties and taxes. Analysts maintained that with cost being a critical factor in online shopping, Amazon cannot compete with local players who can ship products at much cheaper rates.
For now, Junglee.com integrates with online and offline retailers, lists their entire selection of products available in India and uses Amazon’s search technology that enables customers to navigate and find what they are looking for quickly. Junglee also uses the same recommendation engine technology as Amazon.com, such as displaying the “Most Frequently Viewed Products” or “Customers Who Viewed This Product Also Viewed”.
Agarwal underlined that Junglee.com would look to tap local businesses and retailers, too. “Our goal with Amazon Seller Services is to help retailers of all sizes succeed and grow their business online. We will invest in helping local businesses build their brand and increase sales, while lowering the cost of selling their products online,” he said. Currently, Amazon is allowing Indian sellers to place their ads on its network for free.
Ram Shriram, founding board member of Google and one of the first investors in Google, headed Junglee that was acquired by Amazon.com in August 1998.
Bertelsmann sets up India Corporate Centre
New Delhi: The advance parties arrived here first. Now, the generals have landed to set up command.
The $16-billion media giant Bertelsmann, which has had a presence in India for some years now through its books publishing, broadcasting and BPO services divisions, today opened its India Corporate Centre in Delhi.
Through this, it will identify investment opportunities and build new businesses here. Education and digital media are two key new areas the company has identified in India.
Already, four divisions of Bertlesmann — its broadcasting arm RTL, publishing house Random House, magazine publisher Gruner+ Jah and outsourcing services business Arvato — are present in India.
New Chairman and CEO, Mr Thomas Rabe, who took charge of Bertelsmann in October 2011, is here along with senior board members. Fittingly, winners from the X-factor and Indian Idol, two Bertlesmann properties (through Freemantle Media, the production arm of its RTL division), performed at the grand opening. The new Bertelsmann company in India will be led by Mr Pankaj Makkar, a graduate of the group's internal ‘Bertelsmann Entrepreneur Programme'.
For the Gutersloh-headquartered company, this is only the fourth Corporate Centre in the world — and the second in Asia — and hence a “far from routine” opening in Dr Rabe's words. Outside Germany, the group has corporate centres only in New York and Beijing.
“Creating a Corporate Centre in Delhi is meant to be a statement for Bertlesmann,” said Dr Thomas Hesse, President, Corporate Development and New Business, describing how it will serve as the growth platform for the company here.
And, like in China, where Bertlesmann set up an investment fund and acquired start-ups, the group would follow a similar strategy here, he said. According to Dr Hesse, Bertlesmann would be looking at investments in the education and digital media space in India. This appears in line with its global strategy.
Significantly, in January, Bertelsmann pumped in $50 million in a $100-million fund aimed at investments in online education ventures in Europe and the US.
The $16-billion media giant Bertelsmann, which has had a presence in India for some years now through its books publishing, broadcasting and BPO services divisions, today opened its India Corporate Centre in Delhi.
Through this, it will identify investment opportunities and build new businesses here. Education and digital media are two key new areas the company has identified in India.
Already, four divisions of Bertlesmann — its broadcasting arm RTL, publishing house Random House, magazine publisher Gruner+ Jah and outsourcing services business Arvato — are present in India.
New Chairman and CEO, Mr Thomas Rabe, who took charge of Bertelsmann in October 2011, is here along with senior board members. Fittingly, winners from the X-factor and Indian Idol, two Bertlesmann properties (through Freemantle Media, the production arm of its RTL division), performed at the grand opening. The new Bertelsmann company in India will be led by Mr Pankaj Makkar, a graduate of the group's internal ‘Bertelsmann Entrepreneur Programme'.
For the Gutersloh-headquartered company, this is only the fourth Corporate Centre in the world — and the second in Asia — and hence a “far from routine” opening in Dr Rabe's words. Outside Germany, the group has corporate centres only in New York and Beijing.
“Creating a Corporate Centre in Delhi is meant to be a statement for Bertlesmann,” said Dr Thomas Hesse, President, Corporate Development and New Business, describing how it will serve as the growth platform for the company here.
And, like in China, where Bertlesmann set up an investment fund and acquired start-ups, the group would follow a similar strategy here, he said. According to Dr Hesse, Bertlesmann would be looking at investments in the education and digital media space in India. This appears in line with its global strategy.
Significantly, in January, Bertelsmann pumped in $50 million in a $100-million fund aimed at investments in online education ventures in Europe and the US.
RIL signs $400m loan deal with SACE
Mumbai: Energy giant Reliance Industries Ltd (RIL) has approached the international markets again, this time to raise funds for its ambitious $11 billion (Rs 55,000 crore) Jamnagar phase three expansion project, popularly called as J-3 mega petrochemicals project, aimed at doubling its petrochemicals production for further consolidating its global leadership position.
The project envisages setting up of mega petrochemical units, a gasification plant and refinery off-gas cracker, among others.
RIL officials were in Rome on Thursday to sign an agreement for $400 million loan facility from Italian insurer and finance group SACE Spa.
The company is also in talks to tap funds from US Export Import Bank for this prestigious project, "This $400 million transaction , the fourth one concluded with RIL since 2004, brings $1 billion the overall credit facilities backed by SACE for the major Indian group. Jamnagar phase 3 project is one of the projects supported with this transaction. The funds will be used for the expansion and upgrading of the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker as part of an investment plan in India worth over $ 11 billion," SACE CEO Alessandro Castellano told TOI without specifying the term and interest rate for the loan.
RIL has signed agreements with some of the major Italian firms including Salmoiraghi Group, Chemtex Italy, and Polimeri Europia, the whollyowned subsidiary of ENI of Italy for the J-3 project. A RIL spokesperson also confirmed firm's fund-raising plans for the petrochemical projects, without specifying any details.
The company is also in talks with various global firms from US to Europe for tie-ups , joint ventures and technology collaboration. The SACE guarantee will support the contracts for the supply of goods and services awarded to several Italian companies, especially SMEs while the US Exim loan will support the contracts for the supply of goods and services awarded to several US firms.
Besides, RIL had signed some 'in-principal' agreements with some of the leading players for the J-3 project that includes its joint venture collaboration with Russian SIBUR for production of butyl rubber plant with capacity of 1,00,000 tonnes.
Once commissioned, RIL will become one of the largest producers of butyl rubber globally. The largest integrated global polyester producer with capacity of 2.4 million is in process of scaling its capacity to 3.6 million tonnes. RIL is also setting up 1.5 million tonnes olefin cracker unit, which will be among the largest and most competitive facilities globally.
The project envisages setting up of mega petrochemical units, a gasification plant and refinery off-gas cracker, among others.
RIL officials were in Rome on Thursday to sign an agreement for $400 million loan facility from Italian insurer and finance group SACE Spa.
The company is also in talks to tap funds from US Export Import Bank for this prestigious project, "This $400 million transaction , the fourth one concluded with RIL since 2004, brings $1 billion the overall credit facilities backed by SACE for the major Indian group. Jamnagar phase 3 project is one of the projects supported with this transaction. The funds will be used for the expansion and upgrading of the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker as part of an investment plan in India worth over $ 11 billion," SACE CEO Alessandro Castellano told TOI without specifying the term and interest rate for the loan.
RIL has signed agreements with some of the major Italian firms including Salmoiraghi Group, Chemtex Italy, and Polimeri Europia, the whollyowned subsidiary of ENI of Italy for the J-3 project. A RIL spokesperson also confirmed firm's fund-raising plans for the petrochemical projects, without specifying any details.
The company is also in talks with various global firms from US to Europe for tie-ups , joint ventures and technology collaboration. The SACE guarantee will support the contracts for the supply of goods and services awarded to several Italian companies, especially SMEs while the US Exim loan will support the contracts for the supply of goods and services awarded to several US firms.
Besides, RIL had signed some 'in-principal' agreements with some of the leading players for the J-3 project that includes its joint venture collaboration with Russian SIBUR for production of butyl rubber plant with capacity of 1,00,000 tonnes.
Once commissioned, RIL will become one of the largest producers of butyl rubber globally. The largest integrated global polyester producer with capacity of 2.4 million is in process of scaling its capacity to 3.6 million tonnes. RIL is also setting up 1.5 million tonnes olefin cracker unit, which will be among the largest and most competitive facilities globally.
NABARD incentivises banks to boost investment in warehousing
National Bank for Agriculture and Rural Development (NABARD) has newly introduced a refinance product for warehousing. The refinance scheme incentivises banks to accelerate the pace of creation of quality warehousing facilities for agricultural commodities, particularly for reducing post-harvest losses.
The scheme was conceptualised out of a dedicated Fund of Rs 2,000 crore allocated in the union budget. The scheme will help in creation of around 9 million tonne of additional storage capacity in the country.
National Bank for Agriculture and Rural Development Gujarat's CGM, H.R Dave said that Nabard will extend financial assistance, by way of refinance, to commercial banks, regional rural banks and cooperative banks against the loans extended by them for construction of warehousing infrastructure for agricultural commodities.
NABARD shall charge interest on refinance at 8% per annum, while interest on the loans to the borrowers would be decided by the banks as per their existing policies.
NABARD will extend an interest rebate of 1.5% to those borrowers, who repay their loans, alongwith interest, as per the repayment schedule prescribed by the financing bank. Interest rate rebate will be provided by NABARD once the bank certifies timely repayment by the borrower.
NABARD will assist the financing banks to undertake intensive on site and off site monitoring of the projects to ensure timely completion and availability of the additional warehousing facility to farmers.
Mr Dave said that the creation of warehouses would be the infrastructure required for the growth of agriculture sector. ""The budgetary allocation for funding through this mechanism is going to multiply in years to come to meet the storage requirements for food security as well as to include cold
storages and cold chain requirements,""he said while stressing the need for encouraging accredited warehouses as stipulated by Warehousing Development Regulatory Authority (WDRA) so as to make farmers eligible to benefit from interest subvention scheme of GoI for pledge loans.
As per the recently announced Govt of India scheme, KCC holder small and marginal farmers can get loans at 7% rate of interest for a period of maximum six months for storage of their produce.
One of the condition of availing the benefit of the subvented marketing loan is that the produce is to be stored in "accredited warehouses" and banks can finance these farmers against the negotiable warehouse
receipt issued by such accredited warehouses. While highlighting the expectation of policy makers, he said that this is a business proposition for bankers and sought their support to encourage hub and spoke model to benefit farmers to store their produce at village level besides getting better price realization.
The scheme was conceptualised out of a dedicated Fund of Rs 2,000 crore allocated in the union budget. The scheme will help in creation of around 9 million tonne of additional storage capacity in the country.
National Bank for Agriculture and Rural Development Gujarat's CGM, H.R Dave said that Nabard will extend financial assistance, by way of refinance, to commercial banks, regional rural banks and cooperative banks against the loans extended by them for construction of warehousing infrastructure for agricultural commodities.
NABARD shall charge interest on refinance at 8% per annum, while interest on the loans to the borrowers would be decided by the banks as per their existing policies.
NABARD will extend an interest rebate of 1.5% to those borrowers, who repay their loans, alongwith interest, as per the repayment schedule prescribed by the financing bank. Interest rate rebate will be provided by NABARD once the bank certifies timely repayment by the borrower.
NABARD will assist the financing banks to undertake intensive on site and off site monitoring of the projects to ensure timely completion and availability of the additional warehousing facility to farmers.
Mr Dave said that the creation of warehouses would be the infrastructure required for the growth of agriculture sector. ""The budgetary allocation for funding through this mechanism is going to multiply in years to come to meet the storage requirements for food security as well as to include cold
storages and cold chain requirements,""he said while stressing the need for encouraging accredited warehouses as stipulated by Warehousing Development Regulatory Authority (WDRA) so as to make farmers eligible to benefit from interest subvention scheme of GoI for pledge loans.
As per the recently announced Govt of India scheme, KCC holder small and marginal farmers can get loans at 7% rate of interest for a period of maximum six months for storage of their produce.
One of the condition of availing the benefit of the subvented marketing loan is that the produce is to be stored in "accredited warehouses" and banks can finance these farmers against the negotiable warehouse
receipt issued by such accredited warehouses. While highlighting the expectation of policy makers, he said that this is a business proposition for bankers and sought their support to encourage hub and spoke model to benefit farmers to store their produce at village level besides getting better price realization.
Facebook CEO goes Steve Jobs' way on salary
Mark Zuckerberg may be founder and CEO of Facebook, but it is the second-in-command and Chief Operating Officer Sheryl Sandberg who gets a fatter salary package at the IPO-bound social networking giant.
The base salary of Zuckerbeg, also the most-known face of Facebook, is set to decline further and would remain just a token amount of $one per year, effecting January 1, 2013.
As per the regulatory filings made by the US-based Facebook for its IPO (initial public offer), Sandberg is the highest paid executive at the world's largest social network and took home a whopping $30.87 million in 2011.
Facebook founder, Chairman, and CEO Mark Zuckerberg was way behind with a relatively modest pay package of $1.49 million in the same year.
Sandberg's compensation included a base salary of $295,833, bonus of $86,133 and stock awards of $30.49 million, Facebook said in its IPO documents.
The company plans to raise $five billion through the IPO, which could value Facebook at up to $100 billion. Some reports have said that the IPO size could even rise even further to $10 billion.
In the first quarter of 2011, the compensation committee of Facebook decided to increase the base salaries of its executive officers in order to bring them at par with its peer group companies for similar positions.
Accordingly, the base salary of Facebook CEO was hiked by $100,000 and of each other executive officer by $25,000.
However, despite this hike, Facebook's executive officer salaries were still "below the 25th percentile of the salaries" provided by its peer group companies for executives in similar positions, the company has said.
Zuckerberg had a base salary of $483,333 in 2011, but it would decline to just $1 next year, on his request.
The regulatory filing further noted that Molly Graham, the daughter of Donald E Graham, a member of Facebook's board of directors received a cash compensation, including base salary, bonus and other compensation, of $189,168 in 2011.
Randi Zuckerberg, sister of Mark Zuckerberg and employed with Facebook till August 2011, was paid cash compensation of $89,536 in 2011. Prior to that, she was paid $128,750 and $139,578 during 2009 and 2010, respectively.
The total pay of other executive officers like Mike Schroepfer, Vice President of Engineering, stood at $24.72 million in 2011, followed by David A Ebersman, Chief Financial Officer's with $18.67 million and Theodore W Ullyot Vice President General Counsel and Secretary ($6.95 million).
Facebook's revenue rose to $3.71 billion in 2011, up 88 per cent from 2010 and by 377 per cent from 2009.
In 2011, its income rose by 65 per cent to $1 billion. It derives 85 per cent of its revenues from advertising, and the rest from social gaming and other fees
The base salary of Zuckerbeg, also the most-known face of Facebook, is set to decline further and would remain just a token amount of $one per year, effecting January 1, 2013.
As per the regulatory filings made by the US-based Facebook for its IPO (initial public offer), Sandberg is the highest paid executive at the world's largest social network and took home a whopping $30.87 million in 2011.
Facebook founder, Chairman, and CEO Mark Zuckerberg was way behind with a relatively modest pay package of $1.49 million in the same year.
Sandberg's compensation included a base salary of $295,833, bonus of $86,133 and stock awards of $30.49 million, Facebook said in its IPO documents.
The company plans to raise $five billion through the IPO, which could value Facebook at up to $100 billion. Some reports have said that the IPO size could even rise even further to $10 billion.
In the first quarter of 2011, the compensation committee of Facebook decided to increase the base salaries of its executive officers in order to bring them at par with its peer group companies for similar positions.
Accordingly, the base salary of Facebook CEO was hiked by $100,000 and of each other executive officer by $25,000.
However, despite this hike, Facebook's executive officer salaries were still "below the 25th percentile of the salaries" provided by its peer group companies for executives in similar positions, the company has said.
Zuckerberg had a base salary of $483,333 in 2011, but it would decline to just $1 next year, on his request.
The regulatory filing further noted that Molly Graham, the daughter of Donald E Graham, a member of Facebook's board of directors received a cash compensation, including base salary, bonus and other compensation, of $189,168 in 2011.
Randi Zuckerberg, sister of Mark Zuckerberg and employed with Facebook till August 2011, was paid cash compensation of $89,536 in 2011. Prior to that, she was paid $128,750 and $139,578 during 2009 and 2010, respectively.
The total pay of other executive officers like Mike Schroepfer, Vice President of Engineering, stood at $24.72 million in 2011, followed by David A Ebersman, Chief Financial Officer's with $18.67 million and Theodore W Ullyot Vice President General Counsel and Secretary ($6.95 million).
Facebook's revenue rose to $3.71 billion in 2011, up 88 per cent from 2010 and by 377 per cent from 2009.
In 2011, its income rose by 65 per cent to $1 billion. It derives 85 per cent of its revenues from advertising, and the rest from social gaming and other fees
Monday, January 30, 2012
Petronet LNG to set up third terminal in India
Kochi: Petronet LNG Ltd is planning to set up its third terminal in the east coast of India. After the terminals at Dahej and Kochi in the west coast, the third one will come up at Gangavaram in Andhra Pradesh.
Petroleum secretary and Petronet LNG chairman G C Chaturvedi said the 100th board meeting of the company held in Kochi on Friday has given sanction for the project. It has entrusted French consultant Tractabel for preparing the detailed feasibility report. The approximate cost of the 5 million tones capacity terminal will be Rs 4500 crore.
For the third quarter ended December 31, 2011, the company's net profit rose 73 % to Rs 295 crore compared with the corresponding quarter of the previous year. The turnover of the company increased by 74 % to Rs 6330 crore during the period. Petronet LNG managing director A K Balyan said higher increase in net profit is on account of additional volumes with better margins along with higher operational efficiency.
The 5 million tonne Kochi terminal of Petronet LNG will be ready by July and will be operational by October. The terminal has a long term contract for the supply of about 1.5 million tones of LNG from Gorgon in Australia from 2015.
According to Balyan the terminal will have to buy from the spot market till then. Though the long term supply prices is $ 16 per mmbtu, it will be still feasible for companies using feedstock naptha or furnace oil, he said.
Petroleum secretary and Petronet LNG chairman G C Chaturvedi said the 100th board meeting of the company held in Kochi on Friday has given sanction for the project. It has entrusted French consultant Tractabel for preparing the detailed feasibility report. The approximate cost of the 5 million tones capacity terminal will be Rs 4500 crore.
For the third quarter ended December 31, 2011, the company's net profit rose 73 % to Rs 295 crore compared with the corresponding quarter of the previous year. The turnover of the company increased by 74 % to Rs 6330 crore during the period. Petronet LNG managing director A K Balyan said higher increase in net profit is on account of additional volumes with better margins along with higher operational efficiency.
The 5 million tonne Kochi terminal of Petronet LNG will be ready by July and will be operational by October. The terminal has a long term contract for the supply of about 1.5 million tones of LNG from Gorgon in Australia from 2015.
According to Balyan the terminal will have to buy from the spot market till then. Though the long term supply prices is $ 16 per mmbtu, it will be still feasible for companies using feedstock naptha or furnace oil, he said.
Airport retail business tops $1 billion revenue
Mumbai: Airport retail business in India topped $1 billion in revenue during 2011, on the back of robust growth in passenger traffic and more people shopping on the go, according to a boutique retail consultancy. The business is growing at 17-18 % annually, emerging as a viable platform for retailers and operators of the new airports, according to Bangalore-based consulting firm Asipac Projects.
Beauty, personal care, alcohol and tobacco emerged as the top three categories in the dutyfree section, while food & beverage , books, periodicals and stationery took the top spot within the duty-paid segment. Globally, airports registered approximately $43 billion in sales, with the likes of London Heathrow and Seoul's Incheon being the most lucrative ones.
"Airport stores are twice as productive for us compared to stores outside, in terms of sales per sq ft, though operational costs go up substantially at airports. Internationally, sales per sq ft are four to five times more compared to street stores at some of the busiest airports. We have a long way to go to go to reach those numbers," said Dipak Agarwal, chief executive (operations and strategy), DLF Retail, which runs retail stores like Mango and Boggi Milano at Delhi's IGI Airport.
The Delhi domestic-cum-international terminal (T3) has a retail area of around 2 lakh sq ft and built to tap the potential of retail revenues. No wonder airport operators like GMR and GVK, who started off with exorbitant rental rates, are now moving towards a revenue-share model. Malls still work on a persq-ft rental model, with the exception of a few.
"Rentals were too high in the beginning. Therefore, the revenue-share model works better. It is like a win-win situation for both parties," said Anuj Puri, chairman and country head, JLL India, a real-estate consultancy . While many retailers shut down some of their airport stores as rentals did not justify sales, others stuck to these stores as a great branding tool. "We have been drawing three to four times more sales from our four stores in Mumbai and Delhi airports compared to outside stores. In fact, we are doing better in Mumbai," said Shashi Kapoor of Parcos, which sells fragrances , cosmetics and skincare. What retailers point out is that the positioning of stores is important for the store's success at airports.
This is where an airport like Bangalore scores despite being no match in size and scale to Delhi. That, coupled with the fact that it is on the outskirts of the city, adds to retail section's success. "Flyers hang around more at an airport like Bangalore as it is far away from the city. Also, shopping at airports in India has anovelty attached to it, considering it is a new concept for us," said Amit Bagaria, chairman & CEO of Asipac Projects.
Beauty, personal care, alcohol and tobacco emerged as the top three categories in the dutyfree section, while food & beverage , books, periodicals and stationery took the top spot within the duty-paid segment. Globally, airports registered approximately $43 billion in sales, with the likes of London Heathrow and Seoul's Incheon being the most lucrative ones.
"Airport stores are twice as productive for us compared to stores outside, in terms of sales per sq ft, though operational costs go up substantially at airports. Internationally, sales per sq ft are four to five times more compared to street stores at some of the busiest airports. We have a long way to go to go to reach those numbers," said Dipak Agarwal, chief executive (operations and strategy), DLF Retail, which runs retail stores like Mango and Boggi Milano at Delhi's IGI Airport.
The Delhi domestic-cum-international terminal (T3) has a retail area of around 2 lakh sq ft and built to tap the potential of retail revenues. No wonder airport operators like GMR and GVK, who started off with exorbitant rental rates, are now moving towards a revenue-share model. Malls still work on a persq-ft rental model, with the exception of a few.
"Rentals were too high in the beginning. Therefore, the revenue-share model works better. It is like a win-win situation for both parties," said Anuj Puri, chairman and country head, JLL India, a real-estate consultancy . While many retailers shut down some of their airport stores as rentals did not justify sales, others stuck to these stores as a great branding tool. "We have been drawing three to four times more sales from our four stores in Mumbai and Delhi airports compared to outside stores. In fact, we are doing better in Mumbai," said Shashi Kapoor of Parcos, which sells fragrances , cosmetics and skincare. What retailers point out is that the positioning of stores is important for the store's success at airports.
This is where an airport like Bangalore scores despite being no match in size and scale to Delhi. That, coupled with the fact that it is on the outskirts of the city, adds to retail section's success. "Flyers hang around more at an airport like Bangalore as it is far away from the city. Also, shopping at airports in India has anovelty attached to it, considering it is a new concept for us," said Amit Bagaria, chairman & CEO of Asipac Projects.
Sebi eases preferential allotment norms
Mumbai: The Securities and Exchange Board of India (Sebi), the capital market regulator, today lifted restrictions on broad-based institutions, such as insurance companies and mutual funds, subscribing to preferential issues of companies. The decision was taken at its board meeting in New Delhi today.
According to earlier regulations, these institutions were not allowed to participate in preferential allotments if they had sold holdings in the issuer companies in the preceding six months. Further, on allotment, they were required to lock in their entire pre-preferential holdings in such companies for a period of six months from the date of preferential allotment.
Both these restrictions have now been lifted. “It has been decided to exempt insurance companies and mutual funds, which are broad-based investment vehicles representing public at large, from regulations related to sale and lock-in of their pre-preferential shareholding in issuer companies,” Sebi said in a release. However, the lock-in on shares allotted in the preferential issue, will remain unchanged.
Peerless Mutual Fund MD & CEO Akshay Gupta said: “The move will benefit some of the larger asset management companies (AMCs) that already have significant holdings in companies and want to increase those further through preferential allotments. At present, not many AMCs participate in preferential allotments.”
Quantum Mutual Fund Chief Executive Officer Jimmy Patel added: “The move to ease preferential allotment norms will help promoters more than AMCs, as their investor base will increase. Mutual fund houses will now be able to invest in companies, even if they had sold shares in the companies in the past six months.”
Other key decisions
Amendment to MF Advertisement Code: To provide more flexibility to mutual fund houses, Sebi has decided to amended the advertising code to make it principle-based. “The definition of advertisement shall be broadened to include all forms of communication that may influence investment decisions of any investor,” the regulator said.
“Under the current advertisement code, there are many restrictions. More than 40 per cent of the ad space gets wasted on disclaimers and information that investors don’t even read. I hope the new code would give us more flexibility and reduce the disclaimers, so that we can advertise our products properly,” said Gupta.
PMS investment limit increased: The market regulator has increased the minimum investment amount under portfolio management services from Rs 5 lakh to Rs 25 lakh. Further, portfolio managers have been asked to ensure segregation of holdings in individual demat accounts in respect of unlisted securities, too.
“Raising the PMS limit was long overdue. The move will benefit the mutual fund industry. As portfolio managers, who have better incentive structures, used to lure relatively small high networth individuals (HNIs) away from mutual fund houses. This will bring back a lot of investors to mutual funds,” said Patel.
Reservation for holders of convertible debt securities: Sebi has clarified that reservations to convertible debt holders in rights and bonus issues shall only be available to compulsorily convertible debt holders.
According to earlier regulations, these institutions were not allowed to participate in preferential allotments if they had sold holdings in the issuer companies in the preceding six months. Further, on allotment, they were required to lock in their entire pre-preferential holdings in such companies for a period of six months from the date of preferential allotment.
Both these restrictions have now been lifted. “It has been decided to exempt insurance companies and mutual funds, which are broad-based investment vehicles representing public at large, from regulations related to sale and lock-in of their pre-preferential shareholding in issuer companies,” Sebi said in a release. However, the lock-in on shares allotted in the preferential issue, will remain unchanged.
Peerless Mutual Fund MD & CEO Akshay Gupta said: “The move will benefit some of the larger asset management companies (AMCs) that already have significant holdings in companies and want to increase those further through preferential allotments. At present, not many AMCs participate in preferential allotments.”
Quantum Mutual Fund Chief Executive Officer Jimmy Patel added: “The move to ease preferential allotment norms will help promoters more than AMCs, as their investor base will increase. Mutual fund houses will now be able to invest in companies, even if they had sold shares in the companies in the past six months.”
Other key decisions
Amendment to MF Advertisement Code: To provide more flexibility to mutual fund houses, Sebi has decided to amended the advertising code to make it principle-based. “The definition of advertisement shall be broadened to include all forms of communication that may influence investment decisions of any investor,” the regulator said.
“Under the current advertisement code, there are many restrictions. More than 40 per cent of the ad space gets wasted on disclaimers and information that investors don’t even read. I hope the new code would give us more flexibility and reduce the disclaimers, so that we can advertise our products properly,” said Gupta.
PMS investment limit increased: The market regulator has increased the minimum investment amount under portfolio management services from Rs 5 lakh to Rs 25 lakh. Further, portfolio managers have been asked to ensure segregation of holdings in individual demat accounts in respect of unlisted securities, too.
“Raising the PMS limit was long overdue. The move will benefit the mutual fund industry. As portfolio managers, who have better incentive structures, used to lure relatively small high networth individuals (HNIs) away from mutual fund houses. This will bring back a lot of investors to mutual funds,” said Patel.
Reservation for holders of convertible debt securities: Sebi has clarified that reservations to convertible debt holders in rights and bonus issues shall only be available to compulsorily convertible debt holders.
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