BANGALORE: GMR Infrastructure has withdrawn its bid for contracts to modernise three airports in Brazil, but is planning to participate in the second round of privatisation there, a top company official said.
GMR, a developer of airports, power stations and roads, had said in December that it had bid for renovation and expansion projects at Sao Paulo's Guarulhos airport, Viracopos airport near Sao Paulo, and Brasilia airport, which serves Brazil's capital. Over 10 consortiums participated in the bidding, which ended on Thursday.
"We entered the country fairly late and started looking at these opportunities only about four months back. When it came to the final stage, we felt that we are not fully prepared," said Sidharath Kapur, chief financial officer of GMR's airport business.
The company, however, plans to participate the second round of bidding, which is expected in June. "The next round is expected to include a project to modernise and expand Rio deJaneiro's airport, and we are working to participate in it," Kapur said.
GMR Infrastructure's shares closed 1.16% lower at Rs 29.70 on the Bombay Stock Exchange on Friday. The Bangalore-based company, which operates the Delhi and Hyderabad airports in India, is currently upgrading the international Airport in Male, Maldives.
The infrastructure company had earlier abandoned two airports privatisation projects in Spain and Croatia because of the Euro zone crisis. GMR's airport division posted a secondquarter loss of Rs 165 crore, hurt by delays in tariff revision at its Delhi project.
Success in my Habit
Saturday, February 4, 2012
Sahara India ends ties with BCCI, withdraws sponsorship & pulls out of IPL
NEW DELHI: In a surprise development, the Indian cricket team's longtime sponsor Sahara India today ended financial ties with the BCCI and also pulled out of the IPL by withdrawing from Pune Warriors' ownership just hours before the players' auction.
Sahara, which has been the team sponsor for 11 years, signed a renewed agreement with the BCCI on July 1, 2010 till December 31, 2013.
Sahara was paying Rs 3.34 crore per Test match, one-day international and Twenty20 International under the new terms.
"...after an 11-year journey as sponsors, we can say with surety that cricket has become very rich. Many rich people are there to support cricket with a strong will to do so. So, with absolute peace of mind we can exit from cricket under BCCI and are exiting with a heavy heart," Sahara India said in a statement.
"It was an emotional decision for us to start this sponsorship but our emotions were never appreciated and many genuine situations were not given due consideration at all," the statement read.
Sahara, which entered the cash-rich IPL bandwagon last year along with the now-disbanded Kochi Tuskers Kerala, complained that several requests put forth by it with regards to players and the number of matches were not accepted by the BCCI.
"Our first entry into IPL was thwarted in 2008 when we were disqualified, owing to a small technicality on the whims and fancies of BCCI. Yet our Bid was not opened," the statement said.
"Last year, Sahara entered the IPL on the basis of information in the media and everywhere else that 94 matches will be played among 10 teams. The bid price was accordingly calculated, but only 74 matches were played. We are still pursuing continuously with the BCCI to refund the extra bid money proportionately. It has been denied on the basis of strict rules.
"In the interest of the tournament, we repeatedly tried our best to pursue the BCCI for open auction of all players so that we achieve level playing field and all teams are equally balanced from the quality players' point of view. Again, as per BCCI's strict rules it was denied and again, we were deprived of natural justice. 12 of the best players were retained by the existing teams then," it added.
"The two new teams then requested for allowing us at least one extra foreign player but that too was denied, quoting rules."
Sahara's marquee player in the IPL is skipper Yuvraj Singh, who is currently recovering from tumour in the lungs.
His unavailability in the IPL this season prompted Sahara to ask the BCCI that the price of the batsman be added to their overall purse for the players auction but the request was turned down.
"Yuvraj Singh, who is truly like one of our family members, is, quite unfortunately, passing through a bad phase health wise, undergoing treatment for critical illness, overseas.
"Our duty is to take care of him, so Sahara has decided to pay him his full fee this year with condition as a Guardian that his priority should be health care and he should not play till he has fully recovered," the company stated.
"We requested the BCCI on the basis of the fact that we have only one Indian marquee player, that we be allowed to add price of Yuvraj Singh in our auction purse, during the February 4 auction because we had later taken Sourav Ganguly at 0.4 million.
"Again, we have been denied on the basis of the rule book. Yet again, a case of being denied natural justice. We think this peculiar situation of Shri Yuvraj Singh is silent in the rule book because it probably talks only about players who are temporarily injured."
Sahara is apparently also unhappy with the fact that Royal Challengers Bangalore were allowed to buy
Sahara, which has been the team sponsor for 11 years, signed a renewed agreement with the BCCI on July 1, 2010 till December 31, 2013.
Sahara was paying Rs 3.34 crore per Test match, one-day international and Twenty20 International under the new terms.
"...after an 11-year journey as sponsors, we can say with surety that cricket has become very rich. Many rich people are there to support cricket with a strong will to do so. So, with absolute peace of mind we can exit from cricket under BCCI and are exiting with a heavy heart," Sahara India said in a statement.
"It was an emotional decision for us to start this sponsorship but our emotions were never appreciated and many genuine situations were not given due consideration at all," the statement read.
Sahara, which entered the cash-rich IPL bandwagon last year along with the now-disbanded Kochi Tuskers Kerala, complained that several requests put forth by it with regards to players and the number of matches were not accepted by the BCCI.
"Our first entry into IPL was thwarted in 2008 when we were disqualified, owing to a small technicality on the whims and fancies of BCCI. Yet our Bid was not opened," the statement said.
"Last year, Sahara entered the IPL on the basis of information in the media and everywhere else that 94 matches will be played among 10 teams. The bid price was accordingly calculated, but only 74 matches were played. We are still pursuing continuously with the BCCI to refund the extra bid money proportionately. It has been denied on the basis of strict rules.
"In the interest of the tournament, we repeatedly tried our best to pursue the BCCI for open auction of all players so that we achieve level playing field and all teams are equally balanced from the quality players' point of view. Again, as per BCCI's strict rules it was denied and again, we were deprived of natural justice. 12 of the best players were retained by the existing teams then," it added.
"The two new teams then requested for allowing us at least one extra foreign player but that too was denied, quoting rules."
Sahara's marquee player in the IPL is skipper Yuvraj Singh, who is currently recovering from tumour in the lungs.
His unavailability in the IPL this season prompted Sahara to ask the BCCI that the price of the batsman be added to their overall purse for the players auction but the request was turned down.
"Yuvraj Singh, who is truly like one of our family members, is, quite unfortunately, passing through a bad phase health wise, undergoing treatment for critical illness, overseas.
"Our duty is to take care of him, so Sahara has decided to pay him his full fee this year with condition as a Guardian that his priority should be health care and he should not play till he has fully recovered," the company stated.
"We requested the BCCI on the basis of the fact that we have only one Indian marquee player, that we be allowed to add price of Yuvraj Singh in our auction purse, during the February 4 auction because we had later taken Sourav Ganguly at 0.4 million.
"Again, we have been denied on the basis of the rule book. Yet again, a case of being denied natural justice. We think this peculiar situation of Shri Yuvraj Singh is silent in the rule book because it probably talks only about players who are temporarily injured."
Sahara is apparently also unhappy with the fact that Royal Challengers Bangalore were allowed to buy
2G: Dreams of outsourcing vendors like Tech Mahindra, Wipro turn sour?
MUMBAI: It is a dream turned bitter for many outsourcing vendors that signed deals with new telecom licensees hoping to replicate the phenomenal success of the IBM's outsourcing contract with Bharti Airtel, which grew into a multibillion dollar bagger for the firm.
With the Supreme Court order cancelling all licences issued after 2008, the future revenues that the outsourcing vendors were banking on to recover their initial investment and turn in big profits is now mostly just a dream.
Etisalat DB India has outsourcing contracts with Tech Mahindra that were estimated to grow to $400-500 million while Wipro has an outsourcing contract with Uninor estimated to grow to $500 million. Other than Wipro and Tech Mahindra, back office providers such as Firstsource Solutions, Spanco, Aegis and Intelenet Global Services have customer service contracts with the new telecom operators.
In 2004, telecom operator Bharti Airtel and multinational IBM inked a 10-year outsourcing deal that created business history by growing to $2.5 billion in five years. The deal also brought two more lucrative IT outsourcing contracts into IBM's kitty from Vodafone and Idea, and yet another from Bharti's Africa operations.
Wipro and Tech Mahindra, which were also in the fray in 2004, found the model too risky because it involved upfront investment from the IT vendor and revenues that were linked to subscriber growth. Several years later, hoping to replicate the same success Wipro and Tech Mahindra signed outsourcing contracts with Uninor and Etisalat DB, as did several back office providers.
Wipro's contract with Uninor was to be a showcase transformation project, helping it win global deals. On Thursday, most of these companies only issued brief statements saying they needed to assess the impact. Wipro's chief financial officer Suresh Senpaty said, "We have not studied the impact so it's early to comment on what will happen. Everyone is still trying to understand what this means."
A Tech Mahindra spokesperson said, "We are aware of this and are closely monitoring the development. At this point in time, we would not be able to offer any comment. Furthermore, as a policy, we do not comment on any details pertaining to client specific engagements."
However, people familiar with the fierce competition that went into winning some of these contracts said outsourcing firms had agreed to extremely risky clauses to bag them. For instance, the initial investment made by one of the outsourcing vendors was covered by a bank guarantee that was renewable every few months.
"The bet was the future revenue inflows would be sufficiently high to recover the costs and more," a senior industry professional requesting anonymity said. For business process outsourcing (BPO) firms that had customer service contracts for these circles, cancellation of the licences means even current revenue flows could be impacted.
The impact could vary depending on their exposure to the new telecom licences that were issued. Spanco, for instance, does work with Videocon. All of Videocon's licences, except for Punjab, have been cancelled. Intelenet and Aegis do work with Uninor and Firstsource does work with Idea in some of the affected circles. Both Firstsource and Aegis issued statements saying that the revenue impact would be less than 1%.
Fortunately for most of the BPO providers, they have large customer service contracts even with incumbents such as Vodafone, Bharti and Idea, which has 22 circles in all (nine have been cancelled). BPO contracts are typically covered by a minimum guarantee clause, which means customers have to mandatorily pay them for the minimum volume business even if it is not there.
The telecom sector, which was the largest or second largest business for most of these BPO players, it's a rude awakening. "They may now have to deploy these people in other projects. There could be a glut of people with telecom skills both in IT and BPO," said an industry executive requesting anonymity.
With the Supreme Court order cancelling all licences issued after 2008, the future revenues that the outsourcing vendors were banking on to recover their initial investment and turn in big profits is now mostly just a dream.
Etisalat DB India has outsourcing contracts with Tech Mahindra that were estimated to grow to $400-500 million while Wipro has an outsourcing contract with Uninor estimated to grow to $500 million. Other than Wipro and Tech Mahindra, back office providers such as Firstsource Solutions, Spanco, Aegis and Intelenet Global Services have customer service contracts with the new telecom operators.
In 2004, telecom operator Bharti Airtel and multinational IBM inked a 10-year outsourcing deal that created business history by growing to $2.5 billion in five years. The deal also brought two more lucrative IT outsourcing contracts into IBM's kitty from Vodafone and Idea, and yet another from Bharti's Africa operations.
Wipro and Tech Mahindra, which were also in the fray in 2004, found the model too risky because it involved upfront investment from the IT vendor and revenues that were linked to subscriber growth. Several years later, hoping to replicate the same success Wipro and Tech Mahindra signed outsourcing contracts with Uninor and Etisalat DB, as did several back office providers.
Wipro's contract with Uninor was to be a showcase transformation project, helping it win global deals. On Thursday, most of these companies only issued brief statements saying they needed to assess the impact. Wipro's chief financial officer Suresh Senpaty said, "We have not studied the impact so it's early to comment on what will happen. Everyone is still trying to understand what this means."
A Tech Mahindra spokesperson said, "We are aware of this and are closely monitoring the development. At this point in time, we would not be able to offer any comment. Furthermore, as a policy, we do not comment on any details pertaining to client specific engagements."
However, people familiar with the fierce competition that went into winning some of these contracts said outsourcing firms had agreed to extremely risky clauses to bag them. For instance, the initial investment made by one of the outsourcing vendors was covered by a bank guarantee that was renewable every few months.
"The bet was the future revenue inflows would be sufficiently high to recover the costs and more," a senior industry professional requesting anonymity said. For business process outsourcing (BPO) firms that had customer service contracts for these circles, cancellation of the licences means even current revenue flows could be impacted.
The impact could vary depending on their exposure to the new telecom licences that were issued. Spanco, for instance, does work with Videocon. All of Videocon's licences, except for Punjab, have been cancelled. Intelenet and Aegis do work with Uninor and Firstsource does work with Idea in some of the affected circles. Both Firstsource and Aegis issued statements saying that the revenue impact would be less than 1%.
Fortunately for most of the BPO providers, they have large customer service contracts even with incumbents such as Vodafone, Bharti and Idea, which has 22 circles in all (nine have been cancelled). BPO contracts are typically covered by a minimum guarantee clause, which means customers have to mandatorily pay them for the minimum volume business even if it is not there.
The telecom sector, which was the largest or second largest business for most of these BPO players, it's a rude awakening. "They may now have to deploy these people in other projects. There could be a glut of people with telecom skills both in IT and BPO," said an industry executive requesting anonymity.
Welspun Group's bid for Vizhinjam Port to be opened on Monday
The Kerala state government will open the bid submitted by the consortium led by Welspun group on Monday to decide the operator for the country's deepest port, when operational.
"The bids will be opened on Monday and the International Finance corporation will ascertain the bid. Then it would be sent to the empowered committee for final approval", said a senior officials of the port.
Welspun is the lone bidder for the project after Adani ports were rejected security clearance by the home ministry in January. In recent times, the cost of developing the port rose by as much as 60% due to escalating land and infrastructure costs.
The port, planned as a container transshipment hub with a capacity to handle 4.1 million TEUs a year, will be built on the landlord model, where the state government will set up the infrastructure and invite an operator to run the port.
While the Kerala government will raise Rs 800 crore through a bond issue, developer VizhinjamInternational has engaged SBI Caps to mop up Rs 800 crore from leading financial institutions such as HUDCO and LIC.
Besides, a consortium led by State Bank of Travancore will bring in Rs 300 crore while the state government has allowed a budgetary allocation of Rs 250 crore every year.
Until 2010, the state government made two unsuccessful attempts to develop the port and bids were invited for developing the entire port project.
In 2006, a consortium of infrastructure firms led by Mumbai-based Zoom developers and three Chinese companies were picked by the state to develop the port.
While the central government rejected Zoom's bid on security grounds, the state government later appointed Hyderabad-based Lanco Infratech to develop the port, but it withdrew from the project after Zoom filed a petition at the Supreme Court challenging the decision.
"The bids will be opened on Monday and the International Finance corporation will ascertain the bid. Then it would be sent to the empowered committee for final approval", said a senior officials of the port.
Welspun is the lone bidder for the project after Adani ports were rejected security clearance by the home ministry in January. In recent times, the cost of developing the port rose by as much as 60% due to escalating land and infrastructure costs.
The port, planned as a container transshipment hub with a capacity to handle 4.1 million TEUs a year, will be built on the landlord model, where the state government will set up the infrastructure and invite an operator to run the port.
While the Kerala government will raise Rs 800 crore through a bond issue, developer VizhinjamInternational has engaged SBI Caps to mop up Rs 800 crore from leading financial institutions such as HUDCO and LIC.
Besides, a consortium led by State Bank of Travancore will bring in Rs 300 crore while the state government has allowed a budgetary allocation of Rs 250 crore every year.
Until 2010, the state government made two unsuccessful attempts to develop the port and bids were invited for developing the entire port project.
In 2006, a consortium of infrastructure firms led by Mumbai-based Zoom developers and three Chinese companies were picked by the state to develop the port.
While the central government rejected Zoom's bid on security grounds, the state government later appointed Hyderabad-based Lanco Infratech to develop the port, but it withdrew from the project after Zoom filed a petition at the Supreme Court challenging the decision.
Tuticorin Port gets new trans-shipment processing, gate module
TUTICORIN (TN): An electronic trans-shipment processing and gate module for movement of containers from the Tuticorin Port to container freight stations and an inland container depot were launched today by Customs Commissioner C Rajendran.
The launch was held on the occasion of the 50th year of the Customs Act, 1962, and International Customs Day.
Rajendran said the effort would reduce time during trans-shipment of containers and also help decongest traffic at the port. A fixed container scanner would be installed in 15 months to make the port a secured one, a port press release quoted him as having said.
Earlier, Collector Ashish Kumar, the chief guest, launched the web site of Tuticorin Customs House, thoothukudicustoms.in.
He said on average, four lakh containers of import and export cargo transited through the port. Until December, 2011, 3.16 lakh containers were moved, he said.
About 91 per cent of import bills of entry and 99 per cent of shipping bills had been processed electronically by the Customs Department, he said.
Tuticorin Customs has collected Rs 2,042 crore till January, 2012, a 9.5 per cent growth compared to last year. During the year, Rs 965 crore was granted as duty drawback and Rs 62 crore as refunds, he said.
A series of interactive sessions and open houses with the Customs House Agents Association, container freight station operators, shipping house agents and terminal operators were organised to address the problems of importers, exporters and service providers, he added.
The launch was held on the occasion of the 50th year of the Customs Act, 1962, and International Customs Day.
Rajendran said the effort would reduce time during trans-shipment of containers and also help decongest traffic at the port. A fixed container scanner would be installed in 15 months to make the port a secured one, a port press release quoted him as having said.
Earlier, Collector Ashish Kumar, the chief guest, launched the web site of Tuticorin Customs House, thoothukudicustoms.in.
He said on average, four lakh containers of import and export cargo transited through the port. Until December, 2011, 3.16 lakh containers were moved, he said.
About 91 per cent of import bills of entry and 99 per cent of shipping bills had been processed electronically by the Customs Department, he said.
Tuticorin Customs has collected Rs 2,042 crore till January, 2012, a 9.5 per cent growth compared to last year. During the year, Rs 965 crore was granted as duty drawback and Rs 62 crore as refunds, he said.
A series of interactive sessions and open houses with the Customs House Agents Association, container freight station operators, shipping house agents and terminal operators were organised to address the problems of importers, exporters and service providers, he added.
Dinesh Trivedi meets PM, seeks fund for railway modernisation plan
Ahead of rail budget, Railway Minister Dinesh Trivedi today met Prime Minister Manmohan Singh seeking adequate financial support for the modernisation of the national transporter.
Trivedi had prepared a blueprint for railways modernisation plan envisaging Rs 14 lakh crore investment in the next 10 years which include automation of signalling system, strengthening of the track and installation of safety device to prevent accident.
"He explained to the PM about the dire need of modernisation of railways and submitted the blueprint to him," said sources in railways.
Currently, railways is facing financial crunch and many of its projects are being held up due to the crisis.
Trivedi emphasised on the need for a separate safety plan and sought a liberal grant from the general exchequer outside the rail budget, they said.
The safety plan involves speedy installation Train Protection warning System, upgradation of signal and telecommunication system and mechanised maintainance of tracks.
Besides, the ambitious safety plan also envisages induction of crash-worthy LHB coaches and locomotives as a long-term measure and elimination of unmanned level crossings to do away with mishaps on the tracks.
The last few years have seen minimal investment in the safety infrastructure due to poor financial health of the railways.
As per the safety plan, all electric locomotives are to be equipped with Vigilance Control Device (VCD) to prevent accidents in case the driver is incapacitated during the run.
So far, only 749 locomotives out of 4,147 electric ones have been equipped with VCDs.
There is growing concern about the maintenance of railways' vast network of tracks and the slow pace of installation of anti-collision devices and train protection warning systems.
The Railway Minister had said yesterday that "the present railway system has outlived its utility. We are in some kind of Victorian age as far as the railways are concerned. Signalling is archaic. We have to embark upon a new generation."
He had said there is a requirement of Rs 14 lakh crore for the next 10 years for modernisation of rail network which include automation of signalling system, strengthening of track and procurement of modern rolling stock
Trivedi had prepared a blueprint for railways modernisation plan envisaging Rs 14 lakh crore investment in the next 10 years which include automation of signalling system, strengthening of the track and installation of safety device to prevent accident.
"He explained to the PM about the dire need of modernisation of railways and submitted the blueprint to him," said sources in railways.
Currently, railways is facing financial crunch and many of its projects are being held up due to the crisis.
Trivedi emphasised on the need for a separate safety plan and sought a liberal grant from the general exchequer outside the rail budget, they said.
The safety plan involves speedy installation Train Protection warning System, upgradation of signal and telecommunication system and mechanised maintainance of tracks.
Besides, the ambitious safety plan also envisages induction of crash-worthy LHB coaches and locomotives as a long-term measure and elimination of unmanned level crossings to do away with mishaps on the tracks.
The last few years have seen minimal investment in the safety infrastructure due to poor financial health of the railways.
As per the safety plan, all electric locomotives are to be equipped with Vigilance Control Device (VCD) to prevent accidents in case the driver is incapacitated during the run.
So far, only 749 locomotives out of 4,147 electric ones have been equipped with VCDs.
There is growing concern about the maintenance of railways' vast network of tracks and the slow pace of installation of anti-collision devices and train protection warning systems.
The Railway Minister had said yesterday that "the present railway system has outlived its utility. We are in some kind of Victorian age as far as the railways are concerned. Signalling is archaic. We have to embark upon a new generation."
He had said there is a requirement of Rs 14 lakh crore for the next 10 years for modernisation of rail network which include automation of signalling system, strengthening of track and procurement of modern rolling stock
Telenor asks India to protect 'lawful' investment
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.
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.
Friday, February 3, 2012
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.
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