KOLKATA: Allahabad Bank will provideloans to farmers and rural artisans to buysolar off-grids made byEnviron Energy Corporation India Pvt Ltd. It has entered into an agreement with thesolar energy solution company on Tuesday to this end.
The Kolkata-based public sector bank will offer the loan at 5% under the government's capital subsidy-cum-refinance scheme for promotion of solar off-grid. Farmers, agricultural labourers, rural artisans, entrepreneurs and salaried persons are eligible to get a loan under the scheme.
To avail of the loan, borrowers are required to foot 20% of the cost of the project as margin while 30% is available as capital subsidy. Borrowers will also get a Rs 500 rebate from the solar company.
Success in my Habit
Tuesday, July 26, 2011
Shriram Transport Finance reports 20 pc jump in PAT
CHENNAI: Non-banking finance companyShriram Transport Finance, flagship company of theShriram Group, has reported a 20.1 per cent jump in its profit after tax at Rs 347.30 crore for the quarter ended June 30, 2011.
The Chennai-headquartered company had registered profit after tax (PAT) of Rs 288.94 crore in the same period of previous year, a company release said.
For the year ending March 31, 2011, the PAT stood at Rs Rs 1,229.8 crore, it added.
The total income for the quarter ended June 30, 2011, grew to Rs 1,393.22 crore as compared to Rs 1,233.51 crore, the release said.
For the financial year ended March 31, 2011, the total income stood at Rs 5,259.71 crore, it said.
A final dividend of Rs four per share for the financial year 2010-11, was approved by the shareholders and was paid on July 4, 2011, it added.
As of June 30, 2011, the total assets under management stood at Rs 36,997 crore compared to Rs 36,182 crore as on March 31, 2011.
The Chennai-headquartered company had registered profit after tax (PAT) of Rs 288.94 crore in the same period of previous year, a company release said.
For the year ending March 31, 2011, the PAT stood at Rs Rs 1,229.8 crore, it added.
The total income for the quarter ended June 30, 2011, grew to Rs 1,393.22 crore as compared to Rs 1,233.51 crore, the release said.
For the financial year ended March 31, 2011, the total income stood at Rs 5,259.71 crore, it said.
A final dividend of Rs four per share for the financial year 2010-11, was approved by the shareholders and was paid on July 4, 2011, it added.
As of June 30, 2011, the total assets under management stood at Rs 36,997 crore compared to Rs 36,182 crore as on March 31, 2011.
Apollo Tyres sets up Middle East hub in Dubai
DUBAI: India's leading tyre manufacturer, Apollo Tyres, has set up a new Middle East operations hub in Dubai, it has been announced here.
Apollo Tyres is the 18th firm to move to The Galleries' A-grade offices and retail facilities in Dubai's Jabel Ali this year and brings the number of international and local businesses currently based there or undergoing fit-out to almost 50.
More leasing contracts are in the pipeline and the potential is limitless, the developer of the project said in a statement.
Apollo Tyres joins China National Petroleum,Siemens, Arup, L'Oreal, Ericsson,Kraft Food, SPX Corporation and dozens of other firms at The Galleries, where 395,000 square feet -- over 50 per cent -- of the total available office space is now taken.
Satish Sharma, Apollo Tyres' Chief of Operations in India, said the Middle East currently accounts for almost a third of the company's revenues from tyre exports out of India and Dubai itself is the region's biggest tyre distribution hub.
"Our new office at The Galleries cements our commitment to Dubai -- where we also have a 10,000-square foot tyre storage facility -- and enables us to boost our business across the region by addressing the growing needs of our customers here," Sharma said.
Tenants at The Galleries get the option of a Free Zone licence, an onsite Metro station, nearly 2,000 underground parking spaces and dedicated facilities management and tenant relations teams.
Bahaa Abouhatab, Project Director at The Galleries, said: "The arrival of yet another leading international firm at The Galleries further highlights its position as one of the UAE's key business locations. Our growing Galleries community now has almost 50 tenants, with more on the way, and we are delighted to welcome Apollo Tyres on board."
The Galleries is less than an hour by car from Abu Dhabi and just 200 metres from the Jebel Ali Metro station. The development sits on 215,000 square feet of landscaped, communal grounds.
Apollo Tyres is the 18th firm to move to The Galleries' A-grade offices and retail facilities in Dubai's Jabel Ali this year and brings the number of international and local businesses currently based there or undergoing fit-out to almost 50.
More leasing contracts are in the pipeline and the potential is limitless, the developer of the project said in a statement.
Apollo Tyres joins China National Petroleum,Siemens, Arup, L'Oreal, Ericsson,Kraft Food, SPX Corporation and dozens of other firms at The Galleries, where 395,000 square feet -- over 50 per cent -- of the total available office space is now taken.
Satish Sharma, Apollo Tyres' Chief of Operations in India, said the Middle East currently accounts for almost a third of the company's revenues from tyre exports out of India and Dubai itself is the region's biggest tyre distribution hub.
"Our new office at The Galleries cements our commitment to Dubai -- where we also have a 10,000-square foot tyre storage facility -- and enables us to boost our business across the region by addressing the growing needs of our customers here," Sharma said.
Tenants at The Galleries get the option of a Free Zone licence, an onsite Metro station, nearly 2,000 underground parking spaces and dedicated facilities management and tenant relations teams.
Bahaa Abouhatab, Project Director at The Galleries, said: "The arrival of yet another leading international firm at The Galleries further highlights its position as one of the UAE's key business locations. Our growing Galleries community now has almost 50 tenants, with more on the way, and we are delighted to welcome Apollo Tyres on board."
The Galleries is less than an hour by car from Abu Dhabi and just 200 metres from the Jebel Ali Metro station. The development sits on 215,000 square feet of landscaped, communal grounds.
Michelin's India plant targets tyre roll out by Nov 2012
CHENNAI: French tyre-maker Michelin's upcoming India plant in Chennai will roll out its first tyre in November 2012. The company plans to produce three lakh radial truck tyres in the first year of operations, and cater to the domestic market, a top official said.
Michelin is setting up a manufacturing unit at Thervoy Khaidigia industrial area in Tiruvallur district, near Chennai, and would be investing Rs 4,000 crore over a seven-year period.
"The plant capacity would be 20 lakh radial truck tyres. It would provide direct employment to 1,500 people," said Nicolas Beaumont, Managing Director, Michelin India, who addressed the media here on Wednesday.
He noted that radialisation in the truck and bus segment was 14.5% in 2010, which could go up to 50% in 2020.
Michelin is setting up a manufacturing unit at Thervoy Khaidigia industrial area in Tiruvallur district, near Chennai, and would be investing Rs 4,000 crore over a seven-year period.
"The plant capacity would be 20 lakh radial truck tyres. It would provide direct employment to 1,500 people," said Nicolas Beaumont, Managing Director, Michelin India, who addressed the media here on Wednesday.
He noted that radialisation in the truck and bus segment was 14.5% in 2010, which could go up to 50% in 2020.
Honda Motorcycle, Bajaj Auto, TVS Motors dealers offering freebies with cash benefits
NEW DELHI: After a gap of more than four years, freebies are back in the two-wheeler market. Dealers are wooing customers with cash benefits and lower interest rates to get some traction on sales.
Although the two-wheeler market is still going strong with double-digit growth, a few bikes are facing the heat on declining customer interest and have joined the discount bogey.
For instance, sales ofHonda Motorcycle and Scooter India's premium 110cc bike, CB Twister, priced at an ex-showroom price of Rs 49,775 in Delhi, have been sluggish due to competiton from biggies like Hero Honda's Splendor that comes at a lower price of Rs 41,350.
Dealers are thus offering discounts of up to Rs 3,500 in select markets on the CB Twister.
"We are offering some benefits to reduce our stocks as the market has been slowing with retail sales getting impacting and cautious customers postponing their purchase decisions," a central Delhi-based Honda dealer said. The market has not been impacted much by rising fuel prices as by surging interest rates which have shot to over 22-24% in the past one year, rising by around 4%.
"The interest rates for two-wheelers has risen more compared to cars as the risk is high though the total value of vehicle is much lower. There are a few models where dealers are vying for customers attention by discounting rates," a top executive ofHDFC Bank said. The benefits are mainly coming from dealers as companies maintain that they have not initiated any freebies yet.
"The two-wheeler market is still going strong and we do not see any reason to offer any benefits now," said head of marketing atBajaj Auto, Milind Bade. However, the company's 100cc entry level bike, Discover, is being offered at 0% rate of interest. Analysts tracking the market say that discounts from dealers are precursor to what the company may offer in few months.
The dealers ofTVS Motors is luring customers with a few insurance and road tax benefits in certain markets on their 110 cc Star City bike with deal benefits of up to Rs 1500.
Although the two-wheeler market is still going strong with double-digit growth, a few bikes are facing the heat on declining customer interest and have joined the discount bogey.
For instance, sales ofHonda Motorcycle and Scooter India's premium 110cc bike, CB Twister, priced at an ex-showroom price of Rs 49,775 in Delhi, have been sluggish due to competiton from biggies like Hero Honda's Splendor that comes at a lower price of Rs 41,350.
Dealers are thus offering discounts of up to Rs 3,500 in select markets on the CB Twister.
"We are offering some benefits to reduce our stocks as the market has been slowing with retail sales getting impacting and cautious customers postponing their purchase decisions," a central Delhi-based Honda dealer said. The market has not been impacted much by rising fuel prices as by surging interest rates which have shot to over 22-24% in the past one year, rising by around 4%.
"The interest rates for two-wheelers has risen more compared to cars as the risk is high though the total value of vehicle is much lower. There are a few models where dealers are vying for customers attention by discounting rates," a top executive ofHDFC Bank said. The benefits are mainly coming from dealers as companies maintain that they have not initiated any freebies yet.
"The two-wheeler market is still going strong and we do not see any reason to offer any benefits now," said head of marketing atBajaj Auto, Milind Bade. However, the company's 100cc entry level bike, Discover, is being offered at 0% rate of interest. Analysts tracking the market say that discounts from dealers are precursor to what the company may offer in few months.
The dealers ofTVS Motors is luring customers with a few insurance and road tax benefits in certain markets on their 110 cc Star City bike with deal benefits of up to Rs 1500.
Hero Honda to reveal new brand identity in London on August 9
NEW DELHI: The country's largest two-wheeler maker HeroHonda will reveal its much-anticipated global brand identity inLondon on August 9, as it takes the first major step of establishing its new image after going solo following erstwhile Japanese promoter Honda's exit.
"...as a significant first step towards the company's transformation into a major global brand, we would be unveiling our new brand name and identity in London, United Kingdom, on August 9, 2011," the company said.
Earlier in March this year, the company had hired global brand and innovation specialistWolff Olins to create its new brand identity. A part of the Omnicom group, Wolff Olins was mandated to work on the new brand identity in its totality, including the brand architecture, name, logo and positioning.
Later on, in May the two-wheeler major roped in Law &Kenneth (L&K) as a creative partner to launch and establish the new brand for the company. The independent brand communications firm was mandated to devise the new brand positioning of the company.
Hero Honda said it will also unfold a slew of strategic initiatives "which will allow us to further consolidate our leadership in India and also enter emerging markets globally."
The company had embarked on the journey to acquire a new brand name after the two joint venture partners ofHero Honda Motors Ltd (HHML) --Hero Group of India andHonda Motor Co of Japan -- decided to part ways in December last year.
The Munjals-promoted Hero Group had agreed to buy out Honda's 26 per cent stake inHHML for Rs 3,841.83 crore.
As per an agreement signed between the two erstwhile partners, Hero can use the Honda brand till 2014, but it is understood that the Indian group wants to acquire a new identity of its own at the earliest in order to maintain its leadership position.
Hero Group and Honda had signed a new licensing agreement in March, under which the Indian firm will pay its Japanese counterpart 45 billion yen (about Rs 2,450 crore) till 2014.
"...as a significant first step towards the company's transformation into a major global brand, we would be unveiling our new brand name and identity in London, United Kingdom, on August 9, 2011," the company said.
Earlier in March this year, the company had hired global brand and innovation specialistWolff Olins to create its new brand identity. A part of the Omnicom group, Wolff Olins was mandated to work on the new brand identity in its totality, including the brand architecture, name, logo and positioning.
Later on, in May the two-wheeler major roped in Law &Kenneth (L&K) as a creative partner to launch and establish the new brand for the company. The independent brand communications firm was mandated to devise the new brand positioning of the company.
Hero Honda said it will also unfold a slew of strategic initiatives "which will allow us to further consolidate our leadership in India and also enter emerging markets globally."
The company had embarked on the journey to acquire a new brand name after the two joint venture partners ofHero Honda Motors Ltd (HHML) --Hero Group of India andHonda Motor Co of Japan -- decided to part ways in December last year.
The Munjals-promoted Hero Group had agreed to buy out Honda's 26 per cent stake inHHML for Rs 3,841.83 crore.
As per an agreement signed between the two erstwhile partners, Hero can use the Honda brand till 2014, but it is understood that the Indian group wants to acquire a new identity of its own at the earliest in order to maintain its leadership position.
Hero Group and Honda had signed a new licensing agreement in March, under which the Indian firm will pay its Japanese counterpart 45 billion yen (about Rs 2,450 crore) till 2014.
Maruti Suzuki India to invest Rs 3,000 cr in 2012-13 on capacity expansion, new model launches
NEW DELHI: The country's largest car makerMaruti Suzuki India on Tuesday said it will invest about Rs 3,000 crore in 2012-13 financial year on various areas, including expanding capacity and new model launches.
The company is at present investing about Rs 4,000 crore in this fiscal primarily on setting new assembly lines inside its Manesar facility, marketing, R&D and new model launches.
"For next fiscal, our capex plan is about Rs 3,000 crore. We will inevest on expanding capacities, new model launches, marketing activities and R&D," Maruti Suzuki India (MSI) Chief Financial OfficerAjay Seth told analyst in a conference call.
For this financial year, the company will put in about Rs 4,000 crore in various activities, he said, adding, one third of the amount could be carried over to the next fiscal.
The company is setting up two new plants inside Manesar with 2.5 lakh annual capacity each at a total investment of Rs 3,625 crore. The first of these two plants is likley to be operationalised during September-October this year, while the other one is scheduled to be operational in 2012-13.
MSI had rolled out nearly 9.5 lakh units from its Gurgaon facility and 3.5 lakh units from the existing Manesar plant in the 2010-11 financial year.
Besides, the company is also investing Rs 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak in Haryana.
The company spent 0.7 per cent of its net sales in R&D activities during April-June period this year as against 1.1 per cent in 2010-11, Seth said.
On account of spurt in demand of diesel cars, the company is increasing the production capacity of diesel cars to 2.9 lakh units annually from existing 2.4 lakh units. It sells diesel options of hatchbacks Swift and Ritz and sedans DZiRE and SX4.
"Diesel cars sales have increased to 60-80 per cent after de-regulation of petrol," Seth said, adding, they contributed 21 per cent to the total sales in first quarter compared to 19 per cent in the year-ago period.
The company will also ramp up the diesel engine capacity to 3 lakh units from 2.4 lakh units by the end of this fiscal. Diesel engines are produced by a separate entity --Suzuki Powertrain India Ltd -- at the Manesar facility.
Seth said the company's current import content stands at about 15 per cent, which MSI is planning to bring down by 2-3 per cent every year till next fiscal.
MSI today reported 18.02 per cent increase in net profit for the first quarter ended June 30 to Rs 549.23 crore from Rs 465.36 crore in the same quarter last fiscal.
Total income from operations during the quarter stood at Rs 8,529.30 crore as against Rs 8,309.18 crore in the same period last fiscal, an increase of 2.65 per cent.
The company is at present investing about Rs 4,000 crore in this fiscal primarily on setting new assembly lines inside its Manesar facility, marketing, R&D and new model launches.
"For next fiscal, our capex plan is about Rs 3,000 crore. We will inevest on expanding capacities, new model launches, marketing activities and R&D," Maruti Suzuki India (MSI) Chief Financial OfficerAjay Seth told analyst in a conference call.
For this financial year, the company will put in about Rs 4,000 crore in various activities, he said, adding, one third of the amount could be carried over to the next fiscal.
The company is setting up two new plants inside Manesar with 2.5 lakh annual capacity each at a total investment of Rs 3,625 crore. The first of these two plants is likley to be operationalised during September-October this year, while the other one is scheduled to be operational in 2012-13.
MSI had rolled out nearly 9.5 lakh units from its Gurgaon facility and 3.5 lakh units from the existing Manesar plant in the 2010-11 financial year.
Besides, the company is also investing Rs 2,500 crore for its K-series engine plant and setting up a dedicated R&D facility at Rohtak in Haryana.
The company spent 0.7 per cent of its net sales in R&D activities during April-June period this year as against 1.1 per cent in 2010-11, Seth said.
On account of spurt in demand of diesel cars, the company is increasing the production capacity of diesel cars to 2.9 lakh units annually from existing 2.4 lakh units. It sells diesel options of hatchbacks Swift and Ritz and sedans DZiRE and SX4.
"Diesel cars sales have increased to 60-80 per cent after de-regulation of petrol," Seth said, adding, they contributed 21 per cent to the total sales in first quarter compared to 19 per cent in the year-ago period.
The company will also ramp up the diesel engine capacity to 3 lakh units from 2.4 lakh units by the end of this fiscal. Diesel engines are produced by a separate entity --Suzuki Powertrain India Ltd -- at the Manesar facility.
Seth said the company's current import content stands at about 15 per cent, which MSI is planning to bring down by 2-3 per cent every year till next fiscal.
MSI today reported 18.02 per cent increase in net profit for the first quarter ended June 30 to Rs 549.23 crore from Rs 465.36 crore in the same quarter last fiscal.
Total income from operations during the quarter stood at Rs 8,529.30 crore as against Rs 8,309.18 crore in the same period last fiscal, an increase of 2.65 per cent.
Ford likely to locate second car manufacturing plant in Gujarat
AHMEDABAD:US carmaker Ford is likely to make an announcement on the setting up its secondcar manufacturing facility in Sanand taluka near here, official sources said on Tuesday.
Ford India's proposed site is likely to be next to Tata Nano's plant in Sanand. The company currently has a manufacturing facility at Chennai.
"Ford has been in discussion with the government to set up its second car manufacturing plant at an investment of nearly Rs 5,000 crore. It has decided on a 400 acres of land at Sanand for the facility," the state government officials told PTI.
The District Collector of Ahmedabad is in the process of earmarking 400 acres of land in Sanand, nearly 40 km from here, for Ford India, they said.
In reply to a query on announcement of manufacturing facility in Gujarat,Ford India in a statement said, "As part of our plan to introduce eight new products by the middle of the decade, Ford is expanding its capacities at its existing facility in Tamil Nadu as well as exploring other options."
In August last year, Ford had announced to launch eight new models in India by 2015 in a bid to tap the burgeoning domestic car market.
The introduction of the new vehicles would be part of the company's plan to bring more products from its global portfolio and other Asia Pacific and African markets.
The company has already invested USD 500 million to expand production capacity to two lakh units annually at its Chennai facility. It also has an engine manufacturing plant with an installed annual production capacity of 2.5 lakh units.
Ford India's proposed site is likely to be next to Tata Nano's plant in Sanand. The company currently has a manufacturing facility at Chennai.
"Ford has been in discussion with the government to set up its second car manufacturing plant at an investment of nearly Rs 5,000 crore. It has decided on a 400 acres of land at Sanand for the facility," the state government officials told PTI.
The District Collector of Ahmedabad is in the process of earmarking 400 acres of land in Sanand, nearly 40 km from here, for Ford India, they said.
In reply to a query on announcement of manufacturing facility in Gujarat,Ford India in a statement said, "As part of our plan to introduce eight new products by the middle of the decade, Ford is expanding its capacities at its existing facility in Tamil Nadu as well as exploring other options."
In August last year, Ford had announced to launch eight new models in India by 2015 in a bid to tap the burgeoning domestic car market.
The introduction of the new vehicles would be part of the company's plan to bring more products from its global portfolio and other Asia Pacific and African markets.
The company has already invested USD 500 million to expand production capacity to two lakh units annually at its Chennai facility. It also has an engine manufacturing plant with an installed annual production capacity of 2.5 lakh units.
Anshu Jain first non-European to head Deutsche Bank; becomes most powerful banker in Eurozone's largest economy
LONDON: Usually, when banks announce succession plans, a handful of Wall Street analysts sit up and pay attention.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
Anshu Jain first non-European to head Deutsche Bank; becomes most powerful banker in Eurozone's largest economy
LONDON: Usually, when banks announce succession plans, a handful of Wall Street analysts sit up and pay attention.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
But whenDeutsche Bank announced early on Tuesday thatAnshu Jain and Juergen Fitschen would become co-CEOs, with current chief executiveJoseph Ackerman taking over as chairman of the board, it came at the end of months, even years, of intense debate around the world, polarising opinion across cultural and national boundaries, between Wall Street and high street.
Anshu Jain becomes the first non-European to head up DB, and the first Indian among a handful of non-Europeans to head any large, listed European firm.
As head of Deutsche Bank, he becomes, simply, the mostpowerful banker in the Eurozone's largest economy. Jain is no stranger to power. The Jaipur-born, America-trained Jain is the darling of Wall Street, the City of London and DB's shareholders. He's got an enormous power base and is considered the best banker who's not a CEO in London, and one of the most influential globally.
It's no wonder that over the past few months, Jain has kept a low profile, shunning public appearances or media interviews, and quietly focused on keeping the profit counters ringing. During the time he has started to learn German.
It's widely understood that Jain will actually run the bank while Juergen Fitschen, who handles DB's German operations, will handle the political and corporate schmoozing, as well as DB's staff unions. Deutsche has a history of joint CEOs, a management system that hasn't worked well in other global companies. In this case though, Fitschen, who said he couldn't ask for a better partner than Jain, is due to retire in three years. The move is seen as giving Jain, 48, time to make himself acceptable to the natives.
Sections of the German media hailed Jain's appointment as proof that Germany is not, as is often portrayed by the US media, insular or anti-multicultural, or that theGerman government would have any problems with him.
Jain's middle-class origins and his record of hard work and academic brilliance seem to strike a chord with the Germans. Deutsche's supervisory board, which has struggled with the succession issue for years, had a peculiar problem.
On the one hand, it had the indisputably brilliant Jain. His credentials include catapulting DB from a stodgy German bank into the top global league tables in the 16 years he has slowly worked his way to the top. He's also delivered, year on year, the major chunk of the bank's profits, and managed to steer it safely, if not unscathed, through the financial crisis of 2008.
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