France to introduce 'Google tax' from Jan 1

France will introduce its so-called " Google tax" on online advertisements Jan 1, parliament decided.

The tax on companies based in France would be amount to one per cent of the net amount spent on online advertising .

The measure was dubbed "Google tax" because it was originally conceived as a direct tax on the search engine and its competitors.

The parliamentary commission has for some time been working on a deal for the 2011 national budget, which has already been approved by the two houses of parliament.

A compromise was reached after considerable changes to the bill, which still has to be formally approved. It appears unlikely that the draft legislation will be overturned.

At the beginning of the year, President Nicolas Sarkozy called for additional tax on Google and its competitors.

Read more: France to introduce 'Google tax' from Jan 1 - The Times of India http://timesofindia.indiatimes.com/tech/news/internet/France-to-introduce-Google-tax-from-Jan-1/articleshow/7099328.cms#ixzz18A3XBlgj

Hyundai's small car 'well on course'

Hyundai Motor India (HMI), the country's second largest car maker, on Thursday said its plan for launching a small car in the Indian auto-market was "well on course".
The Korean company which has presence in the A segment with flagship hatchback Santro and the i10 has been planning to launch the small car to compete with Maruti Suzuki's Alto. The development of the small car has been taken up at the research & development centre in Korea.
"It is on course... The development is going on in (South) Korea....", HMI director (sales and marketing) Arvind Saxena said.
He said the company was "well progressing" on the launch of the car and it was going on "as per plan". However, he declined to comment on the timeline set for its launch.
The proposed small car would be positioned below the company's existing flagship model, Santro, and compete with the Alto from Maruti Suzuki. Alto is the largest selling model in India with average sales of over 20,000 units per month.
On their future plans, HMI CEO HW Park said the company was working on a strategy to launch new models every two years. "We will introduce two or three models in the next one year...," he said.
He said their premium SUV (Sports Utility Vehicle) Santa Fe would be launched in India next month.
On export front, Saxena said the company would witness a "minimal dip" this year in the overseas sales due to the slump witnessed in majority of the markets.
"Last year, 2.60 lakh units were exported (to various markets).. this year we are expecting it to be around 2.50 lakh units", he said.
Saxena and Park were here to introduce the company's upgraded hatchback Next Gen i10 in the Tamil Nadu market.
The company has spent around Rs. 400 crore for upgradation of the car which boasts aggressive and all-new front design, a new chrome raidator grill, 3D wraparound headlamps with multi-reflector chrome surround fog lamps.
The 1.1-litre iRDE2 Next Gen i 10 comes with a introductory price tag of Rs. 3.48 lakh (Ex-showroom Chennai) while the 1.2 litre Kappa engine is offered at Rs. 4.14 lakh,he added.
Hyundai Motor India currently has two manufacturing facilities at Sriperumbudur near here. Besides i10, the company retails Santro, mid-size sedan Accent Executive, premium sedan Verna Transform, luxury sedan Sonata.
The company exports to nearly 110 countries and this year it would be increased to 118 countries, they said.

Read more at: http://profit.ndtv.com/news/show/hyundai-s-small-car-well-on-course-101224?cp

IPO flood

Changed focus!!

Market Scope

Gold scales new peak of $1,278 an ounce in overseas markets

New York: Gold prices extended gains to set a new record high level of over 1,278 dollar an ounce in overseas markets o Thursday as investors looked for a store of value amid uncertainty over the global economic growth.
   
The metal surged by 10.25 dollars to 1,278.30 dollars an ounce in London and New York as investors sought protection against turmoil in the global economy and financial markets.

The metal, which had been on a record setting journey this week, surged on rising demand among investors as a safe haven and hedge against inflation.

A weak trend in equity markets and dollar falling to five-week low against the euro, forced investors to park their funds in bullion.

Bullion has gained as the MSCI World equities Index fell 0.9 per cent this year. The silver prices also remained on bull run and reached a level last seen on March 2008.

Likewise, silver prices added 0.9 percent to 20.76 dollars an ounce, the highest price since March 2008

Alcatel Lucent sees India, China 4G coming soon

Telecoms equipment maker Alcatel Lucent said some telecoms carriers 
in China and India could put out bids for building of 4G trial 
networks as early as year-end, as they rush to upgrade existing
networks or get into the wireless business.
China Mobile, the world's largest carrier by subscribers, 
has been letting some of the world's top equipment sellers, 
including the French-US firm, show off their 4G capabilities at 
the Shanghai Expo that began in May and runs through the end of October.

"The calendar is we hope by year-end the trial networks will be announced, 
and partners selected and trials will start," Rajeev Singh-Morales, 
Asia Pacific president of Alcatel Lucent, told Reuters in an interview 
at the World Economic Forum on Monday.
"It's fair to say they've been in discussions with us. 
Everyone knows this trial is coming," he said.
At least two carriers in India, which only recently awarded licenses for 4G, 
also known as LTE, were also moving aggressively in the 4G space, he added.
One of those, Mukesh Ambani's Reliance Industries, is eager to get into the
industry to compete with established players, including Reliance Communications,
headed by his brother, Anil.
"Initially, (4G) trials could start in India much faster, possibly by year end,"
Singh-Morales said.
He added a number of carriers lookin at 4G are seriously considering 
TD-LTE, one of several variants of 4G being developed and promoted by China Mobile.
In particular, he said, companies that operate networks based on a high-speed 
wireless technology called WiMax would be most suitable for the Chinese 
homegrown standard, which China is actively promoting as it tries to 
gain a place alongside more widely accepted standards developed in the
United States and Europe."(The Indian carriers) are certainly actively considering
TD-LTE," he said. "Anyone that has deployed WiMax and wants to go 
to LTE would consider that ... a number of customers in Japan, Indonesia and even the U.S."
Separately, Singh-Morales said India was currently in public consultation with 
telecoms equipment makers over draft new rules designed to ease Delhi's concerns
over network security. The equipment makers worry that the rules as first 
introduced would be difficult for them to implement, and are hoping to reach 
a middle ground with the government.
"There's a two-month consultation period, and then they will issue revised 
regulations," he said. "I'm confident we'll find a reasonable compromise."

GSKCH to invest over Rs 300 cr on 'Horlicks' relaunch

New Delhi: GlaxoSmithKline Consumer Healthcare today said it is looking at investing over Rs 300 crore on a major brand building exercise to position 'Horlicks' as an umbrella brand of the company.
   
As part of the exercise, the FMCG firm is relaunching 'Horlicks' in a new look and promote the brand across media particularly focused on digital and mobile marketing space.
   
Besides, the company, which is aiming to achieve a sales of Rs 300 crore within the next two years from its foods business, is looking at foraying into other categories like breakfast and mid-meals.
   
"There is a fundamental shift towards synergising all our marketing activities on 'Horlicks' and bring under one platform. The idea is to position it as a range of health foods and beverage brand rather than just a health drinks brand," GSK Consumers Healthcare Executive Vice President (Marketing) Subhajit Sen told reporter here.
   
Under Horlicks, the company currently sells various health drinks like Lite Horlicks, Women's Horlicks, Junior Horlicks apart from  biscuits and cereal bars. It has also recently entered into the noodles market through 'Foodles'.
   
"We will be spending around Rs one crore every day on various advertising and promotional activities. This is an increased adspend by around 15-20 percent over last year," Sen said.
   
The company had last time relaunched Horlicks in 2005 and since then achieved a volume sales of 12 percent. Sen said the company hopes to maintain similar growth rate of 12-14 percent on the back of the relaunch.
   
"We will be engaging in a lot of above the line and below the line activities. We will go for sponsorships deals as a single brand rather than in a segmented way that we have been doing," Sen said.
    
Besides, the company said it is also planning to expand the product portfolio of the estimated Rs 1700-crore Horlicks brand, particularly into the foods segment.
   
"Foods segment is a major focused area for us. At present around 10-15 percent comes from food division. In the next 18-24 months, we expect a sales of Rs 300 crore from our food business," he said.
   
At present, GSKCH sells biscuits, noodles and cereal bars under the food category and accounts up to Rs 200 crore to the company's overall sales.
   
"We are focusing on expanding the brand into non-lunch and non-dinner like for breakfast, lunch box for kids, travelers and other mid-meals. We are evaluating every category," he said.
   
While he did not specify the time frame that the company is looking at launching the products, he said some of the new products will be introduced this year.

Sensex zooms 409 pts; regains 19,000 level after 32 months

Mumbai: The BSE benchmark Sensex Monday zoomed by more than 408 points to cross the 19,000-level for the first time in 32 months on aggressive buying across banking, energy and realty sectors, sparked by robust factory output in July.
Extending its gains for the fifth successive session, the 30-share benchmark of the Bombay Stock Exchange surged by 408.67 points, or 2.17 percent, to 19,208.33 -- its best close since January 17, 2008, when the Sensex closed at 19,700.
Stretching last week's solid gains, the National Stock Exchange's wide-based 50-share Nifty index ended 2.13 percent higher at 5,760.
Analysts said that markets will scale new heights in the coming days on sustained inflows of overseas funds.
"The Indian equities would continue to be sweet spot and continue to gradually move upwards," Angel Broking CMD Dinesh Thakkar said.
Monday's rally was led by SBI, Reliance Industries, ICICI Bank, HDFC, Hindalco and R-Infra, which attracted hectic buying. Led by banking, oil & gas, realty and metal stocks, all the sectoral indices of the BSE ended with gains.
"Strong index of industrial production (IIP) numbers fired the Sensex, which inched up to cross the 19,000-mark, its highest (close) in almost last three years," Thakkar said.
Industrial growth accelerated to 13.8 percent in July from 7.2 percent in the corresponding month last year on the back of a 63 percent jump in capital goods production. Among the main industry segments, manufacturing activity expanded by 15 percent from 7.4 percent a year ago.
Reliance Industries Ltd, which holds the maximum weight in the Sensex, bounced back smartly and ended with a net gain of 3.58 percent at Rs 992.20. In the previous session, the scrip had ended 0.22 percent lower.
State Bank of India stole the show and was the top gainer in the Sensex pack. The scrip ended 5.5 percent higher. Other financial stocks were also in high demand.
HDFC zoomed 5.32 percent, ICICI Bank 4.43 percent and HDFC Bank 1.86 percent.
"Banks led from the front on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL vice-president (research) Amar Ambani said.
DLF climbed 3.42 percent, Hindalco 4.5 per cent, R-Infra 4.47 percent and Jaiprakash Associates 2.35 percent.

Other major gainers of the day included Infosys, which rose by 1.5 per cent, Tata Steel (up 1.34 percent) and L&T (up 1.12 percent).
Fuelled by the company's plans to make a joint bid with Petrovietnam for British Petroleum's (BP) Vietnam assets, ONGC ended 1.5 percent higher.
In the BSE-30 pack, 26 stocks ended with gains, while 4  scrips lagged behind and settled in the red.
Wipro led the losers pack and ended 1.27 percent lower, while RCom was down by 0.43 percent, Hero Honda by 0.28 percent and Bharti Airtel by 0.17 percent.

What EIH stake buy means for Reliance group

Reliance Industries Ltd (RIL) announced on Monday that it has acquired a 14.12% stake in EIH Ltd, through its wholly owned subsidiary Reliance Industries Investment and Holding Pvt. Ltd, from Oberoi Hotels Pvt. Ltd and certain other promoters of EIH. The deal is valued at Rs1,021 crore, valuing the hotel company at Rs7,230.87 crore.

With the acquisition valuing each EIH share at Rs184, substantially higher than its closing price of Rs135.20 on Friday, it’s no wonder that the scrip rose 11.5% on Monday in an otherwise tepid market. With the stock closing at around Rs150, it’s still some way off the price at which the deal has been done.

The Reliance management has said that it will support the EIH management. But if the deal is purely for investment, the question is: why should the Reliance group pay a premium for a company without getting control? It’s not as if the business is greatly undervalued—in a research note after EIH’s rather disappointing June quarter results, analysts from Edelweiss Securities Ltd maintained their target price of Rs120 a share.

This is not the first time that the EIH management has tried to find a white knight. With ITC holding 14.98% in the company and breathing down its neck, one can’t blame the EIH management. Earlier, it had tried to bring in Analjit Singh, but that deal fell through, reportedly on differences in valuation. This time, there was an additional reason for worry—when the new takeover code comes into effect, the threshold for an open offer would rise to 25%, and ITC could have taken the opportunity to increase its stake.

The EIH stock will now be in play on hopes that ITC will rise to the occasion and make an open offer. But with the kind of deep pockets that Reliance has, that is unlikely. Another trigger would be a possible increase in stake by the Reliance group. But even if we were to take the Reliance statement of the deal being merely for investment purposes at face value, the fact of the matter is that EIH’s promoters now have the cash to expand the business. After this deal, the EIH promoters’ stake will drop to 32.3%. But, if the EIH management acquires another 5%, as it can do through the creeping acquisition route, then collectively Reliance and EIH would own over 50%, a decisive majority. RIL’s acquisition of a stake in EIH at a substantial premium is a vote of confidence in the company and will impact the stock accordingly.

What about ITC’s shareholders? If ITC keeps its stake in the company, its shareholders will benefit from the fact that the stake is worth much more now and ITC could sell it at a later date. So, while ITC may have lost an opportunity to make a significant acquisition, it may on the whole be marginally positive.

The big question, though, is what it means to the Reliance group.

RIL’s entry into the hotel business is a completely unrelated diversification, although Rs1,021 crore is loose change for the company. It’s getting into telecom and has made known its intentions to get into power. But while the power business may not be difficult, given RIL’s project management skills, the hotels business is completely different. It would be a good thing, therefore, for RIL to allow the Oberois to manage the business, rather than take it over.

Clearly, RIL has an enviable problem of not knowing what to do with its excess cash. Handing it over to its shareholders may be a good idea, but it’s unlikely to happen.

Alibaba.com sees US,India,Japan as key markets

Hangzhou, China: China’s largest e-commerce company, Alibaba.com, views the United States, Japan and India as its three key overseas markets for global expansion, its chief executive said on Friday.

Alibaba.com is the listed unit of Alibaba Group, in which US search engine Yahoo Inc owns a 40% stake. The firm runs an online platform that connects thousands of sellers in China with buyers overseas.

“Those are the three countries outside China that are critical to Alibaba.com’s success,” David Wei told Reuters in an interview in Hangzhou, where the company is based.

Wei said that Alibaba.com was targeting those three countries because all three are important to the company’s core base of sellers in China.

Alibaba.com currently has about 2 million users in the United States and 1.5 million users in India.

“Investment in the countries is to further improve our presence in China,” Wei said. “If we have to make an investment ... there is no limit on the investment. If we need a big investment, we can always finance it.”

Last month, Alibaba.com reported its strongest quarterly profit in two years. The firm had $1.15 billion in cash and bank balances.

To grow in those markets Alibaba would use partnerships, acquisitions and organic growth, Wei said.

Last month, Alibaba.com made its second US acquisition this year buying Auctiva, a site that provides listing and marketing tools. The firm had bought e-commerce platform Vendio earlier in the year.

Alibaba.com said last month it was keen on more acquisitions to add technology or already proven commercial applications to the firm’s lineup and had more deals in the pipeline.

To tap into India, the company is preparing to invest in opening a customer service center that could eventually have up to 100 workers to serve Alibaba.com’s paying sellers there, now numbering around 5,000.

Web commerce in China has surged as buyers tap the Internet for better deals from more suppliers in the nation’s highly fragmented distribution networks.

Alibaba.com competes with Global Sources Ltd in China’s 1.6 billion yuan business-to-business (B2B) online marketplace industry. In the first quarter, Alibaba.com had 74% of the market by transaction value.

Strategy

Hyundai unveils its first electric car

Hyundai Motor, South Korea's No.1 carmaker, unveiled its 
first pure electric car on Thursday, with a goal of commencing
mass production of the vehicles in 2012.

The "BlueOn," based on its i10 hatchback, will be powered
by batteries madeby SK Energy with a capacity of 16.4 
kilowatts per hour, Hyundai said in a statement, without 
disclosing prices for the vehicle.

The BlueOn can run 140 kilometres on a single charge
and features a maximum speed of 130 kilometres per
hour, it said.

Hyundai will produce and supply a small number of 
electric vehicles to government agencies this year and 
next before commencing sales to thegeneral public in
2012, by which it plans to manufacture 2,500 units, Hyundai said.

Hyundai said it was early too say in which markets the BlueOn 
would be launched first.

"We are taking a baby step. There is no infrastructure such as 
charging stations in Korea and many other countries,"
a spokesperson said.

There are a number of electric vehicles in the works
by other automakers, but their high cost and the limited
range are cited as the biggest hurdles for
their widespread adoption.

Japan's Mitsubishi Motors Corp was the first major car
maker to roll out pure electric cars. Its i-MiEV electric car
was introduced in Japan in August.

Nissan Motor Co plans to introduce a mass-market 
electric car in the United States in December. 
Ford will have an all-electric version of its 
Focus available in late 2011.

The government said on Thursday that South Korea 
plans replace 20 percent of the country's passenger 
cars with electric vehicles by 2020 with a goal
to lead the emerging market.

Food inflation accelerates to 11.47%

Food inflation went up to 11.47 per cent for the week ended August 28, on the back of increase in prices of cereals, fruits and milk.

This is the second consecutive week when food inflation has shown an upward trend, after a brief period of moderation in July and first half of August. Food inflation was 10.86 per cent during the previous week ending on August 21.

On a yearly basis, cereals prices rose by 5.07 per cent driven mainly by higher prices of pulses, rice and wheat compared to the same period last year.
While pulses became dearer by 13.44 per cent, prices of rice and wheat rose by 4.74 per cent and 7.04 per cent, respectively, during the week under review on yearly basis.

Among other food items, milk prices soared by 17.60 per cent during the week compared to the same period last year, while that of fruits went up by 10.34 per cent. Prices of vegetables, however, maintained a downslide in line with trends during the past few months.

While vegetables overall saw a decline of 9.38 per cent on an annual basis, potato became cheaper by over 50. Onion prices also slid by 10.32 per cent.
Food inflation has been in double-digit for most of the year, except a fortnight in mid-July when it had plummeted to single digit level.

The overall inflation, which also includes rate of change in prices of manufactured goods, fell to single digit at 9.97 per cent in July after a gap of five months. The figures for August will be released later this week.

Read more at: http://profit.ndtv.com/news/show/food-inflation-accelerates-to-11-47-97105?cp

Goldman Sachs fined $27 million in UK

Britain's financial regulator has hit Goldman Sachs International with a 17.5 million pounds (US$27 million) fine for failing to notify U.K. authorities about an investigation in the United States.

It was the second-largest fine ever imposed by the Financial Services Authority, eclipsed only by the 33.32 million pounds fine announced in June against J.P. Morgan Securities Ltd. for mishandling clients' funds.

The British agency's investigation began in April after the U.S. Securities and Exchange Commission filed civil fraud charges against Goldman Sachs for allegedly misleading buyers of complex mortgage-related investments in 2007. Goldman settled the charges in mid-July by agreeing to pay US$550 million — the largest penalty against a Wall Street firm in the SEC's history.

Read more at: http://profit.ndtv.com/news/show/goldman-sachs-fined-27-million-in-uk-97196?cp

Sensex surges to 32-month high

A benchmark index for Indian equities jumped 133 points Thursday to touch the highest level in over two-and-a-half years as a rebound in Asian stocks boosted sentiments at the markets.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) jumped 0.71 percent or 132.95 points to 18,799.66 points, the highest closing level since Jan 2008.

The country's benchmark index closed in the positive for the fourth successive day. The index has gained 3.08 percent or 561 points in the last one week.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty advanced 0.57 percent or 32.20 points at 5,640.05 points.

Of the 30 stocks trading in the Sensex, 18 advanced while 12 declined. The major gainers on the Sensex were Mahindra and Mahindra, up 3.16 percent at 655.40, SBI, up 3.05 percent at 2,982.50, HDFC Bank, up 2.67 percent at 2,240.45 and ICICI Bank, up 2.48 percent at 1,050.75.

Major losers included Cipla, down 1.68 percent at 306.45, Tata Motors, down 1.58 percent at 1,015.50, Reliance Infra, down 1.30 percent at 1,009.90 and ACC, down 1.13 percent at 9,80.15.

Most Asian markets advanced with Japan's Nikkei rising 0.82 percent at 9,098. Hong Kong's Hang Seng closed 0.37 percent higher at 21,167.

However, the Chinese Shanghai Composite index fell 1.44 percent to close at 2,656 points.

The European bourses opened in the positive. The FTSE 100 was trading 0.77 percent higher at 5,471 points.

The German DAX was ruling 0.46 percent up at 6,192 points and the French CAC 40 was trading 0.61 percent higher at 3,699 points

Record car sales in August

Monthly car sales in India zoomed to an all-time high in August, the Society of Indian Automobile Manufacturers (SIAM) reported Thursday. Sales in the past month climbed 33 percent to 160,794 cars from 120,681 a year earlier.

The August sales outshined July's record of 158,674 cars.

Earlier Maruti Suzuki, Hyundai, TATA and Ford had reported robust growth figures for the month of August, with Maruti touching an all time high sales rate of 23.6 percent at 104,791 vehicles as against the same period last year.

Lower borrowing rate new car launches and an expanding economy are said to be the reasons for the robust growth.

SIAM also reported a 32.38 percent cumulative growth in the Indian automobile industry which stood at 7,063,063 vehicles for April-August 2010 over the same period last year.

"Passenger cars grew by 34.32 percent, Utility Vehicles grew by 22.56 percent and Multi Purpose Vehicles (MPVs) grew by 50.68 percent in April-August 2010 over same period last year," said SIAM in a statement.

It said the commercial vehicles segment registered a growth of 44.75 percent in the period of April-August as compared to the same period last year.

"Medium & Heavy Commercial Vehicles (M&HCVs) registered growth at 65.91 percent and Light Commercial Vehicles grew at 29.68 percent," the statement said.

SIAM also reported a 20.15 percent of cumulative growth in the Three Wheelers segment. While in the passenger three- wheelers grew by 23.84 percent and goods carriers grew at 5.46 percent in the same period.

The Two wheelers segment also registered a 27.22 percent growth rate in the period, which included Scooters, Mopeds and Motorcycles at 44.45 percent, 24.18 percent and 24.41 percent respectively.

SIAM said the industry's exports in April-August grew at 48.42 percent.

India drops to 51st position in global competitiveness ranking

Geneva: India has slipped by two places to 51st in the World Economic Forum's global competitiveness rankings, while rival China has managed to improve its standing to 29th.

    

As per the WEF's Global Competitiveness Report 2010-11, released Thursday, Switzerland is No. 1 in the world in terms of its ability to provide the most competitive environment on several fronts.

Sweden, another technology powerhouse in Europe, ranks second, followed by Singapore and the United States, which both fell by two positions from their ranking last year. The African nation of Chad figures at the bottom of the list of 139 countries.

   

The global competitiveness rankings are viewed as a barometer of the business climate in 139 countries and mirror the assessments of leading businessmen on a range of political, social, and economic parameters.

     

Though Switzerland has "[state-supported] monopolies in key sectors, it maintains overall economic stability and largely open trade and investment policies," said Margareta Dryeniek Hanouz, senior economist and director of the WEF, who is also the co-author of the report.

    

India has been pushed down to 51st position from 49th due to its poor performance in a range of social sector areas such as education, health and infrastructure.

   

Though India has performed well in complex financial sector areas, attaining the 17th rank globally in terms of its financial markets, 44th in business sophistication and 39th in innovation, it has failed to improve the basic drivers of competitiveness, the report said.

   

"There are two Indias," said Thierry Geiger, an associate director at WEF, who also authored the report.

"While there is widespread poverty, poor health and education facilities and poor infrastructure in rural India, the other India is experiencing rapid growth," he said.

    

He praised China, which climbed up to 27th position from 29th last year, for making a dent in poverty and for improving overall access to education and health, suggesting that India is far from making a noticeable impact in these two areas.

    

Consequently, life expectancy is 10 years shorter in India as compared to China and Brazil.

Despite high economic growth, India continues to be plagued by budget deficits, high public debt and high inflation. In contrast, China has over USD 2 trillion in forex reserves and a sound macro-economic environment.

    

The WEF, which is a non-governmental organisation, is largely known for its annual Davos show of captains of industry and business and political leaders.

   

In the face of a growing economic crisis in the western world, the WEF has increasingly promoted "compassionate capitalism" as an economic model, analysts said.

Nissan India to export Micra from September

Nissan Motor India would commence shipping of its popular hatchback car 'Micra' to overseas markets this month, a top company official said on Wednesday.

"We will start shipping Micra models to overseas markets European, Middle East and African markets from our plant in Chennai from this month," Nissan Motor India Chairman and Managing Director Kiminobu Tokuyama said.

The company, which introduced the Micra in the Indian market in July, has received 3,600 bookings so far, he said, adding that their Chennai plant is serving as a global hub.

Nissan Motor India registered total sales of 1,249 units in August 2010. In the same month last year, it sold 22 units.

The company had earlier said it started nationwide sales of Micra on July 15 and has sold 928 units that month.

Nissan Motor India besides Micra currently retails luxury sedan Teana, premium SUV X-trail and sports car 370Z as completely built units in the country.

Tokuyama was here to take part in the two-day conference 'CONNECT 2010', organised by Confederation of Indian Industry (CII)

Read more at: http://profit.ndtv.com/news/show/nissan-india-to-export-micra-from-september-96789?cp

Akai enters mobile market with 10 new models

Akai India on Tuesday forayed into the Indian mobile market with the launch of ten new handsets with a price tag between Rs. 1,800 and Rs. 8,000.

The range will appeal to consumers across all segments, with a special focus on the youth, and are currently available across 8,000 retail outlets in the country. The company plans to ramp up the number of retail outlets to 20,000 by end-September, 2010, the company said in New Delhi.

The company will import the handsets from Akai's factory and from Europe.

"We have introduced a range of phones that will cater to the requirements of all segments of consumers across categories. We hope to become a prominent player in the Rs. 700 billion mobile handset market in the coming years," Akai India Managing Director Pranay Dhabhai said.

Asked about Akai's plans to enter other business verticals, Dhabhai said, "We are looking into other verticals like inverters, netbooks, accessories for mobile phones (and) fixed line wireless phones."

In the basic models, the company has offered features like a Dual Sim, long-lasting battery and large high resolution QVGA screen, while the high-end models include a full touch 3-D user interface, wi-fi, wireless FM with recording, compatibility with social networking sites and e-book compatibility.

The company will launch 3G models by the end of this year, Dhabhai said, adding that its handsets are undergoing trials.

On sales of the company's headsets, Dhabhai said, "Sales from next month, that is, October, are expected to be a lakh per month and by the end of first year of our operations, we expect to have 3 per cent of the total mobile market share."

Akai will make a significant initial investment for setting up the back-end infrastructure for its mobile models and will set up a Level 4 service centre in Gurgaon for repairing mobiles.

"In Gurgaon, we are looking for a centre to repair mobile chip with an investment of about Rs. 5 crore to Rs. 10 crore. It is in the planning stage. By early next year." Dhabhai added.

The company sees after-service as an area that is not focused on by local brands and has invested heavily in setting up a complete service network across India.

The company has 465 service centres across the length and breadth of the country, of which 218 service centres are dedicated for mobile phone back-up services, right from basic servicing to component level repairs.

Read more at: http://profit.ndtv.com/news/show/akai-enters-mobile-market-with-10-new-models-96175?cp

Employers upbeat over hiring in 2010: naukri.com

The majority of employers in the country anticipate the creation of new jobs in the coming months of this year, according to two surveys released on Tuesday.

Painting a robust hiring scenario in the country, two separate surveys by global staffing firm Manpower and job portal naukri.com showed that employers are planning to hire at a robust pace this year.

Manpower's Employment Outlook Survey stated that globally, India is the most optimistic in terms of recruitment intentions for the fourth quarter, after China and Taiwan.

Naukri.com, in its latest Hiring Outlook Survey, revealed a positive outlook for the second half this year, with 73 per cent of the more than 700 employers interviewed predicting the addition of new jobs.

About 55 per cent of the respondents expected replacement hiring, three per cent expected a freeze and 2 per cent even anticipate layoffs, the naukri survey stated.

"The job market remains robust in India as a result of strong domestic growth and recovery in key global markets. But employers in other countries are reporting strong hiring forecasts as well," Manpower India Managing Director Sanjay Pandit said.

India's net employment outlook -- an indicator of employers' hiring intentions -- stood at 38 per cent on a seasonally-adjusted basis for the next three months. For the third quarter, the outlook stood a little higher at 41 per cent, the Manpower survey stated.

The naukri.com survey revealed that across sectors, most recruiters pegged attrition levels at under 20 per cent, with the exception of IT-enabled services.

"Employers began recruiting at a steady pace in the first half of 2010 and confidence levels were high. The findings indicate sustainable new job opportunities in remainder of the year and job seekers can look forward to a favourable hiring environment," Info Edge Senior Vice-President - Marketing and Corporate Communications Sumeet Singh said.

In terms of sectors in India, the Manpower survey stated that public administration and education has the highest net employment outlook of 45 per cent, followed by services (40 per cent) and finance, insurance and real estate (34 per cent).

Transportation and utilities and the wholesale and retail trade sectors each have an outlook of 22 per cent, it added.

"Once you combine strong domestic hiring along with improved international opportunities, we see one of the best scenarios that Indian job seekers could have imagined," Pandit said.

Of the 36 countries surveyed by Manpower, 28 showed positive hiring trends for the next three months. As many as 5,395 employers in India participated in the survey.

For the fourth quarter, China has the highest outlook of 47 per cent, followed by Taiwan (40 per cent).

Interestingly, for the third quarter of 2010, India was the most optimistic when it came to hiring intentions.

Read more at: http://profit.ndtv.com/news/show/employers-upbeat-over-hiring-in-2010-naukri-com-96172?cp

Govt Plans IOC, ONGC Stake Sale In March Qtr

India is considering selling 10 per cent in Indian Oil Corp and 5 per cent in Oil and Natural Gas Corp in the March quarter, a deal that could fetch the government about $5.6 billion at current prices.

"The oil ministry has taken an in-principle decision, we have to go to the cabinet now," Oil Secretary S. Sundareshan told reporters on Monday.

The sales will be part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor.

The government expects to raise about $8.6 billion in the current fiscal year that ends next March through such sales.

Sundareshan said the oil ministry had also allowed refiner Indian Oil Corp to sell an additional 10 percent of the expanded share capital.

Asked if the share sale of the two firms would happen by the end of this fiscal, he said, "hopefully". The government owns 78.92 percent of Indian Oil Corp and 74.14 percent in ONGC.

At 0925 GMT, IOC's shares were trading at Rs 425.35 ($9.15) a piece and ONGC was at Rs 1350.5 a share.

Sundareshan also said the Asian Development Bank had written a letter seeking to exit from gas firm Petronet LNG.

Petronet was founded by state-run firms IOC, ONGC, Bharat Petroleum Corp and GAIL (India) that together own 50 percent stake.

"They (ADB) have made an offer in the past. They have said again. Their policy is to exit after a company is functioning," Sundareshan, who is also chairman of Petronet, said.

He said the state-run companies may not exercise their right of first refusal for the ADB holding.

"It is a private company. If they (state-run firms) raise the stake it will cease to be a private company," he said.

France's GDF Suez holds 10 percent and the Asian Development Bank (ADB) holds 5.2 per cent stake in Petronet while the balance 34.8 percent is held by the public.

ArcelorMittal, Indiabulls in JV talks for steel projects

ArcelorMittal, the world's largest steel-maker, is in discussions with Indiabulls Group to form a joint venture company for scouting and mining iron ore in Rajasthan and setting up a steel plant.

"The discussions are on (between ArcelorMittal and Indiabulls to form a JV company). ArcelorMittal is pitching for a majority stake in the JV company," a person in-the-know
of the development said.

"There are indications of iron ore in Rajasthan. It is a mineral-rich state. The JV company would seek to locate and develop it. Then, a steel plant would be developed in the state," the source said.

According to the source, the JV would be between an ArcelorMittal subsidiary or an investment arm of the Mittal family and an Indiabulls Group firm.

ArcelorMittal Chief Financial Officer Aditya Mittal is said to be the brains behind the proposed venture, which aims at tapping the market for steel in North India, where there is no integrated steel plant.

"Promoters of ArcelorMittal and Indiabulls share a good relationship and the new venture would further their partnership," the source added.

Through LNM India Internet Ventures, it is said that L N Mittal already holds an 8.79 per cent stake in Indiabulls Power, which is developing various power projects across the country.

State-owned SAIL has already discovered iron ore deposits in the desert state.

The proposed investment in the JV could not be immediately ascertained. An ArcelorMittal spokesperson did not revert to a query on the cost of the proposed venture.

ArcelorMittal had in July said it expects to start work on one of its proposed Rs. 1.3 lakh crore India projects in early 2011.

The world's largest steel-maker, accounting for 8 per cent of global production, announced plans to set up projects in Jharkhand in 2005 and in Orissa a year later. In June this year, it signed an MoU with the Karnataka government for a Rs. 30,000 crore steel project.

"We believe that in 2011, in one of the projects, we will break the ground, we don't know which one... It is our hope that it should be in the first quarter or the second quarter," ArcelorMittal Chairman and CEO L N Mittal had said.

The company is in the process of acquiring land for construction of a 12-MTPA steel plant in Jharkhand. The company has proposed a plant of similar size in Orissa.

The company has already been allocated iron ore mines in West Singhbhum district of Jharkhand, where it is awaiting clearances to mine more such deposits. However, it is facing regulatory hurdles and protests over land acquisition in the state. Most recently, it had to move out of the Khunti-Gumla area to a new site near Bokaro on account of such problems.

Last year, ArcelorMittal had entered into a co-promoter agreement with Uttam Galva to produce steel.

Read more at: http://profit.ndtv.com/news/show/arcelormittal-indiabulls-in-jv-talks-for-steel-projects-95586?cp

L&T Infra eyes 50% growth this fiscal

L&T Infrastructure Finance Co Ltd is eyeing a disbursal growth of 50 percent during the current financial year, a company official said.
   
Last fiscal, the company disbursed Rs 4,500 crore, chief executive of L&T Infra Suneet K Maheshwari said.
   
Maheshwari said the company Is not looking at any acquisition in specialised NBFC space since organic growth is stupendous.
   
"We do not need inorganic growth since organically we are growing by 50 percent," he told reporters here today.
   
Asked when L&T would enter the banking sector, he said the exact model to be followed for this purpose would become clear in a year or so.
   
Regarding fund raising, Maheshwari said external commercial borrowings (ECBs) is a viable option. "Fund raising will not be a problem", he said.

German carmaker Audi to enter used car business in India

After posting a growth of 66 per cent in the last six months, German luxury carmaker Audi is planning to enter the used car business by 2011 and is looking at adding more models to its portfolio.
The company sold 1,876 cars from January-August, 2010 against 1,128 units sold in the same period of the previous year. It expects to sell 2,700 units by the end of this year.
"Having successfully surpassed last year's annual sales performance, we are confident that this consistent growth, which Audi India has been witnessing through 2010 will help us achieve our goals for the year," Michael Perschke, head, Audi India, said.
The company will ramp up its output by 50 per cent in India to about 3,000 units next year.
Audi also said it will bring more models to the Indian market.
This includes the launch of luxury sedan A7, a new variant of A6, import a completely new version of A8 and a 4.2 litre TDI version of Q7.
The company currently assembles luxury sedans A4, A6 and sports utility vehicle Q5 at its Aurangabad facility

Audi India sales up 46% in August

New Delhi: Luxury car-maker Audi India on Friday reported a 46.20 percent jump in sales to 250 units in August, 2010.
   

The company had sold 171 units in the corresponding month last year, Audi India said in a statement.
   
During the January-August period, the company's sales soared by 66.31 percent to 1,876 units from 1,128 units in the year-ago period, it added.
   
The company had sold 1,658 units in the entire 2009.
   
"Having successfully surpassed last year's annual sales performance, we are confident that this consistent growth, which Audi India has been witnessing through 2010 will help us achieve our goals for the year," Audi India Head Michael Perschke said.
   
The company has set a target to sell 2,700 units in 2010.

HP wins 3PAR for $2.4 billion, Dell bows out

Hewlett-Packard won the bidding war to buy data storage company 3PAR Inc for $2.4 billion, after rival Dell Inc bowed out from a drawn-out bidding war on Thursday. HP raised its offer by $3 to $33 per share, beating Dell's latest $32-a-share offer and ending an exchange of bids that escalated to levels that many analysts said was too high. 

The deal values 3PAR at over eight times sales, and many analysts have said that was too high for a company that has barely ever made a profit since it was founded in 1999. Multiples above five are considered lofty in technology deals.

Hero Honda sets up SPV to buy Honda stake: Sources

Munjals—owners of two-wheeler maker Hero Honda have set up a special purpose vehicle (SPV) in order to acquire Japan's Honda Motor’s 26% stake, reports CNBC-TV18’s Kritika Saxena quoting sources.
Munjals would control the SPV with 51% stake while the balance will be with investors including private equities, who would get effective stake of 12%.
It is being learnt that Hero and private equity firm KKR are in talk to buy over 6% of the effective stake with the latter negotiating for a larger share.
While the Munjals prefer to limit investors in SPV to maximum two, it is being learnt that Blackstone, Carlyle, Clayton Dubilier & Rice (CD&R) and other PE players are all in talks. However investors remain apprehensive at the current valuations. “The current price is not discounting life after Honda exit. PEs see Rs 1,300-1,500 a share as a fair value post exit.”
Though the timeline for the transaction remains indefinite, sources say the exit is imminent. Both Honda and the Munjals denied the exit.
Defending the 48% market share Hero Honda enjoys in the two-wheeler segment would be a key concern post Honda’s exit. Also, lack of captive research and development is a big disadvantage for the company according to sources. However the company may save 2.5-3% of revenue as royalty to Honda.

US unemployment rate rises to 9.6% in August‎

The US unemployment rate has risen in August for the first time in four months as weak hiring by private employers wasn't enough to keep pace with a large increase in the number of people looking for work.

The Labor Department says companies added a net total 67,000 new jobs last month, down from July's upwardly revised total of 107,000. Wall Street analysts expected a smaller gain, according to Thomson Reuters.

Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. State and local governments shed 10,000 positions. The jobless rate rose to 9.6 percent from 9.5 percent in July.

More than a half-million Americans resumed their job searches in August, which drove up the jobless rate.

Read more at: http://profit.ndtv.com/news/show/us-unemployment-rate-rises-to-9-6-in-august-95287?cp

India's forex reserves swell by USD 293-million to 282.84 bn

After having declined for two consecutive weeks, country's foreign exchange reserves grew by $293-million to $282.84-billion from the week before's $282.55-billion.
Foreign currency assets, a major component of the country's foreign exchange reserves, grew $279-million to $256.65-billion for the week ended August 27 as against the previous week's $256.37-billion, the Reserve Bank of India (RBI) said in its weekly data released today.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies, such as the euro, sterling and yen, held in the reserves, the apex bank said.
Country's foreign exchange reserves had tanked by over $4.7-billon in the fortnight before due to import payments and changes in values of many currencies.
For the week ended August 27, gold reserves remained unchanged at $19.278-billion while country's Special Drawing Rights (SDRs) moved up marginally to $4.981-billion, up $10-million.
India's reserve position in the International Monetary Fund (IMF) also went up marginally by $4-million to $1.935-billion, the RBI data said.

Top Gainers

BSE: Top Gainers
Company Name	Price	% Change
GODREJCONSUM	400.95	7.03
BEML	1,134.30	6.87
RCF	86.35	5.30
BOSCH	6,302.75	5.26
CHAMBAL FERT	73.80	5.13

Food inflation up at 10.86 per cent in third week of Aug PTI

Annual food inflation rose marginally to 10.86 per cent for the week ended August 21, after the previous two-week decline, despite a fall in vegetables prices.
Food inflation had softened to 10.05 per cent for the week ended August 14 against 10.35 per cent in the previous week.
On a yearly basis, potato became cheaper by over 51 per cent, while vegetables overall saw a decline of 9.90 per cent. Onion prices also fell by 8.97 per cent, official data released today showed.
Cereal prices, however, rose by 6.76 per cent, driven mainly by higher prices of pulses, rice and wheat compared to the same period last year.
While pulses became dearer by over 14 per cent, prices of rice and wheat rose by 8.05 per cent and 7 per cent, respectively, during the week under review on yearly basis.
Among other food items, milk prices soared by 18.22 per cent, and fruits became dearer by 9.27 per cent during the week over the same period last year.
Food inflation has been in double digit for most of the year, except for a brief period in July when it fell to single digit.
The overall inflation, which also factors in the rate of change in prices of manufactured goods, fell to 9.97 per cent in July after a gap of five months

Ferrari recalls 458 Italia supercars after fires

Ferrari says it is recalling 1,248 of its 458 Italia supercars after reports of fires breaking out in five of the luxury vehicles in several countries.

The Italian carmaker on Thursday said it wants to replace an adhesive that in some circumstances can melt due to overheating and possibly ignite. Fires in the car that sells for euro 197,000 ($253,000) have been reported in California, Switzerland, China and France.

Ferrari spokesman Stefano Lai says the company will be asking the owners of 1,248 cars produced before July 2010 to bring them in to have the glue replaced with mechanical fasteners.

Read more at: http://profit.ndtv.com/news/show/ferrari-recalls-458-italia-supercars-after-fires-94766?cp

3G Capital to buy Burger King for $4 billion

Burger King agreed on Thursday to sell itself to the investment firm 3G Capital for about $4 billion, including the assumption of debt, marking the second time in eight years that the fast-food giant has taken itself private.

Under the terms of the deal, 3G Capital will pay $24 a share, a 46 percent premium to Burger King’s share price before reports emerged that the fast-food giant was in sales talks, through a tender offer.

The deal marks the continued ascendancy of Brazil as a big corporate player. Among 3G’s backers is the billionaire Jorge Paulo Lemann, who also serves on the board of Anheuser Busch InBev.
3G views Burger King as a turnaround opportunity, one that draws upon the operational expertise gained in its beer and retail investments.

“We have great respect for the Burger King brand and the strong business that management, the employees and the franchisees have built,” Alexandre Behring, a 3G managing partner, said in a statement. “The iconic Burger King brand, its solid franchisee network and great product offerings make this a perfect fit for 3G Capital, which has a strong track record of long-term investments in global consumer brands and retail companies.”

Burger King’s chairman and chief executive, John Chidsey, is expected to retain his current roles until the deal closes. After that, he will take on the title of co-chairman alongside Mr. Chidsey.

Burger King has struggled lately: Last week it forecast weak demand for its new fiscal year amid high unemployment in the United States and economic weakness in Europe. It also cautioned that uncertainty regarding the costs of wheat and beef could affect its results.

The fast-food giant was last taken private in 2002 by a trio of buyout firms — TPG Capital, Bain Capital and Goldman Sachs’s private equity unit — but since returning to the public markets in 2006, it has underperformed its biggest rival, McDonald’s. From its initial public offering until Tuesday, before reports of a potential sale emerged, Burger King has seen its shares fall about 6 percent, according to Standard & Poor’s. During the same time period, McDonald’s stock has climbed 111 percent.

Among 3G’s plans for the fast-food chain is building out the fast-food chain internationally. Burger King already has 93 restaurants in Brazil and plans to open about 500 new franchises in Latin America over the next five years, the company disclosed in a regulatory filing.

3G already has some experience in burgers and fries, having previously invested in Wendy’s.

3G expects to begin its tender offer no later than Sept. 17 and to close the deal in the fourth quarter this year. Burger King has the right to solicit higher offers through Oct. 12 under what is known as a “go-shop” period.

Burger King was advised by Morgan Stanley, Goldman Sachs and the law firms Skadden, Arps, Slate, Meagher & Flom and Holland & Knight. 3G was advised by Lazard, JPMorgan Chase, Barclays Capital and the law firm Kirkland & Ellis.

Read more at: http://profit.ndtv.com/news/show/3g-capital-to-buy-burger-king-for-4-billion-94768?cp

SAIL Shortlists JP Morgan, 5 Others For Sale

State-run Steel Authority of India Ltd has shortlisted Deutsche Bank, JP Morgan and four others to manage a share issue that may raise up to $1.7 billion, sources with direct knowledge said on Thursday.

Other bankers shortlisted by the largest domestic producer of the alloy are HSBC, SBI Capital, Enam Securities and Kotak Mahindra Capital, the sources, who could not be named as they were not authorised to speak to the media, said.

Officials at SAIL in New Delhi and the shortlisted banks were not immediately available for comment.

The government plans to sell 5 per cent in the company, while SAIL will issue new shares equal to 5 per cent of its existing share capital. The government owns about 86 per cent in the firm, which can produce 15 million tonnes of steel a year.

The sale is likely to be launched in January, the sources said.

A 10 per cent share sale would fetch about $1.7 billion, according to Reuters calculation based on the current market price. In April, India's cabinet approved a 20 per cent stake sale in the company in two tranches.

Shares in SAIL, with a market value of $16.5 billion, were trading up 1.8 per cent at 191.20 rupees at 11:44 a.m. (0614 GMT), while the BSE Sensex was up 0.5 per cent.

The stock is down about 21 per cent in the year to date against a 5 per cent rise in the benchmark.

Wipro Names Azim Premji's Son As CSO

Wipro Ltd has appointed billionaire founder-chairman Azim Premji's oldest son, who is widely seen as heir apparent, as chief strategy officer in a move that could touch off more restructuring at the company.

Harvard-educated 33-year-old Rishad Premji is currently general manager of treasury and investor relations at the third-largest outsourcer of IT services. He will take over from K.R. Lakshminarayana effective Jan. 1, 2011.

Lakshminarayana headed both strategy and M&A, but Rishad will only be in charge of strategy. Sridhar Srinivasan has been made the interim head of M&A.

"He was being groomed to take over at the top. This is just a step toward that," said Harit Shah, IT analyst with Karvy Stock Broking. "He has to earn his way up, it is a complex company."

Like his billionaire father known for living a modest life, Rishad flies economy class and drives his own Maruti SX-4 car. He is married to his childhood sweetheart and has two children.

His father, Azim Premji, took over his father's ailing vegetable oil business in the mid-1960s. He diversified into making hydraulic cylinders in the 1970s and struck out into information technology in 1980.

Wipro now makes consumer care and lighting products besides offering IT services and products.

Based in Bangalore, Wipro counts Citibank, Cisco, Credit Suisse and General Motors among its clients. The company posted a market topping rise in quarterly profit in July and said the deal pipeline in the United States, its biggest market, and Europe looked good.

The younger Premji has a management degree from Harvard Business School and joined Wipro in 2007 in the banking, financial services and insurance business. He had worked with GE Capital and Bain and Co earlier.

In contrast, Azim Premji had to quit Stanford University, his degree in engineering unfinished, to rush to the aid of his family's vegetable oil business following the death of his father in the mid-60s.

Azim Premji is the single largest shareholder in Wipro, owning close to 80 per cent of the company

US companies cut 10,000 jobs in August: Report

Private companies in the US slashed as many as 10,000 jobs in August, in yet another indication that economic recovery is faltering.

The ADP National Employment Report released on Thursday showed that the American private sector cut 10,000 jobs last month, with most of the industries reducing their head count.

Figures in the report does not include the temporary hiring made by the Federal government for census activities.

The report is maintained by Macroeconomic Advisers, LLC.

"The decline in private employment in August confirms a pause in the recovery already evident in other economic data... This month's decline in employment followed six monthly increases from February through July," Macroeconomic Advisers' Chairman Joel Prakken said.

Last month employment in goods manufacturing sector dropped by 40,000 in US. Construction and manufacturing industries saw the loss of 33,000 and 6,000 jobs, respectively

BSE: Top Gainers

BSE: Top Gainers
Company Name	Price	% Change
SUZLON	51.35	10.19
GUJ NRE COKE	60.90	7.60
IOB	133.80	6.53
ISPATINDUSTR	20.00	6.10
EXIDE INDS	156.60	6.03

237 million internet users in India by 2015: Report

India will see its number of internet users triple to 237 million from the current 81 million by 2015, according to a report.

In a study titled 'Internet's New Billion', the Boston Consulting Group said Brazil, Russia, India, China and Indonesia (BRICI) will have more than 1.2 billion internet users by 2015 - well over three times the number of internet users in Japan and the US combined.

In 2009, the BRICI countries had some 610 million Internet users.

"Internet penetration rates in the BRICI countries will experience compound annual growth of nine to 20 per cent from 2009-2015, driven predominantly by young users who will form the digital-market eco-systems that will be in place for generations to come," the management consulting firm said.

With BRICI countries constituting many of the world's most populous nations, "it may come as little surprise that their digital-consumer ranks will swell so quickly," the report added.

Describing India as a "low-maturity and high growth market", BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the current seven per cent.

"There are currently about 81 million Internet users in India'a number that will nearly triple by around 2015 to 237 million," the report said.

India's Internet use is concentrated mainly in the larger cities, where many users are migrants from smaller towns. This group tends to have had limited exposure to the internet and therefore typically has a narrower range of online needs than more experienced users.

"Offsetting this situation is the prevalence of younger Indian users," the report said. Indian Internet users spend only half an hour online each day, on average, the lowest rate among all the BRICI countries.

This average will increase to only 0.7 hour per day by 2015, leaving India still bringing up the rear among BRICI users in terms of daily time spent online.

"However, this is a conservative projection and that there could be some major surprises depending on how quickly pricing comes down and availability increases," it added.

Among the most prominent trends is that BRICI digital consumers are far more likely to be meeting their digital needs through mobile phones than through personal computers.

With PC penetration still quite low, mobile phones are cheaper and more convenient tools for both communicating and seeking out entertainment.

Bajaj Auto's August sales up 55 per cent at 3,29,364-units

Two-wheeler manufacturer, Bajaj Auto, on Thursday said that it has clocked an all-time high monthly sales of 3,29,364 units in August, a 55 per cent jump over the same month last year.

The company's total sales in August 2009 stood at 2,13,072 units.

Bajaj Auto's motor-cycles sales in August witnessed a 59 per cent increase at 2,98,176 units, compared to 1,82,441 units in the year ago-period, it said.

The company has sold the highest number of its Pulsar and Discover bikes last month, it added.

The company's three-wheeler sales in August 2010, stood at 40,188 units, up 34 per cent over 30,021 units of the same month in 2009.

Bajaj Auto said exports of both its two-and-three-wheelers during the month rose 31 per cent at 98,578 units, as against 75,164 units in the same month in 2009.

Tata Motors to re-open Nano bookings in Sept

After a wait of 16 months, Tata Motors dealerships are set to re-open bookings for the world's cheapest car, Nano, from the second week of September in order to cash in on the upcoming festive season.

However, for the diesel version of Nano, buyers have to wait for another eight months. Four Tata Nano dealerships in New Delhi have confirmed that bookings for the Nano will open from the second week of September.

"Even though there is no formal announcement we have already received the go-ahead for re-opening the bookings for the car.

The delivery will start from the first week of October.

We have already received many queries from customers who want to buy Nano before Diwali," a dealer in Central Delhi told Mail Today. However, until the company formally announces the opening of bookings, the financing option will remain limited.

Tata Motors had closed bookings for the Nano in April last year after receiving 2,06,703 orders. It had to stop bookings due to capacity constraints. The company has delivered 54,129 Nano cars since it started delivery in July last year.

Tata Motors spokesperson Debasis Ray said, "A formal announcement will be made in this regard." On the launch of the diesel version of Nano, Ray said, "The diesel version is far off. The launch will not happen this year at least."

However, an executive at Tata Motors' Sanand factory in Gujarat, who did not wish to be naed, said, "The testing of the diesel engine is almost complete but some changes are to be made in the version. But it will not go beyond May, 2011."

While the firm is making efforts to meet the rising demand for the car since bookings were closed over a year back, it is also preparing to take on competition. For instance, rival Maruti Suzuki has already launched K-10 and is working on a car priced at below Rs 2 lakh. Many new launches are slated for the upcoming festive season.

According to data from the Society of Indian Automobile Manufacturers (SIAM), Tata Motors sold 23,379 Nano cars during the April- July period, outperforming Maruti's sales of 8,586 M800 cars.

On June 2, Tata Motors opened a dedicated plant for the Nano in Sanand after its exit from Singur, West Bengal. Production is already rising at the Sanand plant and the firm is working on further capacity expansion. Capacity at the Sanand plant is expected to be increased to five lakh units per annum, by 2014.

No plans to sell stake in MCF, says Mallya

United Breweries Group Chairman Vijay Mallya today said the group has no plans to sell its stake in Mangalore Chemicals and Fertilisers (MCF).

"There are some media reports saying that I am selling and in advanced talks with Reliance Industries for selling stake in Mangalore Chemicals and Fertilisers. Neither I have met with them, nor holding talks," Mallya, also the Chairman of MCF, told PTI here.

Mallya, who called on Agriculture Minister Sharad Pawar today, said that MCF would make fresh investment to increase capacity in the fertiliser unit, the only one in Karnataka, but declined to divulge details.

The UB group holds 30.44 per cent stake in MCF.

When contacted, a RIL spokesperson said that the company would not comment on market speculation.

However, an industry source said that RIL is waiting for the government's renewed policy on urea, likely to be notified in the next 2-3 months, for venturing into the sector.

"Acquisition of stakes in a company like MCF would help RIL to get a strong foothold in the sector. It will certainly provide the Mukesh Ambani-owned firm a ready-made dealers' network, known brand and so on," the source, who prefers not to be quoted, said.

MCF had recorded Rs 2,081 crore revenue in 2009-10, down 16.21 per cent from Rs 2,484.73 crore in 2008-09. In 2002-03, net sales of the company stood at Rs 562.79 crore.

MCF's lone manufacturing facility is based at Panambur, near Mangalore city. The company has capacity to manufacture 2,17,800 tonnes of ammonia, 3,79,500 tonnes urea, and 2,55,500 tonnes phosphatic fertilisers, 33,000 tonnes sulphuric acid and 15,330 tonnes ammonium bi-carbonate annually.

MCF's wholly-owned subsidiary MCF International provides consultancy and plant management services.

Sensex surge on better growth concerns, higher export

The Bombay Stock Exchange benchmark Sensex gained 235 points to a one-month high on Wednesday on heavy buying by funds influenced by strong GDP growth of the Indian economy and rising exports amid firming global cues.

The Sensex shot up by 234.75 points, or 1.31 per cent, to 18,205.87, translating into its highest gain in 10 weeks to a level last seen on August 4, led by a rise in stocks of raw material producers as investors speculated that economic expansion will boost profitability and demand. The Sensex had lost 60.99 points on Tuesday.

Similarly, the broad-based National Stock Exhange index Nifty rose by 69.45 points, or 1.29 per cent, to 5,471.85.

Renewed buying by foreign funds, a rise in exports for the ninth straight month in July, strong auto sales, impressive 8.8 per cent GDP growth, a rebound in China's manufacturing activity and smart growth in Australia's economy in Q2 also helped the Sensex post impressive gains.

Index heavyweight Reliance Industries snapped its seven-day losing streak and gained Rs 17.60 to Rs 936.45, while the second most valuable scrip on the BSE, Infosys Technologies, rose by Rs 68.65 to Rs 2,775.75.

The metal sector index gained the most, rising 3.02 per cent to 15,429.53 after Sterlite Industries, the largest copper producer, gained Rs 5.40 to Rs 156.55 on the back of a surge in metal prices in international markets.

Similarly, Tata Steel rose by Rs 15.35 to Rs 537.75, its highest close since August 10.

From the BSE-30 component, 27 counters ended with gains while only three finished with losses. All the sectoral indices ended in the green, higher by between 3.02 per cent and 0.28 per cent.

Among the major gainers, RCom spurted by 4.94 per cent, Hindalco by 4.48 per cent, Bharti Airtel by 3.10 per cent, DLF by 2.57 per cent and R-Infra by 2.10 per cent.

Amongst sectoral indices, the BSE-Realty index jumped by 99.15 points, or 2.98 per cent, the BSE-Tech index by 75.93 points, or 2.25 per cent, and the BSE-IT index by 107.72 points, or 2.00 per cent. Auto stocks initially were in keen demand on higher sales growth, a major part of the gains were pared on late profit-booking.

Barring China which finished down by 0.50 per cent, other Asian stocks ended higher today. Key indices from Hong Kong, Japan, Singapore, South Korea and Taiwan closed up by about 0.43 per cent and 1.26 per cent.

European markets were trading higher in their late morning deals. The CAC was up by 1.50 per cent, the DAX by 0.43 per cent and the FTSE by 1.09 per cent. US stock index futures, too, indicated a firm opening on Wall Street on Wednesday.

Telcos to roll out 3G only from next year

The Centre will start 3G spectrum allocation to pvt firms from today. The government may have announced allocating third-generation (3G) spectrum to seven private telecom firms from Wednesday, but operators are expected to roll out this services only by early next year amid apprehensions over security clearance of telecom equipment they have to import from China.

The operators expect to place the orders for setting up 3G technology infrastructure from mid-September onwards but are apprehensive about security clearance from Indian security agencies as most of the telecom equipment they have to import are to be sourced from China.

"There are new guidelines and templates of agreements between telecom service providers and equipment vendors in place. Telecom operators will be able to place the orders with any foreign firm, including from China. But we fear that the problems will be different on the ground level, as a large chunk of telecom equipment imported by Indian telecom operators are from China," a top official with a telecom equipment provider told MAIL TODAY.

Recently, the Centre had lifted the ban on procuring telecom equipment from foreign vendors in consultation with the ministry of home affairs to address security concerns.

The Indian government had earlier banned the import of Chinese handsets without IMEI numbers. Over the past six months, India's simmering mistrust of China has come to a boil in the telecom equipment market.

India's concerns stem from suspicions that foreign-made equipment, particularly Chinese gear, represented security risks given the possibility that sensitive information could be transmitted to foreign intelligence agencies through firmware backdoor.

"We are yet to see action turning to reality. We are still concerned about how security agencies would offer security clearances to Chinese telecom equipment. It has to see seen how that translates at the ground level. The government should ensure that we are not harassed," said another telecom equipment provider.

The government has told telecom operators to self-certify and take responsibility for the equipment they import from foreign vendors, especially from China.

While the new regulations seem to level the playing field for Chinese equipment vendors, they could still suffer from the common perception of having close ties to the Chinese government.

Operators, faced with crippling fines, are likely to show preference to the more transparent Western vendors with long track records.

By the end of June, a total of 450 orders amounting to more than Rs 9,700 crore had been put on hold due to the security clearance blockade. Of these, 27 had been approved, all with western vendors, such as Alcatel-Lucent, Ericsson and Nokia Siemens.

As many as seven operators, including Bharti Airtel, Vodafone, Tata Teleservices, Reliance Communications (RCom), Aircel, Idea and STel had bagged 3G spectrum in select circles.

Operators are confident that they can roll out services by the end of this year or early next year. State-run operators BSNL and MTNL were already given 3G airwaves in advance last year and have rolled out 3G services.

The government will allocate 3G spectrum to Bharti Airtel, RCom, Vodafone and others on Wednesday, as the defence ministry has agreed to handover required quantity of radio airwaves.

We fear that the problems will be different on the ground level, as a large chunk of telecom equipment imported by Indian telecom operators are from China.