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.

Maruti Suzuki sales up 24 pc in Aug

The country's largest car maker Maruti Suzuki India on Wednesday reported its highest ever monthly sales at 1,04,791 units in August, registering 23.56 per cent jump over the year-ago period.

Sales for the same month last year were at 84,808 units, Maruti Suzuki India (MSI) said in a statement.

"This is the highest ever monthly sales recorded by the company," it added.

It was the third time in this fiscal that the company's monthly sales figure has crossed one lakh mark.

MSI had reported its highest ever monthly sales at 1,02,175 units in May, the first time when the company had crossed the one lakh units in monthly sales.

The National-Capital-based company also posted its best figure so far for the domestic market at 92,674 units in August, a 32.47 per cent increase from 69,961 units in August 2009.

MSI's exports in last month, however, declined by 18.39 per cent to 12,117 units from 14,847 units in the year-ago period, the company added.

The sales of the company's once bread-and-butter model M800 also declined 29.81 per cent to 1,919 units compared to 2,734 units in August 2009, the statement said.

The A2 segment (comprising Alto, WagonR, Estilo, Swift, A-Star and Ritz) witnessed 25.69 per cent growth at 65,953 units compared to 52,473 units in the same month a year ago.

A3 segment sales (consisting of SX4 and DZiRE) increased by 33.99 per cent to 10,479 units compared to 7,821 units in the corresponding period a year ago, the company said.

MSI's total passenger car sales rose 32.86 per cent to 92,508 in August as against 69,629 units in the same month in 2009, it added.

Americans Continue to Be Loyal to National Brands

According to a recent report for the Grocery Manufacturers of America (GMA) by Roper Starch Worldwide shows that brands continue to dominate the shelves of most Americans' pantries, accounting for 80% of total food, drug, and mass merchandisers' sales. And examining the shopping habits and demographic makeup of consumers who buy national brands may provide new insights for brand marketers looking to retain their share of consumer dollars.

According to the report, which explores what types of consumers buy national brands, nearly half of Americans (46%) are "National Brand Loyalists." Defined as consumers who usually buy national brands when making a food or beverage and health and beauty care purchase, National Brand Loyalists are the "ultimate consumer," according to the report, and 44% say "today is a good time to buy." As a group, these shoppers are:

• Better off economically. Their median household income of $41,700 is 35% higher than that of their store brand-buying counterparts.
• College educated. One in four (27%) have at least a bachelor's degree (11 points higher than store brand buyers), and 40% hold executive/professional or "white collar" positions (15 points higher than store brand buyers).
• Married and in two-career households. 59% (versus 54% of store brand buyers) are married; a third of this group are in marriages where both partners work.
• Homeowners. 68% (vs. 49% for store brand buyers) own homes.
• Personal computer users. Half of all National Brand Loyalists own a PC or laptop (11 points higher than PC ownership for store brand buyers) and more than a third (37%) have accessed the Internet from home during the past month (10 points higher than store brand buyers).

"Clearly national brands are still king in consumers' eyes," said GMA president and CEO C. Manly Molpus. "Our partnership with Roper Starch on this report provides a wealth of revealing facts about today's brand loyal consumer, who is looking for a level of quality, innovation, and value that only brands consistently deliver."

Beyond demographics, "National Brand Buyers" also tend to recommend brands they use. The report finds that an impressive 64% of National Brand Loyalists have recommended a restaurant to others in the past year, 16 points higher than Store Brand Buyers. This group is also more likely to publicize movies, television shows, cars, magazines, and other products and services they like.

How do consumers choose the products they'll bring home? The report shows that consumers are most likely to feel brand loyalty to brands that differentiate themselves from the other brands within a specific category. The Roper Starch research shows 47% of ice cream consumers say some brands are better, up five points from 1997; likewise, 37% of toothpaste consumers, up two points, and 31% of household cleaner purchasers, up three points, feel the same way. "The common thread in these categories is the fact that marketers have offered innovative or distinctive products," the report says, which adds that improving products with anti-bacterial ingredients, fragrance varieties, cavity fighters, new flavors, and other "benefit bundles" may be the key to winning consumer brand loyalty.

Chronicling the evolution of brands through the decades, the report reveals the resurgence of "power brands" in the mid-to-late 1990s, where brand loyalty and brand differentiation rebounded. From toothpaste (62%, up five points) and deodorant (60%, up seven points), to orange juice (44%, up eight points) and cold cereal (31%, up seven points), more Americans in 1997 than in 1995 had "one favorite brand" of a host of products.

With the economy soaring in the past several years, consumers in 2000 are now more apt to experiment, shopping around a "considered set" of brands and choosing among two or three. In some categories, such as toilet paper, facial tissues, and furniture wax/polish, consumers are heavily gravitating toward brands, with both "one favorite" or "two or three" favorite brands growing. While the economic downturn of the early nineties trained consumers to be savvy, price-conscious shoppers, they're also more likely to try a new product and buy something else if they don't like it, without breaking the bank.

"Today's National Brand Loyalists are the ultimate consumers," said Edward Keller, president and COO, Roper Starch Worldwide. "By understanding what motivates these consumers to buy national brands, brand marketers are in a much stronger position to attract new customers and retain the trust of their most loyal buyers."