XED NEWSLETTER

11 Pages 03rd JUNE 2011 09th JUNE 2011

a weekly news bulletin

www.xedintellect.com

IN BRIEF
COVER STORY
BABA RAMDEV: YOGI ON FAST FORWARD

ECONOMIC INDICATORS
(as on 09.06.2011)

BSE SENSEX 18,384 NSE NIFTY 5,521 RS/Dollar 44.72

PERSONALITIES OF THE WEEK

44444.5245

PERSONAL COMPUTER INDUSTRY

NEWS DIGEST
BUSINESS NEWS INTERNATIONAL NEWS MISCELLANEOUS

NEWS

COMPILED BY

India among top four wealth creators in world ECONOMIC INDICATORS 2 INTERNATIONAL NEWS 9

China to become global banking king by 2023

Internet surfing more disciplined in India now

COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

TOP 10 HEADLINES OF THE WEEK

1. India among top four wealth creators in world: Study. 2. India among preferred FDI destinations: Ernst & Young. 3. Facebook, Twitter power India Inc biz. 4. Reliance Retail to enter wholesale business soon: Ambani. 5. PepsiCo, Unilever revive Lipton Ice Tea JV in India. 6. Guidelines sought for direct selling in India. 7. China to become global banking king by 2023 report. 8. Wal-Mart will continue chanting the low-price mantra. 9. "Internet surfing more disciplined in India now," reveals study. 10. Number of overseas students continue to fall in Australia.

ECONOMIC INDICATORS
Current Market Rates as on 9 Rupee / 1Euro Rupee/ 1Dollar
th

June11

Values 65.38 44.72

Stock Market Indices as on 9th June11 BSE SENEX NSE Nifty

Values 18,384 5,521

The Gini Coefficient is one way to measure how evenly the income (or wealth) is distributed throughout a country. There will always be rich and poor, but we are interested in understanding how evenly wealth is distributed and most governments at-least the ones with socialistic outlook put effort into keeping the Gini coefficient as low as possible.

Each year since 1990 the Human Development Report has published the Human Development Index which was introduced as an alternative to conventional measures of national development, such as GDP growth rate. The HDI provides a composite measure of three basic dimensions of human development: health, education and income. Between 1980 and 2010 India's HDI rose by 1.6% annually from 0.320 to 0.519 today, which gives the country a rank of 119 out of 169 countries with comparable data.

COVER STORY-BABA RAMDEV: YOGI ON FAST FORWARD

Baba jumps into Politics: Baba Ramdev had sought permission from Delhi police to hold a yoga camp from 8am to 2pm and to restrict the crowd to 5,000 people. But the yoga camp became the political platform for Ramdev to hector the government on black money and corruption. According to Delhi's laws Ramlila ground cannot be used for a political function. What followed was a brutal crackdown on Babas supporters at the wee hours of the night. After the action against Baba Ramdev, Anna Hazare and his team boycotted a meeting of the Lokpal Bill drafting committee. Government questioned Babas morality to organise such protests. Baba is being accused of stamp duty evasion and owes the exchequer Rs 58 lakh according to Haridwar SDM. He is also accused of grabbing fertile farmland. Local residents including farmers had recently launched a signature campaign against him. Cyber Activism: Digital activist group Anonymous Operations hacked the website of Indian government information technology organization in protest against political corruption and police violence against Baba Ramdevs supporters. Anonymous activists put up its logo and a message for the country's Prime Minister Manmohan Singh on the website warning of such similar attacks if government continues to suppress the movement against corruption. What Baba wants: Some are practical and doable. For example, introduce a change in the electoral system to directly elect the prime minister, bring income tax details under the Right to Information Act, substantially increase the minimum support price for grains, make wages for different types of labour uniform across the country and change the Land Acquisition Act so that farmers dont lose out to industry. But look at the rest. Toughen the Lok Pal Bill to include death penalty for the corrupt, immediately retrieve all the black money stashed away in tax havens abroad, abolish Rs 1,000 and Rs 500 notes, disable transactions of Indians with banks in tax havens and last but not the least, replace all laws inherited from the British with Swadeshi laws. The unfeasibility of some of his demands however cannot be taken as an excuse by the Government to justify the dismantling of a peacefully organised protest. Ramdev the marketing guru: He is considered a marketing phenomenon. From toothbrushes to night suits, from breakfast cereals to body cleansers, there is a spiritual touch in each item up for sale. Consumerism blended with spiritualism, courtesy religious gurus and organisations, is giving companies a run for their money. Ramdevs credentials as a politician are yet to be established, but his pioneering marketing strategies as head of a Rs 1,100-crore diversified conglomerate are already the subject of case studies. Babas key aide Acharya Balakrishna controls a huge business empire of 34 companies. Brand Baba: It is through creation of customer communities, determination to build Patanjali Yogpeeth as a rival to the World Health Organisation and going beyond medicines to lifestyle that Ramdev has emerged as a cult marketer. Legendary brands have a unique feature. They have a fan base that is so emotionally connected with the brand that it becomes a cult or religion for them. Patanjali reported a three-fold jump in profit after tax to Rs 63 crore for 2008-09, as against Rs 21 crore in 2007-08. According to a Crisil report, the trusts operating margin was a healthy 83% in 2009-10. Clashing Ideologies: Interestingly, Ramdev is being opposed by so many others who supported Anna Hazare. The reasoning might be while Hazare appealed to the middle-class and the thinking classes like the academics, professionals; Baba Ramdevs reach is more broad-based and extended to the rural and vernacular middle-class followers. The upper middle classes seemed to find more truck with Anna Hazare, a product of the armed forces who, in his own protest a few months back, struck a more Gandhian and a non-religious tone. These people are worried about Babas rustic populism which makes a hash of their more urbane secular categories and see him as comic book stuff. Saffron replacing Tricolor: These days Satyagraha has become a tool for commercial use. Hunger for publicity at any cost is the hallmark and moral corruption is manifest. The presence of RSS leader Sadhvi Rithambara, who is accused of Godhra riots in the gathering, gives Babas movement a communal tinge. Allegation such as the funding being done by BJP and RSS only weakens the ultimate cause. How many of us know of Manipurs Irom Sharmila, who has been on a fast for the last 10 years against the Armed Forces Special Powers Act? She had been arrested and fed forcefully through a nasal tube innumerable times since then. The sight of protest at Rajghat is different, while Annas supporters fast in heavy rain some as old as ninety-two, Babas are in a waterproof AC pandal. We prefer our satyagrahis brave the rains and the lathis for a common cause with uncommon resolve?

PERSONALITIES OF THE WEEK

ANNA HAZARE INDIAS SOCIAL CONSCIENCE FOR GEN TWITTER Kisan Baburao Hazare or Anna Hazare is a social activist known for his work on development of Indian villages. He is renowned for his simplicity and resolve and has taken centre stage in the battle against corruption. Beginnings of a Legend: Born on 15th January 1940 in Bhingar, a small village near Ahmednagar, Maharashtra, Hazare faced a childhood of hardships. He was among the 7 children of an unskilled laborer and sold flowers in Dadar to contribute to his familys income. Inspired by Vivekanandas teachings, he believed seva was the highest form of worship. He joined the army in 1963 in the aftermath of the Sino-Indian war and saw action in the 1965 war with Pakistan, where he was the sole survivor of an attack on his convoy. On leaving the army he returned to his village Ralegan Siddhi where he was appalled at the living conditions of his fellow villagers. His consequent efforts to change the situation led to the uprooting of alcoholism and creation of a model irrigation system that changed the fortunes of the villagers. His efforts resulted in the creation of the model village that is Ralegan Siddhi. Recognitions: Padmabhushan, Felicitated by Care International. What Anna Believes: Hazare believes that the dream of India as a strong nation will not be realized without selfreliant, self-sufficient villages and this can be achieved only through social commitment & involvement of the common man. War on Corruption: Hazare raised the battle cry against corruption when he founded Bhrashtachar Virodhi Jan Andolan in 1991 to fight against graft in the state forestry department. His relentless efforts were instrumental in the creation of the Right to Information Act, perhaps one of the most important steps towards a more honest India. His latest battle started with a fast unto death on the 5th of April 2011 to bring into existence a strong Lokpal Bill against corruption. The movement gained popular momentum as the Facebook generation of candle lighting Indians found a leader they could actually look up to and who could be their voice & conscience. The demands were accepted on 8th April, but the battle rages on. DEEPAK PAREKH THE MAN BEHIND TURNING INDIAS HOUSING DREAMS INTO REALITY Deepak Parekh is the Chairman of Housing Development Finance Corporation (HDFC), India's leading housing finance company. A pioneer in mortgage finance, he has enabled the Indian middle class to own their houses or apartments through affordable loans. First Steps: A chartered accountant from England by profession Parekh began his career with Ernst &Young in New York. After a stint with MNCs he joined HDFC, founded by his uncle HT Parekh, in 1978. Promoted to managing director in 1985 and chairman in 1993, he was instrumental in turning the fledgling company into a financial services conglomerate with assets of $28 billion and a one third share of Indias mortgage market. Why India Inc. listens to Mr. Parekh: The man brought loans at affordable rates to the middle class who could earlier merely dream of their own house & whom the public sector banking giants spurned. Described as being honest, pragmatic & an open listener he is considered to be a CEOs dream board member. He is also considered a voice of reason among Industry heads & his counsel is considered invaluable. The govt. also accepts this fact and has shown its belief in the man by appointing him Chairman of the high level expert committee formed to recommend measures for strengthening the Unit Scheme in 1964. RBI appointed him Chairman of the Advisory Group for Securities Market Regulation, which was tasked to compare the level of adherence to international standards in India with that in other countries. Also known for: He is the non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC) as well as non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd. He is on the Board of Castrol BP India; Hindustan Lever; Siemens Ltd among others. He received the Padmabhushan & was the youngest recipient of the Economic Times lifetime achievement awards. Personal Interests: Travels to Tirupati every year as well as to UK for the Wimbledon Tennis Tournament.

BUSINESS NEWS
1. India among top four wealth creators in world: Study-ET June 03 India has emerged among the four fastest wealth creator countries in the world and its growth momentum is expected to gather further steam going forward, a global study has said. In its annual Global Wealth Report, management consulting firm Boston Consulting Group has listed the US, China, the UK and India as the nations showing the largest absolute gains in wealth in 2010. "Wealth will grow fastest in emerging markets. In India and China, for example, it is expected to increase at a compound annual rate of 18 per cent and 14%, respectively," Tang BCG partner and co-author of the study said, adding that the AsiaPacific region's share of global wealth (ex Japan) was projected to rise from 18% in 2010 to 23% in 2015. 2. India among preferred FDI destinations: Ernst & Young-PTI June 06 According to the '9th Annual European Attractiveness Survey' by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of India's perceived specialization as a hub for low cost outsourcing business. As per the E&Y report, a huge number of respondents felt that India would be the home to the next big brand names like Microsoft and Google in the IT sector. The Indian economy had expanded by 8.5 per cent in 2010-11, up from 8 per cent in the previous fiscal. The Reserve Bank, in its annual monetary policy, said that growth is likely to slow down a bit but still clock around 8 per cent this fiscal. 3. Facebook, Twitter power India Inc biz-ET June 07 Indian companies have increased their usage of social networks like Facebook, besides blogs, micro-blogs like Twitter and other on-line foray to win new business in 2011, a survey said. An increasing number of Indian companies are using social media as an effective business tool with 83 per cent firms in India agreeing that without social media activity, marketing strategies cannot hope to be successful, while globally, 74 per cent companies endorse the view, according to the survey by Regus, a leading office-space solutions provider. The global Regus survey findings are based on the responses of over 17,000 managers and business owners across 80 countries. In 2010, Regus found that 52 per cent of Indian firms were successfully winning new customers through business social networking activity. Around 66 per cent of Indian companies and 61 per cent of global firms also emphasized the need for a balance of marketing media, confirming their belief that without a combination of traditional and digital techniques, marketing campaigns would not work. 4. Reliance Retail to enter wholesale business soon: Ambani-ET June 03 Reliance Retail will soon launch cash-and-carry format stores for wholesale business, while its consumer-focused business will become market leader across all formats in the next two years, Mukesh Ambani said today. Reliance Retail will soon launch cash-and-carry format stores to offer numerous national and international brands for small traders across the country, Ambani said. Addressing Reliance Industries' shareholders at the company's 37th AGM, the Chairman and MD said that RIL subsidiary Reliance Retail has made substantial investments over the past five years. Asserting that Reliance Retail has already become largest food retailer in the country, Ambani said that all the specialty formats of the company would attain top positions in their respective segments in next two years. 5. PepsiCo, Unilever revive Lipton Ice Tea JV in India-The Hindubusinessline June 06 Food and beverages major PepsiCo and FMCG giant Unilever are reviving their joint venture in India by re-introducing their global product, Lipton Ice Tea, in the country. The JVs Indian arm has launched two new flavours of the ready-to-drink ice tea, after it was withdrawn around seven years back when the JV entered the country. A PepsiCo India spokesperson said the JV is re-introducing the product as the current market is favourable for such items, with increasing awareness. In fact, even within ice tea, consumers are increasingly accepting green ice tea as a healthier option, he added. In 2003, PepsiCo and Unilever formed a global 50:50 joint venture Pepsi Lipton International to manufacture and market Lipton Ice Tea variants in 67 countries. The JV entered India in 2004.

6. Guidelines sought for direct selling in India- The Hindubusinessline June 06 There is a pressing need for direct selling guidelines in India to protect consumers and legitimate direct selling companies. We are not seeking laws, only mere guidelines. Countries such as the US, UK, Malaysia and Singapore have enacted direct selling laws to protect consumers, Mr Pankaj Vassal, Vice-President, Amway South, said. Addressing a press conference here, Mr Vassal said that Amway had sought the Government's nod on these lines and hoped that something positive would emerge soon. Amway's business in India grew 27 per cent in 2010. Mr Vassal conceded that Tamil Nadu was the hottest market for the company in India, registering a 40 per cent growth, higher than the national average. An Ernst & Young study shows that the direct selling industry could grow by 24 per cent to Rs 7,120 crore by 2012 13 from Rs 4,120 crore in 2010. 7. Nimble Asian rivals raid Nokia's emerging markets turf-Reuters June 07 From New Delhi to Shanghai to Johannesburg, a flood of cheap handsets from the likes of China's ZTE and India's Micromax is destroying Nokia's top position in emerging markets. Compounding the woes for the Finnish phone maker, Asian handset manufacturers are increasingly turning to Google's free Android software, which is popular with operators and consumers in cut-rate markets. Nokia is already under pressure in the high-margin smartphone sector as Apple , Blackberry maker Research In Motion and Google seize market share, leaving the basic cellphone business as Nokia's most valuable part. That is now under threat. The battle for the cheap phone market could be even tougher. Nokia has been able to rely on its brand and distribution chain across emerging markets, home to 1.7 billion mobile phone subscribers. 8. Cos reinventing induction programmes for fresh recruits to include play and work-ET June 04 You can go trekking in the Himalayas, or set out on a Bharat Darshan. Teaching underprivileged children while staying in a village is another option. Reads like an advertisement for a summer holiday package? Actually, these are activities on the list of induction programmes of Indias biggest and most prestigious companies. The boot camps of India Inc. June-July is the time freshers from engineering colleges and BSchools kickstart their career. And, India Inc wants to make sure they never forget the first few days at work. At the same time, the new recruits must get to learn as much as they can in those days about themselves and about the company they will work for. Induction programmes reinforce an organisations employment promise. Increasingly, recruitment and training are emerging as major costs for companies and, therefore, the need to maximise attraction and retain talent, says Nishchae Suri, managing director for Mercer, India. Naturally, the new avatar of boot camps are not just for fun. 9. Reliance Expects to be Debt-Free This Year-Forbes June 03 Reliance Industries Ltd. said Friday it will become debt-free on a net basis by the end of March, a step that will allow India's biggest company by market value to expand its businesses at home and overseas. Reliance has aggressive plans to grow its core areas of polyester and petrochemicals, as well as the new sectors of retailing and broadband wireless, the company's billionaire chairman Mukesh Ambani said at its annual meeting of shareholders. Reliance, controlled by Mr. Ambani, is aiming to become a global energy, retailing and broadband powerhouse via organic growth and acquisitions. The company operates the world's largest refinery complex, while it made three investments in shale gas in the U.S. last year to expand in that sector. 10. Ford eyes India, China to hit 50 pct growth target-Reuters June 08 Ford Motor Co is aiming to expand its presence in the fast-growing auto markets of India and China with an eye toward increasing the number of vehicles it sells per year by 50 percent by the middle of the decade. The No. 2 U.S. automaker, like its rival General Motors Co, is looking to markets other than the United States because of lingering weakness in the economy. The company said it would concentrate on small cars, popular in developing economies, and that it was aiming for sales of small cars to represent 55 percent of total vehicle sales by 2020. Small cars currently represent about 48 percent of Ford's total vehicle sales. Ford aims to double its dealer network in China by 2016, and adding 100 dealers this year.

11. India is in a conundrum made by 'problem of plenty'-ET June 06 Indian farmers have much to celebrate this year with a bumper wheat harvest. As predicted by the ministry of agriculture, wheat farmers have begun to harvest what is shaping up to be a record crop, projected at 84.27 million tonnes. We are growing more wheat than ever before. The earlier record of 80.8 million tonnes of wheat production was achieved in 2009-10. Estimates show that food-grain production including wheat, rice, pulses and coarse cereals will also see a surge, and will go up to 235.88 million tonnes this crop year as compared to the earlier record of 234.47 million tonnes achieved way back in 2008-09. The momentum is said to continue with the timely arrival of southwest monsoons, auguring well for the sowing of wheat, coarse cereals and oilseeds. All of this should sound like good news to a country that is one of the world's largest wheat consumers, but there is an underlying sense of despondency among farmers and economists alike. 12. Regulatory vacuum: Indian regulators are soft, indecisive and disempowered-ET June 07 Satyam Computer pays a fine of $135 million in the US for falsifying its accounts; its auditor Pricewaterhouse Coopers pays $33 million Fortune magazine reports that Ranbaxy may have to pay $1 billion to the US pharma regulator to settle pending compliance issues Based on phone taps, Rajat Gupta, former managing director of McKinsey , is named by the US financial regulator in an insider trading case The US financial regulator has asked Wipro to prove the independence of KPMG, its auditor, following a financial fraud at the company last year As corporate India goes global, it is engaging with regulators more demanding and less forgiving than their Indian peers. The four recent instances mentioned above don't just paint the Indian entities and individuals concerned in poor light. It also questions the effectiveness of Indian regulators, who, based on the sternness and swiftness of action taken by them, come across as soft, indecisive and disempowered. The 2009-10 annual report of the Securities and Exchange Board of India says the capital market regulator initiated all of 10 cases of insider trading that year. 13. A Facebook of Flak Awaits Cos Poking Buyers-ET June 07 Brands now realise social media backlash can be bruising & brutal as it tries to intimidate Social media can be as fickle as it is effective. Only a few months ago, a survey had anointed Vodafone as the most admired telecom brand in the country amongst online social media users for its ads and promotions. Now, the global telecom companys India arm is faced with a potentially huge social media backlash as a swell of opinion grows against the company on social networking platform Facebook. The rallying point is a recent legal notice Vodafone sent one of its customers for his alleged false and defamatory statements against it on social networks. The customer, Dhaval Valia, has become a hero for many Indians battling poor service quality and bad customer service of their telecom providers. Thats what social media can do for customer activism. 14. India's first desi cruise liner is set to begin its new voyage next week from Chennai-ET June 07 India's first desi cruise liner is set to begin its new voyage next week from Chennai. Mumbaikars can look forwards to trips after the rains are over. The cruise liner, Amet Majesty will be able to take 1,000 people on board, but will be launched with only 500 berths. It has four luxury restaurants, dance bars, swimming pools, spas and just anything that you would find on international luxury cruise liners. Operating from Chennai, the cruise liner will take tourists to the high seas and offer packages to the Andamans, Sri Lanka, Maldives, Thailand and a few Indian ports. Considering the weather along the two coastlines of the country, Amet Majesty has scheduled separate seasonal operations, one for the Bay of Bengal and the other for the Arabian Sea. 15. Vertex bets big on domestic BPO market, to hire 14, 000 people in 2 years- ET June 07 UK-based BPO firm Vertex today said it will increase its headcount in the country to 20,000 employees over the next two years as it ramps up its operations in India. The Vertex group, which had acquired domestic player Shell Transource last year, has about 6,000 people on its payroll (post-acquisition). Vertex also expects its revenues from India to cross $100 million (about Rs 450 crore) by end of 2013, but Sweeny declined to comment on the current revenue figures. He added that the domestic market for BPOs has grown at a compounded annual growth rate of 35 per cent.

16. Meeting Revenue Target a Challenge, Admits Pranab-ET June 09 Change in stance of ever-optimistic FM raises fears of sharp drop in tax mop-up, FM has warned that revenue growth target for this year is challenging, a change in tune from an irascible optimist about the economy that has triggered concerns tax collections may drop sharply as economic activity slows. Already there exists scepticism about the governments budgeted expenditure numbers for this year, and concerns on the revenue account could throw the governments fiscal consolidation plans out of whack. While the finance minister spoke only about challenges, a parade of senior officials were more forthright in playing down expectations of the government being able to meet its revenue growth targets. Finance secretary Sunil Mitra, said the task was tough. 17. At Infy, Each Employee is Worth More Than a Crore-ET June 09 Software bellwether takes intangibles into account, starts valuing staff on its balance sheet PKumar, an Infosys employee helping customers in the US debug their software applications earns some Rs 5 lakh in annual salary, but is worth over Rs 1 crore for Indias second biggest software exporter. The only Indian tech firm to value its intangible assets, Infosys has valued each of its 1,30,000 lakh employees based on their earning potentials till retirement. Intangible assets are nonmonetary assets that are created through time and effort like brand value, intellectual property and human capital. While Infosys started this practice in 1996, other companies that have done this in the past include Bharat Heavy Electricals, Steel Authority of India and Satyam Computers. Infosys follows the popular Lev & Schwartz (L&S) model for evaluating how much the employees would earn for the company based on present earnings, if they stayed till the retirement age of 60. This is after discounting the estimated earnings at the employees cost of capital. 18. No filing of tax return for salary and interest income up to Rs 5 lakh-ET June 06 As many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards. "No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh. We would shortly notify this," a Central Board of Direct Taxes official said However, he said this would not cover income from other sources like house property, capital gains and gains from profession and business. The scheme would be applicable from assessment year 2011-12 onwards. This means that the salaried persons eligible under the scheme would not have to file returns for the financial year 2010-11 in 2011-12 (assessment year). The idea behind the move is that in cases where there are no other sources of income, filing of a return is a duplication of existing information. 19. LG India to enter B2B market-BS June 07 The Indian subsidiary of Korean electronics major LG has announced its entry into the business solutions segment, from which it aims to garner Rs 1,000-crore revenue by 2014. LG estimated that the total size of the business-to-business solutions for integrated display market is around Rs 2,500 crore and growing at the rate of 20-25 per cent per annum. The company, under its new business segment, will offer digital devices and solutions for quick service restaurants, education, retails, hotel, office and banking businesses. 20. Tommy Hilfiger sticks to premium play-Afaqs June 08 The luxury brand, which launched its childrens wear recently, has not budged from its top-end positioning even in Tier 2 cities. A few years ago, Mohan Murjani gave up the franchises of Gucci and Jimmy Choo in India as sales failed to match the expected demand for luxury goods in India. But things have changed since then. Murjani, who brought Tommy Hilfiger to India in 2004 in collaboration with Arvind Brands, seems to have struck gold finally, as the premium fashion brands sales have been rising 50 per cent annually. Reason: increasing incomes even in Tier 2 cities and Murjanis refusal to dilute the brands premium image, unlike some of his competitors. In short, global luxury brands have to deliver the global brand promise to Indian consumers consistently, without any local dilution.

INTERNATIONAL NEWS
21. China to become global banking king by 2023 report-Reuters June 04 China could leapfrog the United States to become the world's largest banking economy by 2023, 20 years earlier than expected, raising pressure on western banks to brush off the effects of the credit crisis and head east. According to a report published by consultants PricewaterhouseCoopers (PwC) on Friday, India is expected to leapfrog Japan to rank third in terms of domestic banking by 2035 -- and could pass China as its population rapidly ages. PwC's chief economist John Hawksworth urged current banking leaders, whose power has been sapped by the credit crisis, to heed the accelerating shift in global economic power and claim a share of emerging markets' relatively unbanked populations. Chinese banks already dominate global rankings by market value, and some lenders have already secured heavy emerging market exposure to tap into booming demand for financial products from young and increasingly wealthy populations. Banks in the fast-growing emerging markets (E7) of China, India, Brazil, Russia, Mexico, Indonesia and Turkey have been relatively shielded from the financial crisis that brought many western peers to their knees and sent asset values plunging. 22. Wal-Mart will continue chanting the low-price mantra-The Hindubusinessline june 06 If the US economy needed some boost, then it got the dose in good measure at Bentonville, Arkansas, last Friday, when thousands of employees, shareholders and associates at WalMart's annual shareholders meeting, chanted EDLP (everyday low price) and EDLC (everyday low cost), two of the retail giant's time-tested mantras for success. At $419 billion in sales and $16.4 billion in net profits, Wal-Mart, the world's largest retailer, tops the Fortune 500 list. This even had Hollywood superstar Will Smith term the company Wil-Mart. Winking at Mr Rob Walton, the company's Chairman and the founder's son, Smith urged Walton to adopt him. 23. Moody's sounds alarm over U.S. debt limit, deficits-Reuters June 03 Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the U.S. debt limit. Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers. Moody's warning increases pressure on President Barack Obama and House of Representatives Speaker John Boehner, the top Republican in the U.S. Congress, to strike a deal soon or risk upsetting global financial markets. Geithner has predicted a financial catastrophe if Congress fails to increase the current $14.3 trillion borrowing cap by Aug. 2, when his department will exhaust the extraordinary cash management measures it has been using since reaching the debt limit on May 16. 24. Investors dump BlackBerry as iMessage seen big threat-TNN June 04 Apple's iMessage took its toll on the BlackBerry maker Research In Motion (RIM) on Tuesday when its stock sank below $37 - the lowest level since 2007. iMessage announced by Apple on Monday will challenge RIM's highly popular BlackBerry Messenger (BBM) instant chat service which has given the Canadian company an edge over its rivals. An Internet-based service, the iCloud will allow users to have access to their data across their Apple devices - from the iPhone to the iPad to the iPod. The Apple announcement made investors more jittery, plunging RIM stock on both the Toronto Stock Exchange and Wall Street Tuesday. It slipped more than three percent in Toronto to close at $36.92, and 2.8 percent on Nasdaq to close at $37.82. The RIM stock has sunk more than 35 percent this year alone. 25. Killer E.coli strain described as deadliest yet-Reuters June 03 A virulent new strain of E.coli bacteria that has killed at least 17 people in Europe may be the deadliest yet in human history, health experts said. Germany is at the centre of the outbreak, with more than 1,500 people ill from eating contaminated vegetables and salads, but the precise source of the new strain is not yet known. The highly infectious variant has never affected humans before. And with new cases now also reported in the United States, consumers appear to be nervous around the world. The outbreak has put strains on trade relations, with Russia drawing EU criticism after banning raw vegetable imports from Europe and accusing Brussels of failing to handle the crisis.

MISCELLANEOUS NEWS
26. "Internet surfing more disciplined in India now," reveals study-Campaignindia June 03 Indian internet usage habit growing more pre-planned and time efficient, consistent with global average: Study by Microsoft Advertising, MEC and Mindshare. Microsoft Advertising, MEC and Mindshare have released a study entitled 'Living with the Internet -- What is Driving Web Behaviour', designed to understand the nature of time spent online across the world. The study is intended to gain better insights on consumers' web behaviour and help marketers and brands make the best use of the same. Commenting on the study, R Gowthaman, leader, Mindshare, South Asia said, "This is our honest and humble attempt to bring some method to the madness. Internet is now one of the basic utilities like electricity, gas etc., and it needs to be looked on the back of popular culture we are getting into." 27. Number of overseas students continue to fall in Australia-ET June 03 Australia's education industry has witnessed an 8.7 per cent drop in international enrolments this year, particularly from India following a spate of violent attacks on Indians. Tightening of student visa rules by Australia is also blamed for the sharp decline in the enrolment of the foreign students. Australian education providers have reported an 8.7 per cent drop in international enrolments during the first three months of this year compared with the same period last year, 'The Age' reported. The report said the biggest challenge for the sector is the Indian market where the numbers all sectors fell by 30.4 per cent, continuing the year's trend, outlined in figures released in April for February enrolments. 28. Govt in a Pressure Cooker & Theres More Cooking-ET June 07 Prime Minister Manmohan Singh broke his silence to justify the crackdown on protesters led by Baba Ramdev as the government found itself battling a storm of criticism, deepening the crisis that threatens to make it a lame duck half-way into its term. On a day the governments weekend actions came in for some serious questioning by the Supreme Court, Singh described the episode as unfortunate, but said the government was left with no alternative. Police launched a midnight raid on the protest site at the Ramlila Maidan on Saturday, detaining the yoga guru and dispersing his followers assembled to support his anti-corruption campaign. But the manner of the police action on protesters, many of whom claimed they were beaten up by lathi-wielding policemen, had the Supreme Court asking the government to explain its behaviour, piling on the troubles for the Congress-led UPA that has been hobbled by a series of scandals and is increasingly isolated politically under attack from friends and foes alike. 29. India to launch 12 foreign satellites in two years-TNN June 03 India has bagged multi-million dollar contracts to launch 12 foreign satellites in the lower orbit from its spaceport over the next two years, a top space agency official said on Wednesday. Of the 12 satellites, four are from Canada, two each from Indonesia and Germany and one from Luxembourg. The remaining three spacecraft are from universities in Europe. "Through our commercial arm Antrix Corporation , we have received orders from Canada, Indonesia, Germany and other European countries to launch a dozen satellites in the sunsynchronous orbit during the next two years," state-run Indian Space Research Organization ( ISRO) Chairman K. Radhakrishnan told reporters here. Antrix is also in negotiations with France to launch a remote sensing satellite (EnMAP) in the lower orbit. 30. New Delhi Starts Drive To Root Out Hunger-WSJ June 08 From the field to the table, India is setting in motion a drive to stop rampant food waste that could feed millions of people who going hungry despite successive years of strong farm output. The government has appointed a 15-member panel to suggest ways of curbing waste as well as overcoming distribution hurdles that plague its bulging cities. The committee's first meeting will be held June 23, a food ministry official said Wednesday. The panel is expected to submit its report in the next three to four months. Nearly 30% of the country's fruits and vegetables perish due to a lack of cold-storage facilities, while thousands of tons of food-grain spoil in ill-equipped warehouses. Between 15% and 20% of cooked food at weddings, parties or restaurants is wasted as well. "So, starting from the field to the stages of cooking and serving, we are looking at the entire gamut of food wastage," Mr. Thomas said.

10

PERSONAL COMPUTER INDUSTRY

Indian PC Market: Indian PC market is price conscious and is dominated by assemblers. At present, assemblers account for over 60 percent of it. One main advantage of these white box manufacturers is the zero cost incurred on software, as they install pirated software. To overcome this problem, manufacturers are now installing Linux on their machines. This keeps the customer happy as he gets to use legitimate software and the manufacturer also does not have to incur any software-related expense. Current Trends: The combined desk-based and mobile PC market in India totalled nearly 2.7 million units in the fourth quarter of 2010, a 16.2 per cent increase over the fourth quarter of 2009, according to Gartner, Inc. This growth rate was more than five times the worldwide PC markets growth average in the fourth quarter of 2010.Personal computer maker Hewlett-Packard (HP) has regained its numero uno position in India after losing it for two consecutive quarters in 2010 to Dell. The company clocked a higher market share than Dell in the Vendors 4Q10 Market Share (%) October-December quarter last year. HP 15.8 Dell 13.0 This growth was primarily driven by the mobile PC market which grew 39 Acer 10.7 percent in the fourth quarter of 2010.A fall in prices, large deals from governments and demand from consumers and the education sector drove Lenovo 9.6 Mobile PCs sales. Many small and midsize businesses are buying mobile HCL 7.8 PCs which is further fuelling growth. Others 43.1 Total 100.0 However according to market intelligence firm IDC Indian PC market grew by 31% in 2010 and is expected to grow to 22% In 2011.The overall sales growth of 31% was largely led by consumer spending. The growth of notebook PCs in 2011 will accelerate to 42% leading to an overall growth of 22% in terms of unit sales year-on-year. IDC India attributes the relatively slower PC sales growth expected in 2011 to the effect of a larger base. Government, education, ITeS and telecom verticals are expected to continue to invest in or refresh their PCs. PC purchases by BFSI, retail and healthcare verticals are expected to pick up in 2011. Adoption of a notebook PC as the first PC is likely to show growth in 2011. IDC India expects the overall average selling price of desktop PCs to drop in 2011 by about 13 per cent and notebook PC prices to drop by about 5 per cent. SWOT analysis of PC Industry: Strengths: Several players like Dell have low operating cost relative to revenue because they cut out the retailer and supply directly to the customers. Many companies assemble the components using cheap labor rather than manufacturing it themselves further bringing down the cost. The software products have high broad-based corporate and consumer acceptance (Word, Excel, PowerPoint, Access), and numerous powerful features that are in use worldwide, thereby promoting standardization and competitive advantage through their ease of integration and costeffectiveness. Weakness: Since many companies are assembling firms therefore their each product is custom-built according to customers specifications which might take days to finish, causing customer inconvenience. Products in the PC industry tend to depreciate in value quickly and the new developments in technology routinely make old products obsolete. Opportunities: Cheaper global telecommunication costs open new markets as people connect to the Internet. PC companies are entering into contracts with the federal government as computers are increasingly used to collect data and develop the military. The PC industry produces more than just desktop and laptop computers, with hand-held devices, smart phones, servers, storage systems, networking equipment and computer-embedded industrial products becoming growth areas. For example, many products such as automobiles now have computers embedded within them. Multimedia devices with multiple capabilities, such as cell phones that can be used as video cameras, are becoming increasingly popular. Threats: New entrants to the market pose potential threats. The threat to become outmoded is a pulsating reality in a computer business. With almost identical prices, price difference is no longer an issue for a customer. Currency exchange rates affect demand for application/operation software and hardware, and fluctuating currencies can negatively impact revenues in the global marketplace. Rapid development of mobile devices that will replace personal computers is always a cause of concern. Software piracy of commercial and consumer applications software on a global scale threatens revenue streams.

11

CURRENT AFFAIRS QUIZ

1. In Personal Computer Industry many companies are _________ therefore their each product is custom-built according to customers specifications. a. Assembling Firms b. Manufacturing Firms c. Sole proprietorship firms d. Public limited Firms 2. With which famous accounting firm did Deepak Parekh start his career with? a. Ernst & Young b. PriceWaterhouseCoopers c. Deloitte Touche Tomahatsu d. KPMG 3. The ________ has made the island state - Singapore - the sixth most expensive city in Asia for expatriate living. a. strong Asian economy b. strong Singapore dollar c. Singapore export policy d. strong GDP growth 4. What is the commercial arm of ISRO known as? a. ISRO business holdings corporation b. SkyCommerce Ltd. c. Tara Space & Communications solutions d. Antrix Corporation 5. The recent E.Coli outbreak was caused due to contaminated_______________________. a. Fruits b. Meat c. Milk d. Vegetables 6. Research in Motion is based out of which country? a. USA b. Canada c. UK d. Japan 7. What is the current borrowing limit of the US Treasury? a. $10 Trillion b. $14.3 Trillion c. $5 Trillion d. $ 11.6 Trillion 8. What is the name of India's first indigenous cruise liner? a. Queen of the Arabian b. Amet Majesty c. Indian Star d. Samudra Hans 9. Which a. b. c. d. is the No. 2 Automaker in the US? GM Ford Chrysler Toyota position in the emerging markets is under threat, why? Competition from low cost mobile manufacturers Declining share in the Smartphone market both 1&2 Only 1

10. Nokia's a. b. c. d.

12

11. Reliance retail has a distinction as the largest player in which category? a. Apparel b. Food c. Jewellery d. White Goods 12. The government's move of cars having to carry fuel efficiency labels means : a. customers will now be aware about the exact mileage of the vehicle. b. cars with high fuel consumption will not be allowed to run on the roads. c. cars running on fuels that are less harmful to environment will be incentivized. d. cars can only run on fuels that adhere to specified environment standards. 13. SMS spam and WAP (wireless application protocol) banner are the tools of ________ . a. Internet advertising b. TV advertising c. Radio advertising d. Mobile advertising 14. Sharing on the web generates more than 10 per cent of all internet traffic. Name the largest sharing channel across the web space. a. Twitter b. Facebook c. YouTube d. MySpace 15. In the Annual Global report, India, China & the US are among the top 4 wealth creators, which is the 4th country? a. Brazil b. Russia c. Japan d. UK 16. According to which report by Ernst & young was India ranked 5th most attractive destination for FDI? a. 9th Annual European attractiveness survey b. Asian FDI Survey c. 10th Annual most preferred destination survey d. Global Investment Survey 17. Reliance retail is all set to enter which new format? a. Cash & Carry wholesale b. Specialized retail c. Discount Stores d. Vending 18. PepsiCo is tying up with which FMCG major to market Lipton Ice Tea? a. Tata b. P&G c. HUL d. Dabur 19. What is the size of the direct selling industry in India? a. Rs 1250 Cr b. Rs 2430 Cr c. Rs 4120 Cr d. Rs 3830 Cr 20. Reliance Industries is aiming towards a major financial milestone? What is it? a. To become debt free by year end b. To have the maximum number of acquisitions this year c. To enter the aerospace sector d. To invest heavily in emerging economies

13

21. Which telecom provider was voted as the most admired brand amongst social media users for its ads & promotions? a. Vodafone b. Airtel c. Idea d. Uninor 22. The premium brand brought to India by Murjani that recently launched children's apparel has partnered with which other company in India? a. Madura garments b. Raymond c. Arvind Brands d. Provogue 23. Which a. b. c. d. 24. Which a. b. c. d. consulting agency has predicted that China could become a banking king by 2023? BCG PriceWaterhouseCoopers E&Y McKinsey of the following is an E7 country? India USA UK Japan

25. This company earned $16.4 Billion in profits & is the world's largest retailer, name its Chairman. a. Vikram Pandit b. Rob Walton c. Mike Duke d. H.Lee Scott

ANSWER KEY: Q 1 2 3 4 5 A a a b d d Q 6 7 8 9 10 A b b b b c Q 11 12 13 14 15 A b a d b d Q 16 17 18 19 20 A a a c c a Q 21 22 23 24 25 A a c b a b

14