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jagdu

@jagdu

Dazzler

Posted: 16 years ago

#251

Big Hype, Likely Small Profits as Tata Launches Nano

When the Nano minicar was conceived by India's Tata family in 2003, patriarch Ratan Tata said his intent was to provide an affordable, fuel-efficient, safer alternative to the two-wheelers deployed by millions of low-income Indians. The 3.1-meter-long car's launch Monday will come at a very different time for India, the auto industry and the Tata empire as well. The focus will be as much on whether the Nano will sell big and deliver profits to debt-strapped Ltd. as on whether it could spur a transportation revolution on India's roads.

This photograph taken on January 10, 2008 shows the Tata "Nano" car in New Delhi.

With an expected price tag of 100,000 rupees (about $2,000) for dealers for the basic model, the Nano will be one of the world's cheapest cars, if not the cheapest. The company has so far declined to discuss details on costs, production plans, and profit margins. It's expected to reveal fresh information, such as the monthly production volumes and sales forecasts, on Monday at the launch event in Mumbai. Like auto makers the world over, Tata Motors is contending with slowing demand for its bread-and butter commercial vehicles in India as well as its luxury nameplates, Jaguar and Land Rover. The company plunged to its first quarterly net loss in seven years during the October-December 2008 quarter, and saw its debt cut by rating agencies. More pressingly, Tata Motors faces a June deadline to repay $2 billion in loans related to its Jaguar-Land Rover acquisition last year. Scrambling to raise money, it sold a 1.37% stake in group company Tata Steel Ltd. to Tata Sons Ltd., the parent of both Tata Motors and Tata Steel, for 3.59 billion rupees last year. Tata Motors is also laying plans to sell small stakes in six profitable unlisted units, according to local media reports. Undoubtedly, the Nano, with a 623-cubic centimeter, rear-gasoline-engine, symbolizes the global auto industry's rush to embrace affordable, lower-emission vehicles amid the economic expansion of developing nations from India to Brazil. Should the car succeed commercially, it could represent the coming-of-age of modern India's manufacturing prowess. But going by the auto industry's experience with small cars, the tiny upstart Nano won't be much of a money-spinner. Manufacturers have traditionally made razor-thin margins on smaller cars, using them to lure buyers only to try to up-sell them to more profitable makes as they grow in age and wealth. Indeed, the Nano's well-publicized affordability could prove to be a double-edged sword. On the one hand it might draw young and lower-income buyers. Yet it may be too low to significantly improve Tata Motors' consolidated revenue and profitability. Even if Tata Motors sells 100,000 Nano cars a year, it will still be insignificant for their overall profit and revenue. The car will make a fundamental difference to their financial performance. There's no place for a rating on Tata Motors shares. Other auto makers are pursuing their own versions of the Nano. Bajaj Auto Ltd., India's second-biggest motorcycle maker, is developing an inexpensive small car and have indicated they may join the low-price bandwagon. A company which controls half of India's car market through its joint venture Maruti Suzuki India Ltd., sells the 0.8-liter Maruti 800. The cheapest car in India for now it costs nearly twice as much as the Nano. The Nano is not seen as a game-changer today. In our current forecast scenario, people are hesitant to think about that. The (100,000 rupees) market price will be difficult to sustain over a long period of time given there is always a minimum material cost. India's enormous numbers of motorcycle buyers will upgrade to Nanos en masse because it's still more than three times the price of a modest two-wheeler and costs more to maintain. Initially, it may have an enthusiastic response but over time, the operating costs will tend to dampen that enthusiasm a bit. Generally it's a lot of publicity, it's a lot of brand recognition globally than actual volumes. Behind the marketing hoopla, the Nano has had its share of setbacks. Most notably a planned West Bengal manufacturing site in which Tata Motors had invested 15 billion rupees was abandoned last year following violent protests by a political party and farming groups over disputed land. The Nano will now be built, in batches and after a costly three-month delay, at existing Tata plants in Pune in western India and Pantnagar in the north; meantime, the company's investing about 20 billion rupees to build a dedicated Nano factory in Gujarat state. Ratan Tata, Tata Motors' chairman who heads the diversified Tata Group conglomerate, has said the Gujarat factory will have an initial capacity of 250,000 cars per year; that volume could eventually be doubled. But early production constraints will allow Tata Motors to build little more than 35,000 cars in 2009. The Nano's margin of profitability will be at least 5%, reflecting lower commodity prices and the federal government's excise-tax cuts on small cars in the past year. However, the Nano cost structure is based on high volumes. So, only when you make good use of the installed capacities, then you will start making good money on such products, which we believe will come only from fiscal year 2010-11 when we expect them to produce 300,000-400,000 units per year. Any kind of impact from the Nano on Tata's consolidated balance sheet would only come after 2-3 years.

NTPC to Add 3000 MW Capacity

NTPC Ltd., India's biggest power generator, plans to add 3,000 megawatts of capacity in the financial year beginning April 1, setting an expansion target 70% higher than what is likely to be achieved this year. The new capacity will come up at Dadri, Sipat, Korba, R.S. Sharma, chairman and managing director of the state-run company, told reporters on the sidelines of an industry conference in New Delhi.

Downturn Heightens China-India Tension on Trade

Shrinking Spats over toys, tires and iron ore are stoking tension between China and India, as the two Asian giants try to pry open each other's markets and soften the impact of the global economic slowdown.

China's exporters covet a growing India to help offset slowing demand from the U.S. Yet India is accusing Chinese companies of swamping its market with what it can't sell elsewhere, and has lodged antidumping cases against China at the World Trade Organization. The trade disputes are testing efforts to improve what's long been a prickly relationship between the two neighbors. We've always said the world is large enough for India and China, but we have a problem with a surge in exports that hurts Indian industry, said Indian commerce secretary, Gopal K. Pillai, in an interview. It's a cause for worry. On Thursday, officials from Indian and Chinese commerce ministries met in New Delhi to find common ground. The two governments agreed to set up a working group that would meet every few months on trade issues before they reach the WTO. Zhong Shan, China's vice trade minister, said Beijing wasn't considering retaliating against India, but didn't rule out taking future action at the WTO.

India briefly banned imports of Chinese-made toys this year. I believe both countries have the ability to talk through problems, he told reporters. Both economies can work out of the shadows of the current crisis together. The two nations often have touted their potential to join forces. Their growing economic heft and developing-country status could make them allies in setting prices for natural resources, partners at trade forums and big buyers of each other's goods, officials from both countries say. China is India's largest trade partner. Bilateral trade rose 34% to $51.78 billion in 2008 from the year earlier, according to Chinese government statistics. While trade has flourished, frictions haven't eased much and might be getting worse. Recent disputes highlight how tough times have hardened the economic rivalry. This year, India blocked Chinese toy imports for safety reasons before relaxing the ban for some products. On Wednesday, China raised India's toy ban during a WTO discussion on technical barriers to trade. India has about a dozen antidumping cases against China outstanding at the WTO, including investigations into export surges of truck tires and industrial chemicals. The disputes partly reflect the jostling of goliaths in a slowing global economy. India seems more reluctant than China to open domestic industries that haven't faced much foreign competition, according to Pranab K. Bardhan, an economist at the University of California, Berkeley who studies the Chinese and Indian economies. India is among the least globalized countries in the world, he says. India may not generate the same demand as the U.S., but its barriers to a big and growing market are cause for concern, says Wen Fude of the Institute of South Asian Studies at Sichuan University. Most of these trade frictions created by India towards China are unreasonable, he says. Indian officials counter that while China talks about free trade, what it practices is something different. Mr. Pillai, the commerce secretary, says Beijing subsidizes exporters, obstructs Indian farm imports and supports Chinese companies who prey upon vulnerable Indian industries. The fundamental problem is that China isn't a market economy, he says. A plaque at the commerce ministry entrance draws a clear distinction with its neighbor. India: Fastest Growing Free Market Democracy, it says.

Even in complementary trade areas, there have been problems recently. Indian trading companies have complained that Chinese steelmakers have backed away from orders of Indian iron ore after reducing production, causing major losses. Some see the potential for China and India to work through their differences by doing more business together. Having been through an infrastructure boom of its own, China could help India's build-out of roads, bridges and airports, according to Anil Gupta, a professor at University of Maryland and co-author of Getting China and India Right. Chinese executives who are doing business in India complain that distrust remains part of the commercial relationship. The two countries fought a 1962 border war, which India lost, and some of the territory between them remains unsettled. Chinese investments also have been subjected to rigorous security reviews; work visas have been a problem for some executives. Mr. Pillai says out of 38 proposals, only two Chinese projects have been rejected on security grounds; thousands of Chinese work in India without visa problems, he adds. India and China still are far from forging a broad economic alliance that some officials envision. Despite both countries clashing with the U.S. on farm imports at the Doha Round of trade talks, they continue to compete fiercely for export markets, energy assets and investment projects. Cooperation hasn't really worked, Mr. Pillai says.

What Obama's Economic Plans Mean for Indian Business: Obama administration isn't protectionist, neither is the U.S. Congress.

And Indian companies don't need to worry. My sense is the winds of protectionism are blowing a little harder on every continent as they always do in times of economic downturn, says John Veroneau, a former deputy U.S. Trade Representative and now a partner at the illustrious Washington law firm. But we won't see a sea change or anything significant. Reassuring words for Indian companies who are fretting over the Buy American" provisions of the new U.S. economic stimulus package and the ban on hiring H-1B visa workers at firms that receive financial bailout funds. Goods news, too, for any Indians seeking to take advantage of this country's relative economic strength and willing to ignore the rupee's weakness by making an acquisition in America. India is not China and doesn't generate the same political sensitivity says Dan Spiegel, a former U.S. permanent representative to the United Nations in Geneva and now of counsel to Covington. We don't see any opposition to Indian investment, he adds. Still, there are some specific areas where U.S. policy toward trade with India is likely to cool, if not freeze. And there are some key practical decisions coming that will help set the tone of the relationship for years to come. Let's get the H-1B issue out of the way. The annual allotment of 65,000 is very unlikely to go down, Mr. Veroneau says. But, we all agree, nor is it likely to rise. Considering that much of the debate in recent years had been over whether the U.S. would increase the number, that is hardly a result Indians can cheer. India is the biggest exporter to the U.S. under the program, according to a 2007 U.S. Trade Representative briefing paper, with a value of goods from auto parts to carpets totaling $3.4 billion. That happened with some Indian gold jewelry a while back. And it's not hard to envisage the program coming under intense scrutiny now, with pressure being applied to reinstate duties on Indian exports that compete with American-made products. It's already happening for PET resin, a polymer. How many other Indian exports could be hit? Another key test will be whether the U.S. and India go any further in negotiating a bilateral investment treaty. The aim is to encourage foreign direct investment by giving investors greater protection, including arbitration by a neutral party if their investments are expropriated. It also remains to be seen whether Indian companies will benefit from a massive health initiative contained in last month's U.S. economic stimulus package. That includes $20 billion to provide electronic health records for everyone in America by 2014, a massive undertaking that should throw up big opportunities for Indian software and technology companies given their expertise and experience in data-handling. But the all-important rules, regulations and interpretations governing that program have yet to be issued. It's not yet clear "to what degree foreign companies, including Indian companies, will be allowed to participate. In India to visit clients, the lawyers end our conversation on an upbeat note: President Barack Obama has a pro-science, hi-tech view of the world" as many leading Indian companies do. But whether this mind meld really benefits Indian companies will depend, as always, on the details.

Edited by jagdu - 16 years ago

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jagdu

@jagdu

Dazzler

Posted: 16 years ago

#252

From the horse's mouth:Pawan Munjal, MD, CEO Hero Honda

I set out to write this article on a late-winter Sunday, with my television on mute mode. However, I keep finding it difficult to keep my attention away from the TV screen, as iconic Indian cricketer Sachin Tendulkar tears apart a hapless New Zealand attack in Christchurch to score an unbeaten 163 to lead India to a massive total against the hosts in the third One Day International. With the Indian innings over, I try to concentrate on the article.

Pawan Munjal

Moments later, my writing hits a roadblock again, as another sports channel brings live images of Indian golfer Jyoti Randhawa firing a five-under 65 to clinch the Thailand Open for his eighth Asian Tour victory. My writing was to be interrupted yet again during the course of the day, as I watched with pride the youngest member of the Indian Davis Cup team, Somdev Devvarman, ranked 150 in the world, beat world no. 59 Lu Yen-Hsun in straight sets to take India into the third round of the Davis Cup. These victories for Indian sports in far corners of the world come on top of the Oscar wins and the Man Booker prize for Indians. These are exciting times to be an Indian; and to be in India. It's also a time for what people refer to as the "other India" rural India to emerge. The central government is pumping in funds to these areas for employment generation and infrastructure development. A key part of the rural population's ability to reach its new aspirations involves two-wheelers motorized ones and good old bicycles. Any discussion, however, on the two-wheeler industry today is usually punctuated by references to the imminent arrival of the so called "low-cost" cars which are perceived to pose a threat to two-wheelers.So is the low-cost car really a threat to the existence of two-wheelers? My answer is an emphatic no; two-wheelers are undoubtedly going to remain the dominant segment in India. I share the reasons for my confidence below: India on an average sells approximately seven million motorcycles and scooters every year compared to about 1.5 million passenger vehicles, making it the second biggest two-wheeler market in the world. And still, according to the latest estimates, only 23% of urban households and less than 10% of rural households own a two-wheeler. There are more than seven million new bicycle users every year in India, and most of them aspire to upgrade to two-wheelers. The growing aspirations, expanding road networks and growth of satellite townships are factors further spurring two-wheeler demand. In the long run, it is the two-wheeler which will continue to remain the vehicle of choice in India and the bulwark of consumer aspiration. The Indian consumer is highly price-conscious and assigns importance to factors such as acquisition costs (cost of ownership of two-wheelers is about one-third of an entry-level small car), higher fuel cost, higher maintenance cost and higher sundry charges including registration, insurance, parking, toll taxes etc. For the customer, fuel efficiency of the vehicle continues to be a significant 'influencer' in his purchase decision. India today is a young nation with a large percentage of its population below 35 years of age. The demographics are going to be further skewed in favor of the young over the next 15 years. Thanks to the boom in media and satellite TV, Indian youngsters are today exposed to global lifestyles, and in the process they have broadened their horizons. For youngsters, bikes are a style statement and not just a mode of transport. The two-wheeler industry is therefore likely to see further growth as more and more youngsters give expression to their lifestyle aspirations. Women are also going to play a pivotal role in further driving the growth of the two-wheeler industry. With more women working and public transportation not being able to meet the demands of the growing population, the two-wheeler will emerge as a convenient mode of transportation for many of them. We are selling about 12,000 units of our women-focused scooter Pleasure every month, and these numbers continue to swell at a fast pace. The debate on two-wheelers versus low-cost cars has perhaps become more intense in view of the recent slowdown in the domestic two-wheeler industry. Let me address this issue too. The slowdown in our industry has primarily been on account of the high interest rates and an overall credit squeeze. That has taken a toll, for sure. But, on the brighter side, sales are far outpacing the industry average. In the month of February alone, our growth was an encouraging 24%. I see two-wheelers permeating the remotest villages of India, I see women going to work on scooters, I see more satellite towns developing as people travel on their bikes for work, I see small business men and traders conducting their businesses using their bikes as the medium, and in all this I see the vision of a dynamic, mobile and a well-connected India. It is the two-wheeler industry that will pry open consumer aspirations and build a base for low-cost cars if at all; but not without the ever-burgeoning market that two-wheelers will always create and sustain. The story of the two-wheeler industry in India is not about market share yet it is about market creation.

Air India Gets Bids From 12 Lenders for Loan

Air India, the country's flag carrier, has received 12 bids from local and foreign lenders to raise a $1.04 billion loan to finance the purchase of 10 Boeing Co. planes, a senior executive at the state-run airline said. The bids include those for a $136 million loan sought by the airline's unit Air India Charters Ltd. to pay for the purchase of three Boeing 737-800 planes, the executive, the last date for submitting bids.

Tata Will Sell Inexpensive Car by Lottery

Indian Company Expects Millions of Orders for First 100,000 of Nano

Tata Motors Ltd. will sell the world's cheapest car through a lottery, as production in India gears up for anticipated demand at home and overseas. Executives at Tata Motors, India's largest automobile company, said they would start accepting order forms and deposits next month for the snub-nosed Nano. From the millions of orders expected, it will use a computer to randomly choose who in India gets the first 100,000 cars. At around 100,000 rupees, or about $2,000, the Nano is the cheapest mass-produced car in the world.

Mumbai Gunman Kasab Says He Is a Pakistani National

The only gunman charged in last year's terror attacks in Mumbai told an Indian court Monday, the first day of court proceedings, that he would agree to a government-provided lawyer and also repeated that he was a Pakistani national. The gunman identified by police as Mohammed Ajmal Kasab walks through Mumbai's main train station, where more than 40 people were killed.

Mohammed Ajmal Kasab, captured during the attacks and jailed ever since, addressed the court via video link from prison because of concerns he poses too great a security risk to appear in person. This was his second such appearance. Special judge M.L. Tahiliyani asked Mr. Kasab to identify himself and asked him where he was from. Mr. Kasab replied that he was from Faridkot, in Pakistan's Punjab province. Mr. Tahiliyani asked Mr. Kasab if he could see him clearly through the video link and then introduced himself as the judge heading his trial. Mr. Kasab, who looked relaxed and was dressed in a gray tunic and loose pants, said, "Namaste," a popular Hindu greeting. Mr.Kasab told the court that he had no legal counsel so far and when Mr. Tahiliyani asked if he would like the court to provide him with a lawyer, he said, "Do whatever you think is right." Mr. Kasab, 21, was charged last month with 12 criminal counts, including murder and waging war against India and could face the death penalty if convicted. Nine other attackers were killed during the three-day siege in November, which left 164 people dead and targeted luxury hotels, a Jewish center and other sites across the city. India has blamed the attack on Lashkar-e-Taiba, an Islamist militant group widely believed created by Pakistani intelligence agencies in the 1980s to fight Indian rule in the divided Kashmir region. Last month, Pakistani officials acknowledged that the attacks were partly plotted on their soil and announced criminal proceedings against eight suspects. They also acknowledged that Mr. Kasab is a Pakistani national. The trial was supposed to be conducted by a special court in Mumbai's Arthur Road jail, where Mr. Kasab is housed. On Monday, however, special public prosecutor Ujjwal Nikam also asked the court to delay the trial for a brief period because the security infrastructure in the prison was not ready. The judge is expected to announce a date for the next hearing later Monday. Mr. Nikam had said last month that he expected the trial to conclude within six months, unusually swift for India, where the legal process can drag on for decades. The trial in India's deadliest terror attack, the 1993 Mumbai bombings that killed 257 people, took 14 years to complete.

Spice has second thoughts on Satyam buy

The Spice Group, which has been short-listed as one of the bidders for Satyam, is having second thoughts and planning to re-evaluate its interest in the scam-tainted firm. Spice Innovative, which has put in an expression of interest for the company, will hold a board meeting to discuss the issue.

India Investigates Wyeth Vaccine Trial

A scan of the health news this morning reminds us of Asia's central role in the 21st century drug business and the difficult issues that come with globalization. India, where drug regulators have determined that a baby who died last fall in a clinical study should have been excluded from the trial because of pre-existing health problems, The study, comparing Wyeth's Prevnar vaccine against a newer version of the vaccine, was halted after the girl's death. India has become key sites for drug trials, with many studies going on in India alone. Companies like going overseas in part because research can be performed more cheaply. The countries tend to welcome the business research brings, and the chance for poor patients to receive care they might not otherwise get. But problems like the death of an infant in the Wyeth trial can be cause for doubt. We're very supportive of what Wyeth is doing,the drugs controller general of India told. But if one of the best multinational companies in the world following the best ethical practices has these problems, what is going on down the line? Supervisory shortcomings, rather than problems with a vaccine itself, led to the death of a baby girl in India last fall during a Wyeth clinical trial, according to an official investigation by India's top drug regulator. The findings by the Drugs Controller General of India are likely to add to concerns about how well Western pharmaceutical companies oversee human testing of potential new medicines in developing countries.The 3-month-old infant received the approved version of Prevnar now in use not an experimental version, Wyeth said. But she was sick with a cough and diarrhea and had an underlying heart condition.

Edited by jagdu - 16 years ago

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jagdu

@jagdu

Dazzler

Posted: 16 years ago

#253

Economy will rebound in 6-7 months: PM

With farmers incomes' increasing despite inflation nearing zero, Prime Minister Manmohan Singh on Tuesday exuded confidence that the economy would revive in a big way in 6-7 months as the stimulus packages work their way through the system in and demand expands. I am confident that because of the stimulus that our government has announced.

Great Expectations

IBM headquarters.

The company that currently accounts for the largest percentage of the Dow industrials, IBM Corp., is not immune to the global slowdown. The company was accounting for 5000 jobs in its global-business services unit that their jobs are being eliminated many of which will be transferred to India. The company has not commented, but it is expected to begin making the announcements Thursday. IBM has weathered the decline in demand better than many other technology companies, in part because the tech giant derives a large portion of its revenue from existing service contracts, and those are slower to decline than sales of various products. In January, the company reported a 12% increase in profit despite a fall in sales, an indication that cost controls are a primary driver of per-share revenue. The company still expects to report earnings of $9.20 a share for the year. For the year, the stock is up 16%,

Kuwait Zain Exploring Buy in India Telecom Sector

Kuwait's Mobile Telecommunications Co., or Zain Group, said it is looking for an acquisition in India to enter the fastest growing telecommunications market in the world.

Prices in India: A Tale of Two Measures

Inflation could start complicating the picture for India's central bank. And the country's government could be to blame. Economists watching India rely on an uncommon measure to benchmark domestic inflation: wholesale prices rather than consumer prices. The latest reading of WPI, a weekly measure, stood at 0.44%, a record low. This is welcome news for those looking for more interest rate cuts by the RBI.

Edited by jagdu - 16 years ago

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jagdu

@jagdu

Dazzler

Posted: 16 years ago

#254

IBM to Cut U.S. Jobs, Expand in India

International Business Machines Corp. plans to lay off about 5,000 U.S. employees, with many of the jobs being transferred to India, according to people familiar with the situation. The technology giant has been steadily building its work force in India and other locations while reducing the number of workers based in the U.S. Foreign workers accounted for 71% of Big Blue's nearly 400,000 employees at the start of the year, up from about 65% in 2006. The latest round of cuts target the company's global business-services unit, which does everything from running corporate data centers to managing human resources.

RBI Says Lending Rates Should Come Down

Interest rates in India should come down with the central bank's policy stance reflecting in commercial lending for the country to be competitive, the Reserve Bank of India governor said Thursday. Reserve Bank can only do so much, D. Subbarao said at an industry event in New Delhi. We are a monetary authority and we set the policy rates. That policy rate has to transmit to the banks. India Inflation at New Low. India's weekly inflation rate Thursday edged closer to zero and is widely expected to fall further in coming weeks, raising the likelihood of more rate cuts by the central bank. As measured by the wholesale price index, the inflation rate cooled to a new low of 0.27% in the week ended March 14 from 0.44% a week earlier, data issued by the Ministry of Commerce and Industry showed. It was above the median 0.13% forecast in a poll of seven economists.

Tempting Tourists in Tumultuous Times

There is no denying the fact that the Indian travel and tourism industry has seen sunnier days. The double whammy delivered by the global slowdown and the reverberations of the Bombay attacks have left the industry battered. Most airlines have cut back on their scheduled frequency of flights as a defensive move to counter the reduced demand. Hotels are worse off, their peak winter season ravaged by the lowest occupancy levels ever.

Deep Kalra, chief executive of a travel agency

Still, the industry will bounce back before other sectors of the economy. Faith stems from an insider's understanding of the market rather than oblique optimism. Thanks to the ingenuity of certain private players, the industry has evolved and grown rapidly over the last two decades. The challenges currently are very severe and will need equally bold measures to counter them. Focus on stimulating demand for both domestic and inbound travel. It's time to question age-old dogmas like reciprocal visas for all countries including developed nations. Citizens of North America and Western Europe are looking to illegally migrate to India? A bold move like granting visa-on-arrival for our leading foreign tourist-generating countries will send a much needed positive signal to the global travel community. Overcoming stereotypical notions of right and wrong is another issue that needs to be dealt with. Government has shunned casinos as a social taboo, only to ensure that millions of Indians flock to Macau, Sun City, Kathmandu and the like with alarming frequency. It's time to wake up and understand the modern tourist's needs. Culture and sight-seeing is great for the day but evenings bereft of nightlife and even casinos can be a turn-off for both international and domestic tourists. A liberalized policy towards casinos can provide the kicker required for many of our languishing tourist destinations. India is gifted with an abundance of heritage, culture and scenic beauty. However, it's the glaring gaps in infrastructure and amenities that have kept tourism numbers so abysmally low. In addition to fixing the obvious lacunae, focusing on novel products like medical, health and spiritual tourism can provide the necessary boost to demand if executed properly. Another baffling aspect of industry is how difficult it is to reach most holy shrines in India. And once you get there, the experience may be comforting for the soul, but that's about it! The authorities would do well to learn from the overall visitor experience afforded by religious destinations in other parts of the world. So why remain optimistic? Because there are several examples of innovation in the travel industry that provide hope for the future. Here are some of them: The 'phoren' holidays business in India has morphed dramatically over the last two decades. Prior to the 90's, the only folks who managed to vacation overseas were decidedly upper crust, English-speaking gentry who had access to coveted foreign exchange during their sojourns. With the economy opening up in the 90's and the country's forex reserves reaching comfortable levels, two innovative home-grown tour operators seized the initiative. The industry pioneered the concept of 'Packaged' tours. Each group of approximately 40 passengers travelled together, mostly by luxury coach, accompanied by a tour guide who spoke their native language. Taking the innovation one level further, these operators introduced Indian and pure vegetarian meals throughout the trip. An Indian maharaj (chef) ensured you got your steaming pav-bhaaji amid the Alpine splendor of the Swiss countryside. Around the same time, chefs perfected the supply chain by institutionalizing the Kitchen Caravan a fully equipped kitchen on wheels that trailed the tourist coach, bringing the Vada-Pav and Idli-Dosa even closer. One has to visit any popular Swiss town in summer to understand the full impact of these innovations. Engelberg, in the foothills of the mighty Mount Titlis, gets transformed into Little India. Even the post boxes bear signs in Hindi and Gujarati! These companies introduced attractive marketing schemes like wife and kids travel free and the foreign trip market was transformed forever. While the trailblazing JRD Tata gave us what we know as Air India today and Naresh Goyal gave us an airline Jet Airways to be proud of, it's the visionary Captain Gopinath or Gopi to his friends who ignited an otherwise sleepy industry. For decades the Indian skies were dominated by Jet Airways and Indian Airlines with a little spice being added by the blow-hot, blow-cold Air Sahara. Prices were largely undifferentiated and the traveler paid what the carrier demanded. So much so, the price per air mile flown in India was the highest anywhere in the world. This naturally kept the masses on the trains and air travel was truly a luxury for the privileged few till 2004. That's when Gopi unleashed India's first low cost carrier, Air Deccan, and tempted the common man to step aboard. With fares lower than Air Conditioned train travel, the profile of air travelers changed dramatically. Of course, the discount airlines brought with them their own share of gaffes, and one soon got used to the familiar aroma of parathas and pickle pervading the sanitized cabins. In Gopi's own words, his big idea took flight when he noticed scores of shiny TV dish antennae in every little town he flew over while operating his tiny private chopper service. Gopi, checked out of the industry some time back, but not before letting the cat among the pigeons with your path-breaking Air Deccan. It is visionaries such as those mentioned above who give the confidence that Indian travel and tourism will find a way to bounce back from the current morass.

SAIL, Tata Steel Expect India Steel Demand to Rise

Steel Authority of India Ltd. and Tata Steel Ltd. said Thursday steel sales will likely climb in the quarter through March on a rise in demand from key sectors, including automobiles and construction. Sales in March are going to be higher than March last year and will also do better than February.

First Obama-Singh meeting to take place in London on April 2

President Barack Obama looks forward to advancing and strengthening US ties with India, White House spokesman has said, setting a positive tone for the maiden meeting between Obama and Prime Minister Manmohan Singh in London on April 2.

Hero Honda Expects to Sell 3.72 Million Vehicles

Hero Honda Motors Ltd. expects to sell about a record 3.72 million motorcycles and scooters in the current financial year through March, helped by the introduction of new models and expansion into rural areas, a senior company executive said Thursday. We should sell about 350,000 units in March, and end the year with about 3.72 million vehicles, Ravi Sud, chief financial officer of India's biggest motorcycle maker by sales told .

Ganguly Unsure of Buchanan's Concept

John Buchanan's revolutionary thinking on cricket has caught another one of the game's leading players off guard. John Buchanan, who guided Australia to two World Cup titles and on two world-record winning streaks in the test arena after replacing former test opener Geoff Marsh as coach in 1999, wants to rotate the captaincy of his Indian Premier League franchise during different phases of a match. There were times when Shane Warne, the legendary leg spin bowler who retired from international cricket in 2007 as the leading all-time wicket taker in tests, didn't agree with Buchanan's left-field ideas.Taylor, Ryder Tons Lift New Zealand NAPIER, New Zealand Ross Taylor scored his third test century and Jesse Ryder his second in a record 271-run fourth-wicket partnership which lifted New Zealand out of trouble and to 351 for four at stumps on the first day of the second cricket against India. New Zealand's Jamie How is bowled by India's Zaheer Khan during their second international cricket test match in Napier, Mar. 26, 2009.

Ross Taylor and Jesse Ryder were thrown together in only the 11th over Thursday, with New Zealand's innings in collapse at 23 for three. They pursued their partnership for the next 58.2 overs to lift the home side to 294-4 before Taylor was out for 151. The partnership was the highest by a New Zealand pair for all wickets against India, beating 231, and the highest for New Zealand's fourth wicket against all nations, beating the previous mark of 241. Jesse Ryder was unbeaten on 137 at stumps, having batted more than seven hours for his second century in consecutive tests after his 102 at Hamilton, where India won by 10 wickets. Ross Taylor's century was his first in five tests, since his 115 against Australia at Brisbane in November, and came within 18 runs of his highest score of 169, made against England at Old Trafford 10 months ago. Ross Taylor struggled to curb his aggressive nature and offered chances throughout his innings before finally lofting an attempted sweep to Yuvraj Singh on the square leg boundary off Harbhajan Singh in the final session. Jesse Ryder, in contrast, played a composed and technically expert innings, limiting his scoring shots to precise and predetermined areas and offering few opportunities to the fielding side. India captain Mahendra Singh Dhoni was ruled out of the match Thursday with a back injury, handing the captaincy to Virender Sehwag who led India for only the second time in a test. Ross Taylor's innings of 262 minutes and 204 balls was still the foundation of New Zealand's strong position at stumps on day one. He had come to the crease when New Zealand was in the throes of its early collapse and was the first batsman to offer resistance to India's attack. I think I was a bit more nervous than normal, Ross Taylor said. I haven't had a score for a while in the test arena so I was happy to get one today. I put a lot of pressure on myself with goals and high standards and the way I've played over the last few months hasn't lived up to those standards. This wasn't the best hundred I've got but it was good to get there. Ross Taylor praised Jesse Ryder's contribution. A lot credit has to go to Jesse, he said. I think he played outstandingly well and to still be there, after over six hours, he's been great. He played a big part in my innings today. He kept me going and I have to thank him. Jesse Ryder and Ross Taylor batted for more than two full sessions to change the course of the opening day and to answer captain Daniel Vettori's call on batsmen to occupy the crease for long periods. It was a message lost on New Zealand's top order as Tim McIntosh was out, unluckily, for 12, Jamie How for 1 and Martin Guptill for 8.

India Plans to Borrow $47.72 Billion

India plans to borrow 2.41 trillion rupees ($47.72 billion) in the first-half of the next financial year starting April 1, signaling the government's aim to spend heavily to pump prime the economy. Borrowing in the first-half is higher because of more redemption, Ashok Chawla, economic affairs secretary told reporters. The federal government will redeem around 1 trillion rupees of sovereign debt.

Spice Group Says No Decision Yet on Satyam Bid

India's Spice Group is yet to decide on whether to bid for Satyam Computer Services Ltd. as it awaits more information including on its rival bidders, Chairman B.K. Modi said Thursday. We are unhappy about the lack of transparency in the sale he said.

Edited by jagdu - 16 years ago

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jagdu

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Posted: 16 years ago

#255

Raju disclosed only part of Satyam fraud: CBI

The CBI on Thursday said it would like to subject Satyam Computer's disgraced founder Ramalinga Raju to a lie-detector test, as it feels he has not shared everything about the accounting scam in the company. CBI Director Ashwani Kumar said the Satyam fraud was unique, as it was the founder, and not an outsider, who is the accused.

Honda India Unit Expects 1.25 Million Two-Wheeler Sales

Honda Motorcycle and Scooter India Pvt. Ltd. Friday said it expects sales of its two-wheelers to rise 18% to 1.25 million units in the financial year beginning April 1 as it expands its reach in the country. Also, Honda Motorcycle a wholly owned unit of Japan's Honda Motor Co. will top its target of selling a million units this financial year through March 31, said N.K. Rattan, the company's head for sales and marketing. We have grown 17% on year with sales expected to reach 1.06 million by March 31, Mr. Rattan said.

ICICI broking unit overseas expansion on hold

ICICI Securities, the broking and advisory unit of India's ICICI Bank has put its international expansion on hold due to the downturn in global markets, but has no plans for job cuts, a top official said.

Webel-SL Energy to Start Second Solar Panel Plant

Webel-SL Energy Systems Ltd. Friday said it is investing around 1.8 billion rupees ($35.7 million) to build a second factory in eastern India to manufacture solar photovoltaic cells as it seeks to tap into rising global demand for clean energy.

Ryder's Double Ton Puts New Zealand in Command

r reached 201 before New Zealand's declaration at 619 for nine wickets Friday on the second day of the second cricket test against India. India was in trouble at stumps in reply, with New Zealand captain Daniel Vettori claiming two wickets to reduce India to 79-3 after 23 overs. Daniel Vettori declared New Zealand's first innings with 90 minutes remaining in the second day's play at McLean Park. Brendon McCullum scored 115, Daniel Vettori 55 and James Franklin 52, following Ross Taylor's 151 on the first day, as New Zealand, trailing 1-0 in the three-match series, compiled its third-highest test total. Daniel Vettori joined the New Zealand attack after only nine overs and removed Virender Sehwag for 34 and nightwatchman Ishant Sharma for 0, then took a catch from offspinner Jeetan Patel to dismiss Gautam Gambhir for 16. Jesse Ryder was the star of the day, however, resuming his innings at 137 not out and batting for just over eight hours to raise the third double century and third-highest score by a New Zealander against India. The stocky left-hander, whose only other test century (102) came two innings previously in the first innings of the first test at Hamilton, was then out to the next ball, bowled off an inside edge by Zaheer Khan. His innings market the 15th test double century by a New Zealand player. Jesse Ryder was also out one ball after achieving his century in the Hamilton test, won by India by 10 wickets, but in combination, across three innings in the series so far, has batted more than 13 hours for 324 runs. He has now scored 50 or more in four of his last five test innings, including two centuries, and has averaged 132 over a prolific period which began with his 89 in the first innings of the first test against the West Indies in December. At the end of his innings Friday, he was averaging 64 with two centuries and four half centuries in a test career of only eight matches and 14 innings. I'm pretty much speechless, Jesse Ryder said. I wasn't expecting to go out and score a double century. I just knuckled down and played my game and it came off. The last two days just showed we're capable of getting big totals. Jesse Ryder began his marathon vigil when New Zealand was 23-3 in the 11th over Thursday, after winning the toss and batting. He shared partnerships of 271 for the fourth wicket with Ross Taylor, 121 for the fifth wicket with James Franklin, run out for 52 before lunch, and finally 62 for the sixth wicket with Brendon McCullum. Brendon McCullum reached his third century in tests three balls before tea and went on to make 115 in a 128-run partnership with Daniel Vettori for the seventh wicket. His century came from 131 balls in 141 minutes and contained 11 fours. Daniel Vettori reached a half century, after Brendon McCullum's dismissal, in 94 minutes with five fours while James Franklin had earlier raised his half century in 164 minutes with seven fours, batting through the vital late stages of the first day and early stages of the second. Jesse Ryder's concentration never wavered throughout the 488 minutes of his innings until, immediately after his double century was raised, he played a loose shot and was bowled by Zaheer Khan. He left the field displaying considerable anger and frustration at the lapse. I was greedy and wanted to score more runs, he said. I was disappointed with myself to get out in that fashion. Jesse Ryder hit 24 fours and a six in a disciplined innings, taking his boundaries from his favorite scoring shots and through optimum scoring areas between backward point and extra cover. Jesse Ryder has battled issues off the field throughout his career, losing his place in the New Zealand team last year when he injured his hand punching a window in a Christchurch bar. He was dropped again during a limited-overs series against the West Indies in December when he missed a team meeting and training session after a late-night drinking session.

India Advisers Seek More Stimulus to Boost Economy

India may have to take more stimulus measures despite a widening fiscal deficit and cut interest rates further to avert a sharp economic slowdown, the government's top advisers said Friday. Speaking at lobby group Confederation of Indian Industry's annual summit, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the local economy could grow only 6.5% in the current financial year ending March 31.

MMTC Expects Commodity Bourse June, Forex Bourse July

India's fourth national commodities exchange and a new currency exchange are likely to start operations in June and July respectively, MMTC Ltd., a partner in both the ventures, said Friday. The state-run trading house is partnering Indiabulls Financial Services in the commodities exchange.

Edited by jagdu - 16 years ago

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jagdu

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Posted: 16 years ago

#256

Gandhi Family Scion Targets Youth Vote

Congress Party Seeks to Pull Ahead

Rahul Gandhi, whose family has ruled India off and on through three generations and who is often mentioned as a future prime minister, embarks Tuesday on a national campaign to retain his party's hold on power by courting the young.

Rahul Gandhi, member of parliament and son of India's ruling Congress party leader Sonia Gandhi, waves to supporters.

Mr. Gandhi will begin campaigning ahead of monthlong national elections beginning April 16. His packed itinerary aims to drum up enough votes for his Indian National Congress party to maintain control of a governing coalition in parliament. Mr. Gandhi also is seeking re-election to parliament along with his mother, Sonia, who leads the party and India's governing coalition, the United Progressive Alliance. In an election that so far has produced no clear front-runners or favoritesand may well be decided by alliances and coalitions settled after results are counted May 16 Mr. Gandhi's role has assumed prominence. The 38-year-old politician is aggressively going after the young but not-so-politically-engaged. Although three-quarters of India's population is less than 35 years old, more than half of India's national parliament is older than 56. The result so far has been a discordant scramble to connect with India's youth. While Mr. Gandhi has said he isn't a candidate for prime minister, his boyish face adorns campaign posters for the Indian National Congress beside those of his 62-year- old mother and the 77-year-old Oxford-educated prime minister, economist Manmohan Singh.

Power Players

See the Indian politicians who will define the outcome of the largest electoral vote in history. Mr. Singh's chief challenger for the prime minister's post is L.K. Advani, the 81-year-old leader of the opposition Bharatiya Janata Party, or BJP, who has become an active blogger on politics, poetry and music. My young colleagues who have created this Web site told me that a political portal without a blog is like a letter without a signature, Mr. Advani said in a January post. I quickly accepted this compelling logic. The Congress party and the BJP are India's two national parties. The world's largest democracy also has spawned scores of smaller regional parties, some of which have pledged to join with leftist politicians to form an alternative national alliance, known as the Third Front. The Indian government that emerges in May will face a raft of challenges. The country's economy is slowing and its deficit growing; the terrorist attack in Mumbai late last year punctuated a series of recent bomb blasts in cities across the country in recent months and underlined security worries; and rampant corruption has fed a general sense of political disillusionment. Mr. Gandhi, who heads the Congress party's youth wing, wants to reinvigorate government with more young people. He is working through local youth organizations to introduce younger parliamentary candidates, but progress has been slow. Congress party politicians say Mr. Gandhi has faced opposition from senior leaders who aren't ready to move aside. I'm doing what I can to ease youngsters into politics, he said at a recent press conference in the southern state of Tamil Nadu. I actually enjoy this work. I find it gratifying.

Rahul Gandhi greets a crowd during a visit to Ahmadabad, India, in February. On Tuesday he begins a campaign seeking re-election to parliament.

Still, it isn't clear whether the sandy-haired scion of a political dynasty is a fresh enough face to make a difference. Mr. Gandhi descends from a family intertwined with the politics and tragedies of a nation, much like the Bhuttos of Pakistan or the Kennedys of America. Mr. Gandhi's great-grandfather was Jawaharlal Nehru, India's first prime minister. His grandmother was Indira Gandhi, who served as India's only female prime minister. His father, Rajiv, also held the top post, but both his grandmother and father were assassinated. Mr. Gandhi's mother, Sonia, who later took the helm of the Congress party, refused to become prime minister even after she led her party to victory in the last national elections in 2004. Mr. Advani's advisers suggest Mr. Gandhi may not be ready for prime time, let alone for the prime minister's job. His recent tour of India's poorest areas, which the media billed as the Discover India tour, suggests a steep learning curve before he is ready to run the country, said Sudheendra Kulkarni, a top campaign strategist for Mr. Advani. Rahul Gandhi is still discovering India, he said. Let him discover.

2. SBI Mutual Fund launched Monday a gold exchange-traded fund - India's sixth - and said it expects the plan to collect 1.5 billion rupees ($29.7 million) to 2.0 billion rupees of investments initially.

3. India should have a gradual approach to introducing more financial market reforms, including opening up the economy further to foreign banks and allowing more overseas investment in local debt instruments, a panel formed to assess the country's financial sector said Monday.

4. The recommendations come amid the global financial market turmoil and ahead of a crucial roadmap for foreign banks to be outlined by the Reserve Bank of India.

5. Godrej Consumer Products Ltd. is looking for acquisitions worth up to $1 billion abroad as the Indian soap and hair color maker wants to sell its products in countries like China, Brazil and Nigeria, Chairman Adi Godrej said. We won't go for anything very tiny, but if the acquisition is over $15 million, we would look at it, Mr. Godrej told in a recent interview. On the upper side, we would look at something up to maybe a billion dollars. He said the company would also look at acquisitions in countries like Indonesia, the Philippines.

6. The transmission and distribution division of French nuclear engineering group Areva S.A. said Monday it will start operations at eight new factories in India this week as it tries to capitalize on rising demand for energy in the world's second-fastest growing major economy. Areva has invested nearly 9.5 billion rupees ($188.1 million) to build the plants for producing transformers and other power equipment. Four of the plants began operations.

7. The self employed: Capitalism runs on sentiment as much as money. Almost daily doses of bad news on television screens and newspapers have possibly done as much damage to the economy as the events on either side of the Atlantic. The biggest consumers and believers in this news are the salaried class people who work in large companies that are integrated with the global markets.

Being the biggest consumers of media, they are also the largest consumer segment for Indian marketers. And companies that are catering to this segment have seen weakening consumer sentiment and sluggish sales. However, hidden behind the consumer statistics of most marketers is a segment that is largely ignored. Yet they form an overwhelming majority of Indian consumers. They are the self-employed Indians. Our economy is not that of wage earners and shareholders. A significant portion of the economy consists of the self-employed. The share of the national income represented by proprietor-run concerns and partnerships is 35%. The share of companies is around 15%, government around 25%, and agriculture around 25%. Combine agriculture and the self-employed in industry and the service sector and nearly 60% of the national income is generated by the self-employed. They form the largest consumer segment in almost every city outside the major metropolises. Removed from financial markets and distant from the IT companies and transnational conglomerates that are integrated into the global economy, The self-employed the least affected by the slowdown sentiment. They neither fear job losses nor a shrinking global marketplace. Instead they are businessmen and entrepreneurs who are selling tangible products to real local customers who are paying in hard currency. They are shop owners, small traders, first-generation entrepreneurs and self-employed professionals. And their sense of identity, behavior and fashion sensibilities make them quite different from their salaried cousins in large metros. For the salaried class in urban India, the company they work for or their designation precedes their introduction and identity. The self-employed, in contrast, don't carry a visiting card. Instead a gold chain, an expensive watch or a luxury car even if it is second hand and imported from the large metros helps them make a statement and boost their identity. Dresses that many in the large cities may find loud and garish are perfectly desirable in the smaller towns. Unlike salary earners, the self-employed use products much more to signal success. Self-employed people want to stand-out rather than blend into the crowd, as the salaried classes typically do. The self-employed businessman also is far sharper at evaluating "deals" offered by marketers. Too many offers and promotions or an overt attempt at creativity and humor in communication can lead him to question the real value offered. Unlike professionals who have migrated to the metropolis, the self-employed live with their joint families. The average ticket size of any purchase is quite high. The availability of ready cash is also higher among the self-employed, making it easier to sell higher ticket items. They have little time for credit cards. And a shopping trip can take place any time, on any day of the month. It is not concentrated on weekends or at the beginning of the month as it is with the salaried class. All these differences increase once you start to factor in regional and cultural diversity across our country. But the reality is that customer strategies, communications and customer profiling are done by salaried professionals based out of their head offices in the large cities. And invariably, we fail to take into account the needs, aspirations, sentiments and subtle nuances of marketing to and communicating with the self-employed. Yet self-employed consumers could well be the solution to revive the sluggish sales of most companies. For that, we need to understand and respect their tastes and preferences. They are not only the least affected by the economic downturn, they are there in the greatest numbers. Remember, only one out of every 14 Indians has a salaried job.

India save test. Gautam Gambhir batted nearly 11 hours for 137 and V.V.S. Laxman made a stylish 124 not out as India reached 476 for four Monday to draw the second cricket test against New Zealand, consolidating a 1-0 series lead. Gautam Gambhir's innings secured the draw for India, sharing partnerships of 133 for the second wicket with Rahul Dravid (62), 97 with Sachin Tendulkar (64) and 96 with V.V.S. Laxman. He was out in the 160th over of the innings, at 356 for four, having made the match safe for the Indian lineup which was forced to follow on.

State Bank of India: State-owned State Bank of India is lending like the global credit crisis never happened as it looks for places to park billions of dollars in new deposits.

Consumers have shifted tens of billions of dollars to India's state-run banks amid the bailouts of the world's most sophisticated financial institutions and concerns that global problems could infect India's private-sector banks.

[State Bank of India -- Has Cash, Will Lend ]

A poster for State Bank of India touts lending for businesses in a nationwide ad campaign seeking to grab market share from rivals.

State Bank of India has been the biggest beneficiary of that trend. It is India's largest bank by assets, including private-sector lenders, and is 60% owned by the government, but has remained a traditional lender rather than expanding into other financial instruments that sank many international banks. That conservatism saw its deposit base swell by close to 40% in the three months ended Dec. 31. Now, it is on a lending spree, cutting interest rates on loans, snatching customers from competitors and doing its part to prevent India from getting stuck in the global slowdown. Subhra Chatterjee, 39 years old and a cellphone company employee in Kolkata, used to have his savings account and his home loan with anotehr bank, India's largest private-sector bank. He appreciated it's telephone-banking and online-banking services as well as their bright branches. But in the last six months, his view of private-sector banks has soured as he watched banks elsewhere implode. This month, he flipped his savings and his $40,000 home loan to State Bank of India. People are disillusioned with the private-sector banks and all the charisma that was originally coming out of the private sector,he said. State Bank is extremely cash rich. That is why I changed to them. V. Vaidyanathan, executive director of that Bank, said in an interview that the rise in deposits at state-run banks has more to do with the higher deposit rates and lower lending rates they are offering than with a flight to quality. He also noted that while liquidity late last year was tight for many banks, deposits are increasing again. Lending by foreign banks in India increased by 16.9% in 2008, compared with 30.7% in 2007, while lending by private-sector banks rose 11.8% in 2008, compared with 24.2%. While banks in the U.S. and elsewhere are cutting back, State Bank of India is expanding. It hired 25,000 workers in the past year, plans to hire 10,000 in the coming year, and is adding 4,000 ATMs and 2,000 branches to its network of almost 10,000. The health of State Bank of India and India's other state-controlled banks, plus their willingness to ratchet up lending in tough times are reasons why India's growth is relatively healthy compared with other economies. In the coming year, India's economy is expected to expand at 6%, down from close to 9% a couple of years ago. Over the weekend Indian Prime Minister Manmohan Singh said the country's needs its banks to lower lending rates further following repeated monetary-easing measures by the central bank. With ample liquidity and low inflation, there is scope, perhaps, for a further moderation in interest rates, he told a meeting of Indian business leaders Saturday. State Bank's history goes back more than 200 years to India's days as a British colony. After independence, the government took it over, and the bank has been expected since then to act in the interest of uplifting the people of India. That used to mean it had to give loans that it didn't expect to get back or set up branches in sparsely populated rural areas that couldn't support them. In the last 15 years, though, as India reformed its economy, State Bank has received more independence from the government to boost its profits and modernize its branches to compete with private-sector banks. The bank's cash glut is behind its latest move to cut interest rates and promote home loans, car loans and small-business loans. Its mortgage-loan rates are 8%, more than two percentage points below some of its competitors. It has matched that with a nationwide advertising campaign. Economy Booming or Slowing, SBI Keeps Your Business Moving, says one of the bank's posters. State Bank said around 60% of its new loans are taken over from competitors. The quantum of deposits that flowed in was very large. Now they are lending reasonably aggressively. Lending at State Bank and other public-sector banks rose 29% last year, up from 20% in 2007. State Bank plans to use some consumers' yearning for safety to claw back some of the market share it has lost in the last decade. The company is sitting on close to $20 billion in cash above the amount it needs to operate. And if it can take advantage of its strong competitive position now, it could emerge from the downturn far stronger. The bank also is using the surge in business to upgrade some of its branches. At a branch in the heart of old Mumbai, halfway between the Bombay Stock Exchange and India's central bank, some clerks still sit under electric fans. Long lines of customers wait their turn, and banking hours run from 10:30 a.m. to 4:30 p.m. Just across the street, another brightly lit, air-conditioned Bank branch is open from 8 a.m. to 8 p.m. On a nearby corner, two other bank franchises also provide cheerier alternatives. State Bank is repainting its branches with a uniform color scheme, adding air conditioning, televisions and an electronic token system to move customers faster. We are asking people to smile more often, said a general manager at State Bank's headquarters in Mumbai. We want our people to be more customer-friendly. It is the stability, not the smiles, that is luring customers. Foreign banks said they often can't compete with State Bank of India's rates. Growth in lending by foreign banks slowed to 17% last year from 31% in 2007. State Bank of India shares have shed about 35% of their value over the last 12 months.

Edited by jagdu - 16 years ago

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jagdu

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Posted: 16 years ago

#257

Boeing Co. reiterated Tuesday that it doesn't expect any Indian carriers to defer or cancel orders already placed with the U.S. plane maker despite a slowdown in the air travel sector. Boeing has to deliver 100 planes worth $17 billion to Indian carriers over the next five years, Dinesh Keskar, president of Boeing India said. We have had zero cancellations in India despite the economic downturn, Mr. Keskar told reporters. Boeing Co. Tuesday said it opened a research and technology center in India.

India's Supreme Court ruled Tuesday that Sanjay Dutt who has served nearly two years of a six-year prison sentence for illegal arms possession cannot contest India's general elections next month. Bollywood actor Sanjay Dutt speaking at the Samajwadi Party headquarters in the northern Indian city of Lucknow March 14, 2009.

A three-judge panel of the court refused Sanjay Dutt's plea to suspend his conviction and allow him to stand as a candidate for the Samajwadi, or Socialist Party, because he had been convicted of a serious offense. Supreme Court officials were not available to comment Tuesday afternoon. Mr. Dutt told reporters that he would respect the verdict of the court. Sanjay Dutt is a nice man and he wanted to serve people, but this court order has prevented him from doing that, Rajendra Choudhary, a spokesman for the Socialist Party said adding that the party would also respect the court's verdict. In July 2007, the actor was sentenced to six years in prison for possession of illegal arms supplied by men convicted in a 1993 Mumbai bomb attack that killed 257 people and was blamed on Islamic extremists. Mr. Dutt, a Hindu, was arrested in 1994 and had spent a total 20 months in prison when he was released on bail in November 2007 pending an appeal. No hearing date has been approved. He was acquitted of more serious terrorism and conspiracy charges. Indian law bans anyone who has been sentenced to serve more than two years in prison from contesting elections. Voting in India's national elections will begin April 16 and last through May. Mr. Dutt is popular for his roles as a reformed thug who follows the teachings of nonviolence advocate and Indian independence hero Mohandas Gandhi. His latest film bit hit was Lage Raho Munnabhai or Carry on Munnabhai, in 2006.

Retail sector slowdown to last 12-18 months: KPMG India's retail sector will continue to slow down for another 12-18 months and a recovery will depend on the government's efforts to stimulate the economy, consulting firm KPMG said. A demand contraction following a slowdown in the domestic economy has impacted the sales of retailers, with the consulting firm.

Volkswagen said Tuesday it will start production at its EUR580 million ($766.9 million) India factory in May, as global auto makers seek to expand into this potential growth market amid shrinking sales in the U.S. and Europe. The plant, inaugurated Tuesday, will initially make the Fabia compact car of Volkswagen's Czech unit, Skoda Auto A.S. This will be followed by an Indian version of Volkswagen's Polo hatchback model in early 2010, Jochem Heizmann, board member and in-charge of group production at Europe's biggest auto maker by sales.

India will have to lean on monetary policy to revive its slowing economy in the short term, helped by inflation which is likely to ease to 3.5% in 2009 and 4% next year, the Asian Development Bank said Tuesday. With little room for further fiscal maneuvers and with inflation largely in abeyance, it is monetary policy that will have to revive the economy.

There is room for India's central bank to cut interest rates further, the Organization for Economic Cooperation and Development said Tuesday while slashing its forecast for the country's 2009 economic growth to 4.3%.

Jet Airways (India) Ltd. said Sahara India Commercial Corp. has moved the Bombay High Court, seeking an increase in the payment that the carrier made to acquire Sahara Airlines Ltd.

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jagdu

@jagdu

Dazzler

Posted: 16 years ago

#258

Bollywood: No money, no film; no film, no money. Bollywood's in a tough spot. Lacking financing, India's movie producers are unable to finish and market their films. It could mean as many as half the films scheduled for release this year may not make it, industry officials say. The results speak for themselves. Bollywood, an industry that generates annual global revenue of more than $2 billion, has released only about 20 major films targeted India-wide, with a reasonable publicity budgetso far this year. That's down from about 100 for the same period in past years, estimates UTV Software, a large movie production and distribution company.

Bollywood actress Ameesha Patel gestures during a promotional event in Ahmadabad, India, Tuesday, March 31, 2009.

Without these blockbusters and the marketing behind them to lure audiences into cinemas, ticket buyers are staying home. Cinema occupancy in India has dropped to 40% from as high as 60% at the end of 2007, analysts estimate. So the film industry is being forced to change the way it does business. Song and dance routines may be less flashy. And massive up front salaries for film stars actor pay accounts for nearly half a film's typical budget are out. Already two of Bollywood's top male leads, Shah Rukh Khan and Aamir Khan, have agreed to be paid out of film profits instead of a straight salary. More are agreeing to similar profit sharing terms. Total film budgets could be slashed as much as 30% to 45%, and more funds will go toward publicity to draw audiences, $40 million fund that invests in films. Some are hoping low-cost but high-quality content targeting the urban elite pointing to the success of Slumdog Millionaire will get them out of this spot. Still, one thing Bollywood might not be able to address is cheaper alternative entertainment keeping audiences at home. A key new rival is the TV broadcast of the Indian Premier League cricket tournament. A spat between the producers and cineplexes that screen their films could make a bad situation worse. The producers have threatened, unless they get a full half of ticket sales, that they'll stop releasing films entirely starting Saturday. This is a hard bargain to drive. Multiplexes, which currently share between 38% and 48% of collections, are already dropping ticket prices. Moviegoers also aren't spending as much on high-margin food and beverages. The key to combating Bollywood's malaise could be spending more money on promotion to draw in audiences. The snag: that requires financing to flow again.

India v. NZ 3rd Test: New Zealand's decision to bowl first after winning the toss was vindicated when it held India to 375-9 on the first day of the third cricket test Friday. There were times when Daniel Vettori's judgment in taking his team into the field seemed flawed. But despite India's batsmen enjoying periods of dominance in all three sessions, New Zealand ended the day with a slight upper hand. By stumps, Sachin Tendulkar's 62 his 53rd test half century. Harbhajan Singh's defiant 60, Mahendra Singh Dhoni's 52 and Virender Sehwag's 48 were India's highest scores. India leads the three-test series 1-0 after winning the first test at Hamilton by 10 wickets and the second test at Napier was drawn. The visitors are trying to win their first series in New Zealand since 1968. Tendulkar forged a 90-run partnership for the third wicket with Rahul Dravid (35), while Sehwag shared a 73-run opening stand with Gautam Gambhir (23) and Dhoni and Harbhijan added 79 for the seventh wicket. The most damaging stands from New Zealand's point of view were those between Dhoni and Harbhajan, which arrested its strong second-session comeback, and late flurries involving Harbhajan and Zaheer Khan. India's last-wicket pair of Ishant Sharma (15) and Munaf Patel (14) also defied New Zealand by adding 28 in an unbroken stand before stumps. New Zealand's best bowler was Chris Martin, who took the new ball and returned figures of 3-95 at stumps. They probably ended up with 50 or so too many, Martin said. We probably didn't have the energy or endurance to press home our advantage at the end. We were pleased with certain periods. We made hay at times and got a couple of wickets in clumps. We came out of day not too bad, but that extra wicket would have been nice. New Zealand felt its best chance of leveling the series would come from bowling first and placing India under pressure. Seven of the last 10 teams to win the toss at the Basin Reserve have bowled and six of the last 10 tests at the ground have been won by the team that fielded first. Sehwag played with typical panache at the top of India's order and gave impetus to the innings as the tourists raced to 50 in just 41 minutes and reached 68 by the end of the first hour. Sehwag was 48 and India was 73 without loss when he feathered a catch to wicketkeeper Brendon McCullum off Iain O'Brien in the 16th over. Gambhir fell lbw to James Franklin only nine balls later to leave India at 75-2 as the tide of the first session turned. Tendulkar and Dravid then restored the innings in a partnership which again seemed to assert the dominance of bat over ball. Tendulkar played with typical fluency and class, reaching his half century from 67 balls with a square cut four off O'Brien, his ninth boundary. Tendulkar was dismissed just 10 runs short of he and Dravid's 17th century partnership in tests. it would have surpassed the record 16 century stands shared by Gordon Greenidge and Desmond Haynes for the West Indies and Matthew Hayden and Ricky Ponting for Australia. Tendulkar's dismissal sparked a mini collapse which saw three wickets fall for 17 runs in the next 8.4 overs. V.V.S. Laxman was out for four and Yuvraj Singh for nine as India slipped from 165-2 to 182-5. Dravid followed with the total at 204 after batting 182 minutes for his 35, attempting again to anchor the innings. New Zealand had a pre-eminent position with India at 204-6 in the last session but Dhoni, Yuvraj and Khan, who smashed 33 runs from 23 balls, gave some late heart to the batting side.

State of The Indian Economy:

So far India seems to be weathering the global economic meltdown better than almost any other country. But this blessing might turn into a curse if it makes India skittish about further opening its economy, especially to foreign investment. If the agenda and rhetoric of the main political parties this election season is any indication, that's a very real possibility.

Unlike in the past when the Indian economy contracted pneumonia every time the global economy sneezed, this time the exact opposite seems to be happening: India says its economy grew by 5.3% in the same period. There is a fierce debate among Indian economists about the reliability of government data, but, with some notable exceptions, there is widespread agreement that the country was among the top performers last year. Next year, India's economy is expected to grow between 5% and 7%. By contrast, the combined gross domestic product of developed economies will contract by 4.2% in 2009. But in the face of all this good news, the emerging wisdom among India's political parties is not that its previous round of liberalization worked and now the country needs to move post-haste toward the next round. Rather, they are suggesting that India's relatively strong economic performance shows that it has struck the optimal balance open enough to benefit from global upswings and closed enough to avoid global contagions. This financial crisis might well bring out India's latent but powerful dirigiste impulses, warns Raghuram Rajan, an economic advisor to Prime Minister Manmohan Singh and a professor at the University of Chicago. India's export sector is small, thanks in part to the country's failure to liberalize its archaic, union-friendly labor laws that have diminished manufacturing productivity. But politicians are now hinting that perhaps underdeveloped exports are not such a bad thing after all, as this has made India less vulnerable than other Southeast Asian economies to plummeting global demand. India also does not rely on foreign investments as much, which has allowed it to avoid the capital flight those countries are now experiencing. Indeed, Sonia Gandhi, the leader of the ruling United Progressive Alliance coalition, has been crediting India's ability to withstand the global crisis to her mother-in-law, Indira Gandhi's, "much reviled" nationalization of the banks 40 years ago. Although the ban on private banks has been lifted, roughly 75% of industry assets remain in government hands with tight restrictions on foreign participation and ownership. Public sector financial institutions have given our economy the stability and resilience we are now witnessing in the face of the economic slowdown, she says. Even more ominous than her remarks which have been widely lampooned in the press as both politically and economically ignorant is that Home Minister P. Chidambaram, a key architect of India's liberalization and champion of banking reforms, has been echoing them. Not to be outdone, L.K. Advani, the octogenarian leader of the opposition Bharatiya Janata Party who is vying to become prime minister, has dusted off an old speech and is once again touting swadeshi, or economic nationalism, as the way forward for India. The current financial crisis, he claims, demonstrates that unbridled capitalism is no better a model for India than Soviet communism and he wants the government to maintain aggressive restrictions on the financial sector. This is a dangerous line of thinking that ignores the huge opportunity cost of financial protectionism, especially for India's most economically vulnerable segments in rural areas. India has made giant strides in opening its economy since 2002 as one of the most closed in the world It has cut top tariff rates on industrial goods from over 100% before liberalization to 10% now. It has also simplified its byzantine licensing requirements for capital imports. But when it comes to foreign investments, its reforms have been incremental and ad hoc rather than dramatic and stable. Although foreign direct investment increased last year, the government severely restricts this investment in allegedly politically sensitive areas such as retail trading, railways and real estate. What's more, foreign companies are allowed to participate in construction projects only if they agree to accept payment in nonconvertible rupees an obvious dealbreaker. Nor can foreign firms that don't have local collaboration participate in most government contracts which bars the use of foreign steel and iron in stimulus-funded infrastructure projects. Meanwhile, although 100% foreign ownership of companies in nonpriority sectors is allowed in theory, regulatory hurdles make this virtually impossible in practice. Contrary to conventional wisdom, the main victims of such restrictionism are not just businesses and consumers in cities but the poor in rural India as well. Indeed, the biggest impediments to the modernization of India's villages are the country's abysmal roads, electricity and sanitation. However, without a sizeable influx of foreign investment huge challenge at any time but especially now when major international banks are staring at red balance sheets it will be very hard to provide adequate infrastructure. The Indian government's own estimates show that the country needs to invest anywhere from $300 billion to $500 billion over the next four or five years toward infrastructure enhancements. But the government doesn't have this money given that its total national budget deficit central and state is well over 11% of GDP double that of last year. Nor can the government count on India's high gross savings rate 37.7% of GDP this past fiscal year to finance such projects. India can't mobilize these savings for long-term projects, because Indians prefer to put them in physical assets such as homes. Infrastructure is not the only area where rural India could use foreign help. It also lacks access to basic financial services. The vast majority of villagers don't even have bank accounts, let alone instruments to insure against low crop yields due to bad weather. Nearly three-quarters of farm households have no access to formal sources of credit, leaving them extremely vulnerable to exploitative moneylenders. Their only other option is government banks that notwithstanding Ms. Gandhi's lavish praise primarily serve people with either connections or collateral, neither of which poor villagers have. Making better financial services available to them will require, first and foremost, eliminating mandates that force private banks whether Indian or foreign to offer priority lending to favored constituencies at sweet rates. It will also require removing the barriers to entry that foreign banks face, such as obtaining government approval to acquire more than a 5% stake in a local bank and restrictions on opening new branches. India is on the cusp of a major transformation that could make the country's crushing poverty a thing of the past. However this will require a renewed commitment to liberalization. India's parties have a long tradition of dumping their campaign rhetoric as soon as they get elected. This time they should certainly honor that tradition and throw open India's doors to foreign investment and globalization.

Obama and Singh: President Barack Obama said India and Pakistan's greatest enemy should be poverty, not each other.

Messrs. Obama and Singh during their bilateral meeting at the G-20 summit.

He met with Indian Prime Minister Manmohan Singh at the G-20 meeting in London Thursday, and later told a news conference that he suggested it would make sense for the two nuclear-armed neighbors to have a more effective dialogue. Mr. Obama says they discussed the terrorism emanating from Pakistan, but focused more broadly on how the U.S. and India can cooperate on counterterrorism. Mr. Obama described Singh as a wise and decent man who has done a wonderful job guiding India on a path of economic growth. He said they discussed a range of topics, including energy and fighting climate change. Mr. Obama said it's important the U.S. lead in efforts to cut greenhouse gas emissions.

Edited by jagdu - 16 years ago

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jagdu

@jagdu

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Posted: 16 years ago

#259

Satyam The former chief financial officer of Satyam Computer Services Ltd., the Indian software services firm mired in a corporate scandal, has said that the company's auditors from PricewaterhouseCoopers weren't complicit in the giant fraud, according to the president of the Institute of Chartered Accountants of India. Uttam Prakash Agarwal, president of the Indian accounting body which is conducting a review of what happened at Satyam, said that Srinivas Vadlamani, former Satyam CFO, told him in an interview that forged documents were given to the auditors and they relied on the documents provided by the management.

Satyam's former chief financial officer said auditors weren't complicit in the company's fraud. At left, Satyam Infocity in Hyderabad.

They relied on the internal auditor reports and they also presented all the queries before the audit committee, said Mr. Agarwal in an interview. Mr. Agarwal also interviewed the two Pricewaterhouse auditors in Hyderabad Sunday. Satyam has been in the throes of scandal since January when its founder confessed to cooking the books by at least $1 billion. Pricewaterhouse Coopers couldn't immediately be reached for comment. Mr. Agarwal said that the views expressed were the views of the three people interviewed, and that the institute itself hadn't yet come to a view. A lawyer for Mr. Vadlamani had no immediate comment. Satyam's former CFO played the role of master servant in the fraud, he told Mr. Agarwal. Mr. Agarwal said the CFO attributes the whole game plan to Mr. Raju and his brother. According to the former CFO, all the policy, the decision of the management was implemented by a cost accountant inside the company, and his team, said Mr. Agarwal. This cost accountant and his team created forged documents such as sales bills, bank statements and fixed deposit receipts, Mr. Agarwal said the former CFO had told him. These forged documents were given to the auditors on which they have relied and completed the audit, Mr. Agarwal said. He (Mr. Vadlamani) said categorically that the auditors are totally innocent. Mr. Vadlamani had tried to disclose the fraud in earlier times, he told Mr. Agarwal, but couldn't do it because of the Satyam employees being put at risk. He said that I tried to disclose to the public in earlier times, (but) I could not do it because there was a matter of 54,000 employees, matter of bread and butter of 54,000 employees. The former CFO also tried to resign twice in the last five years, Mr. Agarwal said. In interviews with the accountants S. Gopalakrishnan and Srinivas Talluri, Mr. Agarwal was told they weren't aware anything untoward was happening inside the company. We have performed our duty as per the auditing standard, we were not aware anything is happening in the company, they told Mr. Agarwal. The firm's high profile independent directors and compliance with international standards gave them confidence. There was a great environment of confidence in the company, Mr. Agarwal said. There was no grounds to even think that something is going wrong.

Brittania: France's Groupe Danone SA has decided to sell its entire stake in Britannia Industries Ltd., giving the Indian biscuit maker's majority holding to a company which belonged to the Wadia group. Leila Lands Ltd. (Mauritius), in a regulatory filing in India Monday, said it will buy 6.086 million equity shares, representing a 25.48% stake in Britannia Industries, on April 14 from Danone's U.K. unit Britannia Brands Ltd. The purchase will double Leila Lands' stake in Britannia Industries

The trial of a Pakistani man charged in last year's Mumbai terror attacks will start on April 15, more than a week behind schedule, because of delays in securing the building where the trial is to be held, officials said Monday.

Kasab. Mohammed Ajmal Kasab, the only gunman captured during the attacks, which left 164 people dead, could face the death penalty if he is convicted of 12 criminal counts, including murder and waging war against India. Nine other attackers were killed during the three-day siege in November. Mr. Kasab's trial will take place in a special court set up at the Arthur Road Jail in central Mumbai where he is being held, but the building's security infrastructure will only be ready for the trial next week, special public prosecutor Ujjwal Nikam told the trial judge M.L. Tahiliyani. He did not provide details. Mr. Kasab's trial was supposed to start Monday. India has blamed the Mumbai attacks on Lashkar-e-Taiba, an Islamist militant group widely believed to have been created by Pakistani intelligence agencies in the 1980s to fight Indian rule in the divided Kashmir region. Pakistani officials have acknowledged that the attacks were partly plotted on their soil and announced criminal proceedings against eight suspects. They have also acknowledged that Mr. Kasab is a Pakistani national.

Edited by jagdu - 16 years ago

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jagdu

@jagdu

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Posted: 16 years ago

#260

Sri Lankan Tamils: Hundreds of protesters demanding Sri Lanka halt its military assault in Tamil areas of the Indian Ocean island blocked a major bridge beside London's Parliament overnight, police said Tuesday.

Tamil protesters demonstrated outside the Houses of Parliament in central London.

Several thousand demonstrators had gathered Monday to draw attention to the situation in Sri Lanka, where the U.N. estimates up to 190,000 people are trapped in the war zone, with dozens dying every day. London police moved the protest Tuesday to an area in front of Parliament, and arrested four people for public order offenses. Two people were pulled from the River Thames after jumping in. Members of my family, some of our grandparents, are stuck in an area in the northeast of Sri Lanka which has been bombed intensively for the last two months, said protester Vijay Mahalingam, 28. There is no phone contact, and every day we just hope they have not been harmed. Sri Lankan troops are trying to defeat Tamil Tiger rebels fighting to carve out an independent state on the island, off the southeast coast of India. The Sri Lankan government has rejected international calls for a cease-fire, and says it is on the verge of defeating the rebels. Foreign Secretary David Miliband said there should be a humanitarian cease-fire to allow civilians to leave the danger zone. Nothing excuses the reported use of civilians by the LTTE [Tamil Tigers] as a human shield, Mr. Miliband said. But nor does the LTTE's behavior excuse any failings by the Sri Lankan government to meet the high standards expected of democratic governments in conflict.

Chidambaram, India's home minister: An angry journalist threw a shoe at India's top security official after a confrontational exchange during a press conference over the 1984 anti-Sikh riots that left thousands dead. The shoe missed Home Minister Palaniappan Chidambaram, who continued taking questions Tuesday as officials escorted the journalist away. He was later taken into police custody, but it was not immediately clear whether he would face charges, said police spokesman Rajan Bhagat. Local television channels identified the journalist as Jarnail Singh, a veteran reporter with one of India's largest newspapers, the Hindi daily Dainik Jagran. A Sikh journalist throws his shoe at India's Home Minister Palaniappan Chidambaram during a news conference in New Delhi in this video frame.

Before throwing the shoe, Mr. Singh asked Mr. Chidambaram several questions about the Central Bureau of Investigation's findings last week that cleared a senior Congress party leader, Jagdish Tytler, from any involvement in the bloody riots that left 3,000 dead. Mr. Chidambaram said the CBI was an independent body and the government played no role in the decision, and called for the public to be patient. Mr. Singh, dressed in an olive-green shirt and a white turban, then threw his blue and white sneaker at Mr. Chidambaram, narrowly missing his face. Moments later, Mr. Chidambaram repeatedly asked the reporters in the room to settle down, and said, the emotional outburst of one man should not hijack a press conference. Soon after, Mr. Singh told TV news reporters that he regretted throwing the shoe but he felt Mr. Chidambaram was dodging the question. I just wanted to ask him how justice will be done, but he was not interested in answering the questions, he told during a telephone interview from police custody. I don't think it was the right way, what I have done, but the issue is right. Mr. Singh didn't say whether he was inspired by Iraqi journalist Muntadhar al-Zeidi, who last month was sentenced to three years in prison for throwing his shoes at former U.S. President George W. Bush in Baghdad. The 1984 riots, which remain a very controversial issue in India, left more than 3,000 dead, most of whom were Sikhs. The carnage erupted across India after former prime minister Indira Gandhi's Sikh bodyguards shot her to death. Many blame Congress party officials for turning a blind eye or even supporting the rioters in the violence that ensued after their leader was slain. On Tuesday, hundreds of Sikhs held protests over the CBI's findings in front of the home of Congress chief Sonia Gandhi, the daughter-in-law of Indira Gandhi. Jagdish Tytler, the center of the controversy, was a lawmaker at the time and remains a divisive figure in Indian politics. He is currently campaigning for re-election to Parliament in elections that begin later this month.

India achieved its first test series win in New Zealand in 41 years Tuesday but in a mood of anticlimax as the third test ended in a rain-sodden draw. India, which won the first test by 10 wickets, needed only two New Zealand wickets to win the third test when rain began to fall midafternoon on Tuesday, increasing in intensity and eventually forcing the umpires to call a halt to play an hour from scheduled stumps. New Zealand was 281 for eight in its second innings, still 335 runs behind India after being set a massive 617 to win.

India's Sachin Tendulkar celebrates the wicket of New Zealand's James Franklin lbw for 49 on the fifth day of the third international cricket test at Basin Reserve in Wellington Tuesday.

Ross Taylor reached his fourth test century, his second in successive tests, and shared a record 142-run fifth-wicket partnership with James Franklin (49) which prolonged New Zealand's innings until the rain intervened. Off-spinner Harbhajan Singh took four for 59 and completed match figures of 7 for 102 to bowl New Zealand to the brink of defeat and there were signal performances Tuesday from Sachin Tendulkar, who took two wickets, and Rahul Dravid, who held his 184th test catch. New Zealand captain Daniel Vettori was 15 not out and No. 10 Iain O'Brien 19 not out when rain halted play 29 minutes into the day's second session. Ishant Sharma spilled a vital catch, dropping Mr. O'Brien, 10 minutes before the rain arrived. In doing so, he might have cost India its last chance of winning the match. India was still pleased to have won a series in New Zealand for the first time since it's inaugural tour in 1967-68. Credit to both the bowlers and the batsmen. We really performed as a team right throughout this tour and that is what's important, captain Mahendra Singh Dhoni said. We didn't rely on a single batsman. We got contributions throughout the whole series from everyone, Rahul (Dravid), Sachin (Tendulkar), V.V.S. (Laxman). Everyone contributed so overall I think that was a great effort. Whenever it was needed someone contributed and that's great for the morale of the team. India took charge of the final test when it dismissed New Zealand for 197 on Saturday in reply to its first innings of 379, taking a 182-run lead. It declared its second innings at 434-7 on Monday, with an overall lead of 616 and with five and a half sessions or at least 168 overs remaining. Rain was forecast for the final day and there was a suspicion India may have batted on too long Monday to give itself maximum opportunity to close out the series with a win. The tourists reduced New Zealand to 84-4 in its second innings before Messrs. Taylor and Franklin combined in the largest fifth wicket partnership by a New Zealand pair against India. They batted almost 25 overs before stumps Monday and a further 21 overs Tuesday to lengthen the New Zealand innings and to bring the rain into calculations. Mr. Harbhajan bowled Mr. Taylor for 107, ending his innings of 257 minutes, and also removed Tim Southee (3) while Mr. Tendulkar contributed the wickets of Mr. Franklin, who was stuck for 4 1/2 overs on 49, and Brendon McCullum for six. New Zealand was 258-8 when Mr. Southee was out but Messrs. Vettori and O'Brien defied India for the last half hour. I'm just a bit disappointed (not to win), Mr. Dhoni said. We were expecting to have more overs but I still feel whatever opportunities we got we made the most of. We would have been really happy with one more win to clinch the series but it wasn't to be. India took control of the series when it won the first test at Hamilton by 10 wickets and preserved that margin when the second test at Napier ended in a high-scoring draw. I think to have them 200 for six on the first morning after we took a gamble bowling first was really pleasing and I suppose from then on in it was a bit disappointing that we didn't go on, New Zealand captain Daniel Vettori said. It was a poor performance in the first innings with the bat but it was good to see a fighting performance from some guys; Ross Taylor and James Franklin today with the bat and I think Chris Martin's bowling throughout the whole series has been a particular highlight. There are some positives but we have to look back and say we were outplayed in two of the three test matches. Opener Gautam Gambhir was named player of the match for his 167 in India's first innings. Gambhir had scores of 72, 30 not out, 16, 137, 23 and 167 for 445 runs at an average of 89. Mr. Dravid finished with 184 catches in tests, eclipsing the world record of 181 he previously shared with Australia's Mark Waugh. It's great to be part of the team and to achieve this, Mr. Dravid said. Taking catches is about the team. It's about helping your bowlers and you need the bowlers to create the nicks for you. I've been fortunate over the last 13 years. I've played with some very good bowlers and I've been lucky, worked really hard and it's been really satisfying.

More arrests in Satyam: Three employees from the finance department of software-services firm were arrested Sunday, while separately, the company's former chief financial officer told the head of an Indian accounting body that the company's outside auditors weren't complicit in cooking the books. The Central Bureau of Investigation, the federal body probing a massive fraud at the company that was revealed in January, said in a statement Monday that the three employees were arrested for their active role in [the] perpetration and involvement in the crimes. The company, one of India's largest technology firms, has been under investigation since founder B. Ramalinga Raju confessed that he had manipulated the company's accounts, including inventing a bank balance of more than $1 billion. A Satyam spokeswoman said all three arrested are from the company's finance department. G. Ramakrishna is a vice president; Danthuluri Venkatapati Raju is a senior manager; and Srisailam Chetkuru is an assistant manager. None of the employees nor their lawyers could be reached for comment. In India, suspects don't have to be charged with specific crimes when they are arrested. Mr. Raju, the founder; his brother and co-founder B. Rama Raju; and former Chief Financial Officer S. Vadlamani are in jail on charges of cheating, forgery and breach of trust. They have yet to stand trial.

Satyam's former chief financial officer said auditors weren't complicit in the company's fraud. At left, Satyam Infocity in Hyderabad.

Separately, Mr. Vadlamani told the president of the Institute of Chartered Accountants of India on Sunday that Satyam's outside auditors from Price Waterhouse weren't complicit in the fraud, said Uttam Prakash Agarwal, the president of the accounting body, in an interview. Price Waterhouse is the Indian affiliate of PricewaterhouseCoopers. Mr. Agarwal's review is separate from the criminal investigation of the auditors. A CBI spokesman said the accounting body's investigation was separate but that they are helping us. He said the CBI was looking at the involvement of PWC, but haven't taken any action yet. According to Mr. Agarwal, Mr. Vadlamani said that forged documents were given to the auditors and they relied on the documents provided by the management. In a press release from the accounting body, the group stated that Mr. Vadlamani said he and a vice president of finance were actively involved in the scam. Mr. Vadlamani said the plan had been carried out by fabricating and preparing false documents such as sales invoices, bank statements, bank confirmations, and involved a team of some 10 junior staff, the release said. The comments couldn't be independently verified. A lawyer for Mr. Vadlamani said he didn't know what had been discussed between the accounting institute and his client. I do not know the exact content of the statement that is said to have been recorded by Mr. Agarwal," he said. A Satyam spokeswoman declined to comment on the contention that a team of junior staff was involved: Satyam will cooperate with the investigation, but we would not be able to comment on it. A lawyer for B. Ramalinga Raju declined to comment on the statement from the institute. Price Waterhouse audited Satyam's financial statements from mid-2000 to late 2008. The firm has suspended the Satyam auditors, S. Gopalakrishnan and Srinivas Talluri, until investigations into the fraud are completed. The accountants, in interviews, told Mr. Agarwal they weren't aware anything untoward was happening inside the company, according to Mr. Agarwal. He said the accountants told him they had performed their duties in compliance with auditing standards. A lawyer for Mr. Gopalakrishnan and Mr. Talluri said his clients have pleaded innocent. PricewaterhouseCoopers declined comment.

India's stock market: Among predictions of a dark year for the Indian stock market, some investors see a brighter case. The global financial crisis, an impending national election and a slowing economy have some Indian market watchers braced for losses. The more bullish view is that the economy has seen its lowest point and corporate earnings should improve soon. Another potentially encouraging spot is that India remains a fast-growing country despite the global slowdown and should attract investment funds desperate for promising prospects. Several government-initiated economic measures also could support the market.

The Nano: At the weekend, thousands of Indians got their first chance to poke, kick and pile into the petite car they've been adoring from afar for over a year. With around 400 perky Tata Nanos put on display for consumers across the country for the first time, more Indians will fall for the $2,000 minicar. For many, the car is more than just a good deal; it represents the potential of the new India. The Nano is India's new ambassador. Of course, for decades the favorite representative of Indian roads for Indians and Indophiles has been the chubby classic from Hindustan Motors Ltd., appropriately called the Ambassador. Based on a British Morris Oxford from 1948, the chunky car has changed little since it came to India 60 years ago. The Ambassador looks like a giant tortoise, its new competitor the Nano is more like a wireless mouse. The bulging Ambassador seems as if it could give birth to a Nano. It's about twice the weight, up to five times the price and gets about half the gas mileage. It comes in two colors: white and silver. The Nano comes in white and silver as well and four other colors including Racing Red and Sunshine Yellow. The Ambassador sells around 1,000 a month. Tata expects to be able to sell more than 20 times more Nanos once its factories reach full capacity. With many more modern options, today most Ambassadors are bought for official purposes. Around 60% of them become taxis, another 20% are bought to ferry politicians and bureaucrats around.

Ambassador fans say the sturdy cars are easy to fix and great for India's rough roads. Expatriates often buy them for their retro look. Still, even die-hard Ambassador enthusiasts will tell you that kitsch comes at a cost. Riding in it is like gliding around on your sofa, say ex-ambassador owner Peter Keep. It was an iconic car to drive or be driven in but I don't think many that have ever owned one would want another one. After the headlights of his new, $10,000 Ambassador kept falling off and his windshield wiper went on strike during the monsoon, Mr. Keep's standard question for other Ambassador owners was: Do bits fall off yours as well? The usual answer was yes. Hindustan Motors has done much to modernize the interiors and the engine of the Ambassador over the years. Some of Its latest models even come with cell phone chargers and MP3 players. A Hindustan Motors spokesman said that quality is usually not a problem for customers unless they mistreat the car. The fact that the car is still on the roads despite all the new competition is a testament to its popularity, she said. The Ambassador hasn't dominated Indian roads since the 80s when Suzuki Motor Corp. took pole position here with its Japanese hand-me-down models built and sold through its joint venture with the Indian government. Still, the two symbols of India's roads represent how the country's economy has changed.

The Ambassador arrived just as India was gaining its independence and became the car of choice in the socialist era. It didn't change much over the decades because it didn't have much competition. It stayed stuck in the 40s as control on the country's companies, commodities and foreign currency was more important for the government than promoting innovation. Today, India's economy is radically different. As companies and consumers have been given more freedom to invest, build and borrow as they please, growth has accelerated. Easier access to international markets has brought new capital and technology and even spawned new industries. The software, call center and outsourcing industries have tapped India's pool of engineers to help protect global companies from computer bugs, build telecom networks and design the computer programs that make Western companies work better.

The Nano is a result of a similar pool of dedicated and educated engineers turning their attention to their home market. Cutting the sticker price of the Nano took hundreds of Tata engineers four years to figure out. "This car was developed from scratch to slash costs, said Jai Bolar, one of the five engineers first asked by Tata Motors Chairman Ratan Tata to develop the Nano. Ratan used to tell us that the only people that could do it is us. The Nano team grew from five to more than 300 as more experts were called in to rethink everything from the brake system to the engine to the windshield wipers to the way parts would be delivered. Mr. Bolar, 30 years old, epitomizes the excitement about the new opportunities in India. After getting his masters in automotive engineering in the U.S. and interning at a car parts company in Detroit, he chose to come home and work for Tata. As India's consumers get to see what Mr. Bolar and his colleagues have created, many will smile, happy that India's economy is no longer riding on outdated, imported technology.