Thought of the Day:
“We make a living by what we get. We make a life by what we give”
~Winston Churchill
Did you know?
“Mosquitoes are attracted to the color blue twice as much as any other color”
Following made the Headlines:
India:
- Toeing EC’s Code of Conduct to be Social Media Misconduct: With Congress and BJP hammering away at each other in the ongoing assembly contests that will set the stage for national polls next year, the Election Commission wants to make sure social media and online platforms run by Google, Facebook and Twitter are not used to breach the code of conduct that governs candidates and parties. The commission’s key concerns relate to malicious content and exceeding the campaign expense limit. The Election Commission, which summoned the social media companies to a meeting last Monday, directed them to cooperate in monitoring content. They were asked to set up a mechanism that would help prevent posting of material that could vitiate the election atmosphere, according to Election Commission officials who are aware of the development and didn’t want to be named. If such content is posted, the mechanism should also allow for its speedy removal, they said. “It is difficult to monitor and track content on social media or Internet sites, since the servers are based out of the US,” said one of the officials cited above. “EC has asked social media giants to cooperate for compliance with the code of conduct, precertification of advertisement on the web and monitoring malicious content.” The companies declined to comment and referred ET to the Internet and Mobile Association of India (IAMAI) for a response. “It was a sensitising meeting on the code of conduct with some legal and corporate affairs representatives of Internet firms which are members of IAMAI,” said Subho Roy, president of the grouping.
- Amazon Lobbying for Easier FDI in E-commerce: Global retail giant Amazon.com on Sunday said it is 'engaging' with the government for relaxing of foreign investment norms in e-commerce space, following which it will adopt a hybrid model to start product retailing. “We believe FDI in e-commerce is good for the customers. Not only will they get more choices but it will also improve the level of customer service for the industry,” Amazon director and general manager (seller services) Amit Deshpande, told PTI. “We are engaging with the government to relax FDI norms in e-commerce space,” he added. The company, which launched operations in India in June, operates with marketplace model. Under this model, Amazon will not sell products directly to customers but only provide a platform to sellers.
- Twitter Tightens Security to Ring-fence User Data: Twitter has ramped up the security of its user data, following a similar move by Yahoo, making it harder for hackers to steal personal information of users and hoping to check cyber snooping. The micro-blogging site, which has over 230 million active monthly users, has enabled “forward secrecy” technology for its web and mobile platform. “On top of the usual confidentiality and integrity properties of HTTPS, forward secrecy adds a new property... Forward secrecy is just the latest way in which Twitter is trying to defend and protect the user's voice,” the San Francisco-based company said. Last week, Yahoo! had announced that it will encrypt all information that flows between its data centres. Google has also ramped up its efforts to protect user data. The steps by technology giants come amid reports that the US government was snooping on user data.
- New JV will Sell Mansion House Soon: Jansen CEO: Henricus (Dick) Jansen, CEO and sixth generation owner of Herman Jansen, the company that owns the ‘Mansion House’ brand, said the brandy will be produced and distributed in India in a “couple of months” through the new partnership his company has entered into with liquor baron Kishore Chhabria’s Allied Blenders & Distillers. Jansen’s comments are a clear indication that the Dutch company will take the battle to Tilaknagar Industries, which produces and distributes the brandy in India now and claims ownership of the brand. Last month Chhabria claimed 50% ownership interest in the Mansion House brand, taking many by surprise. Jansen, who was in Mumbai with matters related to the JV with ABD, claims their partnership with Tilaknagar ended way back in 2007 and ownership of the Mansion House brand has been with his company for six generations. Jansen told ET that differences cropped up between his company and Tilaknagar Industries, its Indian partner since 1983, when sales and popularity of the Mansion House brand were at their peak. Though the partnership ended in 2007, Tilaknagar continued to produce the brand. Henricus Jansen challenged it in the Bombay High Court, but the ruling went in favour of Tilaknagar. The Dutch company has gone in appeal against the ruling and it is pending. Asked what he would do if the court does not uphold its appeal against its earlier order that allowed TI to continue with production, he said, “We have a strong case and we are sure about that. And we are certain that we will get justice from the Indian court”. The court has allowed Tilaknagar to continue to produce and sell Mansion House in India, but has not barred Henric Jansen from doing the same. Amit Dahanukar, the Stanford-educated chairman of TI, told ET, “I have nothing more to tell you than what I have told you before. Our position is clear. The court order has cleared us and we will fight legally anybody who tries to produce Mansion House brand in India.” Jansen said he thinks his partnership with Alllied Blenders will salvage the situation for him. “ABD is very strong in India. It has a strong production and distribution network which will provide the required infrastructure to make the brand stronger in India. We have been doing business in India since 1983 and, therefore, the Indian scenario is not alien to us,” he said.
- AirAsia India Likely to Get Permit in Jan: Malaysian budget carrier AirAsia’s tripartite joint venture with Tata Sons and Arun Bhatia could finally get a scheduled air operator’s permit in January, nearly a year after announcing the JV. “We should be able to give the permit in the next two months,” said Arun Mishra, director general of the Directorate General of Civil Aviation. “They plan to do most of the training in Malaysia. So we need to go there and certify that.” The new airline, AirAsia India, which plans to keep its operational centre in Chennai, plans to initially operate in Southern India. AirAsia’s group chief executive Tony Fernandes had said in March that the airline plans to start operations with around 300 people, three aircraft and focus on the Tier-II and Tier-III markets in India. “They need to get the aircraft over so it’s difficult to say when they will start flying,” Mishra added. Malaysia’s AirAsia Bhd owns 49% stake in the airline while Tata Sons owns 30% and Arun Bhatia owns 21%. AirAsia’s investment proposal was cleared by the Foreign Investment Promotion Board in March and it received the No-Objection Certificate from the Ministry of Civil Aviation in September. The airline’s chief executive officer is Mittu Chandilya. In June, the airline appointed Ratan Tata as the chief advisor to the board while roping in S Ramadorai as the executive chairman. The airline has so far hired 300 people for starting operations. The AirAsia India CEO Chandilya in October said that the employees are training across verticals in Malaysia. The airline should be ready to launch services as soon as it receives the scheduled air operator’s permit.
- India Emerges Most Attractive Investment Destination: EY: With relaxation in FDI norms to boost investor sentiments, India has emerged as the most attractive investment destination surpassing neighbouring China and the US, says a report. The global survey of leading consultancy firm EY has ranked India as the most attractive investment destination followed by Brazil and China at second and third positions, respectively. While Canada has cornered fourth spot, the US is placed at fifth position. Other nations in the top 10 are South Africa (6), Vietnam (7), Myanmar (8), Mexico (9) and Indonesia (10). “With sharp currency depreciation and opening up of FDI in various sectors, India has become an attractive destination for foreign investors,” EY, earlier known as Ernst & Young, said. In August, the government announced relaxation in FDI norms in many sectors, including multi-brand retail and telecom. According to the global consultancy firm, due to the present macro-economic pressures and heavy debt pile, several Indian companies are looking to divest non-core businesses. “This has created a large opportunity for foreign players vying for a greater role in the Indian market,” it added. When it comes to investments, the US, France and Japan have emerged as “top three investors likely to invest in India”. The findings are a part of EY’s latest Capital Confidence Barometer report, based on a survey of about 1,600 senior executives from large companies across 70 countries. It aims to gauge corporate confidence in the economic outlook and understand boardroom priorities, among others.
- Luxury retail to get Italian hand: In yet another sign that luxury retail is on an upswing in India, Italian high- end brand Stefano Ricci has decided to enter the country with 100 per cent foreign direct investment (FDI). So far, the company specialising in men’s luxury fashion has only 34 stores across Europe, Asia and the US. Its flagship store is in Florence. While the company did not respond to an email questionnaire from Business Standard on its India plans, sources said Stefano Ricci is likely to open its India store either in Mumbai or Delhi once its application is cleared by the Foreign Investment Promotion Board (FIPB). Stefano, which has been around for 40 years and recently hit the headlines for creating the interiors of a luxury yacht, is among the few international companies coming to India with 100 per cent FDI. Under single brand retail policy, up to 100 per cent FDI is allowed, while foreign investment has been capped at 51 per cent in the multi- brand segment. Earlier this month, Austrian crystal jewelry maker Swarovski had filed its application for 100 per cent FDI. The top- end brand currently operates in India through franchise stores, but now wants to run the business in the country independently. India’s luxury market was pegged at $ 7.5 billion in 2012 and is slated to grow at a compounded annual growth of 16 per cent over the next three years. According to a joint study by market research firm IMRB and the Confederation of Indian Industry, the market is expected to effect a turnaround, growing by 14 per cent in 2013 ($ 8.65 billion), and cross the $ 10- billion mark in 2014, with a 17 per cent year- on- year growth.
- Celio hikes stake in Future Group JV to 65%: French menswear retailer Celio has increased its stake in an equal joint venture (JV) with Kishore Biyani’s Future Group to 65 per cent, as part of its plans to become 100 per cent owner of the company, according to sources in the JV company. After the rejig of ownership structures last month, Futures newly listed company Future Lifestyle Fashions (FLF) owns 35 per cent stake in the company Celio Future Fashions, the sources said. The move follows nod from the Foreign Investment Promotion Board (FIPB) allowing Celio to raise its stake in the company to 100 per cent in July. Celio plans to invest ₹ 40 crore to open new stores. “Over a period of time, Celio will become 100 per cent owner and Future Group will exit,” said the sources. The financial details of the transaction are not known. However, Biyani, founder and CEO of Future Group, denied any restructuring. Currently, Celio has 38 standalone stores and 130 shops in the country. Founded in 1985 by Marc and Laurent Grosman, the brand has 1,000 stores across the world. “ Celio has a long- term view of the business and growth potential of the country. That is why, it is going for 100 per cent stake,” said the sources. According to sources, Celio co- founder Marc Grosman met Biyani and his team in Mumbai over the weekend.
- FMCG major ITC sets up store locator to give sales a big push: Craving a pack of Dark Fantasy biscuits? A few taps on your smartphone, tablet or laptop can guide you to the nearest store that has the chocolate cookie range on its shelves. ITC has mapped more than 20 lakh stores - including organised retail and kirana outlets - across India with near real-time information on the availability of its fast-moving consumer goods (FMCG) on an online platform that the company hopes will revolutionise distribution and consumer engagement in the Indian market and help it gain ground on market leader Hindustan Unilever. The initiative is one more way to get close to the consumer and push sales of premium products, said Sanjiv Puri, the Kolkata-based conglomerate's divisional chief executive in charge of FMCG trade marketing and distribution. "ITC's product portfolio includes a large number of premium products like Dark Fantasy Choco Fills, Delishus cookies, Aashirvaad multi-grain atta and Fiama Di Wills shower gels that are available in select outlets. In order to provide consumers convenient access to FMCG products, the store locator has mapped stores across 150 cities and towns," Puri said. ITC plans to link its inventory billing at the outlets to the network so that buyers aren't disappointed by stocks running out when they get to the stores. "We can leverage this (information) highway for more intense consumer connect in the future," Puri said.
International:
- Oil prices fall after Iran agrees nuclear deal: Oil prices have fallen after Iran agreed a deal to curb some of its nuclear activities in return for easing of international sanctions against it. Iran holds the world's fourth-largest oil reserves but its exports have been hurt by the tough sanctions. Though Iran will not be allowed to increase its oil sales for six months, the deal has eased tensions in the Middle East - a key oil-producing area. Brent crude fell more than 2% in early Asian trade on Monday. It dropped by $2.42 to $108.63 per barrel, while US light sweet crude fell 84 cents to $93.64 per barrel. "There are a lot of sanctions that have been eased, which will allow Iran to slowly re-enter the global economy," Jonathan Barratt, chief economist at Barratt's Bulletin told the BBC. "And as for oil - it's a just a six-month waiting period. If they tick all the boxes during that time they will be back in that sector as well."
- Apple buys motion sensor maker PrimeSense:m Apple has purchased PrimeSense, an Israeli firm that specialises in making 3D motion detection technology. PrimeSense is best known for developing gesture control for Microsoft's Kinect console, and has made strides towards bringing the technology to mobile. Apple's deal is likely to spark speculation about its plans to develop new products such as Apple TV. Apple confirmed the deal but did not disclose the financial details. Some reports said it had paid $360m (£222m). "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans," an Apple spokesperson was quoted as saying by the Financial Times and tech blog AllThingsD.
- The Bloomberg Effect: Fashion and the Mayor: Last Wednesday morning, a small clique of New York’s reigning power players gathered in the Meatpacking District offices of Diane von Furstenberg for the type of breakfast meeting that shapes cities, literally and figuratively. Terry J. Lundgren of Macy’s and Lew Frankfort of Coach were there, along with Andrew Rosen of Theory, Vera Wang, Anna Wintour, Hearst Magazine’s Michael Clinton and the Council of Fashion Designers of America’s Steven Kolb. Presiding over the elegant conclave was New York’s head macher-in-charge — at least for the next 37 days, Mayor Michael Bloomberg. He had brought along his cultural affairs commissioner, Kate Levin, as well as Daniel Doctoroff, chief executive officer of Bloomberg LP. The high-powered powwow was engineered to discuss plans — and build support — for the Culture Shed, the ballyhooed arts center that is meant to become the new home of New York Fashion once it’s completed around 2017. The striking structure will serve as an anchor of the ambitious Hudson Yards development on the West Side of Manhattan, currently under construction and set to become a marquee capstone of Bloomberg’s 12-year tenure at City Hall, which comes to a close next month. Bloomberg’s presence at the huddle and his lobbying to move fashion week to the Culture Shed — to which he has dedicated $50 million in city funds — were emblematic of the cozy relationship he has cultivated with certain factions of the fashion industry during his time as mayor. More broadly, through the city’s Economic Development Corporation, he has launched numerous initiatives to boost the fashion sector and he’s been front-and-center at countless industry events over the years, from kicking off the very first Fashion’s Night Out in a Queens mall with Michael Kors to rubbing elbows with Miley Cyrus at Fashion Group International’s most recent Night of Stars.
- The Hunt Secures $5.5M in Series A: The Hunt, the community-driven online site that makes photographs shoppable, and counts celebrities Tyra Banks and Ashton Kutcher as investors, has secured $5.5 million in Series A financing from seed investor Javelin Venture Partners. The site allows consumers to share photos of what they are seeking to buy, with a like-minded community that includes some brands who “hunt” down the product or offer similar items. Alex Gurevich, partner at the venture capital firm, said, “The team has executed very well and has built out an experience at The Hunt that has significant traction in their ability to gain new members as well as keep them engaged.” Gurevich said the uniqueness comes from a two-sided community, one actively on the hunt and the other providing the solution, with community members playing both roles at any given time. He said that proposition is “very sticky, with sustaining value over time because it is hard to replicate” the like-minded community members who participate. Tim Weingarten, cofounder and chief executive officer of The Hunt, said the funding will be used to hire more engineers to enhance the experience. The site now has an app for iPhone users, and is looking to introduce an iPad app. “The reason we wanted to launch a mobile app is because we went from being 10 percent mobile to over 50 percent, and of that 50 percent, about 85 percent of users are accessing the site on their smartphone.” Weingarten said the app was a “natural” given that the demographic of users, between 15 and 30 years old, are used to taking photos from their smartphone and then posting them on the site. He said that after eight weeks of testing the app, the company found that users spend 30 to 40 minutes using the app over the course of three days each week. According to Weingarten, the stickiness that Gurevich refers to is based on the consumer mind-set of participants on the site: “Users want to buy something. They’re not there to browse. They have buyer’s intent.” The business model relies on an affiliate model to get commissions on clicks, but is working on other ways to monetize the traffic on the site.
- Jeweler Todd Reed to Open Venice Beach Shop: Jeweler Todd Reed has signed a lease for a shop on hip Abbot Kinney Boulevard in Venice Beach, Calif. Opening some time after the first quarter, it will be the designer’s only store outside his home base in Boulder, Colo. “We’re really focused on the U.S. right now,” said Reed, while showing $6 million in rough diamond and colored-stone jewelry Wednesday at Ylang 23 in Dallas. Reed, whose client list reads like Who’s Who of business and entertainment, operates an airy contemporary boutique in Boulder that’s separated from his workshop by bulletproof glass, a clear wall of water and tropical plants. It was designed by naturalist architect Mike Moore of Tres Birds so that bench jewelers and staff could work in a pleasant environment with natural light. All Reed’s pieces are one of a kind, and the self-taught jeweler believes he was the first American designer to use rough diamonds back in 1992. “In 1994 I went to my first craft show in Ann Arbor, Michigan,” he recalled. “I took 75 rough diamond rings and I sold 75 rough diamond rings.” He began placing his work in galleries including the Corcoran, Renwick and Aaron Faber and 10 years ago in fashion stores such as Joyce and Mitchells. Designer jewelry specialist Ylang 23 picked it up about four years ago, especially to cater to the market for alternative bridal rings. Reed’s annual sales now register in the tens of millions, according to account manager Kim Carpenter. “The recession was our launching pad,” Reed said. “In 2008 when people were retracting, we put $1 million into advertising in Town & Country, Veranda, in-flight magazines, billboards. People got really excited because they had never seen it before. I hear from guys all the time, ‘I don’t know why my wife wants your stuff, but she does.’ Men have been trained to buy jewels for the country club.” This weekend, Reed and his staff of 36 will be focused not on business but on their annual holiday bake off, whipping up 500 apple cakes for clients, friends and food pantries. “I want to be known for the fifth C – character,” he said.
Currency:
· 1 USD= ₹ 62.6135
· 1 EUR= ₹ 84.7849
· 1 GBP= ₹ 101.544
· 1 AUD= ₹ 57.1745
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 30440.00 | -140 | 45325.00 | 30 |
Mumbai | 28140.00 | -140 | 45325.00 | 30 |
Delhi | 28440.00 | -140 | 45325.00 | 30 |
Kolkata | 28420.00 | -140 | 45325.00 | 30 |
World Indices:
Exchange | Last | Change |
DJIA | 16064.77 | 54.78 |
FTSE 100 | 6674.30 | -7.03 |
CAC 40 | 4278.53 | 24.63 |
DAX | 9219.04 | 22.96 |
Nikkei | 15619.13 | 237.41 |
Hang Seng | 23711.31 | 15.03 |
Sensex | 20465.78 | 248.39 |
NASDAQ | 3991.65 | 22.49 |