Daily News Digest- 8th Sept'14

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• Hawk-Eyed Modi Mandates Focus on Merit in Govt Appointments: Prime Minister Narendra Modi has told ministries no uncertain terms that he won't brook any kind of obfuscation in the way they recommend candidates for specific roles as looks to end the way in which such appointments were said to be rigged in the previous United Progressive Alliance administration in some departments. This is part of a larger overhaul of the human resources management strategy being driven by the Prime Minister's Office with a view to getting the right team in place for implementing the government's agenda over the next five years. The diktat to focus on merit while proposing candidates was issued to all departments on September 5, after several instances in which alternatives were recommended to the Appointments Committee of the Cabinet (ACC) without being ranked in order of merit or detailing the choice of the selection panel appointed for the head-hunting exercise.

• Fresh Arrivals Brighten up Art Sale Canvas: A Mumbai-based art collector put a painting by Jehangir Sabavala up for auction in Delhi last week. The work of art, which had come to the market for the first time, fetched 3 crore, a record for Sabavala, who died in 2011. Saffronart, which conducted the auction, sold 83 other artworks for more than 38 crore in one evening. Like Sabavala's `The Flight into Egypt-I', more than 85% of the pieces were `fresh' works, which means they were hitting the market for the first time for resale. Such `fresh' pieces are contributing significantly to the recovery of India's art market, say collectors, artists, sellers and auction houses. Sotheby's is organising an India-focused week in London in October to sell 300 artworks. Sotheby’s is betting big on a 1982 painting by Tyeb Mehta, which will go under the hammer for the first time since it was acquired by a Japanese collector who has kept it in a museum near Kyoto until now. The estimated price is close to 8 crore.

• Vistara Poaches Key Men From IndiGo, JetLite: Vistara, the Tata-Singapore Airlines joint venture, which is awaiting flying permit from the aviation regulator DGCA, has inducted a senior pilot from IndiGo to head its safety team, according to sources. Besides, the carrier has also picked up JetLite quality manager Deepak Joshi to be a part of its safety wing, sources familiar with the development told PTI. Vistara, in which Tata Sons has 51 per cent stake with the rest being held by Singapore Airlines, is likely to take off next month subject to issuance of the air operator permit (AOP) by the Directorate General of Civil Aviation (DGCA). “IndiGo senior Commander Ashutosh Verma has moved to Vistara where he has been made head of the safety wing,“ the sources said. Verma is a DGCAapproved examiner, trainer and instructor, a mandatory requirement for the key job in an airline, they said. Joshi, who was handling some key responsibilities as quality control manager at JetLite, including aircraft deliveries, joined Vistara early this month, they said. The private airline has already appointed C S Varadarajan as Chief Human Resources Officer, Phee Teik Yeoh as CEO, Giamming Toh as Chief Commercial Officer and Niyant Maru as Chief Financial Officer.Capt Roshan Joshi from SIA will head the flight operations.

• Delhivery Raises $35 M in 3rd Round: E-commerce logistics services company Delhivery has closed a $35-million round of funding, led by Multiples Alternate Asset Management, as the country's e-commerce sector continues to attract substantial capital from private equity investors. The series C round of equity funding also saw participation from the Gurgaon-based company's existing institutional backers, Times Internet and Nexus Venture Partners. “We will use the funds to further expand our network, fulfilment space and technology portfolio,“ said Sahil Barua, co-founder, Delhivery , adding the company expects to be present in 260 town and cities across the country , up from its current 180, by the end of the year. The transaction is the largest round of funding raised by an Indian e-commerce allied venture till date. In May, ET was the first to report that Delhivery, which counts almost every e-commerce company among its clientele, had entered into negotiations to raise its third round of funding. While Barua refused to disclose the exact stake taken by the Renu ka Ramnath-led private equity firm, the deal is believed to value the four-year-old company upwards of 500 crore. “It's (Delhivery) got very strong valuations based on its growth rate, and its revenue growth has been at par with that of the e-commerce sector,“ said Satyan Gajwani, chief executive, Times Internet. Delhivery, which was founded in 2011 by a group of IIT and IIM alumni, expects its top line to touch 220 crore at the end of the current fiscal. “Delhivery has the right ingredients to build a highly differentiated logistics company that could expand beyond being a critical service provider for online retailers, into also becoming a strategic partner in fulfilling the online aspirations of many brick-and-mortar businesses,“ said Sudhir Variyar, MD, Multiples. The transaction is further proof of risk capital looking to invest outside of pure-play e-commerce companies and in allied sectors, such as logistics, reverse logistics and payment-related services.

• Jet Airways Announces Spl 5-day Fares for Economy Class: Domestic air carrier Jet Airways has announced special five-day fares for all passengers travelling in its economy class on the domestic network, effective September 6 to September 10. One of the special all inclusive fares starting from 1,999 is for travel period between October 7, 2014 to January 15, 2015, the airline said in a release. Another 5-day special fare starting 600, excluding taxes, is for travel period between January 16, 2015 to July 31, 2015. The offer is valid for travel only on direct flights on the airline's domestic network. The sale, which is available on first-come-first-serve basis, will not be applicable on group bookings, the release said.

• Elder Pharma Looks to Expand in Skin Care Segment: Post-Torrent deal, a much leaner and better leveraged Elder Pharmaceuticals Ltd has set in motion a process to expand its foot Rs 4,000-crore dermatology segment in a big way. The company already had some presence in skin care category but with a slew of new launches it plans to grab a market share of 4-5% in each sub-category, Elder Pharma said in a statement here. Skin care has always been a segment characterised by global MNCs like Unilever, P&G, Revlon, Lakme, Amway, Olay, Artistry, Garnier and L'Oreal as well as local players and thousands of small units in unorganised category, each vying for a dominant presence through adoption of a combination of marketing strategies and product differentiation. The growth of 20% in the skin care segment comes not only from urban areas but also semi-urban and rural pockets where a wide distribution network and judicious pricing policy are very important.

• GMR Venture to Upgrade Airport in Philippines: Cebu City in central Philippines is eagerly waiting for Indian infrastructure major GMR to upgrade and renovate its existing airport and build a brand new one to accommodate the ever increasing tourist inflow, a top Philippines official said here. The $320 million project will ramp up the capacity from 4.5 million passengers annually to 12.5 million. “We are happy that GMR has got the airport work, and we are eagerly waiting for the airport to be ready,“ Cebu Vice Governor Agnes Magpale told a group of visiting Indian journalists here. Cebu airport, called the Mactan Cebu International Airport (MCIA), the second busiest in the Philippines, is set to become brighter, get more seating capacity, more aerobridges and other passenger amenities once the upgrade is over, GMR-Megawide Chief Executive Advisor Andrew A. Harrison promised. Bangalore-based GMR Infrastructure owns 40 % in the consortium, with Megawide Construction Corporation of the Philippines as a major partner. “Our upgrade of Cebu airport and the brand new airport building is being undertaken keeping in mind that Cebu's is a tourism-driven economy. So, we will include hotels, casinos, offices, spas, shopping areas in our plan for the new airport,“ Harrison told the Indian journalists who were given a dekko of the existing airport and how it is proposed to be upgraded. GMR, which has to its credit Delhi International Airport and Hyderabad International Airport as well as construction of Istanbul's Sabiha Gokcen International Airport, which it exited later, was the highest bidder for the Cebu project, said the official. It will take up upgradation of Cebu airport on November 1 and will get it ready in six months. “We will have new seats, signage, tourism arrival counters, new washrooms,“ said Harrison. The consortium will then take up the new airport building project in February 2015, which will take around 36 months, said Harrison. The Philippines air force, which has an airbase in Mactan, would be shifting elsewhere to create space for the new international airport. The joint venture has 256 employees at present.

• Show your inked finger, get a discount on food, shopping: Voting for your candidate of choice in the upcoming Noida by election can be a profitable deal. Apart from the election commission's efforts to encourage voters to cast their ballots, restaurants, retail stores and pharmacists in the city are lining up offers for those who show the indelible mark on the index finger. Vikas Tyagi, manager of Shopprix Mall in Sector 61 said, voters can avail a 15% discount in restaurants and 5% in retail stores on poll day. The move is to encourage people to vote, he said. D S Chawla, manager of Geoffrey's restaurant at Centre Stage Mall and Gravity restaurant in Jaipuria Plaza in Sector 26, said both restaurants will offer a 20% discount to people who show an inked finger. Some shopkeepers at Ganga shopping complex in Sector 29 have promised gifts with every item purchased on polling day. "We'll offer gifts to all customers on election day. We are trying to increase voting percentage this election by creating general awareness," said Puneet Seth, owner of T-Point at the shopping complex. The district chemists association also has something similar planned. "We will give a 5% discount along with a certificate to all those who vote," said Anoop Khanna, president of district chemists association. Khanna said they had organized a similar campaign in the last election.

• Marriott International eyes 13 Fairfield hotels in India in 3 years: Marriott International is planning to expand its Fairfield brand in the country and is eyeing 13 hotels in about three years, a senior company executive said. "We have one property in Bangalore, which became operational last year. We have 12 more Fairfield hotels in the pipeline in India. We expect to add 12 more properties to our portfolio in approximately three years," Shruti Gandhi Buckley, Vice President Global Brand Management for Fairfield Inn & Suites at Marriott International told PTI here. The Fairfield Bengaluru Rajajinagar property offers 148 rooms. The US-headquartered hospitality major is currently planning to develop properties in cities including Bengaluru, Sriperumbedur, Indore, Katra, Goa, Kathmandu, Belgaum, Kochi, Jodhpur, Lucknow, Surat and Amritsar, she said adding that this will represent about 1,863 rooms. Fairfield will mainly be looking for developing properties that will ensure that it has a profitable building and operational model to drive owner returns, Buckley said. "We will follow both contract managed and franchised model. The model will primarily be managed but we do have some franchised hotels underway with experienced franchisees that we are confident can deliver a high quality service and experience expected by Fairfield," she added. Introduced in 1987, Fairfield is Marriott's solution for affordability and is mainly designed for the value-minded business travellers. There are more than 715 properties under the Fairfield brand across the US, Canada, Mexico and now India.

• Cargill eyeing acquisition in branded oil segment: Food products firm Cargill India is eyeing acquisition opportunities in branded oil segment to strengthen its portfolio in the domestic market. "We are always hungry for more acquisitions... We are keen to acquire a reasonably strong, even a regional brand," Cargill India Director, Consumer Pack Vertical, Aseem Soni told PTI. Earlier this year, Cargill had acquired Leonardo brand from Dalmia Continental for nearly Rs 100 crore. In 2011, it had also acquired the Sweekar brand from Marico Ltd. Soni declined to share any potential target at the moment, but said the company was looking at brands offering niche products. When asked if the company is looking for any particular type of oil, he said: "It could be in any space. If an oil is offering unique value to consumers we would look at it but we are not interested in acquiring just a label (brand) with thin margins." The company at present sells brands, including NatureFresh, Sweekar, Leonardo range of olive oils, Gemini, Rath and Sunflower Vanaspati. Last month, Cargill had also relaunched 'Sweekar', the refined sunflower oil brand it acquired from Marico, in the mid-price segment. "When we acquired Sweekar we changed the product and converted it into a high-end sunflower oil, so it became a superior product. The price went up by 30-35 per cent and we lost out customers. Now we are relaunching Sweekar," Soni said. With the re-launch, the company now offers Sweekar as 100 per cent sunflower oil and also retaining its premium product Sweekar Advanced. Cargill, which also sells 'atta' under NatureFresh, may also look at entering other staples such as pulses after end of calendar year 2015.

• Mexico's Cinepolis eyes Rs 1200 crore turnover from India by 2017: Mexican multiplex chain Cinepolis is aiming to clock Rs 1,200 crore in turnover from Indian operations by 2017 as it expands presence across the country. The firm, which has over 80 screens in the country, expects India to account for 10 per cent of global revenues by that time. "Presently, India contributes around 4 per cent of our international revenue (outside of Mexico). It would increase... we expect it to be more than double, nearly to 10 per cent by 2017. Roughly, about Rs 1,200 crore," Cinepolis India Managing Director Javier Sotomayor told PTI. Cinepolis expects its global revenues to touch USD 2 billion by 2017, he added. Headquartered in Morelia, Mexico Cinepolis is world's fourth largest movie theatre circuit, operating more than 3,000 screens in 11 countries. The company also plans to pump in about Rs 1,500 crore over the next three years to increase its screen count to 400 by December 2017. Sotomayor said the firm has already invested Rs 400 crore in its Indian operations.

• Mary Kom taps crowd-funding for proposed boxing academy: Champion boxer M.C. Mary Kom is tapping the crowd-funding route to build better infrastructure facilities for her proposed boxing academy in Imphal with the help of financial services company Edelweiss Group. Mary Kom plans to initially raise Rs.20 lakh by 30 September. “I have a dream—a dream to create many, many more Mary Koms,” the five-time World Amateur Boxing Champion and bronze medal winner at the 2012 Olympics said in a phone interview from her native Manipur on Friday. “I want to build sufficient infrastructure for my boxing academy including separate hostels for men and women, boxing rings, free food, tracksuits, etc. The central government has given land and we have started construction that will be completed this year. But we need create better infrastructure,” Mary Kom said. Crowd-funding refers to the collective effort of individuals who pool money—mostly through the Internet—to support start-ups. There are two basic forms of crowd-funding—community crowd-funding and financial return crowd-funding. The former includes donation-based concepts while the latter involves investors contributing money in return for a financial payoff or, in some cases, equity. The initiative comes after director Omung Kumar’s Bollywood biopic Mary Kom, starring Priyanka Chopra, opened in theatres last week and the success of the ice bucket challenge, which raised about $100 million in less than a month for research into a progressive neurodegenerative disease called ALS (amyotrophic lateral sclerosis, commonly known as Lou Gehrig’s disease). The challenge involved pouring a bucket of ice cold water on your head, donating to the cause and nominating three other people to do the same.

• Rajiv Rattan to invest Rs360 crore in Indiabulls Power: Rajiv Rattan, founding chairman of Indiabulls Power Ltd, will infuse Rs.360 crore through a preferential allotment of shares, the company said in a statement. This investment is at a 30% premium to the company’s Friday closing price of Rs.9 per share on BSE. In separate transactions, Rattan, who had incubated the power business within the Indiabulls Group, has also bought out all shares held by Sameer Gehlaut and Saurabh Mittal in Indiabulls Infrastructure and Power Ltd, the holding company of Indiabulls Power. Following the Indiabulls Group’s reorganization this year, Rattan and Mittal have continued to hold a 15% stake in Indiabulls Housing Finance Ltd, an 18% stake in Indiabulls Securities Ltd and a substantial stake in Indiabulls Real Estate Ltd valued at around Rs.3,000 crore, Indiabulls Power said in a statement. In July, the promoters of the Indiabulls Group, which has interests in housing finance, real estate, securities and power, had decided to split by restructuring the conglomerate, 14 years after they came together to create it. In a notice to BSE in July, the group had said the promoters have “mutually agreed” to restructure the business units of the group by segregating responsibilities of the top management, in order to give each business focused attention. The restructuring is effective from 9 July.

International:

• Pound falls on fears of Scottish independence: The currency fell 1% in early Monday Asian trading to $1.6165, and also fell almost 1% against the euro to 1 euro 2527. It came after a YouGov poll suggested supporters of an independent Scotland had taken a narrow lead in the referendum debate for the first time. Just a week ago sterling was trading at $1.66 against the US dollar. Voters in Scotland go to the polls on Thursday, 18 September, when they will be asked the "Yes/No" question: "Should Scotland be an independent country?" The poll, which featured in the Sunday Times, suggested that - of those who had made up their mind - 51% would vote to leave the UK, compared to 49% who would vote not to.

• Coca-Cola to adopt traffic light health labels in UK: Coca-Cola will adopt government recommendations and introduce traffic light nutrition labels on the front of its cans and bottles. It had previously rejected the plans. The colour-coded labels will show nutritional content in each container and percentage guidelines for daily consumption of fat, saturated fat, salt, sugar and calories. Coca-Cola said that it had changed its stance after "having gauged British consumers' views on the scheme". The voluntary traffic light labelling programme was introduced in July last year, with all major supermarkets agreeing to the plans. Coca-Cola and Cadbury had publicly rejected the new system. Jon Woods, general manager of Coca Cola UK & Ireland, said: "We have monitored the labelling scheme since it started to appear in-store and asked shoppers in Great Britain for their views. "They told us they want a single, consistent labelling scheme across all food and drink products to help them make the right choices for them and their families. "That is why we have decided to adopt it across our full range of brands."

• Lord & Taylor Opens Brand Assembly Concept Shop: No hot items. Few new trends. Shoppers are bored and would rather spend on technology or the home. Department stores have been going through that litany of complaints for the past few seasons — and now they’re trying to do something about it. They aren’t only chasing younger customers; now they all want younger, up-and-coming designers, too. Stores from Bergdorf Goodman to Macy’s, Lord & Taylor to Bloomingdale’s are eager to snap up young labels as they rush to inject newness into their selling floors and jump-start women’s apparel sales, which have been on a steady decline for the past few seasons. Their hope is that by offering at least a few under-the-radar brands, it will polish what they already have in their stores. Take Lord & Taylor as an example. Just as fashion week was revving up, about 450 thirtysomethings packed the second floor of the retailer’s Fifth Avenue flagship for the opening of the Brand Assembly concept shop Thursday night. The 1,000-square-foot space, showcasing emerging and advanced contemporary designers, drew a demographic not often seen en masse at the store. “These are designs you’ve probably never seen before. They’re so innovative,” Lord & Taylor’s fashion director Stephanie Solomon said during the Brand Assembly fashion show, coordinated by L&T and Web site Refinery29, further proof that the store is rushing into the modern era.  On the runway were strong prints, maxidresses, short skirts with side slits, texture and colorful knit tops with an overall feminine and flirty appeal. The Brand Assembly shop has a rotating mix of 20 creators, 75 percent New York-based, among them emerging designers Calla, Priory of Ten, Michelle Kim, Daniella Kallmeyer, Maria Dora, Saunder, to be adored, Etelka and Oliveve. Established designers include Sachin & Babi and Torn by Ronny Kobo. The average ticket is $350, with the range from $60 to $3,000.

• Wells Fargo Sees 'Sellers' Market' as Retailers Struggle: Attention fashion designers: It’s better to both wholesale and retail than to retail alone. Fashion brands that wholesale are generating stronger growth than the retailers they once depended on — and in many cases they’re doing it at the expense of those very same retailers. A study of five years of data on retail and wholesale performance by analysts at Wells Fargo Securities compared figures from 11 branded apparel and footwear companies with those of 42 retailers, from specialty stores to department stores, discounters and even groceries. The branded firms included PVH Corp., owner of Calvin Klein and Tommy Hilfiger; VF Corp., owner of Seven For All Mankind, Vans and Timberland as well as Wrangler and Lee; Nike Inc.; Hanesbrands Inc. and Ralph Lauren Corp. Among the retailers were Macy’s Inc., Kohl’s Corp., J.C. Penney Co. Inc., Gap Inc., The TJX Cos. Inc. and Urban Outfitters Inc. The study, led by senior analyst Evren Kopelman, found the wholesale group benefited more from expansion into international markets and picked up market share as they developed and built their own retail operations and other direct-to-consumer initiatives such as e-commerce. What were once suppliers are now competitors — and imposing ones, too. Plus, the wholesale brands, as they’ve become more vertical, have less exposure to the slowdown in mall and store traffic in the U.S. Through their choice of product assortments, such as handbags, or lifestyle emphases, such as athletic or athletic-inspired product ranges, many have outpaced the performance of retailers with broader, less-focused offerings.

• Gap Inc.'s Athleta Steps Up Expansion: Athleta is at a tipping point. With competition heating up, Athleta, a division of Gap Inc., is accelerating store openings and product innovation, and raising its profile. Gap executives envision Athleta as going international, evolving into the corporation’s fourth global brand, along with Gap, Old Navy and Banana Republic.  On Wednesday, after 16 years in business, Athleta staged its first fashion show, with models in neon racer bras, striped and printed leggings, cropped hoodies and quilted tops somersaulting and break-dancing across the stage. In the race to capitalize on athletic apparel as fashion, Athleta checked the boxes on the right trends: bright colors, muted neutrals, prints and a little edge. “We are in a time when fitness and fashion are converging,” Nancy Green, president and general manager of Athleta, told WWD. “Athleta is a brand a lot of people are just finding out about.” She said the chain will end the year with 100 stores and that another 30 are slated to open next year. Gap bought Athleta six years ago for $150 million, when it had no stores and sold only via catalogues and online. Activewear is far outpacing trends in apparel generally, rising 6.6 percent for the 12 months ended June 2014 to about $33.7 billion in the U.S. or 16.3 percent of total apparel turnover, according to The NPD Group. “Activewear is booming, with sales growth exceeding that of the apparel market as a whole, and it’s because consumers are wearing activewear not only to the gym, in the gym and from the gym…they are working out, going out and even hanging out in activewear,” said Marshal Cohen, chief industry analyst at NPD. In the 12 months ended June 2013, activewear sales were up 10 percent, and in the 12 months ended June 2012, they rose 8 percent, NPD said.

• Rakuten in Talks to Buy Ebates: Billionaire Hiroshi Mikitani’s Rakuten Inc. is in talks to buy U.S. website operator Ebates Shopping.com Inc., as the owner of Japan’s largest online mall expands overseas. Rakuten is negotiating the acquisition, it said in a statement on Sept. 6, without providing further details. The Tokyo-based company may pay about 100 billion yen, or $950 million, for Ebates, a person familiar with the matter said, asking not to be named as the details of the talks are private. The deal follows Rakuten’s $900 million acquisition of Internet messaging and calling service Viber in March as Chairman Mikitani’s company looks outside Japan for growth. It would give Rakuten access to Ebates services including a cash- back program for customers who shop at the U.S. company’s partner websites, the person familiar with the negotiations said. San Francisco-based Ebates didn’t immediately respond to an inquiry after regular business hours. Rakuten said in June it’s open to more large-scale acquisitions after strengthening the company’s financing by issuing its first public bonds, selling 30 billion yen of three- year notes. The company is accelerating deals inside and outside Japan and said in July it agreed to acquire an 18 percent stake in a Japanese low-cost airline venture with AirAsia Bhd. It also bought Canadian e-book company Kobo Inc. in 2012 and paid $250 million for U.S. shopping website Buy.com in 2010. Ebates was founded in 1998. The San Francisco-based company offers discounts and rebates for more than 1,700 online stores, including Amazon.com Inc., Macy’s Inc. and Home Depot Inc. Members get paid back a percentage of every purchase they make each quarter. Rakuten currently has a loyalty program that lets customers earn points when they shop and use them as discounts for future purchases.

• Quiksilver Shares Pull Back on Weak Q3: Shares of Quiksilver Inc. lost nearly a quarter of their value Friday after the Huntington Beach, Calif.-based beach-inspired apparel and footwear firm posted a deeper-than-expected third-quarter loss with only nominal progress in its effort to reinvigorate its wholesale operations. Shares, which peaked in the past year at $9.29 on Nov. 13, pulled back 70 cents, or 24.7 percent, to close Friday at $2.13. Volume was 30.3 million shares, more than 10 times the three-month average of 2.9 million. Quiksilver has downsized its business, selling the Tony Hawk brand to Cherokee Inc. in January and licensing out the Quiksilver and DC apparel businesses to third parties. It’s also centralized apparel design operations in France and footwear design at its headquarters. 

Tech:

• On Startup Hunt, Infosys gets a Pitch from VC Fund Accel: Accel Partners snatched an opportunity to impress cash-rich Infosys when the Silicon Valley-based venture capital fund pitched at least two portfolio companies to the Bangalore-based outsourcer, according to two people with direct knowledge of the development. Accel Partners, which counts Facebook and Flipkart among its portfolio firms, showcased six startups, including CrowdAnalytix and Paxata, before the senior management of Infosys, which is closing in to make its first investment from the $100-million (602-crore) fund dedicated to invest in disruptive startups. ET could not independently verify the names of the four other startups discussed with Infosys. Infosys has been lagging its peers in growth but has over $5 billion (Rs. 30,000 crore) surplus cash on its books. Although Sikka has had discussions with other VCs in August, Accel for now remains the only venture capitalist which has made a pitch to the country’s second-largest software exporter, said a person familiar with the development. The discussions were led by Infosys Chief Executive Vishal Sikka and Accel Partners’ Dinesh Katiyar, who has known Sikka since the time both were at Stanford in the mid-90s. Katiyar confirmed to ET that he had met Sikka and senior ranks of Infosys but declined to share details. Another executive familiar with the development said Infosys’ management until now has not started discussions with any of the startups. “It’s too early to say how much stake the company (Infosys) will pick in the startups,” said the executive, adding that Infosys could make an investment in only one startup for now.It is not clear yet if Infosys’ management has come to a decision but the executives said that since Accel is an investor in both the data-focused startups, the company may wait until the last round of discussions before it begins talks with the startups. “Vishal (Sikka) and other senior executives have met with venture capital firms to explore potential partnerships with companies in their portfolio,” said a spokeswoman for Infosys in an email response. “We are encouraged with the interest that the innovation ecosystem has shown. We cannot comment on specific companies at this time.” An email sent to Accel Partners remained unanswered.

• Uber in Talks to Integrate Digital Wallet in India: Global taxi-hailing company Uber is in talks with firms providing digital wallets and payment gateways in India as it looks to become compliant with local regulations. The Reserve Bank of India shut a loophole last month by clarifying that online payments taking place between two Indian `residents' cannot bypass two-factor authentication. Besides the additional authentication, the central bank also wanted transactions to be carried out in Indian rupees and not dollars. Uber stores credit card details of passengers and automatically charges the card once the taxi ride is over without two-factor authentication as it uses an international payment gateway. Companies such as Uber now have until October 31 to become compliant. “They are working on integrating a mobile wallet into their application,“ said a person with direct knowledge of the discussions. “It will most likely be Paytm. The integration will take some time as it has to go through the Uber process."

• Micromax gears up for Chinese challenge: Alarmed at the growing popularity of Chinese phone makers like Xiaomi, homegrown major Micromax will be launching two new phones this week, targeted at the fast-growing Rs 10,000-15,000 category. Vineet Taneja, CEO of Micromax, told TOI that the company is not worried about the entry of newer brands, many of whom have a strategy of selling phones only through e-retailers with no presence in multi-brand outlets. Taneja said the strength of Micromax lies in a wide distribution network that covers both online and offline channels.

• Tupelo launches fitness tracker 'Mymo' in India: Dubai-based health and wellness tech firm Tupelo launched an electronic device to track fitness level of its users in India. The coin sized wearable device branded 'Mymo' tracks users' steps, distance and calories wirelessly onto an iPhone, Android smart phone or a computer and helps them to maintain fitness level. "Our research showed a 85% dropout rate in the first few weeks of buying a wearable device due to a lack of motivation. As people need incentives to incorporate activity into their daily schedule, Mymo provides the incentive to stay engaged," Tupelo chief executive Martyn Molnar told reporters at the product launch. Priced at Rs 3,999, the device has six-month battery life and comes with rewards packages, which enable users to track their movements and earn 'My Miles' to convert them into talk time, groceries, airline miles and vacations abroad. "We reward our users for being active and keep them motivated to achieve their fitness goals," Molnar said on the occasion.

• Bangalore No 1 buyer of furniture sold online: The coming together of a robust real estate market with a tech-savvy population has made the country's IT capital set online furniture sales on fire. In the rapidly growing world of e-commerce, Bangalore tops the charts in the overall revenue contribution for furniture e-tailers, who are chasing a largely unorganized market that's $18 billion in size. For home decor and furniture e-tailer FabFurnish.com, Bangalore contributes about 21% of its revenue - higher than even larger consumer-led markets like Mumbai and the company's home base of NCR. And for Urban Ladder, a premium-furniture e-commerce startup, Bangalore is its biggest market, constituting about 30% of the revenue. "There are a couple of factors that favour Bangalore - the internet penetration in the city and a very large tech-savvy audience," says Ashish Goel, co-founder, Urban Ladder. Bangalore logged a 43% rise in internet users over the past one year, adding 3.8 million netizens as per data available with the Internet and Mobile Association of India. Pearson India ex-CEO Srikanth Iyer, who recently co-founded HomeLane, a startup focused on providing home set-up solutions, says: "In terms of willingness to shop online, even for big-ticket purchases like furniture, Bangaloreans are on top." A year ago, Urban Ladder launched its sofa range costing between Rs 45,000 and Rs 85,000. "Everybody said we were crazy. As of now, we are among the top three sofa sellers in Bangalore across even physical stores," adds Goel. The e-tailer sells around 100 sofa units a month in the city, competing with established offline players such as Home Center and HomeTown. "Furniture as a category is most popular among Bangalore customers, the reason being the city has a huge number of modern dwellings. Only 3% of Bangalore's population lives in slums, as compared to 60% in Mumbai and around 18.7% in Delhi," says Vikram Chopra, founder and CEO of Fabfurnish.com, which is backed by German incubator Rocket Internet. "With men contributing 51.5% of Bangalore's revenue, it explains why recliners are one of the most popular products shopped for," Chopra adds.

• Infibeam becomes GVK’s tech partner for passenger services at Mumbai airport: Infibeam, an Ahmedabad based e-commerce technology solution provider said that it has implemented reservation engine integration for Pranaam GVK Guest Services at Chhatrapati Shivaji International Airport, Mumbai. Pranaam GVK Guest Services is a meet and assist services being provided by GVK-Mumbai International Airport (MIAL) at CSIA. MIAL has selected Infibeam's state-of-the-art travel and ticketing platform to host and manage automation for world class meet and assist service primarily focussed on enhancing passenger experience and ensure seamless and stress-free travel through Mumbai airport. The company said that Pranaam offers travel services through CSI airport to customers worldwide. The service provides lounge access, dedicated porter for check-in baggage assistance and complete assistance by Pranaam officer for guests arriving, departing or transiting through CSIA. Rekha Nair, head - airport services, said, "With customer centric focus, MIAL intends to provide best in class experience and be part of the passenger lifecycle through e-commerce platform. We are looking at increased sales, marketing and servicing channels by providing user-friendly and efficient ecommerce platform by partnering with Infibeam." Ganpat Singh Rajput, head-travel and ticketing, said, "At Infibeam, our technology platform solutions adapt for unique business implementations, having far reaching effect on commerce ecosystem."

• Alibaba seeks to raise more than $21 billion in record US tech IPO: Alibaba Group Holding Ltd seeks to raise more than $21 billion in an IPO that will value the Chinese e-commerce giant at up to $163 billion and rank as the largest-ever technology debut in the United States. Alibaba expects to price its initial public offering between $60 and $66 per American Depository Share, valuing the company at about $162.69 billion at the top end of the range and raising a maximum of $21.1 billion. The company founded by former English schoolteacher Jack Ma will decide on its final price after a globe-spanning roadshow that will kick off in New York on Monday, and is expected to stop in cities from Hong Kong to San Francisco. If all goes well, Alibaba may ring the opening bell on the New York Stock Exchange in as little as two weeks. Industry analysts had expected Alibaba to try for a valuation in excess of $200 billion, ranking the Chinese company among the 20 largest publicly traded companies in the United States. It may eventually price above the initial range, should it deem investor demand sufficient. Many investors are eager to buy a piece of a Chinese company that handles more e-commerce than Amazon.com Inc and eBay combined. "This number may seem enormous, but when you look at the value compared with the company's fundamentals, it's not as rich as we might expect," said Brian Hamilton, chairman of private company analysis firm Sageworks.

• Wipro pumps in funds to grow in-house startups: Even as Rishad Premji spearheads Wipro's $100-million corporate venture arm that invests in startups, the central strategy office under him also functions like an in-house venture capitalist that funds ideas from within the company. The strategy office runs what it calls the H2H3 (Horizon 2, Horizon 3) Investment Program to nurture ideas coming from various business units that have the potential to scale up over a two- or three-year timeframe and generate substantial revenues. The move is an encouragement for employees who think up such ideas, as also potentially a booster for the company given the need to differentiate itself from rivals. Recently, the program funded the idea of a commodities trading and risk management (CTRM) platform that has the goal to grow to a $50-million practice in three years.  CTRM is expected to drive growth across the banking and energy and utilities verticals. Bangalore startup Eka Software has a very successful commodities platform. Other H2H3-funded practices are in the areas of mobility, cloud and analytics. Wipro said it could not comment on the program. The H2H3 program identifies ideas in solution creation, white spaces, product-led services, new lines of business and new geographic penetration. The program is said to have not only invigorated business unit team leaders to come up with proposals that have the potential to generate a revenue upside, but also compete internally to receive mentoring and funding support. By the end of 2012 fiscal, 28 ideas were rolled back into the business units out of which 9 ideas generated revenues. A performance-management solution was one of the successful ideas; it used analytics to predict outcomes for data sourced from insurance companies. Sources told TOI the solution brought revenues of $0.75 million in the first year of incubation. By the third year, it recorded $33 million in revenues and was rolled back into the BFSI unit.