Daily News Digest- 9th Sept'14

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• Diesel Price Likely to Come Down as Brent Crude Slips below $100: India is considering a cut in diesel prices for the first time in seven years amid global crude price dropping below $100 a barrel for the first time in more than a year, a move that could take some of the sting out of inflation as a patchy monsoon threatens a rise in food prices. That in turn could allow the central bank to ease up on its interest-rate stance at the next monetary policy announcement, boosting revival prospects. This comes as the government has been considering freeing up diesel prices, since subsidy has been narrowed by incremental, monthly price increases. “If this downward trend in international oil prices continues and the rupee appreciates even marginally, there will be over-recovery from this month,“ said a senior executive at an oil PSU who didn't want to be named. “We intend to pass this to customers,“ said the executive. “A price review is expected on September 15.But the decision regarding diesel price cut will be taken by the government because it is a regulated fuel.“ The government is still evaluating the political situation in pollbound states before deregulating the fuel, government and industry officials said. Benchmark Brent crude fell Monday to a 14-month low of $99.59 per barrel, dropping below $100 for the first time since June last year because of sluggish demand from major importers, particularly China. Meanwhile, the rupee has appreciated marginally against the dollar, which has almost aligned pump prices of diesel with market rates. According to the oil retail industry, pump prices of diesel have not been cut in the last seven years except for a marginal reduction on July 25, 2012, because of changes in distribution costs. Oil companies review petrol and diesel prices every fortnight. While petrol prices change on the 15th and 30th of every month, the government has been raising diesel prices by 50 paise every month since January last year. The previous UPA government had decided to raise diesel rates in small monthly doses until pump prices were aligned with market rates and it could be deregulated. According to oil companies, a petrol price cut is imminent for the fourth time in a row.

• M&M Lines Up Three Compact SUVs for Launch Over Two Years: Mahindra & Mahindra is lining up three major offerings in the compact sport-utility-vehicle segment for launch over the next 18-24 months, as it aims to reclaim space lost to the Ford EcoSport and Renault Duster over the past couple of years. All the three vehicles will be less than four metres long, a segment that industry experts say is going to be a key driver of passenger vehicle sales and where M&M has only a limited presence. Mahindra is still the local leader in utility vehicle sales, but its market share has fallen to 42% at the end of the fiscal year through March 2014 from more than 55% two years earlier. Renault meanwhile has grabbed about 9% of the market with the Duster, and Ford captured 8.68% with its sub-4-metre EcoSport. M&M's first compact SUV, the Quanto that failed to sustain the initial excitement, is getting ready for a major midlife facelift, said people with knowledge of the matter. The project, codenamed U215, includes major design changes which are currently being worked on at M&M's design centre in Italy. The U215 will be positioned between the other two vehicles in the pipeline -M&M's first micro-SUV, dubbed S101, which will create a new entry point for the company and be pitted as an alternative to premium hatchbacks, and the probable Bolero replacement, codenamed U301. The U301 may co-exist with the Bolero, a vehicle that still has acceptance in the hinterlands. M&M intends to do a Maruti in the compact SUV space, offering an alternative at every 50,000-75,000 price points over the entry-level vehicle, a person close to the company told ET on condition of anonymity. “All three sub-4 metre SUVs will have different characteristics catering to different segment of buyers. Design will be the key differentiator. The S101 compact SUV has a car-like appearance whereas the U215, the new Quanto, will assume a more rugged appearance than the boxy stance it had when launched,“ this person said. According to him, the U301 will have the boldest features with a “Jeep Wrangler-like appearance“. An M&M spokesman said the company cannot comment on specific product plans. “As a general rule, we constantly work on refreshing all our products,“ he said.

• Can Pantaloon Turn Around With SHITAL MEHTA’s Midas Touch?: Shital Mehta doesn't like to be called a turnaround man, although that's really his calling card. He led the transformation of Van Heusen from a 50 crore wholesale men's shirt brand in 2002 into a premium, lifestyle brand with sales of a little less than 1,000 crore. He made Madura Fashion and Lifestyle 's loss-making luxury retail format, The Collective, a profitable concept three years ago. Now the Aditya Birla Group, which also owns Madura, is looking to the Pantaloons chief executive to change the fortunes of the loss-making department chain it acquired over a year ago from Future Group. The strategy is simple. “Women's apparel has always been the draw at Pantaloons--it accounts for about half of sales compared to a quarter in most other department store chains. And exclusive brands are even more profitable--nearly 20% higher than national brands,“ said Mehta, who has reorganized the stores to feature more than a dozen of Pantaloons' own brands such as Annabelle and Rang Manch up front and on the most visible racks. The remaining space has been reserved sparingly for marquee brands including some belonging to the group such as Allen Solly and Peter England. The company also renovated more than half its 80 or so stores and plans to add another 20 doors by next year. As part of a broader strategy to introduce exclusive international brands, Pantaloons has just signed a licensing deal with American women's clothing brand Candie's. The youth brand is sold across 650 doors globally and ranks among the bestsellers at US-based department store chain Kohl's. In the last six months, Pantaloons has also launched San Frisco Jeans Co. and Byford, a British sport inspired lifestyle brand. While the Aditya Birla Group announced the acquisition of Pantaloons from Kishore Biyani two years ago 1,600 crore, the chain comfortably came into its fold in April 2013. “The real attempt to revive the department-store chain gained traction only during the beginning of the year after we managed to sell most of the old merchandise sourced by previous owner Future Group and replaced it with newer collections,“ said the 43-year-old Mehta, who was born in Bhavnagar, Gujarat, and peppers his conversation with native colloquialisms and talks about rebuilding the organization from the ground up. “At the same time, we needed to retain its DNA, that of being women oriented and having an extremely loyal consumer base.“ Pantaloons has since streamlined operations, spent on staffing, adding 40 new designers and changed nearly half the 200 vendors it had earlier with ones that are bigger and specialise in their clothing sub-segment. This reflects to an extent on the financials. Gross margins expanded nearly 4% while the average bill value rose 13% or 200 per bill to more than 1,500 in the quarter ended June from the year-ago period. However, experts feel such changes at an operational level are only part of what needs to be done. “Rather than opening more stores, Pantaloons should focus on changing consumer perception about the brand that currently falls in between upmarket and mass-priced department chain,“ said Ruchi Sally, director at boutique retail consultancy Elargir Solutions. “Pantaloons needs to communicate aggressively that it has changed for the better.“ With sales of 1,661 crore in fiscal 2014, the department chain is still in the red with a net loss of the company attributes to increased staff and renovation costs.

• Germany’s Bosch and Siemens has aggressive plans for India's home appliance business: Germany's Bosch and Siemens Home Appliances is becoming aggressive four years after entering India to become one of the top five home appliances maker. The company plans to localize products for the Indian market, may enter for the first time globally into entry-level volume products such as single door refrigerators and top loading washing machines, and develop the market for under-penetrated categories like dish washers in the country. The ambition of one of Europe's largest home appliances maker comes after the company recently appointed the first Indian to lead the local operations -- Gunjan Srivastava who joined from audio products maker Sennheiser Electronics with long stint before in Philips. "We may have been a late entrant in India, but fully committed to become a significant player by making high investments as required," said Srivastava, managing director and chief executive officer at Bosch and Siemens Home Appliances India (BSH India). BSH India has also just gone on steam with its 50-million manufacturing plant near Chennai which has developed a new range of localized front-loading washing machine. These products will hit the market later this month, which the company feels will help to gain market share. "We are currently the fourth largest in front-loading washing machine with 9-10% share which we intend to double in next 12-18 months," said Srivastava. BSH sell its products under two brands - Bosch and Siemens. The former is positioned as a mass premium level in India which will compete against the Korean duo, LG and Samsung, while the latter is positioned in the premium-end. The size of the Indian consumer electronics and home appliances market is estimated at around Rs 40,000 crore.

• Shemaroo Entertainment's Rs 120 cr IPO to open on Sep 16: Shemaroo Entertainment, which is into film and entertainment content business, will hit the capital market on September 16 to raise up to Rs 120 crore through an initial public offer (IPO). This will be the fourth IPO of 2014. Prior to that, there have been public offers of Wonderla Holidays, Snowman Logistics Ltd. One IPO is currently underway, wherein Sharda Cropchem is aiming to raise over Rs 350 crore through a public offer scheduled to close tomorrow. Shemaroo has offered a 10 per cent discount to retail subscribers. Of the total shares offered, 60 per cent will be offered to qualified institutional buyers (QIBs). The company's IPO will open on September 16 and close on September 18, as per information available with the Securities and Exchange Board of India (Sebi). Shemaroo had received the market regulator Sebi's nod to launch the public offer in February. The company filed its draft red herring prospectus (DRHP) in June last year. The proceeds from the issue would be utilised to fund working capital requirements and general corporate purposes. The proposed IPO comprises "equity shares of face value of Rs 10 each at the issue price aggregating to Rs 120 crore." Besides, the firm is considering a "pre-IPO placement up to eight lakh equity shares aggregating up to Rs 10 crore". The lead managers of the issue are Yes Bank Ltd and ICICI Securities Ltd.

• Parryware to provide sound sanitation facilities by building toilets in 25 Schools across India: India sanitary ware brand Parryware has announced its plans to build toilets in 25 schools across the country. The initiative is a part of the company's corporate social responsibility (CSR) plan and is inspired by the Prime Minister's 'Swach Bharat Programme' that emphasises on the need for better sanitary conditions in the nation with a special focus on toilets in schools. Parryware will be targeting schools in cities like Coimbatore, Indore, Erode, Bhiwadi, Sriperumbudur, Pantnagar, Alwar and Ranipet as a part of the initiative. Wherever applicable, it will be constructing separate toilets for girls, providing greater comfort and incentive to girls to continue their education. Parryware had earlier announced the launch of a new low-cost Indian-style toilet Pan which would suit the requirement of the 'Swach Bharat Programme'. "The Prime Minister's vision of providing sound sanitary conditions to each citizen of the country is laudable. Fortunately, we at Parryware, as India's frontrunners in bathroom solutions are in an ideal position to contribute meaningfully to this dream project," said Pau Abello, Managing Director, Roca Bathroom Products Private Limited. "We will be using our CSR funds towards building toilets across schools and hopefully restoring the dignity of students so that they don't have to resort to open defecation," he added. He further stated CSR is also in the DNA of Parryware's parent company, Roca, to provide better sanitation and water access to Indian people.

International:

• Suzuki Swift Sales Cross 4-Million Mark Globally: Suzuki Motor Corporation has clocked four million mile stone in total global sales of its successful premium hatchback Swift with about half of them coming from India. According to information available on the company's website, Swift, which was launched as a world strategic model in 2004, reached cumulative worldwide sales of four million units in August 2014.

• Alibaba gives muted message to potential IPO investors: Alibaba Group Holding Ltd founder Jack Ma on Monday gave potential investors little new information about his Chinese e-commerce giant, but surprised them by addressing governance concerns, including a controversial 2010 spin-off of its online payment service. Ma made the remarks at a luncheon at the Waldorf Astoria hotel in New York in front of hundreds of hedge funds, mutual funds and other institutional investors, as the company kicked off a two-week, multi-city marketing blitz for its initial public offering. Alibaba was expecting about 500 investors to attend the first stop on the roadshow, but some 800 showed up, forcing some into overflow rooms. Alibaba is seeking to raise more than $21 billion in the largest-ever US technology IPO, valuing the company at up to $163 billion. It expects to price the IPO at $60 to $66 per American Depositary Share, which are scheduled to start trading on the New York Stock Exchange later this month. Industry analysts had expected Alibaba to try for a valuation in excess of $200 billion, ranking it among the 20 largest publicly traded companies in the United States. The marketing effort, which will take Alibaba on a globe-trotting tour, will help determine whether the company will price above its initial range and come closer to that valuation. Several investors who spoke with Reuters before and after the event said they went into the presentation with a series of questions about Alibaba, ranging from concerns about its corporate governance and transparency, to plans for US acquisitions and growth. They said they did not learn anything new during the lunch - of boxed turkey sandwiches - but came away feeling the event was well-choreographed. Akram Yosri, a managing partner at 3iCapital Group, said he had hoped to find out more about how the company planned to grow globally, and particularly how it plans to compete with Amazon.com Inc and eBay Inc in the United States.

• Founder selling entire stake in Michael Kors: Sportswear Holdings Ltd, the holding company for lifestyle fashion marketer Michael Kors Holding Ltd is selling its entire stake in the company that it founded. Sportswear Ltd is selling its entire or 5.7% stake in the handbags and fashion apparel retail business totalling to 11.6 million shares at $76.75 per share amounting to $890 million. Michael Kors said it will not receive any proceeds from the sale of shares by Sportswear Holdings. For the first quarter ending June 28, 2014, Michael Kors reported a sales surge of 43.4% to $919.2 million at Michael Kors from $640.9 million in the corresponding quarter of 2013. Net income too zoomed to $187.7 million or $0.91 per diluted share from $125.0 million or $0.61 per diluted share it posted in first quarter of 2013.

• L'Oreal to buy Brazilian hair care group Niely Cosmeticos: L'Oreal said on Monday it had signed an agreement to acquire Niely Cosmeticos Group which it said was Brazil's largest independent hair coloration and Hair Care Company. Financial terms were not disclosed. Niely Cosmeticos Group had net revenue of around 140 million euros ($181 million) last year. Its products are distributed in supermarkets, pharmacies and perfume chains and are popular with Brazil's growing middle class, L'Oreal said in a statement.

• Electrolux to buy appliance division of General Electric in $3.3 billion deal: Sweden's Electrolux is buying the appliances business of General Electric for $3.3 billion, boosting its presence on the North American market, the companies said Monday. The acquisition is the largest ever for Stockholm-based Electrolux, ranked as the world's second biggest home appliance maker after U.S. rival Whirlpool. GE confirmed last month it was in talks to sell its appliances division — maker of the first electric toaster more than 100 years ago — as part of its effort to focus on selling more complex and profitable industrial equipment. Electrolux CEO Keith McLoughlin said the move, which needs regulatory approval and is expected to be completed in 2015, "takes our company to a new level in terms of global reach and market coverage." Electrolux plans a rights issue corresponding to about 25 percent of the purchase after the acquisition is complete. Headquartered in Louisville, Kentucky, GE Appliances' products include refrigerators, freezers, cooking products, washers and dryers and air conditioners. The division, which has 12,000 workers at nine factories, earned $381 million on $8.3 billion in sales last year, for a profit margin of 4.6 percent. "GE Appliances' people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the U.S.," GE Chief Executive Jeff Immelt said in a joint statement from the two companies. Chip Blankenship, president and CEO of GE Appliances, said at a news conference in Louisville that Electrolux is "a company whose sole focus is being a global leader in appliances" and called the alliance "the right business model to ensure our long-term presence and competitiveness."

• Japan's economy shrinks 1.8% in the three months to June: Japan's economy shrank 1.8% in the April-to-June period, worse than forecast and raising more questions about the government's economic policy. The official data confirmed that the world's third largest economy suffered its sharpest quarterly contraction since the 2011 earthquake disaster. On an annualised basis it would mean gross domestic product (GDP) fell 7.1%. The fall was blamed in part on a consumer sales tax introduced in April, with another rise planned for 2015. The release of Monday's revised official data follows publication of initial GDP estimates that put the second quarter contraction at 1.7%, with the annualised rate at 6.8%. In the first quarter of 2014, the economy grew by 1.5%. The single biggest factor behind the contraction in the second quarter is thought to be a rise in the nation's sales tax in April, to 8% from 5%. There are now calls for Prime Minister Shinzo Abe to delay a further rise planned for next year, while the central bank has faced fresh demands to expand its stimulus programme.

• GM promises hands-free Cadillac by 2016: General Motors has announced that by 2016, some of its Cadillacs will incorporate self-driving functions. Vehicle-to-vehicle communication and a cruise function will be fitted in different top-of-the-range GM models. It will be the first time that automated technology is made available at higher speeds. The 2017 Cadillac CTS sedan, which will go on sale in 2016, will have the necessary transmitters and receivers fitted as standard. The equipment will let it know the location and speed of other vehicles, as long as they are also fitted with the technology. A different model, as yet undisclosed, will offer a "Super Cruise" function, which keeps the vehicle in the centre of the lane, maintains speeds on the motorway and controls braking. That could mean keeping to the speed limit, but would also allow the car to take control in stop-go traffic jams.

• Ryanair agrees to buy Boeing 737 planes worth $10.4bn: The Irish low cost airline, Ryanair, has agreed an order valued at $10.4bn (£6.4bn) to buy 100 planes from American aerospace company Boeing, with an option to buy a further 100 later. The order is for Boeing's more fuel efficient 737 MAX 200 aircraft. Ryanair has not disclosed what it will be paying, but airlines are rarely charged the full price on large orders. If Ryanair completes the order for all 200 aircraft the order would be worth $21bn at officially listed prices.

• Sales of Italian Apparel Show Signs of Recovery: Italian women’s clothing turnover showed signs of recovery in the first four months of 2014 buoyed by export growth within the European Union, Pitti Immagine executives said Monday at a conference in Milan. “Overall the first months of the year did not go badly,” said Pitti Imagine chief executive officer Raffaello Napoleone, speaking at a presentation of the Super accessories and apparel trade fair. “It was very positive in Europe, especially the U.K., Holland and Scandinavia.” Export turnover within the E.U. rose 4 percent to 1.2 billion euros, or $1.5 billion at current exchange rates, with sales to the U.K. and to the Netherlands growing 16.8 percent and 8 percent, respectively, according to a study by clothing and textile federation Sistema Moda Italiana (SMI) based on data collected by Italian statistical agency ISTAT. Overall turnover for Italian apparel, knits and leather garments increased 2.3 percent to 2.4 billion euros, or $3.1 billion, in January to April compared to the same period in 2013. Last year, revenues for Italian women’s wear contracted 1 percent compared to the previous year, with total 2013 sales amounting to just under 12.2 billion euros, or $15.8 billion. Export growth in the first four months of 2014 was also strong to the U.S., Hong Kong and China. The U.S., which is Italy’s fifth largest export market, saw turnover increase to $148 million, up 9.9 percent over the January to April period in 2013.

• Paco Rabanne Makes Two Appointments: Paco Rabanne has named Virginie Michel as fashion sales director and Clémentine Chevalier as fashion press relations manager. Michel previously spent 14 years at Givenchy, most recently as global head of women’s rtw sales. Chevalier joins from PR Consulting Paris, where she was senior account manager.

• Primark Sales Gain 4.5%: Improving sales and operating margin at Primark boosted full-year profits for parent Associated British Foods Plc, the U.K. sugar and ingredient company, even as sugar sales slump. Sales at Primark stores open for at least a year rose about 4.5 percent in the 12 months through Sept. 13, the London-based company that also makes Twinings Tea reported. AB Foods shares have climbed 19 percent this year, buoyed by Primark’s surging sales growth in Europe and the prospects for the clothing chain’s first stores in the U.S. next year. That has offset a slump in sugar earnings and the effects of a stronger pound. The budget fashion chain’s contribution to annual operating income will probably increase to 60 percent by the end of the next financial year from more than 40 percent now, according to J&E Davy Holdings Ltd. analyst Jack Gorman. Primark’s “operating profit margin of 13.1 percent in the first half was higher than last year, reflecting the benefit of warehouse and distribution efficiencies and lower freight rates,” the company said. “These benefits continued in the second half and, with the strong trading over the summer resulting in a low level of markdowns, we expect the margin for the full year to be slightly higher.” With world sugar prices remaining “unsustainably low,” revenue and adjusted earnings will be “substantially lower” than last year at that unit, the company said. The company reiterated a July 10 forecast that full year earnings would be ahead of last year, after previously saying the figure would be at similar levels to that of the 2013 financial year.

Tech:

• Ebooks Rekindle Love for Old Tomes: The millennial generation may not have heard of Malayalam novelist Pamman, but his novels that titillated young Malayalees in the 1970s and 80s are once again selling like hot cakes, thanks to an app that sells the ebook versions cheap. His books, including Chattakari, which went viral among adolescent readers when they first published, have sold more than 10,000 copies on the app in the past few months. Including Ekach Pyala, an acclaimed out-of-print Marathi title from the 1980s and Chanakya Niti, readers have downloaded more than 3.5 million ebooks on the app NewsHunt. That's more than enough for any publisher to sit up and take notice. “The numbers are quite staggering and I think we are just getting started with ebooks,“ said Gautam John, who is on the ad visory board of Pratham Books, a children's book publisher which focuses on digital content. With millions getting on to smartphones, books ranging from out-of-print classics to pulp fiction are making a comeback. Although ebooks don't account for a significant share (estimated to be less than 1%) of the publishing market yet, this could be the early signs of an inflection point for the $2-billion (12,000-crore) book publishing industry in the country. “It is early for ebooks in India. But in the long term, there is a lot of growth,“ said Jaya Jha, co-founder of InstaScribe, a solution that helps authors create ebooks for different platforms such as Amazon's Kindle, Kobo or Apple's iBooks. Globally, consumer books revenue grew in 2013 after many years of decline as ebook sales made up for the fall in print revenues, according to the 2013 Global Entertainment & Media Outlook published by advisory PwC. One in every four publishers surveyed by industry body FICCI said growth in e-content consumption is more than 20% yearly .For academic book publishers, “ebooks cannibalising print“ was listed as one of the top three challenges. Among publishers, those focusing fiction and children's books were the most bullish on ebooks, the survey said. It isn't easy to reach these new set of readers though. “The Indian ebook scene hasn't picked up as fast as it should (have),“ said author Rasana Atreya. Nearly 1,000 copies of her ebook `Tell a Thousand Lies' have been selling on Amazon every month for the past two-and-a-half years. Most of her buyers are from the US or overseas markets.

• Indian e-com Retailers Gear up for the Diwali Fireworks: Online retailers, from biggies such as Flipkart and Amazon to niche players like FabFurnish and Bluestone, have lined up special catalogues, exclusive products, offers, contests and discounts to ensure a cracker of a Diwali season, with an eye on first-time shoppers. Fashion portal Myntra will offer more than 5,000 new products across top brands like FCUK, UCB, Elle, SuperDry, Biba, FabIndia and Antony Moratto for the first time online, while online marketplace Snapdeal.com is working with brands across categories like fashion, electronics and home products to put together a special Diwali catalogue that will be out in the next few days. Market leader Flipkart will put up exclusive products and offer heavy discounts while rival Amazon.in may introduce drone delivery in the country, as Diwali season is when most number of Indians try out online shopping for the first time. The four to five weeks until Diwali brings the largest sales spike for online sites. “For online retailers, you can say that the financial cycle is Diwali to Diwali,” said Saurabh Srivastava, director at advisory firm PricewaterhouseCoopers (PwC) India. “Every project cycle and launch that an etailer works on during the year is geared only towards Diwali.” Srivastava said sales jump during this season can be double the regular daily order size. Sandeep Komaravelly, senior vice president of marketing at Snapdeal, said that unlike offline, Diwali momentum does not taper off in online retail after the festival. “New customers who have tried online shopping for the first time during the festival season continue to do so even afterwards,” he said. No wonder then that portals big and small are going all out to woo new customers, backed by large marketing campaigns. “For large e-tailers the marketing budgets will be as high as 10% of overall costs,” said PwC’s Srivastava. Even niche jewellery site Bluestone has set aside 6 crore for advertisement and marketing for the festive season. It will launch a consultancy feature for Diwali that will suggest jewellery items based on the user’s face, hair style and likes. The typical Diwali shopping season starts from third week of September and goes on until Bhai Dooj, two days after Diwali.

• Snapdeal Promoter to Set up Tech Incubator: Jasper Infotech, which owns and operates the country’s largest online marketplace Snapdeal.com, is in the process of setting up its own mobile-focused technology incubator as it looks to offer a greater array of services in its bid to grab the lead in India’s hyper-competitive e-commerce market. The incubator, which is expected to be up and running in the current financial year, will look to foster early-stage ventures operating in the mobile technology space, according to a Snapdeal senior executive. “We are in the process of structuring the incubator, and plans are, more or less, in place. We will start looking for companies once we have an interface for it, which will be separate from Snapdeal,” said Abhishek Kumar, head, corporate development, at Snapdeal. According to Kumar, who joined the eBaybacked e-commerce company in July, and is expected to lead its M&A initiatives, Snapdeal will incubate about eight ventures for a period of two months per batch, and will set up a separate team to run the initiative. “We are now almost a mobile-first country, and going forward, will be a mobile-only economy. An increasing amount of content and transactions are happening on hand-held devices… That’s the eco-system we are targeting,” he said. Snapdeal will also provide seed funding to its incubated companies, while taking an equity stake in the ventures. However, Kumar refused to disclose further details, citing the early nature of developments. “There will be seed funding that will take care of their expenses, apart from what we will be providing. We will be disclosing that very soon,“ he said. Snapdeal may also consider partnering other incubators or mobile companies for this initiative. The development comes at a time when India's consumer internet majors are increasingly looking to tap the country's 900odd million mobile subscriber base, one of the largest in the world, as they look to break away from the pack and emerge as the leader of one of the fastest growing ecommerce markets globally. Both Snapdeal and Flipkart, India's largest e-commerce company, see more than 50% of their overall sales coming through mobile, a number that is expected to increase substantially going forward. The incubator could also serve as a feeder for Snapdeal as it looks to make more acquisitions in the mobile space. The company, which has raised more than $350 million in funding, across rounds, has been one of the most active players in the M&A stakes among e-commerce companies in India.

• Micromax to Sell Its New Sub Rs 15K Smartphone Only Through Snapdeal: The competition in the sub-15,000 smartphone segment is intensifying, with domestic handset maker Micromax launching the Canvas Nitro A310 model that will compete with the offerings of the likes of Chinese firm Xiaomi and the US-based Motorola. The handset will Priced at 12,990 & will be exclusively available on the ecommerce website Snapdeal, a departure from the Gurgaon-based company's usual retail strategy that relies heavily on its distribution and retail networks. The handset will not be sold through the flash sale route, Micromax CEO Vineet Taneja told ET. “We don't wish to engage in any gimmicks,“ he said, taking digs at his rivals, who had successfully sold thousands of smartphones within seconds of flash sales. Both Motorola and Xiaomi had partnered with Flipkart for handset sales. Kunal Bahl, co-founder and CEO of Snapdeal.com said, “The new product boasts superior technology and we are certain that this will be well-received by our 25 million members.“ The Canvas Nitro A310 will be pitted mainly against Motorola's Moto G (2nd generation) model since Xiaomi has recently suspended the sale of its Mi 3 handsets in the country. Taneja said that the handset's hardware specifications are far superior to Xiaomi's smartphone.

• Twitter Tests ‘Buy’ Button: Twitter Inc is testing a “buy“ button in some tweets that allows a mobile user to buy directly from a tweet. Twitter's foray into the ecommerce market is its latest step to mitigate a slowdown in user growth. A small percentage of US users will be able to see the “buy“ button from Monday, Twitter wrote in a blog post. “Users will get access to offers and merchandise they can't get anywhere else and can act on them right in the Twitter apps for Android and iOS,“ the company said. Facebook Inc has also been testing a “buy“ button on its website that will let consumers purchase products that are advertised on its network. Twitter said an entire purchase could be completed in just a few taps of the smartphone screen. Tapping on the “buy“ button embedded in a tweet, the user will be prompted to enter shipping and payment information, which will be sent to the merchant for delivery. The microblogging service company said it has partnered with social media shopping platforms such as Fancy and Musictoday for the initial test. Twitter said it would add artists, brands and nonprofit organizations, such as Burberry, Eminem and Home Depot Inc, to the test.

• Top Indian designers jump online to fashion new growth story:Looking for a Rohit Bal ensemble? Or a Raghavendra Rathore shirt? You could ditch the idea of walking into the designer's labelled store and browse online instead. Chances are, you would be able to get yourself a designer piece for as little as a top-end high street brand. Thanks to the aggressive marketing efforts of online portals like Jabong, Myntra and Flipkart, pret-collections of some of India's top fashion designers are now available at anywhere between Rs 3500-15,000. Such is the demand that designers are now coming up with special collections for online retail to tap into the "almost vertical growth" in this segment. India's online designer dreams now mean big business for the fashion frat. "The future of fashion, just like anywhere else in the world, lies online and India is fast catching up with the rest of the world in terms of business trends," said fashion designer Rohit Bal, whose pret or affordable range is available online in portals like Jabong. "Already, the volumes are fairly high because the reach is much wider." Much of that volume is driven by staggering discounts, which make even the pret lines as competitively priced as higher-end high street brands like Dorothy Perkins. It's possible to pick up single pieces from top-end designers - like a statement shirt or a top for instance - online for as little as Rs 2500. More elaborate ensembles, like a complete anarkali set, can cost more - between Rs 8000 and Rs 15,000. Those are bargain basement prices, given that a Sabyasachi Mukherjee sari can cost anywhere between Rs 40,000 to over a lakh. Designers say the online affordability is a win-win because the discounts are part of the portal's marketing strategy rather than the designer brand's retail model. "The discounts on offer - thanks to the portal because that's how their business models work and we don't mind because our prices have already been met with," said Bal. He added that "the merchandise on portals have to be carefully priced and if the right product and price points are met, the response can be great".

• Online sales of costume jewellery in India set to take off; to grow to Rs 4,200 crore within a year:The domestic online costume jewellery market, which is estimated to grow phenomenally within a year to Rs 4,200 crore from less than Rs 200 crore at present, has a new entrant. Rebekkah Kumar, an MIT graduate and a former Microsoft techie, is eyeing the middle rung of the market with her private label Fourseven and has tied up with Flipkart and Amazon to sell her products, besides relying on her own e-commerce portal Fourseven.in. "While most of the players are targeting either the high-end or low-end consumers, we are aiming at the mid-market segment. Prices of our products vary between Rs 500 and Rs 20,000," Kumar told ET. Kumar, 48, who was born and brought up in Louisville, Kentucky and moved with her family to India in 2006, added, "My years at Microsoft in Redmond helped me learn the basics of product and project management as well marketing, PR and branding. And I am applying my learnings at Microsoft to grow my business." She started Fourseven, her first business venture, in April this year with an initial investment of Rs 50 lakh. "We aim to achieve a turnover of Rs 600 crore within next five-seven years," she said. "Our brand name is an ode to India and her strength. 1947 is the year when India as a country stood up for what she wanted and claimed her independence. Our jewellery is a way for women to express that very same ideal to be free, to be expressive and proud of who they are, and ultimately to be confident and happy," she said. Fourseven has entered the market at a time when gold is losing its sheen among the Indian consumers, particularly the young generation. 

• Ecom Express raises Rs75.5 crore from PE firm: Ecom Express Pvt. Ltd, an e-commerce logistics firm started by former executives of courier company Blue Dart, has raised Rs.75.5 crore from private equity firm Peepul Capital after more than six months of negotiations with various investors. Peepul Capital now owns a majority stake in Ecom Express and a deal is likely to be announced this week, two people familiar with the matter said. Ecom Express may receive the money in tranches, the people said on condition of anonymity. Documents filed with the registrar of companies by Ecom Express confirmed that Chennai-based Peepul Capital invested Rs.75.5 crore. Ecom Express declined to comment. Chennai-based Peepul, which has investments in companies including Univercell, MedPlus and Komli, did not immediately respond to an email seeking comment. Started in January 2013, Ecom Express delivers products to customers in more than 90 towns. It has over 150 distribution centres across the country and employs roughly 3,000 employees. The company is led by T.A. Krishnan, who helped start the e-commerce business at Blue Dart, one of India’s largest logistics firms. Ecom Express and rival e-commerce logistics firm Delhivery help sites such as Flipkart, Snapdeal and Amazon deliver products to customers, particularly in far-flung towns that are too expensive for e-commerce firms to reach.

• Indian Army Using Social Media to Help Jammu-Kashmir Flood Victims: The Army is using social media apps such as Twitter, Facebook and WhatsApp to save the lives of people stranded in the flood-affected areas of Jammu and Kashmir. The Army headquarters is forwarding all the distress messages received by it on its website, facebook page and twitter handle to a WhatsApp group including senior commanders in the Northern Command from where troops on ground are being directed to help the people in stress, Army's Additional Director General (Public Information) Maj Gen Shaukeen Chauhan said. So far, distress messages from all across the country have been received with anxious people seeking to know about their missing relatives and the Army has tried to reach to them, he said. The WhatsApp group includes senior commanders of the Srinagar-based 15 Corps and Nagrota-based 16 Corps along with the units in field areas, Army officials said. One of the messages received by the Army was for locating and helping a local MLA Rafiq Ahmed, they said.  The Army officers involved in the process are responsible for handling the Indian Army website, its twitter handle and the Facebook page. Meanwhile, rescuers of the NDRF have received over 450 distress messages through Whatsapp and SMS from people stranded in the submerged areas of Jammu and Kashmir in the last two days.

• Citi Eyes $10 Billion Smartwatch Market: The market for smartwatches could grow to $10 billion by 2018 from an estimated $1.4 billion to $1.8 billion in 2014, according to a new survey by Citi Research, which found that close to one in 10 respondents planned to buy a smartwatch in the next 12 months. The report, published amid speculation that Apple could make an announcement this week regarding the launch of its eagerly awaited smartwatch, said the broader wearables market — which also includes sport fitness bands, smart accessories like jewelry and handbags and smart apparel — could be worth $30 billion by 2018. Citi said that of the projected $10 billion smartwatch market, it expects $5 billion to come at the expense of traditional watch wearers and $5 billion from technology trendsetters who do not wear a timepiece — potentially worrying news for the Swiss watch industry, which views the spread of smartwatches with some trepidation. Nonetheless, Citi’s European luxury analyst Thomas Chauvet and retailing/specialty and department stores analyst Oliver Chen forecast the introduction of smartwatches will not materially impact existing watch industry sales. “Watch manufacturers with lower-priced watches could be most exposed but this risk can be offset by the implementation of technology in devices,” the report noted. Swatch Group recently revealed plans to introduce electronic functions to measure personal fitness into its Swatch Touch line of plastic watches starting in 2015.