Daily News Digest- 11th Sept'14

Thought of the Day:

Today in History:

Following made the Headlines:

India:

• Domestic Airlines Still Flying High on Low Fares: Indian carriers are selling tickets cheap even with the start of the festive season, the only time they can increase fares, an indication that airline companies may find it tough to make up for the throwaway fares they have been offering all year round. “It is true that airlines are taking longer this year to hike fares, though that will happen in a few weeks,“ said Rajji Rai, chairman of Swift Group, a travel com pany . “To that extent, demand is definitely lower,“ he added. The average 60-day fare in sectors such as Delhi-Mumbai, Mumbai-Bangalore and Mumbai-Goa is about 3,200, about 20% lower than last year, according to Samyukth Sridharan, COO, Cleartrip. On popular international sectors such as Delhi-Dubai and Mumbai-Hong Kong, the two-month advance fare is 10,500, about 10% lower than the same period last year, said Sridharan. The primary reason for this is oversupply, said experts. “The gap between de mand and supply has increased more than ever. There are some airlines such as Jet which are curtailing loss-making flights but most others are still adding capacity,“ said a senior airline executive. This will worsen as AirAsia India, which started flying earlier this year, expands its network and other airlines such as the Tata Sons-Singapore Airlines venture Vistara begin operations, the executive said. There are other reasons, too. Airline executives say the price war that should have stopped by September is still on. “SpiceJet still has offers into September, which IndiGo and GoAir follow, and so we have to emulate as well,“ said a Jet Airways executive who didn't want to be named. Customers have also planned their trips and holidays over the year and no longer wait for the festive season to travel. “Both SpiceJet and IndiGo have announced fares throughout the year. The ones they are announcing now encompass entire 2015. The customer has many more options,“ said Rai. While the delay in increasing fares may affect the margins of airlines, low fares have spurred bookings.

• Car Sales Grow for Fourth Straight Month: Car sales grew more than 15% in August, the fastest pace so far this fiscal year, helped by big discounts and new launches and also clearly signaling improving consumer sentiment as the festival season begins. The local auto market has not exactly come to its real potential, but data released on Wednesday by the Society of Indian Automobile Manufacturers reflect positive sales across most segments of vehicles. The numbers, especially an expansion in commercial-vehicle sales, also strengthen expectation of a turnaround in the economy after two years of sub-5% growth. In the commercial-vehicle segment, sales have increased after nearly two-and-half years, while in cars, August was the fourth straight month when the numbers have risen. According to Siam data, the automotive industry posted total local sales of 16.6 million vehicles last month, the highest for the month of August ever. With an array of recent launches in the passenger-vehicle segment, and more in the pipeline during the ongoing festival season, demand is expected to improve further in the usually buoyant fiscal second half starting next month. “We have witnessed the fourth successive monthly gain (in car sales) that is creating an impression that customers are returning to the market and sales are likely to stablise. We are not issuing any forecast, but the car segment should end the fiscal year with high single-digit growth,“ Siam director-general Vishnu Mathur said. “Other (vehicle) categories are also reflecting the change in market sentiments with positive growth last month.“ The major performers in August were larger carmakers such as Maruti Suzuki, Hyundai Motor and Honda Cars India, which together accounted for as much as 80% of sales reported by manufacturers in the passenger-vehicle segment. Maruti posted growth of more than 29% to sell 98,304 units in the domestic market, ahead of Hyundai that sold 19% more vehicles then the previous month at 33,750 units. At Honda, car sales rose as much as 88%. New models launched in recent weeks, such as the Honda Mobilio and Hyundai Elite i20, helped sales last month. Maruti's new Ciaz sedan and Tata Motors' Bolt hatchback are likely to bring more customers to the dealerships in the coming weeks. A sweet spot for the industry was a remarkable recovery in heavy commercial vehicle sales, with a 9.61% expansion last month. Considered a barometer of economic growth, commercial-vehicle sales were last positive in February 2011, when the domestic market grew 5.53% year-on-year. “We are expecting a slow recovery in the commercial-vehicles segment as some ac tivity has picked up in the mining and infrastructure sectors that has propelled demand for goods vehicles,“ Mathur said.

• Reliance to Open New Value Retail Stores: Five years after halting expansion in the neighbourhood supermarket space, Mukesh Ambani led Reliance Retail (RRL), India's largest retailer, is once again opening new value retail stores across the country. This month alone RRL will launch five supermarket stores in Bangalore and 15 in other parts of the country as part of its cluster strategy of increasing density of stores in one state completely. The roll-out of more stores across markets will intensify over the next few months as the retailer regains confidence in getting its strategy and merchandising. Value retailing accounts for 55% of RRL's total turnover of 14,500 crore. Rivals Future Retail, Spencer's Retail and Aditya Birla Retail are trying to cut losses by closing shops while cash-and-carry players such as Walmart and Metro have frozen expansion plans. “The next phase of RRL's growth strategy is more mature. Mistakes have been made and lessons learnt. We are confident that the (new) investment made will be more sustainable,“ Damodar Mall, CEO of Reliance Value Retail, said. Top officials said the neighbourhood formats are getting more profitable city by city. RRL recorded a net 182 crore in FY14, its first profit of ` profits in its eight-year existence. In the neighbourhood space, RRL's formats include Reliance Fresh, Reliance Super and Reliance Mart operating in the 3,000 sq ft-20,000 sq ft space. Currently, there are 602 Reliance Retail value formats across the country. The value formats will have a sizeable chunk of dairy, fresh fruits and vegetables, staples and home and personal care products to ensure higher stock turns and improved sales and returns per sq feet, officials said. Food and grocery is the largest category within the $490-billion Indian retail market with 60% share followed by the apparel and mobile segment. Harminder Sahni, founder and MD of Wazir Advisors, says RRL's expansion stems from its confidence in its supply chain, sourcing and procurement systems. “Reliance knows that the real money is made at the back-end. Most of the other retailers have been merely trading operations in the neighbourhood space. They have been struggling too much with the front-end to worry about the back-end,“ he said.

• Liquor Ban `lllogical': SC Tells Kerala Not to Shut Bars: The Supreme Court on Wednesday prima facie dubbed Kerala's new liquor prohibition policy as “illogical“ and asked the state not to shut down bars till the court heard a batch of appeals against the move. The policy, which intends to shut down all bars except those in five-star hotels immediately as a first step towards total prohibition over 10 years, was to come into effect from Thursday. Several of the state's bar and hotel owners have challenged the policy before the Supreme Court. In his preliminary remarks on the state's policy, Justice Anil R Dave on Wednesday said, “I am a teetotaller, but we don't see any logic behind it.“ The bench, which also has Justice Uday Umesh Lalit, directed the state not to enforce the policy till it heard the appeals on Thursday. Bar owners had earlier approached the Kerala High Court, which admitted their pleas on September 3, but refused to give them any interim relief in the form of a stay. Senior advocate Fali Nariman, supporting their cause, said the policy -which intends to phase out all liquor licences and impose total prohibition over 10 years -had no rational nexus to the objectives it sought to achieve. It exempts 5-star hotels and clubs and government retail outlets from the policy, while hotels with 4-star or less ratings operating bars have been asked to shut down, he said. “So now somebody staying in a 4-star hotel has to go to a roadside toddy shop to drink liquor, whereas somebody sitting in a five-star will not have any problem.“ Senior advocate CA Sundaram expressed fears that the policy, if effected, would lead to large-scale retrenchments of employees, as it will affect 312 bar restaurants whose licences were issued or renewed from April 1, 2014 Rs 25 lakh each for a year. The batch of petitions, filed through counsels Ramesh Babu, Romy Chacko and Radha Shyam Jena, argued that the state policy was discriminatory and in violation of the constitutionally enshrined principle of equality . They also argued that the state should first shut down its own liquor shops before asking private citizens to do so.

• TVS Motor Scions Take Centre Stage: TVS Motor's scions have been given meatier roles at the Chennai-based automobile company just days after the marriage of Sudarshan Venu, the son of the company's 62year-old chairman and managing director Venu Srinivasan. Sudarshan, 25, has been appointed as the joint managing director and his sister Lakshmi, 30, as additional nonexecutive director, as one of India's largest motorcycle manufacturers implements its succession plan. In a statement on Wednesday, the company cited its “steadily increasing market share“ for the appointment of Sudarshan, who it said has “considerably increased his engagement in and contribution to the progress of the firm“. Sudarshan, who is believed to be passionate about cars and bikes, joined the board of Sundaram Clayton, a maker of aluminium die-casting and also an investment arm inside the TVS group, in September 2011. His sister preceded him to the Sundaram Clayton post in March 2010. Their mother Mallika Srinivasan heads Tractors and Farm Equipment, the flagship of the Amalgamations group. Lakshmi is married to Rohan, son of Infosys founder NR Narayana Murthy. Sudarshan completed his graduation in 2010 at the Jerome Fisher Program in Management and Technology at the University of Pennsylvania. He obtained two degrees in bachelor of science -one in engineering and the other in economics. He completed a masters' degree in international technology management at the Warwick Manufacturing Group, an academic department at the University of Warwick in the UK. It was during this time he underwent training at the die casting division of Sundaram Clayton and in TVS Motor. He became a vice-president of TVS Motor a few months after becoming an additional director at Sundaram Clayton and was appointed to its board in February last year. “The last two years have been challenging and Sudarshan has helped the company sail safe,“ a senior TVS executive said. “TVS Motor exports to 53 countries and of these, 14 countries were added after Sudarshan joined.

• GST Implementation Likely by Mid-2015: The government is eyeing a mid-2015 rollout of its most comprehensive reform of indirect taxes aimed at replacing a plethora of state and central levies with a single goods and services tax, or GST. “We are working on tying up all the loose ends...The new government has identified it as a key priority,“ a senior finance ministry official said, adding that efforts were on for possible implementation by mid-2015. Revenue secretary Shaktikanta Das recently reviewed the performance of the GST Network the IT backbone of the new tax to ensure that the infrastructural framework does not pose any challenge when GST is launched. Das also met senior state government officials to iron out differences and to finalise the constitutional amendment bill that the Centre hopes to introduce in the winter session of Parliament. GST, which will replace service tax, excise duty, state value-added tax and other local levies, was to be rolled out from April 2010. But opposition from the states over compensation for revenue losses and also elements of the constitutional amendments prevented it from making much headway. GST will help create a pan-Indian market for movement of goods and delivery of services and in the process add about 1-2% to GDP. State finance ministers are expected to thrash out the contours of the GST structure at a meeting this week. The finance ministry is keen on having a neat structure for the new tax, without wide distortions.

• Tata-SIA may miss Diwali launch target: Tata-Singapore Air lines' JV full service carrier Vistara is likely to miss its target of pre-Diwali (October 23) launch. Top aviation authorities say the JV has to complete various requirements and the process may take another two to three months. The JV partners were eying a mid-October launch to catch the festive and winter travel rush. “Their first aircraft, an Airbus A-320, is yet to arrive in India for doing the route-proving flights. It will first go to Singapore for painting of livery (airline colors, logo). Vistara is yet to finalize its manuals and get the clearance for the same from directorate general of civil aviation,“ said a senior official.

International:

• Tesco creates 50 shades of Grey lingerie for men & women: The UK-based multinational grocery and general merchandise retailer Tesco has come up with a new exciting range of men and women innerwear and sleepwear, inspired from the best selling erotic novel 'Fifty Shades of Grey'. Created under the guidance of the books author EL James, the elegant yet bold collection includes around 35 sexy pieces for females and some 8 clothing items for men. Made using refined yards of soft cotton, luxe silk, sheer tulle, retro satin and delicate lace, the ensembles have been emblazoned by the novels signature cheeky slogans including Charlie Tango, Laters Baby and Inner Goddess. Meant for women of all sizes, the boudoir-inspired line features matching shirt and trouser sets, seductive black kimonos, push up baby doll dresses, and long and short pyjama combos. Available in bra sizes from 32B to 40G and briefs ranging from sizes 8 to 22, the pieces include black and navy hued balconette and push up bras adorned with interesting trims and graphic floral prints as well as matching Brazilian thongs, knickers and suspenders. The standout items include the tiny bow attached vintage style pleat detailed Anastasia Key Charm bra in black and ivory colours, a fully covered brief with scalloped lace trims and the traditionally constructed Elena Key Charm strapped bra. The menswear entry includes slogan vests and comfy pyjama and shirt sets. Before Tesco, the Aussie department chain Target Australia and the British lingerie label Blue Bella have also created their own versions of Fifty Shades inspired innerwear collections.

• Alibaba's record IPO covered entire deal in 2 days: Sources: Alibaba Group Holding Ltd has received enough orders for its record-breaking initial public offering to cover the entire deal within just two days of its launch, people familiar with the IPO process said on Wednesday. There was no indication as to where most of that demand was in the $60-$66 per share indicative range for the IPO, said the people, who couldn't be named because details of the offering demand aren't yet public. Alibaba, a Chinese e-commerce titan, didn't immediately return a request by Reuters for comment. At the top end of expectations, the Alibaba IPO would raise $21.1 billion, topping Facebook Inc's $16 billion listing in 2012 as the largest-ever technology IPO. Alibaba, could set a new record for the world's biggest IPO if underwriters exercise an option to sell additional shares to meet demand - putting it as high as $24.3 billion, and overtaking Agricultural Bank of China Ltd's $22.1 billion listing in 2010.

• Man United predicts fall in profit after pitch woes: Manchester United is set to suffer financially as a result of a poor performance on the pitch. The football club predicts that profits and revenues will fall in 2015 after failing to qualify for the Champions League for the first time in 20 years. The prediction comes as it reports a plunge in profits, despite record revenues for 2014. Net income fell 84% for the year to 30 June to £23.8m, down from £146m a year ago. Manchester United said that was due in part to last year's profit being boosted by a one-off tax credit, without which it would have made a loss. The club, majority-owned by the American Glazer family, said revenue increased 19% to £433.2m in the 2013-14 financial year, thanks to improved TV and sponsorship deals. However, that is now predicted to fall to between £385m and £395m. Similarly, underlying profits were £130.1m for the year to 30 June and that is now forecast to fall to between £90m and £95m. The results also showed that David Moyes and his backroom staff received a total of £5.2m in compensation following the former Manchester United manager's sacking in April after less than a year in the job.

• Santander appoints Ana Botin as chairwoman: Ana Botin has been appointed the new chairwoman of the Spanish banking giant Santander, following the death of her father, Emilio Botin. Mr Botin died of a heart attack on Tuesday night. The appointments and remuneration committee and the board of directors met on Wednesday to appoint a successor. Ms Botin, a scion of a banking dynasty, was previously the chief executive of Santander UK. "The appointments and remuneration committee considered Ana Botin is the most appropriate person, given her personal and professional qualities, experience, track record in the group and her unanimous recognition both in Spain and internationally," Santander said. Ms Botin is the fourth generation of the family to take charge of the bank. Her father, grandfather, and great-grandfather, who were all named Emilio, also served as chairmen of Santander. She has been on the board of Santander since 1989.

• Fiat shares rise after Ferrari boss quits: Shares in Italian carmaker Fiat have risen after Luca Cordero di Montezemolo resigned as the chairman of its Ferrari division. He will be replaced after 23 years by Fiat chief executive Sergio Marchionne. The stock gained 2.7% to 7.91 euros in afternoon trading in Milan following the announcement. Mr Montezemolo's departure had been expected after Mr Marchionne said that Ferrari's poor Formula 1 performance this season was "unacceptable". The Fiat boss also wanted Ferrari to be more closely integrated into the company and increase annual sales to about 10,000 cars. However, Mr Montezemolo, 67, who began his career as an assistant to founder Enzo Ferrari, wanted to maintain the division's independence and exclusivity by limiting sales to about 7,000 a year. He said on Wednesday that Ferrari was "the most wonderful company in the world".

• Sears Receives Credit Rating Downgrade: Already a risky proposition, an investment in Sears Holdings Corp.’s bonds just got riskier. Credit-ratings agency Fitch Ratings has downgraded the long-term issuer default ratings on Sears to “CC” from “CCC,” pushing it further into junk bond status. More importantly, Fitch said it “expects that the risk of restructuring is high over the next 24 months.” The ratings agency cited the “magnitude” of Sears’ decline in profitability and lack of a clear turnaround plan as reasons for the downgrade. Of specific concern is Sears’ cash burn, which Fitch said is likely to be around $2 billion or higher annually. Fitch also said that funding options may not be enough to support operations beyond 2016. Issuing debt isn’t a certainty as that’s subject to borrowing base requirements, which have been impacted by the inventory reductions over the past three years. And any sale of leases could also potentially include landlords assuming some of the firm’s more productive sites. Fitch said even if Sears is able to execute on a number of those options, including asset sales, the funds generated would take the retailer only through 2016, given the high rate of cash burn.  A spokesman for Sears said, “We don’t agree with their action given our demonstrated history of honoring our financial commitments.…We have proven that we have an asset-rich portfolio that provides us with what we believe to be substantial financial flexibility.”

• Agents Seize $65M in Cash in Fashion Drug Raid: Federal agents seized more than $65 million in cash and made multiple arrests during a Wednesday raid of fashion companies allegedly linked to a drug cartel money laundering ring in Los Angeles’ Fashion District. More than 1,000 agents scoured over 40 locations — including 19 storefronts, six warehouses and a mansion in Bel-Air — as part of three separate investigations run by Homeland Security’s U.S. Immigration and Customs Enforcement, the Federal Bureau of Investigation, Internal Revenue Service and Drug Enforcement Administration. The nine people who were arrested worked for Yili Underwear, Gayima Underwear, Pacific Eurotex and QT Fashion, which operates the brands QT Maternity and Andres Fashion. Maria Ferre S.A. de C.V., a business based in Sinaloa, Mexico, is also allegedly involved in the money laundering. The QT Fashion employees who were arrested were Andrew Jong Hack Park, Sang Jun Park and Jose Isabel Gomez Arreoloa. From Yili Underwear and Gayima Underwear, Xilin Chen and Chuang Feng Chen were arrested. At Pacific Eurotex, chief executive officer Morad Neman, chief financial officer Hersel Neman, Mehran Khalili and Alma Villalobos were arrested and indicted.  Aixia Chen, Xilin Chen’s daughter, is a fugitive currently being sought by authorities. The agencies are also searching for Luis Ignacio Orozco Munoz, Armando Arturo Chavez Gamboa and Daisy Corrales Estrada, who are all linked to Maria Ferre in Mexico. For Homeland Security’s probe, which started 16 months ago under the code name “Operation Fashion Police,” the organization issued warrants on more than 30 bank accounts containing about $19 million in deposits allegedly derived from trade-based money laundering. During Wednesday’s search, its agents seized what it conservatively estimated to be another $49 million in cash. Millions of dollars were crammed into filing boxes and inside duffle bags. “We’re in the process of seizing contents of several warehouses,” said Virginia Kice, a spokeswoman for U.S. Immigration and Customs Enforcement. “It is still very much ongoing.”

• Uniqlo Revives +J Brand: Jil Sander may have retired from the fashion game but the German minimalist designer's creations are about to hit Uniqlo shelves once again. Uniqlo said Wednesday it will launch a special collection of "the greatest designs" from the +J collection Sander crafted for the retailer over five seasons from fall-winter 2009. Sander's name was not mentioned anywhere in the brand's press release and a Uniqlo spokesman confirmed that Sander is not involved in the revival. The Japanese brand, part of Fast Retailing Co. Ltd., said it will reissue "carefully selected garments" such as button-down shirts, down jackets and wool sweaters. The re-launch will consist of 42 products, 27 for men and 15 for women. The collection will launch in 15 of Uniqlo's 16 geographic markets including Japan, the United States and China, the spokesman said. In other words, +J products will hit every country where Uniqlo is present except for Russia. The rollout will start this month in key flagships and major stores. The company spokesman said Uniqlo has not yet decided whether this project will continue beyond the fall-winter 2014 season. "Loved for its timeless yet forward-looking style and affordable quality...+J grew to one of the most successful fashion collaborations of all time-elevating basic garments for functional, minimalist elegance, to suit any lifestyle," Uniqlo said. Uniqlo and Sander joined forces in 2009 with much fanfare. She designed the collection, with an emphasis on wardrobe staples and outerwear, out of her atelier in Hamburg. The two parties ended their collaboration in 2011.

Tech:

• Grey Market says it in B&W: It's Six Figures for 6, 6+: A day after Tim Cook took the wrappings off iPhone 6 and 6 Plus, the Indian grey market went a little crazy. On eBay India, a sealed and factory unlocked 16GB iPhone 6 was going for Rs 1 lakh while a 16 GB iPhone 6 Plus was being offered at Rs 1.1 lakh. The devices will be shipped to India from September 21. Another seller on eBay India listed a network-locked 16GB iPhone 6, which will be unlocked be Rs 75,000. The phone will be launched in the US and elsewhere on September 19 and in India on October 17. One of the sellers on eBay, who plans to source the handsets from Australia and Singapore, said he has already received more than 20 bookings with the full amount paid by Wednesday evening. His listing had got more than 600 hits, he said. Australia and Singapore are part of the global launch. Apple has enlarged the screen, made the edges more rounded and slimmed down the iPhone as it seeks to fight for higher end of the smartphone market with Samsung, with which it has tangled in court over alleged patent infringements. At the same time, in markets such as India, buyers are moving toward cheaper phones. These include the Motorola Moto E and the Xiaomi Mi3. But iPhone mania was unstoppable on the day after the launch with Apple fanboys determined to get their hands on the new devices. In the grey markets of New Delhi and Kolkata, the 16GB version of the iPhone 6 was being quoted at Rs 55,000-60,000 with a premium of Rs 5,000-10,000 on the larger screen variant. In Mumbai's Crawford Market and the Heera Panna shopping complex, the 16GB iPhone 6 was being quoted at around Rs 80,000-85,000 with dealers promising delivery in September itself. The new iPhones will start selling on the global launch day in 10 markets -including the US, Australia, Japan, the UK, Hong Kong and Singapore -with bookings kicking off on September 12. The Apple India website said the phones will be officially launched in the country on October 17. While official India prices haven't been made public, it's estimated that the iPhone 6 16GB model will be priced at Rs 48,000-50,000 and the iPhone 6 Plus 16GB model at Rs 58,000-60,000 by three of Apple's top trade partners. The 64 GB and 128 GB models will cost appropriately more. A grey market dealer in Kolkata's AC market said customers were ready to pay the amount in full to book the model.

• 21-year-old Indian Takes on HP for Bundled OS: A 21-year-old free-software enthusiast in Mumbai is taking on Hewlett-Packard, the multinational computer giant. Ishan Ketan Masdekar has sent a legal notice to HP for “compelling“ him to buy a product that he says doesn't meet his requirements. The product in this case is Microsoft Windows 8 operating system, which came bundled with the HP Notebook he bought in June this year. Masdekar's notice asks for a refund of his cost on the OS but, more importantly, he wants a change in HP's software terms policy, which the notice says is anti-competitive and violates India's Competition Act 2002. The programmer at Digital Freedom Foundation is perhaps the first in India to send a notice to an original equipment manufacturer for bundling software with hardware, but he is part of a global trend. Free-software enthusiasts across the world run campaigns like `No More Racketware' and fight what they call “Windows Tax“. In 2011, an Italian consumer watchdog took Microsoft to court over software bundling after it won a pilot case against HP in 2007 and, in 2012, a French buyer won a case against Lenovo. Microsoft has been fighting bundling accusations since the browser wars of the 1990s between Internet Explorer and Netscape.Masdekar himself has sent the notice not so much for the refund, but to make buyers aware that they have a choice. “I don't care much for the refund,“ he said, “which would come to around ` . 3,000. I want people to know that they don't have to take whatever software is given to them.“ Responding to ET's request for comment, HP said it “has an extensive product portfolio which provides consumers with variety, including units bundled with a built-in OS and those without“. Proprietary software makers and OEMs have their defence against the free-software activists. They say `naked' PCs ¬ machines that don't come with pre-installed OS ¬ encourage piracy. Without the pre-installed OS, a user might be easily persuaded to buy a cheaper copy. Also a large portion of Indian consumers may not be looking for a choice, says Vishal Tripathi, principal research analyst at Gartner. “Many buy PCs for their convenience and not to begin a learning curve (which an alternative OS would require),“ he says. Therefore, a large number may prefer machines with pre-installed OS. Windows' licence agreement leaves the resolution of conflicts such as Masdekar's to the laptop manufacturer's policy, in this case HP's. When Masdekar contacted HP's Customer Relations, a manager wrote back saying that “the HP OS Image (HP Recovery) is a bundled software meant for HP systems only“ and a refund for the Windows 8 OS alone would not be possible. Therefore the user, Masdekar, is now left with two options use a software he does not want or return a hardware that he does. This does not mean that consumers have a choice of picking every model with or without OS, says Pravin A, founder of Pirate Movement of India. “Entry level, low-powered PCs usually come without an OS pre-installed.“

• Android One is the One for the Hindi Heartland: When Google launches its low-cost Android One devices next Monday, Indian users will be able to give voice commands, type messages and use almost all major mobile applications in Hindi. This is because the California, US-based internet giant is hoping that the devices, which have been tailor-made for emerging markets, will help it capture the non-English speaking user base in the country. Over 40% of the population in India lists Hindi as its first language. Android One will come bundled with local language support and users will not have to download any external application to access their smartphone in Hindi, a person with knowledge of the development told ET. “Google has been constantly working on developing more salience around Indic computing, providing regional language support to users for its various products and services,“ a Google spokesman said in an email. Internet users in India could increase by nearly a fourth if local language content is provided, according to a 2014 report from Internet and Mobile Association of India and IMRB International. In rural India, 43% said they would adopt the Internet if they had content in their local language. Local language consumption growth is estimated to be more than four times that of English, according to Google. The company is trying to take a lead over its competitors by taking advantage of this trend. Google is working to create more Hindi content online through local partnerships and is expected to launch more products keeping the Indic audience in mind. “So far different vendors were offering different ingredients of the Indian language meal and users were expected to i cook it themselves,“ said Venkatesh Hariharan, founder of Alchemy Business Solutions, a company which works on Indic computing and technology for development. “If Google offers a comprehensive experience that works out-of-the-box in Indian languages that could attract millions of new users.“ Indic computing has so far been limited to enthusiasts who had to download a keyboard from one site, a local language dictionary from another and fonts from a third. “If we really want widespread adoption, then using a mobile phone in Indian languages should be as easy as using it in English,“ Hariharan said. This is what Google hopes to achieve by introducing devices in partnership with Indian handset makers Micromax, Spice and Karbonn, which will launch the Android 5,000 to One devices for 7,000 next week. The availability of such devices will also help internet companies such as Facebook and Yahoo promote their products in Indian languages.

• Ratan Tata buys into e-jewellery co: Ratan Tata has made a personal investment in online jewellery retailer Bluestone as the former Tata Group chairman scales up his exposure to India’s red hot e-commerce sector which has attracted a steady stream of investor money. Tata, 73, now chairman emeritus of Tata Sons, the holding company of the $100billion steel-to-software Indian conglomerate, has subscribed to fresh shares of the three year-old e-commerce player which sells jewellery targeted at women buyers. The size of Tata’s investment could not be ascertained by TOI. He joins a list of pedigree angel investors and venture capital firms backing the Bangalore-based company founded by IIT graduate Gaurav Singh Kushwaha and Vidya Nataraj, and seed-funded by the serial entrepreneur duo Meena Ganesh and K Ganesh. Tata made his maiden ecommerce investment last month when he picked up a small stake in Snapdeal by buying out an early investor, first reported by this newspaper. His latest move is interesting considering Tata Group’s brand Tanishq emerged as a billion-dollar jewellery retailing enterprise under his watch. “An investment by Ratan Tata who has been at the helm of India’s most successful and respected conglomerate is a validation of our approach in building an innovative brand that is disrupting the jewellery market,” Bluestone’s Kushwaha told TOI. Bluestone is a vertically integrated online jeweller with its own manufacturing, designs and delivery functions which competes with the likes of Caratlane .com, which is backed by Tiger Global. Venture Capital funds Accel Partners, Kalaari and Saama Capital are Bluestone’s existing investors. “Bluestone is targeting the modern Indian woman aged between 20 to 50 years, with contemporary designs and a huge choice of designs. It offers one lakh designs and has a one-week delivery schedule,” Ganesh, a co-promoter, said. “It’s a classic case how internet and technology is transforming a traditional capital-intensive industry with just-in-time inventory model,” he said. The online jewellery store is expected to have clocked around Rs 60 crore in sales. Online jewellery is poised to be one of the fastest growing segments in India’s e-commerce market which is projected to become an $8-billion industry in the next two years. The current share of online sales in the $50-billion domestic jewellery market is 0.5%, providing it with big headroom to ride the wave of internet consumerism. India’s ecommerce boom is set to spawn several deep-domain specialists even as Flipkart, Amazon and Snapdeal dominate the horizontal play. “Tata’s coming on board is a huge endorsement for the opportunity that Bluestone enjoys going forward. Having him as a mentor and getting access to someone of his stature will help the team learn immensely business-wise as well,” said Vani Kola, MD, Kalaari Capital, which led a $10million investment in the etailer of curated jewellery earlier this year. Interestingly, Kalaari Capital is also an early investor in Delhi-based e-commerce player Snapdeal. Higher merchandise value, hefty margins and low inventory costs make online jewellery a better prospect in an otherwise bleeding e-commerce sector. In the US, Nasdaq-listed Blue Nile, a specialty online retailer of diamonds and fine jewellery with a market value of about $350 million, competes with retail chains like Tiffany & Co and James Allen.

• HUL launches e-tail pilot project: It is not unusual for consumer products giant Hindustan Unilever (HUL) to move out of its comfort zone and experiment with ideas which do not fall in its main line of business. In the past, the FMCG major had experimented with a launderette, and now it is said to be conducting a few pilots in the growing e-commerce space. According to industry sources, the Rs 28,000-crore HUL is considering using its strength of being present in 3.2 million outlets across the country to ensure consumers are delivered products directly at their doorsteps. The neighbourhood kirana shop owner would most likely play a key role here. It is also learnt that in addition to selling its own products through the e-commerce route, HUL could consider selling certain non-competing products as well through this route. To begin with, the initiative is taking place at a very initial stage of a few stores. However, a scale-up in the future is not entirely ruled out, said sources. “HUL recognizes e-commerce as an important plat form to reach out to consumers and shoppers. From time to time, we pilot various initiatives and learn from them. We regret that we have no specific comments to offer on your queries below,” said an HUL company spokesperson in response to a query on the company’s entry into e-commerce. A decade back, HUL had launched a launderette in a bid to gain some consumer insights in laundry. It had also set up a consumer-delivery model under Sangam Direct, which it eventually exited. HUL also runs a few Bru Cafes in Mumbai which, once again, helps the company in connecting the brand with the consumer. The company continues to be present in the direct selling industry with brands like Aviance and Lever Ayush. All these models go beyond the company’s core business of marketing FMCG products, but these have been undertaken to understand the changing consumer buying behaviour. With e-commerce becoming a growing platform where consumers purchase goods, a few pilot projects that HUL has undertaken would help the marketer to better understand the manner in which the new medium functions. According to industry reports, e-tailing has the potential of reaching $20-30 billion in five to six years. The sector rides on the growing internet user base, which is slated to cross around 400 million users by 2020. Convenience and free home delivery appears to be driving the trend of consumers shopping online. An industry expert said ecommerce was fuelling convergence between manufacturer, retailer and consumer. For a company like HUL, which has over 40 brands spanning 20 categories, it is important to understand the consumer buying behaviour online, which is very different from traditional retail. HUL recently expanded its direct retail reach in its endeavour to serve consumers in the farthest corners of India. The maker of Dove soaps, Surf detergent, Kissan ketchup and Lipton tea also extended its ‘perfect stores’ programme to one million stores by the end of 2013.

• Apple hiring senior Gap marketing executive Marcela Aguilar: AdAge: Apple INC is planning to hire Gap Inc executive, Marcela Aguilar, as director-global marketing communications, website Ad Age reported on Wednesday. Aguilar is senior global director-marketing communications at Gap. The move comes one day after Apple announced the Apple Watch - three lines of smart watches to be available in early 2015. The fashion world remains divided on the first look of the Apple Watch. Roseanne Morrison, fashion director for the Doneger Group, an industry consultant, said the design fell short of her expectations. However, many contacted by Reuters agreed that the device was better looking than existing offerings from Samsung Electronics Co Ltd and LG Electronics Inc , which are judged to be clunkier. Aguilar is one of several hires to bolster Apple's marketing talent, the website said. In mid-2011, Aguilar was the first external hire by Gap's global Chief Merchandising Officer Seth Farbman, as the struggling company was working in an increasingly competitive specialty retail space, the Ad Age report said.

• Myntra working on propositions like HRX in women's space: Online lifestyle and fashion retailer Myntra is working on some propositions similar to HRX, Bollywood star Hrithik Roshan's lifestyle apparel and casual wear brand, in the women's space and an announcement on it would be made shortly, a top company executive has said. "As we are talking, we are working on some propositions similar to HRX in women's space. We will announce that shortly," Myntra's Chief Operating Officer Ganesh Subramanian told here. Myntra plans to rope in a celebrity to launch fashion products in the women's space, Subramanian said, but refused to throw light on whether they planned a tie-up with any Bollywood actress as they had recently tied up with actor Hrithik Roshan. "We will not be able to reveal the name of the women's active wear brand as yet as the launch is not scheduled anytime soon," Subramanian said. Hrithik had exclusively launched his active lifestyle apparel and casual wear brand HRX ? Push Your Extreme, which is a mix of his own style and passion, Subramanian said. As fashion e-commerce sales is expected to touch $ 2.8 billion by 2016, according to a study, the online stores are taking the glamorous entertainer route to sell their fare. "Myntra had roped in Kangana Ranaut as brand ambassador, who is also the face of our women's fashion brand DressBerry. There's also Bollywood star Ranveer Singh, who is the face of Myntra's in-house jeans brand - Roadster," Subramanian said.

• Rocket Internet joins rush of e-commerce listings: German venture capital group Rocket Internet, which has launched dozens of online start-ups in recent years, announced plans on Wednesday to raise about 750 million euros ($970 million) by listing a stake as it rides a wave of e-commerce flotations. The announcement comes just a week after Zalando, Europe's biggest online fashion player that Rocket helped launch, also announced its intention to float, meaning the two companies will be competing for investors at the same time. The Berlin-based group said in a statement the offer would consist solely of new shares, proceeds of which it would use to finance growth through launching new businesses and providing more capital to its existing companies. A flurry of e-commerce flotations is expected to be capped this month by China's Alibaba, whose initial public offering is expected to be the biggest ever technology listing, surpassing Facebook Inc's $16 billion listing in 2012. Rocket Internet is bidding to create the largest internet empire outside the United States and China. It wants to replicate the success of Amazon.com Inc and Alibaba in markets the US and Chinese e-commerce groups have yet to dominate, such as Africa, Latin America, Russia and other parts of Asia. Founded in 2007 by brothers Oliver, Alexander and Marc Samwer, Rocket is active in more than 100 countries, making revenue of $1 billion in 2013 via e-commerce and online marketplaces for everything from taxis to meal deliveries.

• Google Hangouts now offers free voice calls to numbers in the US and Canada: Earlier today, Google started offering Google Voice users the option to migrate their accounts to Hangouts. Now, we know the full extent of the update: As well as integrating Google Voice accounts, all Hangouts users (iOS, Android and Web) can now make voice-only calls to one another, as well as free calls to regular numbers in the US and Canada. In addition, Google is promising “really low” rates for international numbers. The updated Android app, version 2.3, will be rolled out over the next few days, however iOS and Web users should be able to access these features by simply relaunching Hangouts. It’s worth noting that Android users will also require a new Hangouts Dialer app to enable standard phone calls.

• California has passed a ‘Yelp Bill’ that protects the customer’s right to review businesses: A new law has taken effect in California that prevents businesses from forbidding and penalizing customers from writing reviews. Though officially called Assembly Bill 2365, it had come to be known as the “Yelp Bill.” Yelp published a celebratory blog post today about the new rules. The core of the law bans businesses from enforcing “non-disparagement clauses” in their customer contracts, which have been used to prevent consumers from publicly sharing their experiences with a business.