Thought of the Day:
“If you stand for nothing, you’ll fall for anything”
~Unknown
Did you know?
“Vodka was used as an ingredient in early European formulations of gunpowder"
Following made the Headlines:
India:
- Prices Heat up as Heavy Rains Cool North Temperatures: Heavy rains continued to lash north India on Monday, disrupting life in Delhi and wreaking havoc in hill towns, but the weather department said there will be respite by Tuesday. Vegetable and fruit vendors in Delhi raised prices by up to 10% as supplies from nearby farms and neighbouring states slowed down. “Prices are expected to rise in the short term as there have been crop damages due to the sudden rains,” said Pradipta Sahoo, head of horticulture at Mother Dairy, a co-operative retailer. Heavy rains in the past 24 hours across the Delhi-NCR region have led to slow arrival of vegetables from nearby villages and also from Punjab, Haryana, Rajasthan and Uttar Pradesh, said Rajinder Sharma, chairman of Azadpur Agricultural Produce Marketing Committee, the largest wholesale market for vegetables and fruit in Asia. “Vendors have been quick to cite this as reason to raise prices temporarily.” Traders said it was a temporary phase when farmers were unable to harvest the produce and bring it to mandis. “Good road infrastructure across the region has, however, ensured daily arrival of 700-800 trucks (each carrying 15-20 tonne) at Azadpur,” said Sharma. Of this, mangoes accounted for more than a quarter. On Monday, the price of potato at Azadpur mandi ranged between 6.50 a kg and 12 per kg, onion 7.50-14 per kg and tomato 10-15 a kg. “At the mandis, vegetable prices may increase by 50 paise to 2 a kg, but at the retail level sellers increase prices by up to four times, hurting consumers,” said Surinder Kohli, a leading vegetable trader from Azadpur. He said only a slight increase of 1-2 a kg has taken place in the prices of vegetables such as ladyfinger (16), bitter gourd (8) and bottle gourd (7).
- Monsoon Bonanza: Roaming Cheaper: The telecom regulator has lowered mobile phone roaming charges by up to 30% from next month and allowed operators to float conditional free roaming plans, offering relief to subscribers as well as some companies that were opposing removal of all charges. The Telecom Regulatory Authority of India (Trai), however, refused to make the service completely free, as suggested by telecom minister Kapil Sibal earlier. “It is simply not practical,” Trai chairman Rahul Khullar said on Monday. Roaming refers to facilities for making and receiving calls and SMSes when the subscriber is travelling outside his home zone.
- Google Launches 'Product Listing Ads' in India: Search engine giant Google on Monday launched a new ad format 'Product Listing Ads' in India to provide users information like images, price and brands of products, which will help people shop better both online and offline. Everyday, millions of shoppers use Google search to research and discover products to purchase online and offline, and this new format connects users to rich product-information like looks, price and brands, Google India said in a statement. Product Listing Ads will appear on shopping-related queries on Google-.co.in. This feature will initially be placed on the right-hand side of the search results page above text ads, and it will be labeled as 'sponsored', it added.
- Groupon India to Focus on Wellness, Travel for Growth: Deals company Groupon India said on Monday it will focus on wellness, food & beverages and travel segments to grow its business in the Indian market. Groupon India’s contribution to its parent company Groupon International is small at present, but the company expects it to grow significantly going forward. “We are one of the youngest countries in Groupon’s portfolio. But it is treated as an extremely strategic market. Groupon as a concept is sitting on potential of $2-2.5 billion,” Groupon India CEO Ankur Warikoo said. “Wellness, food and beverages and travel garner dominant share of our total sales, “he added.
- Jet in Code-share Pact with Air France, KLM: Jet Airways on Monday said that the company has entered into codeshare agreements with Air France and KLM Royal Dutch Airlines. The code share agreement will allow both the foreign carriers to sell tickets on Jet’s domestic routes. Code-share is a commercial agreement between two or more airlines that share the same flight, with all the partnering airlines able to sell seats on that particular flight. The code share agreement will allow passengers of the European carriers to book tickets on the domestic routes through Jet Airways and also redeem rewards on frequent flier programmes. “The code-share agreement enables Air France to place its marketing code on Jet Airways’ domestic flights to three major Indian cities beyond Bengaluru, Delhi and Mumbai. Customers travelling from Europe to India on Air France flights will now be able to connect seamlessly with one ticket to Chennai via Bengaluru, Delhi and Mumbai, and to Kolkata, Hyderabad via Mumbai and Bengaluru,” Jet said in a statement. The tickets are open for sale from today for passengers wanting to travel from June 19. Jet, meanwhile did not mention, whether the airline will be able to sell tickets via the European carriers.
- Dabur Promoters’ PE Fund to Invest in Healthcare Chain: Asian Healthcare Fund (AHF), a private equity firm floated by Dabur Group chairman Anand Burman and former Dabur Pharma CEO Ajay Kumar Vij, is close to investing in Wellspring Healthcare, which operates a regional chain of primary healthcare clinics under the brand name Healthspring community medical centers in western India. This comes two months after AHF committed an investment of around 40-50 crore in Mydentist, a regional dental care chain of 40 clinics with a focus on western India. This would be the second investment of the PE fund after it was established in 2011. While ET couldn’t verify the amount of investment, the PE fund is likely to pump in money into the primary healthcare chain in a phased manner, in at least two tranches. Without disclosing the amount, Ajay Vij, CEO of AHF, confirmed the plan to ET, adding, “We are impressed with Healthspring’s vision to create a patient centric primary healthcare platform that would offer services of family doctor in a modern setting and plan an investment in the venture.” Healthspring, promoted by doctor Gautam Sen and his entrepreneur son Kaushik Sen, currently runs seven healthcare centres in Mumbai and plans to use the funds it is raising to scale up its footprint in other select geographies. In 2010, the Burmans invested in a radiology business operated by Diwan Chand Medical Services. But this was made in their personal capacity and hadn't been routed through the PE firm, sources told ET.
- Govt set to ease single-brand norms: The government is set to issue fresh guidelines that will clearly stipulate that international chains entering India through the ‘singlebrand’ retail window can use multiple trademarks to sell their goods. Existing guidelines allow products to be sold under “single brand only” and also stipulate that the same brand should be used in markets other than India. The rules were framed over six years ago when the government opted to open a limited window in the retail segment amid stiff opposition to multi-brand retail. The stipulation has raised policy headaches for the government as it discovered that entities such as Marks & Spencer are using multiple brands such as Indigo, Autograph and M&S. In fact, some government departments have also raised the issue, prompting the department of industrial policy and promotion, which is the agency responsible for foreign direct investment policy, to consider a set of clarifications to clear the air. Even other retailers like H&M use multiple brands, such as Cheap Monday and Monki. Even Zara faces similar hurdles.
- Triumph, Polaris to take on Harley: After a near three-year unchallenged run, Harley Davidson will get some competition. Within the next one year a range of super bikes will hit the Indian roads. Arch rival Triumph is expected to finally launch its products in India by the end of this year. That will be followed by US’ all-terrain vehicle maker Polaris, bringing its sole cruiser mobike Victory as well as the recently acquired Indian motorcycles sometime next year. “We have plans to bring our Victory motorcycles as well as Indian bikes to India,” said Pankaj Dubey, managing director, Polaris India. “We have not set a timeline for it yet but India is a big potential market for these bikes.” Polaris acquired Indian Motorcycles, America’s oldest motorcycle brand, in 2011 and has been working on revamping its product portfolio to revive the brand. Along with Triumph, the entry of new players will expand the market for luxury cruisers and offer more choices to the customers. Harley Davidson currently sells 12 models in India. Triumph had showcased a range of 7 mobikes in India during the 2012 New Delhi Auto Expo priced between Rs 5- 22 lakh. It was expected to hit the roads last year but plans got delayed due to unforeseen circumstances including the departure of its managing director in India. Triumph hopes to set up a dealership each in Delhi, Mumbai and Bangalore this year.
International:
- EU and US 'in biggest trade deal': UK Prime Minister David Cameron has announced plans for what could be "the biggest bilateral trade deal in history" between the EU and the US. He announced the start of formal negotiations on a trade deal worth hundreds of billions of pounds, aimed at boosting exports and driving growth. Mr Cameron said a successful agreement would have a greater impact than all other world trade deals put together. The talks were announced ahead of the G8 summit in Northern Ireland. US President Barack Obama said the first round of negotiations would take place in Washington in July. They aim to conclude by the end of 2014. Mr Obama said he was confident of reaching an agreement. "There are going to be sensitivities on both sides... but if we can look beyond the narrow concerns to stay focused on the big picture... I'm hopeful we can achieve [a deal]."
- After protests, Indonesia's parliament boosts fuel prices by as much as 44%: After clashes between police and protesters, Indonesia's parliament Monday night voted to revise the national budget and allow an increase of up to 44% in the prices of subsidized gas and diesel fuel. Earlier Monday, protesters who rejected the increase clashed with police outside the parliament building in Jakarta. Police fired tear gas and water cannons at thousands of them before legislators began voting on the budget revisions. There were smaller protests in other parts of the country. Violence was reported in Malang in East Java province, Ternate in the Maluku Islands and Jambi province. The vote was delayed for hours as political parties lobbied, behind closed doors, for and against the fuel price increase. As the final vote was announced, university students, who were seated at the parliament's gallery, locked arms and shouted slogans. The revised budget will allow gas prices to increase from 4,500 to 6,500 rupiah (46 U.S. cents to 66 U.S. cents) and diesel from 4,500 to 5,000 rupiah. The World Bank has long pushed for a cut in subsidies, which it says benefit mostly rich private car owners, to help ease pressure on the budget. The increased prices will not affect the public transport sector.
- Retail Rises on Wall Street: Retail stocks gained ground today as investors showed more confidence that the Federal Reserve would continue to prop up the economy in hopes of driving down unemployment with low interest rates. The S&P 500 Retailing Industry Group rose 0.6 percent, or 4.90 points, to 792.07, and the Dow Jones Industrial Average, increased 0.7 percent, or 109.67 points, to 15,179.85. The gainers included Estée Lauder Cos Inc., up 2.6 percent to $70.20; Avon Products Inc., 2.3 percent to $23.39; Ralph Lauren Corp., 1.7 percent to $176.10, and PVH Corp., 1.6 percent to $125.19. The Ben S. Bernanke-led Fed begins a two-day meeting on monetary policy on Tuesday and is expected to leave its supports for the economy in place. That sentiment also helped support markets in Europe, where stocks perked up. Paris’ CAC 40 rose 1.5 percent to 3,863.66 as Frankfurt’s DAX gained 1.1 percent to 8,215.73, London’s FTSE 100 rose 0.4 percent to 6,330.49 and Milan’s FTSE MIB nudged up 0.3 percent to 16,194.14. The gainers included Luxottica Group SpA, up 3.4 percent to 39.65 euros; Brunello Cucinelli, 2.6 percent to 17.96 euros; Tod's, 2.4 percent to 109.90 euros; Salvatore Ferragamo, 2.4 percent to 23.50 euros, and Burberry Group, 2.1 percent to 13.99 pounds. The pound traded at $1.57 against the dollar while the euro fetched $1.33.
- Italia Independent IPO Seen in July: Lapo Elkann’s Italia Independent Group SpA may make its debut on the AIM Italia Alternative Capital Market, a segment of the Italian Stock Exchange, on July 5, according to a document issued by the Italian Bourse. A market source, however, said the procedure to publicly list the company is “moving faster than expected, and the listing could take place even earlier than July 5.” Italia Independent has in the meantime been preadmitted to the AIM market, but the price range of the shares will be set closer to the initial public offering. Elkann, an heir to Fiat’s Agnelli family, has been looking at developing the brand globally and to sustain growth. Last year, the company reported sales of 15 million euros, or $19.2 million at average exchange, and it has plans to hit 30 million euros, or $39 million at current exchange, by 2015. Italia Independent offers men’s apparel and has collaborations with Vertu phones; Borsalino hats; Smeg kitchen appliances, and Ferrari for a tailor-made service, among others. Eyewear remains a key focus for Elkann, whose brand offers 200,000 customized variations of five models.
- Digital Platforms Alter Role of the CMO: The roles of chief marketing officer and chief information officer are blending. Today’s cmo must be equally fluent in digital and traditional marketing practices as the online space — including e-commerce, advertising,social media and mobile — contributes an ever-growing percentage of sales for brands and retailers. Gone are the days when cmo’s focused mainly on booking space for TV or print ads and promotional fliers. Now their reach stretches across all aspects of a brand, from marketing to digital platforms to in-store technologies. “You are getting this new wave of cmo that is often times younger, innovative, more entrepreneurial, and comes from a background of social media,” said Juliet de Baubigny, partner at venture capital and private equity firm Kleiner Perkins Caufield & Byers. “And if not, they are radically embracing the shift in understanding how to get the consumer.” De Baubigny noted that this encompasses a different point of view than their predecessors when it comes to communicating with and influencing consumers. Authentic marketing is still paramount and she emphasized that it’s imperative to speak to customers in a way that encapsulates the authenticity of the brand. But she said that from a core marketing side, there’s been a “huge shift of social dollars.” She started noticing the shift a few years ago — that dollars at companies were being divided between the cio’s and cmo’s organizations.
- Nordstrom's Big Plans for Expansion of Rack: Nordstrom Rack is looking to expand north, south, east and west. The openings are part of parent Nordstrom Inc.’s goal of having over 230 Racks in operation by 2016, a number it could reach even earlier than that. There currently are 127 Racks, with plans to open 24 this year and another 30 in 2014. Among this year’s openings is likely to be a 42,000-square-foot unit in Brooklyn, N.Y., the company’s first store in the borough of 2.8 million people, which retailers from across the price spectrum have been flocking to of late. Nordstrom is expected to sign the lease this week. Rack is also expanding in California, Texas and South Florida and in cities such as Chicago; tailoring assortments to local tastes; opening Rack units in areas where demographics couldn’t support a full-line store, and targeting university towns such as Eugene, Ore., near the University of Oregon. With a single unit in Union Square that bowed in 2010, there’s room for Rack to grow in Manhattan, where Nordstrom is planning to open a 285,000-square-foot full-line store in 2018. “We’ve shown an ability to pursue both full-line and Rack growth” at the same time, said Colin Johnson, a Nordstrom spokesman. “We’re growing both sides of the business. We’re open to looking anywhere throughout the Northeast, in New York City, but also a number of other communities throughout the region.” Nordstrom will unveil a Rack in the spring of 2014 in Manhasset, N.Y., Johnson revealed. “We have a lot of opportunity to take care of a lot more customers,” he said of the New York-metro region.
Currency:
· 1 USD= INR 58.0099 (↑)
· 1 EUR= INR 77.4869 (↑)
· 1 GBP= INR 91.0951 (↑)
· 1 AUD= INR 55.2119 (↑)
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 28050.00 | 70 | 44040.00 | -60 |
Mumbai | 27760.00 | 70 | 46147.00 | 815 |
Delhi | 28080.00 | 70 | 45926.00 | 811 |
Kolkata | 28050.00 | 70 | 46258.00 | 817 |
World Indices:
Exchange | Last | Change |
DJIA | 15179.85 | 109.67 |
FTSE 100 | 6330.49 | 22.23 |
CAC 40 | 3863.66 | 58.50 |
DAX | 8215.73 | 87.77 |
Nikkei | 12941.80 | -91.32 |
Hang Seng | 21095.73 | -130.17 |
Sensex | 19325.87 | 147.94 |
NASDAQ | 3452.13 | 28.58 |