Now it’s Richard Brandishing low fares

After making the world go ga-ga over his surprising, yet flamboyant moves, this time Richard Branson plans to introduce “the world’s first low-cost global network.” And he is not alone in this initiative as he intends to seek support from AirAsia’s Tony Fernandes as well as EasyJet’s Stelios Haji-Ioannou. In order to give shape to his dream of becoming the first global low-cost carrier, Branson has plans to connect the Asian sub-continent with the Western world. Hence, the destinations like Malaysia, China and India will be connected through lowbudget airlines as these regions appear promising as far as long haul air-services are concerned. The trio of Virgin Atlantic, Easyjet and AirAsia would play a significant role in reviving the global low-cost airline industry which has been affected by high fuel costs and terrorism scares.

However, on the other hand, Branson’s plans of launching his low-cost air carrier in America got a setback as the United States Department of Transportation rejected his application stating that the company does not have a corporate structure that supports American laws. Consequently, Richard Branson has been forced to reconsider the corporate structure of the wannabe airline in which he has around 25% stake. Whatever might the case be, Richard Branson will soon find out ways to overcome the hurdles and implement his global low-cost delivery model. And whenever this happens, one can be rest assured of the fact that Branson would run his low-cost venture with similar oomph and vivacity which is reflected in his existing pursuits.

Yet another steely affair!
US steel major Nucor Corp. has unveiled $1.07 billion deal for the Canadian steel major Harris Group. Nucor, which has operations across the United States, would pay around $39.31 in cash for every share of Harris. This deal with Harris Steel would also broaden the company’s geographic reach; increasing its growth opportunities. The company paying 6% premium compared to the closing price on December 29, 2006. The deal has support of both the boards it is subject to the necessary regulatory approvals.

Chrysler to taste Chinese Chery
After flooding the US market with a variety of its products, China is all set to deliver a first ‘Made in China’ car to the shores of the US, the world’s largest automobile market. Daimler Chrysler AG’s Chrysler group has entered into an agreement with the Chinese automobile company Chery to build small cars. The deal will give an advantage to Chrysler which does not have a significant product in the small-car segment – growing at a noteworthy rate. Though the sub-com-pact segment accounted for only 1% of the total US market, this segment has seen a tremendous growth in the past few months due to the rising fuel costs.

Marsh PUTs off a POWERful deal...
The company Marsh & McLennan Inc. has finally agreed to sell its Putnam Investment Unit to Power Corporation of Canada – a diversified management and holding company – for $3.9 billion. Power Corp. was among the three bidders for Putnam with Italian bank UniCredito Italiano SpA and Londonbased fund manager Amvescap Plc being the other two. The price that has been decided is the higher limit of most of the valuations made for company. The deal that isstill awaiting approvals from the employees (who hold shares in the company), shareholders of Putnam Mutual Fund and the other board members, is expected to be announced soon.

Malibu spearheads GM’s retreat
General Motors has made a significant mark in the sports utility vehicle and truck market for years. Now, it is planning to launch its redesigned Malibu in early 2008, which will be unveiled at the North American International Auto Show in Detroit later this month. New Malibu which will be available with a 2.4- liter 4-cylinder engine or a 3.6-liter V-6 will offer a 6- speed automatic transmission with both the engines. Made with sleeker outer appearance and outlandish in comteriors, Malibu shares its mechanical components with the recently introduced Saturn Aura. Th e car is supposed to compete with Camry and Accord, both successful brands in the market. GM hopes to counter its declining sales through this move.

Of rising Celsius and sweating bodies
If researches done by the British scientists are anything to go by, then 2007 would be the warmest year on the records. Because of resurgent El Nino climate trend coupled with higher levels of greenhouse gases, the global environment is on the verge of an ecological disaster. Earlier, 1998 had been the warmest year as per the records, showing the average global temperature of 0.52 degree celsius (higher than the longterm average of 14 degree celsius). From time to time, many efforts have been made to get the attention of the world towards deteriorating climatic conditions of earth, the latest one being the Stern report. But sadly, no significant efforts have been made to solve this problem which has a significant impact on the human race worldwide.

Domino’s to bite larger market pie
Domino’s Pizza is all set to strengthen it’s arms in Europe. The pizza major recently claimed that it is about to finalise the deal of buying Netherlands Al Capone’s 17-store chain & 8 shops of Belgiumbased Alvolo. Once the deal is finalised, this will enable Domino’s to operate with over 1,000 stores in Europe. This quick service restaurant chain from the country of Uncle Sam currently has 620 stores internationally, which are predominant in Australia. After making its presence felt in countries like Netherlands, France & Belgium in April 2006, Dominos is buoyant to strengthen it’s presence in Europe and these acquisitions are a part of its ambitious 10-year growth plan.

Cisco adds Iron to its diet
Due to growing demand of the anti-virus & anti-spam soft ware, US network equipment major Cisco decided to buy web messaging & e-mail security firm IronPort Systems for a price of $830 million. This aims at integrating Cisco’s main product line of routers and switches with the latest niche technologies. Also, this association with IronPort will help Cisco in diversifying its products and services offering; allowing the company to off er a comteriors, prehensive range of products to its clients. The deal is expected to be a combination of cash and stock and will only materialise by the third quarter of 2007.

Boeing is new order of the day
After surviving several blows of technological problems and executive resignations, Airbus seems to be a warrior beaten by the American Boeing. Boeing’s total count of orders received during 2006 touched a record 1,044, which was better than its previous best of 1,002 during 2005 (when it was only narrowly beaten by Airbus at the last moment). In comparison, Airbus has only suffered a lot during the previous year and is expected to announce just 700 orders for 2006. The global aviation industry has witnessed a number of tit-for-tat games during the past 30 years. While Airbus had enjoyed donning the leader’s hat for the past half-a-decade, now it’s Boeing’s turn.

Yahoo, now on your DASHboard
Dash Navigation Inc. and Yahoo announced a tie-up, which will allow new Dash Express users to search local content on Yahoo while on the move. So apart from finding out the best possible routes for your daily travels, Yahoo! Local on your Dash Express can find the nearest Espresso Coffee Shop or even an undergarments store lest you put on the wrong combination of socks for that early morning meet. Search requests are formatted and presented in a simple listing of nearby businesses and with another push of a button you’ll be on your way to the desired destination.

Agilysys bows to Arrow Electronics
New York-based Arrow Electronics Inc. has signed a definitive agreement to acquire all of the assets and operations of the Agilysys KeyLink Systems Group for $485 million. Arrow will also enter into a long-term procurement agreement with the Agilysys Enterprise Solutions Group, Agilysys’ value-added re-seller business. With employee strength of 500, Ohiobased KeyLink is a leading distributor of enterprise servers, storage devices and software in the United States and Canada. Pro forma sales for KeyLink for year ’06 are expected to be in the region of $1.6 billion making Arrow the leading distributor of enterprise products for IBM and HP.

Sony dares to ring in South Korea
Seeking to make inroads in the highly competitive South Korean handset market, Sony Ericsson is negotiating a deal with SK Telecom, South Korea’s top mobile telecommunication service provider by number of subscribers. Sony Ericsson has agreed to adopt Wireless Internet Platform for Interoperability on its products. At present, the South Korean market is dominated by domestic handset makers, Samsung Electronics and LG Electronics. Motorola is the only foreign brand selling handsets in South Korea after Nokia exited in early 2003. This move from Sony Ericsson would infuse some competition in the South Korean telecom market.

It's official, public and final!
Real estate IPOs seem to be the fl avour of the season. But, the biggest one is yet to come. After spending half the past year speculating about the fate of DLF’s IPO, the markets will finally get to see it happening in March this year. For the public issue, the company has filed a new prospectus with SEBI and will now offload 10.2% of its shares, instead of the previously planned 12.8%. DLF, spearheaded by billionaire K. P. Singh, expects to raise over $2 billion to aid its mega projects in the hospitality and the real-estate domain and also pay off its debts. The overwhelming successes of real-estate players like Parsvnath and Sobha Developers, Hiranandani group, K. Rahejas, and Unitech in the bourses has further given a boost to DLF’s plans. As per the plans, the public issue will be of 175 million equity shares of Rs.2 each, and will implement 100% book building process. Kotak Mahindra Capital and DSP Merrill Lynch have been appointed the global co-ordinators and book running lead managers for the issue.

According to the trade pundits, irrespective of the size of IPO, there are high chances of the IPO getting oversubscribed. Meanwhile, another real-estate player Omaxe has also filed its prospectus to raise Rs.14 billion. Increasing number of realestate IPOs will bring in transparency in the industry, therefore attracting more and more investments from both local and global investors. According to the leading real-estate services and money management firm, Jones Lang LaSalle, India’s real-estate sector has witnessed a major improvement in transparency, which has become semi-transparent from being low transparent in the year 2004. In coming times, as real-estate sector booms, more IPOs and other financial instruments will act as shields, preventing the festivity from getting ruined.

Reliance: Rolling out a Fresh 'Wal'l in MP!
Come April and Madhya Pradesh will get a 'fresh' taste of Mukesh Ambani's retail foray. In November last year, Ambani kick started his retail venture from Hyderabad and now plans to roll out 75 outlets of Reliance Fresh in Madhya Pradesh. In the first phase, cities of Indore, Bhopal, Gwalior and Jabalpur will witness the opening of the outlets. Part of Ambani's Rs.250 billion retail plans, the agro-retail stores will stock fruits and vegetables, sourcing them directly from the farmers, along with giving them useful tips for increasing their produce.

Isn't it all about B(o)eing the go Jetter?
India’s largest private airline, Jet Airways, recently placed an order for 10 Boeing 787-8 Dreamliners. The deal is being valued at more than $1.5 billion (at list prices) and the delivery of the planes will begin n 2011. These fuel-efficient 787 Dreamliners along with other 777s (ordered in September 2005) are supposed to aid Jet's international operations. The airline will take delivery of 10 777-300ERs in April. As of now, Jet flies to London, Singapore, Kuala Lumpur, Colombo & Kathmandu and cherishes dreams to fly to North America, Europe, Africa, China & Asia.

Mahindra may drive Nissan in India soon
Japan’s second largest auto company, Nissan's India plans (including setting up of a manufacturing plant) will be finalised by March this year. The company plans to set up a JV with Mahindra through Renault (which holds 44% stake in Nissan) and their talks are believed to be in initial stages. However, company officials declined to comment on reports which suggested that the auto major is planning an investment of Rs.23 billion and will produce about 2 lakh cars annually. Earlier, Nissan had pulled out of talks with Japanese car-maker Suzuki to set up a joint manufacturing unit for small cars.

Passport in a week & hassle-free; beat that!
Planning a trip abroad, rest assured, reissuing a passport won't be much of a hassle now; all thanks to the government’s revised guidelines. For renewal, police verification has been cut-out (unless there is some negativity involved) and the re-issue has to be within four days. The eligibility criteria for Emigration Check Not Required has also been eased from graduation to matriculation. Along with the levy for the common man, the government is also working on the Passport Act to keep a tab on the cases of fraud. Introduction of biometric passports (with a digital storage device to record fingerprints and other details) is also on the cards.

After Nepal, MTNL now dials Mauritius!
State-owned Mahanagar Telephone Nigam Ltd. (MTNL) is going great guns these days. After starting services in Nepal, this telecom major will now be providing basic fixed line, fixed wireless, pre-paid and post-paid mobile and ILD services in Mauritius. Though MTNL was granted the license to offer fixed and wireless services in 2004, it started providing the ISD services in June 2005 and has now made a headway with its cellular services in the island. MTNL has earmarked Rs.1 billion for the roll-out.

Invisibly at country's service. For how long?
Once again the invisibles (services) have come to rescue. India’s current account deficit was curtailed to $6.9 billion for July-September 2006, despite a monstrous trade deficit of $17.99 billion, all thanks to the invisibles which stood at a positive of $11 billion. For H1 2006, trade deficit stood at $35 billion & current account deficit at $11.68 billion, compared to $27 billion and $7 billion, respectively, in 2005.

All for a ‘Panoramic’ view of Indian realty
After consolidating its position in hospitality sector, Mumbai-based Panoramic Universal Ltd., (flagship of Panoramic Group) is all set to enter the real-estate space. The company has lined up Rs.10 billion for expansions in India over next 3-5 years. Panoramic has already bought land worth Rs.2 billion across Maharashtra, Uttaranchal, Chandigarh and West Bengal and plans are underway to acquire 20 properties in the country. The company is currently evaluating properties in Kochi, Kerala, Chennai, Rajasthan and Delhi for the same. At present, it operates five hotels in US, one in New Zealand and three in India (in Goa, Shirdi and Malvan).

Pantaloons rolls out 'Big Bazaar' on the net
After gaining a foothold in the organised retail space, Internet is the latest stop-over for Kishore Biyani. Future group has launched an e-retailing portal, futurebazaar. com. Around 5,000 goods in myriad categories are on offer, along with the facility of home delivery. The website will serve people in 1,500 towns and cities across the country. Becoming the first retail portal to have a strong presence offline, Biyani aims to earn Rs.3 billion from this venture in one year of its operation.

Pressed with high roaming charges!
This one might be TRAI's New Year gift to all those who live out of their suitcases! In an effort to review the roaming charges, Telecom Authority of India (TRAI) is considering to bring about compulsory agreements among GSM and CDMA service providers. As of now, the government-owned BSNL doesn't have a roaming agreement with any of the GSM and CDMA players in the country. However, the announcement has met with a lot of flak from both, BSNL and private players. The points of differences are many, from technological hurdles in the handsets to the difference in the pricing strategies of BSNL (which is cheaper) and the private parties.

Ridding a MIN(e) of hassles... Mutually!
The Association of Mutual Funds of India (AMFI) recently launched the much awaited unique Mutual fund Identifi cation Number (MIN). Investors that have obtained the MIN by submitting their documents once, can get invested with any mutual fund offerings using the MIN. This will save consumers from reproducing their documents to fulfil the 'Know your Customer' norms under the SEBI guidelines, every time they approach a new fund house which will be valid for a lifetime. Those investing Rs.50,000 or more will have to obtain MIN effective from January 1, 2007. MIN which will be free of cost will be provided by CDSL Ventures Limited will keep the records for the investors.

Is your car acting pricey?
Amidst New Year celebrations and reverie comes in the news of price hike from auto majors like Honda and Hyundai. Honda’s City, Accord and Civic models will fall under this strategic move, while the newly launched ‘CR-V’ will be kept out of it. The rise in prices may be upto Rs.10,000. Even Hyundai is putting a new price tag on its models including the flagship Santro, amounting to 2% increase. According to the company officials, the hike in input costs has led to the increase in prices of selected car models. And Skoda and Toyota might join the bandwagon too.

Oh Boy! Indians are getting richer...
A study done by Synovate (a research agency) has thrown up some interesting facts. The survey estimates that over 7 lakh Indians (out of over one billion population) possess a wealth of about $1,00,000 which is likely to shoot upto $1.1 million by the year 2009. That is cumulative liquid wealth of $203 billion which is estimated to go upto $322 billion. Covering 11 countries across Asia, the study tracks the spending patterns of the creamy layer in the region. One of the findings reveal that while Internet access in the region has increased by 30%, in India it has upped by 132%. However, when it comes to owning a laptop, India has shown a meagre increase of 10% against Asia's whopping 225%.

Blackberrys now on its way down South
After setting shop in Northern and Eastern parts of India, Blackberrys, a premium clothing brand for men, is planning to go down south. Aiming to strengthen its position in the Southern markets, the high-end apparel brand has also unveiled a new premium collection called B B. The company has set aside Rs.250 million for its expansion and plans are underway to open additional 50 branded stores by March next year from the current 22. By March this year, the number of stores is expected to go up to 25. Also, the company is gung-ho about expanding into womenwear segment. Blackberrys' turnover for the fiscal 2007 was Rs.1.2 billion and the company is targetting Rs.1.5 billion in the next fiscal.