Grrrr! I had food poisoning

It seems lifestyle maladies are not just restricted to humans. This time it’s pets who are its new victims. A large number of dogs and cats in North America succumbed to death after eating wet pet food, manufactured by Canada-based company Menu Foods. Eating the tainted food led to kidney failure and other severe illness among the pets. According to scientists at the New York State Food Laboratory, Aminopterin, a toxin, found in the recalled foods is said to be the real culprit for all this mess. The company has recalled 95 brands of “cuts and gravy” style dog and cat food (that were suspected of being tainted), irrespective of their date code.

A wave of rage struck North America, and there have been calls from 4,400 pet owners (FDA reports), storming with queries on recalled pet foods. The company officials have confirmed death of 16 pets (15 dogs and one cat), which seems far behind the reality. Market reports claim that more than 450 pets have breathed their last breath after having that food. Menu Foods is a leading North American manufacturer of wet pet food products with production of more than one billion containers in 2006. Controversies like these will shake consumer’s trust in the brand and tarnish the image of the company. Stringent rules are called for; to avoid such mess in the future.

Life’s death due to poor business!
Life magazine, published by Time Inc. was killed for the third and final time on March 26, 2007. The reasons are decline in the newspaper business and poor advertising predictions. In 1972, its weekly run ended, while in 2000, the monthly was taken off the stands. Life was known as the practical inventor of photo-journalism. When Time took over Life in 1936, it was known for good quality pictures and sold more than 13 million copies then. The title will live on a new website with photographs from its back catalogue.

Dell offers a cheap bargain to Chinese
In order to capture the emerging markets in developing countries, Dell Inc. introduces its new range of Desktop PCs in China, that are not only succinct in terms of size but also in price. Following the fastest growing PC market in the world, Dell would then take its product to other countries including India. This EC280 comes embodied with an Intel 205 microprocessor and energy saving features. Holding a price tag between the range of $333 and $513, this product comfortably fits the pockets of its Chinese amateur computer users. However, Dell’s efforts follow the numerous attempts made by other PC players like Lenovo, Hewlett-Packard Co. and Acer Inc. to target the Asian consumer market.

Etihad flying on a bidding ride
Etihad Airways, a UAE-based airline devises to invite aircraft makers Airbus and Boeing to bid a call for single and twin-aisle aircraft in forthcoming year. As Abu Dhabi government plans to expand its network in Middle East and other nations like India, Etihad had an eye on new long range aircraft s including Airbus’s new A350 and Boeing’s 787 Dreamliner. Etihad, which has 25 aircraft s under its net, intends to add routes to growing markets like India, specifically to high potential destinations like Calcutta and Bangalore. Etihad estimates its revenues to rise 60%, boosting sales to $1.25 billion this year. This can be due to its expansion scheme as compared to that of 0.78 billion last year while managing 2.83 million passengers.

(COURT)ship for the media baron
Conrad Black, 62, is the former Chairman of Hollinger International Inc. and has been charged with fraud, racketeering, tax violations and money laundering. His trial was delayed because the defense lawyers complained about new publicity of a key witness against the ex-media baron that might have tainted the jury. The trial on 19 March, 2007 focussed on procedural matters and involved the usual debate between defense and other motion. The trial attracted worldwide media attention, but Black burst out avoiding all of them. The government expects the trial to last three to four months. But whatever be the verdict, Black’s British title is assured as it can only be stripped by the Parliament.

Microsoft Vista boasts high introductory sale
Microsoft proudly announced its 20 million copy sale of Windows Vista since it was introduced in February. Cruising past the 17 million sales of the Windows XP – the earlier version introduced in October 2001 – has Microsoft all excited about the future of Vista envisioning it to be the fastest embraced version of Windows ever. While the landmark has been attributed to the retail sales apart from PC Manufacturers and the Express Upgrade program, analysts are skeptical and far from cheering the success. Their reasoning is that a major chunk of these sales could have been from the discounted coupons for Vista upgrades offered to buyers during the holiday season. And Microsoft ’s not telling!

The phenomenal real-estate company
A deal that creates UK’s biggest home-building company, will surely invite a great deal of attention and especially when the parties in concern are George Wimpey and Taylor Woodrow. The two companies have agreed to merge to make a new company by the name of Taylor Wimpey, in a deal amounting to $9.8 billion. The new firm will be large enough to get a place on London’s main FTSE 100 stock index. The merger will enable them in cutting costs to the tune of $137.5 million a year and will also boost their business in US as well as in the UK. Analysts seem enthusiastic about the deal, we hope, so does the stock market!

China red hot for luxury
First Goldman Sachs and now Credit Suisse; both are ready with their version of statistical estimation of the consumption behaviour of the Chinese. In 2005, Goldman Sachs predicted that by 2015, China would top the global list in terms of consumption of luxury goods. A survey conducted by Credit Suisse in 2006 further vindicates the prediction made by Goldman Sachs; the survey results reveal that by 2015 China will overtake Japan, Germany, Britain and Italy to become the second largest consumer goods market globally, just behind USA. Robust economic growth, increasing population and accelerating urbanisation have been cited to be the major forces propelling the consumption behaviour.

Porsche in a defensive mode
In order to prevent hostile takeover by any foreign firm, German sports car-maker Porsche AG has decided to increase its stake in Volkswagen causing discontent among EU. Porsche, which currently holds 27.3% stake, will be increasing it to 31% (up 3.7% valued at $1.34 billion), thus enabling Porsche (if it wishes) to make a full takeover bid under current German laws. It should not be forgotten that Volkswagen owns arch rival Lamborghini and Audi. Along with the S and RS range, the introduction of the A5 and S5 models by Audi have caused severe palpitations in the Porsche camp, as the cars compete with products like the Boxter. Analysts believe that the sports-car major wants a controlling stake in Volkswagen in order to deter hostile competition from the fellow German. This move can be interpreted in two ways first; either Porsche is laying foundation to make a full takeover bid to retain its long time ally or it is just xenophobic. Porsche denies this for now.

Boeing’s CEO’s high flying remuneration
Jim McNerney, Chief Executive, Boeing Co. has reaped in rich rewards to the tune of $13.8 million in 2006, all thanks to the sterling performance of the aerospace company. With Boeing breaking records in airplane sales and in the military contracting business, the laurels were attributed to McNerney who has led the company since July 2005. And it sure has been a Herculean task for him to salvage the image of a company reeling under scandals, and that too in so short a time span. Also the deserved prize has exemplified the company’s stand on paying on the basis of performance.

Citigroup on a dieting spree...
In a bid to create a leaner and thinner Citigroup, draconian measures in the form of job cuts has been resorted to. The banking giant will shed 10,000 to 15,000 jobs and further relocate some 14,000 jobs from high cost locations to less expensive location; thereby affecting approximately 8% of the global workforce. The bank has been under pressure from investors and analysts to slash upon the cost. The consumer and credit card division, along with the investment bank, would bear the brunt of the job cuts. The move is a part of the global restructuring program aimed at streamlining the bank’s unwieldy global operations.

MG Rover to vroom from China
Nanjing Automobile Corporation (NAC), which acquired MG Rover Group (Britain) and Power Train (MG’s engine making unit) in 2005, will roll out MG Rover’s popular MG7 and MG TF sports car in July 2007 under NAC-MG brand. NAC, a state-owned enterprise, will be reintroducing MG Rover in China and Europe which was a popular sports car in the UK during 1960s. In order to cut down costs, production facilities and equipments have been transferred from the UK to Nanjing which has a capacity of 200,000 cars & 250,000 units of engines. In 2008, another production facility in Oklahoma is on the cards in order to capture the American market.

Blood 'Red' full stop to SEZ
In what can be called the defining moment for the Special Economic Zone (SEZ) policy in India; CPM-led West Bengal Government has scrapped the proposed Nandigram chemical hub project. The announcement was made by the CM, Buddhadeb Bhattacharya, in a public meeting; his first after the Nandigram debacle that saw as many as 14 people dead and more than 50 injured in an indiscriminate fi ring by the police. The decision (to scrap the project that is) came in the wake of widespread protests and criticism against the existing SEZ policy and Buddhadeb’s hard-handed efforts to push them up. “We don’t want clashes, bloodshed and deaths, irrespective of which party the dead belongs to,’’ he said as he owned the responsibility for the mayhem, adding that all future projects will be initiated only after taking the consent of people.

This unilateral decision by the West Bengal Government has opened the floodgate for similar demands from other parts of the country. Within few days of scrapping the Nandigram SEZ project, Vilasrao Deshmukh-led government in Maharashtra also announced a freeze on all land acquisitions for the proposed SEZ of the Mukesh Ambani-led Reliance group in Raigad district, which had also witnessed widespread unrest over farmland takeover. Similar protests have also started in Kalinga Nagar, where steel giant Posco has decided to set up an industrial hub. It is expected that in the coming weeks, protests related to land acquisitions are only going to intensify and the SEZ policy may be in for a complete makeover.

Keeping India's 'Flag' high at LSE
Reliance Communication's (RComm) Flag Telecom is all set to hit the London Stock Exchange through an Initial Public Offer (IPO). Flag Telecom is RComm's fully-owned subsidiary and runs a fibre bandwidth network connecting a major part of the globe. Goldman Sachs and Deutsche bank have been hired by RComm to manage the proceedings of the IPO which is said to be completed in three months’ time. According to analysts, the company is worth $2 billion and it is believed that through divestment of 10- 15% equity, Anil Dhirubhai Ambani Group (ADAG) will be able to recover 10 times of hat it paid to acquire Flag Telecom in 2002 ($211 million). Part of the proceeds of the IPO will go into funding its expansion plans, announced last year.

Now, IBM will take care of your Idea(s)
Idea Cellular Ltd. has inked a $600-800 million outsourcing deal with IBM. The 10-year contract, based on an innovative risk-reward sharing model, will cover all of Idea’s existing and future operations. The model will take care of key processes like billing, revenue assurance, fraud management, e-billing, et al, as it tries to cut costs for the company which has around 14 million subscribers. IBM is the world's largest computer services provider and also has a pact with Airtel. Meanwhile, it’s speculated that a deal with Hutch is also on the cards.

Beware: The 'series' killer now rolls in India
As a part of its 'long-term plans in India', BMW India Pvt. Ltd., (wholly-owned subsidiary of German automobile goliath BMW) inaugurated its €20 million assembling plant in Chennai. This plant has an initial capacity to roll out 1700 vehicles a year. While the production of its 3-series has already begun, 5-series sedans are slated for a roll-out in May-June this year. Made exclusively for India, these cars fall in a range of Rs.2.6 million to Rs.4.2 million. The automobile major expects to sell 1,200 units in the country in very first year, out of which, 90% will be locally manufactured from this plant which is fifth in Asia.

Rupees' (shaky) seven year itch...
Appreciating at the rate of 9% for the last eight months, Rupee’s surge against US dollar touched a seven-year high reaching 43.04/05. But the high was short-lived, as the very next day there was a 1.7% fall on suspected RBI interventions and was the greatest single day fall in nine years. The gain of strength can be attributed to sustained dollar sales by banks in unison with robust capital inflow. In a bid to curtail liquidity and curb inflation, the RBI has refrained from purchasing dollars. Along with bringing about retardation in exports, the gains on IT exports will be hit the most.

Bangalore: High on IT, Hip-Hop & Money!
After Mumbaikars and Delhiites, it's now the Bangaloreans who are getting richer by the day. The IT hub of the country is the third largest in terms of High Network Individuals (HNI). At present, Bangalore has around 10,000 individual dollar millionaires & 60,000 super rich people with surplus of Rs.45 million & Rs.500,000 for investment, respectively. A study conducted by American Express says, there are close to 83,000 HNIs and 711,000 super rich people in India. The city's investment into financial instruments like shares and mutual funds ($25 billion in 2006, as compared to $200 billion in Mumbai & $50 billion for Delhi) talk of the city's burgeoning wealth. Return of NRIs, entrepreneurs and fat pay cheques are some of the reasons for making this city Richie-Rich.

(Glen)Marking a European presence
Mumbai-based pharmaceutical major, Glenmark, has acquired over 90% stake in Medicamenta of Czech Republic, marking its first commercial foray in the lucrative European market. The deal was sealed by its Swiss subsidiary, Glenmark Holdings SA, and the presence of Medicamenta's sales and marketing arm in both Czech Republic and Slovakia, would provide added opportunities for Glenmark. Reportedly, Glenmark shelled out $12-13 million for the acquisition. Meanwhile, without wasting much time, Glenmart Pharmaceuticals has also announced plans to launch 10-15 new generic drugs in next 2-3 years as it looks out for more companies (as big as Medicamenta) to acquire.

The Daily Mail chugs into India, Today
The India Today group has forged a deal with British media group Daily Mail & General Trust (DMGT), the publisher of The Daily Mail. Though the details are yet to come, it is expected that the Joint Venture (JV) will look at the morning tabloid space and India Today's existing afternoon tabloid Today might get an overhaul. The British group will have a 26% stake in the JV. Also in the media sector, FUSE+Media, part of international venture fund ComVentures has bought a 19.17% stake in Rajat Sharma promoted India TV for a cool $11.5 million.

Of interesting times & dis'interest'ing hikes
It’s the fifth time since May 2006 that the nation’s largest private bank, ICICI Bank has increased its home loan lending rate. The 1% increase this time, comes in the wake of RBI increasing the lending rate to banks (which is increase in CRR by 50 basis points to 6.50% & repo rate by 25 basis points to 7.75%). Consequently, the minimum interest rate for home loans will now be 12% (up from 8.5% in May 2006) and the EMI will up by Rs.60 for a loan of Rs.1,00,000 for 15 years. On the other hand, HDFC has increased its lending rate by 50-75 basis points and other major banks are likely to follow suit.

Parryware Roca in for a luxury bath...
Parryware Roca a 50:50 Joint Venture between Murugappa Group and international sanitary ware major Roca has big plans lined up for the country. On cards is – expansion and acquisitions for which the company has outlined an investment of Rs.7.5 billion (€130 million) in next two years. Both, national and regional brands are being considered for acquisitions as the company aims to acquire a 10% market share of the Rs.1 billion organized market within two years. This JV which has just launched its first range of premium bathroom and sanitary ware (at Rs.1,50,000 onwards) is also planning a retail foray. 20-30 showrooms will be opened in the next two years as the company also kicks off its manufacturing facilities.

India, 'Fund'ing Oil land 'Mutual'ly
In the land of oil and Sheikhs, Indian mutual funds (operating in the Gulf region) stole the show at the Lipper Fund Award Gulf 2007 (by global fund tracker Lipper Inc.) and won as many as 22 awards. ADAG's Reliance MF bagged maximum number of awards across six categories while Franklin Templeton got five awards and was also awarded the best fund house amongst all mutual fund companies doing business in Gulf. Moreover, HDFC & UTI were facilitated with three awards each and DSP Merrill Lynch and Birla Sunlife MF had to be content with two each. HDFC was selected as best company in the mixed-assets categories in terms of threeyear returns while ICICI Prudential could manage to grab only one.

Lalu's way to nirvana: Take a train
Aft er reviving loss making railways and teaching BSchool grads a thing or two about management, Lalu Prasad Yadav is on a new mission these days. From the land of Buddha himself, Lalu recently flagged off a luxury train which traverses through prominent Buddhist pilgrim centres across India and Nepal. Christened ‘Mahaparinirvana Special’, the train starts from Delhi tracing Bodh Gaya, Nalanda, Rajgir, Varanasi, Shravasti and Lumbini in Nepal along with hitting Taj Mahal & Fathepur Sikri during the week long journey. The measure is believed to give a boost to tourism and to the cash registers of Railways. Fully AC with all comforts, the fair falls in the range of $80-$150 varying according to class & season.

Who wants tobe a trillionaire?
The annual FICCI-PwC report on the Indian Entertainment and Media sector is out and predicts a staggering CAGR of 18% for this sector by 2011. The report pegs the sector's turnover to touch a whopping Rs.1 trillion at the end of 2011 from the current Rs.437 billion. While the TV industry is projected to grow by 22%, the print media sector will grow at 13%. With over 100 million pay TV homes in the next four years, subscription revenues are supposed to be the biggest boost provider for the idiot box. The Radio is expected to witness a growth of 28% and a cool Rs.17 billion as ad revenues by 2011. Also, 2006 saw 13 FDI proposals getting the green signal by the centre and 22 more are under the government's scrutiny.