Around The World

How Britain did its best for its workers?
According to research done by the European Trade Union Confederation, Britain has been very successful in improving the standard of living of its lowest-paid workers since 2003. The success rate has been much more than any other European country at least. The nation’s decision to introduce a minimum wage (the minimum wage is £5.35 an hour for adults now) has worked wonders in combating ‘poverty wages’ in UK. The research report reveals that since 2003, purchasing power for the minimum wage earners in Britain has risen by 18.8%, while in countries like Latvia, Poland, Portugal, Malta and France, increase in the minimum wage has failed to keep up with inflation. Predictably, many lowly-paid workers from eastern Europe have made a beeline for Britain in search of better pay. The report adds: “The fact that wages will continue to differ substantially across Europe in the years to come, also means that wages will continue to be a potential driver of relocation processes as well as an argument by employers in high-wage countries for wage moderation & other concessions.”

More heads to start rolling at Motorola
The world’s No.2 handset-maker, Motorola, has announced that it will cut another 4,000 jobs, as part of a strategy to beef up financials and turn around operational results. The company announced – in the beginning of this year – that it will cut 3,500 jobs as part of its two-year cost-cutting plan to save $400 million. These layoffs are already underway, and the process will be completed by the end of June. And now, it says that it will cut 4,000 more jobs – this time to save another $600 million in 2008 (it has further announced that it will ‘prioritise investments’, put controls on discretionary spending and general & administrative expenses). The total number of employees at Motorola stood at 150,000 worldwide in 2000; by the beginning of this year, the number had declined to 66,000.

Indian chutney finds an English taker
Patak’s, best known in Britain for yummy Indian pickles & chutneys, is being bought over by Associated British Foods (that has brands like Twinings tea, Sunblest bread, Silver Spoon sugar, and Ovaltine in its portfolio). Patak’s was set up in 1957 by Laxmishanker Pathak (who came to Britain as a refugee from Kenya in the 1950s). Realising the demand for Indian food in UK, he started out initially by selling samosas. Now the company (that had to drop the letter ‘h’ from Pathak to make the brand sound more pronounceable!) is run by Laxmishanker’s son Kirit and his wife Meena. The company sells curry paste, pappadums, chapattis and cooking sauces that are supplied to all major Indian restaurants in Britain, and is also exported to more than 40 countries around the world. Associated British Foods told British newspaper, The Guardian, that they will “look at all options to expand the business and are particularly keen to increase Patak’s international sales, which currently account for around a quarter of its overall turnover.” Kirit and Meena will remain part of the new business – as will their three children. George Weston, Chief Executive of Associated British Foods, told The Guardian: “We are privileged to be able to acquire as fine a business as Patak’s. We look forward to working with Kirit and Meena Pathak to build this business further.”

Come, meet the new World Bank boss!
Now it’s clear! All the talks about Tony Blair being the next World Bank chief were not quite right! The US President, George W. Bush, has nominated Robert Zoellick – former US Deputy Secretary of State – as the next World Bank head. Zoellick will succeed Paul Wolfowitz, who is going to step down at the end of the June. Wolfowitz was mired in a scandal suit after it came to light that he had given a hefty raise to his girlfriend, Shaha Riza – who worked for the World Bank too – in 2005 (soon after he had taken over as the World Bank chief). The findings by a special bank panel stated that he had acted unethically and had broken the bank rules by acting in the way he did. After the findings were revealed, Wolfowitz had to step down. The newly nominated World Bank chief – Zoellick has served in various positions at the Department of the Treasury from 1985 to 1988. In August 1992, he was appointed as the White House Deputy Chief of Staff and Assistant to the US President. He was also appointed as Bush’s personal representative for the G7 Economic Summits in 1991 and 1992. In the 2000 US presidential election campaign, Zoellick had served as a foreign policy advisor to George W. Bush, as part of a group led by Condoleezza Rice, that called itself The Vulcans. He was named US Trade Representative at the beginning of the younger Bush’s first term and on January 7, 2005, Bush nominated him Deputy Secretary of State. Welcome aboard the Bank, Mr. Zoellick!

Dr. Singh’s prescription for responsible growth
At the recent Confederation of Indian Industry (CII) annual general meeting, Dr. Manmohan Singh, the Prime Minister of India, talked a different language. Different from Manmohanomics, that is! Dr. Singh called for a curbing of conspicuous consumption, and laid out a few guidelines – that are now being branded as The Commandments. All this was to counter the feeling that India Shining is not working for everyone and that there are many Indians today who can’t even afford a square meal a day. Here are some of his pearls of wisdom. “Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest.” He added that, “I am aware that some of our companies are doing creditable work. I compliment them. But we need more such inspiring examples.... The representation companies give to SCs, STs, OBCs, minorities and women in their workforce and staff must increase.” He also had a few words to say about corporate social responsibility: “Corporate social responsibility must not be defined by tax planning strategies alone. Rather, it should be defined within the framework of a corporate philosophy which factors the needs of the community and the regions in which the corporate entity functions.” He said that when he reads about the growing number of Indian millionaires and billionaires, about Indian companies buying up multinationals, about India’s over - crowded airports, about the real estate boom, about new holiday destinations, about soaring CEO compensations, he realises that India has benefited enormously from the growth process…. But “the time has come for the better off sections of our society to understand the need to make our growth process more inclusive.” He added that “we (Indians) cannot afford the wasteful lifestyles of the Western world,” adding that the government can do its bit – but the larger burden should be on ‘industry’. Time to get our conscience in order...

Ford and Volvo to hit the road together
Amidst the flurry of cars in the Indian auto market, Europe’s top-end Volvo is planning to drive right onto Indian roads. For this, Volvo will incorporate Ford’s help, and together formulate an action plan for future launches. The Indian arms of both Volvo and Ford are planning a joint strategy to penetrate a market that has huge growth potential. Roughly, this is what the plan will be. While Volvo will cater to the high-end segment, Ford will take care of the midsize segment. Volvo has plans to get its C30 and C70 models to India some time next year, but the company will debut in the country later this year: with the S80 Sedan and the XC90 sports utility vehicle (SUV). Both cars are obviously going to be premium products – priced between a staggering Rs.45 lakhs and Rs.60 lakhs! The luxury car segment in India is growing at a more than healthy rate: in 2005-06, 27,529 units were sold, whereas in 2006-07, a staggering 40,964 units were sold – a growth of almost 50%. And this segment is being targeted by all the biggies: players like DaimlerChrysler, Audi, BMW and Porsche.

M&S to go on an expansion spree
Leading British clothing to- food retailer Marks & Spencer (M&S) is in the process of consolidating its presence in the booming Indian market. The chain had entered India via the franchise route. It is also taking serious stock of the Chinese market. The Chief Executive of Marks & Spencer, Stuart Rose announced these international expansion plans, soon after declaring a pre-tax profit of 965.2 million pounds, for the 12 month period ending March 31, 2007. M&S is increasingly selling goods online and promoting its image as an eco-friendly company. Having fended off a takeover bid (worth 9.1 billion pounds) from British tycoon Philip Green three years ago, this has been the seventh successive quarter of growth for the high-street retailer. For India and China, the company has now said that there are major expansion plans in the pipeline. To get more details on the exact nature of the expansion drive, we’ll have to wait till November this year, when Marks & Spencer will unravel its international plans. So till then…

Georgia Tech comes to Hyderabad city
Georgia Tech University (GTU), one of the most respected technological institutes in the US, is now going to get an Indian chapter. The city that has been zeroed in upon is no other than Cyber City Hyderabad, where Georgia Tech will open a campus. Chief Minister of Andhra Pradesh Y.S. Rajasekhar Reddy has given the official go-ahead. Now, all GTU needs is All India Council for Technical Education’s (AICTE) permission. GTU’s new chapter is part of its plan to globalise – in the true sense of the term – and open branches all over the world. GTU’s Indian campus will offer MS and PhD degrees in subjects like engineering, science, industrial and business management. Let the good word spread!

Sunil Mittal’s new role
Founder, Chairman and Group Chief Executive Officer of Bharti Enterprises and the man behind brand Airtel, Sunil Bharti Mittal has been elected President of Confederation of Indian Industry (CII) for 2007-08. Giving him company will be K. V. Kamath, Managing Director and Chief Executive Officer, ICICI Bank, who has been elected as Vice President of CII for the same period. Mittal succeeds R. Seshasayee, Managing Director of Ashok Leyland. Mittal founded the Bharti Group at the tender age of 18, and today heads a successful empire that is among the top 10 business houses in India. Mittal was the Vice President of CII in 2006-07.

A perfect view from the top
Frankfinn Aviation Services is taking wings! The cabin crew training academy has said that it will invest Rs150 crores to set up an aviation and hospitality academy in Panjim, Goa, for which they have acquired 14 acres of land. It also plans to open 100 centres – overseas – over the next couple of years with a view to enhance its global base. A centre will be opened in Dubai in June this year; centres in Nepal, Bangladesh & Sri Lanka are up next. Currently, Frankfinn has 65 centres in India, across 55 cities, & plans to open ten more soon. Fly, fly, fly!

India’s Visa power
Did you know that the Asia Pacific belt accounts for 60% of Visa debit and prepaid cards’ global consumer volume and over 67% of the number of its transactions? Clearly, people in this region are spending, spending, spending! One look at the numbers and you’ll know exactly how much! Total transactions in the region in 2006 accounted for a huge $156 billion – that is up 31% over $119.08 billion that was spent in 2005. Not just that: in the region, India is the biggest market for Visa debit and prepaid cards. In real terms, there were around 3.39 crore cardholders in 2006 in India – which accounts for 34% of Visa’s customer base of 10 crore in Asia Pacific. After India, the countries with the largest number of Visa cardholders are Thailand and South Korea (1.39 crore and 1.16 crore customers respectively). India is also among the top three markets in the region when it comes to total transactions. At the end of 2006, seven out of 10 Visa cards in India were debit – as opposed to credit cards.

Split wide open
Poster boy and pop-star Enrique Iglesias has confirmed that he has split with his girlfriend, former tennis player, the stunning, Anna Kournikova. The couple had been seeing each other for five years, and had visited India during Enrique’s tour in 2004 (when he performed in Mumbai and Bangalore). Iglesias had said sometime ago that he had no intention of getting married – and it is this reluctance to get married and start a family that is being rumoured to be the cause for the split. “I’m not ready for children. I don’t feel like taking on such a responsibility yet. But in the future, I’d like two children,” Enrique has reportedly said.

Why Johnny Depp is the sexiest pirate of ‘em all?
Walt Disney Pictures’ epic adventure Pirates of the Caribbean: At World’s End – the third of the trilogy – from Jerry Bruckheimer Films, landed in the global box office record books and laid claim to the biggest opening in industry history. An unprecedented gross of $401,000,000 in its first six days of release, a figure that surpasses the previous record of $382 million set by the six day opening of ‘Spiderman 3’ earlier this year. In the US, the film set a new record for the four-day Memorial Day Weekend with its gross of $142 million. It had record-breaking openings in the following countries: Korea ($18.4 million), Japan ($15.9 million), Russia ($13.7 million), Spain ($11.6 million), Taiwan ($4.5 million) & Netherlands ($2.8 million). It also set new Walt Disney Studio records in the UK ($26.6 million), France ($17.7 million), Germany ($16.8 million) & Australia ($9.9 million). Pirates of the Caribbean: At World’s End rolled out on over 29,000 screens worldwide and showed on a record number of digital screens in the US (1,064) & Internationally (414). Mark Zoradi, President, Walt Disney Studios Motion Picture, Marketing & Distribution said, “We knew that audiences all over the world were excited to see Johnny Depp and the rest of the fantastic ‘Pirates’ cast in this latest adventure, but this record-setting response at the global box office has been nothing short of incredible. ‘Pirates of the Caribbean: At World’s End’ now has the distinction of having the biggest opening in movie history, and we’re extremely proud of that achievement.”

Anyone for Chandigarh-style furniture?
Auction house Christie’s – always in the news for buying and selling art and artifacts – is now looking at auctioning furniture, designed by Le Corbusier and Pierre Jeanneret (the former’s cousin) for government buildings and private houses in Chandigarh circa 1960 (which was when the city became the state capital and the seat of power). This auction will take place in the Big Apple, New York City, in June. Among the stuff that will be sold to the highest bidders is a rosewood, wrought-iron low table, that is expected to notch up a selling price of a whopping $100,000-$120,000. Wow! Also in the line is a concrete exterior light 89cm high, 88cm wide and 50cm deep fixture; it is expected that the price tag will be anything between $25,000 and $30,000. Let’s say that Chandigarh has truly found its place under the auc- tion sun!

Bollywood does it Spanish style
Why do we always rave and rant about not making it to the Oscars every year – when the fact is that Bollywood is going great guns, thank you very much! If the ‘global’ nod is so important, then here’s one more reason why the Hindi film industry should be feeling very good about itself. Madrid has just hosted a weeklong festival (organized by Renoir and Palafox cinemas and the Spanish Film Institute) showcasing the best of the world’s most prolific film industry – and six Indian films made their way to the official competition! Which ones? Well, there was Vishal Bharadwaj’s adaptation of Shakespeare’s Othello, Omkara, while the rest of the line-up included Nagesh Kukunoor’s Dor (a story of two women who hail from vastly different worlds), Chitra Palekar’s Maati Maay (a movie about a female gravedigger), Gajendra Ahire’s Bayo, Anjan Das’ Faltu and Sashi Paravoor’s Nottam. Outside the competition, the festival also hosted Vidhu Vinod Chopra’s Eklavya, Govindan Aravindan’s Malayalam film Vasthuhara (The Dispossessed) that deals with refugees struggling to s u r v i v e post-Partition world, and Pamela Rooks’ Train to Pakistan.

Indo-US sector on the fast track
It’s early days – and we don’t really know whether the Indo-US civilian nuclear deal with get pushed through and whether the countries’ diplomatic ties are going to be given a further leg-up, but one thing is for sure: airline companies seem set to increase traffic between the two countries. What’s more, price cuts seem to be in the offing too! Other than business travellers, more than 1.5 million passengers are travelling on this route, and the market is growing at a healthy rate of 10%. Continental Airlines is planning to launch daily non-stop flights between Mumbai and New York/ Newark from October (it is already operating a Delhi-New York nonstop sector). Air India, from August onwards, is going to have a non-stop flight between Mumbai and New York. Soon after, Naresh Goyal’s Jet Airways will start flying from Mumbai to New York (with a stopover in Brussels). Kingfisher Airlines, too, has plans of starting non-stop flights between Mumbai and New York, and Bangalore and San Francisco, by early next year. With the India-US sector witnessing a high load factor, fares are bound to go down as a part of aggressive marketing initiatives by carriers launching new services – although this might be in the initial stages.