Recent media deals point to consolidation in the industry: Experts

NEW DELHI: Purveyors of news are rarely objects of news themselves, but India's splintered media landscape has made news in the past two weeks. A flurry of deals or talk of more similar transactions have stirred up the sector in recent days, putting the spotlight on the possible motivations and some crystal ball gazing on what lies ahead.

Last week saw a little-known chemical and fertiliser company Oswal Green Tech buying a 14.17% shareholding in New Delhi Television (NDTV) through two block stock market deals. Media reports said Mukesh Ambani-controlled Reliance was looking at buying into Network18, which runs CNBC India. Before him, younger brother Anil's firm Reliance Capital increased its shareholding in UTV News, which runs Bloomberg TV, by buying out UTV founder Ronnie Screwvala's 66% stake.

Industry executives and experts believe the consolidation trend will pick up momentum in 2012, separating the men from the boys in this highly splintered sector that is being increasingly hobbled by cost pressures and revenue challenges in a slowing economy.

With more than 700 television channels in India and only few making money, experts believe consolidation in the industry is inevitable.

"Consolidation has to happen. It is required," says Haresh Chawla, who recently announced his resignation as group chief executive officer of Network18 and Viacom18 after leading the company for more than a decade.

One major problem for the industry is that it has been too dependent on advertising revenues, while subscription revenues have been elusive.

Analysts say some signs of consolidation are already visible, as media companies cobble together bouquets of channels.

"It is already starting to happen and going forward, media companies will look at building a portfolio of broadcast assets across genres, geographies and languages to create a national setup," says Jehil Thakkar, head of the media and entertainment practice at KPMG.

The move towards regional channels, spread across geographies and genres, is triggered by the high growth in advertising revenues in the segment. Growth in advertising revenues in big cities has been around 12-13% even in good times because of an inventory overhang, while regional advertising has been growing at more than 20% for the last few years, say analysts.

Analysts say this could explain why Network18 may be looking at Eenadu TV. "Network18 does not have any regional channels in its portfolio. This move will give them an entry into the fast growing regional market," says one analyst. Buying Eenadu TV could give Network18 a bouquet of 11 regional channels.

What may also be attracting new investors such as the Ambanis and foreign media companies such as Walt Disney is the promise of higher revenues and growth as the full benefits of digitalisation kicks in. Collateral benefits of media ownership include access to content sources to power non-media business and potentially even some influence.

In the case of Reliance Industries, which is setting up a national 4G broadband service, ownership of a media company will give it an edge over competition, with access to exclusive content from a bouquet of channels as well as web properties. 

 

 

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Government defers decision on PSU disinvestment through buyback

NEW DELHI: Amid inter-ministerial differences, the Union Cabinet deferred a decision on proposal of Disinvestment Department to raise Rs 40,000 crore from divestment of PSUs through buyback and other modes.

"The buyback proposal came up for discussion but decision on the proposal has been deferred," sources said.

The Department of Disinvestment (DoD), which has identified about two-dozen cash rich public sector enterprises with a total balance of nearly Rs 2 lakh crore, had sought opinion of respective ministries on disinvestment through the buyback mode.

Sources said several ministries, like petroleum and coal, were not in favour of the buyback proposal as the move would have impacted the cash balance of PSUs under them.

The companies which have been identified by the government for stake sale include SAIL, NMDC, ONGC, NTPC, Coal India, Oil India, MMTC, Neyveli Lignite, NHPC, BHEL and GAIL.

As the market conditions are not conducive for disinvestment through public offer route, the DoD has been planning to raise funds through other methods like, buyback and cross holding among PSUs.

Under the buyback mode, the government can raise money by selling its equity in the company to the PSU itself.

In order to facilitate the disinvestment process, the Sebi Board yesterday, relaxed the norms for buyback of shares and dilution of equity by companies. It would help the companies to complete the process of selling shares within days, as against the normal process which can take months.

Among other things, the disinvestment department has also suggested promoting cross-holding of equities between CPSEs, which would help the government raise money without diluting its holding in such PSUs.

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Companies like Marico, HUL, Asian Paints and others let employees manage their leave

MUMBAI: Homegrown firm Marico, which makes Parachute coconut oil, does not keep a muster to monitor employee walk-ins at work. If an employee takes a day off, he or she is not marked absent. Nor is the employee required to file a leave application. Like Marico, many other companies have struck out the system of casual leave (CL) and sick leave (SL) from their leave calendars. Hindustan Unilever, Asian Paints and Jyothy Laboratories are some of the other companies which do not follow a CL/SL system and believe in empowering employees to manage their work schedules to meet their targets. 

This trend can be observed in industries like FMCGand financial sector, where employers are concerned about the end result and perhaps it helps in employee retention as well. Such initiatives have a positive impact on the productivity of employees who can manage their work schedules better in addition to attending to family needs. 

"There has been a paradigm shift and the younger work force cannot be bonded and expected to work looking at their wrist watches. The young task force is hungry for success and appreciate the flexibility to manage their time," said Monika Tripathi, VP, Elixir Consulting, a recruitment process outsourcing firm. There is a positive correlation between flexibility in the workplace and employee productivity, she said. 

Marico offers flexi-timings as it believes that every employee has the capability of managing his or her life best if he or she is her own boss. "If I'm an employee and am given a delivery level to achieve, I would merely deliver them and go back home. So there's a coming to office and going home factor attached to this. Once you get into this cycle, your risk taking will be limited to that extent," said Milind Sarwate, Group CFO and Chief HR Officer, Marico. 

Companies like Marico believe a casual leave is not an entitlement and that the organization's task is only to facilitate the same. Jyothy Laboratories offers its employees 21 days consolidated leave rather than complicating matters with CL and SL, said a senior official. 

Management consulting firm AT Kearney expects its consultants to define their own work timings. "We do not have a machine that monitors when employees walk in or out and the guiding principle behind this is that our people work stretched hours and have to travel constantly across locations so monitoring their timings would only add additional stress on them," said Rakhee Malik, manager, HR, AT Kearney. Its "success with flex" initiative is an expanded suite of work models and alternatives that people can consider when planning for both personal and professional responsibilities and goals. 

A number of traditional companies, however, still follow a CL/SL/PL (privilege leave) calendar, especially in the sales departments, where work schedules are followed like a military regime. While, on the other hand, some companies offer flexi-time options to middle and senior-level employees. At Mahindra Group, the attendance tracking is through access control cards. "At middle and senior levels, the attendance regularization is empowered to the employees. Up to managerial levels, the absences need to be regularized by applying through system which requires to be approved by superiors," said Neha Kharde, GM, corporate human resources, Mahindra & Mahindra. 

Giving employees too much freedom can, at times, be risky. However, most companies TOI spoke to have not come across employees misusing the system. "There are two kinds of indirect controls. First, there is a certain pressure created by professionalism. Professionals will not cheat. Secondly, in an open company what you do is very visible. If you walk in late everyday, it will be quite noticeable," said Sarwate. On the flip-side, the feeling of being liberated for an employee can be immense.


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Google Plus may have 400 mn users by 2012-end

LONDON: Google's social networking site GooglePlus will have more than 400 million users by the end of 2012, a researcher has said. 

The website that went public in September has passed the 62 million mark, the Daily Mail said. 

American analyst Paul Allen has said 625,000 members were signing up every day, and the number would rapidly increase because 700,000 Android devices are being bought every day. 

"Based on the accelerated growth I'm seeing and all the dials and levers Google can still utilise, and the developer ecosystem that will be developed, I predict that 2012 is going to be a breakout year for Google Plus and that it will end next year with more than 400 million users," Allen was quoted as saying. 

Google Plus' rival Facebook has 800 million users. 

The daily said Allen's methodology was not based on actual figures and could be described as a guess. 

The Global Web Index last week announced that Google Plus actually has 150 million active users, more than double of Allen's estimate. 




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PSUs asked to implement minorities' sub-quota in hiring

NEW DELHI: The government today directed the PSUs to ensure that its decision to carve out 4.5 per cent sub-quota for minorities out of 27 per cent for OBCs, is implemented in all recruitments from January 1, this year.

The Department of Public Enterprises (DPE) has written to the administrative ministries of different Central Public Sector Enterprises (CPSEs) asking them to seek compliance from the CEOs of the PSUs on minorities' sub-quota from the quota for Other Backward Classes (OBCs).

"All administrative ministries/departments concerned with the CPSEs are requested to bring this position to the notice of Chief Executives of CPSEs under their administrative ministries' control and ensure compliance of these instructions in recruitment/appointments in the CPSEs," the DPE said.

The Department of Personnel and Training has already notified the decision taken by the Cabinet on December 22.

Muslims, Sikhs, Christians, Buddhists and Zoroastrians (Parsis) have been notified as minority communities under the National Commission for Minorities Act, 1992.

The decision is based on the recommendations of the National Commission for Religious and Linguistic Minorities.

There are 249 CPSEs employing about 15 lakh people. 


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Air India may cut salaries of 5,000 employees

NEW DELHI: The debt-ridden Air India may slash salaries of about 5,000 of its employees, including pilots and engineers, following a rationalisation of wages.

A committee constituted to look into issues of integration of the national airline with the state-owned domestic carrier Indian Airlines is likely to recommend wage cuts in its report due by the end of the month. 



"Almost 85% of the employees won't see a change in their pay, but 15%, including licensed categories and some flying staff, would," Justice DM Dharmadhikari, a retired judge of the Supreme Court who heads the committee set up last April, told ET. "We are trying to bring the wage structure of the organisation strictly under legal parameters, so that it conforms with the guidelines of the Department of Public Enterprises."

Air India, saddled with a debt of Rs 43,000 crore, has not been able to pay its 33,000 employees for the past three months.

Another member, who did not wish to be named, said that since several pilots have quit Air India due to delayed payment of salaries, the committee will have to ensure that salaries of this group remain competitive. A senior member of a pilots union, however, said on the condition of anonymity that the pilots could cooperate if there is a sound rationale and the proposed salary cuts are marginal.

Even five years after the merger of the two airlines, there is much heartburn among the staff over the lack of uniformity in pay scales and career progression paths. Pilots of the domestic operations of the erstwhile Indian Airlines had resorted to a 10-day strike shortly after the constitution of the Dharmadhikari committee, demanding parity with the commanders on international flights.

The national auditor, Comptroller and Auditor General, in its report on Air India, observed that the airline did not follow any set procedure for pay revision or for fixing performance linked incentives. "Audit observed that allowances and PLI ranged from 62% to 919% of the Basic Pay against the maximum of 5% as per Department of Public Enterprises guidelines and the company made excess payment of allowances and PLI amounting to Rs 315.78 crore during the years 2007-08 and 2008-09," the CAG said in its report.

The CAG also found Air India Board guilty of approving an increase in various allowances, including PLIs, by up to 50% with effect from January 2005, even though the airline was dependant on loans for working

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Black money: A most discussed topic 2011

NEW DELHI: The government went into an overdrive to deal with the menace of black money and promised a White Paper on the issue as demands for bringing back the ill-gotten wealth stashed abroad gathered steam in 2011.

In the backdrop of various estimates on the quantum of such illegal funds, the government constituted expert panels to make a realistic assessment of black money and suggest ways to curb its generation.

The unconfirmed estimates of black money stashed in Swiss and other banks varies from USD 350 billion to USD 1,900 billion.

Finance Minister Pranab Mukherjee announced in Parliament that a White Paper will be issued on black money, while disclosing that government has received 36,000 'pieces' of information with regard to Indian account holders in banks abroad.

Social activists Anna Hazare and Yoga guru Baba Ramdev began hunger strikes against corruption and black money and demanded a strong anti-corruption legislation and to bring back black money stashed abroad.

As protests attracted huge crowds with people from all walks of life and classes thronging the venues where these agitations took place, the issue of black money acquired center-stage and became the hot topic of debate across the social media and television studios.

As the issue reached a boiling point at home, Prime Minister Manmohan Singh urged the G-20 nations during the summit in Cannes, France to send a strong message to control the 'serious problems' of tax evasion and illicit flows that have grave bearing on the developing nations' future. 

 

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Jammu and Kashmir reels under severe cold; Leh records -18.8 deg C

SRINAGAR: The cold wave sweeping Jammu and Kashmir broke the season's record on the New Year night as the minimum temperature in Leh slipped nearly 19 degrees below freezing point.

Leh town in the remote Ladakh region recorded the season's lowest temperature with the mercury settling at a low of minus 18.8 degree Celsius, a drop of 0.4 degrees from yesterday, an official of the MeT department said here. 

In the adjoining Kargil town, the minimum temperature was recorded at minus 16 deg C, a one degree drop from yesterday, he said.

Srinagar witnessed a freezing minus 4.9 deg C, which for the second time is the season's lowest temperature here.

The drop in night temperature resulted in partial freezing of Dal lake and other stagnant water bodies.

There has been a drastic drop in temperature since 'Chillai Kalan', a forty-day period of extreme chilling weather, began on December 21.

The skiing resort of Gulmarg, a star attraction for tourists visiting the valley during winter, recorded a minimum temperature of minus 8 deg C, an increase of one degree compared the previous night, the official said.

Pahalgam tourist resort in south Kashmir recorded a minimum of minus 7 deg C.

The gateway town of Qazigund in south Kashmir recorded a minimum of minus 5 deg C, while Kupwara town recorded a minimum of minus 4.7 deg C. 

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RBI favours one-time KYC over saving bank account portability

MUMBAI: The Reserve Bank of India is of the opinion that more than account number portability, customer would be better served by a facility to shift accounts without having to repeat the "know your customer procedure".

There have been reports that the finance ministry is considering asking banks to look at account number portability. Incidentally, RBI has already looked at the concept and has come to the conclusion that it would be a technological challenge and would be much simpler to implement once every account holder has a number issued by the Unique Identification Authority of India (UIDAI).

"A bank account is a contract between a customer and the bank and it is not easy to transfer this contractual relationship. It can perhaps be looked at once the UIDAI numbers are in place but as of now it is a challenge in terms of technology," K C Chakrabarty, deputy governor, RBI had said in the monetary policy press conference several weeks ago.

Bankers say that unlike mobile phone numbers there is no pressing need for a customer to retain the same account number. "The only reason why a customer would need the same number is because he may have left standing instructions in respect of the account. But with application of one-time KYC norms it should be possible for customers to shift such instructions immediately," said a banker.

Regulators across service industries have been making it easier for unhappy customers to switch service providers. In the mobile industry, number portability has made it possible to switch telecom companies without having to inform all their contacts of the change. In insurance, the regulator has allowed policyholders to move their health insurance contracts to other companies without losing the advantage of no-claim track record. But with banks even after a one-time KYC procedure is introduced customers will have to visit their new bank branch to provide their specimen signature.

In banking, number portability will require that customers be assigned a unique identity number. The government has proposed the UIDAI to be such a unique number. However, in the absence of such a number there is a need for a central registry to assign this unique id to customers.

"This would involve huge investments in technology and make banking services more expensive at a time when the effort is to bring down costs and make banking services affordable to all," said a bank official. 

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Government working on savings banks account number portability

Financial services secretary, DK Mittal has said that the government is working on savings banks account number portability. This comes at a time when the central bank, Reserve Bank of India has favoured looking into the matter once every account holder has a number issued by the Unique Identification Authority of India or UIDAI.
Mittal, however, said that banks would have to work on identification code, know your customers (KYC) norms and core banking solution ( CBS) for implementing the savings bank account number portability.

"We want to do it (savings a/c number portability). Right now there are some technical problems...we have identified them. We will overcome them soon," he said.

Earlier RBI's deputy governor KC Chakrabarty had also said that account number portability remains a challenge in terms of technology..

The move would help customers change banks, without the need of going through the KYC norms again.

As of now there is no country which offers complete bank account number portability, though rudimentary form is available in some European countries such as Sweden.

On the issue of capital infusion in state run banks, Mittal said that capital infusion in PSU banks would be completed by the end of this fiscal. "We will complete the process of bank recapitalisation by March 31," he said. the government has made budget provision of Rs 6,000 crore for capital infusion in PSU banks in the current fiscal. 

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Good ethics is also good business

In the first decade of the 21st century, many businesses learned firsthand the moral and financial risks of focusing exclusively on short-term financial gains. Consider the example of Lehman Brothers, which, after 158 years of successfully doing business , went bankrupt in the space of a single weekend. The causes: horrific mismanagement and a reckless disregard for moral hazard. 

The results: the worst global recession in decades. The Lehman Brothers debacle is only one of a long and growing list of recent business-management scandals that now includes Arthur Andersen, Enron, Bernard Madoff and Parmalat. 

In his latest book, ''Management Ethics: Placing Ethics at the Core of Good Management' (Palgrave Macmillan , 2012), Domenec Mele seeks to shift our gaze from short-term gains at any cost to a deeper, longer view of management. Mele argues that good management should take ethics into account because management is about people, and dealing with people requires ethics. A business is not a machine. It is first and foremost a human construct. 

Those who run the firm are free individuals who cooperate within an organisation with common goals, and the decisions and actions a manager takes have the potential to benefit or hurt other people. Thus ethics is not an artificial add-on to business, but an intrinsic aspect of good management. 

Companies should, therefore, resist seeing people as resources or as simply a means for profit. Ethical management is about recognising what people are, treating them accordingly and fostering their development. 

Ethics are embedded in management - first through decision making, second through the ideas that drive the practice of management and third through the moral character of the manager him or herself. Making and acting on ethical decisions help to humanise a business, generating trust, fostering loyalty, encouraging responsibility and helping to develop a strong moral culture. 

Respect for human dignity is a principle Mele proposes, along with the necessity to contribute to the common good of the communities to which one belongs, and to society . He holds up three basic values, and their corresponding virtues, as critical to ethical management: justice, truthfulness and intelligent love. Justice renders to all what is rightfully theirs. Truthfulness refers to the observance of truth in speech and behaviour, and a disposition to search for the truth. 

Intelligent love, understood as love driven by knowledge of the needs of the other , goes beyond justice and entails care and benevolence. Having an ethical sense pushes one to act in the best way for the purpose of efficiency. In turn, a company's efficiency contributes to the common good. 

Business managers always face a trade-off between generating profits and being responsible to their firm's many stakeholders . Shareholders, employees, customers, suppliers and the local community all have a stake in the success or failure, sustainability or loss of the firm. In a nutshell, while making a profit is necessary and important , it is not the sole purpose of business. 

Moral competencies, including character and virtues, have a particular importance in leadership. Character shapes the leader's vision, goals, strategies and perception . As Peter Drucker said, "It is character through which leadership is exercised." 

While ethics may not be a cure for all the ills affecting the economy, they are vital if we are one day to move beyond the current crisis to a sustainable recovery. As Mele contends, by helping managers choose the best possible alternative in each situation , ethics offer a sure path to better business practice and even to a better world.


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Placement Season: Tier-II B-Schools to feel the chill

Consumer durables and electronics company LG Electronics has decided to go slow on hiring from campuses this year. The company is likely to hire only 20 candidates from management campuses this time, compared with the 60 it recruited last year. Like LG, a number of companies in the country may go easy on campus recruitments , in the wake of a slowing domestic economy and the global economic crisis. The tremors won't touch the top management institutions such as the Indian Institutes of Management (IIMs), though. It's the second rung-B schools that will feel them hard. Most of their students won't land plum jobs this year. Not only are employers hiring fewer candidates this year, they are also deciding against an upward revision of salaries for B-school graduates.

Placements have begun at many such institutions, including Fore School of Management (FSM), International Management Institute (IMI), and ISB, Hyderabad. IBS, Hyderabad, for instance, has witnessed a drop in the number of jobs being offered by each company this year. "We are counselling students to be a lot more flexible in terms of salaries, roles and locations," says Dean-Corporate Relations Srinivas Cheedi. The institute is hopeful of 150 recruiters participating in this year's placements, compared with 130 last year, but believes the current placement season will be much slower. "The placements will drag on well beyond the end of the academic year," said Srinivas Cheedi. "There is no change in salaries being offered this year," he added. The average salary at IBS stood at Rs. 580,000 last year, while the highest was at Rs. 1.1 million.

However, some companies are tweaking the compensation structure by adding a larger part of the salary package to the variable, says an official familiar with B-school placements, who did not wish to be named. LG, for instance, is offering a fixed salary of Rs. 450,000, similar to last year. There is the bonus element, but it varies according to the candidate's performance. "Some companies have offered salary packages that are less by Rs. 50,000 to Rs. 100,000 this year," said a placement coordinator at a Delhi-based management institute , who too did not wish to be named. While it has been difficult to get organisations to look at an upward salary revision, a lot of recruiters have promised to look at revisions in the next fiscal, says Anita Lal, Chairperson - Placements, FSM. Yet, the institute is hopeful of a good placement season . "We have confirmation from as many as 93% of recruiters which visited last year and despite the slowdown, 11 new recruiters have confirmed their participation," she adds. The average package at the institute was at Rs. 700,000 last year.

Cosmetic goods and toiletries manufacturer Emami plans to plans to hire up to 15 management trainees from various secondrung B-schools this year. The company also says it will follow the market trend while deciding on salary packages, although there won't be any cutting back. "There will be an increased emphasis on variable pay," says Krishna Mohan, CEO of Emami. Hoping that business will remain as usual , IT giant Infosys is planning to hire more candidates from top B-schools as well as second-rung schools this year.

The company says it will stick to last year's salary offers, which were in the range of Rs. 650,000 to Rs. 1.2 million, depending on the role. "We plan to hire in the range of 1,000-1,500 candidates," said a company spokesperson. Last year, Infosys had recruited about 1,000 candidates. Some institutes like IMI in New Delhi are tapping new companies to ensure the placement season ends well. "We are trying to increase the basket of the companies to achieve our objective of 100% placement," says Satish Kalra, Dean of Placements.

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Nano has competition, Bajaj launches ultra-low-cost car

Bajaj Auto unveiled an ultra-low-cost car today, its first foray into the four-wheel market, pitching the vehicle as a solution to urban pollution and congestion.

The group displayed the compact RE60 at a presentation in New Delhi, stressing the car's high fuel efficiency and low 

carbon dioxide emissions, but it did not release a price tag.

"At Bajaj Auto, we believe the people of the planet deserve much better, much faster," said Rajiv Bajaj, managing director of the group which is best known for its motorbikes and three-wheelers.

The 200cc vehicle -- set to enter the same segment of the market as the world's cheapest car, the Indian-made Tata Nano -- will do 35 kilometres per litre of fuel and emits just 60 grammes of carbon dioxide per kilometre.

Bajaj said that the vehicle's emissions were "typically half of what the small cars currently emit in our market."

The main customers targeted are drivers of three-wheeled motor-rickshaws, but also anyone else who "wanted to take it home" once it goes on sale some time this year, Bajaj said.

The narrow four-seater car will do a top speed of 70 kilometres an hour and weighs just 400 kilogrammes, with Baja stressing that it had been designed specifically for urban commuters.

India has become a centre of small car design, engineering and production, with demand for cheaply-made cars booming as millions gain middle-class status each year.

The Tata Nano was launched in 2009 and costs as little as Rs 140,880 rupees ($2,770) for the no-frills model.

Earlier this year, Bajaj abandoned a joint project with France's Renault and its Japanese partner Nissan to develop a low-cost car.

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No surprise that Nehru Place is one of the 30 markets violating IPR

Nearly half the world's personal computers use software that is pirated. In India, it's worse. Only about one third of the software sold is genuine, according to Business Software Alliance (BSA), a trade group representing some of the largest software makers, including Microsoft and Adobe.

If the numbers remain alarmist, you only need to visit the country's largest technology market, Nehru Placein New Delhi. Its notoriety as a haven of software piracy was articulated by the US last month and it's easy to see why.

At first glance, a first-time visitor to Nehru Place might feel misguided. There's nothing technology about it. Street hawkers swamp the two main lanes alongside rows of shops, selling fake branded clothes, watches, shoes, utility items, and what have you. Cut through them to reach the stores selling computers, tablets, smart phones and just about any kind of software.

But even before you can enter any of them, 19-year-old Inder Kumar, boyish and street-smart, accosts with a seven-page catalogue. It's literally an A to Z of software, from Adobe to Z-Brush (a digital art software).

And he promises to sell them, at prices cheaper than a pair of boxers. He is all mouth even as his eyes dart around for cops and flying squads from Microsoft.

A Delhi Police cop is approaching, and as he nears, Kumar flees, snatching the catalogue. When the cop is gone, Kumar is back, keen to strike a deal. Boys like Kumar, about 300 of them, are all over Nehru Place, earning Rs 150 a day by selling pirated software. About a year back, they were more rooted -- they operated from benches just outside the computer stores.

A police swoop put an end to that, but not to piracy -- the boys move around. In the last five years, efforts by piracy watchdog Business Software Alliance (BSA) and industry players, including Microsoft and Adobe, has lowered software piracy in India by 7 percentage points to 64%.

That is, 64 out of 100 softwares sold are pirated, against 71 in 2006. But because of more computers being sold, the value of pirated software has more than doubled during the same period, from $1.27 billion to $2.73 billion.

It's why last month the office of the US trade representative (USTR) listed Nehru Place as among the 30 most notorious IT markets in the world that infringe on intellectual property rights ( IPR).

Besides Nehru Place, an earlier USTR report released in February had mentioned Richie Street and Burma Bazaar in Chennai; Manish Market, Heera Panna, Lamington Road and the Fort District in Mumbai; and Chandni Chowk in Kolkata on the list. A high arbitrage -- difference between original and pirated software -- and weak enforcement give them reason to flourish.

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14 lakh Aakash Tablets booked in 14 days

NEW DELHI: The new year may be a year of low-cost computing in India. Sales bookings for the world's cheapest tablet, Aakash, have soared to 14 lakh units just two weeks after it was put up for sale online for Rs 2,500 a piece. 

To cater to the 'unexpected' demand, UK-based vendor Datawind, the maker of the $35 tablet, has decided to establish three new factories - in Cochin, Noida and Hyderabad - in the first half of 2012 to assemble the tablet. Datawind currently has only one factory in Hyderabad, with its vendor Quad, which makes the LCD panel for the tablet. 

"We never expected such a high response from both corporate and individual buyers. We plan to supply 70,000-75,000 units per day once the factories are in place by April," Suneet Singh Tuli, CEO, Datawind told ET from Panama, where he was invited to advise its government on its low-cost computing project. 

"Around two weeks ago, we received a call from India's computer emergency response team that our website was probably suffering from a large cyber attack. We had to inform them we had just opened sale through our website," Tuli said. Datawind, which put out a limited 30,000 tablets for sale online with e-commerce provider Ncarry.com, has already exhausted the first lot. 

A spokesman for Ncarry.com, said that the website is catering to orders across India, with delivery in 5-7 working days. Ncarry is a subsidiary of Netherlands-based Nimbuzz, which makes instant messaging applications. The Nimbuzz IM comes pre-installed on Aakash. 

Pre-sales bookings for the Aakash tablet (about 400,000 in October) had surpassed the Indian tablet market which grossed about 250,000-300,000 tablets till last year. 

Even with a resistive touch and slow processor, Aakash has received about 1 lakh orders a day since online launch last month. In comparison, Apple sold about 10 lakh iPads in 28 days and 30 lakh in 80 days of its launch in April 2010. Currently, the cheapest model of iPad at Rs 29,500, is about 12 times costlier than Aakash. 

Aakash's maker Datawind is, however, strangulated with supply constraints, compared to Apple which managed smooth deliveries of the iPad. "We are not accepting cash for bookings currently, as we want to sort out supply issues," Tuli added. 

Datawind plans to put on sale online the next version of Aakash - Ubislate 7, priced at Rs 2999, by mid-January. The newer version will come with a slot for insertion of a SIM card, for access of internet by GPRS or 2G connection. The current version of the tablet can access internet via WiFi access. 

Besides, the newer version will be twice as fast with a 700 Mhz processor compared to a 366 Mhz processor in the current tablet. In another development, the government has extended the letter of credit to Datawind to supply the next lot of 90,000 tablets, even though IIT Rajasthan is yet to provide the test specifications for the next version, which it wants to procure for supply to students. The delay from the government's end is likely to land Aakash in the hands of commercial buyers before students for whom the low-cost tablet was meant for in the first place.




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It won't be pouring big bucks at B-schools this time

It won't be pouring big bucks at B-schools this time

Lessons in real life are often better than what's taught in the classrooms, even if they happen to be at the country's best B-schools. For students graduating in 2012, the real-time learning of managing their careers through economic volatility is the only consolation in what threatens to be a gloomy placement season across the Indian Institutes of Management (IIMs) and at the Indian School of Business.

At least four IIM directors, two student heads of placement cells, recruitment managers, head-hunters and students told ET they expect fewer recruiters, fewer jobs and lower salaries when the placement season kicks off next month. They are bracing for the worst, and gently lowering expectations to cushion the impact on hundreds of students aspiring for dream jobs. Placing 350-odd students sitting for the final placements would be a challenge, admits Professor Amit Dhiman, IIM-Calcutta's Placements Chairperson.

"I want to understand how far the slowdown will impact us this year," says 24-yearold Vishal Sharma, a final-year student at IIM-Ahmedabad, flipping through a business magazine for articles on the slowdown. Batchmate R Sridhar is in touch with the alumni to gauge hiring sentiments across companies. The class of 2012 has seen global economic volatility at its worst. They sat for their entrance exams in late 2009, when the world economy was still reeling under the impact of the previous year's financial crisis. They walked into the campus for the first day at school in June 2010, when the early hints of recovery were quite evident, at least in India. Those hopes have been belied as they prepare to pass out in a few months. "When we entered IIM-A in 2010, it was a good recovery year (after 2008 meltdown). But now when we are ready to enter the corporate world, there are fears of a double-dip recession," says Sridhar.

"The number of Day Zero finance jobs, including those from investment banks, are likely to go down," says Prof. Dhiman. "But not every sector is doing badly. Consulting companies have multiple job offers, as do IT, technology product companies." Adds Debashis Chatterjee, Director, IIM-Kozhikode: "The number of companies visiting and offers being made will be conservative."

FMCG and durables companies haven't dropped out. They are coming to the campus, but they will recruit fewer students. "Some have said they are coming just to maintain their relationship on campus. They will recruit only 1 or 2 people," says Dhiman. Some FMCG companies had hired 10-15 each last year. Pre-placement offers at IIM-Calcutta are down to 75 compared with 90-plus during the same time last year. Some Day 3, Day 4 companies have also dropped out.

Crore-Plus Salaries, Foreign Jobs Missing"In 2009, we were banking on domestic offers. But this time, besides global offers, even the domestic ones will be affected," adds Dhiman. IIM-Bangalore has been tempering the hopes of its students for some time now, not just this year. "The students are mature now and many of them come with work experience; they understand they may not get their dream job.

Not everything is rosy," says Sapna Agarwal, head of career development services at the institute. The placement committee and faculty are trying to point students to other sectors that are equally good. "We have increased the bouquet of desirable companies. We are trying to help students understand the goodness of other industries (which may not have necessarily been part of their first choice)," says Agarwal.

Adds Ashish Dongre, an IIM-B PGP student, "The faculty is helping students come to terms with sustained recession." The Rs, 1-crore (Rs. 10 million) salaries, foreign postings won't happen. "Instead of only Ivy League companies, middle and smaller companies are offering challenging and equally competitive jobs. It's right to bring down expectations," says Dongre.

At IIM-B, 370 students will line up for placements this year. "Most recruiters are reserving judgement on the number of people they are planning to hire," says Ashish Srivastava, placement committee member at XLRI-Jamshedpur. "Most will recruit less. If the market picks up later, they will hire more from the market." "Consulting is looking fine, but finance is taking a hit. We are not sure about marketing yet, but no one seems to have any major expansion plans," he adds. Earlier in November, companies were enthusiastic in picking first-year students for six-week internships, raising hopes of a strong hiring sentiment. But free interns are one thing; paid hires are another.

Campus insiders say many students have cancelled holidays from their year-end schedules. CVs are being reworked and social networks actively accessed for the latest buzz on hiring. At IIM-Ranchi, consumer-facing companies, including those in the FMCG and durables sector, have been affected and a couple of those that had originally planned to visit the campus have backed out.

"It would have been a problem if we had a larger batch, even 120 students. But since we are going into final placements with only 44 students, we are not worried," says MJ Xavier, IIM-Ranchi Director. Institutes placing a large number of students will surely face problems, he says. The average salary will come down this year. "Those at the top of the class will still get good offers, but the average bunch will probably get a little less," he says. How much less is the questions B-school grads are fretting about.

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Top B-Schools like IIMs, ISB expect fewer recruiters, fewer jobs and lower salaries this time

Lessons in real life are often better than what's taught in the classrooms, even if they happen to be at the country's best Bschools. For students graduating in 2012, the real-time learning of managing their careers through economic volatility is the only consolation in what threatens to be a gloomy placement season across the Indian Institutes of Management (IIMs) and at the Indian School of Business. 

At least four IIM directors, two student heads of placement cells, recruitment managers, head-hunters and students told ETthey expect fewer recruiters, fewer jobs and lower salaries when the placement season kicks off next month. 

They are bracing for the worst, and gently lowering expectations to cushion the impact on hundreds of students aspiring for dream jobs. Placing 350-odd students sitting for the final placements would be a challenge, admits Professor Amit Dhiman, IIM-Calcutta's placements chairperson. 

"I want to understand how far the slowdown will impact us this year," says 24-yearold Vishal Sharma, a final-year student at IIM-Ahmedabad, flipping through a business magazine for articles on the slowdown. Batchmate R Sridhar is in touch with the alumni to gauge hiring sentiments across companies. The class of 2012 has seen global economic volatility at its worst. They sat for their entrance exams in late 2009, when the world economy was still reeling under the impact of the previous year's financial crisis. 

They walked into the campus for the first day at school in June 2010, when the early hints of recovery were quite evident, at least in India. Those hopes have been belied as they prepare to pass out in a few months. "When we entered IIM-A in 2010, it was a good recovery year (after 2008 meltdown). But now when we are ready to enter the corporate world, there are fears of a double-dip recession," says Sridhar. 

"The number of Day Zero finance jobs, including those from investment banks, are likely to go down," says Prof Dhiman. "But not every sector is doing badly. Consulting companies have multiple job offers, as do IT, technology product companies." Adds Debashis Chatterjee, director, IIMKozhikode: "The number of companies visiting and offers being made will be conservative." 

FMCG and durables companies haven't dropped out. They are coming to the campus, but they will recruit fewer students. "Some have said they are coming just to maintain their relationship on campus. They will recruit only 1 or 2 people," says Dhiman. Some FMCG companies had hired 10-15 each last year. Pre-placement offers at IIM-C are down to 75 compared with 90-plus during the same time last year. Some Day 3, Day 4 companies have also dropped out. 

Crore-Plus Salaries, Foreign Jobs Missing 

"In 2009, we were banking on domestic offers. But this time, besides global offers, even the domestic ones will be affected," adds Dhiman. IIM-Bangalore has been tempering the hopes of its students for some time now, not just this year. "The students are mature now and many of them come with work experience; they understand they may not get their dream job. 




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Reliance Industries to invest over Rs 1,500 crore in TV18 Group

 Reliance Industries is embarking on a major diversification into the media and entertainment sector with the Mukesh Ambani firm agreeing to fund a transaction that will result in a sizeable stake for itself in a company controlling two of the industry's largest businesses, the Network18 Group and the Eenadu Group of channels run by the Hyderabad-based Ramoji Rao.

People close to the transaction, which has a number of stages, told ET that an RIL subsidiary will help the promoter group of Network18 fund the rights issues of its two listed entities, Network18 Media and Investments, which runs the portal moneycontrol.com, and TV18 Broadcast Ltd, which operates a number of business and general news channels, notably CNBC TV18 and CNN-IBN.

ET was not able to independently verify the amount to be invested by RIL, but people with direct knowledge of the transaction estimated it to be more than Rs 1,500 crore. The money from RIL will help Raghav Bahl, the promoter of the TV18 Group, subscribe to the rights issues of both the listed companies, Network18 and TV18. The full amount expected to be raised through the rights issues is estimated at over Rs 3,500 crore.

The boards of TV18 Broadcast and Network18 Media will meet on Tuesday to discuss plans for a rights issue. Raghav Bahl did not respond to an email questionnaire; a Reliance group spokesperson also remained silent, while B Sai Kumar, the CEO of Network18, declined comment.

Times NOW and ET NOW, owned by Bennett, Coleman & Co. Ltd, the publisher of this paper, compete with some of the television channels owned by Bahl. The strategic investment by RIL will be used by the Network18 Group to retire debt and eventually buy out RIL's stake in Eenadu, the pan-India vernacular language channels owned by Ramoji Rao.

RIL sources said they had invested Rs 2,600 crore in the Eenadu Group through a subsidiary giving it ownership of all businesses apart from its Telugu channel, in which it owns 49%. The transaction, once complete, will result in RIL recovering most of its investments in Eenadu. Messages and an email sent after business hours to the office of Ch Kiron, the managing director of Ushodaya Enterprises, the holding company of the Eenadu Group, did not elicit any response.

By its own admission before the Andhra Pradesh High Court, Reliance Industries has said it has invested Rs 2,600 crore in entities of Nimesh Kampani-led JM Financial Group, which in turn had invested in Ushodaya Enterprises. The AP High Court is hearing a petition alleging the investment was a payoff to N Chandrababu Naidu, the former chief minister of Andhra Pradesh, an allegation RIL has denied in its affidavit. RIL's deal with Bahl, likely to be announced on Tuesday, is expected to create a powerful national news and entertainment company spanning several regional languages as well as English and Hindi.

RIL to get Exclusive Rights to Content 

RIL, people close to the transaction said, is expected to hold an economic interest equivalent to a 30% stake in the promoter group of companies, with the original promoter Bahl owning 51% and all voting rights.

Further, RIL will have exclusive rights to content from 30 channels and web properties of the two media houses, which will lend a competitive edge to its broadband services to be rolled out later this year. 

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UGC approves new norms for release of funds to universities

Getting funds for Indian Universities without getting clearance from the institution's executive council and mandatory accreditation would become difficult from the next financial year.   India's higher education regulator, the University Grants Commission, has altered the funding scheme for universities from April 2012, which is also mean commencement of the 12th five year plan.

Instead of mandatory inspections, which often lead to delay in release of funds, the UGC will decide allocations for the entire plan period as soon as it receives the proposal cleared by the university's highest decision making body, the executive council.

If Physics department of Delhi University want money to upgrade its laboratory in the 12th plan, it will submit a proposal to the university, which will, then get it cleared first from board of studies, then academic council, followed by finance committee and finally, the executive council.

Once that is done, the UGC will allocate funds to the Physics department of  Delhi University as per its total money allocation for the 12th plan. No one from the UGC will visit the department to evaluate the proposal.

"Discontinuation of sending expert committee to assess financial requirements will help the universities to prepare perspective plans in a more democratic manner," UGC chairperson Ved Prakash said.

As per the existing practice of more than four decades, the university used to submit a finance proposal to UGC, which then deputed a team of experts to conduct an inspection. Depending on remarks of the inspection report, decision on release of money was taken.

In cases of adverse reports the UGC used to get the inspection conducted again, resulting in delay in release of funds. There were also allegations of corruption in the entire system.

The UGC, as per the decision last week, stipulated new norms to monitor of utilization of the money given through self disclosures and participation of students and faculty.

Another related decision with disbursement of funds was mandatory accreditation. No funds will be released without accreditation from a recognized agency such as National Assessment and Accreditation Council (NAAC).

"Accreditation has been made must," Prakash said.