1.Grocery, apparel to be favourites for
MNC retailers: Deloitte
Kunal Rao
14th January 2013
·
The report by
consultancy firm Deloitte states
that , various policy conditions for foreign
direct investment (FDI) in multi-brand retail makes mass grocery and apparel
the two most favourable segments to invest in.
·
Foreign retailers can enter
the country by forming a new joint venture company, or the foreign investor may
also consider acquiring 51 percent stakes in the existing business set-up of
the potential local joint venture partner.
·
To meet the policy
guidelines on sourcing and to have better margins, foreign retailers will have
to cultivate relationships with local manufacturers to drive strong private
label brand.
·
Multi-brand retail in
speciality stores such as consumer electronics, footwear, furniture and
furnishing are expected to expand and mature in the next few years.
·
However, the policy
condition on sourcing will continue to be a major bottleneck for FDI in many of
these segments.
2.Spice
Jet, Indigo Cut Fare in lean Season, fuel price war
Ruchika Shrivastava
12th January 2013
·
Spice jet on Thursday
10 Jan announced that there fare will be Rs.2013 for tickets across roots.
·
Indigo the largest
passenger carrier will announce same
scheme but only for the selected roots.eg Delhi –Mumbai
·
Jet airways –started
winter sale for of 8% on all the tickets but it didn’t have an impact.
·
The base price was cut
to re.1
·
The time period
provided by Spice Jet to book ticket was 11th January and 13th
January
·
ANALYSIS:
·
These strategies are
followed mainly to focus on the lean season i.e February to April
·
The impact of jet
airways scheme was low as there was no overall impact on the fare.
·
Industry experts expect
this scheme will be in vogue for a longer period. And may even trigger a new
sale season for tickets.
·
Now since the airline
industry is highly competitive to increase the influx of passengers these
strategies are applied
3.Tata
group won’t get into aviation business: Ratan Tata
By Manjiri Durge
- A pioneer in civil aviation, the Tata group is unlikely to get into the sector because of “destructive competition”, revealed Ratan Tata.
- Recalling the group’s proposal for a tie up with Singapore International Airlines (SIA) for a domestic carrier in India in the mid-1990s, the Tata patriarch pointed out, “it is a different sector today than it was at that time.“It is somewhat like telecom. It is proliferated by many operators some of them in financial trouble. I would hesitate to go into the sector today in the sense that the chances are that you would have a great deal of competition which would be unhealthy competition.”
- Tata recalled that after taking over as Chairman in 1991, he had drawn up a strategic plan in which he had seen aerospace and defence a new area for the private sector to enter in a big way.
- According to him, “For several years, the fact that we had sanctions of various sorts on us, gave us no access to technology and that in itself was a challenge. However, that challenge was never thrown to the private sector which was a “bit of a disappointment to me”, Tata said.
- Vested interests in the public sector and government laboratories do not give these areas to the private sector. Therefore, while these areas have been opened up, the private sector’s involvement is still very limited.
4.Launch of Toyota’s Fortuner
By Balaji Kalyanaraman
Toyota Kirloskar motor announced the launch of ‘Fortuner’.Some
of the highlights are
- Sports utility vehicle
- Five speed automatic transmission
- Strength of unmatched road presence and luxury
- Drive quality and comfort
It is priced between 22.33 and 22.93 lakh (ex-showroom) Delhi.
Also there is production of the variant TRD
Sportivo that was introduced as a limited edition in October last year and is priced at Rs 21.97 lakh. The bookings will
open starting January 18, 2013. The Fortuner was launched in August 2009 and
TKM has sold over 41,000 units
5.Tata Motors global sales fall in
December
By Arpit
Aggarwal
- This article talks about Global fall in sales figure of Tata Motors in each segment for the month of December
- Company has faced a decline of 13.88% over the same period in the previous year.
- The company saw a fall of 23.16% in passenger vehicles segment.
- Sales of commercial vehicle were down by 3.36%.
- Sales of luxury sedans of Jaguar brand stood at 5,444 units. Land Rover sales were at 26,838 units
6. FDI in retail
would promote instability: Nobel laureate Joseph Stiglitz
By Anirudh Seshadri 16/1/2013
·
American economist and Nobel laureate Joseph
Stiglitz said that FDI in retail would cause instability due to exploitative
and corrupt practices adopted by MNCs to monopolise retail in any country
·
He said that some of the MNCs were known for
their poor labour relations, workers' exploitation, discrimination and bribery, referencing the widespread agitation by the
people of Mexico against the retail giant Wal-Mart recently.
·
He said that the economic crisis last decade was due
to US government relaxing its control or guidance of the market forces as a
result the sub-prime crisis was allowed to develop as a major problem that had
cascading effect on the entire economy.
·
He gave the example of Scandinavian countries
and Germany as model economies in which the states have played pivotal role in
regulating their economies for maximum benefit to their population and
withstanding global turmoils.
·
On the contrary, the economies of some East
Asian countries collapsed in the last decade after the respective governments
allowed the market forces to dominate the field
·
"The states' role in shaping policies or
regulating markets have been time tested mantra and it will remain so," he
said.
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