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11 Pages 21st

JANUARY - 27th

JANUARY 2011 www.xedintellect.com

BUSINESS NEWS

ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8

INTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

NEWS DIGEST…

IN BRIEF

PERSONALITIES OF THE W

COMPILED BY

INSURANCE SECTOR

IN INDIA

BSE SENSEX : 18,814.65

Gold/10gms : Rs. 19,646

RS/$ : 45.57

ECONOMICINDICATORS

TCS becomes country's

2nd largest firm in

terms of M-cap

COVER STORY

INTERNATIONAL NEWS

GM's China sales pass

US for first time in

history

MISCELLANEOUS NEWS

Aamir a part of 61st

Berlin Film Festival

jury

XED NEWSLETTER… a weekly news bulletin

( as on 27.01.2

BLACK MONEY



TOP 10 HEADLINES OF THE WEEK

1. TCS becomes country's 2nd largest firm in terms of M-cap.2. India is most over-regulated country in the world: Survey.3. Subbarao may hike rates by 50 basis pts.4. Ford India to export Figo to 48 countries this year.5. Mahindras buy stake in East India Company.6. India’s MRO industry to be worth $1.5 billion by 2020. 7. Larry Page to take over as Google CEO-Reuters.8. GM's China sales pass US for first time in history.

9. Aamir a part of 61st Berlin Film Festival jury.10. IT raids residences of Katrina Kaif and Priyanka Chopra.

ECONOMIC INDICATORS

Crude oil: A looming crisis

Barrel=159 liters Kbpd=1000 barrels per day

Stock Market Indices as on 27th Jan’11 Values

BSE SENSEX 18,814 Crude Oil Price $85.20

Current Market Rates as on 27th Jan’11 Values

Rupee / US Dollar 45.57

Gold prices/10 gram 19,646



COVER STORY: BLACK MONEY BLACK HOLE

Why the sudden interest in Black Money? Recession does wonderful things. Common wisdom in 2008 was thatthe recession and currency crisis has been aggravated by the flight of capital to taxhavens. The Swiss government was arm-twisted by US to shed its banking secrecy andshare with them the bank data of 4,450 tax evading Americans. On 19 Feb, 2010 UBSagreed to pay the US $780 million and give details of assets amounting to $20 billionand names of 250 clients. The US is asking for details of 52,000 clients. Compare that$20 billion with the $1,400 billion Advani hopes to bring back.

The issue of getting back our black money sprung up again after WikiLeaks acquired aCD containing a list of 20,000 individuals with accounts in Swiss banks, including someIndian names. LK Advani urged Indians on Republic Day to join a countrywide campaign

to bring back black money stashed in foreign banks.

Will the money ever come back? Probably no. Officials traced $6billion madeby Pune based hawala operator Hasan Ali Khan to a UBS Bank account inSwitzerland, but failed to get their hands on the money. India and Switzerlandsigned a pact amending the existing double taxation avoidance agreement, thatwill make it easier for New Delhi to gain access to information on suspect bankaccounts. The agreement will be ratified in 2012 and will be applicable only onfunds deposited in Swiss Banks after that date. Anyway Switzerland is not theonly tax haven there are many others.

Last year, Germany, under a treaty with India, had given names of 26 Indians who had opened secret accounts in theLGT Bank of Liechtenstein. The Government was criticized from the Supreme Court for not taking any action againstthe people involved. However, in the absence of a bilateral treaty with Liechtenstein, India cannot seek anyadministrative assistance or details on Indian clients of the LGT Bank.

What are the causes of black money? It all started from a beast called the Licence raj in Indiassocialist days where one needed a licence to do anything. Anything produced over licenced capacitywent into the black market. Insane tax rates are a major incentive to hide incomes. India has seenpersonal taxes as high as 97.5% tax (not kidding, this was in 1973, Indira Gandhi days). Strict customsrestrictions and draconian foreign exchange regulations meant that foreign repatriations found their wayinto the market via illegal money transfers called hawala. All illegal activities and corruption generateblack money. This money eventually finds its way into real estate.

Some estimates of Black money: It is estimated that at least $ 5 trillion

have been shifted out of poorer countries to the West since the mid-1970.Estimating black money has been a long time preoccupation of economists & tax collectors in India. A BJP Task Force estimated that Indian wealth parkedin foreign tax havens could be anywhere between 25 lakh cr to 70 lakh cr.

According to the data provided by the Swiss Banking Association report 2008,India at $1891 billion has more black money than rest of the world combined.Russia has $610 billion, China $213 billion and UK $210 billion. The amountof illegal money deposited by Indians rose by 440 billion dollars from 2006 to2008, which is around twenty lakh crores!!!

What is apna Govt is doing to tackle the black money problem? Indiahas made 10 new Tax Information Exchange Agreements with Bahamas,Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, Saint Kitts & Nevis, Argentina and

Marshall Islands out of 22 popular tax havens. It is now a member of Eurasian Group which is involved in enforcingglobal standards on anti-money laundering and combating terror financing in Europe and Asia. Authorities have

detected undisclosed income of about Rs 15,000 cr in last 18 months,collected international taxes of Rs 34,601 cr, and detected mispricing of Rs33,784 cr, which has prevented shifting of that money outside India. Theseproactive steps led to additional collection of taxes of Rs 34,601 cr. Thegovernment has seized over Rs 1,764 cr of unaccounted income in the lastthree financial years, with sectors like real estate, manufacturing and mininggenerating the most of it.

What an idea Sirji!!! As black money can‘t be put in banks. A simple way oreducing Black money problem is by stopping the printing of notes with highdenomination. Hiding and moving large bundles acts as a disincentive.



PERSONALITIES OF THE WEEK

ANIL DHIRUBHAI AMBANI-THE FINANCIAL WIZARD

Anil Dhirubhai Ambani is the chairman of Reliance Anil Dhirubhai Ambani Group,

one of the largest private conglomerates. As of 2010, he is the fourth richest

Indian with a personal wealth of $13.7 billion, behind Mukesh Ambani, Lakshmi

Mittal and Azim Premji.

Career: Anil joined Reliance; the company founded by his late father DhirubhaiAmbani, in 1983 as Co-Chief Executive Officer and led India's first forays into

overseas capital markets. After Dhirubhai‘s death in July 2002 Anil and Mukesh

Ambani started having differences and on June 18, 2005, Kokilaben Ambani

announced the settlement through a press release. Mukesh was given the

responsibility for Reliance Industries and IPCL while Anil was bestowed with the

responsibility of Reliance Infocomm, Reliance Energy and Reliance Capital.

Personal Life: He is married to Bollywood actress Tina Munim and has two sons

Anmol and Anshul. He wakes up daily at 4:00am, checks the news and then goes

for a run. He takes part in the Mumbai Marathon races. Anil Ambani is also the fittest CEO.

Reliance Big Entertainment: One of his major achievements in the entertainment industry is the takeover of Adlabs

and the recently announced joint venture worth US$ 825 million with Steven Spielberg.

Controversies: Anil had been embroiled in a dispute with his brother, Mukesh Ambani, over the supply of gas from

the latter's KG basin. SEBI had barred Anil from investing in publicly-listed securities until the end of 2012. Reliance

Infra and RNRL on Jan 14, 2011 settled the SEBI probe into possible violation of securities market norms by them fo

a collective settlement charge of Rs 50 crore.

Accolades: Anil was adjudged the 'MTV Youth Icon of the Year' in September 2003. According to the Forbes‘ 2009 list

of the world‘s billionaires, Anil Ambani is at the 34th position with a net worth of $ 10.1 Billion. In June 2004, Anil was

elected as an Independent Member of the Rajya Sabha - Upper House, Parliament of India with the support of the

Samajwadi Party but he resigned voluntarily on March 25, 2006.

ABHINAV BINDRA-THE SHOOTING STAR Abhinav Bindra from Mohali is the brightest star among a new breed of talented

Indian shooters. By winning the gold in the 10 m Air Rifle event at the 2008

Beijing Olympic Games, he became the first Indian to win an individual gold

medal at the Olympic Games and India's first gold medal since 1980. Abhinav

was born in an affluent Sikh Punjabi family. His parents, Dr. Manjit Singh, had

an indoor shooting range installed at their home in Patiala.

Notable international performance: At 15, Bindra became the youngest

participant in the 1998 Commonwealth Games. His fame to honour though came

when he won a Bronze in the 2001 Munich World Cup with a new junior world

record score of 597/600. On July 24, 2006, Bindra became the first Indian

shooter to win a World Championship gold in Zagreb. At the 2006 MelbourneCommonwealth Games, he won the Gold in the Pairs event and the Bronze in

the Singles event. At the 2008 Beijing Olympics, Abhinav Bindra won the gold

for the Men's 10m Air Rifle final after shooting a total of 700.5.

Feathers in the Cap: When the 2010 Commonwealth Games was held in New-Delhi, Bindra got the honour of being

the Indian contingent's flag-bearer at the opening ceremony. He also got the honour of taking the athletes‘ oath on

behalf of the 6,700 participants from 71 countries and territories on that occasion. He received the Arjuna Award at

the young age of 17 and has been the youngest recipient of the Rajiv Gandhi Khel Ratna Awards – the highes

sporting honor in the country at 18 years. Abhinav has also been decorated with the Padma Bhushan, the third

highest civilian honor, in 2009 after his historic Gold Medal win at the Beijing Olympics.



BUSINESS NEWS

1. TCS becomes country's 2nd largest firm in terms of M-cap-PTI Jan23

Driven by smart December quarter earnings, IT major Tata Consultancy Services has becomethe country's second largest firm in terms of market valuation, lagging behind corporateleader Reliance Industries. TCS, which was the top gainer among the country's 10 mostvaluable companies in the last week, saw its valuation surging by Rs 18,378.11 crore to Rs2,37,330 crore in the week.

State-run ONGC slipped to the third position after its valuation dipped by Rs 15,763.47 crore

-- the most among top 10 companies -- to Rs 2,36,355.83 crore during the week. Thecountry's largest software firm, TCS, last week posted 29.93 per cent growth in consolidatednet profit at Rs 2,369.83 crore for the October-December quarter.

2. India is most over-regulated country in the world: Survey-ET Jan 27India has topped a list of the most "over-regulated countries in the world" in a survey onAsian business and politics by Hong Kong-based Political and Economic Risk ConsultancyLtd (PERC). The survey used responses from American executives about regulatoryconditions in the United States to provide a benchmark against which to assess the Asianscores.

India was rated worst in terms of over-regulation, scoring 9.16 points out of 10, followedby China with 9.04 points, Japan in third position with 3.28 points and the US at fourthwith 1.51 points. Hong Kong received the best score in the survey of 0.98 point, while

Singapore was second with 1.08 points, according to the survey done in the last quarterof 2010, based on responses from 1,370 executives. Procedures for something as simple as getting a tourist visa weremore cumbersome in India than was typical elsewhere, it pointed out. It also cited specific examples from the WorldBank's Doing Business Survey of why India's regulatory system deserves to be graded as poorly as it was. Regulationsin the country were frequently not enforced, which raised the question of why they were on the books at all, noted thesurvey.

3. Subbarao may hike rates by 50 basis pts-ET Jan 24Reserve Bank of India Governor Duvvuri Subbarao may choose to take the bazooka out ofhis arsenal on Tuesday an unconventional 50-basis point increase in policy rates totame the inflation monster that has become a national rant. Bank of America Merrill Lynchand rating company CARE are among those who bet that Subbarao may choose to shockand awe the market when most are forecasting a 25-basis point rise, but whispering abigger dose. A basis point is 0.01 percentage point.

Factors beyond the central bank‘s control such as unseasonal rains, logistics problems,rising incomes in towns and villages, lowerfarm output and soaring global commodityprices may all have fuelled prices, but everyone now is turning to the trusted one to save

the nation from a potential crisis.

4. Ford India to export Figo to 48 countries this year- ZeeBiz.com Jan22Ford India today said it would be exporting Figo to at least 48 countries, includng SouthAmerica, Africa and Middle East, this year, a top official on Saturday said. Last year, Fordhad exported about 7000 units of the new model to South Africa as there was gooddemand. The company has started exporting to Nepal and this year it would be exportingFigo to 48 countries. Ford India, a subsidiary of Ford Motor company, was eyeing a 50 percent growth this year nationally in its sales totally and was targetting to sell one lakh pluscars in 2011, he said. Last year it had sold about 80,000 units.

5. Mahindras buy stake in East India Company-ET Jan26

Mahindra Partners, the private equity arm of the Mahindra group, bought the stake froman Indian-origin businessman whose ambition is to resurrect what was once an empire-building multinational mega corporation and turn it into a well-known seller of luxurygoods. Mehta bought the once-legendary enterprise in 2005 and relaunched it in 2010 asa luxury brand selling high-end food products. The first store was opened in London'supscale Mayfair area.

The Mahindra group began its existence in undivided India in 1945 as Mahindra & Mohammed. It was founded by thebrothers J C Mahindra and K C Mahindra and Ghulam Mohammed , a Pashtun who was born in Lahore. After partition,Mohammed migrated to Pakistan and became that country's first finance minister and the company he helped createbecame Mahindra & Mahindra.



6. India’s MRO industry to be worth $1.5 billion by 2020- ET Jan 27India is poised to become the fastest growing market in the world for aircraft maintenance,repair and overhaul (MRO) services over the next decade tripling its worth to $1.5 billion, asairline companies buy more planes to cater for the country‘s rapidly growing traffic.

Experts estimate that MRO revenues, a direct function of the number of aircraft, aregrowing at a compounded annual rate of 15% in India, which makes this space attractive.The MRO space is a $45-billion market globally, of which India constitutes only 1%. But, according to globaconsultancy firm KPMG, over the next decade India is going to be the leader in this space, which is currently splitbetween North America and Western Europe, because of higher economic growth rate that the country is going to

witness. In that sense, the clear benefits for domestic airlines in availing MRO services offered in India include costadvantage and faster turnaround time.

7. Vodafone, Essar feud heats up- Afaqs Jan 21The dispute between the two came into the open after Essar proposed a reverse merger ofgroup company Essar Telecom Holdings (ETHPL) into listed entity Indian Securities (ISL). TheEssar group controls 75 per cent of ISL‘s equity. The amalgamation is awaiting clearance by the

Madras High Court. In a strongly-worded letter to the Securities & Exchange Board of India(Sebi) dated January 18, Vodafone International Holdings requested the regulator to ―conductan investigation‖ into the nature and effect of the amalgamation and ―possible violation of theinsider-trading regulations ―.

However, in its annual report, ISL disclosed that it had issued 200,000 compulsorily convertible preference (CCP)shares in March 2010 at a face value of Rs 2,000 each to two FIIs for an aggregate subscription of Rs 360 crore. This

is much higher than the total market cap of the company at that time. Vodafone has attacked the merger scheme onvarious other grounds, which include non-disclosure to ISL shareholders.

8. India needs solution to $1.5 trillion puzzle-ET Jan 25India needs a solution to a $1.5 trillion-plus puzzle. That's what it will need to invest ininfrastructure over the next decade if it is to have any hope of achieving its aspiration of 10percent GDP growth. The government and banks, India's traditional sources of infrastructurefunding, won't be able to carry that load on their own. Financial liberalization, something thecountry has hitherto shied away from, could help fill the gap.

Poor infrastructure is one of the main things holding India back. Poor logistics cause wasteequivalent to 5 percent of GDP, according to McKinsey. Roads such as the "goldenquadrilateral", joining the country's biggest four conurbations, are being laid down, but notrapidly enough. There are chronic electricity shortages in most states. And then there are the heaving cities, suffering

from poor sanitation and virtually bereft of mass public transport. With India's public debt at over 60 percent of GDPand a current account deficit touching 4 percent, plans to put up half of that from public finances seem less thanideal.

9. NREGS could see a 60% increase in its outlay-BS Jan 25 The government‘s biggest welfare programme could see an almost 60 per cent increase infunding. The forthcoming Budget is likely to make a provision of Rs 64,000 crore for theMahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2011-12,against Rs 40,100 crore in the current fiscal.

The forthcoming Budget is likely to make a provision of Rs 64,000 crore for the MahatmaGandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2011-12, against Rs40,100 crore in the current fiscal. The programme is aimed at enhancing livelihood security inrural areas by providing 100 days of guaranteed wage employment every financial year, to

every rural household whose adult members volunteer to do unskilled manual work.

10. M&M, Sundance tie up to promote Indian cinema-Press Trust Of India Jan 21Mahindra & Mahindra today said it had joined hands with the Sundance Institute, a non-profitorganisation set up by noted Hollywood actor, Robert Redford to promote Indian talent in theworld cinema arena. The two parties have signed a multi-faceted agreement that showcasesthe commitment to support independent cinema around the world, Mahindra & Mahindra said ina statement. Commenting on the collaboration, M&M Vice-Chairman and Managing DirectorAnand Mahindra said: ―Our intention is to nurture as well as hone the talents of an exciting newgeneration of Indian filmmakers. The guidance and knowhow of Sundance shall be extremelyvaluable to us in our initiatives.‖ Starting from spring 2012, the inaugural Mumbai MantraSundance Institute Screenwriters Lab will provide an opportunity for six to eight film makersfrom India to develop their works.



11. Samsung India posts Rs 15,935cr turnover in 2010, sets growth target of 40% for 2011- IANS Jan 20The Indian arm of Korean consumer durable major Samsung posted a turnover of $3.5 billionduring 2010 and has set a growth target of 40 percent this year, a senior company officialsaid here Thursday. Samsung India deputy managing director Ravinder Zutshi told reportersthat the company achieved 58 percent growth in 2010 compared to the 2009 figure. He saidthe $3.5 billion turnover last year covers all three segments of consumer electronics, mobilesand information technology.

The firm has two manufacturing facilities at Sriperambudur near Chennai and at Noida in UttarPradesh for manufacturing flat panels, refrigerators, air conditioners and washing machines. It

also unveiled a new range of split air conditioners 'Invincia' and 'Purista' boasting of superiotechnology and efficient power consumption.

12. Mahindra to race against global players at MotoGP championship- BS Jan 22 The $7.1-billion Mahindra Group is the second entrant in the motorcycle racingchampionship from India after Bangalore-based Ten10 Racing declared their entrythrough a tie-up with the San Marino-based WTR Team. M&M participation in the race isaimed at making the brand name globally recognized. A group company, Mahindra TwoWheelers, recently marked its entry into the motorcycle category with the launch of a110cc bike. The motorcycle has been designed and developed by the Italian two-wheelerspecialist.

M&M has decided to go ahead with non-Indian riders for the race. Liquor baron Vijay Mallya has been a part of theFormula One World Championship for the past few years through his racing team Force India. While India will hold its

maiden Formula 1 race in October this year in New Delhi, the MotoGP races are to be held at 18 different venuesglobally.

13. Wipro's new structure to have mini CEOs heading different verticals-ET Jan 24Software firm Wipro will shed departments and collapse its sprawling, complex internastructure into a few focused units as part of new CEO TK Kurien‘s plan to grow salesand grab market share. Wipro, which shocked Corporate India last week by removingits joint CEOs and appointing Kurien, is attempting to fend off aggressive rivals such asCognizant and also compete better with domestic rivals Tata Consultancy Services andInfosys. Its traditional model was built around several departments targeting the samecustomers for different kinds of business.

By doing this, Wipro is hoping to empower its top leaders to take critical decisions andrisks without waiting for long approvals. The new Wipro structure will have ‗mini CEOs

heading different vertical businesses with increased risk-taking powers and decision-making.

14. Indigo promoters will launch Agera supercar-BS Jan 23Swedish super sports car maker Koenigsegg Automotive AB has joined hands with RahulBhatia-promoted InterGlobe Enterprises to launch a range of highend, high-performancemodels in India. Koenigsegg, known for its big engines, unfamiliar designs and stylingunder its own brand, will launch the Agera, which carries a sticker price of `9.6-10 crore,next month in Hyderabad.

The supercar maker‘s ride into India will be managed by Delhi-based InterGlobeEnterprise, which also promotes lowcost carrier IndiGo under the InterGlobe Aviation banner. The Koenigsegg Agerawhich sports a 4.7-litre aluminium V8 engine capable of producing peak power of 850 bhp, is one of the fastestproduction cars in the world. To better understand the power of the Agera, it is more than 18 times that of the Marut

Alto (800cc), Indias largest selling model.

15. Now, get refund on all air tickets- TNN Jan 22

Booked a non-refundable ticket and didn`t fly? You won`t lose your money any longerPassengers can now cancel their non-refundable air tickets until two hours beforedeparture and get a refund of taxes, fuel surcharge, passenger service fee and userdevelopment fee. This means a flyer stands to get back Rs 1,300 to Rs 3,800, dependingon the distance and the fare.

The decision, a long-standing demand of flyers, was made after talks between airlinesand the Civil Aviation Economic Advisory Council last month. The working group alsodiscussed the need to address high aviation turbine fuel taxes, airport charges,

aeronautical navigational service charges and other costs that would increase fare levels.



16. TCS Infosys steals the show, Wipro Lags- BS Jan22Despite lesser working days in the third quarter (October -December), India‘s top two information technology (IT) servicescompanies Tata Consultancy Services (TCS) and InfosysTechnologies delivered robust numbers. But Bangalore-basedWipro Technologies, the third-largest IT company, faltered withsubdued volume growth and flat margins.

Net profit of TCS was up by 30 per cent on a year-on-year basis,while revenue grew by 26.3 per cent. Infosys posted a net profit of

Rs 1,780 crore, up by 14.2 per cent, while revenue increased 23.8per cent.

17. Premji Shows CEOs The Door KURIEN STEPS IN AS CEO- ET Jan 22Wipro chairman Azim Premji moved with unprecedented aggression on Friday, removing its two topofficials as India‘s third-largest software exporter tries to stave off challenge from a fast-rising rivawhile closing a widening gap with market leaders TCS and Infosys. Premji appointed TK Kurien, acompany veteran, as CEO of Wipro‘s IT division and junked the joint-CEO model in which thecompany had been led by Suresh Vaswani and Girish Paranjpe, the sidelined officials.

The problem, according to billionaire founder chairman Azim Premji, was the structure and hadnothing to do with the capabilities of Vaswani and Paranjpe. ―The fact that the joint-CEO model isnow being replaced by one CEO under TK Kurien is because we found that it was the inappropriatemodel. We find that the market opportunity now is again exploding and we need a faster, leane

structure and different leadership is required to be fully in a position for building leadership in thisrevised structure, which is why we have reconfigured the organisation in terms of a major organisational change,‖Premji said.

18. Mahindra's plane to be 20% cheaper than Cessna-BS Jan 22 Mahindra & Mahindra, the tractors to information technology conglomerate, will launch itsfirst indigenously built aircraft before March, at a price at least 20 per cent cheaper thanan equivalent aircraft of Cessna, the market leader, said a senior executive of thecompany. Mahindra Aerospace, arm of Mahindra Engineering Services, will take theaircraft on its maiden flight perhaps next month. The Mumbai-based company has beendeveloping the small aircraft in partnership with the Bangalore-based National AerospaceLaboratories (NAL).

Mahindra Aerospace first indigenously-built aircraft is a 5-seater and cost 20% less than Cessnas (Rs2.4cr) version o

their small plane specially for the Indian market and a larger version which could seat eight to 10 passenger.

19. Aegon Religare launches KILB II with a teaser campaign-Afaqs! Jan 20 Insurance brand Aegon Religare, which had launched a catchy campaign urging people toguard themselves against the ills of under insurance or 'Kam Insurance Lene Ki Bimari(KILB) in 2008, has now released a sequel about inadequate insurance cover. The sequefeatures actor Irrfan Khan once again, teasing people and pointing out that they areaccustomed to inadequacy.

The teaser campaigns ran across media before the revealer, later exposed on January16. The first teaser television commercial was a 10-second one in which Khan played ashoe salesman, offering his customer a very small pair of shoes, while the second one

showed Khan play a waiter in a fancy restaurant, providing a very small napkin to a customer.

20. Eno uses laughter as medicine-Afaqs! Jan 20In order to convey the core brand proposition of quick relief from acidity, a co-branded TVC was created along with the recent release Yamla Pagla Deewana.The leading OTC antacid brand from GlaxoSmithKline, Eno has associated withthe movie, Yamla Pagla Deewana, featuring the three Deols (Dharmendra,Sunny Deol and Bobby Deol).

The aim of the alliance is to reach Eno's markets in Northern and Western India. Blue Bang Media and Entertainment,a specialist outfit in movie marketing and branding, has executed this alliance on behalf of Eno. Since the moviefocusses on the subject of marriage and celebrations, Eno's co-branded campaign aims to create a direct co-relationbetween the brand and quick relief from acidity, which is often the result of such celebrations, with large amounts ofspicy food being consumed. A 100-year-old global brand, Eno enjoys a presence in 34 countries, with India being itssecond largest market after Brazil. Eno is available in a variety of flavours, in both sachets and bottles.



INTERNATIONAL NEWS

21. Larry Page to take over as Google CEO-Reuters Jan 22Google Inc co-founder Larry Page will take over as CEO from Eric Schmidt, a surprise moveto make the company more nimble at a time when competition heats up with fast-growingrivals like Facebook. Page‘s assumption of day-to-day operations marks a return to Google‘stechnological roots, 13 years after he and fellow Stanford University student Sergey Brinfounded what has become the world‘s number one internet search engine with $29 billion ayear in revenue.

Schmidt, who became CEO in 2001 to bring more management experience to a then-fledgling company, will assumethe role of executive chairman, focusing on deals and government outreach, among other things. Brin will concentrateon strategic projects. News of the change came as Google reported a 29 per cent surge in both net profit and netrevenue that beat forecasts.

22. GM's China sales pass US for first time in history -ET Jan 24General Motors says it sold more cars and trucks in China last year than it did in the U.S. forthe first time in its 102-year history. GM says sales in fast-growing China were up 28 percent,but rose only 6.3 percent in the U.S. GM's sales were up 12 percent worldwide as it recoveredfrom a 2009 bankruptcy. Despite GM's growth, Toyota held onto the title of world's largestautomaker. The Japanese company reported 8.42 million sales worldwide last year. That's30,000 more than GM's 8.39 million.

GM expects growth to continue. Toyota Motor Corp kept its spot at the top of the global sales ranking in 2010,

outselling General Motors Co by less than 30,000 units as the U.S. rival achieved faster growth in the world's twobiggest markets. GM, which lost the crown in 2008 for the first time in nearly eight decades, said its sales climbed12.2 per cent to 8.390 million vehicles last year, with deliveries in China and the United States, the top two markets,both exceeding 2 million.

23. US President Barack Obama asked Americans to Innovate to face India, China challenge-ET Jan 26 Citing once again the growing challenge from emerging powers like India andChina, US President Barack Obama asked Americans to unleash their creativespirits and innovate to "win the future" in a rapidly shifting global economy.

―The competition for jobs is real. But this shouldn't discourage us. It shouldchallenge us," he said describing it as "our generation's Sputnik moment" - areference to the 1950s space race against the Soviet Union after its launch of thefirst artificial satellite. "Already, our exports are up," he said noting the US

recently "signed agreements with India and China that will support more than250,000 jobs in the United States." Turning to foreign policy issues, Obama again cited "new partnerships with nationslike India" to show "how we are shaping a world that favors peace and prosperity."

24. Over a million immigrants land US jobs in 2008-10, many illegally - Reuters Jan 20Over the past two years, as US unemployment remained near double-digit levels and theeconomy shed jobs in the wake of the financial crisis, over a million foreign-born arrivals toAmerica found work, many illegally. With a national unemployment rate of 9.4 percent,domestic job creation is at the top of President Barack Obama's agenda and such findingscould add to calls to tighten up on illegal immigration.

There are a number of programs by which the United States lets foreign workers into thecountry to fill gaps in its domestic labor market but employer groups complain little is done in this area for legal,unskilled workers. Some of those who entered the country since 2008 were employed in sectors that generally require

a high level of skills and education, such as finance and insurance.

25. China already world's biggest economy?- TNN Jan 21Did China overtake the US as the world's biggest economy in 2010? New numbers fothe gross domestic product of different countries at purchasing power parity seem tosuggest so. They also suggest India's economy is much bigger than previouslythought. While market exchange rates traditionally formed the basis for comparisonof GDP across countries, this method increasingly came under criticism as it did nottake into account the differential costs of good and services in countries at differentlevels of development. As a result, the idea of purchasing power parity, in which theprices of a basket of good and services form the basis of comparison, came into

being. This $14.8 trillion figure exceeds the US GDP of $14.6 trillion, Subramanian said. So by Subramanian'scalculations, China's GDP at purchasing power parity surpassed that of US in 2010.



MISCELLANEOUS NEWS

26. Aamir a part of 61st Berlin Film Festival jury- Yahoo News Jan23

According to latest tabloids, after showing his charismatic acting and directing skillsin Bollywood movies, the B-town Mr. perfectionist Aamir Khan will now be seen deliveringsome perfect judgments at the 61st Berlin Film Festival to be held next month. Apparently,the protagonist of ‗Dhobi Ghat‘ is going to be one among the seven-member board of adjudicators, headed by the Italian-American actress Isabella Rossellini.

It‘s learnt that Aamir will be granted the privilege to choose the victors, who will be honored

with the coveted Golden and Silver Bear awards at the festival. Buzz has it that Endemol, the producers of the mostpopular and bankable reality show ‗Bigg Boss‘, are seeking to zero in Aamir for hosting the forthcoming season of‗Bigg Boss'. Apparently, the ‗Dabangg‘ star had hosted the fourth season of the reality show and was looking forwardto host the fifth season as well.

27. IT raids residences of Katrina Kaif and Priyanka Chopra-NDTV Jan 24

Income Tax sleuths swooped on the office and residence of Bollywood megastars Katrina Kaif andPriyanka Chopra Monday morning in connection with alleged tax evasion cases, an official saidThe raids started around 7.30 a.m. simultaneously at 12 sites, including the residences of the twoactresses in the western suburbs. Priyanka's home in Versova, Andheri West, was raided.

Also raided were the homes of their secretaries, their respective office premises and otherlocations, the official said. The IT department is investigating whether the two actresses havepaid taxes proportionate to their known sources of income during the past year. Both Katrina and

Priyanka are high ranking Bollywood actresses who work with top stars and leading film bannersbesides endorsing top brands and participating in the major stage shows in India and abroad.

28. Coke ropes in Sachin as its 'happiness ambassador'-ET Jan 24Little Master will now pour in little drops of joy for Coca-Cola. The US-based beverage makeron Sunday roped in Sachin Tendulkar as its ‗happiness ambassador‘. Sachin, who endorsedPepsiCo for close to a decade, was dropped two years back on the grounds that he did not fitin Pepsi‘s ‗youngistan‘ campaign theme. Tendulkar, whose endorsements are managed bysports management firm World Sport Group, charges about $1 million per year for every deal.

The Master Blaster endorses 14 brands, including Adidas, luxury Swiss watch maker AudemarsPiguet, Canon, ITC , Aviva Life Insurance , Royal Bank of Scotland and appliances major Toshiba. Coca-Cola hasanother Indian cricketer , Gautam Gambhir, among its list of endorsers. Its rival, PepsiCo, has already released ahigh-visibility campaign featuring its star ambassador, Dhoni.

29. Toyota recalls nearly 1.7 million vehicles- ET Jan 26Toyota is recalling nearly 1.7 million vehicles around the world for various defectsthat may cause fuel leakage, the latest in quality control woes for the Japaneseautomaker. Toyota Motor Corp. said Wednesday it was recalling a wide range ofmodels, including the IS and GS Lexus luxury models in North America and theAvensis sedan and station wagon models in Europe.

There were no accidents suspected of being related to the defects, according toToyota. Toyota said it had received 77 complaints overseas, 75 of them in NorthAmerica, and more than 140 reports in Japan. The largest number of the affected

vehicles was in Japan at nearly 1.3 million vehicles, the second-largest recall in this nation's history and involving twodifferent problems.

30. Brand ambassadors SRK, Dhoni and Ravi Kishan do wonders for Chyawanprash-ET Jan 26In the times of iPads and Facebook, chyawanprash may not be something that the youth willrelate with. But marketers such as Dabur and Emami say the brown coloured sticky herbal pastehas caught up among the younger generation. A 25% jump in the Rs 400-crore chyawanprashmarket in 2010 after single-digit growth throughout the decade.

And they pass on the credit to new-age brand ambassadors such as Indian cricket captain MSDhoni , Bollywood superstar Shahrukh Khan and Bhojpuri actor Ravi Kishan who connect wellwith the new generation as well as the masses. For the first time in its 60 years history, Daburlaunched two fruit variants of chyawanprash orange and mango to catch the fancy of a younger target groupRecently, it also got Ravi Kishan to endorse the brand exclusively for local promotional activities in certain northIndian markets such as Uttar Pradesh and Bihar where he is very popular.

http://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cms






INSURANCE SECTOR IN INDIA

Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was

started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India

saw discrimination between the lives of English and Indians with higher premiums being charged for the latter. In

1870, Bombay Mutual Life Assurance Society became the first Indian insurer.

At the dawn of the 20th century, many insurance companies were founded. In the year 1912, the Life Insurance

Companies Act and the Provident Fund Act were passed to regulate the insurance business. Since 1999, when the

government opened up the insurance sector by allowing private companies to solicit insurance and also allowingforeign direct investment of up to 26%, the insurance sector has been a booming market.

Industry structure: Currently, a $41 billion industry, India is the world's fifth largest

life insurance market and growing at a rapid pace of 32-34% annually as per Life

Insurance Council studies. Insurance Regulatory Development Authority (IRDA) has the

responsibility of protecting the interest of insurance policyholders.

The Life Insurance Corporation of India (LIC) - In

1955, parliamentarian Amol Barate raised the matter of

insurance fraud by owners of private insurance

companies. In the ensuing investigations, one of India's

wealthiest businessmen, Ram Kishan Dalmia, owner of

the Times of India newspaper, was sent to prison for two

years. Eventually, the Parliament of India passed the Life

Insurance of India Act on 19th June 1956, and the Life

Insurance Corporation of India was created on 1st September 1956, by consolidating the

life insurance business of 245 private life insurers and other entities offering life

insurance services.

LIC is the largest state-owned life insurance company in India, and also the country's

largest investor. It also funds close to 24.6% of the Indian Government's expenses. It has assets of Rs 9.31 trillion

LIC started its business with around 300 offices, 5.6 million policies and starting funds of Rs 459 million.

ICICI Prudential Life Insurance Company was amongst the first private sector

life insurance companies to begin operations in December 2000 after receivingapproval from IRDA.

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30,

2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively

For the period April 1, 2010 to September 30, 2010, the company garnered Rs

7,267 crores of total premiums and has underwritten over 10 million policies since

inception. The company has a network of over 1,500 offices and over 1, 60,000

advisors, as on September 30, 2010. The company has assets held over Rs. 65,000

crores as on September 30, 2010.

Max New York Life Insurance Company Ltd. is a joint venture between Max India

Limited., one of India's leading multi-business corporations and New York Life

International, the international arm of New York Life, a Fortune 100 company.

Max New York Life offers a suite of flexible products. It has multi-channel distribution

spread across the country. Agency distribution is the primary channel complemented by

partnership distribution, alliance marketing and dedicated distribution for emerging

markets. The company currently has more than 71,000 agent advisors at 676 offices

across 389 cities. The company also has 50 tie-ups with banks, 30 partnership distribution

relationships Max New York Life has put in place a unique hub and spoke model of

distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural

marketing of insurance. Max Healthcare is the country's first comprehensive provider of standardized, seamless and

world-class healthcare services.

ca newsletter week jan21 jan27

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