India tycoon's got tons of cash, nowhere to invest

With the country mired in corruption, bureaucratic red tape and unclear and changing government policies, many of the men who made their billions here are saying maybe it's time to quit India. It's got to be easier to do business elsewhere.



Ajay Piramal is sitting on a mountain of cash. Yet the billionaire Indian tycoon, working in one of the world's fastest growing economies, is struggling to figure out what to do with the money.

The problem isn't opportunity, he says. It's India.

"Every large investment, there was no transparency," he said.

His dilemma is a worrying sign for India. With the country mired in corruption, bureaucratic red tape and unclear and changing government policies, many of the men who made their billions here are saying maybe it's time to quit India. It's got to be easier to do business elsewhere.

In May last year, Piramal's healthcare business sold its generic drug operations to U.S. pharmaceutical giant Abbott Laboratories for $3.8 billion. Piramal, a tall big man in a country that still measures prosperity by girth, was eager to set that cash pile to work. He wanted to expand one of his chemical plants, but was told it would take five years.

"The same plant could be set up in China in two years," he said. "I love India, but my customer is not going to wait."

India, still a beacon of relatively fast growth despite a troubled world economy, should be a magnet for capital. Instead, since the beginning of 2010, the amount that Indians have invested in businesses overseas has exceeded the amount foreigners are investing in India, according to central bank figures.

In part this reflects the confidence and aptitude of India's maturing companies and the current malaise in the global economy and financial markets. But it also reflects deep problems at home. India's big coporations may be cash rich but the failure to invest that money domestically is bad news for a developing country that needs capital to build the roads, power plants and food warehouses that could help lift hundreds of millions out of dire poverty.

The frustration of India's business elite with corruption, political paralysis, log-jammed approvals, regulatory flip-flops, lack of access to natural resources and land acquisition battles — to pick a few of the top complaints — has reached a pitch perhaps not heard since India began liberalizing its economy in the early 1990s.

"If you are an honest businessman in India, it's very difficult to start up anything," said Jamshyd Godrej, chairman of manufacturing giant Godrej & Boyce. "Companies are going to operate where they see the best opportunities and efficiency for their capital."

Increasingly, that's outside India.

In 2008, foreigners poured roughly twice as much direct investment into India — $33 billion — as Indians plowed into businesses overseas. By 2010, that had reversed: Indians invested $40 billion abroad — twice as much as foreigners invested in India — a trend that's continued this year.

There is another, unspoken element to all the complaints. To the extent that business in India ran on corruption, some of the old, dirty ways of doing things are being disrupted, freezing India's already glacial bureaucracy, business leaders say.

Scandals in the staging of the Commonwealth Games, the pilfering of homes meant for war widows and the irregular auction of cellphone spectrum that cost the country billions has sent parliamentarians and even a Cabinet minister to prison.

With Indians tiring of the incessant graft, tens of thousands of middle-class protesters poured into the streets and pushed an anti-corruption bill onto the floor of Parliament.

Steelmakers can't get enough iron ore because a massive mining scandal in the southern state of Karnataka prompted a court to order the closure of illicit mines that account for a fifth of iron ore production in the country.

The bureaucrats — even the honest ones — are reportedly so scared of being punished they are refusing to make the decisions needed to make the country run.

Piramal is not unpatriotic. Each room in his executive suite is named after an Indian epic hero: Arjuna, the most pure; Dhananjay, acquirer and master of wealth. There's a quote from the Upanishads scriptures on the wall.

His office sits in a one million square foot office park in Mumbai his family built. The buildings around him — white with blue glass that flashes back the unforgiving sun — bear his own name in large black letters: Piramal Towers.

Piramal had the will and the means to build power plants and roads.

Instead, his Piramal Group's largest investment to date has been in one of the office park's tenants: the Indian subsidiary of the British telecom giant Vodafone Plc.

Last September, when he got the first payout, of $2.2 billion, from Abbott, the phone started ringing.

"Because people knew we had money, we had so many people approaching us for projects in the infrastructure sector," he said. "These people had no experience and no knowledge and no track record of having built a business in any area. And yet they were coming to us saying we have licenses and approvals. That just didn't sound right or smell right."

Each day, they paraded through his office: The investment banker who decided to build a 500 megawatt power plant, the coal trader assured of a government coal allocation, small-time miners with pretty presentations promising land, licenses and financing.

"They'd name politicians from the center and the state who had it all tied up for them," he said. "It didn't sound right. Obviously there were things going on in the system."

Road and port projects weren't much better, he said.

Piramal also looked at investing in engineering and infrastructure services companies, but couldn't make sense of their books.

"We couldn't find anything," he said. "People get greedy. In their desire to get good valuations they resort to, if I can say, creative accounting."

Today, India's infrastructure companies are known as great wealth destroyers.

"Infrastructure investment has become untouchable, a sure way of losing money," said Jagannadham Thunuguntla, head of research at SMC Global Securities. He calculates that four of India's top infrastructure companies — GMR Infrastructure, GVK Power and Infrastructure, Lanco Infratech and Punj Lloyd — have lost over 80 percent of their value since 2007. A fifth, Larson & Toubro is down 50 per cent.

Piramal may have dodged a bullet, but shareholders in Piramal Healthcare aren't happy. Despite a $600 million special dividend and share buyback, the share price has sagged since the Abbott deal was announced on May 21 last year. They'd like to see the Abbott cash productively deployed. Instead, much of it is sitting in fixed deposit accounts.

Piramal says he really does want to run a pharmaceutical company and be the first Indian company to discover a world-class drug — despite his dabbling in telecom, financial services and real estate financing. It's just that pharma can't absorb all his cash. He plans to sell the 5.5 per cent stake he picked up in Vodafone Essar for $640 million in a few years, when Vodafone Essar issues shares in an initial public offering, he said.

He has also launched Piramal Capital, to make real estate and infrastructure loans, and spent about $50 million to acquire IndiaReit, a real estate investment company.

Meanwhile, his thoughts have turned to Boston, where he set up IndUS Growth Partners with a professor from Harvard Business School to look for buying opportunities in the U.S., in security, financial services and biotechnology. And he says he's still planning to spend over a billion dollars on biotechnology acquisitions in North America and Europe.

"India was going more towards capitalism than socialism," Piramal said. "I think we're going back. Capitalism went to too much excess. Corruption levels went to the extreme."

He said he'll announce his first overseas acquisition by March.

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Save electricity for indian middle class families

Following are the ways to save on Electricity for Indian Middle Class families.

  • Use CFL bulb instead using conventional incandescent bulbs.
  • Use single door fridge instead of double door.
  • Keep cooling option in Fridge with optimum setting.
  • Don't leave mobile charger in ON even if it is not used.
  • PC/Laptop Monitor uses lot of power. Use turn-off monitor after 2 min in power setting option.  
  • switch off lights if it is not needed.

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F1 Opportunistic for SEX Pimps


With 30,000 foreign tourists expected in the national capital region for the event this week, prostitution syndicates don't want to miss out on the opportunity


Fast cars and beautiful women seem to go together. Which is why the demand for high-profile escorts in the national capital region has gone up in the last few days. Eyeing the Indian Formula One Grand Prix that will be held from October 27 to 30, escort agencies and sex traders have called in English-speaking girls from across India to cater to the growing demand.


With a crackdown on many high profile pimps within a year, the prostitution trade is running slow. Delhi police arrested Rajiv Ranjan Dwivedi aka Sex Baba, Sonu Punjaban and Nagma - all in about a one year period - who were allegedly pulling the strings of the sex trade in the national capital. So now with the big names behind bars, the small-timers have come together, hoping for Formula One to boost their business. 
No cheer!
"For quite long now, business has been running slow. Police have arrested lots of girls. Even during CWG last year we did not see much clients as number of foreign tourist turn out was low. So after CWG this is the most awaited event as around 30,000 foreigners are expected here," said a pimp on condition of anonymity.

If the escort agents whom MiD DAY contacted are to be believed, then the business has acquired an international flavour. You name a country -Britain, Spain, Germany, Poland, former USSR countries, Afghanistan and Turkey - and brokers, numbering about 450-500 in the city, would arrange girls from there at your doorstep in the garb of escorts.

"There are over 450 brokers working overtime to put the business in order as each has about 15-20 girls under his/her charge," said Sanjay Sharma, who asked us to meet him at Connaught Place.

Nothing comes cheap
According to the agents, many girls from Thailand frequently visit Singapore during the Formula One event there, so they are trying to contact them and ask them to come over to India. Most of the foreigners come to India on tourist visa.  Each broker has to pay between Rs. 1-2 lakh for a girl from the former USSR countries and about Rs. 5-7 lakh for someone from Britain or Spain. "The net is spread far and wide. High-class escorts from London cost about Rs. 7 lakh while those from Spanish-speaking countries charge around Rs. 6 lakh. Turkish escorts are relatively cheaper at about Rs. 2 lakh," explained Sanjay. All of them are hired under contract for a fortnight. Apart from the foreign escort syndicates, Indian agencies would be operating during the event as well. "It is not a mass event so we have only selected smart girls. The rate of these girls will start from Rs 15,000. We will be extra cautious and will take orders only from trusted clients," said Vicky of Paradise Escorts.



Source:http://www.mid-day.com




STUDY-Following Brands on Twitter Increases Purchase Intent.


People who follow brands on Twitter are more likely to both buy and recommend those brands’ products, according to a recent study of online consumer behavior.
The study, conducted by Constant Contact and research firm Chadwick Martin Bailey, analyzed the behavior of 1,491 consumers ages 18 and older throughout the U.S., and revealed a number of details about how people interact with brands on the world’s beloved 140-character social network.
So, just how powerful is the Twitter connection between consumers and businesses? The study found that 60% of brand followers are more likely to recommend a brand to a friend after following the brand on Twitter, and 50% of brand followers are more likely to buy from that brand.
These findings mirror those from a previous report, detailing how consumers interact with brands on Facebook. The study found that 56% of consumers said they are more likely to recommend a brand to a friend after “Liking” a brand on Facebook, and 51% of consumers said they are more likely to buy a product after doing so. The findings from both studies seem to show that customer loyalty is about the same across both social networks.
Any increase in customer loyalty is great news for brands, especially those lucky enough to make the coveted list of followed companies. According to the study, though, the chances of making that list are slim, as only 21% of Twitter users follow brands on Twitter, and of those, 79% follow fewer than 10 brands.
If your brand makes it to that highly sought-after status, you’re in for the long haul — a whopping 75% of respondents claimed that they had never unfollowed a brand on Twitter. This finding, though, contradicts a previous study, which claimed that 41% of consumers have unfollowed a company on Twitter. The trend seems to favor longevity in both studies, however. If a user opts to follow your brand on Twitter, it’s more likely they’ll continue following, rather than decide to unfollow.
When it comes to a consumer’s decision to follow brands on Twitter, exclusivity and access to promotions reign. Here are the top five reasons given by respondents:
  • 64%: I am a customer of the company
  • 61%: To be the first to know information about the brand
  • 48%: To receive discounts and promotions
  • 36%: To gain access to exclusive content
  • 28%: To receive content/information to retweet and share with others
For the most part, brand interaction on Twitter is still largely a one-way process. While 84% of followers read tweets posted by the brands they follow, only 23% claim to tweet about the brands they follow.
The study also found that Twitter users are frequent Internet users overall — 50% of Twitter users in the study reported going online more than once per hour. Of Facebook users, only 34% of respondents reported going online multiple times per hour. Facebook and Twitter users both outpace the average Internet user, though, as only 29% of overall users that do not have Twitter and Facebook accounts reported logging on many times within an hour.
Twitter users even use Facebook more than users who stick solely to Facebook — 60% of Twitter users use Facebook more than three hours per week, compared with 49% of Facebook users overall.
The study offered one final nugget of wisdom that should inform how brands on Twitter approach their content strategies — 67% of brand followers expect unique content from the brands they follow. So get to it, social media strategists!
See the complete study here:

Google+ Pulls In 20 Million in 3 Weeks


When Google Inc. launched its Google+ social-networking site three weeks ago, executives handed out sailor hats to the hundreds of employees working on the project, symbolizing their year-long journey to that point.
So far, the sailing has been mostly smooth. On Wednesday, Web-traffic watcher comScore Inc. estimated Google+ has had 20 million unique visitors since its launch, including five million visitors from the U.S. A Google spokeswoman declined comment.




ComScore, whose estimates are based on a "global measurement panel" of two million Internet users, similar to the approach Nielsen uses to measure television ratings,doesn't have data on the number of minutes people spent on Google+.

Still, the growth of Google+ has impressed observers because access to it is by invitation only, meaning people can join only if a current member invites them. And the company hasn't yet marketed the service to the more than one billion monthly visitors who use its search engine, Gmail and other services.

Google+ lets people share comments, articles, photos and videos with various "circles" of friends or contacts, or they can share content publicly with any userwho wants to view their posts. Eventually, Google plans to incorporate features of Google+ in its other services, such as its YouTube video site.

"I've never seen anything grow this quickly," said Andrew Lipsman, vice president of industry analysis at comScore. The only other site that has accumulated as many new visitors in a short period of time is Twitter in 2009, he said, "but that happened over several months."

The new data follow comments by Google CEO Larry Page last week that Google+ had more than 10 million users.Mr. Page said Google+'s traction was evidence that there are "more opportunities for Google today than ever before."

Of course, Google has a long way to go to reach the scale of Facebook Inc., which has more than 750 million users, and Twitter Inc., which has more than 200 million registered accounts.

With Google+, Google is aiming to match rivals like Facebook, which used personal information posted by its members to create a multibillion-dollar advertising business that lets marketers target specific demographic groups or people with certain interests. Google also hopes the service can become a home for brands and celebrities.

The data Google obtains about people's interests could also help it change the way its Web-search engine works. Sites in its search results could potentially be ranked based on what users and their friends like or find useful, Google engineers have said.
 In addition to adding numerous features over time, Google will eventually allow software developers to create "social" games and other applications that would run on top of Google+, similar to Facebook's successful "platform" for applications, people familiar with the matter have said.

Google+ also has unique technology, such as a "hangouts" feature, that lets people do "video chats" using their computer webcams, speaking to numerous friends simultaneously. The company plans to include Google+ in its suite of online software for businesses.

In an email to investors Tuesday, Barclays Capital equity researchers said that "given positive initial traction from users we believe Google is now better positioned to compete and integrate social cues across its products than before, which could drive increased relevancy in search going forward."

Even some privacy advocates who lambasted Buzz, Google's prior social-networking effort, have lauded Google+. "The product has been designed to make it easier to share with one group of your friends while retaining some measure of privacy with respect to your family, coworkers or other groups of friends," said Peter Eckersley, a senior technologist at privacy-advocacy group Electronic Frontier Foundation, in an email.

But Mr. Eckersley added: "Google+ won't be as good for protecting your privacy against Google or against governments or lawyers with the power to compel Google to turn over your information."

Ben Hopper, a 29-year-old photographer in London who joined Google+ just after it launched, said "it feels a little empty right now" compared with Facebook, where he has more than 4,000 "friends." But he said that he "needs to be everywhere to show my photography," and if Google+ becomes integrated with Gmail, Google's email service, "for me it will have the upper hand."

The Poor Rich India.

India is the 4th richest country in terms of GDP
India has 55 billionaires and is 4th in the number of billionaires in a country
India is 3rd in the number of internet users and 5th in number of facebookers
India has 10th most number of airports
India has 2nd most mobile phones
India has the 1st most richest cricket board

PS-Indians are rich but India is poor, where is all the money going?

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100% needed for B.Com at SRCC




If Sri Ram College of Commerce is your dream college and you are not a commerce student, 100% is what you need to make that dream come true. At the nearby Hindu College you will need 99% marks and if you settle for the south campus, Lady Sri Ram College has a first list cut-off at 97%.
"This is crazy even the second rung colleges are out of reach, even in colleges like Khalsa, the cut offs have gone upto 92-93% " a student Keshav said.
Despite the exceptionally high cut offs this year, there are some who have managed to qualify but the number of such students are not many.
"I have got 97%. They are doing it to keep the non commerce students out" a student Dheer said.
Unlike 2010, in 2011 the university decided to do away with centralised application forms and asked colleges to come out with cut offs on their own based on this years Class XII results and previous cut off trends.
The rider is that every student who makes the cut has to be given admission that is one reason the colleges are playing it safe, at least the first cut off list.
But the HRD ministry Kapil Sibbal and the Vice Chancellor of Delhi University Dinesh Singh are not happy.
"I request VC and college to take note of it and I want to tell the parents that they should not worry we will take care of this irrationality," Sibbal said.
Vice Chancellor of Delhi University said, "High cut offs because of very high percentages students have received in their boards. in the first list colleges are always cautious, cut offs will come down in second and third lists. We are looking to reform our processes."
With around 2000 students across the country securing above 95 per cent, 800 of which are from Delhi alone, the principal of SRCC Dr PC Jain says this kind of a cut off list was not unexpected.
"Performance of students has been extraordinary this year, that's why, the cut off is so high... There is nothing unfortunate. Infact, its very fortunate that students in this country are performing so well. The criteria are an old practice that has been followed so nothing like that it has been done deliberately to keep the non-commerce students out of SRCC," said Jain.
Even as the first cut off list has brought more shock than hope among students, college authorities say there is hope that the second cut off list is likely to be more realistic.
Jammu and Kashmir Chief Minister Omar Abdullah, whose two sons study in a Delhi school, is also worried over the high cut-offs. Omar tweeted saying, "Worry? I'm terrified for my sons because in five years, when Zamir (Omar's son) moves to college, the cut-offs will be even more insane."
Omar said he was happy that he finished college 20 years ago as the present cut-offs were "scary".
"With these kinds of cut-off marks, I'd have been doing a correspondence course because I wouldn't have even gotten a 'pass course' admission," he said.
Another Delhi University college Daulat Ram College has hiked its cut-off for chemistry honours by as much as 13%, while Gargi has increased the cut-off marks for chemistry honours by 12%. For English Honours, the cut-off is 88% at Gargi, Hans Raj and Ramjas.
Meanwhile, St Stephen's has done away with the Class 10 component from its eligibility requirements and is giving 85% weightage to the Class 12 marks and remaining 15% to interview.

Are Malls Our New Temples?




Festivals are a time for shopping. Well and good. But I think those of us who live in large cities would be kidding ourselves if we pretended that this is the only time we engage in rampant consumerism. No, from Bangkok to Singapore, Mumbai to Manila, shopping—particularly shopping in large malls—is a year-round priority.
Shopping centres are good. They are a sign of dizzying economic growth, and a demonstration of how far Asians have come, in such a short time. For many of the older generation who can remember a time when everyone lived in villages and there was no running water, the multi-level, air-conditioned mall represents comfort, choice, luxury and better times.
But many Asian metropolises with burgeoning middle classes now have such a proliferation of malls—all teeming with outlets of Marks & Spencer, Gap, Starbucks, Bulgari, Cartier, Mont Blanc—that they appear to have long crossed saturation point. Nowadays, it seems our default venue for every activity is the mall—it’s where we shop, eat, watch movies, bowl, arrange to meet our friends, have a romantic date or just generally lounge around.
Not only that, we have come to regard malls as important landmarks or tourist attractions. “When you come to visit us, you must see our new shopping centre, it’s massive and has an Egyptian pyramid at the entrance”—sentences such as these are quite usual. Whole generations of Asians are growing up to think that, aside from home and school, the shopping complex is the most natural place to be. Many young people shop for clothes at the mall so that they can look good when they meet their friends—at the mall. 
My main contention with shopping centres is not that they are often massive concrete blocks that don’t take into account the architectural nuances or cultural backdrop of a city, or that they promote ultra-consumerism at a time when our planet can ill afford it. My main gripe with the plethora of malls is that they don’t seem to make us happy. Oh, the large advertisements outside the stores could persuade us to think that if we only had this pair of jeans, or if we hung out at this cafĂ©, then we could feel more fulfilled. But once we buy something, we only want to buy something more.
Shopping malls, even though they try to look as glitzy and as welcoming as possible, can be 
harsh places. The very concept of the mega-mall plays on human feelings of inadequacy and competitiveness. To make us buy, it must make us feel that we lack something, or that everyone else has something we do not yet own. We must consume to surpass others or, at the very least, to keep up. We purchase to fit in. How can this constant undercurrent of competitiveness, of us always trying to be “cool,” bring us true joy?
The saddest thing is that the modern mall, basically an American import, has made us put aside a whole array of beautiful, worthwhile —and yes, cheaper—activities, many of them intrinsic to our own cultures or region. We have no one to blame but ourselves. Instead of shopping, we could be cooking, visiting a nearby waterfall, beach or temple, reading a novel, writing poetry, starting a blog, making music, taking a long walk, playing a game, learning a dance or—here’s a radical idea—visiting a friend.
Every time there’s a spare piece of land, all we can think of building on it is yet another mall. This way, 
we show not only our affluent status but also demonstrate our poverty in terms of imagination, adventure and passion. Perhaps instead, we should be building libraries, or theatres, art galleries, museums, sports halls, public swimming pools, parks, animal sanctuaries—the list is endless. 
We might even consider leaving that plot of land alone, to flourish as it will.
And this is something that the mall may have caused us to forget; In order to be happy, we must create as well as consume.

Flying Car -- Becomes Reality


Mumbai office mkt sixth most expensive globally




Mumbai has been ranked as the sixth-most expensive office market in the world, according to a global survey by property services firm Cushman & Wakefield.
With office rentals in its main business district averaging $114 a square foot per year, Mumbai ranks behind Hong Kong , London, Tokyo, Rio de Janiero and New York, the report said.
Rentals for Class A space at the Nariman Point area in south Mumbai typically range between 300 to 400 rupees per square foot per month. Mumbai had been ranked No. 5 last year in a similar survey.
Cushman & Wakefield said lack of new supply and limited demand for office space is likely to keep office rentals stagnant in Mumbai.
Property prices in Mumbai and Delhi have more than doubled over the past 18 months, spurred by rising incomes and a firm stock market, but sales volumes are down by a third from a year ago as high prices and rising borrowing costs deter buyers.
The Reserve Bank of India (RBI) has raised interest rates seven times since March 2010 to curb stubbornly high inflation, further hurting demand.
India's top seven cities hold total office space of 280 million square feet, and this is expected to rise by another 50 million square feet in 2011.

Average wake-up time:

  Average wake-up time: South Africa - 6:24 AM Colombia - 6:31 AM Costa Rica - 6:38 AM Indonesia - 6:55 AM Japan - 7:09 AM Mexico - 7...