Cover Story

Not good enough
The token increase in fuel prices isn’t enough to stem the flood of red on the balance sheets of state-owned oil marketers.

How to kick the habit
There are two ways to tame the oil monster: One is to become more energy efficient and the other is to develop new energy sources.

2008-06-29

Digital

SUBSCRIBE NOW

Editors note

From the editor

As our cover package points out, the massive subsidies being doled out by the government to shield consumers from high oil prices may actually be compromising the country's long-term ability to sustain high growth rates and also oil conservation efforts.

Trends

Hanging up on IPL

With the inaugural Indian Premier League (IPL) season drawing to a close, the eyeballs have started returning to traditional modes of entertainment. General entertainment channels (GECs), which saw viewers migrate to instant cricket, are reporting a surge in viewership.

Emerging markets: New opportunities

Emerging markets are changing the competitive environment of the world, China, India and Russia are the highest rated markets in the first Grant Thornton IBR Emerging Markets Index, based on a weighted calculation of key indicators such as GDP, population size, international trade and growth projections.

Robbing Peter to pay Paul?

FICCI has estimated that the export tax on steel could force steelmakers to defer their Rs 1,00,000 crore expansion plans.

Just wondering ...

What happened to Sahara Infrastructure & Housing’s ambitious plans of developing 217 townships across as many cities in India?

To be precise

“The cost of energy is going to be higher. We have to bite the bullet as far as that is concerned”George Soros, billionaire investor and philanthropist, in Forbes.com

The new pecking order

Bikini cricket, aka IPL T20, has thrown up a new lot of poster boys on the endorsement circuit, who are edging out the established sector.

Numbers of note

Rs 17,120 crore: Amount raised by Indian companies through IPOs in 2008 till the end of May

Talebearer

The Parliamentary Standing Committee on Commerce, headed by BJP leader Murli Manohar Joshi, is now turning its attention to the retail sector. Apparently, the committee is examining the proposal to allow big investments, including FDI, in organised retail.

Economy watch

 The 2007-08 rabi crop is estimated to have yielded 76.78 million tonnes of wheat.

Inside the minds of Asia's youth

Internet use is rising, but TV still rules in India.

Expats in demand

Walk into the offices of any IT, infrastructure, retail, hospitality or telecom major and you’ll almost certainly find several expats among its employees.

Top job drives the class of 2008

If an Accenture survey on the workforce of the future is to be believed, the world could see an influx of business leaders from India a decade or so down the line.

"Companies must respect cultures"

Aubrey C. Daniels, renowned authority on human behaviour and author of several best-selling books on the subject, spoke to BT’s Rahul Sachitanand on a variety of issues when he visited India for the first time recently. Excerpts:

Instant tip

The fortnight’s burning question. The sensex is trading at less than 16,000. Is it the right time to buy stocks?

Obama vs McCain: Who's better for India?

The Indian establishment is keenly following political developments in the US.

Pay on time, pay less

ICICI Bank, the country’s leading private sector bank, has increased the monthly interest rate it charges some of its credit card customers to 3.24 per cent from 3.19 per cent earlier with effect from June 1.

Realty's labour pains

The real estate sector is facing a human resource crunch— of skilled and semi-skilled labour such as masons, electricians and plumbers.

Current

Too little, too late

Keeping in mind the cash crunch faced by infrastructure companies, the government has doubled the ECB limit to $100 million. For all other companies, the limit has been hiked from $20 million to $50 million. Higher ECB limits and relaxed FII caps in debt may not help.

Bring on the greenbacks

SEBI is now wooing FIIs all over again. A notification in the last week of May allows for non-resident Indians, sovereign wealth funds (SWFs), universities, societies and trusts to invest in India as FIIs. FIIs have been net sellers in the Indian equity market.

Going, going

The price being offered by Idea is around Rs 58 a share, a source aware of the deal said.  Will Spice find a buyer—at the price B.K. Modi expects?

T-Series plays cop

Music company T-Series, which was once upon a time accustomed to being regarded as the culprit-in-chief of the Indian music piracy scene, has now turned cop. The music label takes on Yahoo and Google to defend its intellectual property.

In the dock?

The high-profile Sahara Group comes under the RBI’s lens. If the Sahara Group does lose in the court room, the impact would doubtless be felt on its other businesses, including real estate, media and other financial services like mutual funds and insurance.

Bangalore's builder cartel

Prices of a product fall if demand for it eases is what conventional economics would have us believe. But Bangalore’s real estate market will likely defy that logic. The city’s developers are rewriting Economics 101.

Small is profitable

Ford India is counting on its new small car for a turnaround. While Ford is tightlipped about the features the car will sport, all that the new Managing Director of Ford India Michael Boneham would reveal is that the car will be launched with 85-90 per cent local content and will be stunning in terms of style.

Lessons from Gujarat and AP

The latest McKinsey report, Powering India—The Road to 2017, gives a thumbs up to Gujarat power utilities for the way they have handled farm sector supplies. Why their power sectors are in a much better shape.

Trucking on alone

With a market share of 24 per cent, MRF is the largest player in the Rs 20,000-crore Indian tyre industry. For years that has been the pecking order. But that could soon change. The company anticipates tougher times ahead, but no change.

In the land of plenty

Emaar MGF is on a roll, but it may still need that IPO.

Lotus blooms in Bangalore

Yeddy will have to do a Modi to rescue Karnataka’s finances.

Regulator, heal thyself?

Disgruntled SEBI employees take recourse to the RTI.

Just what the doctor ordered?

Emami gets a toehold in Zandu, but it now has to go all the way.

Uneasy threesome

An HP-EDS-MphasiS combine looks formidable but also knotty.

The benz of beer beckons

All the ingredients in Carlsberg beer are imported from Denmark.

Editorial

Dividend or drag?

Several studies reflect this skills gap. An IT industry study found that only one out of four engineering graduates is employable. This is scary and needs to be addressed on a war footing.

Rationalise or perish

Airline companies can justifiably feel aggrieved that they are being made to pay for the massive subsidies that oil marketing companies are doling out at the petrol pump. In fact, the International Air Transport Association (IATA) points out that average ATF prices in India are 20 per cent higher than elsewhere in the world.

Decontrol retail prices of oil

After much dithering, the government finally summoned the courage to increase fuel prices. With crude prices crossing $130 (Rs 5,590) per barrel, there was an air of inevitability about the decision. But trust our politicians to act difficult on an issue that is clearly ballooning into a major crisis for the global economy. The recent price revision is too little too late.

Letters

Consumers' choice

It is truly the beginning of good times for the Indian consumer. The entry of big players into retail will establish the consumers’ sovereignty. Small retailers simply cannot match the variety of offerings that organised retail promises.

Features

Global ambitions

Elgi Equipments, the second-largest player in the Indian air compressor market and a leader in the reciprocating compressor segment is not happy being a 'big fish in a small pond'. So, it is mastering the technology, tweaking its production processes and quality levels to foray into the global market. N. Madhavan reports.

Mayday!

The civil aviation industry in India is neck-deep in trouble. India’s airlines lost Rs 4,000 crore last year and may lose more this year. A couple of airlines may even go under. How did fortunes suddenly turn in an industry that was witnessing 20 per cent passenger growth till as recently as six months ago? Kushan Mitra finds out. Tax cuts may give respite to aviation sector: PatelPricing tickets below costs should stop: Goyal

Is Sun set on Taro?

A year ago in late May 2007, Mumbai-headquartered Sun Pharma, together with its subsidiaries, had signed 'definitive agreements' to acquire Taro Pharmaceutical Industries, a multinational manufacturer of generic pharmaceuticals. A year later, the transaction is in tatters and both parties are washing dirty linen in public. Why? T.V. Mahalingam finds out the reasons.

On the wings of steel

Balkrishan Gopiram Goenka, the vice chairman and managing director of the Welspun Group, has drastically altered its profile over the past few years by making Welspun Gujarat—a part of the $3-billion Welspun Group and the second-largest manufacturer of large-diameter pipes in the world—the growth spearhead. A report by Anand Adhikari.

Marketing 2.0 is here to stay

The Internet and the mobile phone have opened up new ways for marketers to reach out to consumers. Several large companies, selling everything from manufactured goods to consumer products and services, are crafting innovative strategies around these. BT's Kushan Mitra reports. Internet advertising is all set to explode in IndiaMobile ads are coming of age

In This Issue

Private equity's men in control

Unlike most other private equity investors, Actis, Baring and India Value Fund like to acquire majority stakes in the firms they invest in. Why? In a business where more investments go bust than succeed, it is their way of managing risk and, hence, the returns. Shamni Pande finds out.

Tick-tock, tick-tock, tick-tock...

Despite the recent price hikes in India, oil is a ticking time bomb that will be defused only by a sharp drop in demand and, in the long run, alternative sources of energy. Meanwhile, brace up for the coming pain. Business Today's Rishi Joshi reports.

Tinseltown in your living room

They may still be larger than life, but these days they’re no longer that large to be unable to fit snugly into the small screen. A host of Bollywood superstars—a few who are at their peak, along with a few who’re set to peak out and a few who peaked out some time ago—have begun gravitating towards television and are pocketing big bucks in the process. Anusha Subramanian reports.

Jobs

Build a designer career

The semiconductor industry is looking for talent.

Grooming future leaders

Here’s a look at how the next generation of India Inc’s leaders is being primed.

Leadership Spotlight

Like father, like son

After completing management degree at Harvard Business School, the younger of Rahul Bajaj’s two sons, Sanjiv, was looking to repair the company’s books, while elder brother Rajiv tried to get the company’s products straightened out.

People

Hewlett-Packard’s Neelam Dhawan; Arun Sarin, CEO, Vodafone; MindTree Consulting’s Subroto Bagchi; Shantanu Prakash, Managing Director, Educomp Solutions; Rajan Anandan, former Country Head, Dell India; and ING Group’s M. Damodaran.

Printed Circuit

Grand theft auto IV is here

Need a reason to get a new console? Here is a very good one.

Special

There cannot be separate systems for pensions: D. Swarup

As the chairman of the Pension Fund Regulatory & Development Authority (PFRDA), D. Swarup is the man who will oversee the New Pension Scheme for central and state government employees.

One for the nest egg

Better returns to workers is one reason why pension management in the country needs sweeping reforms. Inadequate coverage is another. A report.

Top Mind

Track your train

Satellite Imaging for Rail Navigation (SIMRAN) uses GPS and GPRS technologies to give real-time information on the movement of trains across the country.

Call 108 for medical emergencies

It is a nationwide toll-free number that can be used to contact the emergency medical response services.

Policy Watch

Stand-off over 3G

The 3G controversy could take a new turn. The issue has already been referred to the Attorney General by DoT for a legal opinion on whether foreign companies, which don’t have telecom licences in India, can bid for 3G.

ECB norms relaxed

With the rupee showing signs of stabilising against the dollar (it actually weakened in May), the government has relaxed external commercial borrowing (ECB) norms.

Tackling the oil crisis

The government is bracing itself for the worst on crude prices. While officially it has projected that the under-recoveries of the oil marketing companies will be around Rs 2,45,000 crore during 2008-09, estimating oil at $125 per barrel, it has also chalked out an alternate strategy just in case oil prices flare up again.

News Maker

Bill Gates

Thirty-three years after he dropped out of Harvard in his first year and founded Microsoft, William Gates III, 53, better known as Bill Gates, will finally cut his day-to-day ties with the company he started with childhood friend Paul Allen.

Noted

Ranked: At #6, the Tata Group in the annual Global 200: The World’s Best Corporate Reputations list, compiled by the US-based Reputation Institute. The Tata Group leapfrogged over 100 positions from last year’s 124th rank. India’s most valued firm, Reliance Industries, failed to make the grade.

Back of the Book

Young turks in the works

The National Entrepreneurship Network is pushing college students towards entrepreneurship and has attracted some high-profile backing.

Book

Steel saga

A corporate potboiler on Mittal Steel’s hard-fought battle for Arcelor.

Money

The 10 most widely-held stocks

There are many stocks in the market, but only a select few make it to almost every fund portfolio. Should you invest in them?

In choppy waters

The market is going through a rough phase as it navigates cross-currents. What should investors do?

Room for growth

The investment management industry is set for exponential growth in the Asia-Pacific region.

The IPO lull

The turbulent stock market has hit the flow of initial public offerings, but a few still managed to pull through.

The best mutual funds

It has not been easy to beat this five-year bull market consistently. Here are four funds that did it.

The fine art of portfolio composition

All asset classes don’t move in tandem. The trick is to diversify portfolio across assets and cut risks. Find out how to create an optimal portfolio.

Reporters Diary

UP farmers mint it big

Farmers in Barabanki have turned successful mentha entrepreneurs with a little help from a technology institute. They have found in methanol mint a crop that is ideal for plugging the gap between rabi crop (wheat or potatoes) and kharif crop (rise). Almost 70 per cent of the total arable land in the district is being used to cultivate the "bonus" cash crop in addition to the traditional food crops. A report by Kapil Bajaj.

Treadmill

Standing up to back pain

Think of how hard your back works every day. Even if your job involves sitting at a desk, your back is constantly on the move— bending up and down, swaying sideto-side, twisting and turning. These, and other activities, can lead to back pain. Here’s how you can avoid it.

A strong foundation

The routine most likely to get neglected in gyms are leg workouts. And, as I’ve noticed, it’s more men that tend to neglect working out their leg muscles than women.

BT More

Are you ready for Karnataka?

The new entrants in the Indian wine business have a lot of catching up to do. They also have the advantage of learning from the mistakes of others and not repeating them. The way the Indian wine market is shaping up, the new entrants won’t have the luxury, like the early birds, of getting away with mediocrity.

Play ball

Managed to snag a ticket to Euro 2008 in Austria and Switzerland this June? Cheer your team and guzzle beer by all means but when sober, do take time out to see these beautiful cities. Here’s what you should be doing (unless you are determined to only check out the pubs).

Dream run

The new Ferrari 612 Scaglietti has to be driven to be believed. It’s that good.

Battle of the shooters

Both Canon and Nikon have unleashed their new entry-level Digital Single Lens Reflex (DSLR) cameras. Both are affordable and offer entry points to higher-end photography. We tried out both and here is our verdict.

Suits to suit your budget

Nothing enhances your sense of comfort like linen, and it’s even better if the suit can be classy without costing the earth.We take a look at three great linen suits under 20K.

The new Ravi Bajaj

At 43, India’s coolest menswear designer is reinventing himself and his work. What’s making this pioneering Indian designer change his stripes after 20 years? We ask the man himself.

Festival express

The world can wait. But the music won’t. Don’t miss these music festivals this year.

The new Ravi Bajaj

Over the past two decades, Ravi Bajaj has rightfully earned the tag of being India’s finest menswear designer. His suits, simply put, are a class apart.

Dressing the men

From cutting edge couture to elegant designs for the urban jungle, these guys love to dress the men.

Granddaddy of lightweights

In a world of super-luxury lightweight suits, meet the suit with the finest yarn.

In the lap of luxury

‘I am working so hard to keep you in the luxury’, sang the Rolling Stones. Check out the new launches from the world of luxury this fortnight and you’ll know what made Messrs Jagger and Richards strum out that amazing number.

Take a walk

Most Indian cities have one thing in common—a rich heritage. And what better way to discover it than to check it out on foot?

The old and the fairly new

Parkland courses call for a different type of play. There’s more of target hitting here as the ground is softer, the grass thicker and winds aren’t generally a factor. The golf ball tends to stop much quicker on these inland courses.

What the Mexicans haven't told you yet

Don’t order a ‘Burrito’ when in Mexico.You might get a little donkey to ride on instead of the tortilla you expect! There’s a lot about Mexican cuisine that we don’t know. Let’s find out.

Dance to stay fit

Who says working out can’t be fun? If going to the gym five days a WORKS ON: It’s an out and out cardio workout. week is not quite your style, attend a dance class instead!

All the Oscar men

This has been one of the best years for the Oscars. We take a look at three Oscar-nominated movies that have been released on DVD.

Cool pools

Fancy a romantic dinner in a restaurant overlooking a pool? Here are the best poolside restaurants and cafés in India. Take your pick.

Sip like a Japanese

When in Japan, try sake.’ you’ve heard this line more often than you would care to remember. okay? so, here’s something different to sip when travelling to the land of the rising sun.

Of love and intrigue

Two sisters compete for the love of King Henry VIII and an Irish woman seeks her destiny in a bizarre journey through life—two true stories retold that prove yet again that truth is not just stranger but far more exciting than fiction.

Lost and found

The roads here are not properly mapped yet, nor are there any agencies that stream data on traffic conditions. Until that happens, PPS or PGS (people guidance systems) seem to be the best solution instead of GPS.

A 'real' cool guy

Amit Burman says he likes to live life king size. So, we met the 38-year-old Vice Chairman of Dabur for a meal to find out a bit more.

Cover Story

PREVIOUS EDITIONS