Apple, Reliance to enter long-term relationship; VoLTE iPhones on Reliance Jio Network on anvil
Apple CEO Tim Cook and a team of top Reliance Industries executives have agreed to forge a long-term relationship which includes supplying a couple of million VoLTE iPhones that will work on Reliance Jio’s upcoming 4G network as well as deploying an enterprise solution, developed by the Cupertino-headquartered company and IBM, for Reliance Retail. These decisions were taken at a lunch meeting which lasted for more than two hours at Mukesh Ambani’s residence, Antilia, in South Mumbai, said two senior executives aware of the development. While Ambani was not present as he was overseas, RIL was represented by his son Akash Ambani, his close friend and confidant Manoj Modi as well as by Sanjay Mashruwala and Pankaj Pawar. Mashruwala is the managing director of Reliance Jio. Pawar is a member of the core team of both Jio and Reliance Retail. The Reliance executives made a strong pitch about how Apple can play a big role in Jio’s growth and how bundling of iPhones with its data service will make a compelling proposition for consumers, boosting the penetration of iPhones in the country. Reliance is keen to sell these bundled iPhones through its own sales and distribution network covering 1.2 lakh retailers and ecommerce firms and hence wants to forge a direct sourcing relationship with Apple, the executives said. The executives added that Mashruwala also gave a presentation on the Reliance Jio network, how it will revolutionse mobile broadband in the country and how Apple can get involved. Cook, it is learnt, has given his in-principle nod to a strategic relationship with Jio. The Reliance team also expressed their interest to deploy enterprise retail solutions which Apple and IBM have jointly developed. Reliance Retail plans to give Apple devices like iPhones and iPads to its shop-floor employees to improve consumer experience. Apple and IBM have developed a suite of retail solutions for customer payment, boosting shop-floor service by offering customised solution for individual customers and also aiding retailers in product and inventory planning. Cook, on his part, made a pitch for potential deployment of Apple Pay, the mobile wallet and digital payment solution, in the Reliance Retail stores. The Reliance team has agreed to evaluate its deployment in its stores, the executives said. An email sent to Reliance did not elicit any response till late Wednesday evening. An Apple spokesperson said it was a private meeting and hence would not like to make any comment. Cook and the Apple team including country head Sanjay Kaul had gone to Antilia around 12:30-1pm. The Apple CEO was wearing a blue blazer, brown trousers and strikingly colourful striped socks. It is learnt that the Reliance team gave a memento to the Apple chief. Apparently, Cook and Ambanis have known each other for some time and the family members are believed to be big Apple fans. Riley Dixon Jersey
Government gives nod to proposals worth Rs 17,300 crore in electronics sector
The government has cleared 74 investment proposals worth Rs 17,300 crore in the electronics manufacturing sector. “Out of 195 proposals, entailing an investment worth Rs 1.21 lakh crore, we have approved 74 applications amounting to Rs 17,300 crore,” Ajay Kumar, additional secretary in the department of electronics and IT (DeitY), told ET. Kumar said 94 proposals are at different stages of approval while 27 investment proposals have been declined due to “lack of communication” between the department and the private firms which submitted them. “The government is giving tremendous importance to this (electronics) sector,” Kumar said, adding that the enthusiasm among private firms is such that some are even willing to diversify their business to include electronics. The Centre, through its ‘Make in India’ programme, aims to fuel domestic manufacturing of electronic products in order to cut imports to zero by 2020. It is in talks with various large companies which are eager to establish production units in the country . Chinese companies alone are expected to invest ‘Rs 13,400 crore to $2-3 billion (Rs 20,100 crore) in the Indian’ mobile manufacturing sector over the next two years. The National Policy on Electronics aims to attract Rs 6.5 lakh crore worth of investment and generate employment for 28 million individuals. It entails setting up of at least 200 electronic manufacturing clusters by 2020. The government is providing incentives to private firms to support capital expenditure, skill development, intellectual proprietary rights and exports. James Paxton Jersey
Alibaba breached takeover rules: HK regulator
Hong Kong’s securities regulator said on Wednesday that Chinese e-commerce giant Alibaba Group Holding Ltd breached takeover rules in the purchase of a healthcare firm in 2014 because it also bought a company owned by the brother of the healthcare firm’s vice chairman at “favourable terms”. Alibaba agreed to buy CITIC 21CN, now known as Alibaba Health Information Technology Ltd, for $170 million at the time. During the acquisition process, Alibaba also agreed to buy Hebei Huiyan Medical Technology Co from Chen Wen Xin, who was also a shareholder of CITIC 21CN and is the younger brother of the company’s vice chairman, Chen Xiao Ying. Hong Kong’s Takeovers and Mergers Panel, part of the Securities and Futures Commission (SFC), ruled that Alibaba’s purchase of Hebei Huiyan “constituted a special deal with favourable conditions which were not extended to all shareholders was a clear breach of the Takeovers Code,” according to the decision published on Wednesday. Alibaba has already said it will appeal the panel’s decision, which was unveiled last month without the full details. The company didn’t immediately reply to a Reuters request for comment on the SFC’s published decision. T. J. Carrie Womens Jersey
CAIT demands regulatory authority for online retailers
Alleging that e-commerce firms are openly flouting norms laid down under FDI, traders’ body CAIT today demanded formation of a Regulatory Authority for India’s online retail market. In a letter to Commerce Minister Nirmala Sitharaman, Confederation of All India Traders (CAIT) said: “e-commerce companies are openly flouting norms laid down under FDI in e-commerce policy of the government and in absence of any specified rules & regulations are grossly involved in deep discounts, predatory pricing, anti-competitive practices, tax avoidance etc”. A joint statement by CAIT National President B C Bhartia and its Secretary General Praveen Khandelwal said that although e-commerce has introduced significant choices for Indian consumers and customers, it has also given rise to many disputes by the consumers purchasing the products from e-commerce websites. “Since it is a promising business market in the future due to steep rise in internet connections and mobile connectivity, formation of a Regulatory Authority and specified Rules & Regulations are all the more required before the situation becomes more worsen. Already, the e commerce companies have vitiated the e commerce market to a great extent,” they said. The traders’ body further alleged that e-commerce websites are “not following Indian laws at all and are adopting unfair means to grow their business which is creating an uneven level playing field much to the disadvantage of brick & mortar shops resulting into diversion of their customers to e commerce market”. Khandelwal said that in response to a tweet made to DIPP on contravention of FDI guidelines by e-commerce companies, the DIPP on May 10 tweeted that it is responsible for formulation of FDI policy and violation of FDI policy is a part of FEMA which is administered by Reserve Bank and Enforcement Directorate is the enforcement agency. “Taking advantage of such provisions and loopholes, the e-commerce players have made e-commerce market a free play ground playing the game with their self set rules. Therefore, in order to create a structured and healthy e-commerce market in the country, formation of a Regulatory Authority and specified Rules & Regulations must be made by the Government-argued both leaders,” Khandelwal said. Rashod Hill Womens Jersey
Don’t transfer shares till next date: Delhi HC to Spicejet
Delhi High Court today directed Spicejet to not issue or transfer its shares to a third party till the next hearing of Sun Group Managing Director Kalanithi Maran’s plea for issuing him stock warrants in the airline as per a sale purchase agreement of 2015 which led to change in ownership of the carrier. “Till next date of hearing the respondent (Spicejet) is restrained from transferring the shares and issuance of the share,” Justice Manmohan Singh said. The court gave the interim order after senior advocate Kapil Sibal and Rajiv Nayar , appearing for Maran, claimed that he should be protected till the time warrants are not issued in his favour. Spicejet opposed it, saying the warrants can be issued only after approval has been received from Bombay Stock Exchange (BSE). The court, however, observed that some balance has to be struck between the parties. “You (Spicejet) do not transfer the share,” the court said and asked the carrier to file its reply on the decision taken by the BSE and Securities and Exchange Board of India (SEBI). Under the sale purchase agreement (SPA), Maran and his KAL Airways had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to its co-founder Ajay Singh. According to the SPA, Maran and KAL were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition has claimed. Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to Spicejet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution. Spicejet had earlier told the court that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran. It had also claimed that every penny has been utilised towards operations and discharge of liabilities. Reid Duke Authentic Jersey
Air India rolls out red carpet for corporates, leisure travellers
State-run Air India has begun rolling out special facilities for corporate fliers as it turns to this lucrative segment to shore up its sagging bottomline. “At Air India, the focus is on fliers now and on improving customer services to attract as many fliers as possible. Our focus is on providing special facilities for corporate fliers, as yields from corporate fliers are the maximum,” a senior executive of Air India said, requesting anonymity. According to the executive, the national carrier is offering corporate fliers services like helpdesk at key airports, lounge facility, improved on-time performance and a huge global network that is complemented by the Star Alliance’s global network. “We will be launching a lot of new flights to complete our connectivity between two key cities and further increase our connectivity to attract business fliers, who prefer a same day return,” the executive said, adding that company executives fly all year round, helping airlines fill seats even in the non-peak season. But it’s not just the corporate fliers who can look forward to more facilities. The executive quoted earlier said, “At the same time, we are also announcing a lot of offers for leisure travellers.” The airline claims a large number of leisure travellers come to them because they offer 25 kg of free luggage in the economy class of domestic flights. All other airlines offer 15 kg of free luggage for domestic class passengers. According to the executive, Air India is set to announce offers for honeymooning couples in a bid to push business class seats. The national carrier is also looking at increasing connections between smaller cities through its regional subsidiary — Alliance Air . “We have called a meeting of transport secretaries of all states on Thursday (May 19, 2016) to discuss connectivity within states. We will offer them flights if they provide us viability gap funding for the losses we make,” the executive said. Doug McDermott Jersey
Smile on face will be a good thing: AI chief tells staff
With rising instances of Air India facing flak for indiscipline and indifference, the airline’s chief Ashwani Lohani has asked the staff to be “courteous and polite” to passengers and said wearing a smile would be a “good thing”. In case there are delays in flights, both cockpit and cabin crew should keep passengers in the loop by providing them information about the reasons for the delay at “timely intervals”, Lohani said. The Air India Chairman and Managing Director said the check-in agents should be periodically counselled to interact with passengers politely. “Their attitude should be positive with a problem solving approach. In fact, all the staff of Air India or its ground handling agencies should be regularly counselled to be courteous and polite,” he said. In a lengthy message, Lohani has sought to sensitise the employees to ensure that passengers have a “good experience” with Air India, especially at a time when the carrier is looking to bring about a turnaround in its fortunes. This comes against the backdrop of multiple incidents in recent times, ranging from controversies involving people with disabilities to bad quality of food , to quarrels among staff, resulting in flight delays. “The cabin crew should greet the passengers while emplaning and deplaning with a ‘namaskaar’ as was the tradition. A smile on the face and conversing sweetly and politely without an iota of irritation would be a good thing,” Lohani said. During Aircraft on Ground (AOG) or progressive delay exceeding 30 minutes, Lohani said, the airport manager and the station manager should immediately reach the site and attend to the passengers. “There should be adequate communication to the passengers and their boarding/lodging needs should be taken care of without delay,” he said, adding that station manager and airport manager have to be proactive and positive with a problem solving approach. Further, he said the “quality of food has to be good” and that special checks need to be done on supplies by chef air. According to him, the captain of a flight should often connect with passengers during the journey and, at the end of first address, using the words ‘Jai Hind’ would make a tremendous impact. Anders Lee Womens Jersey
Low cost airline Air Pegasus to scale up operation
Low cost airline Air Pegasus, part of Decor Group of companies, is planning to scale up its operation in South India by operating more flights to more cities The company launched its daily flight between Bengaluru and Kochi on Wednesday. Kochi is the second city in Kerala and seventh in South India for Air Pegasus in its second year of operation. Air Pegasus managing director Shyson Thomas said the company plans to connect Goa and Bengaluru in June. Further, Tuticorin, Belgaum, Rajahmundry, Goa and Pondicherry are on its radar. Currently it operates in Thiruvananthapuram , Bengaluru, Madurai, Chennai , Mangalore and Hubli Air Pegasus is banking on the demand for IT professionals and the rise in industrial and food processing activity in Kochi to boost traffic . “ A second flight will be operational soon,” said Thomas, adding that Cochin International Airport Ltd. has agreed to exempt Air Pegasus from parking charges at the airport. Adam Oates Jersey
Gujarat Gas FY16 net profit down 65% at Rs 1.53 billion
Piped gas distributor, Gujarat Gas Ltd, reported a standalone net profit of Rs 1.53 billion for the financial year ended March 31, 2016, against Rs 4.44 billion in the previous year, showing a decline of over 65 per cent on a year-on-year basis. The total standalone income from operations stood at Rs 61.06 billion for the year as against Rs 90.06 billion in the previous year. The board of directors recommended a dividend of Rs 2.5 per equity share of face value of Rs 10 per share for the year ended March 2016. For the fourth quarter, company posted standalone net profit of Rs 580 million as against Rs 200 million in the corresponding quarter a year ago, up 190 per cent. Income from operations for the quarter was lower at Rs 13.78 billion against Rs 14.85 billion in the same period last year. Tyler Bertuzzi Jersey
India eyes oil-for-drugs deal with Venezuela to recoup pharma cash
Indian officials say they have proposed an oil-for-drugs barter plan with cash-strapped Venezuela to recoup millions of dollars in payments owed to some of India’s largest pharmaceutical companies. Several of India’s generics producers, led by the country’s second-largest player Dr Reddy’s Laboratories Ltd , bet heavily on Venezuela as they sought emerging market alternatives to slower-growing economies such as the United States. But the unravelling of Venezuela’s socialist economy amid a fall in oil prices has triggered triple-digit inflation and a full-blown political and financial crisis. Unable to pay its bills, the country is facing severe shortages of even basic supplies such as food, water and medicines. Dr Reddy’s wrote off $65 million in the March quarter, which it said was almost all the money it was owed from Venezuela. Rival Glenmark Pharmaceuticals Inc, another major investor, says it is due $45 million. The situation in Venezuela is very precarious … the government knows it needs to do something about the medicine shortage, that’s why it is willing to discuss such a deal,” one Indian official told Reuters. “At this point, even if our companies get back 5 or 10 percent of the payment they are owed, they would be satisfied.” Venezuela’s Health Ministry did not immediately respond to a request for comment. Like pharmaceutical companies globally – which used to enjoy a preferential exchange rate in Venezuela – Indian producers have been left badly stung by the collapse of the bolivar currency. PAYMENT PLAN The Indian officials, who could not be named as they are not allowed to speak to the media, said the trade ministry had proposed a payment mechanism that would allow Venezuela to repay some of the amount owed with oil. The proposal, seen by Reuters, would use the State Bank of India to mediate the transfer. The plan is now awaiting approval on the Indian side from the finance ministry and the central bank, which regulates such payments. India, one of the world’s biggest oil importers along with the United States and China, had similarly elaborate barter deals with Iran , swapping rice and wheat for oil. The officials said Venezuela had been receptive to the plan “in principle”, but not made any concrete commitments yet. Indian officials said a “high level” meeting with Venezuela was due in the coming months to discuss the proposed deal. “The finance ministry has assured us that the government is fully committed to it, but it will take time,” said P.V. Appaji, Director General of the Pharmaceutical Export Promotion Council of India, a body under the country’s commerce ministry. India’s exports to Venezuela between April 2015 and February 2016 almost halved year-on-year to $125.5 million, compared with a year earlier. Most of that was pharmaceutical products. Tyler Ervin Womens Jersey