Thursday, December 31, 2009
How can a B2b site help to reduce food product marketing cost?
Friday, December 25, 2009
Looking back at 2009
Here’s how the year unravelled:
The year 2009 started with the first black American becoming the President of the US, Barack Obama. In his first year in office, Obama overturned a prohibition on federal funding for stem-cell research, eased some restrictions on dealing with Cuba, pushed Congress to pass the health-care reform, promised to close the detention camp at Guantánamo, and pledged a cut in America’s emissions. He was awarded the Nobel peace prize, though many said this was premature. He defended the use of force in “just wars”.
American troops withdrew from Iraq’s big cities in June. Earlier Obama presented a plan to withdraw most troops from Iraq in 2010. Sporadic bursts of suicide-bombings that killed scores of people continued to plague the country.
Efforts to stabilise Afghanistan were hampered by a disputed presidential election. Amid claims of corruption and poll-rigging, Hamid Karzai was declared the winner, but only after his remaining rival pulled out of a run-off ballot. The war in Afghanistan continued to fight the resurgent Taliban.
The violence also intensified in Pakistan, with the most savage terrorist attacks carried out in Peshawar and Rawalpindi, besides other areas.
In the Lok Sabha elections in India, the UPA Government headed by the Congress won a thumping majority, this time even without the Left’s support.
China’s economy began to roar ahead again. Imports and exports grew following a sharp decline and its returning appetite for raw materials was partly responsible for rise in commodity process.
Governments around the world took measures to tackle the worst economic crisis in decades as unemployment shot up. Stimulus packages were announced by several governments after some leading banks went bankrupt or were taken over by the other banks. As a result of these measures, many economies seemingly emerged from recession. The IMF, and others urged countries to take steps to unwind their stimulus schemes as a result of increasing budget deficits.
An Air France jet en route from Rio de Janeiro to Paris crashed into the mid-Atlantic in June killing 228 people, the worst plane crash in a decade.
After a quarter of a century of conflict, Sri Lanka’s civil war came to an end when the army overwhelmed the last remnants of the rebel Tamil Tigers. Thousands were killed in the final days of fighting and up to 300,000 were displaced.
Australia suffered its worst-ever outbreak of wildfires in February, in which more than 170 people died across Victoria. Australia was also criticised for the racial discrimination and physical assault against Indian students.
The H1N1 influenza virus, or swine flu, spread from Mexico prompting WHO to declare a global pandemic. Countries advised their citizens to restrict travel and avoid public places. At least 9,500 people worldwide are thought to have died from the disease so far.
Hordes of environmental activists mingled with heads of governments at the Copenhagen conference on climate change, at which governments tried to thrash out agreements to reduce emissions.
Its time now to welcome the new year and hope that business in 2010 will be much better.
How can businesses go green?
COPENHAGEN SUMMIT – A Success or a Failure?

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Wednesday, December 23, 2009
Why is climate change convention important?
Tuesday, December 22, 2009
The extended trading hours and its implications
The opening bell in the two top stock exchanges in India, the NSE and the BSE, will ring 55 minutes earlier, at 9 am from January 4. This is an attempt to boost trading volumes and correlate better with other Asian bourses. The close of trade timings is retained at 3.30 pm.
There has been large scale apprehension about the change of timing. While large brokers can quickly adapt to the additional trading hours, it will not be so easy for smaller stakeholders. The decision to postpone the implementation of the revised timings to Jan 4 gives the smaller players the much-needed breather and time to adjust. But are the brokers ready? Blame it on the human nature to be averse to changes or real operational issues, marketmen may not be quite pleased with the alteration. While the equity markets are quite robust, the banking system is not geared up to handle the pressure. It needs to make available margin money to traders and customers early to allow trading to begin at 9 am. There is also the stress factor that gets added.
What is SEBI’s rationale?
The Sebi’s rationale for extension in trade timings is rooted in the fact that securities market should be aligned with the currency markets. It is also a global practice that all large markets open by 9 am. Asian markets especially Japan, Korea, Taiwan, Singapore and Hong Kong open for trading much ahead of the Indian time. So the associated fear is that some of the trade might shift to Singapore and Hong Kong exchanges in the long run if Indian markets do not open early. However since the US, the UK, and Hong Kong markets are highly liquid compared with Indian markets, the rationale for the Indian exchanges to copy the timings doesn’t hold teeth.
Also extended hours will mean changing the working processes, more overheads, multiple shifts and overtime wages for the employees. Infrastructure hurdles can be overcome if everyone – the regulators, the exchanges, the banking system, and the intermediaries such as brokerages and traders – decide to scale up with better technology and processes.
So, is the move good for India?
The whole point of having an exchange is to let people convert information into money. The longer the trading hours, the less the pile-up of information that cannot be acted on. Given the international aspirations that India has, it must go for such realignments. Although there is no linear co-relation between longer trading duration and higher volumes, it could be the case in future and help businesses grow and be receptive to the international changes. It might be a good move for the development and synchronisation of the currency and capital markets in the long term. The cost related to process changes although may seem cumbersome, but similar changes have taken place in the past. This is a picture of the dynamic environment that we are operating in.
Sunday, December 20, 2009
How do you welcome 2010?

- Do not hold a wallet out filled with cash.
- Take utmost care of the credit cards and ATM cards. Do not hold them in public view. Use them only when you are among the trustworthy people.
- Beware of your surroundings. Do not pick anything left on the street or anywhere else. Many a times, packed gifts items may turn out to be explosives.
- Avoid too much crowd. Party only in safe locations where you find police personnel patrolling the area or under enough security arrangements.
- For the benefit of the society, when you find any suspicious thing left in a public area, inform the police immediately.
- Have emergency numbers handy. Carry first-aid.
- Avoiding drunken driving. Too many lives are ruined by drunk driving.
- Do not let your children use costly materials like iPods, mobiles, etc. It may be robbed amongst the crowd without your knowledge.
- If you are travelling in a private vehicle and are not driving, make sure that you are not under the influence of alcohol. The driver may take advantage of the situation.
- If you are going out for a New Year party and you are driving, you will need to have a Plan B prepared in advance in case you overindulge. Any of these might do: make an advance taxi reservation, have a hotel room reserved, and take along a designated driver who doesn’t drink.
- Relax and enjoy yourself! After this past year, you deserve some real fun. And you’ll be able to have a great time because of the contingency plans you put in place in advance.
Saturday, December 19, 2009
Business 2010 - New strategy for small business owners
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Thursday, December 17, 2009
Telangana formation raises political and business concerns
The people of Andhra Pradesh are going to remember the year 2009 for its rarity and uniqueness. For the otherwise peaceful state, the year presented some of the most unlikely of events it had experienced since its formation. It began with Ramalinga Raju, a high-flying IT czar, admitting to massive fraud and diversion of funds. It is now ending with a bitter battle on the streets of the state over the formation of Telangana. The champion for the formation of a new state Telangana is the Telangana Rashtra Samiti.
Will it be business as usual after the formation of Telangana?
There are economic, political, and social repercussions of the decision to carve out a separate state of Telangana. The principal opposition party at the centre, the BJP, has accused the government of playing with the sensitivities of the people on the Telangana issue and reiterated its demand for a roadmap on the creation of a separate state. There is polarisation even among the members of the Congress party, both at the centre and the state. And the other parties are singing the popular tune so as to not lose its voter base.
To make the going difficult for the Congress, there has been a revival for the call for the trifurcation of UP, creation of Gorkhaland, Vidarbha and so on. The ease to give in to the demands of TRS Chief KCR has opened up a Pandora’s Box. The demands arising will be never ending and the centre’s biased attitude for certain states will neither be accepted by public nor by political parties. Hence a cautious stand by the government is of prime importance otherwise the situation in the country can turn volatile and violent.
There’s also a concern that the image and business of sectors such a real estate, IT and pharmaceuticals could take a beating, especially if Hyderabad is also changed as a result of bifurcation or trifurcation, or if the newly-formed state(s) gives preference to local workers. IT firms may explore locations within and outside the state to shift operations. There may be concerns for the ongoing projects like Outer Ring Road, Metro Rail, etc where a lot of investment has been done. IT being the largest employer in Andhra Pradesh, it’s necessary to prevent any kind of uproar from escalating. The industries need the government support for their smooth functioning.
As a result of division of the state areas like Warangal,Vishakhapatnam, Vijaywada, Kurnool, etc may gain increased attention and will stand to gain in terms of steep rise in real estate prices, increase of business opportunities, and development of SEZs.
Therefore, it’s up to the government to take a wise decision on the Telangana front.
Christmas may bring cheer to the manufacturing and export sector

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Copenhagen forum sees Natural Gas as key to transitioning to a low-carbon economy... Compared with coal, natural gas allows a 50-70 percent reduction in greenhouse gas emissions so could be a good complement to the wind and solar generators that will be the backbones of a low-carbon electricity system...
Metal exporters in India
The aluminium industry in India experienced rapid success in the last decade owing to rise in advanced technologies and utilisation of both domestic and international resources. This had led to increased investor confidence. Since the consumption of aluminium is fairly low in India, the surplus production can be used to export aluminium to other parts of the world that uses it for manufacturing aircraft, automobiles, etc. Every small exporter can take the advantage of this global demand, http://e-tigers.net is a market place where exporters can attract global buyers.
Hindalco, Indal and Nalco are the prominent manufacturers of aluminium in India. Iron and Steel proved the most lucrative for the Indian metals and mining industry in 2008, generating total revenues of $64.7 billion, equivalent to 74% of the industry’s total value. Steel industrial reforms – particularly in 1991 and 1992 – have led to a strong and sustainable growth in India’s steel industry. From 1992 to 2008, the production of finished steel has grown from 14.33 million tonnes to 46.575 million tonnes. However steel production in India is hampered by power shortages and low labour productivity. India is the seventh largest steel producing company in the world.
The major producers of steel in India are SAIL, Tata Steel, RNRL, etc. Using copper in medicine is an ancient Indian practice. Copper industry in India takes up about 3% of the entire world market for copper. Sterlite, Hindalco and Hindustan Copper are the three major copper companies in India and they have contributed to India’s transformation in market status from net importer to net exporter. Other factors for the growth of copper include industrial development in India, domestic increases in the construction, power and telecommunications, and automobile sectors.
There have also been many acquisitions of foreign companies by Sterlite and Hindalco hence furthering India’s global presence in the copper industry. The brass industry in India has been hit by the economic slowdown following sharp erosion in its demand in the world market. This has led to drastic fall in prices and livelihood of many brass dealers being affected. India imports almost 70% of the total brass that it consumes. A sharp increase in the value of the dollar has also made the Indian imports more expensive.
Small manufacturers & exporters should use internet to expand the business horizon
International product life cycle is different in different countries. A product can be growing in one market, maturing in another and declining in some other market. This means that a firm needs to have a presence (without any time lag) in the markets where it can get the maximum benefit. So, small firms can use the Internet to overcome their disadvantage in size to reach customers in international markets.
Small manufacturers and exporters can also use web platform like http://e-tigers.net to cut costs since Internet replaces certain intermediaries’ functions, let potential customer to know about your products, thus grab business opportunities. It’s an opportunity for the small manufacturers and exporters to find the market where inexpensive raw materials can be purchased, demand for their product exists, and where their products can be exported at the lowest transportation costs.
Thus, the Internet enables faster and more informed decision making. The benefits of globalisation are better achieved by realising the ways to reach the markets with the best possible route available and nothing better than making Internet as a key strategy for growth.
Wednesday, September 23, 2009
Indian Exporters in India
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