Currency war will take longer to sort out : experts

With currency row spilling over to countries other

than US and China, experts feel that the vexed
issue needs to be tackled on a gradual process
as each country has its own interests to protect.
INSIDE THIS
In the backdrop of emerging economies seeing
ISSUE: huge capital inflows, the strategies to address
currency-related issues would differ from country
CORPORATE watch to country, they said.

INDUSTRY watch The vexed issue of currency devaluation has been at the forefont of international
fora, with US mounting pressure on China to let yuan appreciate. America has
ECONOMY watch alleged that lower peg of the Chinese currency has resulted in high trade surplus in
favour of the communist country.
FACT OF WEEK
G-20 countries, at their recent summit in South Korea, had pledged to act against
INTERVIEW competitive devaluation of currencies to ensure balanced global economic growth.
US Federal Reserve chief Ben Bernanke said that international monetary system
ZARGONOMICS was not working as well as expected due to "currency devaluation by surplus
countries". These comments were seen as a veiled reference to China.
JOB watch
The issue of competitive currency devaluation assumes importance, since it is no
ENTREPRENEUR longer confined to just US and China. Even Japan and South Korea were reported to
have interfered in the Forex markets to stem the appreciation of Yen and Won
ANSWERS OF respectively.
SYNAPZ QUIZ-2
WITH QUESTION Commenting on the currency controversies, Crisil's chief economist DK Joshi said
that countries have their own interests. "China is resorting to devaluation because of
UPCOMING EVENTS its huge labour force and hence employment to them, US has its own interests, some
middle ground has to be found," he said.

On other hand, loose monetary policies and stimulus efforts in advanced nations has

led huge foreign capital inflows into emerging economies, posing the risk of their
currencies appreciating.

"If there is deluge of capital inflows and it results in appreciation of local currency too
rapidly, some kind of intervention is necessary...," Joshi said.
 THE DERRICK

CORPORATE WATCH
Bribing by big biz houses common: Rahul Bajaj

Noted industrialist Rahul Bajaj said that many top corporate houses indulge in bribing, even as the
government promised that it would take strong action if any such instance was brought to its notice.
Bajaj‟s remark came a day after the Tata Group chairman, Ratan Tata, said that he did not want to
bribe his way into launching an airline. Big corporate houses would find it easier not to be corrupt
than small ones, but they still give money to get their jobs done, Bajaj, the chairman of Bajaj Auto,
said on the sidelines of the World Economic Forum‟s India edition, adding “They (corporate houses)
should not.”

Nooyi, Jha, Pandit among US top paid CEO

Three Indian origin executives -- PepsiCo's Indra Nooyi , Motorola's Sanjay Kumar Jha and
Citigroup's Vikram Pandit -- have found a place among America's top paid chief executive officer,
says a survey.

Nooyi has bagged the 67th slot with a total pay package of USD 13.97 million and Jha got the the
377th place with a total compensation of $ 3.45 million, according to a ranking compiled by The Wall
Street Journal of 456 US companies. While another Indian Pandit got the 450th position in the survey
with a pay package of $ 125,000, which was topped by Maffei, the leader of Liberty Media Corp with
a pay packet of $ 87.1 million.

Maffei was followed by Larry Ellison, Oracle's billionaire founder who received a $ 68.6 million
package and most of that reward came in the form of stock options valaued at $ 61.9 million.
Occidental Petroleum Corp's Ray Irani, bagged the third position with a total compensation of $ 52.2
million.

The recent survey, which covered all 456 of the biggest US public companies with annual revenue of
more than $ 4 billion that filed proxies between October 1, 2009 and September 30, 2010. The survey
conducted by management-consulting firm Hay Group, noted that bonuses jumped by 11 per cent to
a median of $ 1.67 million.

Overall, median total direct compensation for CEOs in the sample rose 3 per cent during their latest
fiscal year. Total direct compensation includes salary, bonuses and the awarded value of stock,
options and other long-term incentives.

At the fourth place is Yahoo's Carol Bartz who took home $ 44.61 million followed by CBS'
Leslie Ray $ 38.93 million. Others on the top 10 list include Philippe P Dauman of Viacom Inc
($ 33.7 million), Marc N Casper, CEO Thermo Fisher Scientific ($ 33.04 million), Raymond
Elliott of Boston Scientific Corp ($ 32.1 million), Ralph Lauren, founder of Polo Ralph Lauren
Corp ($ 27 million) and McKesson Corp's John H Hammergren ($24.5 million).

Hyundai implements new corporate identity standards

Hyundai Motor has come up with an uniform brand identity and competitiveness
across showrooms and workshops for its customers. The implementation of the
new Corporate Identity standards will happen across Hyundai Motor Company
globally. In India, HMIL plans to implement the Corporate Identity at all its 320
Hyundai outlets with the initial phase ending in December 2010 covering 204 outlets and this will
include dealerships, sales, service & Advantage (used car business) outlets. The remaining outlets
will get the new Corporate Identity by end of 2011.

The new corporate identity will be reflected through the main fascia, pylon, entrance gate and
projecting sign at all main customer touch points. HMIL has designed a new 3D chrome signature to
reflect a refined confident brand. This new signature conveys a powerful brand image and reflects the
quality that Hyundai stands for and aims to give Hyundai an upgraded image which is consistent with
its product offerings. The new Corporate Identity implementation will lead to the establishment of a
consistent and enhanced global brand image of Hyundai across India and provide a better and easily
recognizable retail environment for its customers.

Android will beat iPhone: Apple founder

Apple co-founder Steve Wozniak has praised Google's Smartphone operating system Android and
predicted that it will soon surpass the iPhone operating system in both quantity and quality. The
comments by the man who invented the first Mac computer came as Android-powered phones are
fast catching up with Apple's iPhones in market share, and were the starkest illustration to date at
how well Google has managed to close the gap with Apple's once unassailable iPhone.

"The Apple phone has very few weaknesses," Wozniak said. "When it comes to quality, the iPhone is
leading." But he conceded that "Android phones have more features" and deliver more buying
options for those who don't want to be limited to asingledevice. In addition, Wozniak told the
publication that eventually the quality of Android will match Apple's operating system and much like
Windows in the desktop space, Google's mobile platform will become the "dominant" option in the
mobile market.

Unilever plans green drive

Hindustan Unilever has chalked out an ambitious plan to

halve water usage and greenhouse gas emissions by 2020
as the manufacturer of Surf detergent and Lakme cosmetics
launched the Unilever sustainable living plan across the
world. For a company whose products are used two billion
times a day in nearly 170 countries, small steps could make a
big difference to the environment and, at the same time, save
costs.

It is a 10-year plan and sets out over 50 social, economic and

environmental targets. Pointing out to specific examples of
how the sustainability plan would be linked to brands, Mr.
Manwani talked about the company‟s low-cost in-home water
purifier, Pureit, which does not require electricity or
continuous tap water supply. The company also plans to help one billion people in Asia, Africa and
Latin America improves their health and well-being by promoting the use of its Lifebuoy soap to
change their hygiene habits.
 THE DERRICK

INDUSTRY WATCH

Maharashtra rice farmer's inventions put him in Forbes' list

A rice farmer from Nanded village in Maharashtra became celebrity as the 'Forbes' magazine named
him in the Most Powerful Rural Indians list for his innovation in rice production.

Dadaji Khobragade, changed paddy farming by developing a highly successful variety of paddy,
named HMT rice, which gives 80 per cent more yield than conventional varieties. The HMT rice is
sold at around Rs3,200 per quintal. Khobragade said he named the rice after his wristwatch's brand,
Hindustan Machine Tools (HMT).

Presently, Khobragade is landless because due to sudden financial crisis he sold his three-acre
farmland. Khobragade said he is happy that 'Forbes' had recognized his efforts. "I am really happy
being named in the magazine and whatever happened with me, I got nothing with this, still. Neither
did I ask anybody before, nor would I in future. Whatever I have is fine with me," said Khobragade.

"Many people are earning good profits and luxuries due to my work. They are travelling in big cars
and staying in big buildings, and I am still walking due to lack of money. This is my condition and I
have to think about it," he added.

"It was essential to quote a name to my invention, so nothing clicked in my mind apart from the brand
name of my watch, so I named it HMT," said Khobragade.

Sterlite Technologies plans Chinese JV to produce optical fibre

Global telecom and power transmission solution provider Sterlite Technologies and optical cable
solutions provider Jiangsu Tongguang Communication disclosed that they will form a joint venture
company -- Jiangsu Sterlite and Tongguang Optical Fibres -- in China. The joint venture will be
manufacturing, marketing and distributing optical fibre used in the production of fibre optic cables.

Under the agreement, Sterlite will bring expertise in optical fibre technology and Jiangsu Tongguang
Communication will bring fibre cable manufacturing and market expertise in the Chinese market.
"With the continued roll-out of 3G telecom services, China has retained its position as the largest
market for optical fibres in the world. At the same time it believes that China would continue to
develop and upgrade its telecommunication infrastructure to remain globally competitive and this
would ensure that the demand for optical fibres would be sustained over the long term.
2G spectrum scam: Contours of CAG report

The Comptroller and Auditor General report on 2G spectrum allocation has been tabled in Rajya
Sabha.The report details some crucial aspects especially the financial impact and the calculations of
the CAG with respect to the financial impact of the 2007 decision of the department of telecom to
issue licences to several new entrants.

The CAG has found 85 of the 122 licences granted to be ineligible in its report. The CAG report says
that the 2G licenses were awarded in an unfair, arbitrary and inequitable manner.

The report has charged the department of telecom and several telecom companies' violations in the
2G spectrum award process. The CAG added in its report that there are some existing operators who
have additional spectrum.

And Rekha Gupta, Deputy Comptroller and Auditor General said, The entry fee of 2001 adopted for
migration of existing service operators was extended to the new operators without decision on
determination of spectrum prices. The decision of the Cabinet in 2003 for DoT to discuss spectrum
pricing and efficient allocation of spectrum with the Finance Ministry were ignored despite the finance
ministry's advice due to which the UAS licences continued to be awarded in 2008 at a price
discovered from a nascent market of 2001.

Bharti Airtel unveils new logo

Telecom major Bharti Airtel said its subscriber base has crossed the 200
million mark, with nearly 150 million users in the domestic market alone,
and unveiled a new logo to mark the achievement.

World's fifth largest Telco, Bharti Airtel unveiled its new 'global and youthful
avatar' on Thursday. Besides the logo, the company has also changed the
signature Airtel tune, composed by Oscar winner A R Rehman.

The company has 40 million users in Africa, while the rest are in Bangladesh and Sri Lanka. The re-
designed logo would be for the Indian as well as overseas market to bring operational synergy across
the company's business ventures.

Although the company declined to share investment figures, it indicated that the branding exercise
could cost hundreds of crores. The brand launch in India will be followed by Africa, Sri Lanka and
Bangladesh.
 THE DERRICK

ECONOMY WATCH
India vital for world growth: Cambridge

India's economic growth despite many challenges means that "there must be hope for all countries of
the world", according to a prominent Indian-origin economist at the University of Cambridge.
Professor Ajit Singh, an Emeritus Professor at the university, has recently been given the Glory of
India Award for "individual excellence, excellent performance and outstanding contribution for the
progress of the nation and worldwide." Speaking after the award, Singh said: "The Indian case is
particularly helpful to the rest of the world - if a undisciplined, chaotic and imperfectly democratic
country can do so well as it has been doing, growing at 10 per cent a year for twenty years, then
there must be hope for all countries of the world."

Singh graduated from Punjab University and obtained his Ph.D at the University of California,
Berkeley. He began teaching economics at Cambridge in 1965. Singh said: "Sixty years ago, two
men from the third world came to the fore. These were Mao Zedong, a great leader of the Chinese
people who wanted China to rise again and be a model Communist State, and Jawaharlal Nehru,
who wanted India to also rise but his dream was that of a mixed economy with democracy".

He added: "Sixty years later, it seems China is ahead but it is too early to judge who will eventually
win the race. The breathtaking economic progress of China and India since their independence from
colonial rule is the inspiring story of the last three decades, and long may it continue". Singh has
been a senior economic adviser to the governments of Mexico and Tanzania and a consultant to
various UN developmental organisations, including the World Bank, the ILO, UNCTAD and UNIDO.

During his Economics career in Cambridge, Singh has published several books and monographs as
well as nearly 200 research papers, including 90 in refereed economic journals. Singh has recently
been appointed to the Tun Ismail Ali Chair at the University of Malaya.

Primary market corners 27% of FII money

With activity in the primary market rebounding in October and November, thanks to the Rs 15,154
crore Coal India issue, foreign institutional investors have chosen to channel their investments into
new paper. Overall, the primary market has been witnessed robust inflows from FIIs this year and
cornered around 27% of equity market inflows. Of the total FII investment of $28.4 billion, about $7.7
billion have come into the primary markets, according to Sebi data.

Fund raising by way of initial public offerings (IPOs), follow-on public offerings (FPOs) and qualified
institutional placements (QIPs) have totalled a record Rs 87,733 crore in the year till date, as per data
from SMC Global Securities, beating the previous high of Rs 65,344 crore in calendar year 2007.

Industry observers believe that public issues such as Coal India are a great way for the FIIs to play
the India game because of the high quality of the issue and reasonable valuations. “Healthy FII
participation is welcome, especially since the participation from the domestic institutional investors
has been largely muted in the past few months,” said Saurabh Mukherjea, head of equities at
Execution Noble.

Market participants estimate that at least Rs 25,000-30,000 crore worth of additional public issues will
hit the market in FY11 and another Rs 5,000-10,000 crore will come from the private sector. “The
Coal India issue has already been a huge draw for the FIIs. And with a raft of PSU issues lined up
this year, FIIs will continue to invest as long as the pricing is reasonable,” said Mukherjea.
Says Prithvi Haldea, MD of Prime Database, FIIs are always scouting for good investment
opportunities, be it primary or secondary market. “For investing in an IPO, FIIs primarily look at the
issue size, company fundamentals and pricing.”

The trend has not affected liquidity in the secondary market this time around. “I don‟t think investment
in the primary market has reached an alarming level,” said Ajay Parmar, head – institutional equities,
Emkay Global Financial Services. According to him, inflows in the primary market will be a cause for
concern when it reaches 2-2.5% of the BSE market cap. At present, the figure is about 1%.

India lost $ 462bn in illegal capital flows: Report

Global Financial Integrity, which is based in Washington, studies and campaigns against the cross-
border flow of illegal money around the world.

According to the report “poor state of governance" had been reflected in a growing underground
economy in India since Independence in 1947. India has lost more than $460bn since Independence
because of companies and the rich illegally funneling their wealth overseas, a new report says.

The illegal flight of capital through tax evasion, crime and corruption had widened inequality in India.
Former IMF economist Mr Kar stated that almost three quarters of the illegal money that comprises
India's underground economy ends up outside the country.

Adjusted for inflation, that all added up to $213bn missing since 1948. Taking estimated investment
returns into account, Mr Kar calculated that was worth $462bn in today's money.

The figure could be much more, he warned, as it did not include smuggling and cash transfers
outside the financial system.

India to be world's fastest growing economy by 2012: StanChart

In a global study by British banking giant Standard Chartered, India is

set to become the fastest growing major economy in the world by 2012
and will be third largest by GDP-size in the next two decades, behind
China and the USA.

StanChart's Head of India Research quoted “India would have overtaken

Japan and will be trailing the US by a slim margin by 2030.

China would be at a comfortable number one position”. StanChart

expects the country to grow at an annual 9.3 per cent for the next two
decades and the per capita income of Indians will shoot up to $7,000 by 2030 from the current
$1,000.

For India, the biggest positive would be the conducive demographics and the country will continue to
grow on the domestic demand front rather than being an export hub like some of its Asian peers
 THE DERRICK

FACTS OF THE WEEK

 Pune –based Thermax is set to partner Icelandic firm Reykjavik Geothermal to set up a
geothermal power project in India. A pilot 3 MW project is slated to be set up in Puga valley in
Ladakh, first ever project in India
 Electronic payments technology co. VISA has developed a payment solution using the unique
ID (UIDA). The solution is designed to provide payment infrastrucure for Aadhaar holders,
especially un-banked & under-banked.
 GM is recalling 13,780 Buick Lucerne & Cadillac DTS cars in US because of a flaw that can
cause power steering fluid to leak and ignite a fire in the engine.
 Sahara India pariwar is set to buy the Landmark Grosvenor hotel in central London, once
home to the Duke of westminster.
 Kapil sibbal is the new minister of communicatin & IT , after resigning of A. Raja
 Skoda is planning to partner with Maruti suzuki for developing small car, below the price range
of Rs. 3-5 lakh
 Axis bank buys Enam, one of dalal street‟s most influential brokerage-cum-investment banks
for Rs. 2.067 crores
 Coca-cola along with its joint venture partner Nestle, that owns Nestea launched botteled ice-
tea with lemon flavour. The Beverage Partners Worldwide(BPW) is likely to introduce more
flavour such as peach, mango. Orange, lime, pear, and honey also
 Japanese automaker Nissan Motor India has appointed Dinesh Jain as the Chief Executive
Officer of its alliance partner Hover Automotive India.
 THE DERRICK

INTERVIEW
'No knee-jerk reaction to TRAI call'

New telecom minister Kapil Sibal , in his first exclusive interaction after taking charge of the tainted
ministry, said the government will examine TRAI's recommendations regarding cancellation of
licences, but will not take any knee-jerk reaction. He said the government would examine if it has the
powers to cancel the licences. On Thursday, the telecom regulator had asked the Centre to cancel 62
licences of five telecom operators for failure to roll out services and for delayed launch of mobile
services. Edited excerpts:

TRAI said the government must cancel 62 licences of five telecom operators, including joint
ventures of international operators like Telenor, Emirates Telecommunications and Sistema.
What is your ministry's take on this?

As far as TRAI's recommendations are concerned, these are very exhaustive and we will have to
consider them closely. We will have to examine if these companies have met the rollout obligations or
not. We will have to look at the contracts and see whether we have the power to cancel (licences). Is
there anything (in the contracts), which allows us to give them time? Is it in-built in the contract? If we
were to cancel, what will be the consequences? So, I don't see any knee-jerk reaction. We will
consider it thoroughly and make sure that justice is done.

This must be music to the ears for companies whose licences TRAI had recommended be
cancelled.
I want to make one thing very clear. This particular sector is very dear - it is very important for us
because it generates huge revenues. And I think it has enormous potential, which has not yet been
realised.

So, we consider this sector very important for the economy. The second point is that we want to
make sure that the government and the ministry work in a totally transparent and unbiased manner.
Third, all stakeholders must have a level playing field. We must, therefore, make sure that there are
no negative signals from the ministry which suggests that we want to disturb the equanimity that
prevails. But we will certainly act if we find if there is any criminal wrongdoing. This government has
always believed in it.

We are not the ones who stall proceedings in the house. After all, we did not stall proceedings in the
house when the Tehelka scam took place. There was no JPC, though we asked for it, but we didn't
obstruct the house in this fashion. You give me one session, since 2004, where the BJP has not
obstructed the house. When the petrol pump scam took place there was no JPC. Is there some
action being taken in Karnataka? Is there a JPC or some other state investigative authority that is
investigating in Karnataka on the mining front?

Should there be probe into the existing telecom policy as demanded by the Opposition? Do
we need a new one?

I don't want to comment on this. This is contrary to what all our forefathers wanted us to do in the
House. And the Opposition is behaving so irresponsibly and ultimately the people of this country will
have to decide whether this is the kind of Parliament they expect. We want a debate. We are ready
for a debate and our parliamentary affairs minister has expressed that. We respect the Opposition.
We have great respect for their leaders. But there is no substitute for debate.

Do you think your skills as a lawyer is helping you now?

This has nothing to do with law. It's all common sense. Common sense will tell you that what
Subramaniam Swamy is doing is contrary to every principal of reasoning.
 THE DERRICK

ZARGONOMY
Leapfrog: To surpass your competition, usually by engaging in one gigantic, hopelessly ambitious
leap of faith

RFM: (Regency, frequency, monetary) analysis is a marketing technique used to determine

quantitatively which customers are the best ones by examining how recently a customer has
purchased (regency), how often they purchase (frequency), and how much the customer spends
(monetary). RFM analysis is based on the marketing axiom that "80% of your business comes from
20% of your customers."

Churn rate: Chun rate is a marketing metric that measures customer or employee attrition, and is the
number of customers who discontinue a service or employees who leave a company during a
specified time period divided by the average total number of customers or employees over that same
time period.

The Long Tail: Long tail refers to the statistical property that a larger share of population rests within
the tail of a probability distribution than observed under a 'normal' or Gaussian distribution. This has
gained popularity in recent times as a retailing concept describing the niche strategy of selling a large
number of unique items in relatively small quantities – usually in addition to selling fewer popular
items in large quantities. The concept was popularized by Chris Anderson

Blended Learning: Blended learning is a concept which involves using a variety of learning styles
within one training package to help complement individual different learning styles.

Downsizing: This is a term that has been used for quite some time. It is a „polite‟ word for the
process of sacking staff, usually in order to reduce overheads. Alternatives are 'Change Management
Exercise', 'Redundancy Project', 'Business re-organization', 'Downshifting', 'Business Process Re-
engineering' 'Rightsizing'.

Human Capital Management (HCM): In a fast changing world HR has slowly evolved into HCM.
HCM is essentially about evaluating the contribution of employees to a business and what
value/assets they add to a Company

Bootstrapping: In business, this term refers to the process of financing a business by internally
generated cash flow as opposed to "kick-starting" the company with external investment capital. It
means keeping salaries and expenses down while generating customer sales to fuel the growth of
the venture.

Futures Contracts: A financial contract entitling, in principle, its holder to buy or sell a given
commodity at a given price for a certain period of time. Such contracts are entered into between
buyers and sellers in a market and are a zero sum game. They are simply a "paper" game used
primarily for hedging (avoiding risk) purposes.

Intellectual Property: This term refers to all assets of a company that have an intellectual nature to
them. They are often referred to as "soft" assets such as trademarks, logos, patents, software, trade
secrets, brands, industrial designs, music, colours, designs, etc. They usually have intangible value
unlike hard assets such as land, buildings, and equipment.
 THE DERRICK

JOB WATCH

UCO BANK

Personnel Services Department, Head Office -2, 3-4, DD Block, Sector - 1,Salt Lake, Kolkata -
700064.

Recruitment of 1050 Probationary Officer in JMGS I in Generalist Cadre UCO Bank invites
applications On-line only from Indian Citizens for the posts of Probationary officer

Probationary Officers (PO): 1050 posts (UR-527, SC-156, ST-80, OBC-287) ([PH-26])

Pay Scale : JMGS-I Rs.14500-25700/-

Age : 21-30 years. Relaxation in age as per rules

Qualification: Graduation in any discipline with 55% marks (50% for SC/ST/PC category).

Application Fee: Rs. 400/- for General/ OBC and Ex-servicemen (Rs. 50/- for SC/ST/PH
candidates). The fee should be deposited in the cash at CBS branches of UCO Bank through
Payment Challan only.

Section by Written test on 30/01/2010 and followed by Interview for those who qualify in written
test.

How to Apply : Candidates are requested to apply on-line between 09/11/2010 and 30/11/2010
only through website. After applying on-line, the candidates should obtain a system-generated
printout of the application and keep it with himself/herself for future use and reference.
 THE DERRICK

ENTREPRENEUR
Sunil Mittal

Sunil Bharti Mittal (23 October 1957) is an Indian telecom

mogul, philanthropist and the founder, chairman and managing
director of Bharti Enterprises. The US$7.2 billion turnover
company runs India's largest GSM-based mobile phone service
and world's fifth largest wireless company with over 190 million
customers across 19 countries in Asia and Africa. He is the son
of Sat Paul (former MP) and Lalita.

In 2007, he was awarded the Padma Bhushan, India's third

highest civilian honor.

Early Life

Sunil Mittal, was born in Ludhiana, Punjab, India. His father, Sat Paul Mittal had been the Member of
Parliament (M.P) from Ludhiana. He first joined the Wynberg Allen School in Mussoorie, but later
attended Scindia School at Gwalior and he graduated in 1976 from Punjab University, Chandigarh,
with a Bachelor of Arts and Science.[6] His father died of cardiac arrest in 1992.

Bharti Group

Mittal built the Bharti group along with his brothers Rakesh and Rajan,[1] becoming India's largest
mobile phone operator in just ten years. The UK-based telecommunications company, Vodafone and
Singapore's SingTel both own stakes in the recently renamed flagship company Bharti Airtel. The
group also has partnerships with Axa for insurance and with the Rothschild family. Airtel now serves
over 190 million customers across India, Sri Lanka, Bangladesh, Burkina Faso, Chad, Congo
Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger,
Nigeria, Seychelles,Sierra Leone, Tanzania, Uganda, and Zambia.

Entrepreneurial Ventures

A first generation entrepreneur, Mittal started his first business in April 1976 at the age of 18, with a
capital investment of Rs 20,000 (U$500) borrowed from his father. His first business was to make
crankshafts for local bicycle manufacturers.

In 1980, he along with his brothers Rakesh, Rajan started an Import Enterprise named Bharti
Overseas Trading Corporation He sold his bicycle parts and yarn factories and moved to Mumbai.

In 1981, he purchased importing licences from exporting companies in Punjab He then imported
thousands of Suzuki Motors's portable electric-power generators from Japan. The importing of
generators was suddenly banned by the then Indian Government and just two licences to
manufacture generators in India were issued to two companies.

In 1984, he started assembling push-button phones in India,which he earlier used to import from a
Taiwan company, Kingtel, replacing the old fashioned, bulky rotary phones that were in use in the
country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with
Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s,
Mittal was making fax machines, cordless phones and other telecom gear. He started marketing
telephones, answering/fax machines under the brand name Beetel and the company picked up really
fast.". He named his first push-button phones as 'Mitbro'.

In 1992, he successfully bid for one of the four mobile phone network licences auctioned in India.
One of the conditions for the Delhi cellular license was that the bidder have some experience as a
telecom operator. So, Mittal clinched a deal with the French telecom group Vivendi.

He was one of the first Indian entrepreneurs to identify the mobile telecom business as a major
growth area. His plans were finally approved by the Government in 1994 and he launched services in
Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer cellular services under the
brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million
mobile subscriber mark. Bharti also brought down the STD/ISD cellular rates in India under brand
name 'Indiaone'. IndiaOne was India‟s first private national as well as the international long-distance
service provider, and, thus, became a major factor in Bharti's success by providing services cheaply.

In November 2006, he struck a joint venture deal with Wal-Mart, the US retail giant, to start a number
of retail stores across India.

In May 2008, it emerged that Sunil Bharti Mittal was exploring the possibility of buying the MTN
Group, a South Africa-based telecommunications company with coverage in 21 countries in Africa
and the Middle East. However, the talks fell apart as MTN group tried to reverse the negotiations by
making Bharti almost a subsidiary of the new company.

In May 2009, Bharti Airtel again confirmed that he was in talks with MTN and companies agreed to
discuss the potential transaction exclusively by 31 July 2009. Bharti Airtel said in a statement "Bharti
Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN
Group".

Philanthropy

Mittal has also been working towards educating India through the Bharti Foundation. The foundation
has established over 200 schools and libraries in India, as well as providing scholarships for college
students. For his work with the foundation Barron's named Mittal number 16 on its 2009 list of the
world's top 25 philanthropists. He was also named as top philanthropist of the Year at the Asian
Awards 2010 in London.
 THE NEWS LINE

ANSWERS OF SYNAPZ QUIZ 2

(Answer in bold font)
Which brand has a Euro Senate, a body of elected employees from each of its strategic business
units, to provide popular voices in the company's decision-making process?

a) EUREKA FORBES

b) TUPPER WARE

c) AMWAY

d) VIRGIN

e) NONE OF THESE

Which bank was the first bank in India to launch a credit card for farmers?

a) CANARA BANK

b) ALLAHABAD BANK

c) STATE BANK OF INDIA

d) PUNJAB NATIONAL BANK

e) GRAMEEN BANK

Recently, this brand had to revert to its original logo after users on social media sites rejected its new
look. Name it.

a) LEVIS

b) GAP

c) ZODIAC

d) RUGGERS

e) SHOPPERS STOP

An altercation between two players that also got physical during an IPL cricket match has now got the
same players an opportunity to model together for a recent ad campaign of an Indian brand. Name
the brand.

a) FUTUREBAZAR.COM

b) PEPSICO

c) COCA COLA
d) VISA ELECTRON

e) WORLD CUP 2011

What is common to Queen Elizabeth I, Charles Dickens, Greta Garbo, Mahatma Gandhi, John
Lennon and recently Mark Twain?

a) Mont Blanc has designed special edition pens in their honour

b) In tushad wax museum all of them were fabricated in London

c) Hollywood has started one movie series for all of them

d) BBC has telecasted documentry for all of them in the series'world most influential personality'

e) None of these

Which corporation is considered to be the first to use the technique of benchmarking in the late
1970s? It took all the key parts of business, from production to sales and maintenance, and
measured them against their counterparts in other companies abroad as well as at home.

a) CANON

b) XEROX

c) APPLE

d) MICROSOFT

e) GENERAL ELECTRICAL

Which company is set to become the largest Indian employer in the US by the year-end?

a) AEGIS

b) WIPRO

c) TCS

d) SATYAM

e) NIPUNA

For a brief period of one year, the RBI issued notes for circulation in a foreign country. Name the
country.

a) PAKISTAN

b) BANGLA DESH

c) NEPAL

d) BHUTAN

e) BURMA
Connect a Govinda movie to a consumer durable brand that uses the tag line "the name is enough"
and what do you get?

a) NAVRATNA OIL

b) TVS MOTORCYCLE

c) PONDS DERMICOOL

d) KHAITAN FANS

e) USHA FANS

This first TV commercial for this organization was conceived and completed in two weeks, became
the most-watched on YouTube, and was aired during the recent Commonwealth Games. Name it and
the ad agency behind it.

a) Rail Gaddi, the Indian Railways commercial produced by O&M

b) Rail Gaddi, the Indian Railways commercial produced by Piyush Pandey

c) ONGC commercial produced by O&M

d) Hindustan coppers commercial produced by O&M

e) 'Incredible India' commercial produced by O&M

Whose aircraft's body was the first one to be painted all black after getting permission from the
federal government in the US? It was officially called the Big Bunny and the owner called it the Ugly
Duckling

a) Hugh Hefner, the founder of Playboy Enterprises

b) Waren Buffet

c) jack welch,CEO Gnerneral Electricals

d) Andre Agasi,Iconic tennise player

e) Tom Cruze,Famous hollywood hero

Who is the new brand ambassador for Toyota's Etios?

a) A R REHMAN

b) SAINA NEHWAL

c) SACHIN TENDULKAR

d) ABHISHEK BACHHAN

e) SHAHRUKH KHAN

Which Indian Bank Is Promoted By 20th Century Finance Corporation And Keppel Tatlee Bank Of
Singapore?

a) CENTURIAN BANK
b) AXIS BANK

c) YES BANK

d) ICICI

e) HDFC

The term is derived from Greek word 'oikanomia' which means' house management'................

a) ECONOMY

b) FINANACE

c) CENTRAL BANK

d) LEASE

e) MORTGAGE

FIRST INDIAN WOMEN CEO OF A FOREIGN BANK?

a) Indira nooyi

b) Chanda Kochhar

c) Chandra

d) Tarini Vidya

e) Sudha murthy

WHICH FINANCIAL GIANT IS REFFRED AS 'THUNDERING HERD'?

a) LEHMAN BROTHERS

b) MERILL LYNCH

c) J P MORGAN CHASE

d) MORGAN STANLEY

e) AIG

Who has set up a website, Beta Labs, to interact with its visitors by letting them test un-released
items?

a) NOKIA

b) SUN MICROSYSTEM

c) SAMSUNG

d) LG

e) SANSUI
General MacArthur invited whom to rebuild the Japanese industry? "Profit in business comes from
repeat customers, customers that boast about your product and service, and bring friends with them,"
the person said

a) EDWARD DEMING

b) JACK WELCH

c) AKIO MORITO

d) STEVE JOBS

e) NONE OF THESE

The founder of a now-turned MNC first started with a factory for drying and grinding chicory for the
coffee trade in the 1830s. Then it experimented with drying vegetables and seasonings. Identify it.

a) KNORR SOUPS

b) KITCHEN OF INDIA

c) GSK

d) MAGGI(NESTLE)

e) PARLE

Which brand is considered India's biggest fast-moving consumer goods brand at street price or retail
value?

a) McDowell's

b) LUX

c) LIFEBUOY

d) NIRMA

e) GHARI DETERGRNT

Identify this person

a) Mark Juckerbergs

b) Steve Jobs
c) Akio Morita

d) Sergy Brin

e) Larry Page

Identify the logo

a) SKS finance

b) Grameen Bank

c) NABARD

d) SIDBI

e) CAPART

THE DERRICK

UPCOMING EVENTS
OPEN-HOUSE DISCUSSION ON THURSDAY (25 November 2010) , TOPIC IS ON CORRUPTION
NOTICE FOR THIS WILL BE PUBLISH VERY SOON

SYNAPZ QUIZ 3 ON FRIDAY (26 November 2010) FROM 3 P.M TO 6 P.M.

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