Daily Excelsior...Business

FICCI calls for intra and inter-regional tourism marketing ....

Hardware industry seeks excise rate cut .....

Wipro launches notebook for Rs 55,000 .....

US tops rankings in global IT report, India ranked 45th ......

AI, IA heading towards operational integration

NEW DELHI, Dec 10: Just when the Naresh Chandra Committee has recommended 49 per cent Foreign Direct Investment (FBI) in domestic airlines, the operational integration of Air India (AI) and Indian Airlines (IA) is gathering momentum.

Surplus employees of one carrier will now work for the other. Officials say the ultimate aim is emergence of a single national carrier with a combined fleet of 100-odd aircraft like any other mega international airline.

Senior and middle-level officials of the two airlines are working together for greater coordination in fleet deployment, joint marketing, tariffs, flight schedule and utilisation of bilateral aviation rights available to India.

For instance, airport security operations in Delhi are being handled by ia while in Mumbai it is handled by AI. The excess AI employees in Delhi have been deployed to offer their services to IA. Financial implications in terms of salary and allowances will be adjusted based on an internal agreement between the two companies.

An integrated frequency scheduling programme is set to take off from April 2004. Free interlinking between two airlines has already been rolled out so that a passenger holding an AI ticket can fly IA. To start with, the process has been rolled out in three sectors including Delhi-Bangkok, Delhi-Singapore and Chennai-Singapore.

In addition, free endorsability in the Gulf sectors including Delhi-Muscat, Kochi-Muscat, Calicut-Dubai and Kochi-Dubai routes have been approved. The integration process is being rolled out in phases. In the first phase, about 13 common stations in which AI and IA operates is being targetted.

The integration of the scheduling operations on routes such as Chennai-Singapore and Kerala-Gulf sectors mean that frequency of flights of two airlines have been adjusted and rescheduled in such a way that one airline complements the other and there is no overlapping in flights.

For instance, if AI operates on a particular route in the morning, IA will operate on that sector in the evening. Currently, the two operate independently of each other.

Officials say the operational integration has become a true necessity to keep costs under control and fight competition from international carriers. The idea is to present a unified front in the global market. AI and IA together exercise a dominant influence on the Indian air market and control around 30 per cent of the Indian international market.

AI is now working on a sales promotion which will provide its passengers with free tickets on ia from gateway points like Mumbai and Delhi to interior towns like Agartala, Madurai, Bagdogra or Indore which do not have direct international flights. For example, a passenger travelling from New York to Delhi on AI will be offered free connectivity on IA to Lucknow or Jaipur or Chandigarh.

IA has launched a promotion which offers passengers a free return ticket on any destination on the AI network after they travel on any 12 sectors on the IA network. A number of similar schemes are being discussed now.

The Government has also appointed IA chairman and managing director Sunil Arora as the managing director of AI to bring about synergy between the two airlines. The Civil Aviation Ministry believes the market share of IA and AI would go up, if they work in close cooperation and use each other’s strengths to boost marketing. Joint review of fares of such routes will be undertaken periodically.

Several attempts were made earlier to bring about such synergy but the two carriers continued to compete with each other. The rationalisation agreements were signed after Mr Arora took over and efforts to joint marketing are on now.

A study commissioned by the Civil Aviation Ministry had underscored the need to eliminate unhealthy competition but stopped short of recommending a merger. Prepared by at Kearney, the report had favoured operational synergy, a strategy advocated by the ministry too.

The Naresh Chandra Committee has called for lifting the ban on foreign airlines investing in domestic airlines. The high-powered panel, set up to suggest a roadmap for development of the aviation sector, has also urged the Government to permit private airlines like Jet Airways and Air Sahara to operate on international routes.

And that’s speeding up the process of operational integration between two struggling state-owned carriers. (UNI)

Asian techs hit by chip sales data, Nasdaq fall

SINGAPORE, Dec 10: Falling tech stocks, such as Tokyo Electron Ltd, led Asian Stocks down on Wednesday, after lukewarm sales from Taiwan’s two big chip makers sent the Nasdaq to its biggest percentage decline in seven weeks.

The dollar hovered near recent lows after the US federal reserve left interest rates at 45-year lows, as expected, but also said the threat of falling prices had eased.

US treasuries retreated on the fed outlook but Japanese Government Bonds (JGB) gained on falling stocks and a strong yen.

Oil prices nudged higher after falling in New York on a break in cold weather in the eastern United States.

The Nikkei was down 2.2 percent at the midday break as the strong yen hurt exporters such as Canon INC and Nissan Motor Co, which each sank more than three percent.

An MSCI index of Asia Pacific shares outside Japan was flat at 0220 GMT.

"The drop in US semiconductor stocks has played a big role in pushing the Nikkei below 10,000," said Hiroaki Kuramochi, the head of global equities at credit lyonnais.

"And when you see the yen moving into the 106 to the dollar territory, even with wariness about intervention, it creates a lot of uncertainty regarding forex, and that is really pressuring techs and other exporters."

Taiwan shares were down 0.6 percent, Australia .Axjo fell 0.1 percent, South Korea dropped 0.4 percent and Singapore fell 0.3 percent. Hong Kong was down 0.1 percent shortly after the open.

Disappointing November sales from the world’s top two contract microchip makers, Taiwan’s united microelectronics corp and rival Taiwan semiconductor manufacturing co drove the tech-heavy nasdaq down just over two percent. The dow fell 0.4 percent.

TSMC shares plunged more than three percent, while UMC was down 1.7 percent.

Tokyo electron, the world’s second-largest maker of chip-making equipment, fell 5.2 percent and Japan’s top chip-testing equipment maker, adventest corp, sank 4.7 percent. South Korean technology bellwether Samsung Electronics Co Ltd fell 0.7 percent.

A widening current account deficit, worries about Washington’s commitment to a strong dollar and simmering violence in Iraq continued to weigh on the dollar.

The dollar was steady at 107.27 yen, keeping its distance from its three-year low of 106.74 yen hit in new york trade, thanks largely to wariness about intervention by japan.

The euro stood at 1.2250, virtually unchanged from late US levels and only a quarter of a cent below the record high of 1.2276 set in London on Tuesday.

Japan’s benchmark 256th 10-year cash bond was yielding 1.325 percent, down one basis point from Tuesday. The yield on the US benchmark 10-year note rose nine basis points to 4.35 percent from 4.26 percent late on Monday.

US oil was 17 cents higher at 31.93, with traders eyeing US inventories data later in the day.

Gold edged up slightly to 407.75 compared with 407.70 in New York. (AGENCIES)

Indian scientists unveil protien-rich rice

BANGALORE, Dec 10: Indian scientists who created protein-rich potato by Genetic Modification (GM) say they have now put the same gene in rice to enhance its protein content.

"We have transformed the rice by adding the Amaranthus Gene (ama1) in the laboratory," Subhra Chakraborty of the national centre for plant genome research in New Delhi said.

"The project was initiated this year by the department of biotechnology," she told the 10th Congress of federation of Asian and Oceanian Biochemists and Molecular Biologists here today.

The gene had been added to five rice varieties cultivated in India, including IR-72 and pusa basmati, Chakraborty said.

Rice normally contains about seven per cent protein. The gene addition was expected to improve the amount of protein and also the amino-acid content, she said.

Chakraborty said work had also started for putting the ama1 gene into cassava and sweet potato that are eaten by the poor in several parts of the world.

"These crops contain only carbohydrates and no protein at all," she pointed out. "By putting the AMA1 gene we expect to render these poor man’s food more nutritious than they are at present.

Chakraborty said that addition of AMA1 gene to potato increased its protein content by as much as 45 per cent and yield by 20 per cent. "We still do not know how exactly this gene does this," said Chakraborty, who has been involved in this field of research for over 14 years.

She said it would be at least a year before farmers could grow this protein enhanced variety since it was yet to be cleared by the Genetic Engineering Approval Committee (GEAC). "We will be very soon applying to GEAC for clearance providing them all the scientific data," she told PTI.

On the controversy over the genetically modified potato, she said it was unfortunate. "All we did was to enhance the nutritional quality of potato which is the fourth largest crop grown in the world," she said.

"We never said or claimed it is going to solve malnutrition." The gene AMA1, which has been patented by the Indian scientists, was isolated from grain amaranthus that grows in the wild in northern India. (PTI)

Techs drag Japan’s nikkei down 2%, below 10,000

TOKYO, Dec 10: Japan’s Nikkei average fell two percent to below 10,000 in Wednesday morning trade, with Fujitsu Ltd and other techs hit by the strong yen and a drop in the Nasdaq on disappointing sales at big microchip makers.

The US federal reserve’s decision to keep interest rates at 45-year lows provided little boost in Tokyo, as it was in line with expectations and failed to provide any lasting momentum on wall street.

"It appears the market was to some degree prepared for the Nikkei to fall below 10,000 — the key is how it moves from there," said Toshihiko Matsuno, senior strategist at SMBC friend securities.

"If forex rates settle down, it’s possible we could see a rebound, but at the same time there are many geopolitical and political risks that could make investors hold back."

The Nikkei ended the morning session down 2.20 percent at 9,901.67, its lowest level since November 21.

The tech-heavy benchmark index had risen 0.79 percent on Tuesday, when robust Japanese machinery orders data offset pressure on exporters from the strong yen.

The broader topix index was down 1.72 percent at 980.20 in Wednesday morning trade.

Helping chill market sentiment were falls in Tokyo Electron Ltd and other chip-related issues after the world’s two largest contract chip makers — Taiwan Semiconductor Manufacturing Co and United Microelectronics Corp — posted disappointing November revenues.

Tokyo electron, the world’s second-largest manufacturer of chip-making equipment, fell 5.24 percent to 7,420 yen, while advantest corp, Japan’s top chip-testing equipment maker, fell 4.7 percent to 7,500 yen.

Chip and computer conglomerate fujitsu was also weak, dipping 3.11 percent to 561 yen.

"The drop in US semiconductor stocks has played a big role in pushing the Nikkei below 10,000," said Hiroaki Kuramochi, head of global equities at credit lyonnais.

"And when you see the yen moving into the 106 to the dollar territory even with wariness about intervention, it creates a lot of uncertainty regarding forex, and that is really pressuring techs and other exporters."

Other key exporters were also hit by the fall in the dollar overnight to a three-year low of 106.74 yen. In morning Tokyo trade the dollar was fetching around 107.3 yen.

Nissan Motor Co, Japan’s third-largest auto maker, was down 3.43 percent at 1,183 yen, while consumer electronics maker Sony corp eased 2.51 percent to 3,500 yen.

Trading volume picked up, with 657.28 million shares changing hands on the first section, compared with 469.73 million on tuesday morning. Decliners far outpaced gainers, 1,015 to 384.

Investors said the Japanese cabinet’s approval on Tuesday of a plan to send troops to Iraq also weighed on the market.

Concern that Japan could become a target for attacks has increased since media reports last month said Al-Qaeda had warned of a strike on Tokyo if Japanese troops set foot in Iraq. "The market is factoring in the political risk associated with (Prime Minister Junichiro) Koizumi’s decision to send troops to Iraq," said Nishichi Omori, General Manager at UFJ asset management.

"If Japanese become a target, that could threaten the foundation of the Koizumi administration... If Koizumi were to lose his grip on power, that would put in doubt privatisation efforts and other structural reforms."

One notable gainer was Seiko Epson Corp. The printer and electronics maker rose 2.02 percent to 4,050 yen after UBS raised its target price by 200 yen to 3,800 yen, saying prices of ink jet printers had stabilised on a decision by US rival Hewlett-packard to maintain price levels. (AGENCIES)

Hardware industry seeks excise rate cut

PONDICHERRY, Dec 10: The country’s hardware industry grouping has sought the halving of excise duty on all it products from the current level of 16 per cent.

"The ability to kick-start domestic consumption depends a good deal on the tax breaks that the industry is able to secure in the union budget next year," manufacturers’ Association of Information Technology (MAIT) Executive Director Vinnie Mehta told reporters visiting the Wipro computer manufacturing facility here yesterday.

In addition to the excise rate cut, Mr Mehta said hardware manufacturers should be allowed a corporate Income Tax break of 50 per cent for at least one year and depreciation rates on PCs should be increased to 100 per cent from 60 per cent now.

Observing that pc prices in India were 40 per cent more than in China and 30 per cent higher than the world average, Mr Mehta said this was because it was cheaper to import finished products into the country than to add value here.

The hardware industry lobbyist also said there was "bias in Government circles against Indian brands, which are discriminated against."

"Now is the time for delivering. We have talked enough about the imperative for growth in the hardware sector," he added.

Mr Mehta, however, held out hope for the future and said hardware consumption in India was expected to reach US dollar 44 billion by 2010 compared to just about US dollar four billion now.

Quoting from a study commissioned by MAIT, he said the industry would employ 12 lakh people by the end of the decade, a ten-fold increase.

"For every Rs one crore in sales in the auto sector, about six jobs are created compared to 10 jobs in the hardware sector," Mr Mehta said.

By 2010, PC penetration would have touched 70 per thousand people as against the nine per thousand, with volumes increasing from 23 lakhs to 2.2 crore, he said, adding that exports would zoom from us dollar 300 million to us dollar 18 billion. (UNI)

FICCI calls for intra and inter-regional tourism marketing

CHENNAI, Dec 10: Federation of Indian Chambers of Commerce and Industry (FICCI) today called for concerted efforts by countries in ASEAN region to promote intra-regional and inter-regional tourism in a big way.

‘Since no tourism destination can be a stand-alone destination, there is a need to synergise the competencies of tourism destinations both intra-regionally and inter-regionally" A C Muthiah, president, FICCI, said in his address at the conference on "south India-a global destination", organised by the federation.

He said after Turkey, India was expected to achieve the fastest rate of growth of the total amount of economic activity likely to be generated by travel and tourism, at seven to nine per cent in the next 10 years, and the largest employment creation after China.

‘The growth in spending by international tourists is likely to be the fastest in India at 14.3 per cent per annum over the next decade", he said.

Pointing out that intra-ASEAN tourist traffic crossed 18 million mark in 2001 itself, Muthiah said that to offer comprehensive value addition to the tourists, the importance of inter-regional marketing could not be underplayed.

Muthiah said that India’s in-bound tourist traffic had been around 2.5 million during the last decade adding that the out-bound traffic had however increased and was expected to be around five milion in the year 2003.

"The increase in the tourist movement both in-bound and out-bound had been constrained due to limited aeroplane seat capacity", he said.

On behalf of FICCI, Muthiah mooted the idea of making tourism a concurrent subject for deepening the synergy between the Centre and the States with an integrated national plan of action.

He also wanted quick implementation of the Prime Minister’s announcement of 18 new destinations in India for ASEAN tourist arrivals.

Muthiah also suggested that private carriers be allowed to utilise the unutilised traffic rights throughout the world, so as to improve the share of Indian carriers.

In his inaugural address the Tamil Nadu Governor P S Ramamohan Rao called for more initiatives to improve the country’s infrastructure facilities to attract more tourists and suggested that private sector be allowed to maintain and market major tourist attractions.

In his special address, Malaysian Tourism Minister Dato’ Paduka Abdul Kadir Bin Haji Sheikh Fadzir called for promotion of the concept of open skies and joint efforts by ASEAN countries to market the entire region as a competitive tourism destination.

He said Malaysia was looking forward to India emerging as a powrful economy in the region so that the country could take the leadership in bringing a just economic order in the region. (PTI)

Hardware industry seeks excise rate cut

PONDICHERRY, Dec 10: The country’s hardware industry grouping has sought the halving of excise duty on all it products from the current level of 16 per cent.

"The ability to kick-start domestic consumption depends a good deal on the tax breaks that the industry is able to secure in the union budget next year," Manufacturers’ Association of Information Technology (MAIT) Executive Director Vinnie Mehta told reporters visiting the Wipro Computer Manufacturing facility here yesterday.

In addition to the excise rate cut, Mr Mehta said hardware manufacturers should be allowed a corporate income tax break of 50 per cent for at least one year and depreciation rates on PCs should be increased to 100 per cent from 60 per cent now.

Observing that PC prices in India were 40 per cent more than in China and 30 per cent higher than the world average, Mr Mehta said this was because it was cheaper to import finished products into the country than to add value here.

The hardware industry lobbyist also said there was "bias in Government circles against Indian brands, which are discriminated against."

"Now is the time for delivering. We have talked enough about the imperative for growth in the hardware sector," he added.

Mr Mehta, however, held out hope for the future and said hardware consumption in India was expected to reach US dollar 44 billion by 2010 compared to just about US dollar four billion now.

Quoting from a study commissioned by MAIT, he said the industry would employ 12 lakh people by the end of the decade, a ten-fold increase.

"For every Rs one crore in sales in the auto sector, about six jobs are created compared to 10 jobs in the hardware sector," Mr Mehta said.

By 2010, PC penetration would have touched 70 per thousand people as against the nine per thousand, with volumes increasing from 23 lakhs to 2.2 crore, he said, adding that exports would zoom from US dollar 300 million to US dollar 18 billion. (UNI)

Wipro launches notebook for Rs 55,000

PONDICHERRY, Dec 10: Sensing the rapid evolution of a mass market, Wipro has become the latest computer manufacturer to launch a notebook in the Rs 55,000 price range.

The littegenius 1000d series for the value segment will consist of a Celeron-based notebook for Rs 55,000 and a pentium-based product priced at Rs 55,900.

"Our offering is targetted at the value segment, which is the fastest-growing one in the entire PC market-place," Wipro Infotech General Manager (personal computing) Anil K Jain told reporters on a visit to the company’s manufacturing facility here yesterday.

Both products in the 1000d series would be enabled for mobile communication, Mr Jain said.

The price range at which Wipro has introduced its new notebooks is similar to that offered by competitors in the branded space, including IBM, ACER, HCL and HP.

In another announcement, Wipro said it was launching an online technical support centre for all its products. Certified engineers would debug problems over a toll-free number and provide support in multiple languages, Mr Jain said. (UNI)

US tops rankings in global IT report, India ranked 45th

WASHINGTON, Dec 10: The United States remains the most innovative country in the world in the use of Information and Communication Technology (ICT), according to a report by the world economic forum.

The third annual global information technology report, which covers 102 economies worldwide, says that once again the United States has underlined its supremacy in the field of information technology, topping this year’s rankings of the networked readiness index, which measures how prepared each nation’s economy is to participate in and benefit from ICT developments.

India and China were ranked 45th and 51st, respectively.

According to the report, produced in cooperation with the world bank’s Infodev and the international business school insead, the United States was ranked at the top of the list in the quality of its scientific research institutions and in the number of new patents.

In terms of usage, the United States came in first overall with high marks for its Government online services and reached the top position for the number of computers installed in business per 1,000 inhabitants.

Singapore holds second place in this year’s index, reflecting the success of its public-private partnerships to promote ict penetration and usage. The nordic countries also continue to outperform others in the rankings, with Finland, Sweden and Denmark in third, fourth and fifth places, respectively.

This year’s report made special efforts to increase the coverage of emerging economies by including 20 more developing countries, mainly from sub-Saharan Africa.

Mr Bruno Lanvin, programme manager of Infodev, said the report shows that not only have some of the less developed economies started to take advantage of the ICT revolution, "but also that networked readiness can be a very powerful tool to fight poverty."

Among emerging markets, Israel’s performance is noteworthy, the report said, posting a rank of 16 overall. Israel’s ranking is enhanced by outstanding scores in the availability of scientists and engineers, the quality of scientific research institutions and the availability of venture capital, it said.

The report said that a comparison of the networked readiness index scores over the last three years shows that the digital divide between the most developed and least developed economies is narrowing. This is encouraging news for key ICT stakeholders in less developed economies. (UNI)