SC admits IOC petition on petroleum products pricing...

Amway may get into category-specific advertising by 2010: CEO

Godrej aims at making Ezee a Rs 100-cr brand in 2-3 years..

Govt unlikely to notify CTT this year....

SEA wants Govt to revisit import duty on edible oils

NEW DELHI, Sept 21: Amid a declining trend in domestic edible oil prices, vegetable oil industry body Solvent Extractors Association has favoured a raise in import duty.

"Domestic prices of vegetable oils have fallen in the last two months due to a crash in the international market. We, therefore appeal to the government to revisit the import duty structure and if necessary, not hesitate to raise the duty," Solvent Extractors Association (SEA) President Ashok Sethia said in a statement.

SEA is also to discuss the issue in its annual general meeting later this week. "We will discuss this issue at our AGM on September 26. We will write to the government for reviewing import duty on edible oils to protect farmers' interests," SEA Executive Director B V Mehta said.

Mehta said farmers have the right to receive a fair price for their produce. The expected price for oilseeds in October would be 30-40 per cent less than what prevailed during sowing period (June-July), he added.

Ahead of harvesting of Kharif oilseeds, the rise in import duty on edible oils would benefit farmers as they would get a remunerative price for their produce, Sethia said, adding that farmers would bring their produce to mandis in full swing by October 15.

SEA noted, "In view of stock limit and lack of hedging facility due to ban on futures trading in soya oil, the industry may not be in a position to buy and support farmers".

The Centre had in April abolished customs duty on crude edible oils and imposed 7.5 per cent duty on refined varieties as part of several measures to check inflation. (PTI)

Reliance Capital to set up housing finance company by Dec

NEW DELHI, Sept 21: Anil Ambani-promoted Reliance Capital is likely to set up a separate housing finance subsidiary by December.

"We expect all the regulatory approvals to be in place for the housing finance subsidiary in the next three months," Reliance Capital Chief Executive Officer Sam Ghosh said over the phone.

The company has already filed an application with National Housing Bank and is also seeking a no-objection certificate from other regulators like Reserve Bank and Insurance Regulatory and Development Authority, he said.

Reliance Capital is already into the mortgage business through its consumer finance arm.

In order to make the mortgage business more focused and to achieve certain objectives, the company has decided to spin its venture as a Housing Finance Company.

"If you are regulated by National Housing Bank, then you get special sanctions, essentially refinance," he said adding the entity would also come under the Sarfesi Act (which allows financial institutions to take possession of assets where borrowers have defaulted), he said.

Besides, a housing finance company is also allowed to raise funds through external commercial borrowings, he said.

However, a Non-Banking Financial Institution undertaking this business does not enjoy such benefits, he added.

Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. (PTI)

RCom out of top 10 most valued club amid mkt meltdown

MUMBAI, Sept 21: Anil Ambani Group company Reliance Communications has lost its position in the elite club of country's top 10 most valued firms amid meltdown in the stock market following the global financial turmoil.

Engineering and construction major Larsen & Toubro moved ahead of RCom to enter the list of top 10 firms with a market capitalisation of Rs 77,375.03 crore, while the ADA Group firm has a valuation of Rs 77,204 crore as on the week ended September 19.

RCom suffered a fall of Rs 3,529.47 crore in its market capitalisation in the past five trading sessions and is at the 11th place in terms of market value.

Reliance Industries has maintained its position as the country's most valued firm, with an increase of Rs 17,510.41 crore in its marketcap, which stood at Rs 2.98 lakh crore last week.

Public sector ONGC, country's second most valued firm, recorded the second biggest gain of Rs 10,544.63 crore, while PSU power utility NTPC saw a jump of Rs 7,627.05 crore in its market cap.

Leading telecom firm Bharti Airtel gained Rs 3,872.12 crore in the same period, while country's largest lender SBI gained Rs 3,320.42 crore. BHEL increased Rs 682.88 crore in its valuation.

State-run NMDC bore the brunt of the meltdown on the bourses facing maximum loss of Rs 24,224.32 crore in its market capitalisation thereby sliding to the eighth position on Friday from sixth place in the previous week.

The valuation of another PSU MMTC also declined by as much as Rs 5,328.50 crore, while IT major Infosys saw its marketcap sinking by Rs 1,158.99 crore. (PTI)

Technologies to secure WiFi network already available: Experts

NEW DELHI, Sept 21: As security agencies scramble to shield WiFi networks in the country, experts say that securing such connections is very simple and such technologies -- both in software and hardware versions -- are already available.

"Almost all WiFi enabled devices have some sort of in-built security functionality by default which can be activated at no extra cost. By ensuring some simple steps, you can minimise the risk of your WiFi being misused or hacked", Niraj Kaushik, Country Manager (India and SAARC), Trend Micro, an internet security software manufacturer said.

A WiFi router generally comes with a default pre-configured password generally starting with the manufacturer's name and you must change this password to one specific to your choice. One should also remove the broadcast functionality from the router, so that the network remains invisible to casual unwanted users, Kaushik adds.

WiFi equipment manufactures while admit to prevalent security gaps in wireless networks, they however assure of being well placed in terms of technology to curb the misuse.

As wireless security remains a leading concern for enterprises, "we have acquired a leading Wireless LAN (WLAN) security provider for greater security to wireless LAN networks," Kathy Paladino, President Motorola Enterprise Mobility business said.

"Industry compliance requirements and heightended security awareness have fuelled the need for comprehensive compliance, enforcement forensics and reporting, which is offered by us," Motorola Enterprise WLAN division VP and GM Sujai Hajela said.

Describing the features of a secure WiFi network, Hajela said, "with built-in forensic support the wireless IPS provides powerful tools for standards compliance." (PTI)

SC admits IOC petition on petroleum products pricing...

NEW DELHI, Sept 21: The Supreme Court will decide whether the Union Government notifications governing prices of petroleum products can be construed as law.

Indian Oil Corporation has raised the issue before the apex court, which has admitted and tagged the petition with a similar matter pending before it.

Oil India Ltd has challenged a Guwahati High Court ruling that upheld the arbitral tribunal’s judgement which held that notifications governing prices of petroleum products have a force of law.

Citing the apex court’s decision, OIL said that the executive instructions of the Centre cannot be construed as law as defined by Article 13 of the Constitution of India.

According to the oil company, the Assam Trade Articles (Licensing & Control) Order does not fix price of the petroleum products and the same is fixed by the Ministry of Petroleum vide executive instructions which cannot be construed as law.

"The expression having force of law in Article 13 of the Constitution applies only to customs and usages and not to notifications. If a notification cannot be construed as law then it is a mere executive instruction or order and the definition of law cannot be stretched to include within its ambit such executive instruction," it said in its petition.

Subsequent to a tender notification, OIL had entered into a contract with South East Asia Marine Engineering and Construction Ltd (SEAMEC) in June 1998 for carrying out drilling and auxiliary operations in Assam. (PTI)

Amway may get into category-specific advertising by 2010: CEO

MUMBAI, Sept 21: FMCG company Amway India, which offers its products through its distribution network, may start advertising for specific categories or even products by 2010, a top company official said.

"The advertising campaign for now, that is, for this year and 2009 is aimed at increasing awareness. By the time we get into 2010, we might look at category-specific or even product- specific advertising," Amway India Chief Executive Officer and Managing Director William Pinckney told PTI here.

The focus would be on nutrition and wellness products, he said.

Although Amway has been operating in India since 1998, it started advertising only recently.

Amway, with an annual turnover of Rs 700 crore, has products across personal care, home care, cosmetics, nutrition and wellness ranges. Nutrition and wellness products contribute a sizeable share to Amway's revenue.

"Traditionally Amway did not advertise. But feedback from our local distribution networks told us that we need to advertise to increase visibility," Amway India Corporate Communications Manager Rajat Banerji said, adding India was one of the first markets where Amway has begun advertising.

On the company's advertising expenditure, Pinckney said, " At present, our advertising budget is Rs 15 crore because our aim is not to create demand but to build awareness and create a market atmosphere conducive for our distributors."

Amway has recently launched 'energy' products, 'XL Energy Drink' and 'XL Energy Bar' and is looking to capture a sizeable share of the energy drink market in the next 3-5 years. (PTI)

Godrej aims at making Ezee a Rs 100-cr brand in 2-3 years..

MUMBAI, Sept 21: Godrej Consumer Products Ltd (GCPL), is aiming to transform its 'Ezee' daily-wash brand into a Rs 100-crore brand in the next 2-3 years.

"Presently Ezee's turnover stands at Rs 50 crore. We are confident of doubling it to Rs 100 crore in the next two-three years," GCPL V P(Marketing) V Suresh told PTI here.

The growth will primarily be fuelled by its newly-launched Ezee Bright & Soft daily-wash liquid detergent through which the company has entered the high-potential premium detergents segment.

GCPL, an Adi Godrej-spearheaded enterprise, has the distribution network in place with 11 lakh outlets pan-India selling Ezee, Suresh said.

Ezee Bright & Soft is being promoted as a liquid detergent for daily-wash unlike in the past when liquid detergents were mainly used for wool-wear (winter clothes).

"We have entered the premium detergents segment where we will be competing against Surf Excel, Avial and Henko. But these are detergent powders, whereas Ezee Bright & Soft is a liquid," he said.

The new product is an extension of the 25-year-old Ezee brand.

Launched last month in the north, east and west, the initial response has been encouraging. "After stabilising sales here, we will enter the southern market in the next 3-6-months," Suresh said.

The premium detergents market is estimated at around Rs 900 crore and is growing at 12-15 per cent per annum, he said. (PTI)

Govt unlikely to notify CTT this year....

NEW DELHI : Amidst opposition from traders that commodity transaction tax may encourage illegal trading, the Government appears unlikely to notify the levy this year.

"The Government is unlikely to notify CTT in the futures market," a source said, adding that consumer affairs ministry has persuaded the finance ministry not to go ahead with CTT.

Parliament has already passed the 2008-09 Budget, where one of the proposals is to levy a commodity transaction tax of 0.017 per cent. However, a notification is yet to be issued.

According to sources, CTT does not exist anywhere in the world, except Taiwan.

"Even in Taiwan, commodity futures trading is being conducted through the stock exchange, where commodities contribute only 0.03 per cent in the turnover of the exchange," the source pointed out.

When the 99.9 per cent of the world markets do not have CTT, India does not need such a tax, the source said.

Experts pointed out that in India, taxes on commodities are the highest compared to other goods. In fact, after income tax, bulk of revenue comes from taxes on commodities. Customs duty, sales tax, excise duty, octroi and many other local levies are imposed on commodities in the country, which add on to the cost of the product that consumers pay.

Further, CTT cannot be compared with securities transaction tax (STT). Commodities are not shares, they said, adding that any tax on commodities would be a bearing on their prices.

If CTT is imposed, arbitragers will run away from the market as majority of their earnings would go towards tax payment, the experts said. Arbitrage trading literally means ‘risk free profit’ which is the bread-butter of commodity traders.

A study conducted by industry body CII has also made a similar observation. "Within seven days of the imposition of CTT, trading volumes on the three national exchanges and 19 regional exchanges will dip by up to 59 per cent," the study noted. (PTI)