Mallya (L) and Khoday: Doing it themselves

In the corridors of power in the southern state of Karnataka, liquor has traditionally talked. The industry has funded politicos of all hues who, in turn, have turned a blind eye to the sales of 'seconds' liquor (on which excise hasn't been paid; ergo, liquor that doesn't exist on paper) and kept prohibition, something Tamil Nadu and Andhra Pradesh have flirted with, at bay. However, Bangalore's two biggest liquor barons Vijay Mallya (of the UB Group) and Sri Hari Khoday (of Khodays) are in the fray themselves this time, the former as the national working president of the Janata Party and the latter as the head of the regional Urs Samyuktha Paksha (it may ally with the BJP). ''With Mallya and Khoday running their own parties, it will be tough on all of us,'' admits a Congress politician. ''All parties used to be funded by them, with the ruling party getting the lion's share.'' That apart, the state government hasn't endeared itself to the liquor trade by appointing the state-owned Karnataka Beverages Corporation as the sole marketer of liquor, a move that has effectively killed sales of 'seconds'. It promises to be a dry election in Karnataka this year.

-Venkatesha Babu

BAD NEWS
The Heat Is On

» The early onset of summer threatens to knock a few million tonnes off an estimated wheat production of 76.12 million tonnes in 2003-04.

» Audit firm KPMG warns that India's booming BPO industry may face a shortfall of nearly 500,000 people by 2009.

» IFCI's voluntary retirement scheme evokes a poor response, scotching yet another government intervention to restructure the ailing financial institution.

-Ashish Gupta

Welcome To Chip Design Country
Motorola is the latest in a long list of chip-design companies to hit Bangalore.

Ed Zander, CEO, Motorola: Let's join 'em

One more multinational company moving its chip design work to India doesn't make anybody sit up these days. After all, more than 50 MNCs get their chips designed in Bangalore alone. So, last fortnight's announcement from the world's second-largest mobile phone manufacturer, Motorola, that it was following suit didn't create much of a flutter. But there are two interesting aspects to it. One, the jobs that Motorola is moving to this part of the world don't come from the US (did we hear CEO Ed Zander say "phew!"?). Instead they come from Singapore, Taiwan, and Hong Kong. Two, with more and more design work coming to India, the country's chances of increasing its share in the global $4.2-billion chip design business will significantly brighten (although it may still not be looked at as a chip fabrication centre for many years to come).

Motorola's semiconductor business already has two design centres in the country (in Noida and Gurgaon) that focus on advanced chip design for wireless communications, networking and computing, and for cars and consumer electronics. While the new move will create just 50 jobs, these will be high-paying. Better still, there could be more where they came from.

-Venkatesha Babu

Lawful Union
Two law firms come together in a trend-setting merger.

Trendsetters Bahl (L) and Mody: The united colours of law

In a first of its kind, Delhi-based law-firm Ajay Bahl & Co and Mumbai-based law-firm Chudasma, Zia, and Behram (CZB) have merged to create AZB & Partners, which will now figure among the top five law companies in the country. The union is logical enough to make several pundits wonder why other such haven't happened before. India's law firms are largely regional. And most of them are specialists in few practice areas. Ajay Bahl & Co, for instance, has a robust taxation, corporate M&A, and media practice out of Delhi. CZB has a strong corporate and intellectual property rights practice out of Mumbai and Bangalore. And if the former boasts clients such as Star TV, ESPN, Walt Disney, and The India Today Group (which publishes Business Today), the latter does the Tata Group, Shell, and Lafarge. Managing partners Ajay Bahl, Zia Mody, and Behram Vakil got acquainted after the firms clashed in at least eight cases. Then came the announcement of the merger which will come into effect from April 1, 2004. "The merger will bring in a good client, practice, and geographical spread to the table," says Mody. And Bahl denies that the imminent entry of foreign law firms had anything to do with the decision. "It is not a defensive measure; it is just that it brings in greater synergy." The legal fraternity sure thinks so. "Ajay and Zia may have set a new trend for other law firms," gushes Lalit Bhasin, a corporate lawyer of note and President, Indian Society of Law Firms. That, they may have.

-Sahad P.V.

GUSH
Making Oil Slicker
Oil companies learn to hardsell their fuel via catchy television commercials.

IOC (includes IBP)
Agency: Leo Burnett, Rediffusion India
TV adspend in FY 04: Rs 16 crore
Brief: 'India Inspired' was its theme and in the corporate campaign it showcased some inspired Indians-unknown faces like the inventor of Jaipur Foot.

HPCL
Agency: WPP, Mudra, Rediffusion India
TV Adspend in FY 04: Rs 28 crore
Brief: 'Achcha Lagta Hai' (Feel-good) for retail/'Hassle-free Services' for LPG/'Your Engine's Engineer' for lubes.
The theme again is trust and service.

BPCL
Agency: Saatchi & Saatchi
TV Adspend in FY 04: Rs 10 crore
Brief: 'Pure for Sure' for Retail / 'Cook food, Serve love' for Bharat Gas/'MAK makes it possible' for lubes Pure for Sure has been a big success.

-Moinak Mitra