What: A four-key, LCD screen-less cellular phone that
can dial and receive calls from only three pre-stored numbers.
The idea: Stop children, drivers and maids from misusing the phone
provided by parents or employers
Who: It is the brainchild of Pradyumna Vyas, a 45-year-old
professor at NID Ahmedabad, who has been working on the concept
for the last eight months. Named after his daughter Ana, the (concept)
phone (patent pending) would cost under Rs 1,000
Downside: No LCD screen, no SMS and the numbers would
need to be pre-loaded. That means, if you as the parent are trying
to reach your child not from your "registered" mobile
phone number but from, say, a pay phone, your call won't go through
Prospects: Dim. With handset prices tumbling and pre-paid
cards of all denominations, there are other ways of controlling
cellular abuse. If you are optimistic, it can only mean one of
the two things: Either you don't have teenage kids or you've never
had to hunt for domestic help
-Shaleen Agrawal
Bird Flu Mass Test
|
SRL Ranbaxy: Ready for the
bird flu pandemic |
What: Mass diagnostic tests for bird flu that can be
completed in a day against the two to 10 days that it currently
takes
Who: SRL Ranbaxy, a pathology laboratory network promoted
by India's pharma major, Ranbaxy
How: The primary reason for the long turnaround on tests
is the logistics involved. Samples taken from remote locations
need to be sent back to the laboratory (typically located in a
major city). But SRL Ranbaxy "covers the full country",
says Group Director Janak Singh Bajwa, with 550 testing centres
in more than 350 cities. So turnarounds are much faster
Cost: Rs 2,500, although Bajwa says it could come down
as the volumes increase. In the same breath, he adds, "but
let us hope the situation never comes to that"
Relevance: Nice to know that at least somebody in India
is thinking of a possible bird-flu epidemic and gearing up for
it.
-Shaleen Agrawal
Rs 10,000 PCs: Are They
Selling?
|
Low cost
PCs : Few takers |
This magazine has always maintained
that value, and not price, is the issue when it comes to selling
personal computers (PCs) in India. As it turns out, we weren't
too wrong. A handful of sub-Rs 10,000 PCs launched last year aren't
exactly flying off the shelves.The Kolkata-based Xenitis Group,
which launched one last April, had shipped out just 1,300 units
until the middle of February. HCL Infosystems, a much bigger player,
has sold 40,000 of its two low-cost PC models since launching
in August last year. Manufacturers like Xenitis say they are happy
with the numbers. "Our expectations of this segment are conservative,"
says a senior official at Xenitis.
But analysts like IDC's Piyush Pushkal say that the low-cost
PC market will never really be big. "The truth may be that
the sub-Rs 10,000 PCs erode margins in an already low-margin business,"
he says. Besides, these PCs are almost nobody's idea of a PC.
They come with rudimentary software (like DOS instead of Windows,
in the case of Xenitis; and Linux for HCL) and cost more when
the buyer starts adding features. In fact, IDC data shows that
even PCs that cost less than Rs 15,000 had just 2 per cent share
of total desktop shipments during July-December 2005. That's not
to say the low-cost PCs haven't expanded the market base; they
have, but not significantly enough.
-Shaleen Agrawal
P-WATCH
A bird's eye view of what's hot and what's
not on the government's policy radar.
IN
A NUTSHELL |
» No
national consensus on PSU banks' merger
» Employees
still resisting merger moves
» Finance
Minister P. Chidambaram pushing for consolidation
» Rising
provisioning requirement may put pressure on PSU banks'
capital
» Integration
with global markets, complex products may fuel future mergers
|
BANK CONSOLIDATION STILL
A LONG WAY OFF
The Reserve Bank of India (RBI) has blessed the takeover of
Bharat Overseas Bank by Indian Overseas Bank, the first time it
has allowed a public sector bank to acquire a profitable private
counterpart. Does this mark the beginning of consolidation in
the banking sector? Public sector bank CEOs are not reading much
into it. "There is a need to build a national (political) consensus
on this before things can move forward," says one such CEO. Finance
minister P. Chidambaram is pushing aggressively for this, so the
idea has a powerful backer at last, but resistance from employees,
who apprehend job cuts, remains the biggest hurdle. And except
for one off events like the one mentioned above, the sector is
expected to remain as it is till March 2009 when the banking sector
will be thrown open to mergers and acquisitions by foreign banks.
-Anand Adhikari
WATCH OUT, LPG, PETROL, DIESEL PRICES MAY RISE
AGAIN
If the government accepts the recommendations of the C. Rangarajan
Committee on Pricing and Taxation of Petroleum Products, then
the common man is in for hard times. The price of liquefied petroleum
gas (LPG) will shoot up by Rs 75 per cylinder; petrol and diesel
by Rs 1.21 per litre and Rs 1.96 per litre, respectively, and
only people below the poverty line (BPL) will be entitled to subsidised
kerosene. But it will help loss-making public sector refining
and marketing companies like Indian Oil Corporation, Hindustan
Petroleum, Bharat Petroleum and IBP no end. They will be allowed
to fix their own retail prices, and the full subsidy burden on
LPG and kerosene will be borne by the national Budget. Moreover,
state governments will have to scrap octroi, entry tax and other
local levies. The government will take a decision on whether or
not to accept the report in the next couple of months.
-Ashish Gupta
INTEREST ON FIXED DEPOSITS MAY BECOME TAX FREE
Term deposits were brought under the ambit of taxes in the last
budget; this means the accumulated interest, which had till then
been tax free under Section 80L of the Income-Tax Act, is now
liable to be taxed at the marginal rate. Result: depositors moved
into Kisan Vikas Patra, National Savings Certificate, National
Savings Scheme, public provident funds and mutual funds. The banking
industry now wants tax breaks for term deposit holders up to Rs
1 lakh (principal) under Section 80C of the I-T Act to boost deposit
growth. A 6.5 per cent tax-free return from bank deposits, it
feels, will put the shine back into this once-popular instrument.
And Finance Minister P. Chidambaram is likely to oblige on February
28.
-Ashish Gupta
|
SBI's A.K.
Purwar: Top pay |
BETTER PAY FOR BANK OFFICIALS
Top officials of public sector banks may get performance-linked
pay packets at last. The basic salary structure of bank chairmen
and executive directors will, however, remain unchanged, as these
are pegged to those of secretaries and joint secretaries. "It
will certainly happen, but no time-frame has been set for the
implementation of this proposal," an Indian Banks' Association
official says.
-Shalini S. Dagar
AHOY TRANSPARENCY
The e-governance project-code-MCA 21-envisaged in the Companies
(Amendment) Bill, 2006, will enable various stakeholders to interact
with each other in a simple, hassle-free environment. The public
will have full access to all online public records (the current
norms under the Companies Act don't provide for online filing).
And financial institutions will be able to register and verify
charges against assets anywhere in the country. Says Prithvi Haldea,
Managing Director, Prime Database: "The initiative will make the
corporate governance process more transparent."
-Kumarkaushalam
|