Business – Vitals

It would break from tradition with a two-tiered pricing system for smart-phone data use, U. S. communications giant AT&T said on Wednesday.

AT&T said, rather than charge a single fee for unlimited Internet access with mobile devices, it would begin June 7 with a $15-per-month fee for customers using less than 200 megabytes of data each month and a fee of $25 for up to 2 gigabytes of data use.

AT&T said in a statement that the entry level program, called DataPlus, allows for 1,000 emails without attachments, 150 with attachments, a look at 400 Web sites, 20 minutes of streaming and the ability to post 50 pictures onto social media sites.

65 percent of its smart-phone users currently use less than 200 MB of data, which would align them with the DataPlus option, the company further noted.

Only 2 percent of AT&T customers use 2 gigabytes or more per month, but there are payment options for users who go over their quota for data each month.

Ralph de la Vega, president and chief executive officer of AT&T Mobility and Consumer Markets, said, “To give more people the opportunity to experience these benefits, we’re breaking free from the traditional ‘one-size-fits-all’ pricing model and making the mobile Internet more affordable to a greater number of people.

Haier India, a leading consumer electronics and home appliances brand, has declared that it recorded a 200% increase in its turnover during the first quarter of the current fiscal.

While addressing a press meet, Eric Braganza, Haier India President, stated Haier recorded its 2009 turnover of Rs 350 crore by the month of May 2010, on the back of establishment of an aggressive sales channel growth for its electronics and appliances business plus expanding and consolidating its after sales service network allover India.

Ranked as a global number 1 in major appliances, the company roped in Bollywood heartthrob John Abraham as its brand ambassador in India.

The footballer turned actor, who was also present on the occasion, answered various questions on his selection as the brand ambassador, his career in acting and things connected with his life.

John will feature across its wide range of consumer durable and electronic products.

It also used the occasion to foray into its small kitchen appliances, a new product category for the company.

Eyeing to strengthen its presence, Haier launched new models including the new range of ultra slim 117 cm inch full HD LED backlit TVs and a 140 cm LCD.

It also launched a new refrigerator model plus new range of BMR Plus refrigerators, a 5-star AC model and three water heaters in the economy segment.

The company also rolled out a new washing machine ‘Tiana’, which offers an effortless wash with a higher porthole.

Under the kitchen appliances section, the new product categories include blenders, toasters, citrus juicers and electric kettles.

With soccer mania gripping the country, Haier also launched their soccer scheme, as ‘Haier Free Kich offer.

Asked what segments of income does the company targets, Mr Braganza said it is the middle class and upper class.

Stock market analyst Anu Jain has maintained ‘buy’ rating on Reliance Communication Ltd stock to achieve a target of Rs 162.

According to Jain, the investors can purchase the stock with stop loss of Rs 151.

On June 02, the stock of the company closed at Rs 154.60 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 359 and a low of Rs 134.25 on BSE.

Current EPS & P/E ratio stood at 24.12 and 6.62 respectively.

As per reports, RCom is in search of strategic foreign investor to lift up funds in order to back its entry into 3G mobile and wireless broadband access.

RCom has paid around Rs 8,583 crore for 13 out of the 22 telecommunication zones on offer.

RCom and MTN decided to join hands in the year 2008 but the transaction was thwarted by Ambanis family troubles.

RCom recently closed the deal not to vie in businesses with his brother Mukesh, giving him authority to bring outside investors into the country India’s second largest mobile operator.

RCom stock gained 11.02% on June 2, 2010, on news that UAE-based Etisalat is in advanced discussion to acquire a 25% equity stake in RCom for Rs 18,000 crore.

Afterward, RCom cleared that it has been getting many proposals from global telecom firms expressing interest in acquiring a strategic equity stake in it.

Reports said that after getting hold of 25% in RCom, Etisalat will make an open offer to buy an added 20% stake from the public.

According to recent reports, India has become the third biggest steel producer in the world during the last fiscal ended March 2010.

The country fabricated 72.786 million tonne of steel in the last financial year, said the report released by Prime Minister Manmohan Singh.

State owned steel firms registered a combined profit after tax (PAT) of around Rs 7,800 crore in the first nine months of the last fiscal.

The report also said that a range of innovative research and development plans and research projects were approved at a cost of around Rs 46 crore for stregthening the productivity, efficiency and competitiveness of the steel industry.

According to the statement issued by the largest player in the Indian two-wheeler industry, Hero Honda, the company has managed sales of around 4,35,933 units in May, registering 13.92 per cent increase over the same month last year.

Notably, this is the highest ever sales reported by the company in its history in a month’s time.

In fact, the previous highest monthly sales that were recorded by the company were around 4,15,137 units that was set in August 2009. Hero Honda Motors Senior Vice-President (Marketing and Sales) Anil Dua said that the 14% growth is highly satisfying, mainly because of the fact that the base of the company was very high in the last year in the same month.

Dua also highlighted the fact that the significant contributions from all the segments have led the company to such a growth path. It may be noted here that that the end of May 2010 marks the 17th consecutive month of the market leader wherein it has crossed over three lakh unit sales in a month’s time.

The company believes it will be able to continue the growth momentum even in the coming months.

HP will lay off 9,000 workers over a multiyear period while moving toward automation at its commercial data centers, U. S. technology giant has said Hewlett Packard.

It would spend $1 billion upgrading its information technology centers and phase out the jobs as the new systems go on line, the company further said.

Tom Iannotti, senior vice president and general manager of HP Enterprise Services, said, “Over the past 20 months, we focused on integrating Electronic Data Systems and improving profitability.”

Iannotti said in a statement, “Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business.”

It was reported that HP did not specify a schedule for the layoffs but said they would be accomplished “over a multiyear period.”

HP further said that in time, the changes are expected to save $1 billion a year

A $30.3 billion bid for its Asian life insurance business was rejected by American International Group after weeks of negotiations with British insurer Prudential.

The New York Times reported on Tuesday that the U. S. insurance giant, which has sold several major assets to help pay back $182 billion in federal government loans, refused to budge on its asking price of $35.5 billion.

It has been reported that the rejection thwarts Prudential’s goal of growth and derails AIG’s federal bailout repayment plans, at least temporarily. The Federal Reserve was set to receive $16 billion from AIG after the sale to Prudential was completed.

It “will not consider revisions” to terms for its Asian life insurance business, American International Assurance, which is based in Hong Kong, AIG announced on Tuesday.

Prudential Chief Executive Officer Tidjan Thiam could lose his job if the deal collapses completely, Howard Wheeldon, a market analyst in London, at BGC, said.

Wheeldon told the Times, “Mr. Thiam could indeed fall on his sword.”

Gold rates in the Indian market hit a record high of $398.42 for ten grams on Tuesday and marked its closure at $398.11.

The increasing gold prices have severely disturbed the budget of buyers during the ongoing marriage season.

On the Multi Commodity Exchange (MCX), gold futures were ruling 1.88% up, following strong cues from abroad markets, where safe haven buying supported the yellow metal.

Mr. Ashwini Bhinde, a customer. Said, “Prices have soared a lot. They are no more worth it for buying. But we have to buy it in times of need, though rather than buying more we buy less now. That is why people are buying now.”

Jewelers hope that gold rates will continue to soar and reach around $467.63 by Deewali season.

Mr. Ashwini Pethe, owner of a jewelry showroom stated that the customers are purchasing gold in the raw form rather than ornaments for future use and also reckoning its value in appreciation.

But, the World Gold Council said that the gold demand is likely to be strong in this year on the back of increasing interest for jewellery in India and China irrespective of high local prices.

“It (Gold) depends on the international market rate. The rates are fixed in London, although the maximum consumption is in India and China. China is purchasing gold to improve their capital while in India most of the people are purchasing gold for the ornaments. That is the basic difference between the two countries.

The 30-share index Sensex turned volatile during noon amid lingering worries on the European debt crisis and pessimistic reactions at other global stock markets.

The Sensex, which opened at 16,574.79, was trading 68.06 points up at 16,640.09 as against its last close at 16,572.03.

The broad-based Nifty stood at 4,987.25 after surging 0.34% from its previous close at 4,970.2.

Broader markets indices remained weak, with the BSE midcap index trading 0.06% up and the BSE smallcap index 0.28% higher.

Among other Asian stock markets, the Japanese Nikkei marked its closure at 9,603.24, down 1.12%, after PM Yukio Hatoyama said he would step down, two months before elections.

PM’s declaration increased fears that the world’s second-largest economy will continue to sputter at a time when Chinese manufacturing growth is declining and European governments are struggling amid record deficits.

On the other hand, Hong Kong’s Hang Seng ended the day at 19,471.8, down 0.13%, whereas the Shanghai composite index closed 0.12% up at 2,571.42.

The South Korean markets remained closed today.

In Europe, oil stocks dragged the markets after US started a criminal probe into Oil major BP’s oil spill off the Gulf of Mexico.

The FTSE 100, UK’s key index was ruling 1.63 percent lower at 5,079.07 points.

Its French peer, the CAC 40 was also in the negative at 3,447.08, down 1.6%, while the German DAX was trading with a 1.7% low at 5,879.31.

Hinduja To Buy Belgian Private Bank For Euro 1.35 BlnDiversified international conglomerate Hinduja group has decided to get hold of Luxembourg-based banking and insurance company KBC’s private banking division for around Euro 1.35 billion.

The division, KBL European Private Bankers, is one of Europe’s biggest onshore private banking groups with local affiliate banking institutions in 55 locations across 10 European nations.

KBL European Private Bankers had assets under management worth Euro 47 billion.

The Hinduja’s banking business comprises the IndusInd Bank in India and the Hinduja Bank Switzerland.

A joint statement said, “The Hinduja group intends to grow KBL internationally by using the group’s business interests in more than 100 countries.”

KBL was put on the block because of a financial crisis in the parent group that has to pay back around Euro 7 billion state aid.

Mr. Srichand P. Hinduja, chairman of the Hinduja group, stated, “We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia.”

KBL will continue to be headquartered in Luxembourg and the current management team will be retained.