VOLUME 2

ISSUE 11

Elixir Newsletter
CONTENTS
International 2

NATIONAL
Railway

finances

in

deep

trouble:

Suresh

Prabhu

RETAIL . 3
FMCG.... 4
SUDOKU .... 5
FROM HBR ..... 5
IT..... 6
Sports .7

Railway finances are in "deep trouble", according to railway minister Suresh

Prabhu who observed on Sunday that the government behemoth has been
caught in a "vicious circle" of poor investments compromising its services.
Pitching for increased investment into the railways, he said pension fund could
be one of the possible means of pumping in the money into the largest
government transporter which is facing losses to the tune of thousands of
crores.

Kiran
play important
rolean
in engine
govt. formation
Delhi:
Naqvi
PrabhuBedi
said will
the railways
can become
of growth ininthe
coming
years
TOON CORNER
By
Prabhat Ranjan
On Page 5

and contribute 2.5 per cent to 3 per cent in the GDP with an improved
infrastructure.
Expressing his delight over Kiran Bedi joining the Bharatiya Janata Party
However,
railway
finances
are in "deepand
trouble",
minister said
(BJP), Unionthe
Minister
of State
for Parliamentary
Minoritythe
Affairs
addressing
The
Economic
Times
Global
Business
Summit.
Mukhtar Abbas Naqvi on Saturday said that the former IPS officer would play
an important role in government formation in Delhi.
"We are happy that Kiran Bedi has joined BJP, she will campaign for the party
during Delhi Assembly elections. She will play an important role in
government formation in Delhi," Naqvi told ANI.
"Congress and AAP are making noise because this will further ensure our
victory in Delhi," he added.
When asked if Kiran Bedi will be projected as a chief ministerial candidate,
Naqvi said that party's current focus is on winning Delhi Assembly elections.
Meanwhile, BJP spokesperson Shahnawaz Hussain also welcomed Kiran
Bedi's inclusion in the BJP.
"We welcome Kiran Bedi, she has a very good image, people of Delhi like her.
Party is very happy with the inclusion of Kiran Bedi," Hussain said.

IFurore as Leela Samson quits

Even as the Government challenged Central Board of Film Certification (CBFC)
`chairperson Leela Samson to prove her allegations, her decision to step down is
expected to trigger a slew of resignations from the Board over the weekend.
Already, one member, Ira Bhasker, is learnt to have stepped down.
Citing "interference, coercion besides corruption of panel members and officers of
the organization appointed by the Information & Broadcasting (I&B) Ministry, Ms.
Samson sent in her resignation on Thursday night soon after word came that the
Film Certification Appellate Tribunal (FCAT) had cleared the release of the film MSG
- The Messenger of God featuring Dera Saccha Sauda chief Gurmeet Ram Rahim
Singh Insan

Jan, 2015

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ELIXIR

INTERNATIONAL
France's Hollande defends freedom of speech after anti-Hebdo clashes abroad
French President Francois Hollande said on Saturday that anti-Charlie Hebdo protesters in
other countries do not understand France's attachment to freedom of speech. He was
speaking a day after the satirical weekly's publication of a cartoon of the Prophet
Mohammad sparked violent clashes, including deaths, in some Muslim countries.
Demand has surged for Charlie Hebdo's first issue since two militant gunmen burst into its
weekly editorial conference and shot dead 12 people at the start of three days of violence
that shocked France. The magazine's distributors said that its print run had been lifted to
seven million copies, dwarfing its usual circulation of only 60,000. A cartoon image of
Mohammad on its front page outraged many in the Muslim world, triggering
demonstrations that turned violent in Algeria, Niger and Pakistan on Friday.

Belgium deploys troops following anti-terror raids

Up to 300 soldiers will be mobilised in Brussels, Antwerp and elsewhere. Europe is on high
alert after Islamist gunmen killed 17 people in Paris. More than 20 people have been
arrested in Belgium, France and Germany.
There are increased concerns about the return of young Europeans who have gone to fight
in Iraq and Syria. Uniformed soldiers could be seen outside Jewish schools and
government buildings in Belgium on Saturday.

Paris gunman arrested, hostages freed

The gunman who had taken two persons as hostage at a post office near Paris on Friday has
been arrested. The hostages have also been freed, police said. The hostages were taken at a
post office in Colombes, a northwest suburb of Paris, reports said.
The accused was armed and had two hostages. He had contacted the security forces did not
clarify his demands. The Paris hostage situation was not an act of terror, the police said.
One helicopter of the security agencies surveyed the area. The incident happened before 1300
hours local time, the reports said.

China confirms 21 dead, 1 missing after tug sinks in Yangtze

Chinese authorities have confirmed that 21 people were killed and one was missing after a tug
boat undergoing sea trials sank in the Yangtze River, the state-run Xinhua news agency
reported on Saturday.
The 30-metre (98-ft) boat had 25 people on board when it sank on Thursday, including eight
foreigners - four Singaporeans, an Indonesian, a Malaysian, an Indian and a Japanese, it said.
Three people, all Chinese, had been rescued. All eight foreigners died.
Sembcorp Marine Ltd, a Singapore-based shipbuilder, said on Friday the tug boat that its
subsidiary, Jurong Marine Services Pte Ltd, had planned to charter sank during a sea trial.
Three of the company's employees were on board.
Sembcorp Marine is part of Sembcorp Industries Ltd, an industrial conglomerate with
Singapore's state investor Temasek Holdings being the biggest shareholder.

Jan, 2015

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PAGE 3

FMCG
New CEOs positively impact stocks of FMCG companies like HUL, Britannia, Nestle & Marico

Of the 12 companies in the BSE FMCG Index, the sectoral Stock Returns (%) index for
fast moving consumer goods companies, eight have had a new CEO in the past two
years. Incidentally, the change at the top came at a time when companies were
struggling to grow volumes in the face of low consumer demand and protect
margins amid high inflation.A change at the top positively impacted the stock prices
of four companies Britannia, HUL, Marico and Nestle. Companies such as HUL,
Marico, Britannia, Godrej Consumer Products and Colgate Palmolive reported
superior operating performance over the trailing four quarters characterised by
double-digit revenue growth and improvement in operating margin.

Marico names Ashish Joshi as new COO for South-East Asia

Consumer goods firm Marico has hired Ashish Joshi, a senior executive at Colgate
Palmolive, as chief operating officer ( COO) for its Southeast Asia business. Confirming
the appointment, Saugata Gupta, MD and CEO of the maker of Parachute hair oil, said:
"We want to drive expansion in the Southeast Asia region." Joshi will oversee Marico's
personal care business across Vietnam, Malaysia, Myanmar and Cambodia.
He joins the company from Colgate Palmolive Thailand where he was leading the
customer development function. An alumnus of IIM Lucknow, Joshi has been with the
oral care major for the last 12 years before which he was with Hindustan Unilever for
six years

Baba Ramdev expands empire beyond yoga to FMCG

It may be an unlikely combination yoga for inner peace and FMCG for external
beauty but Baba Ramdev appears to have struck the right pose in both. The guru
whose 'easy yoga' has won him a mass following is also cornering the FMCG market
with daily use products ranging from soaps to cornflakes.
Baba Ramdev's brands seem to have scaled up quite rapidly. For 2013-14, Patanjali
Ayurved, the company that manufactures the products, clocked a turnover of about Rs
1,200 crore, up quite rapidly. For 2013-14, Patanjali Ayurved, the company that
manufactures the products, clocked a turnover of about Rs 1,200 crore, up from about
Rs 850 crore a year earlier and Rs 450 crore in fiscal 2011-12, company filings and
industry sources said. And in the current fiscal, Patanjali is expected to clock a
turnover of Rs 2,000 crore, according to Aditya Pittie, CEO, Pittie Group. This marks a
67% jump from the previous fiscal.

Synthite Group to tap Gulf market for spices and masalas

The FMCG arm of the Rs 1,400 crore Synthite Group will shortly enter the Gulf market with a range of curry powders,
masalas and spices. The Group, which made its FMCG foray six months back with the Kitchen Treasures range, is
planning to enter the Gulf markets in February, said its Managing Director George Paul.
"The curry powder and masalas market in the Gulf region is estimated to have a volume of Rs 200 crore, with the UAE
market alone accounting for nearly half of that," he said.

Jan, 2015

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RETAIL
Reliance focuses on digital format to drive retail growth
Despite challenges posed by various e-commerce players, Mukesh Ambani-led
Reliance Retail seems to be focused on consumer durable retailing.Of the total 279
stores Reliance Retail opened during December FY15 quarter, 231 belonged to
Reliance Digital, the durable format of Reliance Retail.Reliance took the store count
of Reliance Digital from 689 in September quarter of the current financial year to
920 during the December quarter, making it the largest consumer durable and
electronics retailer in the country.

Difficult to do business in India, government needs to change it: Walmart

The Indian market is an opportunity that no foreign or domestic investor can ignore
but it is "really difficult" to do business in the country and the government needs to
change it, according to US-based Walmart.The world's largest retailer also said its
arm, Walmart India will focus on wholesale cash and carry business in the country
currently and is not looking at multi-brand segment, where foreign investors are not
allowed beyond 51 per cent. "If I was to look at from a US company perception, the
Indian opportunity, I think, it's a market which no foreign investor or a domestic
investor can really ignore," Walmart India President and CEO Krish Iyer said
here.Iyer, who is here to participate in CII's Partnership Summit, however, said that
the government needs to work more on improving ease of doing business in the
country as "the current perception is that it's not easy to do business here".

Alibaba's latest mobile messaging effort: social networking for businesses

China's Alibaba Group Holding Ltd, the world's biggest e-commerce company, is
piloting a mobile messaging app aimed at marrying social networking with business,
an Alibaba spokeswoman said on Friday, as the company expands its enterprise
services.The app, called DingTalk, was quietly made available in December and is
still in beta testing, according to its website. (http://www.dingtalk.com)Capable of
carrying conference calls and group messaging, DingTalk targets small- and mediumsized enterprises, many of which are already Alibaba's customers.

Department of Posts may set up separate entity for e-commerce by next year
The Department of Posts (DoP) may set up a separate entity for handling ecommerce services by next year to cash in on the burgeoning demand for
delivery and logistics.According to sources, during a recent meeting chaired by
Prime Minister Narendra Modi, DoP said it aims to conduct a financial feasibility
study for setting up a separate entity for e-commerce by October this year and
start the operations by next year.
Sources said DoP may appoint an on-board consultant for development and
operationalisation of business and marketing strategy for commerce market by
July this year.Communications and IT Minister Ravi Shankar Prasad had earlier
said India Post with the world's largest postal network is best suited to offer
delivery services to e-commerce firms.India Post has over 1.55 lakh post offices
of which around 1.40 lakh are in the rural areas. On an average, a post office
serves an area of 21.21 sq. km and a population of 7,175 people.

Jan, 2015

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PAGE 5

SU DO KU

TOON CORNER

Send us the answers by 23rd Jan, 2015 (in the specified excel sheet). First three people to solve it will be declared as
winners in next magazine.

From HBR
Your Customers Behavior Is a Competitive Advantage
At a reception for JetBlues most frequent Mosaic flyers, I had the opportunity to listen to the airlines top
management discuss its ambitions to improve operations and enhance customer experience. The discussion was
excellent and on a whim I asked one of the most senior executives what JetBlues customers could do to improve
the airline. He paused for a long moment and essentially responded, The most important way our customers could
improve the airline would be by being more polite. He talked about how stressful and debilitating it was for ticket
agents, gate agents, and flight attendants to deal with rude and ill-mannered flyers. Nicer customers, he maintained,
would make for a nicer experience for everyone. Lo and behold, JetBlue recently announced a series of in-craft
jetiquette videos for its flyers. The hope and expectation, of course, is that these visual nudges will preemptively
smooth the air travels rougher edges. We wanted to say, Weve all been there. We get it, and lets talk about it,
declared one JetBlue executive about #FlightEtiquette. Its a universal truth of flying. As big a fan as I am about
organizational learning and the need to relentlessly refresh and renew employee human capital, Im an even bigger fan
of investing in how customers and clients create value. Making customers better makes better customers. Improving
employees and associates is smart business. But so is improving your customers and clients. What and how your
customers learn to make your business run better should be every bit as important as whatand howyou want your
employees to learn, as well. Customers need to learn from you almost as much as you need to learn from customers.
Serious customer experience design debates in organizations should focus almost as much on customer learning as
customer delight.

Jan, 2015

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ELIXIR

Information Technology
TCS sacked employees over non-performance
India's largest software services provider TCS on Thursday said only
1,000 jobs have been axed in the country due to non-performance,
clarifying that this is a part of normal working and not due to any mass
restructuring exercise as being speculated.
The Tata-group company said it carries out performance reviews every
year, which result in this "involuntary attrition" and added that the
overall number of 2,574 includes only 1,000 jobs locally. He also said the
company does not employ sub-contractors in the country to be laid off.

Windows 7 exits mainstream support

Yet another end is nigh for Windows 7. After months of build-up
Microsoft killed standalone software sales of the operating system in
October 2013, and Windows 7 consumer PCs stopped being
manufactured in October 2014the venerable OS is finally exiting
mainstream support on January 13, 2015. And for months now, the
Web has been flooded with a wave of confused or downright
fearmongering headlines and articles implying that Windows 7 is
following Windows XP into the graveyard.
It's not. You'll still receive those oh-so-critical security patches during
extended support, meaning that while Windows 7 won't be in active
development beyond next January, it won't be tossed to the wolves of
the Web, either. Hotfixes will still be provided, too, assuming they're
security related.

US President Obama defends British PM Camerons call for tech backdoors

Earlier this week, we had heard reports of British Prime Minister David
Cameron calling for a ban that doesnt provide access or can be read by
security services. Yesterday, US President Barrack Obama came to the
defence of his British counterpart at a joint press conference in the US,
calling for tech companies to provide backdoor to track peoples social
media messages, according to The Hill.
US President Obama has requested technology companies to create
provisions for allowing government to track suspected terrorists or
criminals. According to Obama terrorists are adept at using social media
and the internet to communicate amongst themselves. When we have
the ability to track that in a way that is legal, conforms to due process, rule
of law and presents oversight, then thats a capability that we have to
preserve, he said

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SPORTS
del Potro pulls out of Australian Open
Juan Martin del Potro, winner of the 2009 U.S. Open, has withdrawn
from the Australian Open on the eve of the tournament due to concerns
that an injured wrist was not fully recovered.
del Potro, 26, cut short a practice session on Sunday and then told a
media conference that he didnt feel prepared to play in Melbourne. del
Potro was one of the most significant absentees from the mens game
for much of last season, which he spent recovering from major left wrist
surgery after bouncing back from right wrist surgery in 2010.

India set for tri-series with one eye on World Cup

All set to defend its cricket World Cup crown in less than a month, India
will get its preparations underway with the aim to find the right
combination for the marquee event when it takes on Australia in the
ongoing ODI tri-series here on Sunday. While this tri-series provides the
perfect setting for experimentation, the need of the hour is to get a
settled combination going ahead to instil confidence in the side.
Skipper Mahendra Singh Dhoni will return to international cricket after
a little over two weeks since his Test retirement at the same venue, and
he will have some decisions to make. The first order of business will be
to make a firm choice about the opening combination. Ahead of
Sundays game, the team management has failed to specify whether it
will be Ajinkya Rahane or Rohit Sharma pairing up with Shikhar Dhawan
at the top of the order, or indeed whether a third possibly surprising
combination might be thrown up.

Honda wins Formula 1 engine battle with FIA

Formula 1's governing body the FIA has backtracked on an earlier ruling
that allowed Mercedes, Renault and Ferrari to upgrade their engines but
not Honda.
The move comes after Honda expressed its unhappiness about what it
considered to be an unfair situation. Honda will now be allowed to develop
its brand new engine within limits explicitly laid out by the FIA.
Mercedes, Renault and Ferrari are allowed to change up to 48% of the
engines they used in 2014 by the end of the 2015 season. This is defined by
a number of 'tokens', which are assigned to parts of the engine on the
basis of their influence on performance. Out of a total of 66 tokens,
Mercedes, Renault and Ferrari can modify 32 through 2015.

Jan, 2015

Editorial Team
Maruthappan S
Nirbhay
Harsh Marodia
Sanjayan S

VOL 2 ISSUE 11