According to Dr BK Modi, chairman, Spice Mobility, mobile Internet can enable India to achieve double digit GDP growth rate by capitalising on the young population of the country
Spice Mobility has announced the switch to being a technology company focused on the Mobile Internet space. The company also unveiled the strategic roadmap to complete the first phase of the switch by September 2011.
Dr BK Modi, chairman, Spice Mobility, said, "India is already one of the two fastest growing large economies in the world and can very well become the largest economy. Mobile Internet can enable India to achieve double digit GDP growth rate by capitalising on the young population of the country."
"It is our duty to support the Indian government in making the country Internet literate. Our businesses have continued to lead the country's move from office automation in 1980s to Internet revolution in 1990 to mobile telephony revolution in 1995 and now the digital highway with mobile Internet," he added.
The Switch will leverage Spice groups businesses across sectors and geographies to catapult the historically neglected i2i economies in to emerging digital economies with Mobile Internet. We already have other subsidiary and associate companies in the i2i region (Ivory coast to Indonesia) and it is our intention to bring all of them under one fold. We will thus become a true multinational operating across Africa, Middle East, Indian subcontinent and South-East Asia. This will also help double Spice group revenues in the next two years.
India's move to 830 million mobile phones subscribers far out-stripping the PC industry is a harbinger of the paradigm shift in the developing nations of the world. Sectors ranging from finance, education, entertainment and healthcare will evolve in to mobile Internet businesses. For the last two years Spice Mobility has been putting together the building blocks to leverage this paradigm shift.
The roadmap for the switch to being the Mobile Internet company includes having a global supply chain for sourcing efficiencies and R&D support.
Spice devices, already enjoys 22% market share in some of the northern states. To replicate this success across the country Spice is creating seven clusters. This will give the required focus to meet the regions business requirements and be closer to the customers.
In the late afternoon, shares of Spice Mobility were trading 0.74% down at Rs100 on the Bombay Stock Exchange.
All airlines are facing cost pressures due to a rise in ATF prices. But with fares recovering and Air India pilots on strike, the summer may prove to be better than expected for private airlines
Air India triggered an aggressive pricing war in the fourth quarter of FY11. Since April, however, fares have been rising and some of the competitive pressure seems to be letting up. This might prove to be a silver lining for the airline industry which is struggling with a huge rise in prices of aviation turbine fuel (ATF). Prices of ATF have risen about 50% since October and by 27% year-to-date. However, with the demand situation in favour of airlines, the chances are that this rise will be increasingly passed on to passengers and this would improve margins.
The other airlines are also expected to benefit from the strike by Air India pilots. About 800 pilots have been on strike since the midnight of 27th April, demanding a fixed salary, the removal of the Air India chairman and managing director and an inquiry by the Central Bureau of Investigation into alleged mismanagement of the airline. Cashing in on this situation, private airlines have already hiked fares, by up to 50% in some cases.
HSBC has calculated "the potential impact of a 15% disruption in services of (the erstwhile) Indian Airlines on Jet Airways. If the traffic lost by the state carrier as a result of the strike spills over to the private carriers in the proportion of their market share (Jet+Jetlite=25%), we estimate that all else being equal, each week of the strike would add roughly 0.7% to our current FY12 profit forecast for Jet Airways by pushing up load factors by 1.5 ppts," it has said in a recent report.
Kingfisher still remains the single largest airline in India with a market share of 20%, but Jet and Jet Lite have a combined market share of 25.4%. Air India's market share has fallen slightly to 15%. Indigo, Spice Jet and GoAir have more or less maintained their market share. However, Indigo is fast becoming a big player with a market share of 19.5%.
In March 2011, airline passenger traffic volumes grew by 23% year-on-year to 4.8 million-up about 5% month-on-month. In the first quarter of the calendar year 2011, growth was 21% year-on-year. The load factor also improved to 75% year-on-year (versus 71% in the previous corresponding period) but was still lower than the 20% load factor seen in February this year. Sequential load factor performance was not great, with Jet Airways reporting the biggest fall at 7.3% and Air India at 6.9%.
The Kingfisher Airlines stock has gone up from about Rs40 to Rs44 in the past one month. However, on a three- to six-month basis, the stock has not done too well. Jet Airways, too, has not gone up much over the period, weighed down by higher ATF prices and Air India's recent pricing war.
Recently, Kingfisher allotted 5.68% shares, valued at around Rs1.8 billion, to State Bank of India on a preferential basis under a debt recast plan. The company plans to convert about Rs13.55 billion worth of loans into shares and also convert the founders' debt of Rs6.5 billion into share capital.
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According to IRDA, the overall premium of the industry rose 22% to Rs42,568 crore against Rs34,984 crore during the previous financial year
The premium income of general insurance companies, except for Reliance General, rose last fiscal on higher auto sales, increase in health insurance products and an across the-board rise in premium rates.
According to the Insurance Regulatory and Development Authority (IRDA), the overall premium of the industry rose 22% to Rs42,568 crore against Rs34,984 crore during the previous financial year.
Most companies have shifted their focus to motor and health segments. Meanwhile, insurers have increased premiums on group health insurance, which was a loss-making segment for them.