Retailing: "India tops list of 30 attractive countries"

Global retailers will take advantage of the more favourable FDI rules and enter India with partnerships A. T. Kearney anticipates that global retailers such as Wal-Mart, Carrefour, Tesco and Casino will rapidly take advantage of the more favourable FDI rules and enter India through partnerships with local retailers.

CHENNAI: India tops the list of 30 most attractive countries in the emerging markets for global investment opportunity for mass merchant and food retailers looking to expand overseas.

This emerges from the annual study of retail attractiveness among 30 emerging markets conducted by A.T. Kearney, a management consulting firm.

Published annually since 2001, the Global Retail Development Index (GRDI) helps retailers prioritise their global development strategies by ranking emerging countries based on a set of 25 variables, including economic and political risk, retail market attractiveness, retail saturation levels, and the difference between gross domestic product growth and retail growth.

GRDI study

The 2005 GRDI study finds India moving from the second position to the top slot, pushing Russia to the second place. Russia held the top slot since 2003.

India's retail market totals $330 billion.

It is vastly underserved and has grown by 10 per cent on an average over the past five years.

It is also one of the most fragmented retail markets in the world - the combined market share of the top five retailers totals less than two per cent.

What drove India to top slot was the current moves to ease curbs on direct ownership on foreign retailers.

"The message for retailers on India is clear: Move now or forego prime locations and market positions that will become saturated quickly," said Mike Moriarty, A.T. Kearney's vice-president, in a release. "Global retailers that missed opportunities to capture first-mover advantage in China can make up for it in India," he added

A.T. Kearney anticipates that global retailers such as Wal-Mart, Carrefour, Tesco and Casino will rapidly take advantage of the more favourable FDI rules and enter India through partnerships with local retailers. Other retailers such as Marks & Spencer and Benetton Group, who are currently operating through a franchise model, will most likely switch to a hybrid ownership structure.

Combating the moves of global retailers, leading Indian retailers such as Pantaloon, Westside and Big Bazaar will look to increase scale and enhance logistics and supporting technology.

Despite Russia's drop to second position, Eastern Europe continues to represent the best investment opportunities for retailers — Eastern European countries make up 12 of the top 20 investment destinations in the index.

Ukraine jumped eight places to third because of strong increases in GDP and retail sales, a highly fragmented market and large urban population. Bosnia — Herzegovina and Macedonia enter the index for the first time this year.

Joining India, Russia and Ukraine on the list of ten countries retailers should enter immediately are China, Slovenia, Latvia, Croatia, Vietnam, Turkey and Slovakia.

Remains of Subrahmanya temple found near Mamallapuram

Renews debate whether it was one among the Seven Pagodas

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Discovery close to the Atiranachandesvara cave-temple

Remains of the 1,200-year-old temple include two granite pillars bearing inscriptions of Pallava kings

Bricks and potsherds found from the ruins

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These are the remains of the 1,200-year-old Subrahmanya temple, found on the beach close to the Tiger Cave, a few kilometres off Mamallapuram. On the right are the two pillars with inscriptions in Tamil, belonging to the Pallava kings, Dantivarman and Nandivarman III, that speak about the existence of the temple there. On the left are the remains of the temple's plinth, made of granite slabs, and the inner core. In the background is the big rocky outcrop, with three inscriptions.

CHENNAI: The remains of a Subrahmanya temple belonging to the Pallava period (circa 8th century A.D.) have been found on the beach close to the Tiger Cave, a few kilometres off Mamallapuram, near here.

The discovery has renewed the debate whether the temple was one among the Seven Pagodas that reportedly existed on Mamallapuram's shores that are famed for its Pallava monuments. The Archaeological Survey of India (ASI), Chennai Circle, had unearthed in February and March this year the massive remains of a Pallava temple a few hundred metres from the Shore Temple.

Now comes the latest discovery close to the Atiranachandesvara cave-temple, popularly called the Tiger Cave. "This temple may belong to an earlier period than the temple discovered close to the Shore Temple because it has a brick foundation. These bricks belong to the Pallava period," said T. Satyamuthy, Superintendent Archaeologist, ASI, Chennai Circle. The remains of this 1,200-year-old temple include two granite pillars. While one pillar bears the inscription of the Pallava king Dantivarman, and is dated to 813 A.D., the other pillar has an inscription of another Pallava king, Nandivarman III, and is dated to 858 A.D.

Tamil Nadu temple find confirms ancient dynasty

Chennai, July 7: The Archaeological Survey of India discovered the first temple built by the legendary ruler-architects of the Rashtrakuda dynasty, dating back to the 10th century AD, when its explorers recently stumbled upon a dilapidated little place of worship at Thirumalaicheri in Vellore district, about 200 km from here.

For Tamils, who have basked in the glory of the magnificent temples built by the great Pallava, Chola and Nayak kings, the Rashtrakuda temples might come as a disappointment, but the ASI discovery has excited archaeologists who, till now, only had a few inscriptions referring to their existence. It was said that the Rashtrakuda dynasty, succeeding the Chalukyas, had ruled over stretches of what is now Maharashtra, Karnataka and Andhra Pradesh and built the temples in Tamil Nadu in the course of cultural exchanges caused by marriage alliances. After the Guptas, the Rashtrakudas emerged as a powerful dynasty, though their origin is not clearly established.

"The Rashtrakuda temples have embellished temple architecture in Tamil Nadu. We only had inscriptions till now about their existence, but now we have found material evidence by stumbling upon this Somnatheswara temple in Tirumalaicheri," ASI superintending archaeologist K.T. Narasimhan, who is in charge of temple survey projects, told this newspaper.

He said unique decorated pillars, door jambs and Nandi sculptures decorated with bells were salient features of Rashtrakuda architecture. "One can see all these aspects in the Somnatheswara temple, which was constructed by Rashtrakuda King Krishna III. It was rebuilt by the Nayaks," he added.

He said the Rashtrakudas were the first to use decorated pillars and "vallies (rows of decorations)" at the entrance to the sanctum sanctorum. The ASI, which has undertaken a project, is also searching for the other two temples in Tamil Nadu.

According to him, besides these three temples, the Rashtrakudas have influenced the architecture of other temples in the region.
environment issues.

New dolphin species discovered in Australia

Sydney: The first new dolphin species to be identified in 30 years has been found in Australian waters, researchers announced. The shy Australian snubfin dolphin lives in shallow coastal waters in northern Australia and possibly Papua New Guinea, said scientists Isabel Beasley and Peter Arnold. The snubfin was initially thought to have been an Irrawady dolphin, usually found in Asia and Australia, but DNA tests proved that it was a different species, said Beasley of James Cook University in Townsville. The dolphin has been given the scientific name of Orcaella heinsohni in honour of earlier research in the 1960s and 70s by the university's George Heinsohn. Because the snubfins live in coastal waters "they are susceptible to many human threats including accidental catch in shark and fishing nets as well as effects of coastal development," Beasley said. "Human threats on Irrawaddy dolphins in Southeast Asia are even more severe. Five Southeast Asian dolphin populations were recently classified as 'critically endangered' by the World Conservation Union. "This means the total population is less than 50 individuals so there is a high chance of local extinction in the near future," she said. Arnold, of the Museum of Tropical Queensland, told AFP they had no figures yet for the snubfin population, which he said was the first new species discovered in 30 years.

India ranks 4th among global economies

Country	2004 GDP in trillion dollars
United States	10.980
China	6.449
Japan	3.567
India	3.022
Germany	2.271

As the G-8 meet in Gleneagles, there's a question increasingly doing the rounds: what is the relevance of the group? It was supposed to be a group of the world's largest and most p o w e r f u l economies. The plain truth is, it no longer is.

Look at it whichever way you will, the US, Japan, Germany, UK, France, Italy, Canada and Russia are simply not the biggest economies.

Nor can anyone today suggest that China, for instance, can be left out of any list of the most powerful economies.

In fact, if economies are ranked by sheer size, China would be second only to the US and India would come in at no 4, one place behind Japan and comfortably ahead of Germany.

How? That's because the sizes of economies are no longer measured by converting their gross domestic product (GDP) into US dollars at the prevailing exchange rates. Instead, we have what is called the purchasing power parity (PPP) rate that is used by institutions like the International Monetary Fund (IMF) and the World Bank to compare GDPs of different countries.

What the PPP method does is to recognise that exchange rates do not properly represent what different currencies can buy in their own home economies and hence distort the picture when we are comparing sizes across countries.

Exchange rates are determined essentially only by goods that are traded across borders. They would not, therefore, take into account the fact that, say, a haircut in Delhi or Mumbai may cost just Rs 50 while the same haircut in New York may cost around $20.

Now if India's GDP were converted into dollars using the normal exchange rate, our barber's contribution to GDP would be just over a dollar for each hair cut he provides while the New York barber would be weighing into the US economy at $20 per cut.

Kollywood's half-yearly report

Kollywood's half-yearly report is out.

Winners all: Chandiramukhi, Anniyan,Arindhum Ariyamulum, Ullam ketkume

It is boom time for Tamil cinema in the first half of 2005 (January to June), as 45 films were released. Among them was a mega blockbuster, two super hits and at least three films which will recover their cost and breakeven. Tamil Nadu Theatrical Rights (TTR) has emerged as the biggest domestic territory in the country. Among the 2005 releases so far, three films will collect a distributor's share of over Rs. 15 crore-plus from TTR. Compare this with India's biggest territory, Mumbai for Bollywood biggies, which has potential only to do business worth Rs. 10 crores! The overseas market for Tamil films is also booming and newer markets are emerging. In South Africa, hitherto an unexplored market, Rajnikanth's "Chandramukhi" is a huge hit and there are plans to dub the film into Zulu, the local African language! And if the Tamil film industry becomes more professional and streamlined, it will be able to attract institutional funding and NRI investments.

Size does matter

It was the star spangled extravaganzas that drew mega bucks. The biggest hit of the year "Chandramukhi" thanks to its charismatic star Rajnikanth has made Sivaji Productions a brand name. The film is reported to have done business worth Rs. 50 crores worldwide from domestic, audio, overseas and satellite rights. The film is clearly the biggest box-office hit in the history of Tamil cinema.

Sometimes the box-office revenue outweighs the general perception the audience may have about a film. Take for instance, Vijay's "Tirupachi" that opened amid mixed reports. The mass entertainer was lapped up by a section of the audience that simply loved the film and its dapankoothu songs. According to trade sources "Tirupachi" is the first film of Vijay to get a distributor's share of over Rs. 2 crores from the Coimbatore-Nilgiris area! But everybody cannot make a film with Rajnikanth, Vijay or Vikram. Actors like Surya, Silambarasan, Jayam Ravi or even a rank newcomer like Arya are also saleable though they don't get the kind of opening that big stars have. This year, at least a dozen young stars, some of them being producers' sons, are trying to enter the `star slot'. An actor like Jeeva, son of leading producer R. B. Chowdary, was noticed in "Raam" which was appreciated for its presentation and enjoyed a youth audience.

The stars and the packaging are what matter as proved by both the big hits and average grossers such as "Raam", "Arindhum Ariyamalum" and "Ullam Ketkume". All these films are targeted at the youth who like peppy numbers and glitz. Though the audio industry is on its death bed, music continues to be an important aspect in the packaging of a film. Vidyasagar, Yuvan Shankar Raja and Harris Jayaraj are the top music directors who strike a chord with the youth.

The content and concept of films may not have changed, but the way they are marketed has changed. It is surprising that the box-office trends in Tamil Nadu seem to be following the Hollywood pattern. The way "Chandramukhi" and "Anniyan" have been marketed is unique and it has made them money spinners — thanks to a combination of high voltage marketing, record number of prints, high priced tickets in the first two weeks, multiple shows during weekends and, above all, the film being marketed as brand!

In Tamil Nadu, the State Government policies — lowest entertainment tax and crackdown on video piracy — have brought the audience back to the theatres. On the downside, the Tamil film industry is now totally dependent on its superstars to deliver the goods. The cost of star movies has gone through the roof and star salaries are astronomical, almost 55 per cent of the budget, which may result in the boom going bust. But the highlight of this mid-year trend is that gross box-office collections of Tamil films have increased worldwide.

Facts and figures

January 1 to June 30

Number of films released: 45

Mega Blockbuster:

Chandramukhi

Super hits: Tirupachi,

Anniyan

Hits:

Arindhum Ariyamalum,

Raam, Ullam Ketkume

(The ratings are based on the box office collections, the cost of the film and the price at which it was sold to distributors)

Indians pay Rs 21,068 cr per year as bribe

The common man pays bribes totalling Rs 21,068 crore a year for various public services, says the 'India Corruption Study — 2005’, released by Transparency International on Thursday.

Sixty-two per cent of those surveyed said corruption is for real, having indulged in it.

A third of them said corruption is on the rise compared to last year (2004-05).

Police are on top of the corruption chart, followed by lower courts and land administration.

Government hospitals indulge in corruption while denying medicines, securing admission, consultations with doctors and availing of diagnostic services.

Despite reforms, electricity services are high on the corruption index.

The public distribution system is lower down, since those availing of it are affected by leaks in the system rather than direct monetary corruption on the part of the service providers.

Water supply figures at the other end, ranking the lowest on the corruption chart.

Among the states, Kerala is the least corrupt, while Bihar emerges as the most corrupt. J&K comes next to Bihar, Madhya Pradesh third.

High on the list are Karnataka, Rajasthan, Assam, Jharkhand, Haryana and Tamil Nadu.

Delhi comes in the middle, 11th among the 20 states surveyed. Among the less corrupt are Himachal Pradesh, Gujarat, Andhra Pradesh and Maharashtra.

The findings are based on a national survey, claimed to be the largest ever with 14,405 samples across 20 states and 151 cities.

Releasing the survey, Admiral (retd) R H Tahiliani, a former Navy chief, said the situation could be remedied by legislations like the Right to Information Act, a positive role by the media and by public awareness.

India's trade deficit touches historic high of $ 38.1 bn.

With sharp rise in the oil imports bill and merchandise, India's Balance of Payments (BoP) for 2004-05 saw a historic high trade deficit of USD 38.1 billion as against USD 15.4 bn in the previous fiscal.

Current account slipped into a modest deficit of USD 6.4 billion after a three-year span of continuous surpluses.

In the face of fast growing economy, imports outpaced exports by registering a high of USD 118.96 bn during 2004-05 as against USD 80.17 bn in the previous fiscal, while exports grew to USD 80.83 bn (USD 64.72 bn in 2003-04), according to data released by RBI here on Thursday.

While the oil import bill went up by 45.1 per cent, the non-oil import payments were higher by 49.5 per cent.

Reflecting strengthening of domestic industrial activity, the non-oil import growth was led primarily by the imports of capital goods and industrial inputs, RBI said.

The merchandise export growth was significantly above the 16 per cent target set up by the Commerce Ministry, it said.

Invisible receipts surged by 46.3 per cent due to significant growth in travel, transportation, software exports, and other professional and business services.

Sustained buoyancy in travel receipts reflected a rise of 25 per cent in international tourist traffic in India, it said, adding, private transfers, primarily comprising remittances from Indians working overseas, remained sizable at USD 20.9 bn.

Invisible payments grew sharply by 69.8 per cent on account of higher outbound tourist traffic, transportation and business services such as business and management consultancy, and engineering services.