Naming of RIL's insurance venture to be watchfull

With Reliance Industries buying out Bharti Enterprises' 74 percent stakes in two insurance joint ventures -- Bharti Axa Life Insurance and Bharti Axa General Insurance, the question that begs an answer now is how the acquirer would rename the two companies.

With the Bharti group exiting the insurance companies, its name normally will not figure after the acquisition is completed.

The deal between Bharti and Reliance Industries will not disturb the French group Axa's 26 percent holdings in the two insurance companies.

Names of major ventures of the Reliance group always start with the word 'Reliance'. But the Mukesh Ambani-led Reliance Industries will find it difficult to rename the two acquired insurance companies with the word 'Reliance' as a part, industry sources told preferring anonymity.

The Anil Dhirubhai Ambani Group (ADAG) led by Anil Ambani, younger brother of Mukesh, already operates life and general insurance companies under the name Reliance Life Insurance Company Ltd and Reliance General Insurance Company Ltd.

According to Company Law, similar sounding names will not be permitted for usage. It is more so in the case of financial services business that deals with long term savings of the people.

"The word Reliance has good brand equity in the business field. It will be interesting how Reliance Industries plans to leverage that brand equity. Perhaps RIL Axa could be one way out," sources said.

Meanwhile, employees of Bharti's two insurance companies have been intimated about the stake sale.

According to industry sources, the insurance regulator has also been intimated about the stake sale.

Property owners seek reforms in archaic rent act

A delegation of property owners from Delhi and Mumbai met union Urban Development Minister Kamal Nath to complain about lack of reforms of the country's "archaic" rental laws, a official statement said.

The delegation, which met the minister, informed him that not a even single state has undertaken reforms of the rent control laws under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) even though it is mandatory.

The delegation demanded immediate notification of the Delhi Rent Act, 1995, and the tabling of the Delhi Rent (Amendment) Bill, 1997, for consideration and passage in the coming monsoon session of parliament.

Besides, the delegation requested that the JNNURM funds should be stopped to the states which have not undertaken the mandatory rental law reforms.

Nath assured the delegation that the bill "will not be kept hanging". He said he was with them on the issue.

Kingfisher launches nine new flights

Kingfisher Airlines has launched nine new flights on its domestic network connecting major metros to tier-II and III cities, the airline said.

"The launch of these nine new flights will further strengthen our presence in the country as the airline with the largest domestic route network," said Manoj Chacko, executive vice president, commercial, Kingfisher Airlines.

According to the company, its new expansion plan would allow the airline to provide first direct flight between Mumbai-Kolhapur (Maharashtra), New Delhi-Pantnagar (Uttarakhand) and Jabalpur-Indore (both in Madhya Pradesh).

"Kingfisher Airlines has also introduced direct flights between Mumbai and Thiruvanthapuram," the company said in a statement.

The new flights would be operated on the company's low-cost carrier (LCC) model - Kingfisher Red service - whose booking was already open, the statement added.

The airline operates 330 daily flights to 60 cities in India and eight international destinations with a fleet of 66 aircraft.

Maruti strike enters ninth day

The strike at Maruti Suzuki's plant in Manesar town of Haryana enters in ninth day as talks between the workers and management failed to resolve the deadlock over the creation of a second workers' union.

"Our stand is clear. The strike is illegal. Even the Haryana government and the labour commission have said the same," Maruti Suzuki India chairman R.C. Bhargava said.

He added that no intimation or notice was given to the management, which makes the strike illegal in nature.

According to him, the company has suffered a production volume loss of around 7,800 cars till Saturday, including 600 units on the first day of the strike June 4.

The total loss has been pegged at around Rs.240 crore.

"Our losses are currently pegged at around 7,800 cars since last Saturday," said another senior Maruti Suzuki official.

Bhargava added that the halt in production will have a short-term impact.

"Currently, dealers have enough stock for some 28 days of petrol-segment cars, while a short-term effect may be felt for some diesel variants, which in itself is only 20 percent of our entire portfolio," he said.

The company's facility at Manesar produces the company's bestseller hatchbacks and sedans like the Swift, Swift Dzire, A-Star and SX4.

The majority of the automobile giant's production takes place at its remaining three plants in Gurgaon district.

According to the company, the strike has the support of around 2,000-odd workers, of whom 11 were sacked Monday for demanding recognition of a separate workers' union.

Earlier, the management drew support from the Haryana government which on Friday banned the ongoing strike at the Manesar plant.

"The Haryana government has, under the provisions of the Industrial Depute Act, 1947, referred the matter of ongoing strike in Maruti Suzuki Udyog Ltd, Manesar, by the workers to the competent labour court and has also passed the orders prohibiting the continuance of the strike in the industrial unit," Minister of State for Labour and Employment Shiv Charan Lal Sharma said in a statement.

Members of other workers' unions supporting the agitation of Maruti Suzuki workers said that the Punjab and Haryana High Court may be approached soon, as forming a union was a legal right of workers.

"It is our right to form a union. About 40 local unions have joined us. We are going to conduct a meeting with all of them to decide the future course of action, which includes approaching the high court," said Anil Kumar, general secretary of All India Trade Union Congress.

Infosys get new directors

Infosys Ltd inducted new directors to the board, including three from the company and a renowned American businesswoman.

Company's chief financial officer V. Balakrishnan and senior vice-presidents B.G. Srinivas and Ashok Vemuri have been appointed executive directors of the re-constituted board, which will be headed by K.V. Kamath as executive chairman.

The US-based Ann Fudge will join the board as an independent director from October. She is a non-executive director at Unilever, Novartis AG and General Electric (GE) Co.

"The board of directors accepted the recommendations of the company's nominations committee to appoint the three senior executives of the company and Fudge as additional directors," the company said in a statement here.

The nominations committee, headed by independent director Jefferey S. Lehman, appointed Kamath, a former ICICI chairman, on April 30 as the board's new chairman in place of outgoing founder chairman N.R. Narayana Murthy, who relinquishes the executive post August 21 on superannuation at 65 years.

"I am happy that three outstanding Infoscions are joining the board. I have worked with all the three closely and have benefited immensely from their wisdom. I am confident they will take Infosys to even greater heights," Murthy told reporters after the company's 30th annual general meeting (AGM) in this tech hub.

The committee also appointed co-founder S. Gopalakrishnan as co-chairman of the board and promoted another co-founder S.D. Shibulal as chief executive from chief operating officer.

The 59-year-old Boston-based Fudge was chairperson and chief executive of Young & Rubican Brands from 2003 to 2006 and served on the Honeywell International board for a decade (1993-2003).

"Ann Fudge is a globally recognised and respected corporate leader. She will bring immense value to the board, particularly in strengthening our brand," Murthy said.

Srinivas is also head of manufacturing and product engineering while Vemuri heads banking and capital markets and strategic global sourcing.

Welcoming the new directors onboard, Gopalakrishnan said the induction of three competent professionals from within the ranks was a big step forward for the company.

"Apart from infusing new energy to the board, these three appointments demonstrate the company's commitment to recognise and reward outstanding leadership capability, hard work and performance," Gopalakrishan said.

Banking facility by 2012 in 73,000 villages

Union Finance Minister Pranab Mukherjee today said 73,000 villages in the country would have banking facility by next year.

"By March 31, 2012, banking facility will be available in 73,000 villages across the country going by the current pace of work," Mukherjee said after inaugurating a Punjab National Bank branch at Talai under Raghunathganj police station area in Murshidabad district.

Mukherjee said the government wants to enable every citizen of the country to avail banking facility in future.

He said Talai was among the 117 villages of the country to have been chosen by the PNB to mark its 117th year, where branches were being set up and local development projects undertaken.

Mukherjee also inaugurated an agri-training centre in the village and hoped it would help farmers acquire modern farming skills for better yield.

"Agriculture should prosper through modern technology," he said.