Infosys Technolo- gies' business process outsourc- ing arm said on Thursday it had NEWS ALERT signed a deal to acquire US- based VOLUME IV, ISSUE 14 NOVEMBER 12, 2009 McCamish Sys- tems for an upfront payment of $38 million, and an ad- Big Bazaar, Food Bazaar Boycott ditional $20 million based on targets. Kellogg’s Over Margin Row

After boycotting Cadbury in 2008 over margin differences, Kishore Biyani is at it again: In a bid to make this time it’s Kellogg’s at the receiving end. The country’s largest retailer has decided to gold jewellery af- boycott the breakfast cereal brand across various retail formats after the US firm turned fordable, branded down its demand for higher business margins. jewellery makers Future Group will sell the existing inventory of Kellogg’s in its stores such as Food Bazaar may now opt for and Big Bazaar, but will not take new stocks from next week, a company official familiar making standard with the development said. When contacted, Kishore Biyani, CEO of Future Group, said, gems studded jew- “We believe in collaborative relationships to build demand and consumption. Both sides ellery using lesser have to understand each other’s needs and work together to drive growth.” The conflict amount of gold has been brewing for some months now and discussions between the two have hit rocky with the prices of terrain in recent weeks. The retailer was demanding 15-16% margin from Kellogg’s, up the yellow metal from around 12% now, said a Future Group official requesting anonymity. constantly on a With the cereal maker refusing to bulge, Future Group is now looking at pushing its own bull run. Gold labels Tasty Treat range of cereals in place of Kellogg’s, he said. prices have appre- ciated by 20% since March this fiscal and are cur- rently rallying at Rs 17,000 per 10 gram. Govt To Continue Fiscal Stimulus: FM PM Says Will Exit Stimulus Next Year Many branded jew- ellery makers have Finance Minister Pranab Mukherjee said the After unveiling a bold PSU sell off plan, already started government will continue to provide fiscal Prime Minister Manmohan Singh said his making diamond stimulus to boost domestic demand until Government is better placed now to studded standard robust recovery is seen in the developed unleash financial sector reforms, but the jewellery using 14 economies. "There is need of generating fiscal stimulus will be phased out next year. carat gold instead strong domestic demand till robust recov- "We are also better placed than any time in of 18 carat. This ery takes place all over the world, particu- the recent past to push the reform process has made a price larly the developed economies", he said at forward... We need to ensure that financial the India Economic Summit. The minister system can provide the finance needed for reduction by 16%, was also hopeful that economic growth our development... This opens up a broad whose benefit jew- would touch 9-10 per cent towards close of agenda for reforms," he said inaugurating ellery makers have the 11th Five-Year Plan ending 2012. the India Economic Summit. been able to pass on to the consum- ers.

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