Bharti's human side

Tattle

The Mittals of the Bharti group want the group to present what they describe as "a human face."

So the group is planning on setting up a Bharti Foundation. The foundation will deal with education, health and medical sciences and will encourage the arts, including music, dance and painting, and will fund sports people.

What is more, the group is also setting up an institute of telecommunications at the Indian Institute of Technology in New Delhi at a cost of Rs 20 crore.

With that kind of outlay, is the group's foray into the telecommunications industry finally paying off?

Product company blues

A Hyderabad-based application server technology developer is rumoured to be looking out for funding to the tune of $15-20 million.

The company earlier raised about $6.5 million in two rounds and became cash-flow positive last financial year. But it finds it is up against a wall.

The general feeling in the IT industry is that venture capitalists have deserted product companies.

Says the head of the company: "Unless VCs come to the rescue of product companies it will be very difficult for them to survive. For example, it requires a minimum of $15 million to bring one of our security product suites into the market. Which product company is in a position to dole out such kind of money, that too when market conditions are still uncertain?"

A venture capital company executive agrees. He says that today it is worthwhile to invest in a business process outsourcing company which shows promise of strong cash-flows in the near future, rather than betting on a product company.

So several venture capital firms have invested in BPO companies like Nipuna Services and 24/7 Customer recently.

It will take at least 18 months for the markets to recover, after which product companies could again start posting exponential growth, he forecasts. That's not very heartening news for product companies.

Teeing off, in style

You have a problem "� you want to buy a stake in a company and so you want to impress your potential partner that you carry clout. So what do you do? Why, invite the chief executive of the company to a round of golf "� and make sure your very high political contact is present there too.

That's exactly what one publisher who recently struck a big deal is said to have done. He organised a game of golf for his potential partner in a well known golf club in east India.

Also present was the son-in-law of a well known politician who is part of the BJP government and wields immense clout. Call that teeing off in style.

The sound of great news

The FM radio task force, headed by Federation of Indian Chambers of Commerce and Industry secretary general Amit Mitra, has made a raft of suggestions, including dismantling the licence fee arrangement with FM radio companies and asking them to migrate to a revenue share model.

The ban on news and current affairs is also being re-considered and may be lifted. Networking, disallowed in the original policy, may be allowed.

What this means is that today a radio company that owns several channels in different cities cannot hook its stations together and air a common programme. This may now be allowed.

Government sources say that the recommendations are likely to be accepted as the task force's mandate is to introduce real reform.The task force has also asked for a one-month extension to submit its report.

It was to submit its report by September 30.