Mumbai: After hitching on to UK's MG Rover for a smooth drive into Europe, Tata Motors is planning to acquire a truck plant in South Korea to storm the southeast Asian market. The Tatas have appointed DSP Merrill Lynch to prepare their bid for the currently non-operational truck unit owned by Daewoo Motors, a part of the financially beleaguered. The company's bid was a part of its plan to grow vigorously in the southeast Asian market, including South Korea, Thailand and Malaysia, by exploiting the cost advantage factor. Bombay House sources said Tata group chairman Ratan N. Tata wanted to emulate the global success of the Indica small car with the "truck of the future.'' The project is being directly monitored by Mr Tata to make sure it competes successfully with products from the likes of Daimler Chrysler, Mercedes Benz and Volvo.

"We feel that Indian companies should also become international players,'' a Tata Group source said.Tata Motors can cash in on its design and engineering skills to tweak the assembly line to make "the truck of the future'', for which it has already undertaken two years of study at its R&D headquarters in Pune. Tata Motors recently drove its Indica into the European market through a marketing arrangement with MG Rover. The company has also bagged a project from the Senegal government to set up a bus assembling unit in that country.

Courtesy: The Economic Times, September 30, 2003

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A good monsoon this year has brought cheers to the growth-starved fast-moving consumer goods (FMCG) sector. Thanks to the economic growth indicators looking up, the FMCG sector is expected to post a growth rate of 5-10 per cent for the next six months ending March 31, 2004. "There is certainly a feel-good factor in the FMCG industry. However, it will translate into better growth rates only December onwards. The general feel-good factor, good monsoon and expected high rate of GDP growth are the main reasons for the feel-good factor in the FMCG industry," said Godrej group chairman Adi Godrej. Growth in all segments of the Rs 80,000-crore FMCG industry is expected to accelerate, along with a considerable improvement in consumer spending, especially in rural India. Segments like soaps, toothpaste and other personal care products, along with beverages, are expected to perform well.

FMCG behemoth Hindustan Lever is expected to post a topline growth in excess of five per cent for the September quarter over the same quarter last year. The company had reported a topline growth of 3.02 per cent to Rs 2,693.42 crore in the June quarter. However, a clear picture of the company's performance would emerge in the December quarter. "One can expect the industry to post a growth rate in high single digit percentages (5-10 per cent) and there could be a few companies which would post a growth in excess of 10 per cent." With the sector finally looking up, the industry needs to capitalise on the feel-good factor to build stronger relationships with the consumer through continued provision of enhanced value. Product innovations, and not short-term gimmicks should be used as devices to improve bottomlines.

Courtesy: The Indian Express, September 30, 2003

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New Delhi: European Union has emerged as a major destination for export of electronic components from India, while the north American region comprising the US and Canada has fallen behind. There was a 48% jump in exports to the EU region in '02-03 - to a whopping Rs 1,002 crore from Rs 677 in '01-02 - while there was 31% decline in exports to the north American region - to Rs 405 crore in '02-03 from Rs 592 crore in '01-02.

Data from the Electronics and computer software export promotion council (ESC), an autonomous organisation under the department of information technology reveals that exports of electronic components to the EU accounted for 42% of the total exports during '02-03, as against 31% in the previous year. Total exports of electronic components have registered a 9% growth in '02-03, touching Rs 2,400 crore, as against Rs 2,200 crore in '01-02.

While north America was pushed to the third slot, Singapore, Hong Kong and other South Asian countries have emerged as the second largest destination for India's electronic component exports. With a 22% growth in exports over the previous year, exports to these countries shot up to Rs 562 crore in '02-03 from Rs 462 in '01-02. The Middle-east accounts for exports of Rs 181 crore, that is, 7.5% of the total export of electronic components. Exports to Japan, Korea and other far east countries, at Rs 122 crore, slid 19% from Rs 126 crore in the previous year. Other major export destinations were African (Rs 33 crore), Europe (Rs 35 crore), Australia and other Oceanic countries (Rs 46 crore), Latin America (Rs 18 crore) and Russia and CIS countries (Rs 5 crore).

Courtesy: The Economic Times, September 30, 2003

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Mumbai, September 29: The RPG Group promoted Ceat Ltd., is exploring the possibility of tapping tyre companies in China and the Asean countries as part of its overseas expansion. The company is in talks with various tyre manufacturing companies to source tyres which will be bought and branded with the Ceat logo and then marketed in those countries. Mr. Sandeep Gulati, chief manager, Ceat Ltd. said: "We are weighing options to foray into the Chinese and Asean markets. We are looking for potential partners to sources tyres to cater to these markets. We want to replicate the model which we have worked out with Pirelli Tires in Italy in these two new markets."

The company's move assumes significance as leading tyre manufacturing companies have identified China as an emerging hub to source tyres as the production cost is comparatively lower than in other countries in the world. JK Industries, which manufactures JK Tyres has tied up with two Chinese tyre manufacturers to source tyres. Their profit in the Chinese market was Rs. 80 crores and they are targeting sales of Rs. 400 crores this year. Similarly, Apollo Tyres is also planning to set up a manufacturing facility in China to tap the East Asian and European markets. The company has already started negotiations with leading players for technology collaborations.

Courtesy: The Asian Age, September 30, 2003

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Hung proudly on the wall facing Sujit Kumar Singh's desk at Shreya House, Mumbai, is a picture of him talking to Vladimir Putin on the occasion of the Russian President's State visit last year. They're standing surrounded by luminaries from Indian industry and government, all smiling politely, but obviously excluded from the intimate conversation - because it's in Russian. Singh made a linguistic leap when he moved from Bihar to Russia twelve years ago, and English was one language he missed learning. But now that he's returned to set up base in India - Shreya acquired Rallis India's pharma division from the Tatas two years ago and more recently, it has taken over the domestic marketing division of Plethico Pharma.

Singh went to study at the Kursk Medical University at the age of 18, along with 11 other Indian students. Singh had no background in business - his father was a school headmaster in a village near Patna - but he recognised the opportunity provided by chaos. Numerous Indian pharma companies had built their fortunes on exports to Russia and now they found themselves at sea, with no marketing infrastructure and no reliable distribution network to sell through.

Singh's first major supplier was Cadila Laboratories. He met up with CEO Indravadan Modi in Moscow and struck a deal to sell the Ahmedabad-based company's products in the city region. By then, Singh had decided to quit medical school to concentrate on his fledgling business. The Shreya group's second major supplier was Ranbaxy and this was followed by other Indian companies like Dr Reddy's Laboratories, JB Chemicals & Pharmaceuticals and then transnational names like Aventis, GSK and Pfizer. By then, Singh had created a pan-Russia distribution network and had proved himself to be a reliable partner. Ganesh Nayak, executive director of Zydus Cadila, has worked with Singh for 12 years. He says: "He's ethical in his dealings and makes payments on time, which was an important factor in Russia those days. He may not be charismatic or articulate, but he's a hard working, astute businessman, in the right place at the right time."

Today, the Shreya group turnover is $400 million, of which $340 million comes from Russia, making it the country's third largest pharma distributor. Singh has targeted a turnover of $750 million by 2005 and wants to turn Shreya into "a fully integrated pharma and bio-tech organisation."

Two years ago, Singh pulled off quite a coup by acquiring Rallis India's pharma division from the Tatas, paying Rs 49 crore, financed equally through internal accruals and a loan from IDBI. The acquisition has finally given the group a manufacturing base in Aurangabad, India and in Harare, Zimbabwe. Singh's second acquisition, the Rs 85 crore buy-out of the domestic prescription drug division of the Indore based Plethico Pharma earlier this year, has more than doubled Shreya's field force.

This year, the Mumbai headquartered Shreya Life Sciences expects to generate a Rs 300 crore turnover, of which Rs 180 crore will be domestic, and the rest through exports to the parent company in Russia. Coming up next is a Rs 60 crore greenfield project in Pune's Biotech Park, in league with SciGen Inc of the USA, which will make the hepatitis B vaccine and human insulin.

Courtesy: The Economic Times, September 30, 2003

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New Delhi: The latest CII-ASCON survey says that the manufacturing recorded a sustained growth between April and September. Out of 134 sectors, nine-recorded growth of more than 20%, 42 registered growth between 10-20%, 55 sectors registered growth between 0-10% and 28 registered negative growth. Out of 11 services sectors, five registered excellent growth, five high growth and only one recorded a negative growth. The trend indicates a revival in the services sector.

The survey reveals that M&HCV's, LCVs, cars, utility vehicles, cellular services, housing finance and software are high-fliers. Some other sectors to have recorded digit-growth are audio products, AC, PC, sanitary ware, construction and personal healthcare. Scooters, mopeds, vanaspati, B&W TV and groundnut oil continue to paint pessimistic picture. Sales in the domestic market remains buoyant with 27 sectors showing double-digit growth. Fluid power components, sponge iron, cars, LCVs, M&HCVs emerged top performers in terms of sales. Some of the sectors witnessing negative sales include caustic soda, crude oil, oil and gas equipment, textile machinery, electrical cables and wires.

Courtesy: The Economic Times, September 29, 2003

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Prithvi Raj Singh Oberoi, chairman of East India Hotels, is having a change of heart. After signing up with Hilton International for his Trident properties and the Oberoi Towers and rebranding the Oberoi hotels, he is now reconsidering his earlier decision of entering into a strategic alliance with a global hospitality chain for his superfine hotels.

Since he reckons that the Oberoi brand is strong enough, he is keen on management contracts internationally. That is why he has tied up with the Al Futtaim family's Palms Development in Dubai for a 140-room hotel at a cost of $32 million and Abdul Rauf in the Maldives where he is developing a 70-room beach resort over water at a cost of $24 million (including land lease). For the Tridents, the alliance with Hilton will enable him to divert traffic, but for the Oberois, he is keen to strengthen his sales and marketing operations in Europe and the United States. He said: "By all accounts India could be a favoured destination this winter and the industry is waiting with bated breath. After rebranding the super deluxe Vilas resorts - The Oberoi, he is now concentrating on their positioning.

Courtesy: Hindustan Times, September 29, 2003

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New Delhi: The good times, it seems, will roll right through to 2007 for the automotive industry. While the current level of demand will hold up, India's sourcing stature will mature and exports should also pick up. Those are the findings of the ICRA report which forecasts an 8% compounded annual growth rate (CAGR) for passenger cars from 2004-2007. Currently, total passenger vehicles growth is just over 25% in the April-August period while cars alone are up 26.3% according to SIAM stats.

However, the ICRA report predicts the growth rate to vary across segments. While the A-segment or the "mini" is expected to sustain volumes, it would lose market share in the medium term to the B-segment or the compact and the C-segment or the mid-range sedan. Following a similar trend, the Indian market is moving towards higher capacity engines as well, the report said. In two-wheelers, the ICRA report predicts a CAGR of 9% from FY2004 through to 2007 with motorcycles clocking higher CAGR of 11.5%.

Courtesy: The Economic Times, September 29, 2003

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Joy! But it also means there's a lot more to be done

Thanks to the munificence of the rain gods, we can expect a substantive growth in agriculture, which in turn would provide hundreds of millions of farmers with better incomes even if some of the money goes into paying the debts of the drought period. The expected economic growth of more than 6 per cent this year may not quite touch the 8 per cent the government had once projected, but it is clear that the economy is set to grow at a significant pace and this is something that is being recognised internationally as well. Success, they say, is at times more challenging to manage than failure. What we need to watch for while pressing for an even higher growth rate, therefore, is the possible negative impact of this growth. It is almost impossible for economic growth to take place in a uniform manner affecting every Indian equally. Even if that was so, the fact the starting point is different for different people would itself breed uneven growth. The challenges of rising inequities and disparities, therefore, must be paid the highest attention especially since they often go unnoticed or get buried under political and bureaucratic rhetoric.

The larger picture of sub-regional growth rates must also invite attention. We often tend to forget that an overall 7 per cent national economic growth rate may actually imply that the southern states were growing at around 8-9 per cent while the northern states, especially Bihar and UP, at less than four per cent. The implications of such disparate growth rate over the longer term can be well imagined, especially since investment into growth areas may be expected to follow geographically growing areas.

Courtesy: The Indian Express, September 29, 2003

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New Delhi: There is no LoC when it comes to business. Dabur, is setting up a manufacturing base in Karachi. Dabur feels since it is known as a herbal specialist, its products will generate special interest in Pakistan. Besides the neighbouring country, Dabur is pushing its products in other countries through operations and acquisitions. For instance, it is in talks with an Egyptian company to buy out its hair oil brand for the local market, which will be later leveraged for forays into other countries.

When Dabur bought over its franchisee Redrock (now Dabur International) in the UAE for $5m last month, Weikfield International UAE migrated to the Dabur fold as Redrock owned majority stake in it. Weikfield UAE is engaged in the manufacture and sale of cosmetics and food products like jams and custards catering only to the UAE market. The company is now managed by Dabur International. As of now exports contribute about 2.5% to Dabur's FMCG turnover of Rs 1,049 crore. The idea is to make the export basket contribute 12%.

Courtesy: The Economic Times, September 29, 2003

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Pune: Bajaj Auto Ltd. (BAL), which has done well in the exports market in the past few quarters, is now conducting a study of the all-terrain vehicle market in the US. BAL is looking to power these vehicles with engines in the 250-650 cc range.

"All terrain vehicles are utility purpose and there is a big market for these in the US, "Mr. Rajiv Bajaj, joint managing director (JMD), BAL, said. Two years ago, Mr. Bajaj had announced this as the company's medium-term focus" at its annual general meeting (AGM). Under this programme, the company would develop engines for different applications. The move was described as not a product diversification but one which would help BAL extend its capabilities.

Courtesy: The Economic Times, September 29, 2003

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Mumbai, September 27: India's foreign exchange reserves continue to be on the upswing following fresh inflows of $700 million to cross the $ 88 billion mark for the week ended September 19. The week's inflows of $ 700 million has taken the country's foreign exchange reserves to $88.56 billion, according to Reserve Bank of India's latest weekly statistical supplement. The foreign exchange reserves have grown by over $13 billion since April this year. The foreign currency assets also grew by $700 million to $84.83 billion in view of the appreciation of euro, sterling and the yen held in reserves, the RBI said. A further $10 million was contributed towards the reserve tranche position with the IMF. Gold reserves and special drawing rights were static at $3,720 million and $4 million.

Courtesy: The Hindu, September 28, 2003

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New Delhi: The Indian automobile industry is moving in top gear. Independent surveys, released almost simultaneously, point out that the country is fast emerging as the most-preferred sourcing base for global auto majors. That's not all. US auto executives have picked India over China as the most popular business process outsourcing (BPO) destination. According to rating agency ICRA, the passenger car and motorcycle segments are set to grow by 8-9 per cent in the next four years to fuel growth in the auto sector in India and turn the country into a sourcing base for global majors. "The Indian automotive industry is likely to maintain the growth momentum picked up in 2002-03. The country is likely to increasingly serve as the sourcing base for global automotive companies. Exports are likely to gain increasing importance," the report said.

This, interestingly comes close on the heels of car majors like Suzuki, Hyundai and even Fiat, making India their small car manufacturing and R&D hub for their global operations. Two of the made-in-India small cars - Maruti Alto and Hyundai Santro Xing - are already hot favourites among European buyers and even found display at the recently held Frankfurt Motor Show. Meanwhile, ICRA pointed out that though the overall car segment in India was poised to grow at a compounded growth rate (CAGR) of 8 per cent during 2004-2007, the growth might vary across segments.

Courtesy: The Times of India, September 28, 2003

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A third of the revenues of the Rs. 27,000 cr AV Birla group comes from overseas operations, making it the largest Indian MNC. The carbon black unit acquired in China has been rechristened Liaoning Birla Carbon Co and Birla has put a new management team in place there. The unit headed by T.K. Chatterjee, previously joint president, marketing, Thai Carbon Black, is a vital part of Birla's carbon black strategy. Concurrently, a new acrylic fibre project is being set up in Egypt as part of the Alexandria Carbon Black operation. So even as India's third largest corporation, the Rs 27,000 crore AVB Group, bolsters its businesses at home through the recent acquisition of L&T Cement, a third of its revenues come from overseas operations.

By acquiring Mount Gordon, Kumar Birla has strengthened Hindalco's earlier acquisition of Nifty Copper Mine in January 2003. Birla told the Hindustan Times, "Mount Gordon gives access to copper in concentrate for our smelting operation. This will help Hindalco successfully weather the immediate tight concentrate availability period." Coming as it does after the acquisition of Nifty, Mt Gordon offers a growth platform in copper mining and in his operations around Australia. The next level of competency is the Nifty sulphide expansion project where the feasibility study is at an advance stage. These are all tentpoles in AV Birla group's larger global grid. The group is actually India's largest transnational with operations in 18 countries. It has manufacturing bases in Indonesia, Thailand, Malaysia, Philippines, Egypt, China, Canada and Australia.

Birla's non-ferrous metals business which comprises aluminium, copper, gold and silver has recorded last year a turnover of Rs 6,341 crore, net profit of Rs 698 crore, a net worth in excess of $1.35 billion and a balance sheet that crosses over $2 billion." Moreover, the acquisition of Nifty and now Mount Gordon, elevates the group into becoming an integrated copper producer. As he said, "Ownership in upstream mines is a strategic imperative for our copper smelter. We will scale it up further to a global size in the foreseeable future." Carbon black (used in the tyre industry) is another thrust area, contributing a sizeable Rs 1,000 crore to the group's kitty. While it is the fifth largest producer of carbon black, its global market share is just 6 per cent. Birla said, "To differentiate our group in today's super competitive world, the quality of our carbon black, price and logistics, are simply not enough."

Courtesy: Hindustan Times, September 28, 2003

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The financial advisor to the Prime Minister, Dr S Narayanan, on Friday expressed the hope that the country would record 6.5 per cent economic growth during the current financial year. Dr Narayanan said that in 1991 after India adopted the path of economic liberalisation, the country has become the most preferred and attractive destination for foreign investors. "Our GDP growth has been good. Till last year, it was steady at 4.5 to 6 per cent. Though our economic fundamentals are excellent, we need to further increase GDP growth to 10 per cent to aim at making India a developed country by 2020."

Talking of how India is placed economically with regards to its overall strategy and policy, Dr Narayanan said," The macro-level fundamentals of our economy are more sound than they have been for several years. Moves like privatisation of the power sector and lowering of NPA norms of banks has been beneficial to the economy. What we need to be actively concerned about is the dent in export growth due to the appreciating rupee though the Forex reserves are strong at about $ 88.5 billion." On the manufacturing front, while the steel, auto and pharma sectors are doing reasonably well, we cannot afford to forget that the growth in these sectors too appears to have been driven mainly by growth in the agriculture sector. Today, FDI is not just about getting foreign money, but has become a clear statement of the health of the economy. "The agriculture sector needs to be fully exploited.

Courtesy: The Pioneer, September 27, 2003

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Mumbai: Export of plastics has touched $1 billion mark during 2002-03 from just about $ 0.5 billion in 1998-99 even as plastics has become India's second largest export item. There has been an exponential growth in plastics exports to China in the last few years with exports expanding to $ 262 million from $ 7.7 million, Union Minister of State for Commerce and Industry, S B Mookherjee said. Plastics has become India's second largest export item with the country's global share in the commodity rising to 1.51 per cent in 2002 from 0.49 per cent in 2000, he said while addressing the Plastic Export Promotion Council's export award distribution.

Courtesy: The Pioneer. September 27, 2003

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From London to New Jersey, Brazil to South Africa, the news of Ranbaxy's achievement flashed instantly across its subsidiaries. Messages flew from one corner of the globe to another, congratulating the company for the recognition of its achievement - becoming India's first real multinational. What recognition? The Economic Times Award for Company of the Year. Coming from India's leading business daily, the Award is an invaluable recognition for Ranbaxy. This will stimulate further in driving Ranbaxy to even greater heights."

As against its target of becoming a $1bn company by '04, Ranbaxy's consolidated total sales stood at $473m (Rs 2,245 crore) as on June 30, '03. Net profit registered a 42% jump in the first half of '03 to Rs 380 crore. Analysts predict that if the trend continues, the company may well be able to reach its $1bn target by the end of this year itself. The vision of Dr Pravinder Singh, combined with the excellent execution under Mr DS Brar have made Ranbaxy a world-class Indian multinational. For Ranbaxy chairman, Tejinder Khanna, the ET Award raises the bar for the company. "It is now a greater challenge for every Ranbaxian to maintain that very high level of commitment and value addition to the company which have made Ranbaxy the ET Company of the Year.

Courtesy: The Economic Times, September 26, 2003

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ISPAT Industries Ltd. has achieved exports of Rs 799 crore in 2002-2003 compared to the previous year's export of Rs 201 crore registering a growth of 298% and major exports during the year were to USA, Europe, China and Middle East. IIL managing director V.K. Mittal said with the gradual ramp up of production, the focus would remain targeted on maximization of exports and markets in Europe, Bangladesh, Nepal, South East Asian countries and Korea were being intensively scanned for this purpose.

Courtesy: The Pioneer, September 25, 2003

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Mumbai: The Aditya Birla group on Tuesday announced the acquisition of Mount Gordon Copper mine in Queensland, its second overseas mine buyout in recent months, for a consideration of A$21m (Rs 63 crore). thus consolidating its presence in the Australian copper mining industry. The group, which entered the copper mining business by taking over Nifty Copper Mines in Australia six months ago, has carried out its second acquisition in keeping with its strategy of sourcing 25-40% of its copper concentrate requirements from captive mines.

"The acquisition of Mount Gordon is a strategic step in our move to become a globally competitive integrated copper player," said Kumar Mangalam Birla, chairman, Aditya Birla group. The acquisition, which is subject to approval by the Reserve Bank of India, has been carried out through Birla Minerals, a wholly-owned subsidiary of group firm Hindalco Industries, which is India's largest producer of aluminium. The Mount Gordon mine, which was owned by Western Metals, had gone under receivership since July '03. The Nifty mines, which the Birlas acquired from Straits Resources in January '03, has an annual production capacity of around 25,000 tonnes.

Besides, the Aditya Birla group is planning to pump in $10m (Rs 30 crore) to convert the cathode unit into a concentrator plant. The acquisition comes at a time when the group is in the midst of expansion activities at the Nifty Copper Mines. The company has completed the drilling programme and is on the verge of concluding a feasibility study. Meanwhile, Hindalco is planning to increase the copper smelter capacity from 150,000 tonnes to a global size of 250,000 tonnes by the end of the current financial year. The acquisition of copper mines will expand the raw material base to a large extent.

Courtesy: The Economic Times, September 24, 2003

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Dubai: New economic initiatives by the Vajpayee Government has brought about a turnaround in the economy, paving the way for higher growth in the coming years but containing high fiscal deficit would continue to be the main challenge, RBI Governor Y V Reddy has said. He listed the new initiatives as passage of Fiscal Responsibility and Budget Management Act and structural reforms which would be aided by the recovery in agriculture. The overall policy environment has fostered macro-economic stability, he said, adding this has generated optimism regarding the medium term.

"The growth rate of Indian economy at 4.3 per cent in 2002-03, though lower than expected, was one of the highest in the world," he said, adding this indicated the growing resilience acquired by the Indian economy over the years. Against the backdrop of several adverse developments including severe drought, uncertain global environment and considerable hardening of oil prices, the Indian economy performed reasonably well during 2002-03, he said.

Courtesy: The Economic Times, September 24, 2003

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Bharat Petroleum Corp Ltd and Reliance Industries Ltd along with Hindustan Petroleum Corp Ltd and Castrol India, have found a place among the top ten Asian oil companies in the governance poll of Asia money. India lead the tally with four companies followed by China with three companies. However, the fist two places in the list are bagged by the Chinese companies.

Two companies from Thailand and one from Korea completed the list of ten companies in the latest issue of Asiamoney. While BPCL led the Indian tally with its third rank in the list, RIL was the immediate second with the fourth position and HPCL and Castrol India were in the eighth and tenth places, respectively. BPCL scored 78 points, RIL 72 marks, HPCL 49 and Castrol India 43. "Corporate governance is the popular business mantra. But not all corporates practice what they preach, reveals our poll," the magazine said.

Courtesy: The Pioneer, September 23, 2003

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Indian automobile industry, which has witnessed major growth in the past decade, has much to be optimistic about in the coming years too. A boom is expected in the passenger car as well as the motorcycles and multi-utility vehicles segments. However, the scooter industry will continue to remain under pressure. A National Council for Applied Economic Research (NCAER) study says the projected demand for passenger cars in 20011-12 will touch 12.27 lakh units from 6.13 lakh in 2002-03, a compounded annual growth rate of 8 per cent. Similarly, multi-utility segment, which hovered around 1.3 lakh units in the last fiscal, may touch 2.82 lakh units annually by 2011-12. Auto finance and aggressive marketing strategies are expected to play a major role in boosting the automobile demand.

In view of this growth potential, NCAER study contends that India has immense potential for emerging as a global automobile giant. "The industry has made pioneering efforts in adopting modern technology and allowing the entry of foreign players. Increasing competition as a result of liberalisation has led to continuous modernisation as well as substantial price keeping pace with the international standards," it observed. The motorcycle segment, which has led the surge in two-wheeler sales, is expected to grow at 14 per cent annually till 2011-12 and cross 106.69 crore units from 32.70 lakh in 2002-03.

Courtesy: Hindustan Times, September 23, 2003

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Mumbai: The AV Birla group announced on Tuesday the acquisition of its second copper mine in Australia. In a statement, the group said it had bought the Mount Gordon copper mine in Queensland through Birla Minerals Pty Ltd, a wholly owned Australian subsidiary of group firm Hindalco Industries Ltd, for A$21 million. The group is exploring more acquisitions, it said.

Courtesy: The Economic Times, September 23, 2003

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The year 2002 saw US-based companies like Wellcare, Aetna, Wellpoint, Coventry, Horizon BCBS, United Healthcare and many other payers moving their claims adjudication and other back-end processes to India. It witnessed US medical transcription companies like Healthscribe, C-Bay, Spryance and Heartland expand their Indian operations. This, along with the opportunities created due to the implementation of the Health Information Portability and Accountability Act.

The medical processes being outsourced to India include insurance claims processing, revenue cycle management, medical billing and coding. The total spending for medical transcription (which involves electronic capturing of patient information and converting it into a useable format) alone in the United States in 2000 was $10.6 billion. Nearly half of the total transcription dollars (46 per cent) are being spent on outsourced transcription market, according to the US-based Medical Transcription Industry Association.

Courtesy: Hindustan Times, September 22, 2003

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New Delhi: Thanks to the sharper increase in steel prices since July and an export growth of 126% in April-August '03-04, all plants of Steel Authority of India (SAIL) have crossed 100% capacity utilisation level to operate at 102% of capacity during first five months of the current fiscal. The public sector steel major is all set to end the first half of the current fiscal with record production and sales figures.

Continuing with the trend after achieving record profits in the last two successive quarters, SAIL achieved a record production of 4.34 million tonnes (mt) of saleable steel, a growth of 8% during the period. Showing an all-round improvement, the company also recorded the highest ever sales of mild steel at 4.1 mt (11% growth) during April-August. SAIL's turnover at Rs 4,765 crore had witnessed a surge of 14% during the first quarter of the current fiscal.

"SAIL's turn around process is built on the solid foundation of an overall improvement in all the areas including techno-economic parameters. The thrust on quality continued with the plants producing 12% more steel through energy efficient continuous cast route in the first five months of the current fiscal," according to a company release. Strengthening operational and efficiency parameters, SAIL succeeded in lowering its cost of production during April-August 03-04 over corresponding period of last year.

Courtesy: The Economic Times, September 22, 2003

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New Delhi: Seattle-based aircraft maker Boeing is touching down in India with a software arm. The firm is planning to set up a subsidiary to handle IT-related services and offer software support for its aerospace-related activities across the globe. The Indian arm, sources said, will also carry out engineering analysis and design and project management besides R&D activities for aircraft engineering. Boeing has already been working closely with a number of Indian IT firms, including Infosys, in the field of aerospace engineering and technology.

The venture is being viewed by industry watchers as a move to sweeten the bid for Air-India's mega-aircraft acquisition proposal. In the race for the aircraft deal, both Airbus and Boeing have indicated their intention to use India as a manufacturing base for spare parts requirements and IT outsourcing. "India ranks very high on our radar. A senior Boeing official said. Stating that the firm sees opportunities beyond just selling commercial airlines in the country, he said Boeing is in consultation with the Indian government to set up IT systems that can help the army monitor the country's borders.

Courtesy: The Economic Times, September 20, 2003

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India and Bhutan have agreed to work closely to resolve the problem of ULFA and other insurgent groups operating from Bhutanese soil and New Delhi announced an enhanced economic assistance package of Rs 1,614 crore during Bhutan's ninth five-year plan. There was a cordial exchange of views on wide-ranging issues of mutual interest and concern. Both the sides agreed to continue working closely for resolving the issue and the two Governments reiterated that as close friends and allies, they will not allow their territories to be used by anyone for carrying out activities that were harmful to each other's national interests, the statement said.

It was agreed that India will continue to assist Bhutan's economic development programmes, including the harnessing of its water resources. It was also decided that New Delhi will continue to purchase excess power generated by Bhutan's hydropower projects. During the King's visit, a memorandum of understanding was signed by External Affairs Minister Yashwant Sinha and his Bhutanese counterpart Lyonpo Khandu Wangchuk for the preparation of a detailed project report on the Punatsangchu hydroelectric power project.