| |
Economic
Growth Stronger than Expected, says RBI
|
| |
|
The
economy has done better than expected
in FY05 according to the Reserve Bank
of India. However, on the flip side, the
central bank's report has noted that after
two years of sustained current account
surplus, it is slipping into a deficit
in FY05. In its mid-term review in October
2004, the central bank had revised the
GDP growth projections from 6.5%-7% mid-year
to 6-6.5%. However, with the Central Statistical
Organisation (CSO) estimating the GDP
growth for the last fiscal to be at 6.9%,
the RBI has now noted that the macroeconomic
performance in FY05 turned out to be stronger
than anticipated. Analysing the industrial
performance, the RBI report states that
a noteworthy feature of financial year
'04-05 was the significant improvement
in domestic demand that provided a boost
to manufacturing companies. The upturn
in the growth of value-added industry,
which occurred in the fourth quarter of
FY04, was sustained through the third
quarter of '04-05. This was strongly correlated
with the index of industrial production
(IIP). The flow of credit to industry
from bank and non-bank sources surged
during '04-05, reflecting a broad-based
strengthening of the industrial recovery.
Among non-bank sources of funds, resources
raised by way of external commercial borrowings
(ECBs) and equity issues posted a sharp
increase.
Courtesy:
The Economic Times, April 28, 2005
Back
to Index
|
| |
Indians
Recasting BPO as Remote Global Working:
PwC
|
| |
|
With
outsourcing increasingly shifting to core
and higher-end jobs from low-end activities,
Indian knowledge workforce will be the
key factor in changing the definition
of business process outsourcing (BPO)
to "remote global working" (RGW), according
to a leading management consulting firm.
"The definition of BPO is changing as
its scope is broadening. A new concept
of RGW is emerging as the BPO is seriously
shifting to core and high-end jobs," consulting
firm PricewaterhouseCoopers partner Joydeep
Datta Gupta said today. He said remote
global working concept is carrying out
functions like research, financial accounting,
specialised projects, news editing and
other financial functions without being
present at the market of work place.
Courtesy:
The Economic Times, April 26, 2005
Back
to Index
|
| |
|
|
| |
|
After
software, financial services, clinical
research, outsourcing IPR could soon emerge
as the new KPO (knowledge process outsourcing),
in which India can become a global player.
With more than 100 multinationals setting
up their research and development (R&D)
laboratories, India has turned into one
of the global hubs for research. Corporates
and research institutes planning frontline
research need proper IPR (Intellectual
Property Rights) expertise to pick the
correct area, avoid duplication and invest
their time, human resources and money
to gain competitive advantage. In view
of the tremendous growth in knowledge
and proliferation of patents, the task
has become tough. Hence, the space for
specialised entities that can provide
this key input is starting to grow. The
new patent regime and the growing competition
from multinationals have also brought
patents into the limelight among Indian
companies. One of the early entrants into
this potential, money-spinner is the Hyderabad-based
SciTech Patent Art Services (SPA), which
provides the end-to-end IP management
services to help clients optimise their
returns on R&D investments. More than
half a dozen companies in India have also
set up facilities to provide IPR-related
services from search, to document writing,
global filing, legal advise on infringements
etc. These include IP Matrix, Patent Matrix,
E Value Serve, Intelvet, which are trying
to make a mark in this niche market. In
the first two years of operation itself,
SPA has bagged a contract from a Fortune
50 company to provide patent analysis
services. It has created a dedicated staff
of 40-50 professionals to meet the demands,
said Ms Uma Parameswaran, Chief Executive
Officer (CEO).
Courtesy:
www.thehindubusinessline.com, April 26,
2005
Back
to Index
|
| |
India
Inc Shines Among Global Gloom: McKinsey
|
| |
|
Indian
executives are the most confident about
the short-term economic prospects of their
respective countries and industries, at
a time when globally business managers
are losing confidence, reveals a McKinsey
global survey. The consultancy's global
confidence index has fallen by 11 per
cent since January 2004, according to
a poll carried out among more than 9,300
businesspeople from 130 countries. A recent
World bank too had concluded that global
recovery had peaked. While this is most
evident among executives in the Asia-Pacific's
developed nations like Japan and South
Korea, over 80 per cent of Indian businesspeople
polled said their country's economy was
better than what it was six months ago.
The same proportions also believed that
conditions would improve six months forward
and 74 per cent saw better prospects for
their own industry. In general, executives
from developing economies were the most
upbeat about their countries and industry's
prospects. Globally, over 65 per cent
of IT and telecom executives polled said
they expected substantially or moderately
better prospects in the next six months
for their industries. In India, consumer
products, IT and telecommunications were
seen as the industries with the highest
growth potential in the next five years,
the report said. While Indian business
leaders were more focussed on growth in
the domestic market, the US was still
seen as the most important external market.
While 43 per cent of global respondents
said the workforce in their company was
likely to remain stable over the next
half year, 37 per cent expect to hire
workers. In comparison, over 66 per cent
of Indian managers polled said they had
plans to hire more employees.
Courtesy:
The Indian Express, April 25, 2005
Back
to Index
|
| |
Vivek
Paul on Barron's 30 Top Flight Corporate
Leaders List
|
| |
|
Barron's,
the Dow Jones business and financial weekly,
has named Vivek Paul, vice chairman, Wipro,
as one of the 30 of The World's Most Respected
CEOs. In the list, Barron's has identified
30 top-flight corporate leaders from across
the world. Barron's noted, "The 30 CEOs
on our list have one thing in common:
They make a big difference to shareholders."
In the honouree list for 2005, Paul joins
the elite company of global business leaders
like Steven Reinemund, CEO, PepsiCo and
Terry Semel, CEO Yahoo!. Barron's acknowledged
Paul's contribution in transforming Wipro
Technologies from a $150 million soft-ware
developer into a $1 billion force in offshore
outsourcing, handling IT and customer
service for companies. It says that because
of Vivek Paul, Wipro could pose the greatest
long term threat to the world's IT providers.
Earlier, Vivek Paul was selected as one
of TIME/CNN 25 Global Business Influentials
for 2004 and rated by Businessweek as
one of the Best Managers globally for
2003.
Courtesy:
The Economic Times, April 25, 2005
Back
to Index
|
| |
Gems
& Jewellery Exports up 29%
|
| |
|
In
line with the country's total export growth
figures, gem and jewellery exports during
2004-05 increased 29.27 per cent to $15.67
billion. The figure stood at $12.12 billion
in the previous fiscal. "The export figure
for the sector has surpassed the $13.3
billion target set by the Commerce Ministry.
Keeping in view the achievement, the target
for this fiscal as well as 2006-07 has
been revised upwards to $18 billion and
$20 billion," Gem and Jewellery Export
Promotion Council chairman Bakul R Mehta
said. Exports of cut and polished diamonds,
which contribute about 72 per cent of
the total exports in this sector, rose
29.60 per cent to $11.18 billion compared
to $8.62 billion in 2003-04. Gold jewellery
exports jumped by an impressive 42.23
per cent to $3.81 billion while exports
of coloured gemstones increased 8.1 per
cent to $192 million. In rupee terms,
total exports stood at Rs 70,240 crore
in 2004-05, up 26.44 per cent from Rs
55,554 crore a year ago. Total imports
of gems and jewellery grew 23.65 per cent
to 11.56 billion dollars over 9.3 billion
dollars a year ago. Imports of rough diamonds
grew 6.3 per cent to $7.59 billion in
2004-05 while imports of cut and polished
diamonds jumped a huge 137.8 per cent
to $2.82 billion. The sector employs 13
lakh people at present, Mehta said, adding
it has the potential to create three lakh
additional jobs every year. The GJEPC
is also setting up a Bharat Diamond Bourse
in Mumbai which would be ready by 2006-07,
as part of efforts to make India the world's
diamond hub, he added.
Courtesy:
The Economic Times, April 21, 2005
Back
to Index
|
| |
India
Expects 3 mn Tourists in 2005
|
| |
|
After
a record arrival of foreign tourists in
2004, India is poised to take a quantum
leap by crossing the magic figure of three
million this year to register a 24 per
cent growth, according to Gaur Kanjilal,
Regional Director of Tourism Department.
Foreign exchange earnings have shown a
positive growth till November last year
and the revenue earnings was to the tune
of Rs. 9562 crores, he said. With increasing
liberalisation in civil aviation sector,
there has been improvement in movement
of tourists from various traffic-generating
markets. More and more airlines are now
getting rights to operate in India, he
added. Five international carriers have
added India to their schedule, existing
carriers have been allowed additional
services, charter policy has been liberalised
and low cost airlines are available, Gaur
pointed out. Airports are being upgraded,
modernisation plans have been prepared
and action initiated. Delhi airport looks
much improved and Mumbai airport is getting
a facelift. Private operators are also
offering helicopter services, he said.
"There is a genuine eagerness to improve
Air transport facilities. Once these areas
are improved, corporate traffic will increase.
They need fast movement facilities, Gaur
said. India has already made a mark as
a MICE (meetings, incentives, convention,
exhibitions) destination with enchanting
pre/post tours and conference facilities
existing in not only metropolitan cities
but other places also, Gaur said.
Courtesy:
www.financialexpress.com, April 21, 2005
Back
to Index
|
| |
TCS
is First Indian IT Firm to Cross $2bn
Mark
|
| |
|
They
have done it in two years. With the announcement
of its annual results for FY 04-05, Tata
Consultancy Services achieved that special
status of becoming the only Indian IT
company to have crossed $2-billion mark
in total revenues. The IT major has posted
total revenues of $2.24 billion (Rs 9,727
crores), up 36.57 per cent year-on-year
in 2004-05 with a net profit of $0.51
billion (Rs 2,256 crores) up 37.81 per
cent year-on-year. The company has gained
significant shares in the domestic markets
as 11.73 per cent (Rs 1,141 crores) of
its total revenues were reported from
Indian markets. There has been a slight
drop in the company's business in the
US while it expanded in the European territories.
In FY 04-05, the business break-up for
the company in geographical terms stood
at 59.52 per cent from US, 23.17 per cent
from Europe, 11.73 per cent from India
and 5.58 per cent from the rest of the
world. The company signed up 256 new clients
in FY 04-05. The company added 25 customers
each customer worth $20 million and five
customers worth $50 million each. At present,
the company has 621 active clients, with
4.86 per cent of the total revenues flowing
from the new clients in FY 04-05. The
company has reported a rich cash base
of Rs 685 crores with Rs 266 crores in
liquid.
Courtesy:
The Asian Age, April 21, 2005
Back
to Index
|
| |
India
Outwears China on Textile Turf
|
| |
|
India
has started outperforming China on the
US textile turf in certain segments post
unlocking of quota restrictions. An ET
comparative analysis reveals how in a
number of critical textile products India
out-performed its Chinese rivals. China's
loss in knit fabric, printed fabric, twill
fabric, woollen baby garment, suit cloth,
and man-made sweaters has been to India's
advantage. For instance, while Indian
exports of knitted fabric- one of the
US' main import items used for making
branded T-shirts, track suits and other
knitwear- has more than tripled in just
three months of quota dismantling, Chinese
knitted fabric exports to the US declined
by 17% in the same period. In Jan-Mar
2005, India exported 7.928 million sq.m.
of knitted fabric compared to 2.366 million
sq.m. in the corresponding period in last
year. China's knitted fabric exports to
the US, declined from 36.949 million sq.m.
to 30.485 million sq.m. during the quarter.
Courtesy:
The Economic Times, April 19, 2005
Back
to Index
|
| |
India
Second Largest Apparel Exporter to US?
|
| |
|
The
way things are going it is only a matter
of time before India overtakes Mexico
as the second largest exporter of textiles
and apparel to the US. Judging by the
rates of growth before and after quota
abolition (see table), as many as six
of the top 10 countries may be out of
the running a few years down the line.
The data speak for themselves, but they
are best viewed in conjunction with the
fact that Americans spent as much as $255
billion on clothing in 2002 (the latest
year for which figures are available),
while imports of textiles, clothing -
everything put together - stood at a mere
$77 billion. To put it differently, domestic
producers in the US (including big names
such as Lee), which have already begun
closing shop or crying out loudly in alarm,
were able to reserve much more than 70
per cent of this huge market for themselves.
Thanks to the quotas, and the fact that
the influence wielded by a handful of
producers was able to triumph over the
interests of millions of consumers.
Courtesy:
www.thehindubusinessline.com, April 19,
2005
Back
to Index
|
| |
India
to be Major Sourcing Hub
|
| |
|
The
global auto component industry is likely
to touch $1.9 trillion by 2015, of which
around 40% ($700 billion) would be sourced
from low-cost countries (LCCs) like India,
according to the Associated Chambers of
Commerce and Industry of India (Assocham).
Currently, sourcing from LCCs is at $65
billion. India accounts for 0.4% while
China accounts for 1.2% and Mexico accounts
for 5.9% of the total auto component trade
of $185 billion. According to Assocham,
India is increasingly becoming a sourcing
base both for international auto majors
for exporting completely built units (CBUs)
as well as for outsourcing components.
However, China is aspiring to grow its
automobile and component export at 50-55%
per annum to reach $70-100 billion by
2010. Companies like Hyundai, Ford, Skoda,
Suzuki and Mahindra have made India a
manufacturing hub for specific models
of cars. Other big auto giants like Toyota,
GM, and Daimler Chrysler are also making
India a hub for components. Mitsubishi
and Yamaha have made India a hub for 125
cc motorcycles. The growth in the Indian
auto ancillary sector would be in the
range of 15-16% by the end of fiscal 2004-05
as compared to the growth of 22-24% in
2003-04. "The growth of auto component
exports from India has accelerated due
to availability of skilled low cost labour,"
an Assocham release said. Exports of auto
components from India are expected to
increase by 30-35%, while replacement
demand is likely to remain steady at 7-8%
in 2004-05. Exports today account for
15% of the total output in India. The
domestic market, that includes domestic
light passenger vehicles, commercial vehicles
and two-wheelers, is expected to grow
at a rate of 10% per annum over the next
decade.
Courtesy:
www.financialexpress.com, April 19, 2005
Back
to Index
|
| |
Manufacturing
grows 8.9% in FY05, Fastest in Eight Years
|
| |
|
Fiscal
'05 marked the fourth successive year
of accelerated manufacturing growth. In
'04-05, manufacturing is believed to have
grown at the fastest rate in the past
8 years at 8.9%. The only year in the
recent past in which the growth rate was
higher than this was 9.7% in 1996-97.
From a low year-on-year growth rate of
1.5% in 1997-98, 2.7% in 1998-99 and 4%
in '1999-00, manufacturing growth rose
to 7.4% in '00-01. Again, after witnessing
a slow growth of 3.6% in '01-02, growth
has been above 6% annually. The high rate
seen in '05 is in sync with the high manufacturing
growth rates witnessed in '03 and '04.
In terms of gross value added, the manufacturing
GDP is estimated to be Rs 2,65,119 crore
in '05, up from Rs 1,79,689 crore in 1998
and Rs 2,13,681 crore in '02. In '04-05,
the share of manufacturing is also believed
to have increased to 17.33% of GDP from
17% in '03-04 and its contribution to
GDP growth is likely to have grown to
21% from 14% over the same period. The
share of industry has marginally risen
to 27% from 26.9% in '04. The rise was
entirely fuelled by the growth in manufacturing,
as it was the fastest moving segment among
the other segments in industry. Electricity,
water supply and gas, mining and quarrying
and construction recorded lower growth
rates and hence, their respective shares
in GDP has fallen. In fiscal '05, the
shares of mining, electricity and construction
have fallen to 2.29%, 2.28% and 5.17%
respectively from 2.32%, 2.29% and 5.23%
in '04.
Courtesy:
The Economic Times, April 19, 2005
Back
to Index
|
| |
Basmati
Exports Touch a New High
|
| |
|
Basmati
export is poised to cross the one million-tonne-mark
for the first time, with exports in value
terms slated to touch Rs 2,000 crore in
FY05. "We expect to cross the one million
mark for '04-05," KS Money, chairman,
Agricultural and Processed Food Products
Export Development Authority (Apeda),
said. The basmati export till January
this year touched nearly eight lakh tonne
as against nine lakh tonne during '03-04.
One of the distinguishing features of
basmati export has been its enhanced demand
from the US buyers. The emergence of US
as a leading importing country is an encouraging
happening for the domestic rice exporters,
Mr Money said. According to the estimates
of US Department of Agriculture, "exports
by India are projected to steadily rise
over the next decade as its high internal
prices stimulate production and exportable
supplies." Global rice trade is projected
to average a 2.3% annual growth rate from
'05 through the end of decade, according
to the projection.
Courtesy:
The Economic Times, April 18, 2005
Back
to Index
|
| |
NRIs
Send Over $23 bn, Beat IT Revenues!
|
| |
|
Indian
workers' remittances to the country from
abroad have soared considerably over the
years to touch $23 billion in 2004, according
to World Bank statistics. According the
latest Global Development Finance report
prepared by the World Bank, India received
$17.4 billion in 2003 from the workers
living and working in other countries.
The latest figures place India much ahead
of China and other developing countries
like Mexico and Brazil. At the exchange
rate that prevailed in 2003, the inward
remittances amounted to about Rs84,000
crore, which was more than double the
amount that government collected as income
tax during the financial year. The actual
remittances may be much higher as flows
through informal channels, such as hawala,
are not captured in the official statistics
but are believed to be quite large, the
report points out.
Courtesy:
www.financialexpress.com, April 18, 2005
Back
to Index
|
| |
India
4th Largest Economy on PPP Terms
|
| |
|
India
has retained its position as the fourth
largest economy in the world on the basis
of Purchasing Power Parity (PPP), behind
the United States, China and Japan. The
size of the economy is calculated according
to what a nation's currency actually buys
in goods and services and not on the basis
of its exchange rate against the US dollar.
The United States has by far the largest
economy in the world worth $10,978 billion,
followed by China at $6,410 billion, Japan
at $3,629 billion and India with $3,062
billion. Germany comes next with $2,279
billion. France, Italy, the UK, Brazil
and Russia are other countries above the
$1,000-billion mark. With a PPP per capita
of $2,880 dollars, India is above the
definition of a low income country (per
capita PPP income of $2,110 or below)
but falls below the required $6,000 PPP
per capita to qualify for being a middle
income country. The developing countries
want quotas or shareholding in the IMF
and World Bank decided on the basis of
Purchasing Power Parity. However, managing
director of the International Monetary
Fund Rodrigo de Rato said on Saturday
that such a decision would be a political
one, suggesting it may not happen.
Courtesy:
The Economic Times, April 17, 2005
Back
to Index
|
| |
IMF
Sees Robust Economic Growth in India
|
| |
|
IMF
on Wednesday projected a "robust" economic
growth for India despite uneven monsoons
and higher global oil prices, but warned
high fiscal deficit of the Centre and
states could impinge structural reforms,
mainly in financial sector. In its semi-annual
world economic outlook, IMF said adequate
steps had not been taken to ease labour
market rigidities, address trade liberalisation
and capital account convertibility since
the Union Budget for 2005-06 proposed
only "modest" structural reforms. During
the year under review, GDP growth in India
has slowed modestly, but is expected to
remain robust, with the impact of uneven
monsoon and higher oil prices being offset
by buoyant industrial activity and strong
investments, the IMF said. However, it
said with the general government deficit
of close to 10 per cent of GDP, "fiscal
consolidation remains a key challenge,
more so given the ambitious social agenda
set out in the new government's cmp, which
could ultimately raise expenditure by
10 per cent of GDP."Beyond the medium-term
risks to macro-stability and the constraints
that the deficit places on pick-up in
investments, it (high consolidated fiscal
deficit) "may also contrain progress on
structural reforms, notably in the financial
sector," it said. Noting that the recent
fiscal responsibility legislation provided
a good medium-term framework, imf said
it needs to be fully implemented as the
proposed deficit reduction in 2005-06
fell below the annual adjustments in the
legislation.
Courtesy:
The Asian Age, April 15, 2005
Back
to Index
|
| |
Finally,
Bharat Outshines India
|
| |
|
For
those who feared that the gusting winds
of economic growth would go past rural
India, here's a sunny statistic. Incomes
in rural India are growing faster than
in urban areas, says the National Council
of Applied Economic Research (NCAER).
While urban incomes are growing at 3.2
per cent per annum, rural incomes are
rising by 4.5 per cent a year. In 1994-95,
three years after the country started
economic reforms, the average rural income
was 55-58 per cent of the average urban
income. By 2001-02, it was up to 63-64
per cent and in 2004-05 estimates are
that the figure would touch 66 per cent,
or roughly twothirds of urban income.
With pockets getting heavier, the middle
class in villages is expanding. "The rural
middle class is growing at 12 per cent,
while in urban areas it is increasing
at 13 per cent,'' says RK Shukla, principal
statistician at NCAER. By middle class,
he means a household earning between Rs
2 to Rs 10 lakh per annum.
Courtesy:
The Times of India, April 15, 2005
Back
to Index
|
| |
India
2nd Largest Asian Investor in UK
|
| |
|
India
is now the 2nd largest source of FDI into
the UK from Asia in terms of projects
and jobs generated and rank among the
UK's top ten Foreign Direct Investment
markets. Over 10,000 Indian-owned businesses,
including 140 Indian multi-national companies
operate in London and employ 49,000 people.
Together these businesses generate a combined
turnover of over $ 14.4 billion, representing
five per cent of London's economy. These
facts are highlighted in a new report
called Indian Communities in London, released
by Think London , the official inward
investment agency for London, a partner
agency of the British Government organisation
- UK Trade & Investment. The highlights
of the report were shared by Mr Michael
Charlton, chief executive officer, Think
London on Tuesday. Speaking on the report,
Mr Charlton said, "India's globalisation
process has been uniquely balanced with
India being the only developing country
among the top ten nations for both attracting
FDI and making investments globally. In
fact, India ranks fourth in the list."
Courtesy:
The Economic Times, April 14, 2005
Back
to Index
|
| |
India
Records Fastest Growth in Car Production
|
| |
|
India
registered the fastest growth among the
top 15 passenger car producing countries
in the world in 2004. As per latest rankings
by the International Organisation of Motor
Vehicle Manufacturers, OICA, India's car
production grew 30 per cent in 2004 while
Brazil was the second with 17 per cent
growth. India is also just a tad away
from being among the top 10 automobile
producing countries in the world. It jumped
two places to the 11th position in 2004.The
86-year-old Paris-based OICA is also the
governing body of international auto shows.
India grabbed Italy's position, whose
ranking slipped to 14th from 11th in 2003.
The country produced a total of 11.78
lakh cars in 2004 while Italy produced
8.33 lakh units, with its growth rate
declining by 19 per cent over 2003. Though
China's growth rate was lower at 15 per
cent, it still managed to hold on to its
seventh position with production of 23.16
lakh cars in 2004. In 2003, it grew by
83 per cent. The top three passenger car
producing nations maintained their rankings.
Japan, ranked first, produced 87.2 lakh
cars posting a growth of 3 per cent. In
2003, its growth declined by 2 per cent.
The number two on the list, Germany, produced
51.92 lakh units, growing by a mere 1
per cent. The US, ranked third, produced
42.29 lakh cars. Its growth declined by
6 per cent compared with a 10 per cent
decline in growth in 2003. Global consultancy
firm AT Kearney's automobile consultant,
Mr Nagi Palle, struck a cautious note
about India's performance. "India is still
a very lean market with 75 per cent of
the cars sold being below $10,000. If
India achieves a per capita GDP of $1,000,
it will trigger off mass motorisation.
For China it is around $1,200," Mr Nagi
Palle said. Though China's growth is slowing
down, its small car market is bigger than
all of India's car market, he said.
Courtesy:
www.thehindubusinessline.com, April 14,
2005
Back
to Index
|
| |
IOC
Plans to Develop Gas Field in Iran
|
| |
|
Indian
Oil Corporation Ltd (IOC) and Petropars,
Iran, have submitted a joint proposal
to the National Iranian Oil Company (NIOC)
for developing an upstream block in South
Pars gas field and setting up of LNG (liquefied
natural gas) liquefaction facilities with
9 million metric tonnes (MMT) per annum
capacity in Iran. The joint proposal seeks
in-principal approval for the two from
NIOC to award the projects to them on
nomination basis. In November last year
IOC had inked a MoU with Petropars for
the purpose as well as having marketing
rights for IOC for 9 MMT of LNG. The MoU
was executed in pursuance of the discussions
held between the Oil Minister of India
and Iran at Vienna on September 16, 2004.
The two had agreed to submit a joint proposal
to NIOC by the end of February 2005. When
asked about the investments involved for
the two projects - gas exploration and
LNG - sources said the investment decision
would be taken once necessary agreements
were entered into with NIOC, and approvals
obtained from the competent authority
for such investment by both Indian Oil
and Petropars. As per the agreement, IOC
is expected to have 40 per cent stake
in the exploration block, with Petropars
holding the rest. For the second project,
the LNG facility, IOC plans to have 60
per cent stake and the rest remaining
with Petropars.
Courtesy:
www.thehindubusinessline.com, April 14,
2005
Back
to Index
|
| |
Mittal's
One of World's Largest Steel Firms
|
| |
|
Lakshmi
Mittal's move to create one of the largest
steel companies in the world has received
a shot in the arm with shareholders allowing
the merger of International Steel Group
of the US with Mittal Steel Company. With
this approval by shareholders in the US
and the Netherlands, Mittal - ranked the
third-richest person in the world - will
soon take his operations across four continents,
according to filings with the regulators.
The Ohio-based steel firm was acquired
for about $4.5 billion in a cash-and-stock
deal last summer with a view to double
the Mittal group's steel production from
58 million tonnes in 2004 to 100 million
tonnes over the next few years. Mittal
Steel Company - which will be formed after
the merger of Ispat Industries and LNM
Holdings with headquarters in Rotterdam
- had posted sales of over $22 billion
last year. International Steel Group registered
sales of $9.02 billion. The Mittal family
holds 88 per cent stake in their group
companies. Post merger, steel industry
analysts are speculating that the merged
company could house its US corporate offices
to the Chicago area. International Steel
Group's headquarters are in Cleveland.
The steel tycoon is also looking for acquisitions
in India and China for future expansion,
in addition to the 37.2 per cent stake
he purchased in Hunan Valin Iron and Steel
Group in January for $315 million, company
officials said.
Courtesy:
The Economic Times, April 14, 2005
Back
to Index
|
| |
Coir
Products Export Top Rs 460 cr
|
| |
|
Growing
demand for coir mats and coir pith in
the world market of late has pushed up
the total export earnings of coir and
coir products during 2004-05 to an all-time
high of Rs 460.63 crore, surpassing the
set target of Rs 450 crore. Shipments
of coir mats stood at 56,531 tonnes valued
at Rs 346.85 crore during the last fiscal
as against 49,103 tonnes worth Rs 291.65
crore the previous financial year. Coir
pith, which was once considered a waste
product and the disposal of mounds of
which was a serious problem until recently,
has now found a good market overseas.
Last fiscal, 40,027 tonnes of coir pith
valued at Rs 28.34 crore were exported
against 29,179 tonnes worth Rs 19.76 crore
in 2003-04. In 2004-05, 1,17,495 tonnes
of coir and coir products valued at Rs
460.63 crore were exported as against
1,02,253 tonnes worth Rs 407.50 crore
in 2003-04, registering an increase of
Rs 53.13 crore. In the absence of a suitable
and effective substitute for coir mats,
which have a superb functional advantage
and brushing effect, the demand for it
the world over is on the increase, according
to Coir Board sources. Growing awareness
abroad of late about the coir pith's role
as an excellent alternative for recycling
in the farming system has pushed up its
demand. Incorporating coir pith improves
the structure and physical properties
of soil, a senior Board official told
Business Line. The advantage of coir pith
is that it absorbs water in the range
of 400-600 per cent of its weight and
releases it to soil very slowly, he added.
Besides, application of 10 tonnes of coir
pith per hectare is an effective ameliorative
measure against saline and alkaline reactions
of soil. It is abundantly available as
it forms 70 per cent of the weight of
the coconut husk. The increase in export
of this product has proved that the promotional
activities of it overseas have yielded
positive results, he added. It is now
extensively used in horticultural operations
and for manufacturing manure.
Courtesy:
www.thehindubusinessline.com, April 14,
2005
Back
to Index
|
| |
Essel
Acquires UK's Telcon Packaging
|
| |
|
Packaging
major Essel Propack on Tuesday said it
has acquired UK-based Telcon Packaging.
The acquisition of 100 per cent stake
in Telcon has been made through Lamitube
Technologies, Mauritius, a wholly owned
subsidiary of the Company, Essel Propack
informed the Bombay Stock Exchange. This
strategic move provides the company, a
manufacturer of laminated tubes, with
a local manufacturing base in UK which
in turn will strengthen its position for
winning major contracts in UK and Europe.
Further, this acquisition can be termed
as a major move towards the company's
consolidation in European market, it said.
"The acquisition of Telcon Packaging is
a continuation of our stated strategic
intent for Europe and Americas. We expect
this step to result in further consolidation
of laminated tubes manufacturing in Europe,"
said Ashok Goel, the vice chairman and
managing director, Essel Propack.
Courtesy:
The Economic Times, April 13, 2005
Back
to Index
|
| |
Phone
Connections in India Hit 100 mn
|
| |
|
Phone
connections in India have just crossed
the 100-million mark, signifying that
over nine in 100 Indians have a phone.
Considering that only 2.3 out of 100 had
phones a decade ago, you could say the
talkative Indian is here to stay. Telecom
companies are anticipating the number
will nearly treble in the next two years.
Reforms in the telecom sector kick-started
the cellular revolution in 1996. It took
a few years to catch on. But today, it's
spreading like wildfire - a 2004 global
survey showed India had the highest growth
rate of new subscribers. October 2004
saw the once unthinkable happen - mobile
connections outnumbered landline connections
in the country. The growth rate for landlines
is languishing at about 8% annually, while
cellular connections are growing at over
50% every year. While landlines grew by
3.32 million during 2004-05, cellphones
added 18.59 million subscribers. The tally
at the 100-million mark is expected to
be 54 million mobile phones and 46 million
landlines, going by Trai reports. India
is still way behind China - with the largest
subscriber base of more than 600 million
in all - and other global players such
as the US, Brazil, Japan, Germany and
Russia, but the current growth rates will
almost certainly spell a new order in
the future.
Courtesy:
The Economic Times, April 13, 2005
Back
to Index
|
| |
India
Ahead in Software Outsourcing
|
| |
|
China
is unlikely to create a software outsourcing
firm that can rival the Indian giants
of the industry for some time to come.
This is largely due to limited domestic
demand, piracy and lack of skilled personnel,
the International Finance Corporation,
| |
