• Booming Economy Fuels Brain Gain
• Made and Designed in India
• India Likely to Turn Largest Telecom Market by 2008
• India Offers Financial Aid to Indonesia
• India Shows its Sphere of Influence to the World
• Corporate India Tends to the Need of the Hour
• India, Largest Relief Donar to Sri Lanka
• Small Firms Think Big

• Iran Seeks Help to Build Manufacturing Base
• 'India set for Big Leap in Mussel Production'
• Bhel Bags Top Exporters Award
• Tata Steel Bags SA8000 Certification
• Indian Roses set to Bloom in Russia, Poland
• RIL Bags Oil and Gas Block in Gulf of Oman
• India to be Fastest growing IT Market in Apac
• The Global Indian Pro's Ready to Rule in 2005

India is poised for a big leap in mussel production as it is currently growing at the rate of 20-30 per cent, according to Dr M.J. Modayil, Director, Central Marine Fisheries Research Institute (CMFRI). The country, he said at present produces more than 3,000 tonnes of farmed mussels and oysters every year, which is expected to cross 10,000 tonnes in the next two years. As more and more maritime states adopt bivalve farming, India appears set for a further increase in production, he added. The global aquaculture production of farmed fin fishes and shell fishes had reached an all time high of 39.79 mt worth $53,798 million in 2004. Of this, marine molluscs contribute 11.2 mt (28.1 per cent) in which Asian countries contributed a lion's share (91 per cent). Mr K.K. Appukuttan, Principal Scientist and Head of Molluscan Fisheries Division, CMFRI said ICAR is funding the 21-day Winter School which will be conducted by a group of expert scientists and also include extensive hands-on sessions.

Courtesy: www.thehindubusinessline.com, January 12, 2005

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Having been cornered by the United States and its allies in the developed world, Iran is now courting India Inc to build its manufacturing base. From automobile to steel to cement to refinery & distribution, to fertiliser and petrochemicals, the Iranian government is knocking at the doors of Indian companies asking for technology and technical expertise. In return, Indian firms can expect better deals in the Iranian oil and gas sector. Any doubts about this issue were cleared by the delegation that participated at the recent oil ministers conference in Delhi. India is hoping to increase its interests in Iran's oil and gas business in return for investments and higher participation in Iran's infrastructure and core sectors. The Iranian government, however, seems to be in hurry. It is not banking on the government machinery for a direct assistance and is directly approaching Indian companies seeking their help. For instance, they have approached Automotive Component Manufacturers Association (ACMA) asking for help in modernising the component industry in Iran. "Technological progress in the Iranian automobile industry is in a freeze since they forced out the Shah's. India offers them a cost effective option to companies from Europe and Japan," said a senior official in ACMA. The Iranian delegation is a regular visitor at the Auto Expo - India's premier show on automobile and auto components.

Courtesy: The Economic Times, January 12, 2005

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Engineering major Bharat Heavy Electricals Ltd has bagged the top exporters award of the Engineering Export Promotion Council for 2001-02 and 2002-03. Bhel has won the 'All India Trophy for Top Exporters' in the 'project exports' category for the 14th consecutive year in recognition of its performance at the export front, a Bhel press release said on Monday. The award will be presented by Commerce and Industry Minister Kamal Nath on January 12. The state-run firm exported goods worth Rs 987 crore in 2001-02, which was 14 per cent of its total sales turnover. The company forayed into the Chinese and Kazakhstan markets and secured orders for gas turbine generating equipments. It also bagged orders from Iraq, Sri Lanka, UK and Thailand. During 2002-03, Bhel reported an 82 per cent jump in export orders at Rs 1,455 crore. This included setting up a 600 MW gas-based power plant in Libya, the single largest overseas order recieved by any capital goods manufacturing company in India, it said. Other orders included a coal-based power station in Indonesia, a gas-based plant in Oman and a contract for hydro power equipment from Taiwan.

Courtesy: The Economic Times, January 11, 2005

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After spending all of his childhood in the US, studying in Wharton School with majors in finance and management and working with McKinsey in New York, Rahul Bajaj is the least likely candidate to come back to India. But India-born American Bajaj has not only returned to the country, he has also joined a government-backed telecom regulator in New Delhi to associate himself with "fascinating new opportunities" in India. He is not the only one though. Bajaj is among the many Indian immigrants who are reversing the process of brain drain from one of the world's fastest growing economies, lured by the country's rapid strides in the tech field, relaxed guidelines and increased prosperity. After losing its best and brightest to the West since the early 1960s, the Asian economic major is now seeing the "brain gain" trickle turning into a tide. "But it was difficult for me to ignore the changes in India, especially in the technology field. I was pleasantly surprised and just wanted to associate myself with that," Bajaj said on the sidelines of the Pravasi Bharati Divas here. And Bajaj took the plunge in late 2003 by returning to India along with his wife, leaving behind his parents and an elder brother in the US. He joined the Telecom Regulatory Authority of India (Trai) as consultant (projects).

Courtesy: The Economic Times, January 11, 2005

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Localisation and customisation has played a huge part in the evolution of manufacturing in India. India has an existing advantage in custom-based manufacturing and assembly products like transformers and industrial equipment actuators. This is not just because of India's design and engineering skills, but also because most custom-based products have a higher proportion of non-electronic components. Localisation is another source of competitive advantage. For transformers, critical components like bath oil, electric-grade steel, insulation paper, copper coils and circulation fins are all developed or manufactured locally. In India's 6 million plus colour television market which is dominated by Koreans Samsung and LG, Japanese majors Sony and National, and European major Philips, most components are locally made. PCB chips are imported but locally assembled; picture tubes are locally made as are tuners, enclosures and speakers. Even for a sophisticated product like an x-ray system, the films, monitors, x-ray tubes and tables are locally made. The Indian engineering eco-system has helped homegrown Indian companies make a mark on the global stage. For example, Delhi-based optical disc maker Moser Baer from US $ 22 million to over US $ 335 million in just six years from 1998 to 2004. Moser Baer is now the thirdlargest player in the world in optical disc manufacture with a global share of 11 per cent. It manufactures for 10 out of 12 leading OEMs, and launched its own brand in 2003.

Courtesy: www.ibef.org, January 10, 2005

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India's teledensity is expected to reach 25 per 100 people by 2010 and it will be one of the world's largest telecom markets by 2008. "By 2004, India's teledensity was projected to grow to 7 per 100, but it has surpassed all expectations and grown to 8.2 per 100," said Gururaj 'Desh' Deshpande, chairman of Sycamore Networks, and chairman of the board of Tejas Networks. "During the year 2000, teledensity was around 2% and it has increased to over 8% because of the government's initiatives in this sector," he said. Interestingly, mobile telephones will rule the Indian telecom market in next five years. "In the last 12-18 months, mobile services accounted for over 90% of the telecom subscriber base. This growth is expected to continue for next five years," said Sanjay Nayak, CEO, Tejas Networks. According to Giridhar Boray, country manager of Kodiak Networks, the mobile subscriber base is expected to cross 200 million by 2010, which is now at around 35 million. "In the mobile space, both GSM and CDMA will co-exist. Both these technologies has been adopted by different countries. In the future, we expect that both these technologies will converge," he said. "In the developed countries, landline telephones have shown a decline in growth. It is hardly 2% annually, but in India, due to the low teledensity, landline telephone connections, which is around 40 million currently, is expected to grow at 5%-6% annually for some more years," said Mr Boray.

Courtesy: www.financialexpress.com, January 10, 2005

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India today proposed extending "concessional lines of credit" to Indonesia for the "reconstruction of roads, buildings and harbours" in Aceh province, which was ravaged by the tsunami 12 days ago. Should Indonesia accept this offer, New Delhi's assistance to this country will go beyond the emergency help now being rendered by two naval ships. Indonesia has registered the highest toll of nearly 1,00,000 in the natural disaster and the number of internally displaced persons has been placed at 6,00,000. While over 50 per cent of the capital of Aceh province was badly affected, 80 per cent of Meulaboh town was destroyed. A hospital ship of the Indian Navy is engaged in the relief operations in the town.

Courtesy: The Hindu, January 08, 2005

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Tata Iron and Steel Company has been conferred the prestigious Social Accountability (SA) 8000 Certification by Social Accountability International (SAI), USA. "With this certification, Tata Steel became the only steel company in the world to receive this certificate," a press release by Tisco said. SA 8000 certification is a global verifiable standard for managing the work place in a most effective manner by improving the workplace conditions. Notably, Tisco's Sukinda mines in 2004 became the first mining operation ever to be certified to SA 8000, the release said.

Courtesy: The Economic Times, January 07, 2005

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India's geo-strategic ambition and importance may have been recognized in one epiphanic instant that occurred in front of a map spread out before three American presidents at the Indian Embassy in Washington on Monday. India's ambassador Ronen Sen was explaining to George Bush, Bush Sr and Bill Clinton how the tsunami raced towards India when there was a pause and a raised eyebrow. The Indian island territory of Andaman and Nicobar was closer to Indonesia than India? Indeed, Sen explained, the southern most tip of Nicobar Island called Indira Point was almost 1000 miles from the Indian coast and a mere 60 nautical miles from the epicenter of the earthquake just of the Indonesian coast. In that pivotal instant, New Delhi may have driven home its strategic range, reach and ambition that for most part has escaped major powers and leaders of the world, including a geographically accomplished president like Bill Clinton. As major powers of the world summon their financial and military might to help the victims, New Delhi has put its own imprint on the region in the wake of the tragedy. While some may find talk of geo-strategy repugnant in the face of the disaster, western analysts are following every move by the US and Asian powers in the region. Several commentaries have spoken of which country is outmaneuvering the other. For instance, it has been noted that Japan, with a $ 500 million aid package, has outshone both the United States ($ 350 million), and China, which committed only $ 63 million despite its higher military stakes in the region. India has always been sniffy about Chinese presence in the area. India's aid of $ 23 million rushed to Sri Lanka within hours of the disaster has also been noticed, along with the deployment of what is now being seen as the most potent navy in the Indian Ocean. New Delhi has dispatched three survey ships converted to hospitals-at-sea - one to Nicobar, one to Sri Lanka, and one to Bandar Aceh in Indonesia.

Courtesy: The Times of India, January 06, 2005

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India Inc has once again risen to the occasion. This time to lend a helping hand to the countrymen when a national calamity has struck the nation. After the earthquakes in Latur and Bhuj, Indian corporates have queued up to contribute to Prime Minister's relief fund and run relief centres directly in the affected areas. Bharti Tele-Ventures on Wednesday announced measures for the relief and rehabilitation programme for victims of the tsunami disaster. In order to beef up the communication network in the affected area, Bharti will roll out Airtel Mobile and VSAT network in Andaman & Nicobar before the end of the current fiscal at a total capex of Rs 20 crore. Besides this, the company also announced setting up of communication centres near hospitals, police stations, temporary shelters and other public places along the coastal belt of Tamil Nadu to address the needs of the affected. The company has also donated Rs 1 crore to the Prime Minister's national relief fund. Country's largest commercial bank State Bank of India has donated Rs 10 crore to the fund. Infosys Technologies, Punjab National Bank, ICICI Bank and Shipping Corporation of India have donated Rs 5 crore each to the fund. Industry chamber Ficci has contributed Rs 3.5cr to the fund. Bank of India and Canara Bank and Bajaj Auto have extended Rs 2 crore each to the PM relief fund. Automakers Maruti Udyog and Mahindra and Mahindra will donate Rs 1 crore each. Anil Ambani has also contributed Rs 1 crore to the fund. Some companies like Coke and TCI are helping the victims directly. Coca-Cola, along with Red Cross, is providing drinking water, vehicles for ferrying the injured, clothing and volunteers to help. The firm has pressed 50 vehicles into action. TCI, a transport company, is transporting relief materials to tsunami-struck South East Asia and more particularly the peninsular India and the Andaman & Nicobar Islands free of cost. Samsung has set up relief camp at Pondicherry for distributing food, clothes, utensils and medicines; the firm is sponsoring trucks carrying relief material to Nagapattinam and Cuddalore. Indian Airlines evacuated a record 1,117 passengers from Port Blair on December 29 alone. In view of the fact that demand for evacuation of passengers has gone down considerably, IA plans to operate 3 flights to Port Blair on December 30. Since the day of tragedy on Sunday, IA has operated 26 relief flights to Port Blair and back from Kolkata and Chennai, evacuating 2,910 passengers from Andaman and Nicobar Islands. The airline has also carried relief material in the form of medicines, food packets and drinking water free of cost.

Courtesy: The Times of India, January 06, 2005

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International support is pouring in to the tsunami-battered Sri Lanka, but as in other affected areas across the region, co-ordinating the relief efforts remains a daunting task. "India's contribution of $22 million has by far been the largest so far in cash," Sri Lanka's Foreign Affairs Minister, Lakshman Kadirgamar, said. On the quantum of the total external assistance so far, he said, "any figure will be misleading" at this moment. In addition to the financial support, India has sent its naval ships and several relief teams from spanning the entire spectrum of operations. Conservative estimates place the aid flow at Rs. 500 million. In addition to governmental contributions, massive material aid, individual contributions and off-the-shelf relief is in full swing by international NGOs. Planeloads of assistance have also flown in. "There has been overwhelming generosity and concern, not only by Governments, but by individuals as well," Mr. Kadirgamar said. As Sri Lanka continues to get a massive aid inflow, officials are yet to quantify the inflow. A total of 30,196 persons were killed and 3,846 are missing, according to today's statistics by the Social Welfare Ministry.

Courtesy: The Hindu, January 05, 2005

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The Pune-based Fila Rozil on Tuesday flagged off a consignment of one million rose plants for Russian and Poland markets. Mr Firoz Poonawalla, Managing Director, Fila Rozil, said this was the first time that rose plants were being shipped by his firm. This was only a trial order Fila Rozil had got. The value of the consignment is half a million euro and these would reach the destination within a months' time. The consignment consists of six varieties of Indian roses - red, pink, white, yellow, orange and shaded. About 44 boxes have been packed, of which, 40 per cent were the red rose variety. These plants have been grown in Pune and Bangalore. It had taken the company approximately 11 months to attain international standards, he said. These plants are to be delivered to a Dutch farmer, who will then supply them across the European Union. Mr Firoz, giving a glimpse of how the standards were reached, said the plants had gone through rigorous tests of acclimatisation in soil conditions as these plants had to survive in temperatures close to zero degree Centigrade. The roots of the plant were covered with cocopeat, a by-product of coconut, which has been sourced from the Coconut Development Board, and the plant height had also been maintained to specific standards. The Ethiopian Government has extended 50 hectares of land to the Indian Government to develop it for which the Andhra Pradesh Government has taken a lead. So far, about 500 farmers have reached Ethiopia to teach the rudiments of farming. The foodgrains that were being looked into were lentils, bajra, jowari and corn to name a few, he said.

Courtesy: The Hindu Business Line, January 05, 2005

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Reliance Industries, the country's largest private sector oil firm, has bagged a deep sea oil and gas block in Gulf of Oman and is looking for oil assets in Qatar, Iran and Saudi Arabia. "We have got one deep water block in Oman. The block is believed to hold crude oil and condensate reserves," a top company official said in New Delhi. Oman had put three Gulf of Oman deepwater blocks for bidding and Reliance has bagged one of them. Oman's is the second oil and gas block Reliance has acquired outside India. It holds a 20 per cent stake in the exploration block 9 in Yemen, where a significant oil discovery has already been made. The official said Reliance was on the lookout for oil and gas exploration and production properties in the Middle East, Latin America, Africa and Australia. Reliance Industries, which operates a 33 million tonnes per annum capacity refinery at Jamnagar in Gujarat, has ventured into oil and gas exploration in a big way. It has already struck huge gas reserves at two fields in Bay of Bengal and is now scouting for assets overseas.

Courtesy: www.financialexpress.com, January 05, 2005

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It is not just the big steel companies that are bullish about 2005. Small and mid-sized firms are also drawing up plans to expand capacity and ramp up revenues in the new year - either through brownfield expansion or by raising productivity at the plant level. Companies across the spectrum are hoping the robust demand seen this year will continue in the coming year. Take Pune's mid-sized steel company Indian Seamless Metal Tubes (ISMT), which had a capacity of 180 metric tonnes. "We have made some investments in heat equipment, which has helped us improve production. We hope to increase production to 225 metric tonnes next year. Higher production is also possible through productivity improvements without making further capital expenditure," says ISMT's Goel. ISMT is looking at expanding capacity as it moves out of a loss in the last quarter to becoming a profit-making company from the next quarter. Goel says investment in capacity expansion may not be required as there is huge enthusiasm at the shop floor level to improve production levels. Similarly, Bangalore-based Yuken, which produces hydraulic machines, is looking at expanding capacity and revenues as the company gears up for an higher demand. Gujarat NRE Coke expects the upturn in the steel sector to continue and hopes to double its turnover. This will be achieved not only by adding up capacity but also because the cost of coke is on an upward spiral. NRE Coke's second plant at Bhachau, Kandla will manufacture of 3.24 lakh tonnes per annum of low ash met coke ahead of its schedule. The entire plant will be in operation by Feb-Mar 2005, according to NRE Coke president Sumit Kumar Khaitan. Another company planning to double its size next year is Bhushan Steel & Strips. The company is planning to cross the Rs 3000 crore-mark next year, up from the '03-04 turnover of Rs 1,759 crore.

Courtesy: The Economic Times, January 05, 2005

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Sustaining the growth momentum achieved last year, the domestic IT industry is likely to grow 21.7% in 2005, becoming the fastest-growing market in the Apac region, IDC said. IDC India, which gave top 10 predictions relevant for the Indian ICT market for 2005, said India's domestic IT market would be the fastest-growing in the Asia/Pacific region followed by Vietnam and China. The IT spending growth rate will be the lowest in Japan at 1.8%. "Indian domestic market will be the fastest-growing market in the Apacregion, predicted to grow at 21.7% in 2005 over 2004. The growth in 2005 comes on the back of rising corporate profits, improvement in macroeconomic parameters (both globally and domestic) and heightened business confidence," the research firm said. With mobility, convergence and IT management driving growth in 2005, the high growth categories in 2005 will be notebooks, smart handheld devices, inkjet MFDs, security software, network and system management software, information access and delivery software, and IT outsourcing. "All the above categories will witness more than 30% growth over 2004," IDC India said. In the domestic ICT spending arena, BPO and IT services will be the highest-growing verticals. Government and education will emerge on the technology horizon and banking and financial services will continue their strong run.

Courtesy: The Times of India, January 03, 2005

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The Indian professional has not had it better. With the global economy opening up frontiers, its Indian counterpart continuing to smile, the Sensex surpassing its previous highs and a boom in the industry, the air is agog with excitement. And, this year, say industry watchers will be no different, as the country will witness a repeat of last year's feat. As the global economy sits perched on a resurgent mode, it is time for the Indian professional to go places, literally! Buoyed by skill set, talent pool and language proficiency, along with technical prowess, the rod is all set for the Indian professional. With FII investment flowing in strongly into the market and the services sector booming, it has been a sunny ride for India professionals. And this will continue in 2005, feel experts. India's talent pool will help its professionals go places. While the US will continue to remain a hotspot for Indian professionals, thanks to its expanding tech community, Russia, Germany, France and the Netherlands will also become important destinations.

Courtesy: The Economic Times, January 03, 2005

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