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Sensex
Witnesses New Peak
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The
stock market indices touched new highs
again on the back of fresh inflows from
foreign institutional investors (FIIs)
and falling global oil prices. The benchmark
Bombay Stock Exchange (BSE) sensitive
index (Sensex) crossed the 9000-mark for
the first time to 9005.63 in intra-day
trading. However, it closed below the
9000-level at a lifetime closing high
of 8994.94, gaining 105.91 points as compared
to the previous closing. The Sensex has
risen sharply in the last five trading
sessions, hitting record highs from last
Friday. Other developed markets too recorded
new highs. Japan's Nikkei share average
topped 14,900 earlier in the day for the
first time since December 13, 2000 and
the U.K.'s FTSE-100 hit a four-year high.
The NSE Nifty gained 28.55 points to close
at 2712. Sectors such as refinery, fast
moving consumer goods (FMCG), power, construction,
automobile and cement led Monday's rally.
The major gainers, which helped the Sensex
to reach new highs, were: index heavy
weights such as ONGC, TCS, State Bank
of India, Infosys Technologies, Reliance
Industries, Reliance Energy, L&T, Grasim,
BHEL, Bajaj Auto, Wipro, Tata Power, ITC
and HLL. The total net investment of FIIs
touched Rs. 3,487 crore till November
24. Oil prices have fallen below $58 a
barrel in Asian trade, which too boosted
the sentiment on the bourses.
Courtesy:
The Hindu, November 29, 2005
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Manmohan
Singh Targets 10 per cent Growth
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Targeting
a GDP (gross domestic product) growth
of 10 per cent in two-three years and
terming it as "eminently feasible," Prime
Minister Manmohan Singh on Tuesday pledged
to explore the possibilities of permitting
foreign direct investment (FDI) in the
retail sector, sort out problems in the
power sector and strive to usher in flexibility
in the labour market. Dwelling on the
two ticklish issues while addressing delegates
at the concluding session of the India
Economic Summit here, Dr. Singh said:
"We will try for a consensus on making
labour markets more flexible ... As for
FDI in retail, we are engaged in an intellectually
stimulating exercise to understand the
possibilities that exist in opening up
this sector and how best we can harness
it for our needs." Setting the country's
GDP growth target still higher, Dr. Singh
said that India was likely to average
a growth of 7.5 per cent in the next four
years but "we should be targeting 10 per
cent growth in two-three years. In my
view, this is eminently feasible, if we
manage a quantum leap in growth rate of
agriculture, if investment in infrastructure
provides a fresh impetus to industry and
if services continue with their impressive
performance," he said.
The
country's infrastructure, Dr. Singh said,
had reached a "take-off" point. "All the
elements of an essential institutional
framework are now falling in place. If
the private sector seizes the initiative,
the sky is the limit," he said. The only
hurdle in this regard was the power sector,
which was plagued with complex problems.
Assuring that this problem too, would
be sorted out, Dr. Singh said, "We are
determined that we will set many things
right in the coming year. I am personally
holding wide consultations to remedy the
situation here [power sector]." On the
trade front, Dr. Singh visualised the
emergence of a free trade area in Asia
within the next few years and outlined
the road map for free trade agreements
(FTAs) with China, Japan, South Korea
and possibly, even Australia and New Zealand.
"This pan-Asian Free Trade Area could
be the third pole of the world economy
after European Union and NAFTA and will
open up new growth avenues for the economy,"
he said. Efforts were being made to move
towards a single integrated farm market,
Dr. Singh said. For this, an integrated
food law, transferable warehouse receipts,
an advance forward market in commodities
along with amendments to the Essential
Commodities Act were essential. "We should
work towards liberating agriculture from
controls that shackle its potential. We
have nudged many States into amending
the APMC Acts ... We may see India emerging
as the granary of the world. The private
sector must not miss out on this opportunity
and must ride the boom that I see on the
horizon," he said. As for FDI, the Prime
Minister said the policy regime was already
quite liberal. But still, a group of Ministers
was looking into ways of further revamping
the existing FDI regime with the aim to
cut red tape. In fact, "barring the financial,
retailing and coal mining sectors, India
was extremely liberal in welcoming FDI,"
he said. Noting that there were no external
constraints to growth, Dr. Singh said
that the hurdles being faced were all
internal, "imposed by polity, social structure,
regional imbalances and inequity, besides
[the] inability to take hard but essential
decisions." "We need growth, we need jobs,
we need income and we need security,"
he said. "History will judge us harshly"
if bold decisions were not taken, Dr.
Singh added.
Courtesy:
The Hindu, November 30, 2005
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Only
8 p.c. Growth Target Practical: Ahluwalia
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Deputy
Chairman of the Planning Commission Montek
Singh Ahluwalia on Sunday maintained that
the vagaries of coalition politics would
not be a hurdle to achieving an eight
per cent GDP (gross domestic product)
growth, although a higher growth target
of 10 per cent would be "hugely difficult."
Addressing the India Economic Summit here
jointly organised by the World Economic
Forum and the Confederation of India Industry,
Dr. Ahluwalia said: "It is tempting to
go for a double-digit growth of 10 per
cent. But with coalition [politics], it
looks hugely difficult." Explaining further
the reasons for his apprehension, Dr.
Ahluwalia said: "Coalition politics is
consistent with eight per cent growth.
Policy requirement for this kind of growth
[itself] is huge. It is not only change
in policies; we also need to see if they
are delivering properly. As of now we
have a lot to do to achieve the eight
per cent growth ... Let us be practical
and go for eight per cent growth now,
though not many people seem to be impressed
by such growth." To tide over these policy
and implementation problems, Dr. Ahluwalia
said the Planning Commission would make
an effort to incorporate such changes
during the Eleventh Plan which would indicate
the consequences in case certain development
programmes were not undertaken as planned.
Dr. Ahluwalia noted that after the initial
phase of reforms till the mid-1990s, the
growth rate turned sluggish to average
about 5.6-5.8 per cent and inched up slightly
to 6.5 per cent by the turn of the millennium.
Comparatively, the growth during the current
fiscal would be good. However, for achieving
the growth rate of 7-8 per cent as targeted
for the year, the Government would have
to concentrate its efforts towards improving
the country's infrastructure and lay more
stress on health and education, he said.
Courtesy:
The Hindu, November 28, 2005
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Bhel
Strikes a Deal in Libya
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Continuing
its success in the overseas markets, state
run Bharat Heavy Electricals Limited has
commissioned a 150 MW gas turbine generator
in Libya. The unit has been commissioned
by BHEL on turnkey basis for the Genela
Electricity Company of Libya at its upcoming
600 MW (4x150 MW) gas turbine-based Western
Mountain power project. "BHEL is in the
process of installing three more units
of similar rating at the Western Mountain
power project, which on becoming fully
operational by June 2006, will be the
largest power plant set up by BHEL overseas,"
a company release said. The gas turbine
has been exported against an order for
four such machines -- the single largest
overseas order received by any capital
goods manufacturer in India. The 600 MW
gas-based power station is being set up
by BHEL on turnkey basis. BHEL is also
imparting training to Libyan engineers
on the design, operation and maintenance
of gas-based power stations. Commissioning
of this set assumes significance as it
is the highest rating power plant equipment
to be exported from India as well as the
highest rating gas turbine commissioned
by the company in overseas markets.
Courtesy:
The Economic Times: November 22, 2005
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IFFCO
in US$ 325 Million Joint Venture With
Egyptian Company
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Indian
Farmers Fertiliser Cooperative Ltd, in
collaboration with Egyptian El Nasar Mining
Company, has launched Indo-Egyptian Fertiliser
Company for setting a US$ 325 million
phosphoric acid project in Egypt. The
JV project is scheduled to be commissioned
in early 2009, an IFFCO statement said
here. The mega project to be set up at
an estimated cost of $325 million would
be financed with the debt equity ratio
of 70:30, it added. IFFCO would have an
assured supply of nearly one million tonne
bulk phospheric acid for its Kandla plant
in Gujarat once the JV gets commissioned,
IFFCO Managing Director U S Awasthi said.
The Indian fertiliser cooperative major
would have 76 per cent equity while the
balance 24 per cent would be held by its
Egyptian counterpart in the JV. ENMC,
Egypt's largest rock phosphate mining
company, will supply basic inputs for
the project while IFFCO will buy back
the entire phosphoric acid output. The
land needed for construction of the project
at Edfu, near the rock phosphate mines,
has already been allotted by the Aswan
Governorate, while the project also received
free zone status from the General Authority
for Investments and Free Zones, Egypt.
Discussions regarding the syndication
of about $220 million loan for the project
are in process, Awasthi added. IFFCO Chairman
Surinder Kumar Jhakar has been elected
as the Chairman of Indo-Egyptian Fertiliser
Company.
Courtesy:
Sify.com: November 23, 2005
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India
Shines in a Hazy Global Journey
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The
current year has seen a general slowing
in the global economy. For one, global
GDP has come down by 0.6% in '05 to 3.2%
as compared to '04 according to World
Bank estimates. Global exports have also
recorded a decline in the current year.
Higher oil prices and increasing global
imbalances have led to a subdued economic
climate in the current year as compared
to the previous year. However, the Indian
economy is in good shape in terms of GDP
growth, industrial production and export
growth rates. According to government
statistics, India recorded an 8.1% growth
in GDP, up by 1.1% from the previous quarter.
In contrast, while China recorded a 9.4%
GDP growth, this was 0.1% lower than the
previous quarter. The US economy was the
other economy that recorded an increase
in its GDP in the last quarter. Countries
in East Asian regions recorded strong
economic growth, although not to the same
level as India or China. The euro zone
continued to record growth rates below
2%. China and India are the two talking
points in the world today. Interestingly
enough, there is a lot of difference between
the growth stories of the two countries.
China's growth story has been dominated
by its manufacturing sector.
Courtesy:
The Economic Times, November 25, 2002
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Infosys
Among World's Most Admired Firms
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Infosys
Technologies announced on Monday that
it is the first Indian company to be inducted
into the Global Most Admired Knowledge
Enterprises (MAKE) Hall of Fame. Infosys
features among 22 other global organisations
including Dell, General Electric (GE),
Hewlett Packward (HP), Accenture, IBM
and Microsoft, the Bangalore-headquartered,
NASDAQ-listed company said in a statement.
Infosys has been recognised for its organisational
learning and for transforming enterprise
knowledge into shareholder value. It is
also the first and only Indian company
to win the Global MAKE award for the third
consecutive year, the statement said.
The award stands as a testimony to clients,
emphasising the strength of their partner.
The 2005 Global MAKE award winners offer
long-term potential due to their intellectual
capital-driven wealth creation, it said.
A total of 10 Global MAKE Winners rank
among the global top 100 companies by
market capitalisation. Similarly, for
the publicly traded 2005 Global MAKE Winners,
return on assets was nearly four times
that of the Global Fortune 500 company
median. Infosys ranked among the highest
in this category, the statement added.
Courtesy:
Hindustan Times, November 21, 2002
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Micro
Tech Develops Car Security System
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MICRO
Technologies has developed a car security
system with embedded microvehicle black
box (Micro VBB), which when fitted in
the vehicle, sends SMS alerts to its owner's
mobile, against unauthorised intrusion
in the vehicle. Dr P. Sekar, Chairman
and Managing Director, Micro Technologies,
made a presentation on the security system
at the IT Innovation in India Awards 2005.
Dr Sekar, highlighting its special features,
said that it has an intrusion detection
security (IDS) system, a fire alarm and
gas leakage detection, remote access security
and a breathe analyser (to test the alcohol
level). He said that these could be operated
through use of mobile (SMS) / E-mail /
Telephone He said currently about 12,000
customers were using the MicroVBB in India
and the order booking is around three
lakh. Micro VBB is priced in the Rs 12,000-19,000
range.
Courtesy:
The Hindu Business Line, November 25,
2002
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Satyam
Bags 'Vendor/Client Collaboration' Award
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Satyam
Computer Services Limited has announced
that the company won the 'Vendor/Client
Collaboration Award' at the Global Sourcing
Summit, hosted in San Diego, California,
from November 1 to November 3, 2005. The
award recognises effectiveness in delivering
successful consumer alliance. One of the
goals of the event was to bring together
decision-makers and leading sourcing providers,
expand market knowledge, cultivate business
relationships, and network in a constructive
environment. Attendees explored practical
examples of how organisations should approach
and implement their sourcing strategies
by reviewing Gartner analyst presentations,
industry panel discussions, and case study
presentations by service providers. Sourcing
executives examined governance models,
knowledge management and relationship
models that work effectively for nearshore
and offshore sourcing.
Courtesy:
Business Standard: November 24, 2005
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Satyam
Computer Gets Top Ratings in SAP by Forrester
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Satyam
Computer Services Ltd said on Thursday
that it was judged as the company having
the strongest and the most global SAP
offerings, by a study conducted by Forrester
Research, Inc. The company has been evaluated
against 24 criteria and is best suited
for all types and sizes of SAP projects,
the company informed the Bombay Stock
Exchange. The company has a good global
presence, out of nine Indian service providers
taken in the study, Forrester said. "We
have invested a great deal to expand our
SAP offerings and portfolio, as well as
deepen our skills and it has paid off",
Company SVP, Director and head of SAP
Business unit Manish Mehta said. "Our
global capabilities, proactive alignment
with SAP's future strategy and our track
record of engagements across various industries,
has over the years given us an impressive
advantage over our competition in the
SAP service market. We continue to keep
our leadership ahead of all competition",
he said. The company has deep vertical
expertise in six sectors, the largest
of which are manufacturing, consumer packaged
goods and telecommunications, the study
said. It also has extensive global reach
in 46 countries, including 10 major global
rollouts recently. Furthermore, the company
has a large number of clients for complex
SAP projects, including several active
maintenance deals, many of which are larger
in scope, it added.
Courtesy:
The HindustanTimes, November 17, 2005
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Tata
Indicom's Walky Gets Award
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TATA
Indicom has received the `Best Service
in Emerging Markets Award' for its fixed
wireless service, Walky, at the World
Communication Awards, held recently in
London. The World Communication Award
recognises outstanding achievement among
telecom service providers at a global,
regional and national level. Mr Harish
Bhat, President-Marketing, Tata Teleservices,
said, "The Award clearly depicts that
our Fixed Wireless Service is increasingly
and rapidly gaining popularity. The market
response to this product has been very
positive and we see tremendous growth
potential in this product category going
forward. We are keen to further grow this
category and offer a range of feature-rich
phone instruments to our customers at
great value tariffs." Earlier, the Government
had hauled up Tata Teleservices for offering
Walky as a mobile service under the garb
of fixed line telephony allegedly to avoid
payment of access deficit charge. The
company was later directed to pay the
ADC and continue the service. Tata Indicom
was the first to launch CDMA-based Fixed
Wireless Service in the country. "Around
the globe, manufacturers had considered
Fixed Wireless Service as a dead product.
But after the tremendous success of Tata
Indicom, Fixed Wireless Service in India,
today international vendors are investing
money and are taking interest in Research
and Development (R&D) on Fixed Wireless
Service," said a company release.
Courtesy:
The Hindu Business Line, November 25,
2005
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African
Firms Target Indian JVs, Condicaf Leads
Pack
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From
agri-processing to infrastructure to chemicals,
a new band of African businessmen are
eyeing investment opportunities in India.
Most of these African entrepreneurs want
to enter the Indian market through JVs.
Some are even learnt to be in advanced
stages of negotiations with prospective
Indian JV partners and are expected to
finalise deals at the end of the on-going
India Africa conclave in the Capital.
Among the most-sought-after African investors
in India is Cote d'Ivoire-based Condicaf
group. It's learnt to be in touch with
more than half-a-dozen Indian companies
to set up JVs in sectors ranging from
chemicals to agro-processing. The company
already has business understandings with
some Indian small and medium enterprises
(SMEs) doing business in the African country.
Another company leading the African pack
is the Beninian agri-processing major
SOCAFA Sarl. Besides being smitten by
the Indian growth story, African businesses
have been motivated by policymakers on
both sides, who have been actively trying
to patronise trade from both sides. While
African leaders are trying to decrease
their economy dependence on erstwhile
European colonial masters such as France
and Great Britain. Policymakers in India
see a vast trade and economic opportunity
in Africa in the long run. "Africa is
the continent of the future and India
must move fast not to be left behind,"
said Natwar Singh, till yesterday India's
foreign minister. Mr Singh was speaking
at the India-African trade here on Monday.
Courtesy:
The Economic Times, November 09, 2005
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Amul's
World's Biggest Vegetarian Cheese Brand
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The
Catholic church will take up the study
of Sanskrit, adapt to monastic life in
an ashram and adopt the Hindu ritual of
aarti during mass if the movement towards
'Indianisation of the church' gets the
nod from 400 priests and five bishops
congregating in Pune. Starting Tuesday,
Pune's Papal Seminary, which is celebrating
the 50th anniversary of its transfer from
Kandy (Sri Lanka) to the city, will play
host to the priests for three days. Discussions
will cover the state of the church in
India and the movement for its Indianisation.
The Catholic church has already adopted
a number of Indian traditions and practices
and has come a long way, four decades
after the historic Second Vatican Council
(1962-65) brought an epochal shift in
the modern church through its declaration
on religious liberty. Pune's Papal Seminary,
which has ordained over 1,250 priests
during the past 50 years, has continued
with its modernisation effort along with
its associate institutions such as the
Jnana-Deepa Vidyapeeth (JDV), formerly
the Pontifical Anthenaeum, and the De
Nobili College. Pune-based Catholic leaders
such as Joseph Neuner, Kurien Kunnumpuram,
Francis X D'Sa, John Vattanky and Subhash
Anand have been stressing for lesser control
from the Vatican, to make the church "truly
Indian and genuinely Christian". 'Many
Christian priests follow ancient ashram
system strictly'. Francis X D'Sa, an internationally
acclaimed Sanskrit scholar has noted in
his paper published in 'Dreams and Visions:
New Horizons for an Indian Church (2002)':
"Today, the time has come for the Indian
church to shed its image of a multinational
company and retrieve those characteristics
which bring out its 'Catholicity' in the
best sense of the word." Pandikattu Kuruvilla,
teacher of philosophy at JDV and the Papal
Seminary's rector, Ornellas Coutinho,
explained that a number of Indian religious
customs and practices have already been
embraced by the Catholic church to become
truly Indian.
Courtesy:
The Times of India, November 09, 2005
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Dr
Reddy's to Acquire Roche's Unit in Mexico
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Hyderabad-based
Dr Reddy's Laboratories (DRL) has entered
into an agreement to acquire Roche's active
pharmaceutical ingredients (API) business
in Cuernavaca, Mexico. The total investment
outlay is about $59m including working
capital. This is Dr Reddy's first overseas
acquisition in the API space and will
help the company strengthen its capabilities
in the custom pharmaceutical services
(CPS). This business is involved in the
manufacture and sale of APIs including
intermediates to Roche and other innovator
companies. The product portfolio comprises
about 18 products including a range of
intermediates and steroids. "With the
acquisition of Roche's API business at
the Mexico site, Dr Reddy's will emerge
as a leading player in the CPS business
and position itself as a partner of choice
for innovator companies across the globe
with service offerings spanning the entire
value chain of pharmaceutical services,"
GV Prasad, CEO, Dr Reddy's Laboratories,
said in a statement. This strategic acquisition
provides an opportunity for the company's
CPS business to grow ten-fold from the
current base of $10m to $100m over the
next 18 months.
Courtesy:
The Economic Times, November 09, 2005
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Indian
Exports to Grow Above 20%
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Indian
exports are expected to grow at above
20 percent in dollar terms for a second
year running, a senior trade official
said on Tuesday. India's director general
of foreign trade, K.T. Chacko, told reporters
he expected the impact of the rupee's
recent slide against the dollar to be
"quite good" for India's exporters. The
rupee has shed 5.5 percent in 2005, losing
more than 4 percent since the start of
October amid concerns about a rapidly
widening trade deficit and the dollar's
gains overseas. "Lot of capital goods
and raw materials imports are flowing
into the country, indicating a buoyancy
that would galvanise foreign trade," Chacko
told reporters on the sidelines of an
exporters' meeting in the southern city
of Hyderabad. Chacko said final export
figures for the previous year ended March
showed exports had grown 26 percent in
dollar terms. Government data in April
had shown exports from Asia's third-largest
economy grew 29 percent to $80 billion
last year.
Courtesy:
The Economic Times, November 09, 2005
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Omega
Wants India in its Top Five Mkts
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Swiss
watch major Omega in Tuesday said India
would emerge as its top five markets in
the world in coming years. Speaking after
opening its first exclusive 'Omega boutique'
in South India here, Stephen Urquhart,
president of Omega International, told
reporters that China and India were key
markets for the watch major. China has
already overtaken Japan and the US to
become the number one market for the Swiss
luxury watch company. India would be among
its top five markets in coming years.
"India is an important market for Omega,"
he said. Omega, which opened its exclusive
outlet here, plans to open three-four
similar boutiques next year. In addition,
the company would also open its second
outlet in Delhi this year. With a market
share of 30 per cent in the Rs 900 crore
premium watch segment in India, Omega
was the number one player in the segment,
he said. The premium segment starts at
Rs 60,000 to upwards.
Courtesy:
The Economic Times, November 09, 2005
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TCS
Buys Chilean BPO Firm
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Tata
Consultancy Services has acquired Comicrom,
a Chilean business process outsourcing
company (BPO) in banking and pensions,
for $23 million. Disclosing this at a
press conference here, TCS Chief Executive
Officer and Managing Director, S. Ramadorai,
said Comicrom, a privately-held company,
had posted a revenue of $35.3 million
during the financial year. The company
with 1,257 employees provides BPO services
to banks, insurance companies, pension
funds, and government bodies in Chile.
About the consolidation of TCS in the
global pension industry, Mr. Ramadorai
said the acquisition augmented the company's
presence in this sector. The Chilean company
was processing 67 per cent and 55 per
cent of the total premium payments a month
for four of the seven pension funds and
health insurance providers respectively.
He recalled TCS's recent outsourcing engagement
with the Pearl Group of the U.K. as part
of the consolidation process. With the
acquisition, the company's regional staff
strength had increased from 700 to 2,000
and the client base from 23 to 100. TCS
proposed to invest in Comicrom to strengthen
its BPO infrastructure and IT systems
and would be increasing the staff strength
in its global delivery centre at Sao Paulo,
Brazil, within two years as there was
a lot of scope and talent pool available.
TCS' present strength of 700 included
300 at Uruguay. TCS Global Head of Sales
and Operations, N. Chandrashekharan, said,
the acquisition would drive TCS' growing
presence in the region's banking sector
as the Santiago-based Comicrom's local
expertise combined with TCS' banking domain
expertise and assets would enable the
company to offer entire range of IT and
BPO services to banks in Latin America.
Henry Manzano Zahr, CEO of Comicrom, said,
"We are delighted to become a part of
TCS as its global reach will allow Comicrom
access to a much larger market."
Courtesy:
The Hindu, November 09, 2005
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Eurocor
to Use India as Hub
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European
cardiovascular devices manufacturer, Eurocor
GmbH, will make India its hub for South
Asian markets. Rakesh H Dube, country
manager-South Asia said, the company planned
to tap Bangladesh, Nepal and Sri Lanka
through India. He explained that these
markets were growing at a fast pace, especially
Bangladesh which was growing at the rate
of 35-40 per cent compared to a 23-25
per cent growth rate in India. Dube said,
the size of the Indian market was 60,000
units of coronary stents, out of which
the company was angling for a 10 per cent
market share. Dube said, Eurocor would
clock in a turnover of Rs.30 crore in
the first year. Earlier Eurocor used to
sell its products in the country through
distributors. Dube added, in three years'
time, the company would have a turnover
of Rs.60-70 crore from India and this
was exclusive of exports to South Asian
countries.
Courtesy:
Business Standard, November 08, 2005
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India
and China Woo Cross-Border Business
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For
years, the rapid growth of China and India
has been based on business with the developed
world, and has often meant taking business
away from Western industries. Now, companies
in those countries, the world's two largest
emerging economies, are beginning intensive
drives to hunt for business in each other's
markets. In recent months, one giant business
after another from the two Asian giants
has announced ambitious expansion plans
in the other's economies. Trade between
the two countries had already been growing
at a phenomenal rate, reaching $13.6 billion
last year - a sevenfold increase from
1998. Companies in each country have explained
their new investments as critical strategic
moves aimed at profiting from each other's
rapid rise. But also driving the new boom
in cross-border investment has been the
shortage in talent in crucial sectors
in each country, each of whose strengths
are remarkably different. China is an
industrial powerhouse in the making, while
India has placed its bets more heavily
on services. Nowhere can this trend be
seen more clearly than in information
technology, where India is already perceived
as a global leader, and where China vows
to catch up. Infosys Technologies, an
Indian software and information services
leader, to take one leading example, recently
announced plans to invest $65 million
to expand its business in China, where
it will hire 2,000 computer experts over
the next two years and build large new
corporate campuses in Shanghai and Hangzhou
able to accommodate thousands more workers.
Infosys has not previously made an investment
in China of that size and scope. Experts
say it presages similar moves by other
Indian technology companies. "Today, options
for people are increasing in India so
rapidly that hiring has become a matter
of who's willing to overpay the most.
When you look at the numbers of engineering
graduates coming out of the Chinese universities,
this becomes a very attractive place for
us." The Indian information technology
sector is growing so quickly that wages
in some areas are increasing 25 percent
a year, and qualified graduates from the
country's best schools are becoming scarce.
China produces 400,000 engineering graduates
each year, many of them in computer studies,
and Indian companies' expansion into China
is aimed in part at wooing them. Infosys,
based in the capital of India's computer
services industry, Bangalore, has risen
from obscurity in the past few years to
become one of the world's top 10 computer
outsourcing companies, mostly by providing
software services to large corporations
in the United States and elsewhere in
the West. Infosys's recent moves in China
have been mirrored by those of several
other large Indian companies that specialize
in computer services and outsourcing,
like Tata Consultancy Services, Wipro
and Satyam Computer Services. Earlier
this year, Satyam announced its plans
to build a major campus in Beijing. Another
Indian company, NIIT, has recently expanded
its presence in China, creating over 125
centers around the country, where it teaches
programming and other computing skills.
Courtesy:
iht.com. November 08, 2005
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'India
Considered a Stable Country For Investing'
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India
is considered a stable country for investing
in by corporates overseas. This is evident
from the fact that not a single corporate
has approached the World Bank Group's
Multilateral Investment Guarantee Agency
(Miga) for non-commercial risk cover for
making FDIs in the country. This was revealed
by Miga's global head of agri-business,
manufactiring and services, Nabil Fawaz.
Speaking at a round table meet on overseas
investment opportunities with Miga organised
by Export Import (Exim) Bank of India,
Mr Fawaz, said that if a company approaches
Miga for insurance cover for investments
in India, the rate for risk premiums would
range between 110-130 basis points. This
is significantly lower than what Miga
would charge for investments in countries,
like Nigeria and Iran, etc, where the
rate was as much as 200 basis points.
Meanwhile, Mr Fawaz revealed that Miga
was evaluating proposals from three Indian
companies for risk cover that are investing
in South East Asia and Africa. The total
investment is around $200-400 million.
The companies are exploring investments
in manufacturing power and mining industries,
he said. Meanwhile, six Indian companies
from pharma and engineering field are
ready to acquire and pump in foreign direct
investments (FDI) in UK and Europe markets,
in collabaration with Export Import Bank
of India (Exim Bank)."The six projects,
involving Indian companies were in final
stages of negotiations and the nitty grities
were being worked out. It would be premature
to talk about the figures and exact investment
at this junction," said S Sridhar, executive
director, Exim Bank.
Courtesy:
The Financial Express, November 08, 2005
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Nissan
Starts Outsourcing Non-Core Work to India
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Even
as it is testing the waters in the country's
automobile market, Nissan Motor Company's
US operations has started outsourcing
non-core work to India. Currently confined
to work at one of its North American assembly
plants in Smyrna in Tennessee, the outsourcing
activity is likely to affect about 150
jobs and is aimed at making Nissan more
effective and efficient."These jobs have
been outsourced to Genpact (formerly GECIS)
facilities in Gurgaon, Hyderabad and Bangalore.
This activity is part of an overall effort
to find ways to make Nissan more effective
and efficient," Mr Fred Standish, Nissan's
Director for Corporate Communications
for North America, told Business Line
in reply to an e-mailed questionnaire.
Genpact works in the area of sales & marketing
analytics, financial services, finance
and accounting information technology
services. Mr Standish did not say how
much Nissan will save because of such
outsourcing activity. "We have no comment
about potential savings, since this is
a purely internal matter," he said. Sources
close to Nissan said about 150 jobs may
get affected because of the outsourcing
of work to India. Nissan is also keen
to outsource infotech related jobs to
India. The Nissan Chief Executive Officer,
Mr Carlos Ghosn, was in India last year
scouting for infotech companies to whom
the automaker could outsource IT work.
But Mr Standish did not say whether any
progress has been made after the visit
of Mr Ghosn. "We are constantly looking
for ways to make our company more effective
and efficient. However, we aren't going
to comment on our future plans, including
those related to IT matters," he said.
Nissan has assembly plants in Smyrna in
Tennessee and Canton in Mississippi, its
corporate and design offices in California,
an engine manufacturing plant in Decherd,
Tennessee, an engineering and product
testing office near Detroit and a call
centre in Dallas for its financial division.
Meanwhile, Nissan has major plans to expand
its automobile operations in the country.
According to Mr Neeraj Garg, Country Head
and Director (Marketing), India is part
of Nissan's global Value-Up programme.
Under this programme, Nissan will aim
to produce 4.2 million cars worldwide
by 2007. It currently imports and sells
X-trail, a sport-utility-vehicle, in the
country. Average sales are about 25-30
vehicles per month.
Courtesy:
The Hindu Business Line, November 08,
2005
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Reliance
Registers Record Subscriber No
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Within
four months of Anil Ambani taking over
its reins, Reliance has become the first
telecom company to achieve the 15-million
mark in subscriber base. The subscriber
base includes both CDMA and GSM. The CDMA
subscriber base (Reliance Infocomm) is
about 13.9 million, while that of GSM
(Reliance Telecom Ltd) is 1.6 million.
"This gives us close to 25 per cent share
of the total (mobile) subscriber base
of about 68 million (both CDMA and GSM),"
the company said. Reliance is followed
closely by second-ranked Bharti, which
has a customer base of 14.7 million. State-run
BSNL comes third with a base of about
12.5 million.
Courtesy:
The Economic Times, November 08, 2005
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SBI
Acquires Indonesia's PT Bank IndoMonex
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State
Bank of India has acquired Indonesia-based
PT Bank IndoMonex, a closely held bank
with seven branches in Jakarta, Bandung
and Surabaya. This is SBI's third overseas
acquisition this year after Indian Ocean
International bank in Mauritius and Giro
Commercial Bank in Kenya. A statement
issued by SBI said that it has executed
documents for acquiring 76per cent of
the paid-up capital along with management
control of PT Bank IndoMonex, subject
to regulatory approvals and processes.
PT Bank IndoMonex is a closely held entity.
SBI has not indicated either the consideration
or the the asset size of the bank. The
bank is a small player in the Indonesian
financial sector. AK Purwar, chairman
of State Bank of India said that the acquisition
was made to gain an entry into Indonesia.
"East Asia has had historical links with
India and has been viewed with interest
by SBI. With the proposed acquisition,
State Bank would increase its footfall
in the Asean region where we are already
present in Singapore," he said. He added
that SBI has developed strong skills in
various aspects of banking which would
be of relevance to the Indonesian market.
"I expect that this step would benefit
not only the resident Indian community,
but would facilitate trade and investment
and also provide a platform for us to
participate in the growth and prosperity
of a friendly country," he said.
Courtesy:
The Economic Times, November 08, 2005
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