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Mahindra
to Sell Scorpio in France, Malaysia
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Mahindra
& Mahindra Ltd., India's largest utility
vehicles maker, will begin exports of
its Scorpio utility vehicle to France
and Malaysia in February, a company official
told a news conference on Tuesday. Alan
Durante, president of Mahindra's auto
division, told reporters the company had
orders for 200-250 units of the Scorpio
from Malaysia and 150 from France.
Courtesy:
www.financialexpress.com, February 22,
2005
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Mahindra
Ties up with Nippon Steel
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Mahindra
Intertrade Ltd (MIL), a steel trading
company of Mahindra Group, has formed
a joint venture with Nippon Steel Corporation
(NSC) to set up a steel service centre
for processing electrical steel in Sharjah.
NSC, which would be an equity partner
in this venture, would supply the necessary
raw material for the new company, Mahindra
group said in a release here on Monday.
MIL managing director R R Krishnan said
the service centre has been set up in
a record time and has already made its
first commercial dispatch to ABB (Riyadh),
it said. NSC General Manager Shinya Higuchi
said the demand for electricity in the
Middle East would grow at a high rate
due to strong economic growth and demand
is growing for grain oriented electrical
steel, a key material for transformers
required in electrical distribution.
Courtesy:
The Economic Times, February 22, 2005
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'India's
growth is on a Fast Track'
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''India's
growth is on a fast track which is evident
in the easy availability and accelerated
sale of consumer products all over the
country,'' said Dr Suman Bery, Director
General of National Council of Applied
Economic Research (NCAER), at a function
organised by Ludhiana Management Association.
Dr Bery is acclaimed as an authority on
consumer habit patterns in India. Citing
the reason for the increased consumer
spending in India, Dr Bery negated the
myth that growth of the Indian economy
was a recent phenomenon saying that the
country had been sustaining a growth of
around six per cent per annum since 1980.
He compared the leading economies of the
world on Big Mac parameter or purchase
power parity as is commonly known. ''The
Indian economy today is worth US $ 3 trillion
on purchase-parity parameter, is at the
fourth place with US, China and Japan
occupying the top three positions respectively.
Even in 1980, the country was the fifth
largest economy in the world with almost
US $ 600 billion,'' adducing his claim.
He said, ''China, which was the ninth
largest economy in 1980 and much smaller
than India's then, had made remarkable
progress since and is the second biggest
economy today.'' This simply means that
Chinese economy had been growing at much
faster rate than India's, he said.
Courtesy:
The Indian Express, February 22, 2005
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GAIL
to Buy 9% of China Gas for $31 mn
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India's
largest gas transporter, GAIL (India)
Ltd will pay about HK$243 million ($31.2
million) in cash for a nine per cent stake
in a Chinese city-gas distributor, marking
the latest investment by a foreign firm
in the country's small but fast-growing
gas market. Shares in Hong Kong-listed
China Gas Holdings Ltd jumped to a 34-month
high on Tuesday after the company said
it would sell 210 million new shares to
GAIL at HK$1.158 per share. State-owned
GAIL joins a spate of high-profile investors,
including Italy's largest utility Enel
and Hong Kong tycoon Li Ka-shing, to invest
in the gas distribution business in China,
which boasts up to 70 per cent margins
on connection fees and over 30 per cent
margins on gas sales. "China Gas is a
good concept stock backed by big energy
firms, but investors should take note
that the sector is very competitive and
the stock has jumped a lot," said sales
and research director at Tai Fook Securities
Andrew. China Gas' shares have more than
doubled in the past year and surged nearly
22 per cent in the past three months.
Courtesy:
Hindustan Times, February 22, 2005
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Raw
Silk Production Rises 24% at 7,931 Tonne
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The
sericulture sector in the country is on
a revival after going through a tough
phase of low production due to droughts
and fall in prices on account of dumping
of cheap silk from China. In terms of
production, as per the provisional figures
provided by the Central Silk Board (CSB)
for the six-month period of April-September
2004-05, raw silk production has gone
up around 24% at 7,931 tonne compared
to 6,387 tonne during April-September
2003-04. The total production in the 2003-04
period was 13,970 tonne. Out of this,
in the mulberry silk segment bivoltine
silk the major focus segment of CSB, has
seen a tremendous growth of around 98%
during the 2004-05 period at 445 tonne
compared to 225 tonne in 2003-04. According
to CSB CEO and member secretary H Basker,
"In mulberry silk the thrust is on bivoltine
silk, which is high quality silk and has
much better productivity." It would also
better the chances of Indian raw silk
exports, he said. The multivoltine cross
breed production has seen an increase
of 23% in April-September 2004-05 at 6,758
tonne compared to 5,710 tonne in the same
period of the previous fiscal. The Vanya
silk (Tasar, Eri and Muga) production
also has gone up during this period from
677 tonne in 2003-04 April-September to
728 tonne. Vanya silk is yet another thrust
area of CSB and has major scope in the
export markets. Silk export earnings during
April-September 2004-05 including natural
silk yarn, fabrics, madeup, ready made
garments, and silk carpets have registered
a growth of 18% at Rs 1,306.37 crore compared
to that of Rs 1,107.05 crore in April-September
2003-04 period. In 2003-04 fiscal the
export earnings of silk from the country
stood at Rs 2,779.19 crore.
Courtesy:
www.financialexpress.com, February 22,
2005
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Fapcci,
Austrian Chamber Ink Pact to Boost Trade
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The
Federation of Andhra Pradesh Chamber of
Commerce and Industry (Fapcci) has signed
an agreement with the Austrian Federal
Economic Chamber in Hyderabad. The memorandum
of understanding (MoU) was aimed at fostering
friendship and to promote trade, investment,
social, economic, human resource development,
technical and scientific cooperation.
The MoU was signed between C Leitl, president
of Austrian Federal Economic Chamber,
and OP Goenka, president of Fapcci. The
signing of the MoU coincided with the
opening of Austrian trade office in Hyderabad.
"This is the largest trade mission that
has ever visited India and it is an expression
of the importance with which India is
viewed by the Austrian industry," he said.
"A wide range of sectors like energy,
steel production, railways and road infrastructure,
banking, environment, health, test and
measuring technology, medical technology,
telecommunication, machinery for niche
markets and services for the tourism industry
is covered under the agreement. Austria
will offer state-of-the-art technology
and is open for cooperation," he said.
"Austria was among the first countries
with which India established diplomatic
relations in 1949. Today, the European
Union is India's largest trading partner.
We see Austria as an important and strategic
link with the expanded European Union.
The impact of sustained economic reforms
has transformed the economic environment
in India and made it entrepreneur-friendly.
India, especially Andhra Pradesh, offers
a very big market for Austrian products,"
he said. "Infrastructure development,
energy, health, telecommunication, environment,
electronics and computer software are
the potential areas where both the countries
need to work towards intensifying the
relationship and possible joint ventures,"
he added.
Courtesy:
www.business-standard.com, February 21,
2005
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GDP
grew 7% in First Half: CII
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India's
economy grew by seven per cent in the
first six months of 2004-05 because of
a healthy growth in the services and manufacturing
sectors, according to the Confederation
of Indian Industry's (CII) "state of the
economy" report. Despite a dip in November
2004, the index of industrial production
(IIP) between April and November 2004
rose 8.3 per cent while the services sector
recorded a growth of 9 per cent. The agriculture
sector, however, showed a decline of 0.8
per cent during the third quarter of the
current fiscal. The downward trend in
agriculture continues since the third
quarter of 2003. Within the services sector,
trade, hotels, transport and communications
grew by 11.6 per in the third quarter
of 2004-05. The country's corporate sector,
too, recorded a strong performance during
the period with turnover and operating
profits growing by 10 per cent for both
services and manufacturing sector companies.
In the manufacturing sector, the average
sales for the surveyed companies were
Rs 114 crore during April-December 2004
and increased by 10 percentage points
from the same period last year. Growth
in operating profits are also up 10 per
percentage points to 36 per cent compared
with last year. Sales in the services
sector increased by 36.8 per cent in the
first three quarters of 2004-05. According
to CII, the increase in margins reflects
greater capacity utilisation as sales
volumes have increased and unit fixed
costs have declined, helping to absorb
the rise in variable input costs.
Courtesy:
www.business-standard.com, February 21,
2005
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Local
Auto Majors Eye Romanian Tractor Co
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Indian
automobile majors are eyeing Romanian
tractor company Tractorul SA Brasov, which
is up for privatisation. Utility vehicle
and farm equipment maker Mahindra & Mahindra
has evinced interest in the company, which
is Romania's biggest tractor maker. Romanian
ambassador to India Vasile Sofineti told
ET, "Tractorul, Romania's biggest tractor
company (specialising in agricultural
tractors), is up for privatisation. Indian
companies like M&M have shown interest.
M&M isn't the only Indian auto company
to have shown interest in Tractorul. According
to reports in the Romanian media, the
Tata group has also evinced interest in
the company. When contacted, a Tata group
spokesperson said, "The chairman of Tata
International, Shyamal Gupta, met with
some people but there is nothing in it
at this stage. It is too preliminary to
comment." According to Mr Sofineti, a
high profile Romanian delegation is scheduled
to visit India next week to meet potential
investors in the privatisation process.
"A delegation which includes the governor
and mayor of Brasov (home to Tractorul)
will be in India to meet M&M, the Tatas,
the Birlas and Reliance," Mr Sofineti
said. While the Romanian market is pretty
small - 6,000-odd units a year to India's
1.9 lakh units in '03-04 - Tractorul's
attraction is that it could offer a toe-hold
in the EU market in the not-too-distant
future. The company currently has a capacity
of 18,000 tractors per year in the 26-100
HP category. An integrated plant, it also
makes 24,000 diesel engines for its tractors
and has a castings and forging capacity
of 35,000 tonne and 20,000 tonne respectively.
Courtesy:
The Economic Times, February 21, 2005
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Mahindra
Intertrade sets up Steel Service Centre
in Sharjah
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As
part of the initiative to expand Mahindra
group's presence globally, Mahindra Intertrade
Ltd (MIL), a predominantly steel trading
company of the Mahindra Group, has set
up a steel service centre - Mahindra Middle
East Electrical Steel Service Centre -
in Sharjah, for processing electrical
steel. It has also entered into a strategic
alliance with Nipon Steel Corporation
(NSC). NSC, which will be an equity partner
in this venture, will supply the necessary
raw material, according to a statement
from the company made available to Business
Line. Mr R.R. Krishnan, Managing Director,
Mahindra Intertrade, said: "Given the
product and processing expertise, MIL
has ventured outside India to add critical
value chain for the transformer industry.
An efficient model has been built in to
service the customers in West Asia and
the neighbouring regions including Africa."
The transformer industry is poised for
a major growth in West Asia and the new
venture will, therefore, have a critical
role to play. The service centre has been
set up in a record nine months time and
has already made its first commercial
dispatch to ABB, Riyadh. Mr Shinya Higuchi,
GM, Nippon Steel Corporation, said that
this region is a growing market for grain-oriented
electrical steel, a key material for transformers.
He said the new service centre will greatly
improve service to the existing clients
and will also contribute to sales to new
clients in West Asia. Mr Anand Mahindra,
Vice-Chairman and MD, Mahindra and Mahindra
Ltd, Sheikh Abdullah bin Mohammed Al Thani,
Chairman of Saif Zone and Mr Higuchi attended
the inaugural ceremony.
Courtesy:
www.thehindubusinessline.com, February
21, 2005
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Manufacturing,
Services Cos Post 10 pc growth in Apr-Dec
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Companies
in the manufacturing and services sectors
have witnessed over 10 per cent growth
in turnover and operating profits during
the April-December 2004-05 period compared
to the previous year, according to a CII
report. However, while there has been
an increase in profit margins for the
manufacturing sector, there has been a
decline for companies in the services
sector. For the 544 manufacturing firms,
operating margins increased from 14.8
per cent in 2002-03 to 17.4 per cent in
2004-05 whereas post-tax margins jumped
four percentage points to 8.7 per cent.
During the April-December period in 2004-05,
for the manufacturing sector the drop
in interest costs has slowed down from
the steep 22 per cent decline last year,
according to the CII report. This reversal
in the movement of interest costs is strongly
reflected in the services sector with
interest costs rising by 14.8 percentage
points. This could point to the upturn
in interest rates in the last couple of
months, according to the report. Sales
in the services sector too rose by 36.8
per cent in the first three quarters of
2004-05. Within the services sector, trade,
hotels, transport and communications grew
by 11.6 per cent over 11 per cent of the
last quarter. However, financing, real
estate, business services, and community
and personal services moderated the services
sector growth. The success of hotels,
transport, and communications in the services
sector was primarily due to increased
growth of construction from 3.6 per cent
to 5.2 per cent. Also, electricity, gas
and water supply that grew 9.2 per cent,
led to the success of these sectors, the
CII report said.
Courtesy:
www.thehindubusinessline.com, February
21, 2005
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Ranbaxy
to set up JV in Mexico
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Ranbaxy
Laboratories will set up a majority-owned
joint venture in Mexico to tap the growing
demand for generic drugs there. The joint
venture with a Mexican firm will cater
to the marketing and distribution demands
of the local market. The proposal was
cleared by the Ranbaxy board recently.
The move is part of the company's Garuda
vision to become a $5 billion company
by 2012. About a year back, the company
had picked up a controlling stake in France-based
RPG (Aventis), besides setting up a subsidiary
in Spain. Industry analysts estimate the
value of the Mexican pharmaceuticals market
at $7 billion, with an annual growth rate
of 10 per cent. In 2001-02, Mexico accounted
for Rs 149.6 crore of the total sales
of Indian companies, according to a study
by the Indian Pharmaceutical Alliance.
This grew by 66 per cent to Rs 248.3 crore
in 2002-03. Mexico accounted for 2 per
cent of the total global sales during
the same period. Ranbaxy was one of the
few global generic companies to benefit
from the quick opening of the Brazil market,
which contributed $30 million to revenues
in the second full year, post entry. According
to industry analysts, a similar upside
in markets like Mexico, France, Argentina
and Canada cannot be ruled out. Ranbaxy
has already lined up its manufacturing
facility in Brazil to cater to the local
generics demand. Ranbaxy markets its products
in 70 countries and has manufacturing
facilities in seven locations across the
globe. Companies like Ranbaxy have been
seeking new revenue streams to beat a
new law that recognised product patents
and ended decades-old copycat trade. Larger
companies are looking overseas as drugs
worth billions of dollars go off patent,
or aim to become suppliers of drug ingredients
for pharmaceutical majors, besides doing
contract research such as complex chemical
synthesis. Other Indian pharmaceutical
companies are also eyeing the Mexican
market, with Wockhardt already announcing
a majority owned joint venture in Mexico.
Wockhardt has signed a joint venture agreement
for a 51 per cent stake in Wockhardt Mexico
S.A. de C.V., with the remaining 49 percent
held by Representaciones E Investigaciones
Medicas, S.A. de C.V.
Courtesy:
www.business-standard.com, February 21,
2005
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Biotech
Sector to be Single Largest Job Churner:
Expert
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Biotech
industry may become the single largest
sector for employment of skilled human
resource in the years to come, according
to Dr Manju Sharma, former director, Department
of Biotechnology, Government of India.
Giving a presentation at Prithvi 2005,
the global meet on eco-friendly products
and technologies, under way here, Dr Sharma
said there are enormous opportunities
for a career in new biosciences and new
biology. The enormity of biological resources
makes a case for raising a whole cadre
of highly trained professionals for inventorisation,
characterisation and documentation. Other
areas offering big opportunities are plant
and agriculture related activities, testing
of GMOs (genetically modified organisms)
and transgenics; use of diagnostics in
health care, industrial biotechnology,
environmental protection and biodiversity
conservation, food processing, production
of biologicals and other biotech products
and entrepreneurship development, teaching
and training in biotechnology. Other emerging
areas are those of molecular geneticists/technologists
who understand the molecular basis of
genetic disease and to effect its cure,
gene therapy, breeding new crop plants
and livestock, biotechnology industry,
production a range of products from pharmaceuticals
to microchips and food testing. The genetic
data is becoming the major driving force
in drug discovery, protein engineering,
design of new molecules, and other related
areas. The large stores of biological
data are holding promise to serve as the
"Discovery Super Highway" for the innovations
in biotechnology through a process of
analysis and transformation of molecular
and structural data into biological knowledge.
Bioinformatics encompasses all the aspects
of biological information such as acquisition,
processing, storage, distribution, analysis
and interpretation that combine the tools
and techniques of mathematics, computer
science and biology with the aim of understanding
the biological significance of a variety
of data.
Courtesy:
www.thehindubusinessline.com, February
21, 2005
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'SBI
Keen on Local, Global Acquisitions'
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State
Bank of India recently acquired a bank
in Mauritius and is looking for similar
buyouts in Asia and Africa. While aggressively
pursuing this global growth strategy,
the country's largest bank is also scouting
for suitable takeover targets locally.
In an interview to Business Line, Mr A.K.
Purwar, Chairman, SBI, explained the rationale
of investing in the Mauritian bank and
the bank's plans for growth, both internationally
and locally. IOIB is a good bank, the
fourth largest in Mauritius. We will upgrade
its technology and take it to the number
one position, with a retail focus. This
acquisition would also enable us to expand
our network in the neighbouring economies.
SBI has mostly been an inward looking
organisation. Locally, we have grown from
400 branches in 1955 to almost 14,000
branches in 2005. Globally, we have hardly
grown - we have 54 offices spread over
38 countries. As the largest bank in the
country, it is befitting for us to have
some global ambitions and a global presence.
Courtesy:
www.thehindubusinessline.com, February
21, 2005
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Mumbai
set to Manage MNCs Asian Treasuries
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It's
early days still, but this could well
turn out to be a stepping stone for the
fall of Asian financial bastions and the
rise of a real challenger. Global majors
have begun relocating treasury management
for their subsidiaries spread across Asia
to Mumbai. HLL, for instance, is managing
the forex exposure for all Asian subsidiaries
of FMCG giant Unilever. Unlike other back
office operations like global equity research
for mega fund houses or outsourcing of
tax, audit and legal services, the emergence
of Mumbai as the hub for pan Asian treasury
desks involves control over core operations.
Back office functions are outsourced primarily
for the cost advantage but, treasuries
predominantly deal in front office functions
like asset liability management, money
market operations, capital market operations,
loan structuring and so on. The scope
for growth is tremendous since even the
Indian MNCs do not aggregate their regional
exposures in India, right now. The Birla
group companies for instance, run shops
overseas but do not consolidate treasury
operations. There is a central reporting
mechanism for the operations but the functions
are run in a fragmented manner across
the different markets. With the number
of MNCs of Indian origin growing, it is
only natural that Mumbai will come out
as a major regional financial hub in time.
Courtesy:
The Economic Times, February 19, 2005
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ONGC
Among World's 25 Energy Majors
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State-owned
Oil and Natural Gas Corp (ONGC) has been
ranked among the top 25 energy firms in
the world. "Continuing high crude oil
prices helped the company to improve its
share valuation (7.6 per cent) and climb
up to the 24th rank (as on December 31,
2004) in the PFC Energy 50 ranking," ONGC
said in a press release here. ONGC previously
was ranked 30th on the PFC Energy 50.
PFC is an energy consulting firm specializing
in the financial, strategic, commercial,
political aspects of the international
oil, gas and power industry. PFC Energy
was established in 1984 and is one of
the pre-eminent strategic advisory firms
in global energy. Combining a detailed
knowledge and understanding of markets,
countries and competition, PFC Energy
is recognized in the global energy industry
for the depth of its analysis and ranking.
ONGC joins the exclusive club of ExxonMobil,
British Petroleum, Royal Dutch/Shell,
Total and ChevronTexaco, the best among
oil and gas companies in the world. The
company's rank had fallen to 30 from 19
earlier (in March 31, 2004 ranking), mainly
due the stock's temporary reactions to
external developments post-election in
April-May 2004. ONGC with market cap of
USD 26.9 billion remains the only oil
and gas company in India in the PFC-50
Energy.
Courtesy:
The Times of India, February 19, 2005
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Branding
India is a Difficult Task'
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Brand
managers while building a 'Brand India'
have to consider the diversity and complexity
of the country, eminent politician and
economist, Jairam Ramesh, said here on
Friday. Speaking at the CII Brand Summit,
2005, Mr Ramesh, said, "It is not easy
to build a single brand India when one
considers the country's diversity in language,
religion and culture. Brand managers have
to factor in the diversities that exist
in India to create successful and profitable
brands. Sadly though, very few companies
consider these factors which results in
products failing despite an elaborate
planning". A bottom of the pyramid approach
would be more suitable for India. Branding
India was not easy given the fact that
the country had numerous regional and
area specific diversities. No two states
or regions were alike and each were driven
by their own peculiar set of characteristics
that were intensely unique. It was therefore
better to let the sub-brands like the
individual states and cities to build
their own brand identities leading to
an aggregated brand India. "Bangalore
for instance has created a name for India
internationally as the country's IT capital.
Moreover, the Indian market has changed
a lot from what it was 40 years ago. The
new policies and the opportunities that
came with that have created new avenues
of business and growth that did not exist
before. "Marketeers have to understand
that they are targeting an ever-changing
market and mindset," Mr Ramesh, said.
Courtesy:
www.financialexpress.com, February 19,
2005
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India
and China take Seat at Global Oil Table
|
| |
|
India,
sharing a ravenous thirst for oil, has
joined China in an increasingly naked
grab at oil and natural gas fields that
has the world's two most populous nations
bidding up energy prices and racing against
each other and global energy companies.
Energy economists in the West cannot help
admiring the success of both China and
India in kindling their industrialisation
furnaces. But they also cannot help worrying
about what the effect will be on energy
supplies as the 37 per cent of the world's
population that lives in these two countries
rushes to catch up with Europe, the US
and Japan. And environmentalists worry
about the effects on global warming from
the two nations' plans to burn more fossil
fuels. With engineering expertise and
equipment more available around the world,
one result is that oil executives and
drillers in remote spots increasingly
speak Mandarin or Hindi, not English.
Their newfound commercial confidants live
in pariah states like Sudan and Myanmar,
one sign that the political dynamics of
the world oil market pose a difficult
challenge for the Bush administration.
The prospect of China's consuming ever
growing lakes of oil has been noted over
the years, although it is gaining new
urgency as Chinese consumption continues
to soar. Now India is joining China in
a stepped-up contest for energy, with
both economies booming recently just as
their oil production at home has sagged.
China trails only the United States in
energy consumption; India has moved into
fourth place, behind Russia. During a
recent conference in New Delhi, a succession
of top Indian officials saluted Omer Mohamed
Kheir, the secretary general of the Ministry
of Energy and Mining in Sudan, who sat
beaming in the middle of the front row.
State-controlled ONGC recently began producing
oil in Sudan in cooperation with Chinese
state-owned companies. It s now building
a pipeline in Sudan and negotiating to
erect a refinery as well. ''The Asians
came to Sudan in a very difficult time,
and we created a very good strategic relationship
with them,'' Kheir said. ONGC CMD Subir
Raha said Western countries had been arbitrary
in their imposition and removal of sanctions
on countries like Libya, so his company
could not be expected to follow their
practices for countries like Sudan and
Myanmar. ''If you talk about pariah states,
Libya is an excellent example,'' he said.
''One fine morning, you see there are
no sanctions.'' India's oil imports climbed
by 11 per cent in 2004, and China's by
33 per cent, straining the capacity of
production operations, pipelines, refineries
and shipping lines and helping to keep
oil prices above $40 a barrel. The International
Energy Agency expects them to use 11.3
million barrels a day by 2010, which will
be more than one-fifth of the global demand.
Courtesy:
The Indian Express, February 19, 2005
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Kazakhstan
wants India in Oil Projects
|
| |
|
While
oil minister Mani Shankar Aiyar on Thursday
put life back into Indo-Kazakhstan bilateral
ties with a slew of proposals that have
potential to change the regional energy
balance, his counterpart V Shkolnik, and
PM Danial Akhmetov offered India a pivotal
role in its oil industry and sought wider
participation of Indian business. Emerging
from the shadows of Kurmangazy oilfield
deal, the Kazakh leadership promised Aiyar
a substantial oil asset to be announced
by president N Nazarbayev when the oil
minister calls on him on Friday. "We wanted
to give you Kurmangazy. We gave you an
opportunity to revise your offer. Realise
that you were competing against Total,
Shell, etc. There's a decision at highest
level to give you an asset. The president
will articulate it tomorrow. Please make
an offer we can't refuse," sources quoted
Shkolnik as telling Aiyar.
Courtesy:
The Times of India, February 18, 2005
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to Index
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Indian
Tourists Turn Global Hot Property
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India
is becoming a hub for tourism boards of
an increasing number of countries. From
just three tourism board offices in '01,
the country now has offices of over 19
tourism boards in both New Delhi and Mumbai.
British tourism, Singapore tourism and
Malaysian tourism boards were among the
first to set up offices to promote their
countries. The tourism board offices of
several other countries were then operating
through representatives. The scenario
is changing, especially after Indians
have started travelling abroad in large
numbers. A number of countries have set
up offices here and are working closely
with the travel trade to promote their
respective countries. Tourism boards of
countries such as Austria, Germany, Italy,
Switzerland, South Africa, Mauritius,
Maldives, Thailand, Sri Lanka, Honk Kong,
Macau, Indonesia and New Zealand have
set up full-fledged offices here. However,
Australia, USA and Canada still operate
through representatives.
Courtesy:
The Economic Times, February 18, 2005
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to Index
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Global
Glow Warms Birla Campfire
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A
few days after Hindalco concluded the
acquisition of Nifty copper mines in Australia
on January 24, '03, Aditya Birla group
chairman Kumar Mangalam Birla addressed
250-odd employees of the mining company
from Mumbai through a video-conferencing
facility. His message was simple: The
group flagship Hindalco wants to become
the world's largest non-ferrous metals
company. For the Australian company's
employees, Kumar Mangalam Birla's words
heralded the arrival of an Indian MNC.
Kumar Mangalam's father, the late Aditya
Vikram Birla, started the global voyage
much before the concept of Indian MNCs
became fashionable. It was in 1970 that
Aditya Vikram Birla set foot in Thailand
to set up his first overseas venture,
called Indo-Thai Synthetics, long before
phrases such as 'doing business in a borderless
world' became fashionable. International
business now accounts for 35% of AV Birla
group's total turnover of Rs 29,000 crore.
"In the years to come, the share of global
business will go up. I have to say that
our long-standing presence overseas and
the exposure it brings, made the task
of adapting to different cultures much
easier," says Kumar Mangalam Birla, chairman
of the Aditya Birla group. Carbon black
and viscose staple fibre account for the
major portion of the global business.
While the group's global carbon black
business has a turnover of Rs 1,200 crore,
global revenues from the VSF businesses
are around Rs 4,500-4,600 crore. Other
global businesses include palm oil refining,
acrylic fibre, paper pulp and copper concentrate.
The group, which is planning to increase
its global share to 45% of the total turnover
in the next few years, has around 12,000
employees overseas, representing 20 nationalities.
Courtesy:
The Economic Times, February 18, 2005
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to Index
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Tourism
Sector to Grow Handsomely: CII
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The
tourism sector is expected to grow by
9.7 per cent per annum and the country
is expected to witness the second largest
employment creation from the sector, Confederation
of Indian Industry (CII) said on Thursday.
The northern region could significantly
benefit from these positive trends in
the Indian tourism industry if it took
the necessary steps to facilitate growth,
Rakesh Bharti Mittal, Chairman of CII
(northern region), said at a two-day conference
on 'Integrated Tourism Development - Exploring
Synergies in the Northern Region' here.
He urged the northern states to coordinate
efforts to promote tourism in a holistic
manner, evolve common programmes for marketing
and promotion, involve private sector
to a greater extent and synergise the
tourism policies at the state level. Speaking
at the conference, Amitabh Kant, Joint
Secretary in the Ministry of Tourism,
expressed concern over the falling share
of northern region in tourism and invited
the tourism industry to come forward and
work closely with the states. Emphasising
the need for a clear roadmap for the promotion
of tourism, he said the northern states
should give due focus to building strong
infrastructural support.
Courtesy:
The Economic Times, February 18, 2005
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to Index
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Shipping
Industry Grows at 38 pc
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|
Indian
Shipping industry has been able to achieve
38 per cent growth largely due to the
tonnage tax regime introduced by the UPA
government, Union shipping minister T
R Baalu said today. Speaking at a function
in which Prime Minister laid the foundation
stone of the International Container Transhipment
Terminal project, he said the maritime
sector in India had been a major player
in catalysing the growth of the country's
international trade. "About 95 per cent
of the global merchandise trade passes
through our sea ports and our major and
minor ports have coped admirably with
the challenges thrown up by India's globalisation
process," he added.
Courtesy:
The Economic Times, February 17, 2005
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to Index
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The
Shining Industry of Diamonds
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The
$1.5bn diamond industry in India is shining
and this time it's the branded players
who are adding the sparkle. To play around
a bit with that oft-quoted line from Marilyn
Monroe - diamonds are indeed a girl's
best friend - and in today's world, savvy
companies are making the most of this
weak trait in a tribe that is otherwise
known for its strength of character. Branded
categories are fuelling growth in the
$1.5bn diamond industry in India. Though
the industry has registered a growth of
24% in '03, the branded segment has grown
at a galloping 40%. Indeed, India was
the highest growth market in the world
in '03 and figures available so far with
the industry indicate that '04 will also
register the highest growth globally.
Lower price points have been the key to
growth, with entry-level prices pegged
as low as Rs 2,500. "The Rs 5,000-30,000
bracket is contributing to the bulk of
volumes," said Ms Tandon Saldanha. "The
year '04 has been a good one for the diamond
industry and there has been a marked acceptability
of branded diamonds," said Marzin Shroff,
CEO, Ishi's, a retail brand from the $200m
Suashish Diamonds, one of the largest
DTC sight holders. Moving into retail
branding was a strategic shift for Suashish
at a time when consumer trends pointed
to a marked growth curve for the branded
segment. The western region has also shown
the highest propensity for buying diamonds,
registering 30% growth. Targeted marketing
has also helped sales to rise in an industry,
that is moving away from being a traders'
domain primarily to one that is being
run by professionally-managed companies
that hire external agencies to handle
promotional activities. "The industry
is opting for a more professional structure.
Consequently, there is an emphasis on
increasing distribution points which,
in turn, is translating into higher sales,"
said an industry source.
Courtesy:
The Economic Times, February 17, 2005
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to Index
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Now,
Missile Companies Heading for India
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India
is poised to become a key outsourcing
hub for global aerospace and missile companies
as it has cheap and skilled engineers
on offer. Talking to Financial Express,
director (exports), of France-based MBDA
missiles systems, Jean Luc Lamothe said,
"India with its skill base and projected
economic growth is the preferred partner
nation for MBDA due to its unique potential
of becoming a defence industrial hub in
the region. As such, there are extensive
opportunities for collaboration with Indian
industry, combining the company's technology
and skills base in weapons design, testing
and integration developed over the last
50 years. The company has recently submitted
proposals for potential areas of joint
technology research during discussions
with Defence Research and Development
Organisation (DRDO), said Mati Hindrekus,
official spokesman of MBDA. He added,
"on one hand we will benefit from Indian
software skills and the country's lower
cost base. On the other India will gain
access to the world's most advanced guided
missile technology, which will give the
nation a much greater degree of autonomy
in developing its current and long term
defence capabilities."
Courtesy:
The Indian Express, February 17, 2005
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to Index
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Leyland
Bags $10m Deal in Sudan
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| |
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Ashok
Leyland today announced that it had signed
a $10 million agreement with GIAD Auto,
the Sudan Government's vehicle assembly
unit, to supply Stallion 4X4 army trucks
and Falcon buses to the Sudan defence
ministry. A Leyland press release said
the deal was announced on the sidelines
of IDEX 2005 in Dubai. IDEX 2005 is an
international defence exhibition that
is currently being held in the UAE. In
the first phase that is valued at $ 10
million, 100 Stallion trucks and 100 Falcon
buses would be supplied. The release added
that there are prospects for an annual
supply of 500 trucks and buses. Leyland
is to supply CKD (knocked down) units
to GIAD, which will then be assembled
at its facility near Khartoum.
Courtesy:
The Business Standard, February 17, 2005
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to Index
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India
has Outsourcing Edge Over LatAm, Eastern
Europe'
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In
the race for outsourcing business, India
has an edge over Latin America and Eastern
Europe. Over the next 15-20 years, India
would gain from its culture and philosophy.
Grant Thornton director Vaibhav Manek
said: "India and China have emerged as
upcoming economic superpowers. Brazil
and Argentina have been subdued, while
Mexico is showing nominal growth rates.
Countries like Ukraine have witnessed
political instability with low growth
rates." Latin America is an emerging offshoring
destination due to the same time zone
as the US and growing Spanish clout. Yet,
consultants feel that the Hindu and Buddhist
cultures of India and East Asia have a
broader world view. A consultant with
one of the Big Four opined: "India and
China are moving with a purpose, while
many western countries are struggling
for a vision." Mr Manek added: "India
has a well-regulated corporate law regime.
Its companies have increased their foot
prints the world over, an extension of
our deep-rooted philosophy of entrepreneurship."
An AT Kearney study of 275 MNCs shows
a dramatic increase in sourcing of goods
and services from low-cost supply markets
like India and China. By 2009, 73% of
North American companies will source from
China, while 60% will source from India,
52% from Brazil, 55% from Eastern Europe
and 68% from Mexico. Among European companies,
54% will source from India, 74% from eastern
Europe, 68% from China and 37% from Brazil.
Domestic business for Indian IT companies
is also expected to rise. A Gartner survey
sees IT spending by Indian corporates
growing to $22.9 billion in 2005.
Courtesy:
www.financialexpress.com, February 17,
2005
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to Index
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Global
Aero Cos Throng India
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| |
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India
is poised to become a key outsourcing
hub for global aerospace and missile companies
as it has cheap and skilled engineers
on offer. Talking to FE, director (exports),
of France-based MBDA missiles systems,
Jean Luc Lamothe said, "India with its
skill base and projected economic growth
is the preferred partner nation for MBDA
due to its unique potential of becoming
a defence industrial hub in the region.
As such, there are extensive opportunities
for collaboration with Indian industry,
combining the company's technology and
skills base in weapons design, testing
and integration developed over the last
50 years. The company has recently submitted
proposals for potential areas of joint
technology research during discussions
with Defence Research and Development
Organisation (DRDO), said Mati Hindrekus,
official spokesman of MBDA. He added,
"on one hand we will benefit from Indian
software skills and the country's lower
cost base. On the other India will gain
access to the world's most advanced guided
missile technology, which will give the
nation a much greater degree of autonomy
in developing its current and long term
defence capabilities." "In the aerospace
industry, more and more software is increasingly
being used. In India you can get both
aerospace engineers and the IT guys and
there is cost advantage," he said. He
said the decision of Hindustan Aeronautics
Limited (HAL) to get into the civilian
aircraft market by making doors for Airbus
and Boeings will trigger a chain of suppliers.
The combination of IT and aerospace has
given India the edge. More than 1,400
companies have set up base in Bangalore,
India's technology capital, and international
software companies are using the base
for their outsourcing operations. An indication
of the growing importance of Bangalore's
aerospace potential can be gauged from
the fact that during a recently concluded
Aero India 2005 air show - billed as the
largest in South Asia - deals worth more
than $1.2 billion were signed between
Indian and foreign aerospace firms. "Indian
aerospace firms are internationally competitive
and more customer-friendly. They have
that can-do attitude. For our cost-effectiveness
is not about lowest price but the best
value. There are areas of mutual interest
and opportunities to be explored," added
Mr Gordon. Tata Consultancy Services (TCS)
and National Aeronautics Ltd (NAL) recently
signed an MoU to offer solutions and services
in the aerospace sector for the global
market.
Courtesy:
www.financialexpress.com, February 17,
2005
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to Index
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China,
India to Drive Container Growth
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China
and India would be the countries to look
forward to which would be driving the
growth in international container traffic
in the world in the next decade, said
Sultan Ahmed Bin Sulayem, Executive Chairman
of Ports, Customs and Free Zone Corporation
of Dubai. Talking to The Hindu here today,
the Chairman said the containers handled
by India was around 4.5 million TEUs (twenty
equivalent units) while that of China
in the range of 100 million TEUs. There
would be a lot of idle capacity created
once the Dubai Ports International completes
the transhipment project at Vallarpadam.
At present, most ports are not using the
full potential of container transport
and the company would be able to give
a fillip to this sector in this country
in the next few years. DPI hoped to achieve
a 25 per cent growth here, which is the
norm in ports such as Dubai, and would
be handling 25 million TEUs from the present
11 million TEUs in the next five years.
The DPI has stake in nearly 20 ports in
the world but places much hope on Indian
operations because the Indian economy
is opening up and there is going to be
influx of goods to the country as well
as exports since most of the companies
were looking at foreign markets. Answering
a question, the Sultan said Vallarpadam
would be an ideal training ground for
labour. Since most port operations were
mechanised, it was the mind skills of
the labour rather than muscle power which
would come in for praise and the Kerala
labour knew this better than anyone, he
said. Asked whether there were any negative
factors that might impede growth here,
they said that more stress should be given
to infrastructure development. The internal
transport system should improve drastically
but they are drawing sustenance from the
words of the Union Minister for Shipping,
T. R. Baalu, who had committed the Government's
decision to go ahead with the projects
and complete them on time.
Courtesy:
The Hindu, February 17, 2005
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Cell
Phone Sector Jobs set to Grow by 30 pc:
Study
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The
number of people employed by the Indian
mobile telephony sector is set to grow
by 30 per cent over the next 12 months.
This sector currently provides direct
and indirect employment to over 3.6 million
people, according to a study commissioned
by the Global System for Mobile (GSM)
Association. The study released today
at the GSM World Congress being held at
Cannes, France, highlights the economic
benefits from the mobile services industry
in India, specifically examining the impact
on GDP, employment and government revenue.
The `Economic benefits of mobile services
in India' report prepared by researchers
at consultancy firm Ovum shows that by
December 2004, there were 47 million mobile
subscribers in India from a population
of over 1 billion, with subscriber numbers
growing by 87 per cent in the last 12-15
months. Ovum concludes that whilst the
market is buoyant, additional investment
is needed to ensure that the Government
achieves its own goal of 75 per cent rural
coverage by the end of 2006. Currently,
less than 30 per cent of the total population
is in range of mobile coverage - and that
is largely restricted to urban areas.
However, Ovum reveals that 53 per cent
of that GDP is exported due to the lack
of national network equipment and terminals
manufacturing business. "Developing components
manufacturing capability and industry
will be critical to maintaining a greater
proportion of the value-add generated
by the mobile services industry in India,"
the study said.
Courtesy:
www.thehindubusinessline.com, February
17, 2005
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Aviation
Industry: The Growth Story
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The
Indian aviation sector was characterised
by a high degree of government control
prior to 1990. The government of India
nationalised the airline industry in 1953
through the enactment of the Air Corporations
Act. Pursuant to this act, there were
only two players, both owned and controlled
by the government: Indian Airlines and
Air-India. The Asia-Pacific airlines industry
reached a value of $54.1 billion in 2003,
having grown at a compound annual growth
rate of 0.7 per cent in the 1999-2003
period. This growth was slightly stronger
than that of the global industry, leading
to the Asia-Pacific industry's global
share increasing by 1.8 per cent between
1999 and 2003, accounting for 23.2 per
cent of the global industry. The aviation
industry in India has overcome various
setbacks during the last few years following
the global recession since 2000-01, the
US terrorist attacks on September 11,
2001, the Gulf war and the Sars scare.
In spite of these setbacks, the air passenger
traffic at all airports was higher by
24 per cent during the first half of the
current fiscal as against a 7.8 per cent
increase recorded in the corresponding
period of 2003. The domestic air passenger
traffic saw a higher growth than the international
traffic. As the Indian economy is estimated
to grow by around six to seven per cent,
the Indian air travel market is expected
to grow around nine to 10 per cent. With
appropriate pricing and aggressive marketing,
the industry hopes to maintain this level
of growth in next few years also. To capitalise
on this momentum the industry needs good
infrastructure.
Courtesy:
The Asian Age, February 16, 2005
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to Index
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Indian
Software Firms Ride Aerospace Boom
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Indian
software firms high on aerospace, both
big and small and into products and services,
are extremely bullish about the immediate
future. The aerospace business is already
important for Tata Consultancy Services
(TCS), the country's top $1.5 billion
software firm, accounting for 5 per cent
of its total revenue. But parts of it
are set to grow very fast. Revenue from
engineering services (the other part is
IT services), which clocked around $13
million last year, is expected to grow
by 100 per cent in the next two to three
years, according to Regu Ayyaswamy, head
of product and process engineering, engineering
and industrial services (EIS). Overseas
business now predominates aerospace engineering
services, accounting for 85 per cent of
the total with customers among the leading
global names like Boeing, Airbus, GE Aircraft
Engines, Pratt & Whitney, Goodrich and
Dunlop Aerospace. But the signal the company
has received from Aero India is that the
share of the domestic business will grow
over time in view of the deepening relationship
with Indian leaders like Hindustan Aeronautics
and National Aerospace Laboratories. TCS's
aerospace engineering services practice,
which began in 1992, serves literally
every bit of the vertical, from aircraft
and engine manufacturers to their OEM
and tier one suppliers to maintenance
to the operators themselves. EIS helps
design aircraft hardware, avionics, embedded
systems and develop related software.
Courtesy:
www.business-standard.com, February 16,
2005
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to Index
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Indian
IT Market Nears $22 bn in 2004
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The
Indian IT market grew 26 per cent year-on-year
in 2004 to touch Rs 95,277 crore, according
to a study by consultancy firm Skoch.
Of the total Indian market, IT services
and IT-enabled services exports grew 32
per cent to touch Rs 59,948 crore, the
study said. While exports of ITeS were
up 49 per cent to Rs 22,181 crore, IT
services exports showed a growth of 24
per cent to Rs 37,767 crore. Total IT
and ITeS exports were worth $13.7 billion.
The domestic IT market also showed a robust
growth in the year gone by. The personal
computer market expanded 28 per cent in
value terms and 44 per cent in unit terms.
The sales of PCs grew to be worth Rs 11,653
crore in 2004. While 32,67,885 desktops
were sold in 2004, the notebook market
grew 64 per cent to 1,43,268 units. The
share of grey market fell from around
55-56 per cent over the last four-five
years to just 38 per cent in 2004. Till
2001, the six metros accounted for more
than half of the PC market, but in 2004
the non-metros accounted for 53 per cent
of all India sales, Skoch CEO Sameer Kochar
said. Apart from PCs, market for other
components of hardware stood at Rs 1,0494
crore. The domestic software market grew
15 per cent to Rs 2,593 crore with enterprise
applications contributing Rs 275 crore
and other packages Rs 2318 crore. The
domestic IT services market on the other
hand was up 26 per cent to Rs 10,590 crore.
The e-governance market spending in 2004
rose 23 per cent to Rs 2,200 crore.
Courtesy:
Hindustan Times, February 16, 2005
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Tata
Steel Acquires NatSteel
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Tata
Iron and Steel Company Ltd (Tisco) has
completed the acquisition of Singapore-based
steel company NatSteel by subscribing
to 100 per cent equity of its subsidiary
NatSteel Asia Pte Ltd (NatSteel Asia).
As part of the transaction, all steel
assets of NatSteel Ltd in Singapore, Malaysia,
Thailand, Vietnam, Phillipines, Australia
and China (except Changzhou Wujin NatSteel)
have been transferred to NatSteel Asia,
TISCO informed The Stock Exchange, Mumbai
(BSE) on Wednesday. Earlier, Tisco had
entered into a definitive share subscription
agreement to acquire steel business of
NatSteel, the company said. Amongst the
China investments, the regulatory approvals
for the transfer of Southern NatSteel
(Xiamen) and Wuxi Jingyang Metal Products
have been received and transferred to
NatSteel Asia, it said.
Courtesy:
The Economic Times, February 16, 2005
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Mittal
to Rule Steel World in Six Weeks, Exec
Says
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Mittal
Steel Co., which quadrupled its profit
in 2004, said on Thursday it expects to
complete its transformation into the world's
biggest steel producer in six weeks. That's
when it estimates it will close on its
$4.5 billion acquisition of International
Steel Group Inc. for $4.5 billion and
merge the U.S. steel maker with the other
assets of Indian-born steel magnate Lakshmi
Mittal. The purchase of Richfield, Ohio-based
ISG is the final step in the bid by Mittal
to surpass Europe's Arcelor as the biggest
steel producer. Mittal was born last December
when Dutch company Ispat International
NV completed its acquisition of LNM Holdings.
Mittal, an $18.5 billion behemoth that
dwarfs the market capitalizations of U.S.
steelmakers, such as Nucor Corp. and U.S.
Steel Corp., began trading in December
on the New York Stock Exchange and Euronext's
Amsterdam bourse. On Thursday, the company
announced it quadrupled its net income
in 2004 on the back of a China-driven
surge in steel prices and forecast a stable
market in 2005. Full-year net income rose
to $4.7 billion from $1.2 billion, and
revenue jumped 132 percent to $22.2 billion.
Late on Wednesday, ISG reported its fourth-quarter
profit soared, along with high world steel
prices. Net income was $606 million, or
$5.87 per share, compared with a loss
of $48.7 million, or 57 cents per share,
in the same quarter of 2003. The company
said its results included an unusual income
tax benefit of about $390 million, or
$3.78 per share. Excluding this tax benefit,
net income was $216.1 million or $2.10
per share. Analysts on average were expecting
$2.08 per share, according to Reuters
Estimates. On Dec. 20, ISG and Mittal
cleared an antitrust hurdle by getting
an early termination of the Hart-Scott-Rodino
Act waiting period, which speeded up the
planned merger. The younger Mittal said
the Securities and Exchange Commission
had now responded to Mittal's F4 filing
with certain comments regarding the deal.
Mittal was addressing those comments.
Shares in Mittal Steel were up 30 cents
or 0.8 percent at $37.95 on the New York
Stock Exchange in Thursday afternoon trading.
ISG stock was up 14 cents, or 0.35 percent,
at $40.65.
Courtesy:
The Financial Express, February 11, 2005
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to Index
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India
Inc's Year of Breaking Records
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India
Inc is on a roll. FY 2004 has proved to
be a record-breaking year for Corporate
India, with the sales of the top 1,000
companies rising over 16 per cent to Rs
9,84,752 crore, while net profits increased
by a huge 40 per cent to Rs 72,468 crore.
Excluding the oil companies, these top
corporates saw an 18.8 per cent growth
in net sales and a staggering 62 per cent
improvement in net profits. Profit margins
rose by almost 200 basis points. The story
of this excellent performance has been
told in this year's BS 1000, with in-depth
analyses of the reasons for the steep
rise in profits. Essentially, the growth
is a reflection of the restructuring that
Indian industry went through in the late
nineties and early years of this century,
shedding flab and becoming more competitive.
The result has been that when the business
cycle turned, and domestic as well as
external demand boosted the topline, much
of the gains went directly to the bottomline.
Lower interest rates helped not only to
reduce costs, but they also increased
demand. Commodity prices, too, were a
major factor in the turnaround. Indian
Oil remained India's biggest company,
while Reliance Industries continued to
be the biggest private sector player.
However, the top slot for the most profitable
company was bagged by ONGC, with Indian
Oil and Reliance following closely. Much
of corporate India is not listed. BS 1000
has also ranked the top unlisted companies,
with Tata Sons topping the list of private
unlisted companies and BSNL at the head
of the unlisted public sector units (PSUs).
While the private unlisted companies have
been able to improve their performance
substantally, the unlisted PSUs have not.
Courtesy:
The Business Standard, February 11, 2005
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to Index
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RIL
Petrochem Exports to China to Touch $700
m
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| |
|
Reliance
Industries Ltd will export petrochemicals
worth $700 million to China this year.
The country's largest petrochemicals major
will export close to $5 billion worth
of petrochemicals, used to produce plastics,
in 2004-05, said the Executive Director,
Mr Nikhil Meswani. RIL's export earnings
will be up around 92 per cent from $2.6
billion last year. Mr Meswani said India
will consume 12.5 million tonnes of polymers
by year 2010 making it the world's third
largest polymer consumer. Mr Meswani told
reporters on the sidelines of Chemtech
2005 seminar that the petrochemical business
will record double-digit growth in the
coming year but declined to make any forecast
for RIL's growth. He, however, said that
RIL's German acquisition Trevira would
have increased its share in the European
market to 11 per cent from 9 per cent
within four months of RIL acquiring it.
RIL became the world's largest polyester
yarn maker when it acquired the synthetic
fibre maker Trevira from Deutsche Bank
in June last year for 80 million euros
(around Rs 440 crore). Mr Meswani said
that RIL will also take advantage of research
undertaken by Trevira for its production
unit at Patalganga. Trevira possesses
several valuable patents, technologies,
and know-how. Mr Meswani said the Indian
petrochemicals business needed investments
worth $14 billion to add processing machines
by year 2012. He said the business needed
consolidation of small fragmented processing
capacities. A strategy followed by RIL
when it acquired the 80,000 tonnes a year
S.M. Dyechem glycol unit last month.
Courtesy:
The Hindu Business Line, February 11,
2005
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to Index
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Defence
Exports Touch $130 mn Mark
|
| |
|
Defence
exports will touch over $130 million,
topped by sales of helicopters and aircraft
built by Hindustan Aeronautics Ltd to
friendly nations. "We are hoping to achieve
exports of $130 million," Defence Secretary
(Export) Tapan Ray told PTI here. India
exported equipment and systems worth $93
million in 2003-04, he said. Exports to
countries like Nepal and Mauritius include
home grown Advanced Light Helicopter (Dhruv),
Lancer attack helicopter and Dornier transport
plane, he said. State-run aircraft maker
HAL, which has designed and developed
Dhruv is expecting to close a sale with
Chile this year, he said, adding, "if
it happens, the export figures would be
much higher". The main defence exporters
include state-run electronic equipment
major Bharat Electronics Ltd, Bharat Earth
Movers Ltd and Ordnance Factories Board,
besides HAL. BEL Chairman Y Gopala Rao
said that BEL aims to export $15 million
worth goods this fiscal, which include
radars to Indonesia and Sudan. It also
has civil orders valued at over $3.8 million
for supply of traffic signal systems and
solar modules to several countries. HAL
has export orders from Israeli Aviation
Industry, Airbus, Snecma and Boeing for
various components and systems, official
said.
Courtesy:
The Economic Times, February 10, 2005
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India's
Per Capita Income up by 5.2%
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An
average Indian will see only 5.2 per cent
rise in income at Rs 12,414 though the
economy is expected to log 6.9 per cent
growth this fiscal. According to Central
Statistical Organisation, the per capita
income in real terms is estimated to go
up to Rs 12,414 during 2004-05 from Rs
11,799 in the last fiscal. The per capita
income growth, measured in terms of 1993-94
prices, is expected to grow at a slower
rate of 5.2 per cent this fiscal as against
7.1 per cent in 2003-04. The National
Income at factor cost is estimated to
rise by 7 per cent to Rs 13,54,385 crore
during this fiscal as against previous
year's quick estimate of Rs 12,66,005
crore. However, at current prices the
per capita income is expected to grow
by 11.1 per cent at Rs 23,308 compared
to Rs 20,989 during the previous year.
Likewise, the national income is showing
an increase of 12.9 per cent at current
prices at Rs 25,42,921 crore in 2004-05
compared to Rs 22,52,070 crore the year
ago. "Though both the national income
and per capita income at constant prices
show a marginal decline in the growth
rate during 2004-05 in comparison with
the previous year, at current prices,
the estimates indicate almost doubling
in both nationl income and per capita
income," it said.
Courtesy:
The Economic Times, February 10, 2005
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Indian
IT, ITES to grow 32 pc in FY'05
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Indian
IT and ITES industry is poised to post
an 'unabated 32 per cent growth' in the
current fiscal, with total value of the
sector exceeding $28 billion by the end
of FY'05, compared with the year ago period,
according to software industry's apex
body, National Association of Software
and Service Companies (NASSCOM). While
service exports would continue to dominate
the sector's revenues, an expected increase
in domestic demand for ITES-BPO would
contribute towards increasing the size
of the overall pie, providing a further
boost to the industry, NASSCOM said in
its `Strategic Review For 2005' in Mumbai
on Tuesday. The earnings from exports
would increase to $17.9 billion, which
would be around 63.7 per cent of the total
industry revenues, from $13.3 billion
(61.9 per cent of total industry revenues),
the study said. IT services and software
would account for over 68 per cent, ITES-BPO
would account for 28.4 per cent and hardware
less than four per cent of the IT-ITES
exports, it said. Forecasts of increased
global demand for network integration,
application management and services, infrastructure
system maintenance and services would
be the key opportunities for Indian it
services vendors, it added. However, offshore
engineering, R&D and HR outsourcing would
be the key opportunities for Indian ITES-BPO
vendors, it said adding, North America
would remain the key market with US alone
accounting for over half of the industry's
export earnings. Banking, Financial Services
and Insurance (BFSI) and telecom are expected
to remain the key verticals served, with
healthcare, pharmaceuticals and biotechnology
emerging as an area of potential opportunity
as India adopts international intellectual
property (IP) regime outline by the World
Trade Organisation (WTO). The value of
earnings from the domestic market is expected
to increase to $10.2 billion in fiscal
2004-05, it said. Significantly higher
IT budget allocation in the government,
PSU segment is likely to account for highest
it spend. BFSI, manufacturing, engineering,
automotive and retail are other sectors
likely to be other verticals that would
be the 'big spenders' in IT, it added.
However, competition from low-cost destinations,
matching the supply of trained manpower
to meet the spiraling demand and redefining
business models to stay ahead in the emerging
IT services landscape are the challenges
the industry should look tide over, it
added.
Courtesy:
The Financial Express, February 10, 2005
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Boeing,
Airbus to Source IT Work from India
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This
seems to be the second wave of outsourcing
jobs to India. In a bid to bring down
production costs, aircraft making biggies,
Boeing and Airbus, are increasingly offshoring
software development and engineering jobs
to Indian IT firms. Boeing on Tuesday
announced a multi-year, multi-million
dollar agreement with HCL Technologies
to develop software for its new 787 Dreamliner.
HCL-T will develop a hosting platform
for the flight test computing system and
provide software services to many of the
787 systems partners, it said. The Chicago-based
Boeing has also signed a strategic deal
with Indian Institute of Science in Bangalore
for research in aerospace materials, structures
and manufacturing technologies.
Courtesy:
The Times of India, February 09, 2005
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Indians
Splurge Like Never Before
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The
current economic boom seems to have resulted
in the traditionally-conservative Indian
consumer losing his inhibitions about
splurging on the good things of life.
Private final consumption expenditure
(PFCE) has risen by 8.3% during '03-04
in comparison with the previous year,
according to the Ministry of Statistics.
This happens to be the highest growth
rate in 23 years. There have only been
two other years since 1950-51 - during
1980-81 and 1958-59 - when growth in PFCE
has been higher than this. However, on
both the occasions, the growth was, to
an extent, a statistical fallacy, since
in the previous year PFCE had actually
declined or shown a negative growth rate.
The PFCE had shown a positive growth rate
during '02-03 at 2.8% as per provisional
estimates. However, this did not deter
the PFCE from growing at a far higher
rate (8.3%) during the '03-04 fiscal.
This brought its value, in absolute terms,
to Rs 9,64,865 crore, up from Rs 8,91,419
crore in '02-03. High PFCE growth rates
are typically associated with economic
booms. However, it does not necessarily
work the other way round - high GDP growth
rates do not necessarily result in high
PFCE growth. This makes the present situation
somewhat unique. In 1994, for instance,
when the economy grew at 7.25%, PFCE grew
by only 4.2%. Similarly in 1989 when economic
growth was at 10.5%, PFCE was growing
by 6.2%.
Courtesy:
The Economic Times, February 09, 2005
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Aircraft
major, Boeing, on Tuesday announced it
has signed HCL Technologies for its 787
Dreamliner (formerly known as the 7E7)
program. Under the agreement, HCL will
provide services in the areas of software
and hardware development, as well as verification
and validation, to Boeing and their Tier
1 systems suppliers for the 787 program.
The 787 integrates diverse leading edge
technologies to deliver an environmentally
preferred solution with hitherto unmatched
efficiency, for medium capacity long-range
aircraft. Commenting on the development,
Shiv Nadar, chairman & CEO, HCL Technologies,
said, "We consider it a great privilege
to be working on the critical aspects
of the Boeing 787 Dreamliner. Our selection
endorses the fact that HCL's inherent
capabilities are robust enough to contribute
effectively to such mission critical systems."
Courtesy:
The Economic Times, February 09, 2005
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Bajaj
Auto Plans Foray into Nigeria to take
on Chinese Companies
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After
giving competitors back home a run for
their money, Bajaj Auto is now planning
to take on the Chinese price warriors
in Nigeria, Africa's largest two-wheeler
market. At around a million units every
year, Nigeria is one of the top ten motorcycle
markets in the world and one of the largest
importers of Chinese motorcycles globally.
The Pune-based two-wheeler maker has just
appointed a local distributor and is firming
up its Nigerian strategy. The company
plans to carry out a market survey in
April, which will be followed by exports
of motorcycles to Nigeria from India.
The first shipment is expected to reach
by June '05. This will be followed by
establishing an assembly unit there to
save on import duty. "Though Nigeria is
a large market, the problem is that we
don't know much about the consumer and
his choice. The survey will help us draw
our product strategy for Nigeria," says
Sanjiv Bajaj, executive director and head
of Bajaj's global operations. In the next
2-3 years, he expects Bajaj to emerge
as a motorcycle brand in the country.
Industry sources says that the Nigerian
market is dominated by low priced motorcycles
and second-hand Japanese motorcycles.
They sell in the price range of $300-500
a piece. Bajaj's cheapest motorcycle in
the domestic market on the other hand
retails for around $600 a piece, while
its largest selling entry bike retails
for approximately $700.
Courtesy:
The Economic Times, February 08, 2005
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IT
Now Employs a Million - Revenue Per Employee
Also on the Rise
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The
IT sector has crossed yet another milestone.
The number of knowledge professionals
employed in the software services and
ITeS sectors has crossed the one-million
mark and is expected to close the 2004-05
financial year with a headcount of 10,45,000
people. But taking more people on board
has not dented the bottomline of the IT
companies. On the contrary, along with
the rising number of employees, the revenue
per employee too has increased during
the period. "IT is clearly a career of
choice. The IT services segment is amongst
the highest paying. Even the Business
Process Outsourcing industry has attractive
salary levels, with a stronger scope for
professional growth compared to other
sectors. Also the extent of training in
technology, cultural skills, global negotiation
skills and opportunity to pursue higher
education while working makes the sector
more attractive," the Nasscom (National
Association of Software and Service Companies)
Vice-President, Mr Sunil Mehta, told Business
Line. With this, the sector has reached
the halfway mark in its pursuit to create
two million direct jobs by 2008 as projected
by the Nasscom-McKinsey report. Moreover,
with Indian software companies now consciously
endeavouring to move up the value chain,
the average revenue per professional in
IT services exports segment is on the
rise. According to Nasscom, the annual
revenue per person in the industry is
estimated to touch about $35,275 during
2004-05, against $34,390 in the previous
year, reflecting a 2.5-per cent increase.
In 2002-03, this figure stood at about
$34,074. "Within IT services, the share
of research and development services is
increasing as well. Multinationals and
Indian companies that are involved in
R&D outsourcing or offshore product development
are rising on an average," he added. Another
factor fuelling the trend is the shift
to a "fixed price" model compared to a
dollar-per-hour model, he added.
Courtesy:
www.thehindubusinessline.com, February
08, 2005
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GDP
Growth Pegged at 6.9 pc for '04-05
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The
Indian economy is poised for another year
of high growth this fiscal overcoming
the hardships of a poor monsoon and global
oil market volatility. In its advance
estimates for the current fiscal, the
Central Statistical Organisation (CSO)
on Monday put the growth of the economy
at 6.9 per cent on top of the 8.5 per
cent growth last fiscal. This near 7 per
cent growth belies most projections, including
those made by RBI, IMF and ADB, which
were in the range of 6-6.5%. Just last
week, IMF had scaled down its projection
to 6.5 per cent from 6.7 per cent made
in September. The strong growth rate would
put India among the fastest growing economies
of the world. India's 8.5 per cent growth
last fiscal was only next to China's 9.5
per cent. The growth comes despite a lacklustre
farm sector performance due to uneven
monsoon rains. It also shows that the
Indian economy has overcome the uncertainties
of the global oil and commodities price
spikes to stay firmly on the growth path.
The Indian economy has been growing at
an average 6 per cent a year in the last
one-and-a-half decade since economic reforms
were launched in the early 90s. The near-7
per cent GDP growth this fiscal, however,
signifies the economy breaking away from
its reliance on weather-dependent farm
sector performance to a large extent.
The growth this fiscal is driven by India's
services sector and the manufacturing
sector moving up towards a double-digit
growth. Services such as trade, hotels,
transport and communication experienced
a boom with a 11.3 per cent growth. Manufacturing
picked up, growing at 8.9 per cent this
fiscal, compared with 6.9 per cent last
fiscal.
Courtesy:
The Times of India, February 08, 2005
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Gail
to Invest Rs 4,500cr in '06
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Indian
gas major, Gail India Ltd, plans to increase
capital spending by around 50 per cent
in the next fiscal to step up exploration
and production as the demand for energy
grows in India. Gail chairman Proshanto
Banerjee told reporters at a news conference
that the company is planning cross-border
pipelines, including from Burma and Iran.
The company is also evaluating a gas block
in north-western Australia. He said, "Gail
may spend Rs 4,500 crores as capital expenditure
in 2005-06 on exploration, new pipelines
and on expanding its petrochemicals business."
"Gas is becoming very important for emerging
economies. In India, only 50 per cent
of identified demand is being met by current
production," Mr Banerjee added. According
to him, India consumed around 2.5 million
tonnes of liquefied natural gas or LNG
in 2004-05 and the consumption is set
to double in 2005-06. In India, natural
gas is considered as an alternative fuel
source to expensive oil. The government
is encouraging companies to undertake
exploration and production at home and
overseas to meet strong demand in the
rapidly-developing economy. Gail dominates
the gas transmission and marketing business
in India with a market share of close
to 90 per cent. Its pipelines run along
5,300 kilometres, carrying 118 million
metric standard cubic metres of gas per
day. Gail, along with South Korea's Daewoo
International Corporation and Kogas, has
discovered gas in Burma's A1 block and
is currently digging wells to start production.
The Burma government is also considering
giving Gail a stake in the adjacent A3
block, and the company is examining ways
to transport the gas to India.
Courtesy:
The Asian Age, February 08, 2005
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Zydus
Files First Investigational New Drug Application
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Zydus
Cadila Healthcare on Monday announced
filing its first INDA (investigational
new drug application) for the new molecular
entity (NME) - ZY H1 with the Drug Controller
General of India (DCGI). The novel agent
for treatment of metabolic disorders has
been designed and developed by Zydus Research
Centre (ZRC), the research wing of Zydus
Cadila. A company statement said 'ZY H1',
which has displayed a unique profile in
pre-clinical studies, has the potential
to correct dyslipidemia, improve insulin
resistance and lower blood glucose in
diabetic conditions. The pre-clinical
studies on ZY H1 indicate that the NME
may be free from the side effects that
are seen with the glitazones, fibrates
and statins, which are currently used
in the treatment of dislipidemia and diabetes,
the company said. NME research is one
of the three focus areas of Zydus research
programme. Under this, the focus has been
on metabolic disorders, which includes
dyslipidemia, diabetes and obesity and
inflammatory disorders. Zydus Research
Centre which was set up in the year '00,
has a team of 230 research scientists.
Apart from NME research, ZRC is also focused
on novel drug delivery systems and discovery
biology research.
Courtesy:
The Economic Times, February 08, 2005
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India's
Doing 'Cleaner' Business than China
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This
is one area in which India is ahead of
China. At least, so say the experts. Carbon
trading, an emission control initiative
that is gaining popularity, is an area
in which India Inc has as many as 54 projects
lined up under the Clean Development Mechanism
(CDM). China has only three. CDM is a
global norm in environmental emission
control and trading under the Kyoto Protocol.
"The corporate sector in India has taken
a strong lead over China in taking up
projects under CDM. The cement sector
has done a good job. It is now the turn
of companies in the aluminium and iron
& steel sector to take the initiative,"
said Axel Michaelowa of Perspectives GmbH,
a German consulting energy firm. Indian
companies can also widen their involvement
by tapping the global market for CDM consultancy
jobs, as it has qualified consultants
and the knowledge base to take up the
mantle, he added. It makes business sense
too, as this sector (if one can call it
that) is estimated grow into a Rs 10,000-crore
market within the next few years, he added.
Brazil and China have marked their presence
in global consultancy. The institutional
framework in India is ready to implement
environment-friendly measures.
Courtesy:
The Economic Times, February 07, 2005
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Indian
Economy Could Exceed China's by 2015
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India's
economic growth could actually exceed
that of China by 2015 and the country
has the potential to deliver the fastest
growth over the next 50 years, Goldman
Sachs, the investment bank, has estimated.
The Indian economy expanded by 8.2 per
cent in 2004, only slightly behind China's
growth of 9.5 per cent and nearly three
times Britain's rate of 2.8 percent, The
Sunday Times reported today, quoting Goldman
Sachs. "Growth in India could actually
exceed that in China by 2015." Dominic
Wilson at Goldman Sachs said: "India has
the potential to deliver the fastest growth
over the next 50 years with an average
rate of more than 5 per cent a year for
the entire period. China's growth is projected
to drop below 5 per cent around 2020."
The bank predicts that India will overtake
Britain in 2022 and Japan in 2032 to become
the third-biggest economy in the world
after China and America. Strong economic
growth is expected to translate into robust
stock-market returns as company profits
increase and foreign investment floods
in, the report said. The Indian stock
market could deliver an average return
of 10 per cent a year over the next 50
years, according to research by Standard
Life Investments. Richard Batty, global
investment strategist at Standard Life,
said: "The balance of economic power in
the world is set to shift dramatically
over the next 50 years, presenting a great
opportunity for investors, particularly
in India and China."
Courtesy:
www.financialexpress.com, February 07,
2005
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India's
Forex Reserves at $129
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India's
foreign exchange reserves soared to a
staggering $129.72 billion in the week
ended Jan 28 on large-scale overseas fund
inflows into the domestic market, said
the Reserve Bank of India (RBI) Saturday.
This represents an increase of $291 million
in the country's foreign exchange pile
over the previous week, according to the
weekly figures issued by the central bank
here. During the week ended Jan 28, the
country's foreign currency assets registered
an increase of $286 million over the previous
week to touch $123.72 billion, said the
RBI statement. The central bank said foreign
currency assets expressed in US dollar
terms include the effect of appreciation
or depreciation of non-US currencies such
as euro, sterling, and yen held in reserves.
During the week ended Jan 21, gold reserves
remained unchanged at $4.58 billion, said
the RBI statement. The country's reserve
position in the International Monetary
Fund, which is included in the total foreign
exchange reserves since April 2, 2004,
in keeping with the international best
practice, rose $5 million to touch $1.41
billion.
Courtesy:
The Times of India, February 07, 2005
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India,
Now Too Big to Overlook; Heads for G7
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An
invitation to India to attend this week's
meeting of the Group of Seven rich nations
underlines the growing influence of an
economy that has become too big and potentially
too influential to ignore. India's participation,
alongside China, Brazil, Russia and South
Africa, will be its first ever in a G7
meeting. The G7 is increasingly interested
in India because the country's economic
clout, from back-office outsourcing to
demand for resources, is growing rapidly,
analysts say. "The Indian economy is not
an economy you can ignore anymore," said
Pronab Sen, economist with the Planning
Commission. The economy, already larger
than Australia, Brazil, Russia, or Sweden,
has grown at an average of 6 per cent
since reforms began in 1991 and is forecast
to expand a further 6.5 to 7.5 per cent
in the current fiscal year, to March 31.
Exports are booming, building up foreign
reserves that global rating agency Standard
& Poor's cited on Wednesday when it raised
its rating on India's foreign currency
debt to just one notch below investment
grade. India, in turn, has a range of
items it wants from the rich world: market
access, free movement of labour and free
movement of services. New Delhi will also
be eyeing diplomatic advantages, advancing
its campaign for recognition as a major
power and especially for a permanent seat
in the U.N. Security Council. "For India,
there has been an aspiration to have a
global profile be it political, economic
or strategic issues," said C. Uday Bhaskar,
head of strategic think-tank Institute
of Defence Studies and Analysis. India,
meanwhile, has become the world's back
office. Its huge but cheap English-speaking
workforce has led hundreds of rich-country
firms to shift operations to India, creating
nearly 830,000 jobs there. "India is a
base for cheap labour and it will be the
youngest nation demographically in a few
years' time," said B.B. Bhattacharya,
director with New Delhi-based independent
think-tank Institute of Economic Growth.
Nearly half of India's billion-plus population
is younger than 25, so the working population
will swell, driving the economy further
ahead. And India, following China, is
developing a powerful appetite for the
world's natural resources. "India has
been one of the largest consumers of oil
but the demand is likely to grow in coming
years," Bhattacharya said. "I still think
our consumption in terms of size is huge
but it is still small in ratio to the
total population. It is bound to increase
in the coming years." "India and other
countries such as China will have more
say in how the G7 guides, shapes and restructures
the world economy." said T.K. Bhaumik,
senior policy adviser with an industry
lobby, Confederation of Indian Industry.
Courtesy:
www.financialexpress.com, February 05,
2005
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Indian
Economy to Grow at 6.5 p.c. - IMF
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The
International Monetary Fund has said the
Indian economy would grow at a `robust'
6.5 per cent but warned that huge fiscal
deficit and public debt were impediments
in sustained growth. "India is on track
for another year of robust growth in 2004-05,''
the IMF said in an annual review of the
Indian economy, noting that due to strong
monsoon, growth had rebounded to 8.5 per
cent in 2003-04, the highest level in
over a decade. However, it warned that
"India's fiscal large deficits and public
debt remain a key constraint on rapid
sustained growth.'' It underlined that
without enhancing tax revenues and reducing
lower-priority spending, it would be difficult
to address the country's large infrastructure
needs. On the brighter side, the IMF report
said, "This year, firms appear to have
embarked on a new investment cycle, underpinned
by strong credit growth.
Courtesy:
The Hindu, February 05, 2005
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SBI
Acquires Mauritius Bank
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State
Bank of India or SBI on Thursday has finalised
with the principal shareholders of the
Indian Ocean International Bank Ltd or
IOIB, Mauritius, for acquisition of over
51 per cent equity of the IOIB along with
the management control therein. Though
the bank has not informed the market on
the other details of the acquisition,
it is believed to be a mid-sized player
in the domestic market, focused towards
retail banking. Until now, the SBI's presence
in Mauritius had been through SBI International
Mauritius, an off-shore bank dealing in
foreign currencies. Repeated attempts
to reach Mr Chandan Bhatacharya, managing
director, SBI were futile. However, SBI
has been keen to enter the domestic banking
arena in Mauritius due to tap funding
and other off balance-sheet business opportunities
in local currency with sectors like tourism,
sugar, textiles and retail. The bank first
announced its intention to make an overseas
acquisition more than a year ago.
Courtesy:
The Asian Age, February 05, 2005
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Will
Indian Tortoise Catch Up Chinese Hare?
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Intoxicated
by the buzz of Shanghai, a visitor is
tempted to conclude that, like the city's
skyscrapers, China's economy will keep
growing to the sky. By contrast, teeming
Bombay more readily conjures up India's
faded past than a glorious tomorrow. Yet
as the finance ministers of Asia's two
billion-strong giants attend this weekend's
Group of Seven meeting for the first time,
a number of economists are making the
case that India can boast better long-term
prospects than its neighbour. In the early
1980s, India and China both churned out
output per head of about $500 a year.
Today, China is more than twice as rich,
with gross national income of $1,100 in
2003 dwarfing India's figure of $530,
according to the World Bank. While India
notched up average annual GDP growth of
5.9 percent from 1993-2003, China raced
ahead at a 9.0 percent clip. But a more
favourable demographic profile, a stronger
capacity for technological innovation
and Western-style democratic institutions
provide the potential for India to raise
its game and catch up with its neighbour.
Unlike China, India has spawned a number
of world-class firms with a strong innovative
capacity underpinned by enforceable property
rights and an independent, if lumbering,
judiciary. "It has a political culture
and civic society that is a lot more conducive
to the development of technology and strong
domestic global champions," Dwor-Frecaut
said. Daniel Lian of Morgan Stanley in
Singapore agreed that the protection India
affords to intellectual property rights
would be crucial in luring Western capital.
Allied to low wages, that could make it
a better bargain than China for global
investors. India's democracy and Western-leaning
institutions are also attractive for the
West, Lian said in a report. Fast-expanding
China, by contrast, is viewed as a rival.
"If the West sees India as a natural strategic
partner and views China as a geopolitical
contender, then India could assume a much
bigger role in this Pacific Century as
it can better leverage capital and technology
from the West and pursue a higher value-added
development model that could allow it
to eventually outgrow China," Lian said.
Indeed, in its GDP projections to 2050,
Goldman Sachs expects India to overtake
China in the growth race as soon as the
2011-2020 decade and to steadily widen
its lead thereafter.
Courtesy:
www.financialexpress.com, February 05,
2005
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Germany
Knocks on India's Doors
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After
the Indian software industry and the ITES
sector created waves in Germany, the mid-size
German companies are planning to outsource
products from India. The trade, which
is at a negligible stage, is likely to
pick up. Mr Gerd Kerkhoff, chief executive
officer of Kerkhoff Consulting told The
Asian Age that the company is already
in negotiations with some of the big Indian
companies as well as the smaller manufacturers
to outsource products for his clients.
"Of 15 big clients, 12 have shown an interest
in getting their products outsourced from
India," he said. The company is primarily
focusing on getting products from the
Indian manufacturing sector. "We don't
focus on the business process outsourcing
market. The revenue contribution from
the BPO industry is just 10 per cent of
our turnover and this will continue even
in India," Mr Kerkhoff said. The pacemakers
responsible for the growth of Indian exports
to Germany were not the traditional Indian
products such as textiles, leather goods
and foods, but engineering products of
higher value.
Courtesy:
The Asian Age, February 02, 2005
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'India
can Lead the World in the Era of Globalisation'
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Innovation
is the key word in the present day economy
and conditions are right for India to
lead innovation revolution, said professor
of business administration and strategy
at Michigan University, Dr C.K. Prahalad,
on Monday. He was speaking on "Learning
to Lead" at IIMA. Dr Prahalad said it
is an old concept that the West will innovate
and India will adapt itself to the innovations.
In the times of deregulation and globalisation,
India has a lot to offer that the West
can emulate. The three basic forces that
drive the world are the relations between
the firms and the consumers, the solution
to the problem of poverty and the global
restructuring of the industries. As to
the first, Dr Prahalad said now the consumers
have become as important as the businesses
as they too play an important role in
decision making. For poverty alleviation,
he said it is more credible to give a
chance to grow to poor countries rather
than give them aid, though this is a highly
debatable matter. He said globalisation
movement will change the world and India
can lead the pack. Giving example of hospitality
sector, he said India is a world leader
as hotels in India provide world class
facilities for as less as Rs 1,000, which
would be grossly overpriced elsewhere.
Talking about adult education, he lauded
India's innovative programme that teaches
people to read in their mother tongue
in just two to three hours. Mr Prahalad
said the unique package would help a number
of literacy programmes in India as well
as abroad.
Courtesy:
The Asian Age, February 02, 2005
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SAP
says India can be Among its Top 7 Markets
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SAP,
the world's largest provider of ERP solutions,
today said that India has the potential
to emerge among the top seven countries
in the world in the next five to ten years
in terms of contribution to its global
revenues. With presence in all the major
markets in the world, today the Indian
operation of SAP appears only in the Top
15 list. SAP's president, global field
operations & member of the executive board,
Leo Apotheker, said, a vision document
and roadmap titled India-300 has been
developed to achieve this target. He however
added that the US, Germany and UK are
quite likely to remain intact in the first
three positions five years from now. He
was speaking to select media representatives
from the Asia Pacific region at the annual
FKOM (Field Kick Off Meeting) 2005. FKOM
is SAP's biggest annual event in the Asia
Pacific region, where the top executives
of the company meet to review the previous
year and finalise the roadmap for the
year ahead. The FKOM 2005, according to
SAP executive saw a record 1300 participants
this year, including representation from
a large number of partners like Infosys,
Siemens Information Systems Ltd and other
large IT players in the region. The significant
part of the SAP's announcement is that
while China is already in the top 10 list,
it would move to the top 7 list in the
next five year time frame, meaning the
company's business in India would grow
at a much faster rate than that of China.
Apotheker, however, refused to discuss
the details of the India300 roadmap 'for
competitive reasons'. SAP Asia Pacificİs
president and CEO, Hans-Peter Klaey said
that the roadmap was an acceleration plan
for its business in India, broadly covering
the strategies, placement of human resources
and investments planned in the country.
Courtesy:
The Business Standard, February 01, 2005
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India
Inc Third Quarter a Spectacular Performance
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As
India Inc ended the third quarter with
a spectacular performance of 140 firms
posting a profit growth of 200%, Infosys
and Reliance figured among the global
strategic partners contributing their
expertise and resources to the organisation
of the 2005 Annual Meeting of the World
Economic Forum.
Other
stories re-iterating the positive India
Inc developments are:
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Automobile exports grew to a healthy
32.7% growth in the nine months of this
fiscal with foreign shipments clocking
4,53,591 units.
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The Surat Special Economic Zone (SurSEZ)
has achieved US $ 253 million worth
exports in the current financial year
ended December 2004.
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Mirc Electronics - the second largest
Indian manufacturer of colour televisions-
has initiated a deal with Wal-Mart for
putting made-in-India televisions on
the shelves of the largest retailer
in the world. In our special this week,
Mr. T.K. Bhaumik, Senior Adviser - CII
explains how the annual budget of the
Indian government is no longer only
about balancing of revenue and expenditure,
resource mobilisation and expenditure
allocations, but more about how the
government is proposing to boost income
and investment.
Courtesy:
www.ibef.org, February 01, 2005
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Indian
Oil Corp Wins Oil Block in Libya
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IndianOil
Corp and its partner Oil India Ltd have
won an oil block in Libya in the first
ever joint foray in oil and gas exploration
overseas. IOC-OIL won onshore Block-086
in the highly prospective Sirte basin,
officials in IOC said. The two firms had
last month forged an alliance for joint
venture into oil and gas exploration and
production in other countries. Officials
said under the conditions of the licence,
IOC-OIL will get 18.4 per cent share of
any future production in the block, with
the remaining 81.6 per cent going to Libya's
national oil company. If oil is proven
in the licence areas, Libya, which is
a member of the Organisation of Petroleum
Exporting Countries (OPEC), will fund
half of the exploration and development
costs. Block-086 measures 7087 sq kms
and IOC-OIL consortium, which gave no
signing bonus, had bid 18.4 per cent of
production towards recovery of cost with
the balance oil being committed to the
government of Libya. OIL will be the operator
of the block, which the IOC-OIL consortium
won in the first offering of oil blocks
by Libya after lifting of US sanctions.
Three giant US oil companies won 11 of
the 15 Libyan oil exploration and production
sharing agreements contested by 56 international
companies.
Courtesy:
Hindustan Times, February 01, 2005
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NTPC
Raises Capacity Expansion Target
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State-run
National Thermal Power Corporation Ltd,
which produces a fifth of India's total
electricity output, has decided to raise
its capacity by nearly 75 per cent to
feed India's growing economy. NTPC, which
has an installed capacity of 22,749 megawatts,
plans to add 17,000 megawatts between
2008-2013, higher than the 11,558 megawatts
it had earlier planned, the company said
in a notice to the Bombay Stock Exchange
on Monday. It did not give details of
cost, or how it would finance the expansion.
But it said it had lowered its capacity
addition for the current five-year period
to 9,160 MW from 9,370 planned earlier.
The company had raised $1.2 billion in
October last year through an initial public
offering of a 10.5 per cent stake. Last
week, it announced plans to borrow Rs
10 billion from the country's top insurer,
state-owned Life Insurance Corp, for meeting
capital expenditure. With installed capacity
of 112,058 MW as of March 2004, India
faced an energy shortfall of seven per
cent last year, and demand, among the
lowest in the world on a per capita basis,
is seen growing 10-12 per cent annually
in years to come. India's economy, Asia's
fourth-largest, is expected to expand
by at least six-6.5 per cent in the current
year ending March 2005 after it grew 8.5
per cent last year, which was the fastest
in 15 years.
Courtesy:
Hindustan Times, February 01, 2005
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