• India Top FDI Destination on Higher RoI: KPMG
• India Will Dominate World Pharma Market Soon
• India Inc is on a Dream Run
• Indian Begins Road Exports to Pak
• India Inc Bullish: McKinsey
• LN Mittal Teams up With ONGC to Make Big Global Acquisitions
• Oberoi Rajvilas is World's 3rd Best Hotel
• Billion Cell Sales a yr by 2009
• After BPO, India Moving Towards KPO Regime
• Fortune Global Ranking For ONGC
• Indian IT Industry Grows to $28.5bn
• Manufacturing Sector Registers 11.5% Growth
• India's Pharma Mkt Ranks 13th in The World
• 'TCS Could be a Major Force in China'
• Biotech Booms $5 bn by 2010
• Indian Inc on a Prowl For Global Cos
• India's The Hottest Retail Spot
• India's IT Revolution to Touch US $65 bn by '09: IDC
• Rail Europe Enters Into Indian Market
• India Ranks 4th on Global Rich List
• Fortune 500 Firms Simply Love India
• IITs, IIMs in Expansion Mode
• 'Indian Firms Going Global With Overseas M&A'
• VSNL Completes Acquisition of US Firm
• India, Inc Looks Beyond National Borders

• Economy to Grow at 7%: Retuers Poll
• FDI in 2005-06 Pegged at US $8 Billion
• Xerox India Bags International Safety Awards
• 'India on its Way to Becoming IT, Manufacturing of The World'
• VSNL Acquires Teleglobe For $239m
• India to be a Tech Hot Spot by '15
• 'Average Salary Rise in India The Highest in India'
• India. Inc Plays God To Global Losers
• FMCG to See 50% Growth by '10
• Over 2.5bbl of Oil Reserve in Rajesthan: Cairn
• US Firm's Big Offer For U.P.
• 'Made in India' Sexier Than Phoren Tags
• 'India Will Occupy Top Slot in IT Services by 2020'
• India's Share Likely to Double in Global IT Market
• India Becomes Investment Hotspot
• Boom Time: Indian IT Firms on a Rampage
• FDI Rises in 2004-05 For The First Time in 3 Years
• India at The Helm of International Pharmaceutical Body
• NRIs in US Earn More Than Natives
• Desi Companies Beat Global Peers in M&A
• Forget BPOs, Desi Docs Are in Spotlight Now
• Foreign Hospital Chain Claims to be First to Set Foot
• India Becomes a US $650 bn Economy

India has emerged as the top foreign direct investment (FDI) destination on the basis of higher returns on investment (RoI) that foreign investors earn in the country compared to the other emerging markets like China, Brazil and Mexico, a survey by the global consultancy firm, KPMG, has revealed. The major bottleneck, however, is the infrastructure, which is hindering larger FDI inflow into India when compared to countries like China. "India may need to make more rapid improvements in its business infrastructure if it is to continue to attract foreign investment in the face of growing competition from China, which it outperforms in many areas, including return on investment," KPMG said in its study report, `Manufacturing in India'. KPMG has noted that India scores over other Asian nations. "Every dollar spent in India has a better return than is the case with other emerging markets that have a more favourable environment," the report said. According to the KPMG India Managing Director, Ian Gomes, the study has noted that though improvements are being made in India's infrastructure, they are not fast enough. The report is also critical of the combined fiscal deficit of the Centre and the States at about ten per cent of the GDP and has noted that this severely limits spending on infrastructure improvement. On the plus side, the report said that India was going to gain from its large pool of young working population as compared to that in China.On the negative side, it said there were 17 million households still classed as "destitutes" and 35 per cent of the population was still living on less than one dollar per day. While appreciating the country's reform process, KPMG said reform in areas like labour regulation, business, bureaucracy and taxation needed to keep pace with the rapid rate of growth.

Courtesy: The Hindu, July 29, 2005

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India's economy is expected to expand at a faster clip than previously forecast in the fiscal year to March 2006, as companies step up output to meet robust demand as rural incomes are boosted by monsoon rains. The median forecast of a Reuters quarterly poll of 11 economists, conducted after China's Yuan revaluation, showed gross domestic product (GDP) in Asia's third-largest economy would expand 7 per cent in 2005/06, higher than 6.6 per cent forecast in May. India's farm-dependent economy grew 6.9 per cent last year, after a blistering 8.5 per cent expansion in 2003/04, the fastest in nearly 15 years, as the best rainfall in a decade boosted harvests and rural income. India's industrial output, which accounts for a quarter of GDP, surged 10.8 per cent in the year through May as the country made vehicles, televisions and machinery at a hot pace. The four-month monsoon, which got off to a slow start in June but has since gathered pace, is vital for India's poorly irrigated farms as erratic rains can hurt crops and income in rural areas where two-thirds of the billion-plus population live. Many analysts said the rupee would gain against the dollar in 2005 after China revalued its Yuan and on surging foreign investment in Indian shares, which has exceeded $6 billion so far this year. In 2004, the rupee gained nearly 5 per cent helped by record overseas portfolio inflows of $8.5 billion. But India's central bank, concerned about a widening trade deficit, is expected to curb rupee strength to ensure exports stay competitive. The central bank intervened to pull the rupee back from a six-year peak last week. The poll forecast the rupee would rise to a median 43.3 per dollar by December and 43 by the middle of 2006 from 43.45 on Thursday. Costlier oil, the country's biggest import, and other purchases to meet robust demand will continue to boost India's trade deficit.

Courtesy: www.sify.com, July 29, 2005

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The government today said the foreign direct investment flows into India will go up by more than 100 per cent in 2005-06 to cross $ 8 billion. "The FDI inflows would surpass the eight billion mark in 2005-06 as against 3.75 in 2004-05," Commerce and Industry Minister Kamal Nath said at a press conference yesterday. He said in the first two months of this fiscal FDI has gone up by a whopping 117 per cent year-on-year to $ 912 million from $ 421 million in April-May 2004.In 2004-05, FDI had grown by 42 per cent to $ 3.75 billion.Since August 1991 the cumulative FDI approvals stand at $ 67.77 billion while the inflows stand at $ 34.26 billion.Most of the FDI in to India has been routed through Mauritius followed by US, Netherlands, Japan and UK. While $ 9.7 billion in FDI came from Mauritius,$ 4.7 billion came from the US, $ 1.9 billion from the Netherlands, $ 1.9 billion from Japan and $ 1,7 billion from the UK. Mauritius accounted for 36 per cent of the FDI since 1991 US for 17 per cent, Netherlands and Japan for 7.0 per cent each and the UK six per cent. As much as 15 per cent of FDI has flowed into electrical and electronics ($ 4.1 billion) followed by transportation (11 per cent or $ 3.0 billion), telecom (10 per cent or $ 2.7 billion), services (9.3 per cent or $ 2.6 billion) and fuels and power (9.0 per cent or $ 2.5 billion).

Courtesy: Business Standard: July 28, 2005

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Xerox India on Wednesday announced that it has received the International Safety Award for its Rampur plant from the British Safety Council for the sixth year in a row. The award was received by Roland Hoogendam, Customer Service Director, Xerox International Group on behalf of Xerox India, at a recently held ceremony in London, says a release.

Courtesy: The Hindu, July 28, 2005

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India is all set to become one of the top ten global pharmaceutical markets. With a rapidly growing population and tax concessions for overseas investors, India will dominate the world pharma market in the coming years, according to a latest report by Pricewaterhouse Coopers. A slump in the traditional pharmaceutical markets of North America, European Union and Japan will also aid growth in India. Already a growing number of foreign multinationals have been attracted to India. Tax holidays for companies based in underdeveloped areas and a great potential for sourcing of pharma ingredients have also been a big lure. Relaxing of pricing controls in India within the last ten years coupled with strong manufacturing expertise provide an attractive proposition for big pharma companies. The US Food and Drug Administration has already approved 60 manufacturing sites in India. It is more than any other country outside the US, said Thomas Mathew, pharmaceutical leader, Pricewaterhouse Coopers. "India's native manufacturers pose a great threat to western generic companies. It currently produces 20% of the world's generics,"he added.

Courtesy: The Financial Express: July 27, 2005

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INDIA is well on its way to become the IT and manufacturing kingdom of the world, said the Japanese Ambassador to India, Mr Yasukuni Enoki, while inaugurating the `Succeeding in Japan' manufacturing workshop, organised jointly by the Confederation of Indian Industry and India Japan Initiative here on Tuesday. Mr Enoki said that India and Japan could complement each other, as both the countries have lot in common. He said that India was once regarded as a manufacturing powerhouse, but closed economic policies of the past had led to the sector under-performing. However, the economic liberalisation of the 1990s had led to a resurgent manufacturing sector and the economy as a whole. The workshop was attended by Mr Vikram Kirloskar, Chairman of Kirloskar Systems Ltd; Mr Munakata, Managing Director of Mitsubishi Corporation India Pvt Ltd; Mr Kiomichi Ito of Toyota Kirloskar Auto Parts; Mr Katumi Nomoto Adviser to Anest Iwata Corporation, Japan, and representatives from Hero Honda and Maruti Suzuki. Mr Vikram Kirloskar said on the occasion that "The Indian manufacturing industry, which had a slow start in 2002, is now witnessing a substantial boost in manufacturing exports, outsourcing contracts and new investments. India's manufacturing sector is reviving with soaring profits. "Today, manufacturing perhaps is one of the fastest growing sectors in India with a bulk of the inflow coming from a large number of Japanese companies setting base in India." He further added, "We feel that the India Japan Initiative would leverage the vast knowledge, experience, relationships and affinities accumulated through past interaction, to pave the way for a sustainable, long term and fundamentally sound relationship for a common future in the globalised world." The workshop sought to identify and understand world-class manufacturing excellence by providing an insight into Japanese production principles and processes, the cultural context to adapting technology processes and practices and the key tenets for successful partnerships.

Courtesy: www.thehindubusinessline.com, July 27, 2005

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New Delhi: India Inc's dream run continued with a clutch of blue chip companies reporting strong results for the April-June 2005 quarter. Bharti Tele-Ventures reported a 70 per cent jump in net profit on a consolidated basis at Rs 510 crore (Rs 5.1 billion) for the quarter ended June 2005, compared with Rs 296 crore (Rs 2.96 billion) during the corresponding period last year, as per the International Financial Reporting Standards. This is the first time the company reported a net profit of over Rs 500 crore. The Mukesh Ambani-controlled Indian Petrochemicals Corporation Ltd reported a rise of 83 per cent in net profit for the quarter to Rs 225 crore (Rs 2.25 billion). The company registered a turnover of Rs 2,266 crore (Rs 22.66 billion) for the quarter ended June 2005, up nine per cent from Rs 2,086 crore (Rs 20.86 billion) for the same quarter of the previous financial year. The company said the quarter saw a decline in international prices of olefins, polymer as well as fibre-intermediate on the back of weaker crude oil prices compared with the trailing quarter. Hyderabad-based Dr Reddy's Laboratories Ltd posted a net profit of Rs 63.34 crore (Rs 633.4 million) for the quarter ended June 30, 2005, which was 104.7 per cent higher than the net profit of Rs 30.94 crore (Rs 309.4 million) reported during the same quarter of the previous year. Truck manufacturer Ashok Leyland reported a 101.5 per cent rise in net profit from Rs 31.94 crore (RS 319.4 million) in April-June 2004 to Rs 64.35 crore (Rs 643.5 million) for April-June 2005. The company's net sales improved 29.5 per cent from Rs 821.19 crore (Rs 8.21 billion) to Rs 1063.23 crore (Rs 10.63 billion) during the period.

Courtesy: Rediff.com: July 27, 2005

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Videsh Sanchar Nigam (VSNL) is acquiring Teleglobe International Holdings, a provider of wholesale voice, data, internet protocal and mobile signalling services in a $239m deal. The acquisition value includes the price of $4.5 per share payable to shareholders of Teleglobe and the assumed debt. The acquisition will be carried out through the amalgamation of Teleglobe with the company's subsidiary in Bermuda. It is subject to the approval of Teleglobe's shareholders and government approvals in various countries. The deal is expected to be completed within two months. Teleglobe has more than 1,400 wholesale customers and carries over 13bn minutes of voice traffic globally. The acquisition will give VSNL access to a network that reaches more than 240 countries and territories with voice, data and signalling capabilities and ownership interests or capacity in more than 80 sub-sea and terrestrial cables. VSNL will also have access to more than 200 direct and bilateral agreements with leading voice carriers, many of which are the incumbent carriers in their countries or large international wireless service providers. Teleglobe has its headquarters in Hamilton, Bermuda, with a large operating centre in Montreal, Canada. Standard Chartered Bank acted as the exclusive financial advisor to VSNL for the transaction. Kelley Drye and Warren served as counsel to the company. Morgan Stanley advised Teleglobe. The VSNL scrip closed at Rs 388.80 on the BSE today after a high of Rs 397.50 and a low of Rs 366.25. The share price was Rs 157.10 on August 16, '04. Teleglobe had filed for bankruptcy in May '02. It became a public company trading on the Nasdaq under the symbol TLGB with the acquisition of voice-over IP network leader ITXC Corp on June 1, '04. It is currently owned by Cerebus Capital. According to the Teleglobe website, the first quarter '05 revenue was $255.3m against $280.2m in Q4 of '04 and $214.5m in the first quarter of '04. The net loss for Q1 was $8.4m versus $9.2m in Q4 of '04 and net income of $2.5m in the first quarter of '04. Indian companies have been acquiring assets of foreign telecom companies that had been in distress. Earlier, VSNL had purchased Tyco for Rs 585 crore (or $130m) in an all-cash deal. Reliance Industries had bought the US-based FLAG Telecom in January for $211m.

Courtesy: The Economic Times, July 26, 2005

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India on Monday began direct exports by the road route to Pakistan for the first time in more than half a century. The very first Indian consignment, two trucks laden with fresh garlic, crossed the international border at Wagah, near Amritsar, on Monday evening. Exports of fresh vegetables and livestock have been opened following a decision by Pakistan's federal government on May 9. As part of this, private traders were allowed import of fresh garlic, onions, potatoes, tomatoes and livestock as a measure to meet local demand and control rising prices. The move has been greeted with considerable enthusiasm by Indian exporters, who have for long been demanding the opening of the India-Pakistan border for trade. Amritsar-based exporter Rajdip Uppal said, "There is huge potential for mutual trade between the two nuclear neighbours." Mr Uppal's company, Narayan Exporters, already has firm orders for Pakistan for five hundred tonnes of potatoes, three hundred tonnes of fresh garlic and 20,000 buffaloes and goats. According to Mr Uppal, "This is the first time since the Partition of India in 1947 that direct trade has been allowed." He described Monday's first crossing of Indian goods into Pakistan by road as "historic". The Amritsar exporter, however, pointed out that Pakistan had yet not accorded India most-favoured nation status. He said this would be essential to fully exploit the potential for trade. Exporters said the present list of fresh vegetables and livestock must be enlarged for the mutual benefit of producers, manufacturers and traders in both nations.

Courtesy: The Asian Age, July 26, 2005

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Indian business executives are the most positive in the world about future prospects in the next six months even though confidence has dipped compared to last quarter, reports the latest McKinsey survey on global business confidence. In a tough global economy, with increasing oil prices and rising protectionist sentiment in the US and Europe that could lead to lost exports, confidence of top level managers around the world has fallen dramatically since March, the report says. Among individual industries, the IT and telecom sector remains the most bullish, though they were less confident a quarter ago due to consolidation and increasing competition. Around 42% of the respondents said that hiring would increase in the next six months, compared to 29% in banking and financial services and 24% heavy industry. Europeans were the most pessimistic, with 50% expecting the economic situation to worsen in the next six months due to political turmoil in the European Union. The McKinsey business confidence survey is conducted every quarter and this edition polled 7,800 executives from 132 countries.

Courtesy: The Financial Express, July 25, 2005

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This could well turn out to be India's energy blockbuster. Global steel tycoon LN Mittal is joining hands with petro biggie ONGC to float an energy consortium for overseas acquisitions. The final agreement on the consortium is expected to be signed shortly. While this signals the beginning of India's highest profit-making company, the $14bn ONGC group, moving into the big league, for the world's largest steelmaker - the $22bn LNM group - it's a move from steel to a whole new world of oil and gas. The joint consortium will seek to acquire overseas equity in oil and energy-related businesses like energy trading and shipping. The details of the deal, which is currently a hush-hush matter, are currently being worked out between the two companies before the final deal is signed. The joint venture consortium, expected to be registered in a EU country, will seek to concentrate primarily in countries where the LNM group has established its presence. Mittal Steel, the flagship company of the LNM group, has steel-making facilities in 14 countries and sales and marketing offices in 11 more. Mittal Steel has operations in Kazakhstan, South Africa and Algeria, apart from the US and Europe. It has also agreed to acquire a 37% holding in Hunan Valin Steel Tube and Wire Co in China. For instance, the presence of the LNM group in oil and gas-rich countries like Kazakhstan could help ONGC to expand its oil and gas interests in central Asia. According to sources, "The idea is to build on each other's strengths. The LNM group is a dominant player in many markets where ONGC is seeking to acquire equity in oil. Partnering an established company like Mittal Steel in these markets could give ONGC the added advantage." For the Mittal group, which has capitalised on the steel boom, it is now time to move on to yet another boom commodity. Most analysts believe that the spike in oil prices in recent times only reinforces the trend of high crude prices in the coming years. Most oil-producing companies worldwide have raked in whopping profits, thanks to the sustained rise in crude oil prices. Back home, ONGC recorded its highest profit in '04-05, crossing the Rs 12,000-crore mark. The new consortium will need necessary clearances from various government departments before it can become fully operational, sources said.

Courtesy: The Economic Times, July 22, 2005

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India may be the next powerhouse in science and technology, in the not too distant future, about 10 years from now. Science and technology will regain its ancient glory in the country which invented the concept of zero, according to a study conducted by brokerage CLSA. The first visible sign of India regaining its past glory is the over 100 R&D facilities already set up by the multi-national companies operating in India. This in fact is symptomatic of a reversal of the "brain drain" syndrome, to a situation in which the best brains want to remain or return to India. In this situation India gains the brains rather than losing them to countries with better facilities to offer. This is because the opportunities which lured these talents abroad, are now available in India, in both the public and private sector. We have now over 200 national laboratories, while the manufacturing sector boasts of another 1,300 R&D units. By '15, India will have about 20m students enrolled in higher learning, with 1.4m engineering students, 60,000 doctors and 50,000 PhDs.

Courtesy: The Economic Times, July 22, 2005

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INDIA had the maximum average salary increase of around 10 per cent in Asia-Pacific in 2005, according to a study done by Watson Wyatt Asia Pacific, which provides services in the areas of human capital. The Indian business process industry had the maximum average salary increase of around 15 per cent, followed by high-tech, engineering and logistics and shipping, Mr Greg Sargeaunt, Managing Consultant, Data Management Centre, Hong Kong, Watson Wyatt, said. Drawing a parallel between India and China, two of the fastest growing markets in Asia-Pacific, Mr Sargeaunt said compensation levels in China were lower than India. The Chinese had an average increase of 6-8 per cent, he said at Summit HR 2005, a two-day conference organised by the National Association of Software and Service Companies. Soon the operational cost in Beijing and Shanghai in China will be as much as in Hong Kong. Every week around 1,000 new companies come up in Shanghai and an equal number of them close down in a week. This is because of labour movement, he said. According to Mr Sargeaunt, in India, the compensation level has been cited as the number one reason for employees leaving their jobs. Globally, companies are putting a strong emphasis on profitability and demand on employees to perform at higher levels would continue to grow, he said. Prof Bala V. Balachandran, J.L. Kellogg Distinguished Professor of Accounting Information and Management, Kellogg Graduate School of Management, advised companies to adopt his 4-Ms - Measure (both revenue and cost correctly), Monitor (movement of both revenue and cost), Manage (for action plans, yield management, thru-put management and activity-based management) and Maximise profitability using the three. In his keynote address at the summit, Prof Balachandran said companies should focus on product innovation and excellence, operational excellence and customer intimacy to achieve and sustain leadership position.

Courtesy: www.thehindubusinessline.com, July 21, 2005

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India, Inc. is on a global turnaround spree. After Indian corporate execs proving their managerial mettle on the global platform its the turn of Indian companies to do the same. With few successful cases of turning around loss-making operations around the world now a whole host of Indian companies are going ahead buying global losers, confident of making them a winning proposition. Some of the prominent deals where Indian companies have picked up loss-making entities in the first half of 2005 include: Crompton Greaves acquiring Pauwels of Belgium, AV Birla Group snapping up a Canadian pulp mill, Bharat Forge buying out US-based Federal Forge, Tatas have bought out Four Season's Pierre hotel, New York and Dhoots have bought out Thomson's picture tube business as well as the loss making Indian operations of Electrolux. With bigger industrial assets coming under Indian hands it is now to be seen how India Inc manages the high labour and manufacturing costs abroad, which has been troubling companies abroad. In the past some Indian entities have had a successful track record of turning around sick companies in the west. While L N Mittal is the most obvious example, there are others like Mumbai based pharma major Wockhardt who acquired UK based Wallis Laboratory in 1998 and turned it around the following year. Wockhardt also turned around German company Esparma within months of acquiring it. The growing confidence of Indian companies is visible in the fact that now Wockhardt is now believed to be eyeing its fourth acquisition in Europe.

Courtesy: The Economic Times, July 21, 2005

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The Oberoi Rajvilas, Jaipur has been adjudged as the 3 rd best hotel in the world by readers of travel magazine 'Travel & Leisure', next only to the Four Seasons Resort, Bali and Singita Private Game Reserve, South Africa. The Oberoi Amarvilas, Agra, has ranked amongst the top ten hotels in Asia (ranked 8 th Best in Asia and ranked 22 nd amongst the world's best). The two 'Oberoi' resorts are the only hotels from India to be listed in the survey that ranks the Top 100 hotels in the world. The Oberoi Rajvilas achieved a score of 94.00 out of 100 and was rated on several criteria including rooms/facilities, location, service, restaurants/food and value. The Oberoi Amarvilas achieved a score of 90.11. "I am very pleased with the recognition that this ranking has accorded Oberoi Hotels and Resorts," P R S Oberoi, Chairman, The Oberoi Group, said on the occasion.

Courtesy: The Economic Times, July 20, 2005

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Due to an expected excessive penetration in to the rural and semi-urban the Fast Moving Consumer Goods is expected to grow by almost 50 per cent by 2010. According to industry chamber Assocham's report, FMCG's market size is likely to double from the present level of Rs 48,000 crores to Rs 100,000 crores. However, the study cautions manufacturers about the pressure on their margins due to cut-throat competition to cater to the growing demand. According to the study, "FMCG will be witnessing more than 50 per cent of its growth in rural and semi-urban segments by 2010 which in totality is projected to grow at an annual compound growth of 10 per cent to carry forward its market size to Rs 100,000 crores from the present level of Rs 48,000 crores." The growing penchant and insatiable appetite of rural and semi-urban folds for FMCG products would mainly be responsible for this development and manufacturers would have to deepen their concentration for higher sales volumes in such niche areas, says the report. In rural and semi-urban areas, FMCG market penetration was currently less than one per cent, it said, noting that with 128 million households, the rural population was nearly three times the size of urban market. However, it said the rural market may be alluring but was not free of problems like low per capita disposable income (which is half the urban level), large number of daily wage earners, acute dependence on weather, seasonal consumption linked to harvests and festivals, poor infrastructure like roads and power, and inaccessibility to conventional advertising media.

Courtesy: The Asian Age, July 20, 2005

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Mobile phone sales will exceed one billion handsets a year by 2009 as they become the most common consumer electronics device with 2.6 billion people using one by then, according to a survey published on Wednesday. Around 1.04 billion cell phones will be sold in 2009, up from an upwardly revised estimate of 779 million this year and 674 million handsets in 2004, research group Gartner said. "The mobile phone is the most prolific consumer device on the planet," said Gartner analyst Ben Wood. By comparison, every year around 200 million PCs and 200 million TVs are being sold. The Asia Pacific region is seen as becoming even more important, with one out of every three mobile phones sold in the area in 2009, up from one in three this year. "China and India alone will account for nearly 200 million units in 2007, with the Indian market surpassing China in 2009 to reach 139 million units," Asia Pacific analyst Ann Liang.

Courtesy: www.financialexpress.com, July 20, 2005

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The Edinburgh-based Cairn Energy Plc has announced that its oilfield in Rajasthan contains over 2.5 billion barrels of oil reserves. In a statement issued today, Cairn said: "We currently estimate the total oil in place, in all 12 existing discoveries to date in the Rajasthan basin, excluding gas, to be in excess of 2.5 billion barrels (bbls)." The company said it was making good progress in its efforts to fast track development of the three largest discoveries to date in the north - Mangala, Bhagyam and Aishwariya. The combined 2P (proved plus probable) oil in place for the Fatehgarh reservoir in these three fields has been independently certified to be 1.64 bbls, the company stated. Cairn estimates the associated reserves based on secondary recovery are at least 500 million barrels. Additional recovery from Mangala and Bhagyam using enhanced oil recovery (EOR) techniques has the potential to add up to a further 150 mmbbls (million barrels) of oil reserves. The combined production target for these three northern fields is currently planned to be between 120,000 and 150,000 barrels of oil a day (bopd), Cairn added. First oil production from Mangala is scheduled for the end of 2007. Mr Bill Gammell, Chief Executive of Cairn, said: "Cairn is now moving rapidly from discovery to production in Rajasthan. As we continue exploration and appraisal, it is very clear that this basin will not only provide substantial oil production and cash flow from the large northern fields but will also provide future growth and re-investment potential for Cairn from other reservoirs and smaller fields, both discovered and yet to be discovered." Regarding the final draft of the field development plans for the Mangala, Aishwariya, Saraswati and Raageshwari fields, the company said it is scheduled for submission in August to its joint venture partner ONGC for a final review, after which they will be submitted to the Government of India for approval. Besides, the front-end engineering design (FEED) for the Mangala field development is largely complete and the selection process for the detailed engineering design contractor is underway. The company added that the declaration of commerciality for the Bhagyam and Shakti discoveries which is the first step before the preparation and submission of the field development plan has been submitted to ONGC for review. "It is planned that the development of these discoveries will be integrated with the development of the Mangala and Aishwariya discoveries,'' the company said. The Government was in the process of appointing its nominee to take delivery of the oil produced from these discoveries.

Courtesy: The Hindu Business Line: July 19, 2005

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After business process outsourcing (BPO), India is now poised to shift to a knowledge process outsourcing (KPO) regime. The research and development (R&D) investment in the country has seen 45% growth during 2002-04 at about $6.8 billion, positioning it as the third most favourable destination for R&D investment, according to a recent study. In addition to 85% of the R&D carried out by the government through its research labs and PSUs, several MNCs have put up R&D centres in India. The Council of Scientific & Industrial Research (CSIR) with 38 labs and 80 polytechnology transfer centres has the largest R&D network in India. There are about 2000 recognised R&D institutes in India. Every year 6000 PhD's come out from the 380 universities. There are 2.5 million graduates which constitute only 2% of the population. All these make it a favourable cost-effective location for research and development. The huge talent pool,low cost and strong research infrastructure attract many MNC to set up R&D centres in India. These R&D drivers in India is beneficial to both developing and developed countries. At present India has favourable government regulations that supports the R&D as India is scheduled to adopt the IP regime formulated by the WTO in 2005. The government is also offering other financial incentives for R&D. The custom duties on clinical trial has been waived. Also, good clinical practice (GCP) guidelines were made mandatory. The government has also amended the Schedule Y of the Drugs & Cosmetics Act allowing parallel phase I clinical trials of candidate drug molecules.

Courtesy: www.financialexpress.com, July 19, 2005

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Boston-based Investment Corporation of International Biotechnology (ICIB) has offered to invest four billion dollars in Uttar Pradesh to set up of a 5,000-acre biotechnology park and bio-pharma campus between the State Capital and Kanpur. The proposed endeavour aims at developing Lucknow as the country's biotech hub and attracting leading companies to set up their research and production facilities at the campus. The ICIB proposal is already under consideration of the Uttar Pradesh Government, Lucknow Biotech Park CEO P K Seth told UNI. ``Foreign companies have shown special inclination for biotech Park in Lucknow. Investors of 40 companies belonging to the US, Canada, Australia and Israel want to conduct business with the biotech park and other institutions here,'' he added. Since Lucknow already boasts of several international-level scientific, medical and management institutions such as NBRI, CDRI, ITRC, SGPGI, CIMAP and IIM-L, it would provide the best input and infrastructure to the biotech proposal of such a large magnitude, claimed Dr Seth.

Courtesy: The Hindu, July 18, 2005

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Oil and Natural Gas Corporation Ltd. (ONGC). Indian's Most Valuable Company has been ranked at 454th in the latest Fortune 500 listing of World's Largest Corporations for the year 2005. The Global 2005 ranking in Fortune 500 is based on 'Turnover' pertaining to fiscal 2004. ONGC becomes India's first upstream major and the fifth Indian Company in the prestigious Fortune Global 2005 ranking, with a revenue of US$ 13.75 Billion, profit of US$ 320 Million and assets worth US$ 19 Billion in fiscal 2004.

Courtesy: The Pioneer, July 16, 2005

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The Indian information technology (IT) industry grew 33% year-on-year in 2004-05 to $28.5 billion with exports growing at 36% to $18.5 billion, according to a survey by technology publication group' Dataquest'. The domestic market grew by a healthy 27% to touch Rs 43,026 crore ($9.9 bn). The growth was better than in 2003-04, when the domestic market grew 24%. "Once again, the domestic industry has shown it can do it with growth in the twenties for the second year running," said Dataquest chief editor Prasanto K Roy. "After a decade of lagging software exports' growth, it's now showing respectable growth, even though it has lost a percentage point in its share of the pie at 35%," he said. Export revenues accounted for two-thirds of the $28.5 billion of Indian IT industry.

Courtesy: www.financialexpress.com, July 16, 2005

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The manufacturing sector has posted a growth of 11.5% in May 2005 over the comparable period in the previous fiscal. According to estimates of Index of Industrial Production (IIP) with base 1993-94 for May 2005, released by the Central Statistical Organisation (CSO), the sector grew by 7.5% in the corresponding period in the previous fiscal. The electricity sector too, saw a higher growth rate of 10.1 % in May, compared with just 3.1 % the year ago period. The mining sector, however, had a fall in the growth rate to 3.7% compared to 5.3% previous year. The overall growth in the general index stood at 9.6%. The IIPs for the mining, manufacturing and electricity sectors for the month of May 2005 were 155.2, 222.7 and 196.7 respectively, an official release said. As per use-based classification, the growth in May 2005 over May 2004 is 8.1 % in basic goods compared to 3% in the previous year, 19.2% in capital goods and 2.3% in intermediate goods as compared to 13% for both in the previous fiscal. Consumer goods have had an overall, growth rate of 18.9%, with consumer durables growing at 19.5% and consumer non-durables at 18.7%. Fourteen of the seventeen 17 two-digit industry groups have shown positive growth in May 2005 over the comparable period in the previous fiscal. Textile products (including apparel) have shown the highest growth of 35.1 %, followed by 15.9% in machinery and equipment other than transport equipment, 14.6% in basic chemicals and chemical products other than petroleum and coal and 14.1% growth in transport equipment and parts. However, three of the two-digit industry groups have decelerated. Growth in Wool, silk and man-made fibre textiles has declined by 6.6%, followed by a dip of 2.7% in both' jute and other vegetable fibre textiles'(except cotton) and 'wood and wood products; furniture and fixtures.'

Courtesy: www.financialexpress.com, July 13, 2005

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The Indian pharmaceutical market is the world's 13th largest in terms of value and the 4th largest in terms of volume. The total market size is Rs. 25,000 crores (Ref: IMS Health) and includes all the pharmaceutical products, fast moving healthcare products and some FMCG products sold through the chemists across the country. While all the formats of retailing have changed, be it apparel retailing, grocery retailing, fuel retailing or jewellery retailing, somehow pharma retailing has not undergone changes. The changes in the next 5 years in this business will be more than what has happened in the past 55 years. Earlier shopping was considered a headache involving running from pillar to post. Now retailing has changed it to leisure and pleasure & it's become more of an outing for the entire family. Pharmacy retailing has seen consolidation world over. 5 pharmacy chains control 40% of the sales in the US. 7 pharmacy chains control more than 60% of the market in UK. A similar situation prevails in most developed nations around the world. In India, there are more than 8 lac independent chemists. With so many chemists there is a demand supply imbalance and as there is almost no differentiation, the shakeout is going to be inevitable. The chemists in India will have to undergo the changes and the trade has to become organized since:

Courtesy: The Economic Times, July 12, 2005

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Despite being a patchwork of cultures, languages and religions, more Indians (74%) feel enough sense of commonality and unity than in the US (69%). In what could possibly see a resurgence of the "Be Indian, Buy Indian" policy, more (77%) Indians prefer to buy products manufactured in their country than respondents in the UK. India and China have become the back office and factories of the world respectively. Also, Indian companies like Infosys and tennis icon Sania Mirza have restored pride in the "Made in India" tag. Pride in products manufactured in India is rising. The first ever ET Euro RSCG Prosumer study showed a marked increase in economic nationalism in both China and India. It is clearly a good time to be in these two countries. There is a new-found confidence and pride in home-grown brands and products. This love for desi goods is not out of nationalistic passion, but comes from a very practical evaluation of the product. It's a pride in your country's achievements due to merit, not just feelings. If what is being offered is attractive and a decent substitute for very expensive imported brands, people will go for the Indian alternative. This is the India of Infosys and Sania Mirza.

Courtesy: The Economic Times, July 12, 2005

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The recent move by India's top software exporter, Tata Consultancy Services, to float an IT services company in China with Microsoft and three Chinese entities is being seen by analysts as an emergence of a major force in the global IT services market. "This venture sounds a warning bell for competitors, including global providers from the United States and Europe," research firm Gartner's India head Partha Iyengar said, adding it also signals an opportunity for companies around the world to leverage global sourcing from China. The Chinese government is backing the new company so that it can emerge as a role model for the fledgling Chinese IT service industry. "The success of this venture and the benefits it could bring for other providers could help propel China into a global sourcing leadership position," he said. "It is a coup for TCS to be selected as the Indian partner, since the Chinese offer the resources and focus to make this venture succeed. TCS also gains an advantage over other Indian companies that are trying to break in to China, thanks to Chinese government sponsorship, Chinese company expertise and Microsoft support for local language software availability for this venture," Iyengar said. With the Chinese government backing, Microsoft and TCS venture could become a dominant force in the Chinese IT services market, AMR Research's Lance Travis said. Iyengar said non-Chinese service providers, especially those looking to provide services in China, should seek similar partnerships with regional governments and service providers. Global sourcing clients looking for China-based services options should have this venture - once operational - at the top of their short lists, he added.

Courtesy: The Economic Times, July 11, 2005

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"India will be well-poised to double its present market share and capture six per cent share of the global pie in services and IT software by 2008-09," according to the findings of a study on `India's cutting edge in services' conducted by the Associated Chambers of Commerce and Industry of India (Assocham). Alongside, India will occupy a leading position in providing services to developed economies of the European Union and other nations by 2020. For, by then, it is estimated that the country will have a surplus of 47 million professionals in the services and IT sector to be gainfully used by the recipient countries, the study has said. The Assocham study also reveals that in the export of services and IT software, India will face competition mainly from the smaller countries such as Pakistan, Bangladesh, Indonesia and Egypt, which it will conveniently take on as Indians will be enjoying a competitive edge in providing knowledge-driven services like IT and research and development (R&D). Releasing the study, the Chamber president, Mahendra K. Sanghi, pointed out that with the increase in offshore penetration and hike in the annual growth rate to 45 per cent from the current 30 per cent in export of IT and IT-enabled services (ITeS), the total exports will exceed $50 billion by 2008-09. Software and services exports, Mr. Sanghi said, touched $17.2 billion in 2004-05 with an annual growth rate of over 30 per cent. From a relatively low share of 10.02 per cent in 1995-96, exports of software services accounted for about 48.9 per cent of the country's total services exports in 2003-04. By 2020, the study has pointed out, most of the developed countries will have problems in finding people in the working age group owing to the decline in birth rates.

Courtesy: The Hindu, July 11, 2005

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India is poised to capture 6% of the global market in services and IT software by 2008-09 against its current share of 3%, according to an Assocham study. The study titled 'India's cutting edge in services', has further said that India will occupy a leading position in providing services to developed economies like the EU and others by 2020. This, the study has said, will be made possible by an estimated 47 million surplus professionals in services and IT who can be gainfully used by recipient countries. On the services and IT software exports, India will have competition only from smaller countries like Pakistan, Bangladesh, Indonesia and Egypt, which it will conveniently take on, as Indians will be enjoying a competitive edge when it comes to providing knowledge-driven services like R&D, the industry body said. It is estimated that with the increase in the offshore penetration and present annual growth rate of 30% in the IT and ITES service exports, their total exports will exceed $50 billion by the year 2008-09. According to Assocham, in next few years, the annual growth rate of IT and services will be over 45%. Software and services exports have reached $17.2 billion for the year 2004-05 and the annual growth rate is well over 30%. From a relatively low share of 10.02% in 1995-96, exports of software services occupied 48.9% of India's total services exports in 2003-04.

Courtesy: www.financialexpress.com, July 11, 2005

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In the beginning, there was Biocon. Now, there are over 280 companies in the biotech sector with six of them generating revenues of above Rs 100 crore. Circa 1978, biotech meant fermentation and enzyme production. In 2005, the $1-billion plus Indian biotech industry consists of new drug discovery, bioinformatics, clinical research, and synthetic chemistry with approximately 230 drugs in the market spanning 13 therapeutic segments. With the new product patent regime in place and a national biotech policy set to be notified soon, the Indian biotech industry is targetting $5 billion in revenues by 2010. "Although it is in a nascent stage, India has the potential to become a strong player in biotechnology. There has been a phenomenal increase in the number of start-ups in the last five years. The world, too, is looking at the Indian biotech industry from a new perspective, especially after the introduction of new patent rules. Pricing pressures, funding challenges and improved regulatory norms are driving global companies to seek increased cross-border partnering in India, says an Ernst & Young report. Moscow-based Shreya Life Science is investing $22.1 million in India. German biotech major MWG Biotech AG has set up an Indian subsidiary to cater to the entire Asia-Pacific region. Indian companies, too, are in an overdrive, forging a plethora of alliances during the past one year with some notable deals being signed between Panacea Biotec and Chiron Vaccines and Biocon with Bristol-Myers Squib. "Cost-effectiveness and Indian talent are the two major factors why MNCs are coming to India," says Varaprasad Reddy, CMD of Shantha Biotechnics. The remarkable growth of the industry, 39% in 2004-05, and its potential has been noticed by states too, especially those which failed to capitalise on the IT boom. At last count, there were over 15 biotech parks proposed to be set up, all promoted by state governments.

Courtesy: www.financialexpress.com, July 11, 2005

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Indian companies are snapping up firms abroad like never before, girded by strong profits and balance sheets, in a bid to diversify out of a buoyant domestic economy. Whether it is in drugs, oil, fertiliser, coal, auto parts, steel or television components, India Inc. is prowling the globe for assets, facing fewer regulatory constraints. After a banner 2004, which saw 60 foreign takeovers by Indian firms worth $1.7 billion, the pace has not let up. According to preliminary data from consultancy India Advisory Partners, there were 40 deals worth $914 million in the first half of 2005. And in the past week alone, there have been a string of small foreign deals across a wide variety of industries to garnish the 240-million-euro takeover of the colour picture tubes business of France's Thomson by Videocon. Amtek Auto Ltd. bought a $34 million auto parts firm in Germany, a Gujarat NRE Coke Ltd. joint venture paid $62 million for Australian coal mines and Jubilant Organosys Ltd. bought a U.S. drug maker for $12 million. "The last two or three years, they've been doing well in the local market," said India Advisory Partners' Kai Taraporevala. "They've built up, not a warchest, but enough cash to go out shopping." Videocon's buy is of comparable size to Tata Steel Ltd.'s takeover of Singapore's NatSteel last year -- India's largest foreign deal after Tata Tea's $432 million buy of Tetley in 2000. There have been no Indian blockbusters, and certainly nothing yet to match notable deals by Chinese companies, including the purchase of IBM's personal computer business last year and now possibly U.S. appliance maker Maytag. Experts say the flurry of foreign activity reflects both a new mindset in corporate India and a more supportive regulatory framework. With foreign currency holdings at record levels, India can be relaxed about money going abroad. But many of the acquisitions are actually funded by foreign debt, meaning it effectively represents investment in Indian companies by international banks. State Bank of India, India's largest bank, is poised to raise $600 million in bonds and state-owned Oil and Natural Gas Corp. (ONGC) is in talks to raise nearly $3 billion abroad. ONGC has held talks to acquire PetroKazakhstan Inc., a $3 billion Canadian firm operating in central Asia, and it was shortlisted by U.S. energy firm Pogo Producing Co. to buy $700 million of oil and gas assets in Thailand. India's top refiner, Indian Oil Corp., was among 13 bidders for a majority of Turkish oil refiner Tupras, and sources say it is considering a purchase of 26 per cent of Singapore Petroleum Co. Ltd. The Tata group, India's number two conglomerate and an Indian corporate trailblazer abroad, is keen to diversify revenue streams, and has looked no further than across the Arabian Sea. Bharat Forge, the world number two in forging, has made clear its ambition to topple ThyssenKrupp from its top spot.

Courtesy: www.financialexpress.com, July 09, 2005

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India's backyard is fast pushing out China's investment showcase. Orissa, Jharkhand and Chhattisgarh are emerging as the biggest investment destinations in the world, leaving behind the current global industrial hotspots like Guangzhou and Shenzhen in China. The three tiny states have already received investment commitments close to $40 billion. More are still pouring in. Sample this: Korean steel major Posco has signed a memorandum of understanding (MoU) for a $12 billion investment in Orissa for setting up a 12 million tonne (mt) steel plant, Essar Group has inked an initial agreement with the Chhattisgarh government for a 3.5-mt steel plant at a cost of a tad below $1 billion. Jindal Steel and Power has struck an MoU with the Jharkhand government for setting up a $2.5-billion steel plant. Industry analysts said it could be the first time that such massive investments in a single sector in a single country could be taking place. In the past, countries like China might have attracted massive investments but they were in various industrial sectors and spread over some time span, they said. The other big-ticket investment proposals in the three states for which in-principle understandings have been reached include Tisco's $2-3 billion plant in Chhattisgarh, Essar Group's $1-billion plant and Jindal Stainless Steel's $1.5-billion investment proposal in Orissa.

Courtesy: The Economic Times, July 09, 2005

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India has displaced Russia to emerge the most attractive destination for international retail expansion, according to management consulting firm AT Kearney's 2005 Global Retail Development Index (GRDI). India's ranking was driven by an improved investment climate given the recent announcements by the government on easing FDI norms in the near future, the report said. The country's retail market totalling $330 billion is vastly underserved and has grown by 10% on average over the past five years. It is also one of the most fragmented retail markets in the world - the combined market share of the top five retailers totals less than 2%. "The message for retailers in India is clear: move now or forego prime locations and market positions that will become saturated quickly," AT Kearney vice president Mike Moriarty said, adding retailers that missed opportunities to capture first-mover advantage in China can make up for it in India. The annual study of retail investment attractiveness among 30 emerging markets across the globe also indicated retailers should pay particular attention to entering these markets early. "Timing has always been crucial in retailing and the time to secure first-mover advantage in India will soon run out," notes the study. Despite advantages, however, AT Kearney cautioned that there are many obstacles global retailers might have to face in India. High taxes, inadequate infrastructure, bureaucratic hurdles and high cost of real estate are some of the challenges that multinationals would have to tackle in the country, it added. A T Kearney anticipated that global retailers such as Wal-Mart, Carrefour, Tesco and Casino will take advantage of the more favourable FDI rules and enter India through partnerships with local retailers. Other retailers such as Marks & Spencer and Benetton Group, which are currently operating through a franchise model, will most likely switch to a hybrid ownership structure. To gear up for competition from overseas, Indian retailers such as Pantaloon, Westside and Big Bazaar will also look to increase scale and enhance logistics and supporting technology, AT Kearney said. India and Russia are followed by Ukraine, China, Slovenia, Latvia, Croatia, Vietnam, Turkey and Slovakia among the top ten destinations for a retail foray. Neighbouring Pakistan was ranked 30th on the list.

Courtesy: www.financialexpress.com, July 09, 2005

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India's top software services companies, led by Tata Consultancy and Infosys Technologies, are set to report their quarterly profits have risen by about a third from a year ago, as they ride an outsourcing boom. Analysts say the bigger software companies may even fare better in the second half of 2005, while smaller firms may still struggle to manage manpower and costs. "TCS, Infosys, Wipro will all do well," said Sandeep Shenoy, a strategist at Pioneer Intermediaries, adding that their business will gain traction as the manpower additions over the past quarters pay off. Despite a backdrop of a rising rupee, inflationary salary levels and a moderate uncertainty on earning expectations, Indian software companies were getting more businesses, Parul Inamdar, analyst at brokerage Prabhudas Liladhar, said. But wage increases from April, an erosion of treasury income and issues unique to each company could keep earnings growth flat against the previous quarter, analysts said. Profit margins are expected to hold steady as new deals come in at higher prices. The fiscal first-quarter earnings season is set to kick off on Monday with mid-sized MphasiS BFL Ltd., followed the next day by Infosys Technologies Ltd., India's second-largest software exporter. The industry expects India's $17.2 billion software and business service exports to grow 30-32 per cent in the year to March 2006, powered by its low-cost, English-speaking workers. Chetan Shah, analyst at Fortis Securities, said new clients were coming in at 10 per cent higher rates. Global rivals such as Accenture and IBM are poaching staff from Indian firms, but Shah said companies like Infosys and Wipro Ltd., India's third-biggest software firm, were training low-cost freshers in large numbers. India's top software exporter, Tata Consultancy Services Ltd., is likely to show a 29 per cent growth from a year ago and 40 per cent from the previous quarter to 6.48 billion rupees after it had posted disappointing earnings in the last quarter. Infosys spooked markets in April with a flat sequential growth forecast as demand slowed from some clients busy complying with new US accounting rules. Analysts said this was a one-off event, and Infosys could spring a positive surprise. Nasdaq-listed Infosys saw a successful conversion of a part of its domestic stock into American Depositary Shares in May to help its shareholders reap the premium it commands in the United States.

Courtesy: www.financialexpress.com, July 09, 2005

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India's booming information technology industry is forecast to grow a compounded 21 per cent over the next five years to touch $65 billion in revenue, global research firm IDC said on Thursday. India has already emerged as a hot destination for software services and global firms are increasing their outsourcing activities in Asia's fourth-largest economy, drawn by its relatively low-cost, English-speaking workforce. IDC estimated the export-oriented sector would have domestic annual revenue of 848.78 billion rupees ($19.5 billion) by 2009, and overseas business would contribute 2,058.8 billion rupees. The industry's total revenue in 2004 stood at $25 billion. Earlier this week, research firm Gartner also unveiled a similar forecast.

Courtesy: The Financial Express: July 08, 2005

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For the first time in three years, 2004-05 saw an increase in foreign direct investment into India touching 5.5 billion dollars, while FDI made by Indian companies doubled to USD 2.5 billion during the last fiscal FICCI has said. However, the FDI flow into India during the last fiscal was still below 6.1 billion dollars received in 2001-02, the FICCI study revealed. FDI, which declined from 6.1 billion dollars in 2001-02 to 5 billion dollars in 2002-03 and further to 4.7 billion dollars in 2003-04, went up by 18.2 per cent to 5.5 billion dollars during 2004-05, the study on Fundamental Shift in External Sector Growth said. Total FDI made by Indian companies went up from 1.3 billion dollars in 2003-04 to 2.5 billion dollars in 2004-05, the study said. This is the highest recorded increase in Indian investments abroad in a single year. With the cumulative FDI of Indian companies standing at just 5.1 billion dollars till 2002-03, the total amount of such investment touched 8.8 billion dollars till 2004-05, according to the study.

Courtesy: The Economic Times: July 08, 2005

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Eyeing the booming outbound Indian tourist market, Rail Europe 4A, a railroad company which sells European rail tickets in Asia, today announced opening of its liaison office in Mumbai and said it plans to ramp up its current customer base of 20,000 by 40 per cent in the next two years. "India is one of the most promising markets and we have opened our liaison office to bring us closer to this crucial market and help us better understand its needs and satisfy its demanding clients," Rail Europe 4A South Asia area manager, Florence Pasquier told reporters here. Rail Europe is a joint venture between French and Swiss National Railways which is in charge of the sales and promotion of European rail tickets and passes in Asia, Australia, Africa and South America. "India's contribution to worldwide sales is three per cent and we serve approximately 20,000 customers annually. With the opening of this front office we plan to increase the number of clients by 40 percent over the next two years," Rail Europe India and South Asia area manager, Gopi Iengar said.

Courtesy: The Economic Times: July 07, 2005

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The International Generic Pharmaceutical Alliance (IGPA) now has an Indian at the helm. Mr Dilip G. Shah, Secretary General of the Indian Pharmaceutical Alliance (IPA) has become the Chairman of IGPA. This assumes significance at a time when pharma lobbies in other developed markets set out to discredit generic drug producers, including companies from India. Founded in 1998 by the Canadian Drug Manufacturers Association, the European Generic medicines Association and the Generic Pharmaceutical Association, USA - the objective of IGPA is to ensure access to affordable quality medicines. The Indian Pharmaceutical Alliance (IPA) was accepted as a member of the IGPA in 2002. The IGPA represents over 500 companies involved in the generic medicines and active ingredient industry. These companies provide a substantial part of the pharmaceutical market in the European and North American regions, besides being players in other regions such as the Middle East, Africa, Asia and Latin America.

Courtesy: The Hindu Business Line: July 07, 2005

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As the G-8 meet in Gleneagles, there's a question increasingly doing the rounds: what is the relevance of the group? It was supposed to be a group of the world's largest and most powerful economies. The plain truth is, it no longer is. Look at it whichever way you will, the US, Japan, Germany, UK, France, Italy, Canada and Russia are simply not the biggest economies. Nor can anyone today suggest that China can be left out of any list of the most powerful economies. If economies are ranked by sheer size, China would be second only to the US and India would come in at No. 4, one place behind Japan and ahead of Germany. How? That's because the sizes of economies are no longer measured by converting their GDP into US dollars at the prevailing exchange rates. Instead, we have what is called the purchasing power parity (PPP) rate that is used by institutions like the International Monetary Fund (IMF) and the World Bank to compare GDPs of different countries. What the PPP method does is to recognise that exchange rates do not properly represent what different currencies can buy in their own home economies and hence distort the picture when we are comparing sizes across countries. Exchange rates are determined essentially only by goods that are traded across borders. They would not, therefore, take into account the fact that, say, a haircut in New Delhi or Mumbai may cost just Rs 50 while the same haircut in New York may cost around $20. Now if India's GDP were converted into dollars using the normal exchange rate, our barber's contribution to GDP would be just over a dollar for each hair cut he provides while the New York barber would be weighing into the US economy at $20 per cut. Using the PPP method, now globally acknowledged to be ...

Courtesy: The Times of India, July 07, 2005

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As much as 50% of Fortune 500 companies are clients of Indian IT companies and over 200 of these 500 companies are currently outsourcing their service and support services to India. And it is just not IT. Big global companies are setting up R&D, software development and engineering centres that cater to their global operations. They are also using India as a test market for clinical trials and developing products for the global market. These are the findings of a study on Fortune500 companies in India, conducted by KPMG and the India Brand Equity Foundation (IBEF). The study describes the strategies that are being adopted by global majors that have established operations in India. According to the KPMG report, MNCs are setting up their own shared service centres in India to offer services such as financial and accounting services, pay roll processing and taxation among others. Citigroup has established a company in India for its BPO activities and to handle all cash management and trade finance transaction processing not only for India but also for countries of Eastern Europe, Middle East and Africa. Fortune 500 companies have begun to recognise the high managerial talent present in India and thus are training Indians to serve abroad. Big companies like Citigroup and GSK are routinely assigning global positions to their Indian employees. The KPMG report says that the world's leading MNCs are not just tapping India's large market but also leveraging the country's domestic market to develop products for global markets. These companies have started to export components and products to group companies across the world. For instance, Ford India exported 28,000 units in completely knocked down (CKD) form to South Africa, Mexico, and Brazil in '03. Along with developing products for global markets in India, these companies have also acknowledged the preference for local tastes and are customising global products and services for the Indian market. Companies like Samsung, Philips and Nestle are developing products specifically for local needs.

Courtesy: The Economic Times: July 07, 2005

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The wait may finally be over for IIT and IIM aspirants. Setting up new IITs and IIMs is set to become a national priority. This could mean that plans for an IIM in the North-East, and upgrading of seven engineering institutes to IIT status, which have been in the pipeline, will finally see the light of day. Not only will the new IITs and IIMs provide an opportunity for top of the line education for a larger number of students, but also address the issue of regional imbalance. The existing seven IITs account for some 3,000-odd graduates every year, while the six IIMs take in some 1,200-odd students. The Planning Commission is also of the view that the expansion plans should address the issue of regional imbalance. The need for a larger number IITs and IIMs has been a long felt need, the number of seats at the IITs and IIMs have been increased. Besides this, last year, the HRD minister Arjun Singh announced the government's plan to set up an IIM in the North East. The idea was to address the issue of regional imbalance. However, the plan has not moved ahead as the location of the institute -Shillong or Guwahati-has not yet been finalised. The setting up of new IITs has been on the cards for several years now. The NDA government had to give up on the idea of setting up new IITs, because of a fund crunch. Instead it opted for upgrading existing engineering colleges. The SK Joshi Committee set up in '03 to identify potential institutes that could be upgrade to IITs submitted its report earlier this year. Seven engineering institutes had been identified.

Courtesy: The Economic Times, July 06, 2005

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Average per capita income of Indians in the US is $60,093 as per the US census of 2000. The more remarkable fact about this figure is that it stands against the US average of $38,885 in the same census. This is revealed in a World Bank study on India and its knowledge industry released last week. The study also captures the trends of Indian Diaspora in the United States and elsewhere. The World Bank report quoting the US census of 2000 says that Indian Americans also have an edge over their American counterparts in the field of education. With more than 62% of them having some college education (compared with just more than 20% for the US population). While they have spread their wings in virtually all professions including agriculture, biotechnology, business, economics, finance, journalism, management, medicine their presence is highly prominent in the IT industry of the USA: approximately 300,000 Indian-Americans work in Silicon Valley, account for more than 15% of start-ups in the USA, and have an average annual income of about $200,000. The Indian Diaspora in the US is not only growing wealthy but also rapidly. The Indian American community now boasts of 1.68 million people compared with 0.81 million in 1990-a growth of 106%.

Courtesy: The Economic Times, July 05, 2005

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Indian firms went about overseas acquisitions in rather an aggressive manner and bought out as many as 26 firms whereas foreign corporates could lay their hands only on 20 Indian firms, in the first quarter of 2005-06, the Associated Chambers of Commerce and Industry (Assocham) has shown in a study. Cash-surplus domestic corporate have disparately gone overseas and bought some of the best-known transnational companies (TNCs) in their mergers and acquisitions bid, the Assocham Eco Pulse study has shown. "Indian firms are truly becoming global and if the trend continues, we will have a host of home-grown MNCs, operating all over the world," chamber president, Mr Mahendra K Sanghi said while releasing the study. According to the study, there were 110 merger and acquisition (M&A) deals across sectors like FMCG (fast moving consumer goods), pharmaceuticals, metal, food and beverages, banking, financial services and insurance, media, engineering, IT & ITeS and others. "The quarter ending June 2005 saw some major deals: The Chatterjee group acquired the Basell NV for $5.7 billion, Deccan Chronicle acquired 67 per cent stake in the Asian Age, Matrix Laboratories acquired controlling stake in Belgium based Docpharma, one of the largest ever acquisition done by any Indian pharmaceutical company," Mr Sanghi said. The number of foreign companies acquisitions done by Indian corporate stood at 26 deals in just three months as against 38 deals in the whole of 2004, the Assocham chief added. In the most recent acquisition, Videocon group has decided to acquire the colour picture tubes manufacturing business of Thompson for Rs 1,280 crore. In other such deals UCAL fuels acquired US based Amtec Precision Products Inc engaged in manufacturing of auto ancillary products for $28 million, Godrej Global solutions acquired Outsource offshore Inc of US, Aditya Vikram Birla group gained control over a Canada based pulp plant. In pharma sector too, Dishman acquired 100 per cent stake in Synprotec of UK for Rs 15 crore, Ranbaxy acquired product portfolio of a Spanish company. In one of the biggest deals done by Indian Pharma company, Matrix laboratories acquired 22 per cent stake in Docpharma for $263 million. In IT sector also seven acquisition deals were done by Indian companies, i-flex acquired Castek software, Goldstone technology ltd acquired Stay top Inc and Helios acquired vMoksha companies, to name a few. In Insurance space, MaxIndia has recently decided to acquire stake in Max Healthstaff International.

Courtesy: The Statesman, July 04, 2005

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WHO says Indian capital is timid? In the first quarter of '05-06, desi firms have outwitted the foreigners in mergers and acquisitions (M&A) game. During April-June this year, Indian firms bought-out as many as 26 firms in overseas acquisitions, whereas foreign corporates could lay their hands only on 20 Indian firms. In whole of '04, Indian companies had closed 38 M&A deals. According to Assocham study, there were a total of 110 M&As across sectors like FMCG, pharmaceuticals, metal, food and beverages, banking, financial services & insurance, media, engineering, IT & ITeS and others sectors in first quarter. The quarter ending June saw some major deals. The Purnendu Chatterjee group acquired the Basell NV for $5.7bn, while Deccan Chronicle acquired 67% stake in the Asian Age. In the pharma sector, Matrix Laboratories acquired a 22% stake in the Belgium-based Docpharma for $263m in one of the largest foreign acquisition by any Indian pharma company. A most recent case is that of the Videocon group deciding to acquire the colour picture tubes manufacturing business of Thompson for Rs 1,280 crore. In other such deals Ucal Fuels acquired US based Amtec Precision Products engaged in manufacturing of auto ancillary products for $28m, Godrej Global solutions acquired outsource offshore of US, Aditya Vikram Birla group gained control over a Canada-based pulp plant.

Courtesy: The Economic Times, July 04, 2005

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The Tata group-owned Videsh Sanchar Nigam Ltd, or VSNL, completed its eight month long process of the $130 million asset acquisition of Tyco Global Network, or TGN, on Friday. However, Mr Kishore Chowkar, managing director of Tata Industries Ltd does not expect much of an impact on the Indian broadband connectivity. He says, "Tyco's network is the best in the world in terms of technology but how much it is going to affect the domestic broadband connectivity is something which I am not sure about at this point. While the quality of broadband will improve, whether it will be perceptible in your house will depend on what the state of the connectivity in your house. But yes, now the quantum of broadband availability, the space, the speed and clarity would be far better."However, what Tyco's network is definitely going to do is benefit Tata's domestic telecommunication business to explore opportunities outside India. Mr Chowkar said, "We believe that this is a profitable asset acquisition for us which will even help our Rs 1,200 crore domestic business of Tata Indicom to extend beyond the shores of India." The network of Tyco forms into a gigantic 60,000 kms all optical-fibre cable network from Europe to the eastern shores of America, from therein an underground network from eastern shores of America to the western shores of America. And from western shores of America the overground network runs upto Japan. The network ends at Singapore with 12 starting points in Europe. The potential capacity of the network stands at 7 terabites.

Courtesy: The Asian Age, July 03, 2005

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Take One: Teams of doctors flying out from India to reach overburdened super-specialty hospitals in European, North American and Australian cities to perform a series of operations. These teams then fly back to India within a couple of days only to repeat the procedure a month or two later. Take Two: Blood serum samples and other pathology samples from hospitals abroad arrive through a cold chain, flown in special refrigerated containers in aircraft and then rushed to labs in India for analysis. The hospitals that sent the samples receive an electronic report within a day if not in hours. Patients abroad probably would have no idea that their samples were analyzed half a world away. Take Three: Radiology reports, including digitized high resolution x-rays, are transmitted to India on broadband networks only to be displayed on high-end monitors in front of a team of radiologists who interpret and flash back their reports and analysis to hospitals worldwide. Is this the next wave of outsourcing and that too with a twist? From having dominated the outsourcing wave in the ethereal world of cyberspace, India is all set to repeat it in the real world and that too in the high-end medical services arena.

Courtesy: The Economic Times, July 02, 2005

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Indian companies it's been one big shopping festival . Corporate India's unending appetite for overseas industrial assets has come to a point where any plant going up for sale in the West sends a flash signal, inviting Indian entities to either look at buying out the production line or join the group of bidders. Whether it's Videocon's acquisition of Thomson's entire picture tube business or Indian Oil Corporation's bid to acquire Turkish petroleum refinery giant Tupras or Matrix Lab's takeover of Belgian Docpharma among the bigger names to hit the marquee in the last one fortnight, Indian companies are going all the way now. Plum deals and big buyouts are now simply falling into their lap. Says S K Shelgikar, business advisor at Videocon Group, "People are taking us more seriously now than in the past. There is no mass discounting of an Indian company any more." Says Ravi Sardana of ICICI Securities, "Indian companies now get calls every time a global asset is up for sale to bid for it." Bankers say that Indian corporates have done some ingenuous deals by acquiring good assets at throwaway prices. These deals are also being fuelled by the private equity funds flow, which is sometimes showing corporates the way to go forward. In many cases, Indian companies are doing an L N Mittal, buying out loss-making units at highly discounted valuations. The other preferred route is to buy out the production units of an overseas company and bring them back to India. This is with respect to the need for expanding capacity, given the growth in demand and projections for the future. One of the prime examples is the electronics sector, which has been in the midst of a major capacity increase in the recent past, particularly in the colour picture tubes(CPTs) business. It is learnt that companies have picked up production units at 90% of the actual value. Says an industry insider, "Looking at ball park figures, we have been buying units at 10 cents to a dollar. Add to it the cost of setting up infrastructure here in India, it comes to about 25 cents."

Courtesy: The Economic Times, July 02, 2005

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Columbia Asia, which claims to be the first international hospital chain to make it to India, will open its community healthcare hospital in Hebbal in a few days to cater to north Bangalore. The 75-bed hospital will be the first of the three hospitals the chain plans to open in the city by 2007. The other two will be in Yeshwantpur and one on Sarjapur Road. With Bangalore being "cities within a city" it is logical to have smaller facilities in the city to cater to the different parts of the city than one large facility for all citizens, said Tufan Ghosh, CEO, Columbia Asia Hospital, Hebbal. The US-based group which claims to have hospitals in Malaysia and Vietnam, will eventually invest upto $15 million in Bangalore (excluding the cost of real estate) over the next two years. The group will over time target metros like Delhi, Chennai, Kolkata and also tier I and tier II cities. On Columbia Asia, Dr Nanda Kumar Jairam, group medical director, Columbia Asia said, "Despite being world class and having our main investors from the US (they are not of Indian origin), we will be less expensive than the other large private hospitals in the country because of our format." The hospital has only 75 beds as patients will not be encouraged to stay for long and also to ensure that the hospital is not crowded. Prices will be comparable to the lower levels of the corporate hospitals. The hospital group hopes to target the middle and upper middle classes of north Bangalore. "This part of the city is underserviced by good hospitals. This hospital will make up for this," said Dr Jairam. With over 40 doctors on its staff and over 175 nursing and paramedical personnel, the hospital chain hopes to expand its horizons. Healthcare tourism is also within the group's sight. "But, the local population comes first," asserts Dr Jairam, adding, "once we have met the needs of the local population we will definitely consider this option."

Courtesy: Business Standard: July 01, 2005

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Strong manufacturing and services growth propelled India's per capita income at current prices to Rs 23,241 ($534) in 2004-05. India became a $650 billion economy. The impressive 10.7% growth in per capita income was achieved despite a meagre 1.1% growth in output of the monsoon-hit farm sector, which is the source of income and livelihood for over 600 million of the country's 1.08 billion population. The revised estimates of national income, released by the Central Statistical Organisation (CSO) on Thursday, thus had a possible explanation for the burgeoning consumer class in the country and the busy shopping centres. The rise in jobs and income in the services sector has created a large consumer base among the youth, willing to spend on manufactured goods like cars, TVs and electronic items. Middle-class households are taking advantage of low interest rates on consumer and housing loans. The per capita income at current prices rose by 10.7% in 2004-05 from Rs 20,989 in the previous year, even though the real GDP growth slowed down - in line with earlier government estimates - to 6.9% from 8.5%. In the final quarter of 2004-05, there was an acceleration of real GDP growth to 7% from 6.4% in Q3, showing the continued growth momentum in services and manufacturing.

Courtesy: The Economic Times: July 01, 2005

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