• India, Inc. set to Invade Chinese Market
• Andamans can be Developed as Organic Islands of the World
• NTPC Ranked 486 in Forbes 2000
• Asia's Largest Dam to be Unveiled
• India Set to Become Knowledge Process Outsourcing Hub: CII
• India to Drive Asia Growth in 2005: S&P
• The NRI Czars of Silicon Valley

• Health Tourism: The Next Big Thing in India
• The Global Indian
• Meet India, INC.'s Goddesses of Money
• World Shifts West to East, Fortune Eyes India

The potential for medical tourism may be seriously underestimated. While estimates by CII-Mckinsey are for little over $1bn by '12, the actual opportunity could be far larger. Even a small fraction - 2% of spending on health care in developed countries - could mean a $50bn industry for India. Of course, India will have to get its act straight in 10 years. It should establish 400-500 medical colleges, double the number of doctors, ensure accreditation of hospitals. Anne Marie Moncure, managing director at the Apollo Hospitals in Delhi, is an American who has worked with the US health industry for more than 20 years. She is upbeat on the potential for medical tourism, pointing out that around 50m Americans are uninsured, with even the insured having to pay substantial amounts for treatment, while the NHS of UK makes patients wait for more than a year for surgeries. She said that while heart surgery costs up to $40,000 in the US, it can be done for less than $4,000 in India. "We need to get our act together and deliver quality services consistently, get accreditation and have uniform prices," said Naresh Trehan, cardiologist, Escorts Heart Institute. Mr Trehan is establishing a medical city by '07 in Gurgaon with 2,000 beds. At 75 patients per year per bed, that is almost 1,50,000 patients. Even if one presumes revenue of $10,000 per patient, this is almost $1.5bn from one medical city. With 15-20 such cities, India could service up to 3m patients and earn revenues of $30bn. While the CII-Mckinsey study estimates a potential of just Rs 5,000-10,000 crore - or $1-2bn - by '12, Charanjit Banerjee, director of CII, admits that the potential for medical tourism could be as much as $5bn by '12. The CII estimates could be very inaccurate and very low estimate of actual potential. Potential for patients is more from Europe and neighbouring countries of India, said KC Ozha, a hospital management consultant.

Courtesy: The Economic Times, May 27, 2005

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India today launched a determined bid to diversify its export basket to China by roping in major corporate houses, including L&T, Ranbaxy, TCS and NIIT, to showcase their technological prowess in the world's most dynamic market. 'India Day', the largest-ever of its kind organised by the Indian Embassy here, was inaugurated as part of the 'China Western Region Commodities Fair', a major trade exhibition in Chengdu, capital of south-west China's Sichuan province, which is emerging as a key information technology hub of China. Apart from this, Indian companies, along with the Confederation of Indian Industry (CII), organised a seminar which was attended by senior executives of some 70 companies, Vinay Kwatra, Commercial and Economic Councillor of the Indian Embassy, said. The three-day fair will enable major Indian companies to expand their reach in China's western region and to interact with potential Chinese partners and clients,said Kwatra There are several areas, including agriculture, dairy industry, food processing, auto-components, pharmaceuticals, healthcare, machine tools and Information Technology where the two countries could benefit from expansion and diversification, he said. According to latest Chinese trade statistics, Sino-India bilateral trade during the first quarter of 2005 touched 4.46 billion US dollars, up 42.4 per cent compared to the corresponding period last year. During January-March period, Indian exports to China recorded a total value of 2.72 billion US dollars, up 28 per cent over the same period last year. At the same time, India's imports from China touched 1.74 billion US dollars, up 72 per cent. India enjoyed a trade surplus of 983.8 million US dollars during the first quarter.

Courtesy: The Economic Times, May 26, 2005

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The Andaman and Nicobar Islands, which are free from severe anthropogenic pressures, can be developed as the `Organic Islands' of the world, according to the Action Plan for Development of post-tsunami New Andamans, which was prepared by the M.S. Swaminathan Research Foundation. According to the report, based on a survey of the islands by six MSSRF scientists led by P.C. Kesavan, the islands, which did not suffer from over-exploitation of forest and marine resources, are uniquely equipped to emerge as `Organic Islands' of the world. "These islands can still boast of a forest area of over 85 per cent of the land. The agriculture practised by a fraction of the settlers is more biology than chemistry-based. What is more attractive is that a combination of factors such as precipitation, soil, coconut and arecanut forests, provides an ideal milieu for raising organic spices, vegetables and fruits. There are more coconut `forests' than plantations, which make the transition to organic farming easy,'' the action plan, submitted to the Andaman and Nicobar Administration says. Crop husbandry, sylvi-horticulture (pandanus, coconut, spices, vegetables and fruits), and aquaculture (tiger prawns, mud crab) are based on low external input sustainable agri and aquaculture (LEISA). With proper care and organic certification system, the islands could emerge as `Organic Islands'. However, there was need for a change of mindset, and think beyond production and productivity, and in terms of value addition, sustainable management of the ecological foundations of crop and animal husbandry and aquaculture, and linkages with markets both nationally and globally, the report added. The islands were fortunate in having several tribal communities whose collective traditional wisdom, blended with frontier science and technology, would strengthen the efforts of the administration to realise the vision to develop a `New Andamans' after the tsunami. This meant a participatory knowledge management, bottom-up approach involving the local elected representatives, tribal captains and members of the tribal council in the decision-making process and initiation of appropriate actions. The fisheries, both marine and inland, offered great scope for employment and income generation as well as for nutrition security. The islands should give the same importance to fisheries as Iceland, the report suggested in its recommendations. The action plan noted that capacity building in all aspects of disaster management and in the development of bio-shields, bio-villages and village knowledge centres was an urgent task. Capacity-building was also needed in the establishment and sustainable management of Community Food and Water Banks. The report suggested that an Empowered Committee be constituted to examine and take speedy action on the recommendations.

Courtesy: The Hindu, May 25, 2005

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State-run National Thermal Power Corporation on Tuesday said it has been ranked 486th in the Forbes Global 2000 list of world's leading companies. Besides NTPC, 30 other Indian companies, including ONGC, SBI, IOC, Reliance, ICICI, BPCL, HPCL, TCS and Gail have found a place in the list, an NTPC release said. NTPC is the country's largest power generation company with an installed capacity of 23,749 MW. It has 13 coal-based, seven gas-based and three joint venture power plants. The members of Forbes 2000 are the biggest and the most powerful companies in the world. Companies are selected on the basis of sales, profit, assets and market value, the release said.

Courtesy: The Economic Times, May 25, 2005

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Despite several hiccups, authorities have completed the construction of Asia's highest dam - Tehri - but suspense grew over the commissioning of its first phase. Built at a cost of more than Rs 6,000 crore on the Bhagirathi river in Tehri district of Uttaranchal, the dam authorities are now mulling over the question of the commission of the first phase (1,000 MW) of the controversial 2,400 MW project, which depends on the closure of T-2 tunnel, which is mandatory to fill the reservoir. The cost of the dam is being shared by 75:25 (equity proportion) by the Centre and Uttar Pradesh government. The construction of 260.5 metre dam, which is at a height of 840 metres from sea level, was completed in March this year. "We have completed almost all the civil work of the dam. Only shaft spillway is yet to be constructed which can be done if the T-2 tunnel is closed," assistant general manager of Tehri dam, BS Bisht said. Hopes of the commissioning of the first phase of the multi-purpose dam had soared in July 2004 following a sudden rise in water level of Bhagirathi river that inundated several parts of old Tehri town. Following heavy floods, the authorities swung into action and evacuated all those people who were battling for a better rehabilitation package and prepared grounds for the early commissioning of the project. The project was initially conceptualised in the late 1960s but real work on it started in 1996. The cost overrun factor as well as the vexed issue of rehabilitation of displaced problem continued to delay the project time and again. Meanwhile, Uttaranchal government has urged the Centre to take an early decision on commissioning of the first phase following completion of the majority of the rehabilitation process, official sources said. According to official reports, all the 5,291 displaced families of old Tehri town have been rehabilitated while 4,566 families out of 5,429 in rural areas have also been compensated. The process is on to rehabilitate the remaining 863 families in rural areas, the report said.

Courtesy: The Times of India, May 10, 2005

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When 51-year-old non-resident Indian Purnendu Chatterjee inked the $5.7 billion agreement in London on Thursday morning, corporate analysts in India were busy calculating the risk-to-return ratio of the deal that has made Chatterjee the biggest takeover tycoon India has ever seen. Chatterjee - who is investing close to Rs 300 crore of The Chatterjee Group's (TCG) funds in the Basell deal - is joined by a host of investors, including ICICI Venture Fund, Haldia Petrochemicals Ltd and international investor Access International who will shell out Euro 1-1.3 billion to buy out the 50:50 joint venture between BASF and Shell. Merrill Lynch will invest Euro 3.3 billion to fund the debt component. For those who came in late, an IIT Kharagpur alumni, Chatterjee is the founding shareholder of Haldia Petrochemicals Ltd, an unlisted producer of polymers and chemicals, in which the West Bengal government also holds a stake. The Tatas hold a token 3 per cent stake in Haldia while TCG holds 43 per cent stake. There will not be much impact of the deal on the Indian polypropylene industry, where Reliance Industries plays a dominant role. At present, Reliance is the largest manufacturer of PP, PE and PVC in the country with a market share of 45 per cent. In fiscal 2005, its production volumes of PP, PE and PVC increased 3 per cent to 1,921,000 tonnes. Domestic demand increased by 3 per cent during the year, reflecting the impact of improvement in economy and stable prices. RIL operates the world's largest grassroot, multi-feed cracker at its Hazira petrochemicals complex and its cracker produced 816,000 tonnes of ethylene and 395,000 tonnes of propylene. As Basell does not have any presence in the Indian market and Haldia will take on Reliance's might in future, analysts say there will not be any implication on the Indian petrochem industry.

Courtesy: The Indian Express, May 09, 2005

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INDIA is all set to emerge as a knowledge process outsourcing (KPO) destination, with a Confederation of Indian Industry (CII) study saying that KPO would grow at 46 per cent to become $17 billion sector by 2010. Besides, the study points that the growth of services sector would be over 8 per cent and its contribution to India's GDP would be over 51 per cent. Areas with significant potential for KPO include pharmaceuticals, biotechnology, and ICT, besides legal support, intellectual property research and design and development for automotive and aerospace industries, CII stated. India stands to gain from its inherent strengths in the healthcare, pharmaceutical and biotech and ICT sectors, it added. The paper states that by 2012, the healthcare sector could account for 7-8 per cent of GDP and provide direct and indirect employment to around 9 million people. India spends $22.7 billion on healthcare and this is the largest service industry in terms of revenue and the second largest after education in terms of employment. Asserting that India could be an emerging healthcare hub, the paper states "India has the opportunity to provide the best of the western and eastern healthcare systems." With Indian systems of medicine "staging a comeback," doctors in the West are increasingly prescribing Indian systems of medicine. The paper has observed that more than 70 per cent of the American population prefer a natural approach to health, and spend around $25 billion on non-traditional medical therapies and products, thus making India one of their most preferred destinations because of ayurveda, yoga and siddha. Moreover, India has a proven healthcare system with over 60,000 cardiac surgeries done per year that matches international standards. Multi-organ transplants such as renal, liver, heart, bone marrow transplants are successfully performed at one-tenth the cost, and patients from over 55 countries come to India for treatment. With India possessing cost advantage over many countries, the healthcare sector also offers a huge potential for investments over the next 10 years. The CII paper states that the sector would require around $22 billion- $31 billion in the next 10 years. The Indian pharmaceutical industry too has achieved self-sufficiency and global recognition as a low-cost producer of high-quality bulk drugs and formulations. Indian companies now offer custom synthesis services at 30 per cent to 50per cent cost savings compared to global costs. The country's biotechnology sector is expected to earn $5 billion annual revenue by 2010.

Courtesy: www.thehindubusinessline.com, May 9, 2005

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Global ratings firm, Standard & Poor's (S&P) today said India will continue to grow, even as most other Asian economies are expected to slow toward their medium-term trends in 2005. Perhaps China and Indonesia could also be exceptions to lower growth in 2005, said S&P's credit analyst Ping Chew, speaking at an Asian Development Bank meeting in Istanbul. He said global economic and financial conditions still support Asian growth and credit quality, despite rising interest rates and oil prices, and a weakening dollar. Nevertheless, a less benign environment may present several risks to the generally positive outlook for the region. Correspondingly, the positive rating trends for Asia sovereigns might moderate in 2005, compared with the previous two years.

Courtesy: www.business-standard.com, May 06, 2005

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As a business reader, you must have by now had a surfeit of stories celebrating how women have broken into and staked their rightful claim in a male-dominated corporate world. This story isn't about past successes - there's no dearth of role models in the world of high finance and the proverbial glass ceiling has been breached to a large extent. The rise to prominence of women like HSBC's Naina Lal Kidwai, ICICI Bank's Renuka Ramnath and Standard Chartered Bank's Shalini Warrier has provided hope and inspiration to women that it could only be a matter of time before gender issues recede into the background and grit and merit become the parameters by which performance is judged for women as well. And it appears we are almost getting there. Corporate Dossier met five women who have made their presence felt in the world of finance to find out what makes them tick. They represent the next breed of professionals who are poised to take charge as the high priestesses of Indian and even global finance. The list is by no means exhaustive, and there could be many more waiting quietly to make their next big leap. Having gone through their own share of trials by fire, many of them shared during their conversations with Corporate Dossier, their experiences and perspectives. One thing comes out clear - while things have changed, a lot more still needs changing.

Courtesy: The Economic Times, May 06, 2005

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Hi-tech entrepreneur Gururaj Deshpande, in his heydays was worth a mind-boggling $3.27 billion. He's not satisfied with one new start-up venture a year. In fact, he has put in a mind boggling $20 million into the Deshpande Centre for Technological Innovation at MIT. Being on the board of that elite institution and literally engraving his name on its hallowed campus obviously gives him the high that, perhaps, even his high-tech companies do not. Vinod Khosla, doesn't just spread cash. He nurtures startups. Then good things happen. Khosla ducklings Cerent and Siara Systems, for instance, sold last year for $11.2 billion combined. Khosla, the venture capitalist at Silicon Valley's Kleiner Perkins Caufield & Byers was the first to understand that Internet technology and fiber optics could make communications so fast, cheap, and easy to install that it would unleash a tsunami of productivity growth. He placed his bets on a handful of now-hot telecom-gear companies. Remember Sanjiv Sidhu, the founder and chairman of i2 Technologies? His net worth in the year 2000 was estimated at $1.1 billion. SCM software vendor, i2 Technologies at its peak during the dot com boom. It was generating revenues of nearly $1bn, with 6,000 staff. But the company became a victim of its fast growth, and suffered hugely when the market collapsed.Kanwal Rekhi, Silicon Valley serial entrepreneur was estimated to be around $500 million in 2000. He donated $5 million to his alma mater in the US, Michigan Tech for the Kanwal and Anne Rekhi Computer Science School. Rekhi had earlier donated $3 million to IIT-Mumbai for the Kanwal Rekhi School of Information Technology. Pramod Haque is at the eighth position on the Forbes Midas List. Last year he was at the top of the list. Haque, the Managing Partner at Norwest Ventures is very bullish about outsourcing to India. He says rarely does his company finance a start-up which does all its work in the US. The breakeven formula of his firm does not work for such companies. Kumar Malavalli is the co-founder of Brocade Communications and co-founder and CEO of InMage Systems. Malavalli has made a gift of $1 million to UCSC to establish the Kumar Malavalli Endowed Chair in Storage Systems Research at UCSC's Baskin School of Engineering. He has been inducted into the Silicon Valley Engineering Council Hall of Fame for his contributions to technology.

Courtesy: The Economic Times, May 05, 2005

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American business magazine Fortune is bullish on India's growth prospects and is exploring the possibility of syndicating in Indian newspapers or magazines that would ultimately lead to an Indian edition, a senior editor of the magazine said. "Fortune is keenly interested in expanding its presence in India," International Editor of the fortnightly, Robert Friedman said. He said that Fortune would like to target India's large, literate, English-speaking, business-minded population as part of the company's plans to expand its operations in the world's second most-populous nation. "Fortune currently has a paid circulation of 8,000 in India, which we would like to grow," Friedman, who recently visited India, told said. Commenting on the Indian economy, he said that economic growth is picking up steam, largely as a result of government reforms, the opening up of the economy to foreign investment, and the dramatic rise of India's home-grown IT sector. "I think this growth is sustainable over the long term, though perhaps not at the torrid pace of China, because India's middle class is growing and along with it a more vibrant consumer society," Friedman said.

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

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