• Brand Gujarat gets a big boost
• US business hails $150 billion 'opportunity' in n-deal
• Madhya Pradesh To Get $5 Billion Aviation City In Gwalior

• Modi moves fast to seal the Nano deal
• GE Healthcare To Invest $200 In India

Brand Gujarat is reasserting itself. Tata's small car might become the state's mascot- a totem-that reaffirms all benefits Gujarat offers to industry as well as consumers. Tata's decision to relocate it's small car unit in Gujarat will bring more than industrial goodwill. Political stability, progressive leadership and business-friendly environment of the state-all have been underlined by the warm words of praise from Ratan Tata as he announced Gujarat as a "new home for Nano". The state, which has always been an attractive market for manufacturing industry, did not have much trouble convincing the Tatas to choose it as an alternative site for Nano. "The region has always marketed itself well to the traditional industry," says Feedback Ventures vice-chairman S Ramasubramaniam. Bringing in the manufacturing of the world's cheapest car to Gujarat, though, would have a wider socio-political impact. Both Brand Modi and Brand Gujarat are set to improve their equity with the industry as well as the masses. Brand Modi moves into the politically correct zone as Nano drives in. "It (Nano's move to relocate to Gujarat) would help wash out the negative image. Association with a consumer product (Tata Nano) that has captured the world's imagination will also bring in positive recognition in the international community," says a marketeer. On the domestic front, the lure of Nano is bound to attract new blood. Newage professionals who have moaned the 'dry' state of affairs might come in with Nano. Tata's snubnosed car is expected to create a public bonhomie which will bring in more resources and new sector business to the area, multiplying the efforts of Vibrant Gujarat campaign. "Gujarat has relatively few consumer product manufacturers and just even fewer of this (Nano) stature. This investment would have a ripple affect on the economy, bringing ancillary units and other auto players as well as related industry," says IIM-A marketing professor Piyush Kumar Sinha. The brand, which has been backed by port linkages, infrastructure and stable, clean governance has been given a public vote of trust by Tata Nano. The industry and investor are bound to feel good, convinced with the brand ethics. The confidence in Gujarat as an ideal business destination is set to touch a new high. "The quality of leadership and accessibility to government, especially bureaucracy, is a refreshing change from other states," says Mr Ramasubramaniam. The state itself has always had a strong equity in the business of making money. Gujarat knows how to attract and keep business within its borders. "I would associate the words pioneer, progress and rooted with this brand," says Ogilvy & Mather country head-discovery & planning Madhukar Sabnavis.

Courtesy: www.economictimes.indiatimes.com, October 08, 2008

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Nano, the revolutionary small car from Tata Motors has a new home. The chairman of the Tata Group Ratan Tata on Tuesday announced the relocation of the Rs 2,000-crore Tata Nano project to Gujarat from Singur in West Bengal. Amid smiles and exchange of bouquets, the Tatas inked a memorandum of understanding (MoU) in the form of a 'state support agreement' at the Sachivalay premises at Gandhinagar. The Tatas will set up the 'mother plant' for the Nano on 1,100 acres at Sanand, about 35 kilometers from Ahmedabad. Members of the state cabinet and senior officials of the Tata group were present during the signing of the agreement. The mother plant was earlier meant to be located at Singur. The mother plant, which will begin producing 2,50,000-3,00,000 cars per annum, has the capacity to expand its production to 5,00,000 cars in the coming years. The Tatas also have plans to build electric cars and CNG variants from this plant. The Tata complex at Sanand will initially house 60 ancillary units. Tata Motors will take at least one year to construct the mother plant. Much of the machinery currently located in Singur will be moved to the new location at Sanand. "A lot of the assets will be relocated," Mr Tata told ET earlier in an interview. Mr Tata said he plans to stick as close as possible to his deadline for launching the Nano. Earlier, the Tata Group had said that it plans to launch the Nano in October-December 2008. It is possible that this might slip to January-March 2009, a senior Tata Motor official said. The first batch of Nanos will be rolled from 'makeshift' facilities located in Tata Motors' existing factories in Pune and Pantnagar. Initial production volumes will be lower because of the delay caused by the events at Singur.

On Tuesday though it was all smiles in Gandhinagar. "This is an extremely momentous day for us. We have been through a sad experience, but so quickly we have a new home. We now have a chance (to function) in a conducive and friendly environment," said a visibly relieved Mr Tata while addressing mediapersons in the presence of Gujarat chief minister Narendra Modi. "Aapne aanhiya na chhiye (we belong to Gujarat)," Mr Tata said in Gujarati while trying to trace back his roots to the state. Tata said that the group had opted for Gujarat because it had "already lost a lot of time (in the Singur controversy) and urgency was the need of the day." "We had an urgency to move to a new location." The chairman said that the 'reputation of Gujarat' and the 'speed' at which provisions were made, forced him to opt for Gujarat. "The land we have been provided is well located, attractive and extremely central," Mr Tata said while adding that the final decision to move to Gujarat was taken in the last couple of days. He said that the new plant could be bigger in size as compared to that in Singur because the complex is expected to house more vendors. "We are here to stay," he said. "We would like to be present in Gujarat in a holistic manner. Going beyond Nano, we are also planning to set up a research institute in agriculture and marine biology institute," Mr Tata remarked. When asked what were the tax incentives provided by the state, Mr Tata said, "They are slightly better than what we had previously." Mr Tata said that the 'new agreement' has been signed on an auspicious day when the chief minister Narendra Modi had completed seven years in office. The Tatas are also planning to build an auto academy and put up ITIs (industrial training institutes) for the development of human resource needed for the plant. Mr Tata, however, did not specify any time period when the new plant will start functioning. "It is too premature to say anything. We have to relocate equipment and have a lot of civil work," he remarked. "There is a good M and a bad M," is how Mr Tata chose to equate his experience with Mr Modi and Trinamool Congress leader Mamata Banerjee. When asked about the future of the employees hired for the Singur plant, Mr Tata said that the employees will be given a chance and will be accommodated into the company's nearby units. After having stolen the limelight from states like Karnataka, Andhra Pradesh and Uttarakhand, Mr Modi said: "We are entering the automotive industry in a big way. I am not seeing this development as inflow of investments, but I feel that the coming of the Nano to Gujarat will begin a new chapter of partnership which will propel the state in a new direction of growth." "I welcome him (Ratan Tata). For me, this project entails nationalistic spirit," Mr Modi remarked while emphasising that the 1,100 acres allocated to Nano were at the prevailing market rates. This project, which will help Gujarat create it's own space in surface transportation, Mr Modi said that the state is already known for the ship-breaking industry and had the likes of Bombardier at Vadodara which manufactures deluxe train coaches. The chief minister also related a 100-year-old incident, when Ratan Tata's grandfather, Jamshedji Tata had helped Gujarat by donating Rs 1,000 during a famine to save cattle.

Courtesy: www.economictimes.indiatimes.com, October 08, 2008

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The US-India Business Council (USIBC) has hailed Congressional approval of the India-US civil nuclear deal, saying the "historic vote" would open a "wide vista of opportunity" worth more than $150 billion. "The benefits will be many and the impact profound, beckoning a new era in US-India relations," said Ron Somers, president of the industry association comprised of 300 of America's top US companies committed to a long-term partnership with India. "By enabling US-India civil nuclear cooperation, India not only joins the international nuclear non-proliferation mainstream, but now has the opportunity to achieve energy security, while protecting the global environment," he said. "A massive scope for commercial opportunity between US and Indian companies will also be the result, valued at more than $150 billion over the next 30 years, spurring a revival of the nuclear power industries of both countries that will create as many as a quarter million high-tech US jobs for generations to come," Somers said. "Passage of today's legislation clears the way for US companies to participate in India's civil nuclear opportunity," Somers, said. "This sets US-India relations on a course that will shape the democratic and economic destiny of the 21st Century." USIBC hailed the "historic vote ending 34 years of a 'technology denial regime' imposed against India, opening a wide vista of opportunity for US-India collaboration in commerce, civil nuclear research, technology transfer and nuclear fuel supply - essential inputs to power India's dynamic, fast-growing economy." On the operational level, the Congressional ratification of the implementing 123 Agreement sets the parameters for US Industry participation in India's civil nuclear build-out, but on a symbolic level represents a historic breakthrough, it said. It would shore up "a durable foundation upon which US-India relations will flourish and America's partnership will deepen with the world's largest free-market democracy," the business advocacy organisation said.

Courtesy: www.timesofindia.indiatimes.com, October 02, 2008

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GE Healthcare, a subsidiary of General Electronics will invest $200 million in India in healthcare infrastructure. The amount will be utilized in India to tap the rural market for diagnostics and disease monitoring equipments. Under the scheme investment would be on tools and machineries such as ultrasound, CT scanners, magnetic resonance imaging (MRI) and X-rays. Commenting on the new venture, GE Healthcare South Asia president V Raja said that as per the agreement GE Healthcare would try and usher in radiological technologies and experts to provide services to patients. He opined that the rural market for diagnosis still remains largely untouched; his firm's idea is to develop the ways to reach the masses and make it affordable. Mr Raja viewed that GE Healthcare has earmarked an investment of around $60 million for equipments under this program. He informed that in Gujarat, the company has already installed devices in five medical colleges. Other than Gujarat, GE Healthcare has signed agreements with Madhya Pradesh government to outsource radiology equipments in government hospitals.

Courtesy: www.india-server.com, October 01, 2008

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India will soon get its first aircraft repair and maintenance facility and cargo hub at Gwalior in Madhya Pradesh. Such type of aviation city is present in Singapore. Thus to have an indigenous aviation centre the government has planned to invest Rs 200 billion ($5 billion). The sate government of Madhya Pradesh has announced to provide 7,000 acres of land for the aviation city. According to state minister and government spokesperson Kailash Vijayvargiya, the new aviation city will be set up in Dabra district of Gwalior. The proposed project is supposed to be completed by next five years. The land which will be provided for the project also belongs to Dabra Sugar Mill. The remaining portion of land will be provided by the state government. Meanwhile, report says that in order to implement the project smoothly the government has planned to enter into a joint venture with Singapore-based Company that runs the Singapore aviation city. Vijayvargiya claimed that the setting up of the first aviation city in Madhya Pradesh will provide jobs to 25,000 people at the initial stage.

Courtesy: www.india-server.com, October 01, 2008

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