| |
Indian
to remain hot spot for investment
in '08
|
| |
|
Year
2007 has been quite well for the investors
in Indian markets. Both Sensex and
Nifty have gone up over 40 percent
from last year end levels. Sensex
crossed the key levels of 15000 and
20000 and Nifty crossed 5000 and 6000
marks. Both foreign investors as well
as domestic investors invested fresh
money into the Indian markets. We
have seen funds inflows from foreign
investors (both in the form of FII
and FDI investments). Inflation, interest
rates and rupee appreciation remained
the main concern in 2007, but it did
not impact the investors' sentiments
in the market. Analysts believe that,
Indian markets will remain bullish
in next few quarters. These are some
of the main drivers for Indian markets
in the year 2008. As per some leading
analysts, there is still a lot of
value in buying stocks at these levels.
Indian companies have better earning
visibility for next many quarters
as compared to their peers in global
and Asian markets. Also lot of Indian
companies increased their capacity
and/or business portfolio in recent
past. The valuation of these new businesses
is not factored in current valuations.
Analysts believe that USA economy
will start recovering in 2008. This
will increase the investor's confidence
and hence trigger more investment
into the stock markets. There are
a lot of investors (money) waiting
to get invested in Indian stock markets.
Market bullishness and foreign investors'
confidence post P-Note decision has
made it obvious that India is one
of the most favorite investment destination
for foreign investors. Analysts expect
that foreign funds inflows in 2008
will be bigger than 2007. Also there
are a large number of mutual fund
houses that are planning to raise
money from Indian investors and invest
in stocks. These are some sectors
that are expected to perform well
next year. Infrastructure and real
estate companies The Indian economy
is expected to grow at a healthy rate
of over eight percent per annum. Infrastructure
and real estate sector activities
increase in high gear in a fast growing
economy. That is why infrastructure
is one of the most talked about sectors
in India. There is huge demand for
infrastructure development in the
hospitality industry, airports, housing,
retail, special economic zones (SEZ)
and transport in India. Many new schemes
are coming up under the public private
partnership (PPP) scheme. However,
a lot of real estate companies got
listed in the stock market in the
last couple of years. Investors need
to be cautious before investing in
real estate companies (especially
in mid-cap and small cap segment).
Power
and energy
Power
and energy are the other sectors that
have direct co-relation with the growth
of economy. As a result we are seeing
a lot of optimism in the power and
energy sector stocks. Power and energy
stocks are expected to do well next
year.
Pharma
Pharma
is another sector that is expected
to do well in the coming year but
investor need to carefully pick pharma
companies for investment. Every pharma
company may not outperform the market.
Banking
and investment
Banking
services are not much demanded/developed
in India (especially in rural markets).
Private and foreign banks increased
competition in banking sector by introducing
new services into the banking sector.
Indian banks are also looking to increase
their profitability by increasing
their customer reach, technology usage
and innovative ways to better serve
their customers. Also it is expected
that a lot of value will get unlocked
by integration of smaller PSU banks
and there is a good opportunity to
make decent returns in the next few
years.
Courtesy:
www.economictimes.indiatimes.com,
December 30, 2007
Back
to Index
|
| |
Market
research outsourcing is gaining ground
in India
|
| |
|
Large
format Indian retailers and domestic
telecom service providers are increasing
their spend on market research and
analytical work. It was disclosed
by Palanivel Kuppusamy, Executive
Chairman, Dexterity Group, a Chennai
based KPO firm in the Market Research
space, who has recently done some
pilot projects for the state owned
telecom major BSNL on defaulting customers
and impact of large retail stores
on nearby mom-and-pop shop owners
and other business establishments.
According to one estimates, 2-3 percent
of the total advertisement spend is
devoted to market research solutions
in India, while globally the proportion
is 10-12 percent. The average spend
on market research by Indian companies
has increased slightly over the past
few years, especially in the retail
and telecom space, added Mr. Kuppusamy.
Currently, Dexterity gets 40% of its
revenues from Europe, 35% from US
and the rest from Asia Pacific region.
While this composition might not change
much in the coming years, the company
expects the underlying growth to be
driven by emerging markets like, Scandinavia,
Latin America and APAC. Dexterity
provides specialized services in areas
such as data warehousing, data mining,
business intelligence and analytics
among others. It wants to differentiate
itself from the lot by offering platform
based market research solutions.
Courtesy:
www.indiaoutsourcewatch.com, December
26, 2007
Back
to Index
|
| |
|
|
| |
|
The
Indian software export industry has
transformed into a mature, internationally
competitive one. The quality of human
resources combined with an extremely
sophisticated vendor base, world class
delivery model, improvements in local
infrastructure, cost advantage and
supportive government policies have
put it ahead of other destinations.
The export revenue earned by the sector
has grown 300 fold in 15 years from
$100 million in 1991-92 to $32 billion
in 2006-07. India now accounts for
about 65% of global market in offshore
IT and about 46% in offshore ITES
market. The growth of this sector
has led to tremendous pay-offs in
terms of high quality employment generation,
wealth creation, transforming the
image of India to one of the engines
of the world economy and India emerging
as a high-tech manufacturing, R&D
and knowledge hub. The software export
sector currently accounts for over
20% of the country's exports and about
4% of the country's GNP.
The
sector is providing direct employment
to about 1.3 million IT and ITES professionals.
Every direct job in this sector leads
to generation of three times indirect
and induced employment. Over 95% of
software exports are currently from
seven metros - Bangalore, Chennai,
Hyderabad, Mumbai, Pune, Kolkata and
Delhi NCR. Exports from software SMEs
(turnover up to $25 million) have
grown substantially over the last
few years. During 2006-07, about 5,000
SME units exported 40% of total software
exports and employed about 68% of
the total IT workforce. To sum up,
there is a window of opportunity for
India for the next five years or so
before competitors start posing a
serious challenge to its leadership
in software services and the BPO sector.
The basic advantages of India - vast
and large skilled pool of human resources,
quality and timely delivery, proven
track record, cost arbitrage and ability
to take on more and more complex assignments
- are still valid. India can continue
to command its leadership, successfully
overcome increasing competition and
generate millions of jobs for its
youth. The software export industry
could grow at a CAGR of 24%-25% over
the next five years and provide a
total of about 3.4 million direct
and about 10 million indirect/induced
jobs. For this, the industry would
need to advance on the value chain,
move to Tier II /III cities to control
cost etc., and the central/state governments
should continue to play a proactive
role in providing fiscal incentives,
policy and other support for IT human
resources and infrastructure development.
It would, however, not be cost benefit,
but the skill and ability to conceive
and execute very complex solutions
in the global village that will help
Indian IT companies retain their existing
first-mover advantage in the long
run.
Courtesy:
www.economictimes.indiatimes.com,
December 25, 2007
Back
to Index
|
| |
Gujarat
Inc rides the Modi wave
|
| |
|
If
it's Santa effect on global markets,
it's Modi effect for Gujarat-based
companies on Monday, the day after
Narendra Modi-led Bharatiya Janata
Party swept assembly polls. "Continuity
of the policies of the ruling BJP
has played a major factor," says senior
analyst at Anagram stockbroking Devarsh
Vakil. "The Modi government had been
hardselling the state as the number
one destination for investment. With
the government coming back to power,
the investor community feels that
the efforts to make Gujarat an investor-friendly
state will continue, The high growth
rate will be maintained with newer
projects coming up in the state,"
he added. Be it infrastructure, power,
FMCG, agriculture, capital goods,
textile or state PSUs, scrips of the
companies based out of Gujarat shot
up registering a 3-14% jump. The recently-listed
Mundra Port and SEZ scrip surged 10%
closing at Rs 1,156. During intra-day
trading, the Mundra Port scrip traded
at an all-time high of Rs 1,192.
Companies
like Adanis, Nirma and Torrent have
been alert to various state government
initiatives and hence the investors
confidence in these group companies.
Analysts feel that companies, especially
those engaged in the infrastructure
business like roads, power, ports
and canal development will benefit.
"Construction boom will help performance
of steel and cement companies. Hotel,
entertainment and retail too will
see better days," says investment
strategist Paresh Gordhandas. Bharuch-based
Sanjay Dalmiya group company GHCL
scrip recorded a big jump of 13.70%.
The scrip closed at Rs 199.24. It
touched its year-high of Rs 208.40
on Monday. Other companies that witnessed
huge momentum in their scrips included
Welspun India ( 5.71%), Adani Enterprise
(5%), Sun Pharma (4.79%), Gujarat
Apollo (4.14%), Gujarat Ambuja Exports
(3.58%) and Torrent Power (3.15%).
Not only large-caps, but mid-caps
and small-caps too performed well.
Aarvee Denim (3.14%), Alembic (2.86%),
Nirma (2.63%), Gujarat Gas (2.39%),
Gujarat NRE Coke (1.43%) and Arvind
Mills (0.7%). The scrip of Gujarat
NRE Coke was expected to do better
as coke prices are ruling high and
the company has just completed the
acquisition of the Australia-based
Elouera mine from BHP Billiton a part
of the Illawarra Coal Business. The
company will start mining from February.
A few companies whose performance
was not in tune with the leaders included
Ganesh Housing Corporation, Atul,
United Phosphorous, Ratnamani Metals
and Torrent Pharma. Says former president
of Ahmedabad Management Association
Rajiv Vastupal: "It's a boost to the
self-confidence of the business community
with BJP retaining power. The clean
image of the government raises optimism
that corruption would further come
down and the efficiency of the government
machinery will increase."
Courtesy:
www.economictimes.indiatimes.com,
December 25, 2007
Back
to Index
|
| |
India
Inc toasts Modi's victory
|
| |
|
Leaders
of Indian industry unanimously raised
a toast to Narendra Modi's re-election
as Gujarat's chief minister, a man
regarded for his development agenda.
"There were major doubts in the past
on being able to convert developmental
efforts into votes, there were doubts
in capacity of developmental activities
to be translated into votes. These
have all been set aside by Narendra
Modi's victory," Amit Mitra, secretary
general, Federation of Indian Chambers
of Commerce and Industry (FICCI) told
IANS. "Modi has been instrumental
in the development of things like
water harvesting and agriculture,
which has translated into a massive
vote bank in the Indian electoral
process," Mitra added. FICCI also
applauded Modi's efforts in building
rural roads and development of small
and medium enterprises in the state.
Another leading industry body, the
Confederation of Indian Industry (CII),
congratulated Narendra Modi and said,
"Growth and development agenda are
imperative to an inclusive and sustainable
growth trajectory." According to the
Associated Chambers of Commerce and
Industry of India (ASSOCHAM), "Modi's
victory was inevitable as his efforts
in developing Gujarat has benefited
every man in the state." "Modi has
delivered on its promises. This is
a lesson for others. His work and
efforts to develop the state has inspired
the common man to vote for him," said
ASSOCHAM president Venugopal N Dhoot,
also the chairman and managing director
of the Videocon Group. Upbeat spirit
was also exhibited by the Southern
Gujarat Chamber of Commerce and Industry
(SGCCI), according to which "Modi's
victory is only going to fasten the
development process of the state."
"Projects and agreements that were
initiated during his rule will now
be continued and implemented faster,
which may have been delayed or discontinued
by other government," the SGCCI said.
On Sunday, Narendra Modi led the Bharatiya
Janata Party (BJP) to victory in Gujarat
once again, winning 117 of the 182
seats. He will take oath of office
on Tuesday for the third time as Gujarat's
chief minister.
Courtesy:
www.hindustantimes.com, December 24,
2007
Back
to Index
|
| |
Indian
Aviation Industry Begins to Consolidate
|
| |
|
India's
aviation industry has expanded dramatically
in recent years with the entry of
a host of new budget carriers. But
as Anjana Pasricha reports from New
Delhi, losses sustained by many of
these airlines are prompting consolidation
in the industry. India's biggest budget
carrier, Deccan, announced last week
that it will merge with Kingfisher
Airlines in January to create the
country's largest domestic airline.
Both airlines are dealing with major
losses. They say they hope the merger
will improve their profit margins
by cutting costs. Chairman United
Breweries Group, Vijay Mallya,left,
with Managing Director Air Deccan,
Captain G.R. Gopinath, at a joint
press conference in Mumbai, India
(file). The Deccan-Kingfisher deal
is the latest step toward consolidation
of India's fragmented airline industry.
Earlier this year, Jet Airways purchased
another low cost airline, Air Sahara,
and the government decided to merge
state-run carriers Air India and Indian
Airlines. Kapil Kaul, head of the
Center for Asia Pacific Aviation in
New Delhi, says the mergers have been
triggered by the huge losses that
most airlines are suffering. He estimates
that the industry lost $500 to $700
million in the last year. "Consolidation
was inevitable last year because most
of the airlines had lost their pricing
power, the industry was so fragmented
that almost everybody had lost hope,"
said Kaul. "I think consolidation
will help the industry to restore
profitability, which is the most essential
need of the industry right now." India's
aviation industry is crowded. The
government opened the sector in the
late 1990's, but until 2003, there
were only three airlines. Now the
number is closer to 10. Most of these
airlines, like Deccan, are budget
carriers. They brought air travel
- once a rich man's privilege - within
the reach of an expanding middle class,
and created millions of new travelers.
But the boom in air travel has not
translated into profits for airlines.
Intense competition has forced them
to slash airfares. At the same time,
rising fuel costs have cut into their
profitability. The industry is also
hampered by overcrowded airports,
and a shortage of pilots and engineers.
However, although the industry is
struggling at the moment, Kaul points
out that aviation in India is expected
to expand at a frantic pace in the
coming years. "The long-term story
remains intact…Our estimate is by
2020 almost $150 billion of investment
could be attracted in this sector,
so the long-term story continues to
be bullish," Kaul said. Air passenger
traffic grew by more than 25 percent
last year. The airlines have emerged
as big buyers of aircraft to accommodate
the new passengers - about 480 new
aircraft are due to be delivered by
2012.
Courtesy:
www.voanews.com, December 23, 2007
Back
to Index
|
| |
Tata
Motors to unveil Rs one-lakh car on
Jan 10
|
| |
|
Tata
Motors, the country's largest automobile
manufacturer, will unveil its much-touted
'people's car', better known as the
Rs one-lakh car, at the upcoming Auto-Expo
here next month. The company said
in a statement that while it would
unveil the car on January 10 during
the expo, the commercial launch would
take place later in the year. The
launch would mark the realisation
of a dream for Tata Sons Chairman
Ratan Tata, who is looking forward
to silence critics of the project,
just as he did with the company's
first passenger car Indica. Tata had
in the past said that the 'people's
car' would be a gearless one with
a rear engine and meet all safety
as well as emission norms. While the
initial plan is to come out with a
660cc petrol engine, the company is
also planning to come up with the
diesel variant. However, Tata Motors
is facing a pricing issue with input
costs going up manifold since the
inception of the project. Tata had
earlier this year at the Geneva Motor
Show hinted that ultimately customers
might have to pay a tad more than
Rs one lakh for the car. Besides,
the company had to face political
opposition for setting up its manufacturing
plant at Singur in West Bengal, which
ultimately began earlier this year.
Courtesy:
wwww.timesofindia.indiatimes.com,
December 19, 2007
Back
to Index
|
| |
Direct
tax kitty swells 42%
|
| |
|
Mumbai
may be the top grosser for the income
tax department but the North-East
has just overtaken India's business
hub, registering the steepest growth
of 244%, in corporation tax mop-up
even as overall collections rose over
42.5% between April and December 15
this year. According to latest data
released by the Central Board of Direct
Taxes on Tuesday, net collections
were estimated at Rs 1,64,407 crore
compared to Rs 1,15,377 crore during
the corresponding period last fiscal.
Collections till December 15, the
last date for payment of third instalment
of advance tax, were estimated at
61% of the budget target of Rs 2,67,490
crore for 2006-07. The finance ministry
statement, however, came with the
rider that the data was provisional
and did not reflect all the advance
tax receipts. While corporation tax
collections grew 42.4% to Rs 98,391
crore, personal income tax mop - including
fringe benefit tax, banking cash transaction
tax and securities transaction tax
- was up 43% at Rs 65,774 crore. Thanks
to the action in the stock, STT collections
rose nearly 75% to Rs 5,895 crore,
while FBT saw a 16% rise to Rs 3,313
crore. BCTT mop-up was 17% higher
at Rs 376 crore. In terms of overall
direct tax growth, Mumbai region saw
a 68% rise, followed by Pune region
at 59% and Chandigarh (48%). In the
corporate tax segment the North-Eastern
region (Guwahati) was followed by
Kerala at 83% and Mumbai (81%). At
161%, Madhya Pradesh and Chhattisgarh
reported the highest increase in personal
income tax collections, followed by
Nagpur (97%) and Pune (60%). While
corporation tax collections are a
function of economic activity, the
rise in personal tax mop up has also
been attributed to steady economic
growth, with GDP rising around 9%,
as well as the tight leash that the
income tax department has armed with
loads of information on most tax payers.
In the coming weeks the department
intends to step up the drive to maximise
revenue collections and beat the budget
estimates.
Courtesy:
www.timesofindia.indiatimes.com, December
19, 2007
Back
to Index
|
| |
Govt
grants Rs 10 cr to develop cold chain
infrastructure
|
| |
|
The
Government will extend a grant of
Rs 10 crore for cold chain integration
in the country along with subsidies
to encourage private players to invest
in the cold chain infrastructure.
This was announced by minister of
state for food processing industries
Subodh Kant Sahai at the inaugural
session of the two-day conference
on supply chain and technology in
retail organised by FICCI. Speaking
on the need to create a modern chain
for preservation and value addition
of perishables, he said, "During the
Eleventh Plan, the ministry is launching
a revamped cold chain infrastructure
scheme to create integrated cold chain
infrastructure at different levels
- farm-level primary processing centre-cum-cold
chain, collection/aggregation centres
and strategic distribution centres."
He said his ministry is trying to
negotiate with state governments to
reduce VAT to between zero and four
per cent. For integration of agri-business
facilities, the minister spoke of
extending support to 30 mega food
parks based on five feasibility studies
conducted by his ministry. "These
parks will function as sourcing hubs
for retail outlets and to link farmers
with retail markets while minimising
intermediaries," he said. Quoting
a study conducted by NIAM, the minister
pointed out there are 6-7 intermediaries
in the fruits and vegetables supply
chain in India as against 2-3 in developed
countries. "While the consumer pays
Rs 11.6 for a kilo of fruit, the price
realised by the farmer is only Rs
3.3 a kilo (28 per cent). The trader
at the village takes Rs 4.1 (35 per
cent), the wholesale dealer takes
Rs 1.7 (15 per cent) and the retailer
takes Rs 2.5 (220 per cent). All these
margins are without any value addition
to the product," he said, adding that
this reduces farm gate price and income
levels. On the issue of foreign direct
investment (FDI), the minister maintained
that the Government might open up
its $33 billion retail market after
being convinced that kirana stores
would not be affected by big retailers.
The Department of Industrial Policy
& Promotion has engaged an agency
to conduct an in-depth study on the
impact of FDI in food retail on domestic
retails, he said. The study report
is expected to be available by March
2008.
Courtesy:
www.indianexpress.com, December 18,
2007
Back
to Index
|
| |
Booming
economy beckons NRIs home with fat
cheques
|
| |
|
Dollars
and dirhams make no dream stuff for
Indian senior professionals. The spiralling
rupee and challenging jobs with attractive
pay packages in India, and on the
flip side, higher inflation and increasing
cost of living in foreign countries,
are driving many expatriate Indians
back home. And they are treated to
a red-carpet welcome. Until now, it
was predominantly the IT sector that
drew Indians from abroad. Now, it's
the retail, infrastructure, pharma,
financial sectors, engineering, hospitality
and real estate. While experienced
hands in IT, pharma, R&D and engineering
research come from the US, senior
executives in infrastructure and retail
sectors are being sourced from the
Middle East. Many senior and middle
management people of Indian origin
are returning from the Far East as
well, especially Malaysia and Singapore,
for greener pastures in India. "No
longer a trickle, it's growing into
steady stream. With the Indian economy
booming and the talent crunch deepening,
many Indians working abroad are packing
their bags, heading straight home
to pick up new assignments," says
a Mumbai-based management recruiting
executive. Many mid- and large-sized
foreign companies that are setting
up offices in the country are looking
for Indians with international experience
for their top jobs.
"A
US-based $800-million telecom repair
company, another $225-million family-owned
textile company from the US, which
sources materials from China, an Israeli
medical device manufacturer, a European
company dealing in carbon credit,
and a couple of VC-funded companies
in telecom, software and animation
space, are setting up their subsidiaries
in India. They all want Indians having
Indian job experience and an international
stint. There is a lot of demand for
country managers," says Hyderabad-based
Options Executive Search CEO Achyut
Menon. Afcons India ED (finance &
commercial) S Paramasivan says that
deepening talent crunch in the Indian
market is spurring an unprecedented
reverse brain drain. "Every infrastructure
and construction company faces challenges
of retaining existing manpower and
roping in experienced managers to
support their new ventures. The number
of Indian expatriates returning to
the country after spending many years
abroad is growing steadily," he says.
The new wave of knowledge processing
outsourcing has led to many KPO firms
sprouting in the country. This has
opened up numerous opportunities for
Indians having global experience.
Similarly, biotech and chemical firms
are ramping up their manpower base,
and foreign experience is handy. DuPont,
for instance, is looking to hire over
a hundred PhDs in the next 12 months
for their knowledge centre in Hyderabad
- and these would range from doctorates
in entomology to polymer chemistry
- across basic sciences. Top recruiters
in Mumbai say that Indian companies
are willing to pay 70-80% of foreign
salaries for the key guys. However,
junior and middle management executive
may have to take a deeper cut. A senior
official from Head Hunters India said
most Indians coming back now are demanding
rupee salary because of the strengthening
currency. "Many foreign companies
are now compelled to pay an allowance
to those who have taken dollar salaries,
in order to set off the loss on account
of dollar weakening," he says. On
the flip side, at least some senior
people who have come back recently
are already feeling a culture shock.
"Different working culture abroad
with less working hours, better infrastructure
and absence of taxation hassles are
still a driving factor for foreign
countries," says Mr Paramasivan.
Courtesy:
www.economictimes.indiatimes.com,
December 18, 2007
Back
to Index
|
| |
India,
Indonesia can save you from US ills
|
| |
|
India
and Indonesia are the two best places
to hide from America's slowdown, considering
the robust domestic demand in these
two countries. This was indicated
in Citi's research report on Asia-Pacific
Banks 2008 Outlook. The report said
between the two markets, there are
more risks to Indonesia's growth story
than to India's. Their loan growth
and investment trends look strong
as well as sustainable. This view
has clearly become an investor consensus
over the past year, taking the valuation
of the banking sector in both counties
to fairly rich levels. Between the
two markets, Citi is of the view that
there are more risks to Indonesia's
growth story than to India's in the
near term. Explaining its rationale,
Citi said Indonesia's banking regulator
Bank Indonesia has conducted a series
of rate cuts over the past 12 months
(to 8.25%), but even as Citi's economists
are expecting another 25 basis points
easing to 8% in 2008, there are already
suggestions that Bank Indonesia will
defer this on concerns of rising oil
and food prices. In India, the Reserve
Bank of India (RBI) is likely come
to the end of its rate tightening
cycle, and now there is a room to
cut key policy rates (7.75%) since
inflation stays remarkably benign.
Banks may see some easing of margin
pressures endured in the past year.
The report pointed out India, Singapore
and Hong Kong would benefit from robust
loan growth plus stable or lower rates
supporting margins. Oil and inflation
concerns may temper growth in Indonesia,
while Malaysia's growth may hinge
on government's investment spend.
On Thailand, Citi does not expect
the banking regulator to soften rates
further, while Taiwan seems to be
tightening its rates on inflation
worries and the Chinese regulator
is looking at capping near-term loan
growth. On China, Citi said its banking
regulator had hiked its reserve requirements
13 times in 2007, and it stands ready
to tighten further since many Chinese
banks have reached the loan to deposit
ratio cap of 75%. Citi expects banks'
overall loan growth to slow significantly
in the first half of 2008. However,
the bank said it would prefer large
banks with strong deposit franchises.
For Hong Kong, Citi expects the overall
margins to improve faster for larger
banks with good deposit bases.
Courtesy:
www.economictimes.indiatimes.com,
December 18, 2007
Back
to Index
|
| |
Economy
will grow by 10%: FM
|
| |
|
Finance
minister P Chidambaram today said
he was confident that the economy
would grow by 10 per cent and the
country's exports would touch 200
billion dollars by 2008. Referring
to early 90's when the economic liberalisation
was set in motion in the country,
he said, "in 1991, no one would have
believed that some day, India's economy
would grow at 10 per cent." He was
speaking on "Indian Economy in the
21st century", organised by the Madras
High Court and members of the Madras
Bar Association to commemorate the
60th year of the country's Independence.
"This is an open economy. But this
entails huge responsibilities like
recognising our weaknesses, reducing
dropout rates in schools, increasing
enrolment rates in schools and colleges
and utilising human resources", he
added.
Courtesy:
www.economictimes.indiatimes.com,
December 17, 2007
Back
to Index
|
| |
Cricket
a blue chip property
|
| |
|
As
one series rolls into the next, cricket
has become prime time TV entertainment,
more in demand than soaps and reality
shows. What is more amazing is cricket's
capacity to come up with fantastic
figures. Isn't it incredible that
the IPL pays Stephen Fleming Rs 1.7
crores for six weeks of cricket, three
times the value of Sachin Tendulkar's
annual retainership contract of 60
lakhs. Equally surprising is that
people happily spend top money to
get a part of the action. Spectators
think nothing about paying the cost
of a Delhi-Singapore return airfare
to witness a Test match. The privilege
of watching a one dayer in style can
set you back much more. Still, demand
stays strong and money keeps pouring
in. Says a cricket official, "Earlier,
we had to push sales. Now, expensive
tickets get sold out quickly. People
are dying to watch cricket." No surprise
therefore that price of cricket properties
keep going north. Nimbus paid a huge
612 crores annually for TV rights,
and the figures currently tossed around
for acquiring franchisee rights for
teams in the IPL are mind boggling.
This because corporate houses are
sparing no effort to hitch a ride
on cricket Also, the pool of likely
sponsors has widened from traditional
cola companies with the arrival of
newer players that include oil firms,
TV channels and real estate developers.
Even government agencies like Rajasthan
Tourism have woken up to the enormous
connect of cricket and who knows games
could become launch pads for major
movies. The scramble is understandable
considering cricket works in India.
Recently, when someone placed a proposal
before a business house to support
non-cricket events they received a
telling response: "This is not charity.
Give us numbers, we need returns to
justify costs." This, experience shows
that cricket delivers. Companies,
which pay crores to sponsor a series,
have seen sales jump. Besides such
direct returns, cricket sponsorship
is also about image building. Indian
cricket is a blue chip property, it
has credibility and reach and for
anyone looking for a swift makeover.
With the 20-20 win, and the impending
launch of the cash-rich IPL, Indian
cricket is poised to set new business
records. Its unique formula brings
together sport, entertainment and
the media, and as a resurgent economy
grows rapidly, cricket will continue
to go up and up.
Courtesy:
www.hindustantimes.com, December 17,
2007
Back
to Index
|
| |
Every
fifth IBM employee is in India
|
| |
|
IBM
Corp's expansion in developing countries
shows no sign of relenting. The technology
company revealed that it now has 73,000
employees in India, almost a 40 per
cent leap from last year. IBM did
not provide updated figures for its
work force in the US, which has held
steady around 125,000 people in recent
years. Nor did IBM project its total
head count. It had 355,766 employees
worldwide at the end of 2006. If the
total has risen by the same rate as
in 2006, almost one in five IBM workers
now is in India, its second-largest
center. Like many other technology
providers, IBM has rushed to take
advantage of the lower labour costs
India offers even for highly skilled
workers. IBM's base in India numbered
only 9,000 people in 2003, but it
was about 53,000 last year. IBM has
been stressing not only the lower
expense of working in India but the
potential of the Indian market. IBM
executives said that the company expected
to see revenue from the Indian market
jump to nearly $1 billion this year,
from $700 million in 2006. Armonk,
NY-based IBM is also ramping up in
other key developing markets. Its
chairman and chief executive, Sam
Palmisano, recently formed a new organisation
that will spur IBM's investment in
emerging economies. The plan is meant
to capitalise on the higher growth
rates in the so-called "BRIC" countries
of Brazil, Russia, India and China.
IBM's revenue from those countries
rose 18 percent in the first three
quarters of this year, even after
discounting the benefit of currency
fluctuations. IBM's total employee
count in these countries now is nearly
100,000, up from 70,000 a year ago.
IBM's vice president of financial
management, Jesse J Greene Jr, would
not forecast how much more hiring
the company still might do in emerging
markets. However, he said "we see
continuing good stability in the BRIC
countries in general and good opportunity
for growth in these countries as well."
Courtesy:
www.economictimes.indiatimes.com,
December 17, 2007
Back
to Index
|
| |
India
Emerges as Production Hub for Small
Cars
|
| |
|
India
is emerging as a production hub for
Asian car manufacturers rolling out
new compact models for the global
market. Suzuki Motor Corporation says
a new compact hatchback targeted at
European customers will start to roll
out of a plant near New Delhi in December
of next year. The company says the
car will produce lower greenhouse
emissions than its European rivals.
The Japanese company plans to export
nearly two-thirds of the 150,000 cars
due to be made here annually. Suzuki
says it will invest $1.8 billion to
increase capacity in its Indian factories
over the next 15 months. Suzuki is
not the only company to use India
as a manufacturing base for compact
cars being sold on global markets.
South Korea's Hyundai has also made
India a production hub for small cars.
In October, the company launched a
compact car known as the i10, which
is being made only in Hyundai's Indian
plants in the south of the country.
Much of the production is being exported,
to Europe, Russia and Latin America.
Nissan says it also plans to manufacture
a small car in India for export to
Europe. Industry analysts say India
offers several advantages to car manufacturers.
Yogendra Pratap , formerly editor
of the automotive magazine Overdrive,
says the country offers expertise,
low production costs and millions
of potential customers. "India has
all the engineering skills that are
required to make cars," said Yogendra
Pratap. "It is definitely cheaper
to make cars here than elsewhere.
For the sub-compact segment, India
also has the volumes now. It makes
sense to have a production base and
a development base in a country where
you are going to be having major volumes.
Suzuki for instance sells more cars
in India than in Japan." Global auto
manufacturers are focusing on compact
cars as demand for them rises worldwide.
Stricter emission rules in Western
countries and rising fuel prices are
prompting many European customers
to opt for small cars. Over the next
five years, economists predict that
hundreds of millions of people in
emerging markets such as India, China,
Russia and Brazil will be joining
the middle class, and looking for
cars priced under $10,000. This has
led global auto giants such as Toyota
and General Motors to announce that
they will develop low-cost cars. Most
of these small cars are expected to
be manufactured in Asian countries
such as India and China.
Courtesy:
www.voanews.com, December 16, 2007
Back
to Index
|
| |
IT/ITeS
closest in gender balance
|
| |
|
It's
been the poster child of the new Indian
economy for many reasons - and not
the least of them are the way the
technology industry has worked at
breaking down gender barriers. With
women making up just 6% of the organised
workforce, the IT/ITeS sector is perhaps
the closest to mirror a gender balance
compared to the rest of corporate
India. In 2005, the male-female employee
ratio in the Indian IT/ITeS industry
was 76:24. This ratio will look like
65:35 by the year-end and 55:45 by
2010. On the sidelines of Nasscom's
second annual leadership conference
on women in IT, the ET Roundtable
discussion focused on how to export
best practices from the IT industry
to other emerging sectors. The power-packed
panel represented both the IT industry
and the HR community - and had significant
experience with other sectors as well.
Taking time out for The Economic Times
were Katherine Hegmann, general manager,
integration executive, IBM India,
Tracy Ann Curtis, senior manager,
Inclusion & diversity, Cisco Asia
Pacific, Teresa Copping, CEO Aviva
Global Services, Hema Ravichandar,
strategic HR advisor, Geeta Kannan,
VP HR, Infosys and Kiran Karnik, president
of Nasscom. Starting off with a discussion
on mistakes that the corporate world
should avoid, the panel warned against
the dangers of forcefitting - whether
that meant the roll-out of policies
without looking at cultural fit, or
even turning diversity into a 'quota'
issue within companies. Look at it
as inclusivity, they suggested - and
make sure that the other 50% of the
workforce buys into the benefits of
diversity. One huge enabling factor
for women in the IT/ITeS sector has
been the use of technology - but the
infrastructure made available to them,
simply because of large numbers, and
the structured networking and mentoring
environments are initiatives that
would work to help women across the
board.
Courtesy:
www.economictimes.indiatimes.com,
December 14, 2007
Back
to Index
|
| |
Job
market on a high, robust hiring puts
India third in Manpower ranking
|
| |
|
The
job market in India is expected to
remain buoyant with net employment
outlook of over 42% in the first quarter
of 2008 (January-March), according
to the findings of Manpower employment
outlook survey released on Tuesday.
Of the 27 countries surveyed globally
for hiring plans during January-March,
India came at the third position.
Peru and Singapore grabbed the second
and fourth spots, respectively. Though
the survey found a decrease of 5 percentage
points in hiring from October-December,
there was a year-on-year increase
of 3 percentage points. Of the 5,163
employers surveyed, 43% expected an
increase in staffing levels in the
first quarter of 2008, 1% anticipated
a decrease, and 45% expected no change.
The net employment outlook was derived
by taking the percentage of employers
anticipating total employment to increase
and subtracting from this the percentage
expecting to see a decrease in employment
at their location over the next quarter.
Mining and construction sector employers
forecasted strongest hiring plans
at 49% among all the seven industry
sectors-finance/ insurance/ real estate;
manufacturing; mining and construction;
public administration and education;
services; transportation and utilities;
wholesale and retail trade. Employers
in manufacturing and public administration
and education sectors, however, reported
the least robust outlooks at 38% each,
with a quarter-on-quarter decline
of 2 percentage points and 5 percentage
points, respectively. The transportation
and utilities sector employers reported
a reduced net employment outlook by
6 percentage points at 40%. Employers
in the wholesale and retail trade
sector forecasted a marginal dip of
1 percentage point in their outlook.
"Employer hiring intentions are more
cautious in comparison to the previous
quarter, but remain strong. The forecasted
pace of hiring across six of the seven
sectors appears to have eased as organisations
during this quarter tend to focus
on planning and budgeting for the
coming fiscal," said Manpower India
MD Naresh Malhan. On a year-on-year
basis, however, six of the seven industry
sectors report increases in net job
outlook, with no change in hiring
activity revealed in the manufacturing
sector. Wholesale and retail trade
reported the largest increase at 8
percentage points followed by transportation
and utilities sector with an increase
of 6 percentage points. Mining and
construction and the public administration
and education sectors both report
an improvement of 5 percentage points.
Courtesy:
www.yahoo.com, December 12, 2007
Back
to Index
|
| |
Vikram
Pandit named Citigroup CEO
|
| |
|
Citigroup,
the world's largest financial services
company, has appointed Nagpur-born
Vikram Pandit as the company's new
chief executive officer (CEO) and
a member of its board of directors.
The appointment of 50-year-old Pandit,
who moved to New York from India at
the age of 16 to attend Columbia University,
was announced in New York Tuesday.
He is currently chairman and CEO of
the Institutional Clients Group, which
comprises Citi Markets and Banking,
and Citi Alternative Investments.
The bank also named Winfried F.W.
Bischoff, the acting chief executive,
as chairman, succeeding Robert E.
Rubin, the former US treasury secretary
who stepped into the role when Charles
O. Prince III resigned Nov 4. At that
time the bank was facing up to $11
billion in new losses tied to its
exposure to mortgage-related investments
after racking up about $6.4 billion
in third-quarter write-downs, including
about $1.6 billion stemming from subprime
mortgages. Rubin will return to his
previous role as a member of the Citigroup
board of directors and chairman of
the executive committee of the board.
Pandit is reported to have edged out
another Indian, Ajay Banga, who runs
Citigroup's international consumer
group, for the plum job. Others in
the running included former Citigroup
president Robert Willumstad and Michael
Neal, who runs General Electric Company's
(GE) commercial-finance business.
A former president and CEO of Morgan
Stanley's Institutional Securities
Group, Pandit joined the Citigroup
only six months ago after it bought
Old Lane Partners, a hedge fund and
private equity fund manager founded
by him, for an estimated $800 million.
'Citi
is an extraordinary institution with
tremendous talent, resources and capabilities
and geographic and business scope.
Our challenge is to capitalise on
these strengths to deliver the high-quality
service and products our clients require
and to generate the superior returns
our shareholders expect,' Pandit said
after his appointment. 'Simplifying
the company's organisational structure
and aligning our businesses and resources
with appropriate goals and economic
realities will be among our initial
priorities,' he said vowing to work
closely with the board 'to assure
that our strategy, structure, scale
and diversification position the company
for growth.' Commenting on his appointment,
the Wall Street Journal said: 'Pandit
will face a tall order in rejuvenating
Citigroup's stock price, which has
plunged 38 percent this year.' 'Fixing
Citigroup will not be easy,' said
the New York Times noting, 'Pandit
has never run a public company, let
alone one as big and complex as Citigroup.'
'The company could face billions of
dollars in additional losses on troubled
home loans. Its stock price has fallen
40 percent this year, and its balance
sheet is overstretched,' it said.
On Pandit's appointment, Rubin said:
'Vikram has earned a reputation as
one of the most respected leaders
in the financial services industry.
The combination of his deep executive
experience and long history as a strategic
thinker makes him the outstanding
choice to be Citi's CEO. 'During Vikram's
time at Citi, he has come to know
this company and its people, and he
has earned the respect of managers
and directors alike for his incisive
intellect and ability to balance risk
and opportunity in making and executing
tough decisions. 'The board is unanimous
in its conviction that, as part of
a new generation of executives in
this industry, Vikram is the right
leader to build on the exceptional
strengths of this great company and
take the steps necessary to lead us
forward.' Prior to forming Old Lane,
Pandit was president and chief operating
officer of Morgan Stanley's institutional
securities and investment banking
business and was a member of the firm's
management committee. Previously,
he served in various roles as head
of the equity division, head of derivative
sales and trading, and managing director
and head of the equity syndicate.
Pandit joined the investment banking
division of Morgan Stanley in 1983.
Pandit serves on the boards of India
School of Business, Hyderabad, Columbia
University, Columbia Business School,
and the Trinity School, New York.
He is a former board member of NASDAQ,
New York City Investment Fund, American
India Foundation and the Council on
US Competitiveness. He earned a PhD
in Finance from Columbia University
and holds a Master's degree and a
Bachelor's degree in electrical engineering
from Columbia University. He also
had a teaching stint at Indiana University
in Bloomington.
Courtesy:
www.yahoo.com, December 12, 2007
Back
to Index
|
| |
India's
per capita GHG 25% of world average
|
| |
|
Emphasising
the need to include health, nutrition,
education and housing to the sustainable
development concept, the Union minister
for external affairs, Pranab Mukherjee,
said that "development" dimension
of "sustainable development" is critical.
Speaking at the inaugural session
of the Sustainability Summit: Asia
2007, Mukherjee said that India is
not a significant contributor to green
house gases (GHG) emissions. "India's
per capita GHG emissions is around
a quarter of the global average. The
country with 17 per cent of the world
population, emits only 4 per cent
of global GHGs." Even as India pursues
its economic growth, the emissions
will not increase beyond those of
industrialised countries, Mukherjee
said. The summit, with The Indian
Express as its media partner, has
brought together corporate houses,
government bodies and NGO's on the
sensitive issue of sustainability
and climate change. ITC chairman Y
C Deveshwar insisted that the Government
should raise import duty on wood and
related products so that the domestic
companies involved in local plantation
start sourcing raw material. "I have
suggested the Government to support
development of a CSR sustainability
trustmark. These will enable the consumer
to make an informed choice," he said.
On the issue of CSR ratings, Deveshwar
said that it will be important to
create an institutional framework
that will develop, measure, and award
displayable ratings for corporate
social initiatives.
Courtesy:
www.yahoo.com, December 12, 2007
Back
to Index
|
| |
ADB
allocates $9.2 bn for infra projects
in India
|
| |
|
The
Asian Development Bank on Tuesday
said it has allocated 9.2 billion
dollars for funding infrastructure
and development projects, mainly in
India's less developed states of Bihar
and Jharkhand and those in the North
East, in the next three years. "ADB
has 31 projects under preparation
for states like Bihar, Jharkhand,
Orissa and North East and other states,"
Shigehiko Muramoto, Project Head of
the Manila-based multilateral bank
said. Energy, transport, urban development,
finance and agriculture would be the
focus areas of the ADB funding, he
said at a FIEO seminar here. For 2008,
the multilateral funding agency has
approved a loan of about 2.9 billion
dollars for different projects which
include agri-business and infrastructure
development plans in Bihar and Maharashtra.
They also include Integrated Irrigated
Agriculture and Water Management in
Orissa. About 3.1 billion dollars
would be disbursed in 2009 for projects
like Integrated Flood Control and
River Erosion Mitigation, Assam Energy
Efficiency Enhancement, Mizoram Public
Resource Management and Development
Programme, Bihar Urban Infrastructure
Development Sector. For 2010, the
ADB has approved about 3.2 billion
dollars for funding projects which
include Clean Power scheme in Jammu
and Kashmir and North-East Region
Urban Development investment programme.
The money would also be used for improving
roads in Bihar and Jammu and Kashmir.
Muramoto said bids from contractors
would be invited and finalised in
a transparent way.
Courtesy:
www.economictimes.indiatimes.com,
December 11, 2007
Back
to Index
|
| |
China,
India remain top FDI destinations:
Study
|
| |
|
China
and India continue to rank first and
second respectively in the list of
25 most attractive FDI destinations,
according to a study conducted by
a global strategic management consulting
firm. Brazil, the United Arab Emirates
and Russia ranked among the top 10,
the findings of the latest FDI Confidence
index, a regular survey of global
executives conducted by management
consulting firm, A T Kearney, revealed.
South Africa and other Gulf States
(Bahrain, Kuwait, Oman and Qatar)
made their debut for this year's index
while Vietnam, Malaysia and Indonesia
returned to the Index's top 25 favourite
destination, the study revealed. The
index provides a look at the present
and future prospects for international
investment flows. Companies participating
in the survey account for more than
dollar 3.8 trillion in global revenues.
The assessment of senior executives
at the world's largest companies found
corporate investors optimistic about
the prospects for developing nations
and increasingly targeting them for
more corporate investments in years
ahead. Emerging markets have also
registered the strongest investor
optimism, with India, China, Brazil,
the United Arab Emirates and Vietnam
experiencing the most positive change
in investment and outlook during the
last year. Among developed countries,
the US was again placed third overall
in the 2007 index. Europe's economic
recovery helped Germany and UK maintain
their top ten rankings and Australia
was ranked 11 and France, Canada and
Japan placed in 13 to 15 positions
respectively.
Courtesy:
ww.timesofindia.indiatimes.com, December
10, 2007
Back
to Index
|
| |
India
to Invest Billions of Dollars to Improve
Infrastructure
|
| |
|
India
says it needs to invest billions of
dollars to improve its creaking infrastructure.
As Anjana Pasricha reports from New
Delhi, the building of roads and ports
has failed to keep pace with the country's
runaway economic growth in recent
years. Indian officials say infrastructure
investment must increase dramatically
if the country wants to sustain growth
rates of around 9 percent. Montek
Singh Ahluwalia,The deputy chairman
of the government's Planning Commission,
Montek Singh Ahluwalia, told an economic
summit in New Delhi recently that
India needs to invest $500 billion
in infrastructure projects over the
next 5 years. The government says
it will provide 70 percent of the
money. It is asking private investors,
domestic and foreign, to come up with
the balance of about $150 billion.
A consultant at the Confederation
of Indian Industry, Bidisha Ganguly,
says India needs everything, from
high-speed expressways, to new power
plants, airports and freight corridors.
"It is very, very critical, and the
good news is that you now have the
government recognizing that and setting
policy guidelines that gears up for
an increase in investment in the infrastructure
sector," said Ganguly. "Without that
investment you could see some kind
of slowdown in growth, you could also
see disparities among states increasing."
The high growth in recent years has
exposed the country's antiquated transport
and power systems. Foreign businessmen
say this often discourages them from
scaling up investments in India. Highways,
used to transport most goods, account
for only 2 percent of the country's
roads. Average unloading and reloading
time at clogged ports is 85 hours,
10 times longer than in Singapore
or Hong Kong. Power cuts last for
hours, even in the country's prime
business districts. The Asian Development
Bank calls infrastructure the most
pressing problem in the economy, and
says the deficiencies have eroded
growth already. Ganguly agrees. "To
an extent you can say it is already
hurting," added Ganguly. "You may
have been growing by 10 percent rather
than the 8.5-9 percent that is likely
this year." Adding pressure on Indian
planners are frequent comparisons
with China, Asia's other high-growth
economy. China is credited with making
massive investments in infrastructure,
helping it to attract billions of
dollars in foreign investment. This
is partly possible because the authoritarian
governments at central and local levels
can over-ride public opposition. For
India, the challenge is not just finding
the money, but moving people out of
the way, in its more open and democratic
society.
Courtesy:
www.voanews.com, December 09, 2007
Back
to Index
|
| |
Mukesh
Ambani wins business leader award
|
| |
|
CNBC-TV18
has announced the winners of the India
Business Leader Awards (IBLA) 2007.
CNBC-TV18 India Business Leader Awards
2007 felicitated chief architects
of corporate India's global ascendance
like Mukesh Ambani, Chairman Reliance
Industries; Ratan Tata, Chairman,
Tata Group; and Indra Nooyi, Chairperson
& CEO, PepsiCo. and celebrated the
spirit of enterprise of leaders in
fields such as politics and entertainment
by recognising Pranab Mukherjee and
Shah Rukh Khan as well. The lifetime
achievement award went to P. R. S.
Oberoi, EIH Ltd. while late Aditya
Vikram Birla was named winner under
the 'Hall of Fame' category (posthumously).
Other award winners are: Dilip Sanghvi,
Sun Pharma; G. M. Rao, Founder Chairman,
G. M. R. Infrastructure; The Jaipur
Foot-D. R. Mehta, Founder and Chief
Patron; Shikha Sharma, CEO, ICICI
Prudential Life; Bharti Airtel (outstanding
company of the year); Sudhakar Ram,
Mastek; Martial Rolland, Nestle India;
Harish Manwani, Hindustan Lever and
Rakesh Makhija, SKF India. The winners
were selected through a rigorous judging
process led by an eminent jury comprising
leading business minds. K. V. Kamath,
Managing Director and CEO, ICICI Bank
was the Chairperson of the Jury. Kumar
Mangalam Birla, Chairperson, AV Birla
Group, Uday Kotak, Executive Vice-Chairman
and MD, Kotak Mahindra Bank and R.
Seshasayee, MD, Ashok Leyland completed
the jury panel.
Courtesy:
www.hindu.com, December 09, 2007
Back
to Index
|
| |
'India
to be the next manufacturing hub'
|
| |
|
Leading
NRI industrialist Lord Swraj Paul
foresees India becoming a hub for
world manufacturing industry in the
near future and says that his USD
1.5 billion Caparo Group remains "very
bullish" about the country. "We think
India will become the hub for world
manufacturing industry, which is why
we are going in that direction," Paul
told a Cambridge Leadership seminar.
Paul, who is the Chairman of the Caparo
Group, said, "At the moment, we are
very bullish about India, which is
changing very fast and has started
enjoying globalisation and the benefits
from it." Recalling that his group
built the first factory in India in
1994, the leading NRI said "three
years ago, we began investing in India
in a big way. "We now have 16 facilities
in operation, with another 16 being
built which will be ready by 2008-09,"
he added. The one-day seminar on Entrepreneurship
and Innovation in the 21st Century
was organised at the Judge Business
School in Cambridge and attended,
among others, by the Indian High Commissioner
to the UK Kamalesh Sharma, who was
chosen as the Commonwealth Secretary
General recently in Uganda. Emphasising
the need for entrepreneurs and innovators
to work together, Paul, who is also
British Ambassador for Overseas Business
lamented that Britain was losing touch
with its innovative base. He said
that innovation and entrepreneurship
were part of the fabric of modern
universities and education institutions
should provide the inspirational environment
to encourage and develop the next
generation of creative thinkers.
Courtesy:
www.timesofindia.indiatimes.com, December
07, 2007
Back
to Index
|
| |
India
best suited for SMEs'
|
| |
|
India
is a laboratory for innovations in
small and medium enterprises (SMEs)
and the country provides a unique
opportunity to study their development,
Jose Maurel, Director, Special Advisory
Services Division of Commonwealth
Secretariat, has said. India had a
symbiotic relationship with the Commonwealth
and the country's changing role was
evident as it became an important
provider of ideas and resources to
the fight against poverty, he said
while delivering the inaugural address
at the opening of the 7th Commonwealth-India
Small Business Competitiveness Programme
here on Wednesday. The six-day programme
is being organised by the Commonwealth
Secretariat in collaboration with
Coir Board and the Export Import Bank
of India. The programme, the second
one hosted by Kochi, is being attended
by 63 delegates from 27 Commonwealth
countries. Thirty-seven of these delegates
are women. Coir Board Chairman A.C.
Jose said that India was a surging
economy and that the small business
enterprises had a lot to do with India's
growth as envisioned by Mahatma Gandhi.
He pointed to the example of the coir
industry which employed more than
half-a-million people of whom 85 per
cent were women. Small industries
held the key to generating employment
for India's millions spread in its
half-a-million villages, he said.
K. Muthukumaran, Chief General Manager
of Export-Import Bank of India, read
out a message from the Bank's Chairman
and Managing Director T.C. Venkat
Subramanian. The message said there
were 26 million small industrial units
in the country manufacturing 7,500
products. The SMEs accounted for 40
per cent of the value addition in
industrial products and 35 per cent
of India's exports. A pan-Commonwealth
expo of SME products and rural technologies
was opened at the venue of the programme
at Hotel Taj Residency. Thursday's
sessions are on SMEs as engines of
growth and poverty alleviation, developing
micro enterprises for a robust village
economy and comparative roles of public
institutions in SME development.
Courtesy:
www.hindu.com, December 06, 2007
Back
to Index
|
| |
Lakshmi
Mittal tops South Africa billionaire
list
|
| |
|
London-based
steel magnate Lakshmi Mittal has topped
the South African billionaires' list
for the third consecutive year. Mittal's
27.3 billion rand ($4 billion) listing
in the annual Rich List, released
here by the weekly Sunday Times, takes
into consideration his South African
investments only. The Indian-born
businessman has much more interest
in steel plants across the world,
especially after the recent merger
of Mittal Steel and Arcelor. With
the emergence of non-whites' economic
empowerment in a free South Africa,
Mittal, along with many South African
non-white entrepreneurs, has ousted
the two white families who were top
of the list for decades in the apartheid
era - the diamond magnate Oppenheimer
family and the luxury goods Rupert
family. Nicky Oppenheimer was in second
place with wealth of 16 billion rand
($2.35 billion) and Patrice Motsepe
was third with 13.5 billion rand ($2
billion). Rich List researchers emphasised
the figures were based only on publicly
available information of investments
on the Johannesburg Securities Exchange,
and there may be much more by way
of property ownership, cash holdings,
offshore investments and other investments.
They also said it was possible that
people outside the identifiable business
sector, such as international sportsmen,
patent holders and owners of listed
companies, were excluded from the
list, as it was not possible to identify
them or their wealth. The value of
Mittal's 52.02 percent holding in
ArcelorMittal SA has almost doubled
to 27.36 billion rand ($4 billion).
Mittal's' interest in South Africa
began several years ago when he turned
around the fortunes of the ailing
state-owned steel producer Iscor with
huge cash injection and a business
assistance agreement that saw him
net millions. This success just continued
to grow amid rising global steel prices.
Somewhat ironically, there were recently
strong rumours that the South African
government was considering options
to start a competitor to what has
now evolved into ArcelorMittal SA
from the original Iscor. Mittal's
takeover has not been without controversy,
as the Competitions Commission recently
slapped the local subsidiary with
a fine of almost 700 million rand
($103 million) after local customers
claimed that the company was fixing
its prices unfairly. The only South
African Indian in the 100 Richest
List is former Minister of Environmental
Affairs, Mohammed Valli Moosa, who
came in at 71st position with his
combined holding of 316 million rand
($42 million) in transport giant Imperial
Holdings, insurance giant Sanlam,
and leisure group Sun International.
Courtesy:
www.yahoo.com, December 02, 2007
Back
to Index
|
| |
|
|
|
