2011-Mar-23 - The hospitality industry in India is growing
According to industry reports, the hospitality industry in India is growing at a rate of 15 per cent annually. More and more companies in India are investing in the sector to fill in the gap between supplies (61,000 rooms) and demand (100,000 rooms).
The year 2010 saw the demand in Hospitality Industry pick up after a slow growth in 2009. A company in India such as Reliance Industries (RIL) is entering the hospitality industry through a JV with Mumbai-based real estate company Maker Builders. RIL plans to build two hotels in Mumbai Bandra Kurla Complex.
International hotel chains such as Hyatt, Radisson, Meridian and Marriot are expanding their chains in the country by tying up with companies in India. World hotels will be signing a deal for a resort at Aamby Valley in Maharashtra as well as opening business hotels in New Delhi and Chennai to enter the hospitality industry. InterContinental Hotels Group (IHG) has tied up with Holiday Inn Express, a mid-market hotel brand, and its first property is expected to open in Noida in 2012. Lebua Hotels & Resorts, a Thailand-headquartered luxury hospitality chain is planning to enter India as well. Lebua has hotels in Bangkok and New Zealand.
According to the World Travel and Tourism Council (WTTC) 2011 report, India is expected to attract 6,179,000 international tourist (overnight visitor) arrivals in 2011, generating US$ 15.05 billion (INR678.6bn) in visitor exports (foreign visitor spending, including spending on transportation). The direct contribution of Travel & Tourism to GDP is expected to be US$ 34.8 billion (INR1,570.5bn) in 2011 which is about 1.9 per cent of the country’s GDP. This reflects that the hospitality industry in India will have to gear up to cater to such high demand. Companies in India are investing their capital and industry reports predict that the capital investment in India, in the travel and tourism sector will grow at the rate of 8.8 per cent between 2010 and 2020.
Taking the cue, online travel companies too are making their entry in India to cash in the booming travel and hospitality industry. Hotels.com, an international online hotel booking portal, has plans to spend about Rs 25 crores on promotional activities. ERevMax, an online channel management technology provider, has developed an innovative product for the hotel industry. The product allows fully automated inventory management and rate calculation across over 700 connected websites based on channel performance.
Mandarin Oriental Group, which owns one of the world’s most luxurious hotels, resorts and residences, will be adding 16 new properties in India in the next five years. Other Companies in India such as Small Luxury Hotels of the World (SLH), a marketing firm of luxury hotels, is expecting to expand their foothold in India. Currently, SLH has 13 hotels in India and hopes to add 10 more hotels by the end of 2011. The company also has a website for travel agents through which agents can book rooms for their clients.
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2011-Mar-14 - India’s growth story
The Indian economy is boosting with growth and is attracting the foreign players to come, invest and be part of the aspiring Indian investment climate. One of the leading sectors harnessing the limelight potential is the Indian Fast Moving Consumer Goods sector, with a market size of US$ 25 billion (2007–08 retail sales). Food products being the largest consumption category in India, so much so that the sector constitutes nearly 2.15 per cent of India's gross domestic product (GDP). India is recognised as a cost-effective quality manufacturing base in the world market. Food products accounts for nearly 21 per cent of the country’s GDP. India is the largest producer of several fruits, such as banana, mango and papaya, and the second-largest producer of vegetables such as brinjal, cabbage and onion. The food processing industry is one of the largest industries in India, and is ranked fifth in terms of production, consumption, export and expected growth.
Tracking the size of the food processing industry in India, it has increased from US$ 57 billion (INR 2,736 billion) in 2004 to US$ 75 billion (INR 3,600) in 2007. Moreover, the sector attracts foreign direct investment (FDI) worth Rs 576 crore (US$ 127.50 million) in the first eight months of 2010-11, according to Mr Harish Rawat, Minister of State for Agriculture and Food Processing Industries.
CG Foods, a noodles and snacks firm set up by Singapore-based Cinnovation Group, is all set to invest Rs 40 crore (US$ 8.82 million) for establishing a manufacturing plant in Gujarat.
The FMCG forms a concrete part of every individual’s life. With the facilitation from the Indian government and the relatively aloof economy during the recession, the companies are foraying into the Indian market with their products in order to tap the vast middle class base of India.
The industry intends to provide additional option to the consumer. Keeping the lead, companies are also looking forward to spend upon research and technology (R&D), with Nestle, another FMCG major plans to invest Rs 230 crore to set up its first R&D centre in India at Manesar in adjoining Gurgaon district.
The invariably growing Indian economy is witnessing its golden age, with the Indian talent in research being recognised globally. The companies foraying into India harness the potential and reap the benefits of the low infrastructure, production and labour costs. In addition, the companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is these developments, which form the backbone of the growth story of India. It is technology sector, which forever provides inputs to the innovation and research and ignite the investment climate in India.
Significantly, research in science and technology sector includes various sectors include nano technology, renewable energy, space sector besides other related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure attract the foreign firms to have their respective development centres in India, besides reaping the benefits of the lucrative investment climate in India.
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2011-Jan-24 - The growing consumer market in India
The invariably growing Indian economy is witnessing its golden age, with the fast moving consumer goods (FMCG) global companies foraying into India to harness the potential and reap the benefits of the rampantly growing economy. The FMCG in India form a significant part of the business world in India, as the heightened access to information has made the consumer more aware. It assists the consumer in comparing and asking for better products.
The growing consumer markets have reeled in a new era of retailing. No wonder the international fast moving consumer goods (FMCG) companies like Carrefour and the Wal Mart are pressurizing the Indian government to open the India’s multi-brand retail sector. Carrefour, the world's second-largest retailer, opened its first cash-and-carry store in India in New Delhi on December 31, 2010 to tap the Indian Consumer Market. The store, Carrefour Wholesale Cash&Carry, is located in the Seelampur area, east of New Delhi in the Shahadara neighborhood.
Moreover, Chennai-based FMCG India space reported CavinKare’s plan to invest around US$ 109.50 million over the next two years in various expansion plans. In addition, Nestle, the fast moving consumer goods (FMCG) major, plans to invest US$ 50.49 million to set up its first research and development (R&D) centre in India at Manesar in adjoining Gurgaon district. The facility will be made operational by July 2012.Similarly, the direct selling Fast Moving Consumer Goods (FMCG) company, Amway India Enterprises is aiming at a 25 per cent growth to clock US$ 545.7 million by 2012.
Additionally, the Swiss fast moving consumer goods (FMCG) player, Nestle plans to make further inroads into the rural consumer markets. The company has asked its sales team to deliver “6,000 new sales points every month in rural areas” to expand presence in Indian villages, according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India. India's FMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018.
Furthermore, according to data from market researcher Nielsen, the fast moving consumer goods industry posted a 14 per cent sales growth year-on-year in April 2010, the highest in eight months. US-based Harley Davidson, the iconic heavyweight motorcycle maker is targeting the urban consumers markets in India. Harley Davidson opened its first outlet in Hyderabad recently and plans to open more across the country.
Indian consumer market had access to private label products in food and beverage, apparel, footwear and fast moving consumer goods products.
On another note, the number of foreign tourist arrivals in India has increased as India continues to be a favored tourist destination for leisure, as well as business travel. Banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the Tourism and Hospitality industry is bound to get a bounce in its growth. Significantly, the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism and hospitality market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector. The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi devo bhava'- touch of tenderness, a helping hand and a welcoming visage.
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2010-Dec-16 - The Flamboyant economy of India
The boosting economy of India is offering great potentials for doing business in India for the overseas investors to make investment in India and is encouraging them to consider India as one of the best place for their business development. The most in focus sector being the real estate. Inflation rate is coming down and increased market demand for goods and services are good signs which attract foreigners to do business in India.
There are various factors like quality, availability and reliability of infrastructure services, state or central government’s efforts, good power supply, transportation facilities connecting important nodal points, relaxed tax regulations, efficient banking systems and relatively cheaper availability of labour and raw material, export and import options etc. Doing Business in India is the most attractive destinations for the investments. Even the World Bank analysis has indicated that the infrastructural development and institutions remain the main factors in the development of India’s private sector. The real estate sector is one of the most booming sections in India.
The economy of India is one of the fastest growing economies of the world with good population base. The growth rate of gross domestic product (GDP) is reviewed around 8.75 per cent plus against 7.4 per cent in the previous year. The International Monetary Fund (IMF) indication of India’s GDP is much higher at a growth rate of as high as 9.7 per cent. The economy of India is one of the most favorable economies in the world as of now. This higher growth trends are creating good opportunities to do business in India.
The Banking system of India has survived well to the global economic crisis. In India, nationalized banks play an important role in banking sector (50.5 per cent of the aggregate deposits and hold the highest share of 50.5 per cent in the total bank credit. Banking facilities both through the foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit.
The economy of India is one of the most robustly growing economies in the world with a huge population base. The recent trends show that the growth rate of Economy of India will grow at around 8.75 per cent for current year. The Indian economy is performing well as the purchasing power parity has increased in the last six months.
Economy of India is ranked the fifth largest economy in the world and third largest GDP in the entire continent of Asia. The world's popular brands have started seeing the economy of India as the potential market for their business expansion.
Conclusively, it is no surprise for India being chosen as one of the most favoured foreign direct investments (FDI) destinations as the economy of India grows in leaps and bounds. The strong banking system proved a blessing during the financial meltdown, even opening the opportunities for doing business in India. Besides, the real estate and infrastructure management turned out to top the private equity (PE) investment sector at 23 per cent of the total with US$ 99.36 million, according to Deal tracker October 2010, Grant Thornton.
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2010-Nov-19 - The Positive Economic Growth in India
The economic growth in India is on a rampant move with Mr Pranab Mukherjee hoping the gross domestic product to reach 9 per cent as he said while addressing the India Economic Summit (IES) 2010.The economic growth in India is all set to surpass the developed countries as it rides high on back of manufacturing and an overall positive investment climate in India. The companies in India are all set to harness the potentials being created by the robust economic growth in India. The foreign companies in India are glad to be part of the investment climate in India, as the economies of the developed countries struggle to stay intact.
The investment climate in India is also representative of the growing Indian economy and the prospering business opportunities in India. The soaring sales being highlighted by the companies in India are reflective of the potentials of the investment climate in India. The investment climate in India is very much dependent on the consumer and the Economic Growth in India is boosting on basis of the latter. The economic growth in India is also ascertain to India's foreign exchange reserves, which have crossed the US$ 300 billion mark for the first time since August 2008. The data in itself represents the positive investment climate in India and the economic growth in India.
Furthermore, economic growth in India's merchandise exports will cross the US$ 200 billion target for 2010-11 and the Government is working with the industry to double India's exports of goods and services by 2014, said Mr Anand Sharma, Union Minister of Commerce and Industry. The economic growth in India had registered a growth rate of 8.8 per cent in the first quarter of 2010. The investment climate in India is moving positively and is assisting to improvise the economic growth in India to achieve the double digits.
Significantly, with the two-way trade between India and the United States, expected to reach US$ 50 billion in 2010-11, with investments moving in both directions, said India's Ambassador to the US, Meera Shankar. Thus, the investment climate in India is dependent on various factors including the positive attitude of the Indian Governments, besides the healthy competition environment as mooted by the Companies in India. The overall image of the economic growth in India is favourable especially in terms of the investment climate in India.
India's infrastructure sector output grew 2.5 per cent in September 2010 from a year earlier, slower than the upwardly revised annual growth of 3.9 per cent in August, as per the Government data. The Investment climate India is also directly proportional to the demand and supply. The increasing consumer awareness and the ability to compare and ask for the best, in addition to the increasing economic growth is representative of the positive economic growth in India. The investment climate in India is an indicator of a boosting economic growth in India. Companies in India are representative of the investment climate in India, which is a harbinger of the growing economy and confirm the goal of the double digit growth as a reality.
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2010-Nov-3 - Infrastructure and the Investment climate in India
India economy seems to be in its most positive note of development, as it witnesses overall infrastructure development, with companies in India and that from abroad demanding better infrastructure quality. The tempting and prosperous investment climate in India is reaching out to all corners of the globe. The investment climate in India is the most conducive market for companies to invest especially with focus on infrastructure sector which has given an impetus to the companies in India.The companies in India are utilizing the potential created by availability of better infrastructure developments.
The recently held Commonwealth Games (CWG) also led to increased Infrastructure developments with regard not only to flyovers, metro lines, a new airport terminal but also infrastructure related to Sports. These infrastructure developments have created a much healthy investment climate in India, not only for the companies in India but also for companies coming from abroad and investing in India.
It is on these lines that the globe has become a more accessible place for companies in India including infrastructure developments related to IT. Significantly, Mr Pranab Mukherjee, Finance Minister expects around 50 per cent of the total spending on infrastructure to come from the private sector by 2012. The great advantaged of infrastructure is not only better transportation, accessibility or connectivity but also helps in improving the investment climate in India. Recently, riding on the investment companies in India, RITES (Rail India Technical and Economic Services) has expressed interest in offering its services in the infrastructure development including airports, roads, ports, railways, and mass rapid transit programmes in Kenya.
The Investment climate in India is one of the most significant factors especially during the global meltdown period. The infrastructure in India is coming to the international standards as the companies in India are ready to provide and compete the global markets besides the domestic markets.
Furthermore, the infrastructure developments in the Science and Technology sector is also reaching new heights and it is these infrastructure developments, which are leading the companies in India are witnessing a surge in funds from FII’s. Additionally companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is the science and technology sector, which forever provides inputs to the investment climate in India a boost.
Significantly, the science and technology sector includes nano technology, renewable energy, space sector besides other infrastructure related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure will attract the foreign firms to have their respective companies in India, besides reaping the benefits of the lucrative investment climate in India. Thus, concluding the investment climate in India to be of great potentials, which is offering potentials in infrastructure developments over a large base of sectors.
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2010-Oct-27 - Science and Technology
With the facilitation from the Indian government and the relatively aloof economy during the recession, the advent of various Fast moving consumer goods (FMCG) companies in India is being witnessed. The FMCG forms a concrete part of every individual’s life. The companies in India are in a forever race to upbeat their opponents. It may be the case of Coco- Cola versus Pepsi or Bournvita versus Horlicks. The companies are foraying into the Indian market with their products in order to tap the vast middle class base of India.
The major FMCG companies in India are planning to invest over Rs 1,800 crore (US$ 395.2 million) in the next few months. The FMCG intend to provide additional option to the consumer. Keeping the lead, Fast moving consumer goods companies are also looking forward to spend upon research and technology (R&D), with Nestle, another FMCG major plans to invest Rs 230 crore to set up its first R&D centre in India at Manesar in adjoining Gurgaon district. Additionally the telecom sector major, Bharti Enterprises, plans to foray into the retail sector by forming a joint venture (JV) with the Del Monte Pacific arm, DMPL India, looking to invest Rs 200 crore (US$ 43.25 million). FMCG sector in India is witnessing large amount of investments from various countries. Also, the foreign FMCG companies find India as a suitable investment destination.
Furthermore, telecom sector in India is witnessing new heights with GSM operators adding a whopping 13.5 million mobile subscribers in August 2010 taking the total tally to 481 million subscribers. In addition, according to the telecom sector authority, Telecom Regulatory Authority of India (TRAI), the wireless user base rose by 2.66 percent to 652.42 million in July 2010. The telecom sector in India has been recording new heights ever since the roll-out of the third generation (3G) services. Fresh impetus has been experienced in the Indian telecom sector with the operators of the telecom sector making inroads in the Indian market. Furthermore, the telecom sector is also witnessing new innovations and technology developments in reference to the mobile value added services (VAS) include text or SMS, menu-based services, downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. The science and technology sector in India is in a mood to capture new heights, as it flows with the Space Vision 2025. A new ignition has been ignited in the country’s research and technology sector with India signing landmark civil nuclear deal with various countries.
Significantly, India has been venturing actively into the dimensions of science and technology. The various organizations like Indian Space Research Organization (ISRO) are being fully supported by the Indian government in their new ventures in science and technology segment. The most attention grabbing news, being that of finalization of seven payloads that will go on the second lunar mission, Chandrayaan-2, by the National Committee of Experts, as per a press release of ISRO. Another major, science and technology development in India was the setting up of the world record by flight testing the supersonic cruise missile BrahMos off the Orissa coast.
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2010-Oct-15 - Increasing Investment Climate and Business Opportunities in India
India is basking with the spotlight on the investment climate, as it sustained its economic growth through the global recession downturn. The business opportunities in India gave the foreign investors an impetus to look afresh at the market. The South Asian market, in particular India and China on a whole has been the horses to cross through this difficult phase of the economic meltdown. The infrastructure and the related sectors made the basis of the investment climate in India, with more and more companies coming in to rope in the benefits of the industry. The infrastructure related business opportunities in India witnessed a high requirement as the various sector including roads, railways, ports etc composing the infrastructure sector experienced a surge in the investments. Recently, Mr Nath, Minister for the Highways, estimated private investments in the road sector (infrastructure) to be at US$ 41 billion.
Witnessing robust growth in the Indian economy, the investment climate in India is also witnessing a new high. The business opportunities in India backed by favourable policies and schemes by the Indian government are all making the Investment climate in India to be conducive for the investors to invest in sectors like infrastructure, automobile, education, real estate besides others.
The Infrastructure related business opportunities in India is witnessing a revolution with a heightened interest from all states to improve upon the infrastructure, as infrastructure emerge as the key ingredient for attracting the investors to explore the potential of the investment climate in India and to make utmost use of the business opportunities in India. Another area of infrastructure, receiving greater impetus is the ports. This infrastructure component is seeing a new trend of improvised and sophisticated intelligent systems on account of new technology and also cause of increasing business opportunities in India through the water front.
Additionally, the vicious circle of growth is also helping the employment rate in India and thereby increasing the expenditure capacities of the households. The relaxed foreign direct investments (FDI) have led to an increase in the business opportunities in India with a raise in the number of merger and acquisitions (M&A) and joint ventures (JV).
Moreover, the automobiles sector in India is witnessing a renaissance with numerous foreign companies entering in a JV and also propagating the Indian infrastructure besides setting up their automobiles manufacturing units to enhance the Indian economy. The investment climate in India especially with regard to the automobiles sector has witnessed a robust growth so much so that India is all set to replace Japan to become the largest automobiles hub for the compact car.
Conclusively, the investment climate of India has become more open to investments besides Indian government is taking a step forward to increase the potential of the business opportunities in India. The focus for India is to develop its infrastructure along with strengthening the basic economic growth, so as to avoid any form of economic downturn as witnessed by the US and the developed nations. Thus, the conducive investment climate in India is fostering the increasing business opportunities in India to promote more investments globally to India.
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2010-Oct-15 - India’s Growth Sectors
As per a recent study on corporate investments by the Reserve Bank of India, the investment in infrastructure is higher at 53 per cent of the cost in FY’10 as compared to the 45 per cent in FY’09. Power and telecom accounted for over half of the cost of all projects. The total investment in the infrastructure sector stood at Rs 2,95,805 crore in FY’10.
Among the segments of infrastructure sector, the power sector attracted the maximum investment to the amount of Rs 1,68,326 crore, telecom at Rs 1,17,689 crore, metal and metal products at Rs 1,12, 732 crore, construction at Rs 47, 636 crore and mining and quarrying at Rs 14, 009 crore.
A lot of corporate investment was witnessed in metals and metal products with a share of 20.3 per cent, followed by construction projects and cement among the various infrastructure segments.
The investment was predominantly directed towards the power sector. The infrastructure sector also observed a continued thrust on public private partnership according to the study and had a positive impact on stimulating investment in power, telecom and construction projects in the infrastructure sector.
India’s telecom sector witnessed an increase in user base by 17.98 million users in June 2010. The telephone subscriber base in the country’s telecom sector went up to 671.69 million. India’s telecom sector is one of the largest telecom markets in the world and is estimated to touch 700 million subscribers by 2012. As per the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the Indian telecom sector stood at 653.92 million as on May 31, 2010 thereby recording an increase of 2.49 per cent from 638.05 million in April 2010. Recently, the telecom infrastructure firm Quippo-WTTIL has signed a deal with IBM to provide technical support. The Indian Telecom sector is among the most growing sectors in the country.
The automobiles sector in the country has witnessed an upsurge due to the burgeoning middle class. The car sales have increased and India’s automobile sector is likely to become the top ten markets for the company globally by 2011. India’s automobiles sector is an emerging favorite investment destination for automobiles manufacturers.
In the tractor segment in the Automobiles sector, Mahindra and Mahindra (M&M) has become the world's top tractor company by selling a record of 1.59 lakh tractors in 2009 and surpassed John Deere of the US.
The growing Indian Telecommunications network is the second largest in the world with more than 621 million users. The Liberalization process in India primarily allowed various private telecom players for value added service and later on with the growing Indian Economy, India is one of the manufacturing hubs for many Telecom Companies. An attractive trade and investment policy and lucrative incentives for foreign collaborations have made India the most attractive markets for the telecom equipment suppliers and service providers.
The telecom sector in India has undergone a major process of transformation with significant policy reforms. India offers an unprecedented opportunity for infrastructure vendors, telecom service operators, manufacturers and associated services companies. A host of factors are contributing to enlarged opportunities for growth and investment in the Indian telecom sector. However, the Indian Telecom market is yet to reach many geographical locations, there are yet load of opportunities for more and more telecom operators to invest in the Indian Telecom Sector.
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2010-Aug-31 - Companies in India
Various companies in India are foraying into joint ventures (JV) or are making investments abroad to increase their global footprints. Companies in India like Adani Enterprises, has acquired an Australian coal asset of Linc Energy in a cash and royalty deal worth US$ 2.7 billion (Rs 12,500 crore). Companies in India have marked their presence globally.
Furthermore, information technology (IT) service providers, Cognizant, Tata Consultancy Services (TCS) and Infosys have topped the latest ranking of service providers in Europe, in a survey done by EquaTerra, an IT advisory service provider. Pharmaceutical companies in India have also increased their penetration in the US generic market. Companies in India like Lupin Pharmaceuticals, Zydus Cadila, Glenmark, Aurobindo, and Torrent Pharma have increased their ranking in US generic market, as per the data released by IMS Health, a global market research agency.
Following the same line of thought, the Fast Moving Consumer Goods(FMCG) companies are also foraying into acquisitions to increase their global footprints. The FMCG, Marico Limited has acquired the over-the-counter healthcare brand, Ingwe at an estimated investment of Rs 10 crore (US$ 2.14 million) through its subsidiary, Marico South Africa (MSA).
Similarly, the FMCG company, Dabur India Ltd has announced a US$ 69 million acquisition of Turkish personal care products company Hobi Kozemtik Group. The acquisition of Hobi Kozmetik is in line with Dabur's strategy to aggressively expand its scale of operations and strengthen its presence in the FMCG space across the globe. Looking forward the FMCG firm, Godrej Hershey, a 51:49 joint venture between the Godrej Group and American chocolate maker Hershey’s, plans to roll out some key brands from abroad — Kisses, Reese’s and Hershey’s Chocolate — in the country.
The telecom sector in India is experiencing a push with more and more mobile phone companies venturing into the indigenization effort by bringing global component vendors to set shop in India. The move is part of a strategy to make India a global manufacturing hub for mobile phones, rather than just undertake their assembly. The telecom sector further received an impetus with Pune-based anti-virus solution provider, Quick Heal Technologies Pvt Ltd launching it's ‘PC2Mobile Scan', which provides for virus-scan of mobile phones by connecting them to a PC or a laptop.
The Science and Technology in India will witness an important development with Indian Space Research Organization (ISRO) planning to launch SARAL by 2011, a satellite to monitor sea water levels made in collaboration with the French National Space Agency. Moreover, Mr Praful Patel, Minister for Civil Aviation has launched the final operational phase of the Global Positioning System (GPS) Aided Geo Augmented Navigation system (GAGAN) to further boost the science and technology sector.
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2010-Jul-19 - Real Estate in India
According to the Department of Industrial Policy and Promotion (DIPP), FDI flows into housing and real estate in India in April 2009-January 2010 stood at US$ 2649 million. FDI flows into housing and real estate in April 2000-January 2010 stood at US$ 8161.31 million.
According to a latest industry body report, foreign direct investment (FDI) in real estate in India will increase to US$ 25 billion in the next 10 years, from present US$ 4 billion on the back of increasing recognition as an infrastructure service driving the economic growth engine of the country.
Recently, a discussion draft of the Real Estate (Regulation of Development) Act, referred as the Real Estate Bill, was released by the Union Ministry of Housing and Urban Poverty Alleviation. The objective of the Real Estate Bill is to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction.
Reserve Bank of India recently revised the norms for urban cooperative banks (UCBs) for giving loans to the housing and real estate sector. According to RBI, working capital loans to small contractors against hypothecation of construction material are exempted from the existing norms that allow UCBs to use 15 per cent of the total deposits for giving loans for housing and commercial real estate in India.
The Reserve Bank has reworked the rule for aggregate limit for housing finance, which allows urban banks to use up to 15 per cent of deposits to provide housing, real estate and CRE loans.
Furthermore, real estate companies will benefit from the demand for residential and office space in Tier-II and Tier-III cities and have planned various projects in 2010-11. DLF, the largest realty firm serving the real estate sector, opines that economic growth is faster in the smaller cities and hence will create more demand for real estate.
Additionally, Ansal Properties is also executing ongoing residential projects in Jaipur, Jodhpur, Agra, Ajmer, Kundli and Panipat, among other cities enhancing the Real Estate development in the country . In 2010-11, the company is planning to launch a million sq ft area in a commercial project in Lucknow for office buildings and a shopping mall.
Also, real estate major DLF, has announced that Caraf Builders & Constructions has raised its stake in DLF Assets (DAL) to 91 per cent. Caraf is involved in the acquisition and development of real estate properties in India. The company holds four rent-yielding properties in Gurgaon, Kolkata and Chandigarh. DAL is a co-developer for four IT/ITES Special Economic Zones (SEZs) based in Gurgaon, Chennai and Hyderabad.
Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Real Estate Industry and Real Estate in India
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2010-May-28 - Booming Business Sectors in India
The information technology IT spend in India is expected to touch US$ 67 billion in 2010, an increase of 14.1 per cent from 2009, according to the research firm Gartner Inc. By 2013, the IT market in India is expected to grow 11 per cent from 2009-levels. The growth will be driven by IT services, telecommunications, software and computing hardware. The domestic IT services sector, at US$ 6.1 billion, accounted for more than 10 per cent of the overall domestic information, communication and technology (ICT) market in India in 2009. It is expected to witness the strongest growth at 17.6 per cent among the four sectors.
The Indian government’s focus on infrastructure projects with IT dimensions will be a strong driver for overall IT growth within the country, according to Aman Munglani, principal research analyst, Gartner Inc. He also added that the growth of India's Information Technology sector has been driven largely by domestic consumption, with the Indian PC market expected to grow 19 per cent in 2010 and by more than 21 per cent in 2011.
India is among the top four markets in Asia-Pacific, both in size and in its growth prospects for the next five years. The Indian IT security market is forecast to grow more than 20 per cent in 2010. Indian telecommunications services market revenue will reach US$ 41.4 billion in 2013, growing 7 per cent from 2009 to 2013.India’s Telecom sector will grow at a decent rate over long term, said Peter Elston, Strategist at Aberdeen Asset Management. He added that India's penetration rate although has been growing very strongly.
Fast and moving consumer goods (FMCG) majors, Wipro Consumer Care and Lighting (WCCL) and Godrej Consumer Products Ltd (GCPL) are scripting new strategies to sustain growth momentum in competitive markets encouraged by the fourth quarter results. Wipro Consumer Care has kickstarted operations at its new manufacturing facility in Himachal Pradesh and the FMCG firm has invested around Rs 70 crore to set up this manufacturing unit which is now operational. Godrej Consumer Products, part of the Rs 12,000-crore Godrej Group, is chalking out a three-pronged strategy. It will lay stress on rural initiatives, extension of manufacturing facilities and hike in advertisement budget this fiscal. (Apr 28 – for conversion)
India's premier electricity museum, CLP Electrodrome, has been inaugurated at the Science City in Ahmedabad by Gujarat Chief Minister, mr Narendra Modi. A joint initiative of the state department of science and technology, Gujarat Science City and CLP the largest foreign investor in the Indian power sector CLP Electrodrome is the state-of-the-art and highly interactive museum of electricity.
Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology
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2010-May-27 - Science and Technology and updates from IT and Telecom
The Indo-German Science and Technology Centre (IGSTC) will be established in about two month’s time in New Delhi, it has been stated by T. Ramasami, Secretary, Department of Science and Technology (DST) and the German Parliamentary Secretary after the 8th Indo-German Committee on Science and Technology. It has been announced by the German President Horst Koehler that 2011-12 will be a German-Indian year that will showcase German politics, culture, art and science and technology.
India’s high status in the field of science and technology research came in for mention at the India Eco Summit where the panelists discussed whether the country had the potential to become a science and technology innovation hub in the near future. The Australian and Indian governments have jointly launched a US$ 100 million science and technology collaboration project that touches on the importance of green science and technology in tackling challenges in water, energy, health and environment.
The Indian telecom sector has added 170 million phone connections in 2009, taking the total subscriber base to 550 million. At present, the Indian telecom market is the fastest growing in the world with the lowest tariffs and market leaders in the Indian telecom sector. The Indian Telecom Analysis (2008-2012) report by RNCOS Industry Research Solutions shows that mobile telecom segment has surpassed all other segments in the Indian telecom sector. Meanwhile the view has been expressed that a considerable degree of consolidation is due to take place in the telecom sector with the end of the tariff war among players in the Indian telecom sector. In the mean time, a big player in the Indian telecom sector, Bharti Airtel, continues to work to make its presence in the African telecom sector with its pursuit of Kuwaiti telecom company, Zain.
In other updates, a international telecom company, Quippo Telecom Infrastructure and Wireless TT Info Services has acquired the tower business of telecom company, Tata Teleservices (Maharashtra) Ltd. Simply North America accounts for nearly 60 per cent of India's information technology export basket and top-tier information technology companies such as Infosys, Wipro and HCL Technologies appear to be aggressively ramping up their delivery capabilities in the region. While the information technology company Infosys Technologies has bought McCamish Systems based in Georgia, HCL Technologies has completed the acquisition and of a data centre in New Jersey.
Meanwhile the information technology (IT) and and ITeS Industry Association of AP has estimated a 20 per cent increase in exports from Andhra Pradesh in the next financial year. In other developments, California-based information technology company NComputing is looking at Tier II and III cities of Uttar Pradesh for growth. Information technology exports from the state of Gujarat are expected to grow by 15-20 per cent in the financial year end 2009-10, according to Ravi Saxena, principal secretary, Department, of Science and Technology (DST), Government of Gujarat (GoG).
Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology
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2010-May-26 - Information Technology
North America accounts for nearly 60 per cent of India's IT export basket. Coinciding with a turnaround in business sentiments in its largest market, top-tier IT companies such as Infosys, Wipro and HCL Technologies appear to be aggressively ramping up North America-based delivery capabilities. While Infosys Technologies has bought McCamish Systems based in Atlanta, Georgia, HCL Technologies has completed the acquisition and upgradation of a data centre in Parsippany, New Jersey. Additionally, Cognizant has announced the expansion of two of its delivery centers in Phoenix (Arizona) and more recently in Toronto, Canada.
Forrester recently predicted that the US tech market will start to recover from downturn in the fourth quarter of 2009, and that the global tech market will follow suit next year.
Recent Developments - HCL Technologies' New Jersey centre enables delivery of data centre services, including near-shore co-location solutions, business continuity planning, cloud computing and mainframe management.
- For Cognizant, the operational expansion of Phoenix delivery centre was primarily to add BPO services to the existing roster of application development, application maintenance, testing and related services. It will hire over 100 full-time professionals at the Phoenix delivery centre over 12 months and take the overall headcount at that centre to over 400.
- India’s fifth-largest IT Company, HCL Technologies has announced a five-year deal with media conglomerate News Corp for managing its data centres and IT across UK newspapers like The Times, the Sun and The Sunday Times.
- IBM India with regional headquarters in Bangalore and offices in 14 cities, including regional offices in New Delhi, Mumbai, Kolkata and Chennai, plans to scale up its business process outsourcing (BPO) operations in the country and would recruit 5,000 people to support the expansion. IBM India has recently bagged contracts in services sector from domestic companies such as state-run Telecommunications Consultants India Limited, Sardar Bhiladwala Pardi People's Cooperative Bank in Gujarat and Madhav Nagrik Sahakari Cooperative Bank in Rajasthan
- Digicable, a major cable and broadband distribution player in India, has signed a 10-year strategic outsourcing agreement with IBM at an initial outlay of Rs 380 crore (US$ 83 million). This is one of the most significant deals signed by a media and entertainment company in India.
- Walmart has selected three IT vendors in India—Infosys Technologies , Cognizant Technology Solutions and UST Global—for multi-year contracts worth over US$ 600 million (around Rs 2,750 crore). This development is expected to boost the IT outsourcing landscape in India, given that Walmart typically prefers to develop its retail applications in-house.
- Chip maker Intel has launched a concept version of 48 core Intel processor—‘Single-chip Cloud Computer (SCC), an experimental prototype designed as a concept vehicle for parallel software research. A team of about 15 engineers from its lab in Bangalore contributed in terms of circuit/physical design of the IA (Intel architecture) core, memory controller logic and mesh interconnect network.
- As part of its Corporate Service Corps (CSC) programme, IBM has joined hands with Tribal Development Department of Gujarat for a development project aimed at upliftment of tribals in Sasan area of Gir forest. IBM will help the government department scout appropriate private sector partner for setting up a theme resort at Sasan.
- In a move to strengthen its capabilities in business analytics and optimization segment of the IT industry, the US$ 104-billion IBM Corporation has announced the creation of a new Business Analytics Centre of Competency in Bangalore. The proposed Bangalore centre will also support IBM’s network of global Business Analytics Solutions Centres in Berlin, Beijing, New York and Tokyo, soon to be joined by Washington DC and London.
- IBM unveiled the Lotus Center for Advanced Collaboration (LCAC), at the IBM Software Lab in Pune. Positioned as a regional hub for Lotus Advanced collaboration strategy and solutions, the centre, the only one of its kind in Asia-Pacific, will host dedicated technical expertise to help customers and partners adopt collaboration technology in their environment.
Road ahead
In the Union Budget presented in July, the Government had extended the sunset clause for the Income Tax holiday under Section 10A/B by one year, allowing the IT companies a breather till March 2011.
Besides the tax holiday, STP scheme also allows other benefits such as a single-window clearance and 100 per cent Customs duty exemption on imports of capital equipment among others.
The Indian and German governments have agreed to promote a new bilateral technical cooperation initiative to support the introduction of high quality eGovernance and eBusiness services in the IT-SMEs (small and medium-sized enterprises) sector. The project “Economic Development though eGovernance” is jointly promoted by the Directorate for Standardization, Testing and Quality Certification (STQC) of the Ministry of Communication and Information Technology (MCIT) and GTZ. The objective of this project is to improve the competitiveness of IT-SMEs through the use of eGovernance , eBusiness and ICT services.
The spending on IT in India will touch US$ 22.6 billion in 2009 and is expected to grow to US$ 37.6 billion by 2013, as per a study by IT research firm International Data Corporation (IDC) and Microsoft Corp. In addition, IT as a percentage of GDP will increase from 1.8 per cent to 2.3 per cent, as per the study.
The report said the IT market would drive the creation of nearly 7,000 new businesses and 3,24,000 jobs between the end of 2009 and the end of 2013. Most new companies will be small and locally owned. The study applies IDC’s Economic Impact Model, which assesses the IT industry’s effect on job creation, company formation, local IT spending and tax revenues in addition to assessing Microsoft’s partner ecosystem. The study’s spending figures accounted for hardware, software, services and data networking expenditures by consumers, businesses, governments and educational institutions within each country.
Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology
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2010-May-25 - The Indian telecom sector – moving into 2010
The year 2009, saw the Indian telecom sector add 170 million phone connections to take the total subscriber base to 550 million. T R Dua, Deputy Director General of Cellular Operators Association of India (COAI), said, “It is indeed a matter of great satisfaction that the Indian telecom industry continued to grow even when most other sectors grappled with a demand slowdown.” Studies have shown that in India, the telecom sector has been a major enabler of economic growth. An Indian Council for Research on International Economic Relations (ICRIER) study has shown that states with higher mobile penetration are forecast to grow faster. At present, the Indian telecom market is the fastest growing in the world with the lowest tariffs and currently market leaders in the Indian telecom sector are launching plans to compete with new operators. The year 2009 saw telecom players shift from per minute billing to per second billing.
The Indian Telecom Analysis (2008-2012) report by RNCOS Industry Research Solutions shows that mobile telecom segment has surpassed all other segments in the Indian telecom sector. (The mobile telecom market is forecast to grow at a compound annual growth rate of around 15 per cent between 2009-10 and 2013-14.) The report also indicates that the advance of services such as Internet Protocol television (IPTV) and 3G are fuelling the growth of the Indian telecom sector. Additionally, with 3G auctions scheduled for February 13, 2010 is expected to set in motion the quick adoption of 3G-enabled handsets.
Meanwhile, Bangladesh's telecom regulator granted approval to Indian telecom operator, Bharti Airtel’s US$ 300 million proposed investment for a 70 per cent stake in the Abu Dhabi Group's Warid Telecom of Bangladesh. This approval makes the company the first Indian operator from the Indian telecom sector to foray into Bangladesh's mobile market.
Indian telecom companies are following the trend of global telecom companies such as France Telecom, AT&T and Vodafone to capitalise on the excitement in the mobile applications space—mobile service provider Aircel has partnered Infosys Technologies to launch the first mobile application sector in the Indian telecom sector. Also, Airtel is considering partnering software company IBM to launch app stores in 2010. This signals the increasing recognition among operators in the Indian telecom sector that the way ahead for mobile technology lies with independent developers.
In another development in the Indian telecom sector, Tata Teleservices Ltd (TTSL) has partnered Novatium Solutions Ltd to launch what is said to be the country’s first cloud computing service over wireless broadband, ‘Nova Navigator'. The Navigator is being described as a ‘zero maintenance' access device with features such as 3G support and plug and play printer support and multimedia support.
In a development that will provide fundamental benefits to services offered by the Indian telecom sector, Tata Communications and China Telecom Corp are to jointly build a 500-km optical fibre cable network between the two countries in 2010. Along with the investments of Tata Communications in other subsea cable investments, the India-China Terrestrial Cable will provide high-speed connectivity between Asia and Europe.
Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology
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2009-Dec-29 - India Growing In Information Technology,Healthcare And Real Estate Sector.
Leading information technology companies in India are meanwhile increasing their presence in North America, in step with the improving business climate in the region. Top-tier information technology companies which are increasing their delivery capabilities in North America, includeHCL Technologies which concluded acquisition and expansion of its Parsippany, New Jersey data centre. The North America region currently accounts for 60 per cent of India's information technology export basket. Information technology company, Cognizant, has similarly announced the expansion of its US delivery centres in Toronto and Phoenix (Arizona).
India’s top-ranking status in the field of basic research came in for mention at the India Eco Summit held recently, where the panelists discussed whether, and how, India could become an innovation hub in the near future, given India’s strengths in science and tech and research and development. The country made a significant stride in science and technology with Indian researchers succeeding in sequencing the entire genome of a human being. The genome sequencing was undertaken by the Institute of Genomics and Integrative Biology, part of the Council of Scientific and Industrial Research (CSIR). In another development that would have a bearing on innovative science and technology prospects for Indian companies—on the sidelines of the climate change conference at Copenhagen, India’s proposal for a global network of innovation centres for climate-friendly technologies received wide consensus.
Leading manufacturers of automobiles in India, posted record monthly sales for the month of November 2009, even as car makers and two-wheeler companies improved on their sales posted in earlier months. Two of the leading manufacturers of automobiles in India, Maruti Suzuki and Hyundai Motor India reported record monthly sales of 87,807 units and 55,265 units respectively for the month of November 2009. Major manufacturers of automobiles are seeing their India operations contribute significantly to the company’s global operations. For example, Hyundai’s India subsidiary contributes between 15 per cent and 20 per cent to the company’s global turnover.
India’s infrastructure segment has received a boost with representatives from the Power Grid Corporation, the India Infrastructure Finance Co Ltd (IIFCL), the World Bank and the Government of India, signing loan agreements for projects of a total value of US$ 4.2 billion in the month of October 2009. In another fillip to the country’s infrastructure that is certain to speed up infrastructure projects through the route of public-private partnership, the Asian Development Bank (ADB) has decided to provide close to US$ 700 million in loans as part of the second India infrastructure project financing facility.
According to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, India heads the top real estate investment markets for the year 2010. The report, which is based on the views of over 270 international real estate professionals, revealed that India, particularly the Indian cities of Mumbai and Delhi were viewed as good destinations with residential properties seen as more attractive sectors. ICICI Bank, a leading private bank, has stated that it was focussing on the home loans segment on the back of a recovery in the real estate segment. HDFC, a top lender of home loans, has said that it expects loan disbursals in the housing sector to remain strong in the current fiscal (FY 2010). HDFC Vice-Chairman and Managing Director, Keki Mistry, said, “Loan disbursals (in the housing sector) remain very strong. We expect credit growth in excess of 20 per cent.”HDFC Bank, has for its own part, made news in the banking system. HDFC Bank has been named the strongest bank in the Asia-Pacific region, in a survey conducted by Asian Banker, which provides information for the financial services industry. Other Indian banks that featured in the ranking include Punjab National Bank (PNB) and Union Bank of India.
The healthcare sector in India is projected to grow to US$ 77 billion mark by 2012, up 23 per cent from the current size, according to a recently released study. The growth in the healthcare sector in India would come on the back of growth in healthcare facilities in the public and private sector as well as growth in medical diagnostic and path labs, as well as growth in the medical insurance sector. The Indian life insurance industry is on a high growth trajectory, posting a double-digit growth figure of 35.7 per cent year-on-year in October 2009, on the back of high inflows in premiums of the first year.
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2009-Dec-2 - Fast Moving Consumer Goods
Driven by the fast moving consumer goods (FMCG) and apparel segments, the Indian retail market which is currently estimated to be around US$ 350 billion is expected to witness growth by nine per cent annually touching US$ 521 billion by 2012. Bharti Retail President and Chief Operating Officer (COO), Vinod Sawhny, speaking during an industry event, said, "FMCG and apparel sectors contribute the maximum to the growth of the retail market in India." He added, "FMCG in particular has a huge potential to grow... and this will ensure a growth rate of nine per cent year-on-year for the retail sector, which is likely to touch US$ 521 billion by 2012."
Meanwhile, retail companies in India are seeing their margins from FMCG companies go up from 14-15 per cent to 17-19 per cent as they compete for shelf space with retailers’ private labels. Some FMCG companies say that as retailers acquire scale, they also deliver supply chain efficiency and organized scale. The Indian food market, which at US$ 182 billion accounts for about two thirds of the total Indian retail market, has seen the entry of Yum! Restaurants which announced it will invest up to US$ 150 million (about Rs 700 crore) in India where it will compete with companies in India such as Nirulas and Haldiram in the country's organized food and beverage retail sector.
In a recent development that is seen as the global emergence of the Indian FMCG sector, the consumer care and lighting division of Wipro announced its acquisition of the Yardley business in Asia, Middle East, Australasia and certain African markets for US$ 45.5 million from the United Kingdom-based Lornamead Group. Meanwhile the IT division of Wipro, Wipro Technologies, joined some large IT companies in India, including Tata Consulting Services (TCS) and Infosys, in beating estimates for the second quarter of the year 2009. IT companies in India are also seeing the return of big deals with HCL Technologies, Wipro, and Infosys bagging significant deals so far in 2009.
The company’s information technology arm, Wipro Technologies, meanwhile saw its second quarter profits rise 19 per cent to Rs1,162 crore, beating analysts’ estimates. This increase in profits for the company come on the back of significant overseas deal wins and improved demand for services in the United States. Indian information technology companies, Infosys and TCS also posted strong second quarter results and forecast higher growth. In the sphere of (informational technology enabled services) ITeS, Infosys BPO has acquired the US company McCamish for an upfront consideration of US$38 million.
India’s top-ranking status in the field of basic research came in for mention at the India Eco Summit held recently, where the panelists discussed whether, and how, India could become an innovation hub in the near future, given India’s strengths in science and technology and research and development. The governments of Australia and India have launched a US$ 100 million collaboration project on science and technology including green technology to combat the challenges in water, energy, health and environment as a result of climate change.
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2009-Aug-21 - Indian retail to see better days with revival in economy
The retail business in India is witnessing resurgence with novel ideas like revenue-sharing with realtors coming into prominence. The India advantage still holds in terms of lowered real estate prices helping retailers to consolidate their businesses. Several government policies released in the recent past is helping companies to push growth into positive territory.
Spencer’s, the retail arm of the Rs 15,000-crore RPG Enterprises, is pumping in Rs 100 crore to open 10 to 12 large format stores across the country during 2009-10. “These stores would be hypermarts and supermarts of the size of 10,000 sq ft to 30,000 sq ft and would be located in Chennai, Bangalore, Andhra Pradesh, Kolkata and NCR," said Sanjiv Goenka, vice-chairman of RPG Enterprises. For Spencer's too, Goenka is exploring the option of revenue-sharing model with realty owners for its new stores.
Future Group subsidiary Pantaloon Retail is planning a special purpose vehicle (SPV) to raise up to Rs 500 crore by offloading its non-core assets and is hoping to ensure that its restructuring plans are compliant with foreign direct investment (FDI) policy guidelines. At present, FDI is prohibited in multi-brand retailing, and only 51 per cent FDI is allowed in single-brand stores.
Watch and jewellery retailer, Titan Industries, is scaling up its retail operations to step up its retail presence. It plans to add 40 World of Titan stores across India by the end of 2009-10. It has lined up a slew of marketing initiatives to boost sales, which include 'Titan Exchange Offer 2009'.
AVG Technologies, global anti-virus maker, too is making its various anti-virus suites in several large format retail stores in India. Operating in India through its master distributor, Milestone Interactive, AVG products will now be available at retail outlets such as Croma, HyperCITY, Reliance Digital, jay Sales, Landmark and P3.
Industrial and manufacturing output improving the economic climate in June 2009 has helped overcome the effects of drought, according to the Finance Minister. This has resulted in improved retail sales and performance of several majors.
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2009-Jul-9 - Consumer spending in India on the rise
The Indian fast-moving consumer goods industry, consumer durables and automobiles have responded positively to the sops offered by the Finance Minister, Mr Pranab Mukherjee in the budget for 2009-10. The very nature of the measures taken such as implementation of goods and services tax (GST), removal of excise duty cuts etc. is proving to be favourable for these industries and the indices too shot up indicating improved sentiment. Overall, these sectors reflect the socio-economic conditions in the country the most. With rural spending increasing both by the government and individuals, these sectors are likely to experience growth in the range of 10-18 per cent in the coming years and increase four times over in the next 10 years according to a recent industry research report. Bullish rural growth plans of major fast moving consumer goods ( FMCG) players are helping increase growth. Amit Burman, Vice Chairman, Dabur India, agrees: "Rural India accounts for almost 40 per cent of the industry’s sales. The government’s decision to extend the loan waiver scheme in view of the delay in monsoons and offer subsidised loans (at 6 per cent) for farmers who have paid their dues in time would put more money in their pockets. This move would go a long way in giving the rural economy and consumerism a big boost." Pinakiranjan Mishra, Partner & Industry Leader, Retail & Consumer Products Practice, Ernst & Young, concurs: "This means that a lot of the income in the hands of rural consumers and this will go towards buying consumer products." According to M. S. Banga, president (Foods, HPC) of consumer products giant Unilever, the government's focus on stimulating rural demand and all the measures to put money in the hands of consumers will go a long way. "We are doing well as a nation and from here on, we can only look upwards. Consumption-led focus is a great way to get going. We must remember not many geographies are seeing the kind of growth which we are seeing," said Mr Banga. Consumer electronic majors, such as LG, Samsung, Godrej and Philips, also expect their businesses to strengthen. These companies are working out strategies and products specifically addressing the market, apart from focussing on adding strength to their distribution network there. Samsung plans to expand its sales channel by 25-30 per cent in rural India. Meanwhile, LG has outlined plans to invest around US$ 40 million towards development of entry-level products targeted at rural markets. Presently, the urban markets account for around 50 per cent of sales in the Rs 25,000-crore consumer electronics industry, tier-II and -III towns for 30 per cent from and rural India for the balance 20 per cent. No wonder, the consumers are all out to buy and buy more, and enjoy spending for a change. |
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2009-Jul-2 - Indians looking forward to improving economic performances
Current events and happenings in the country are leading us to believe that a recovery of sorts is occurring, boosting the economic morale in India. Amongst the various Indian industries that have been successful in bucking the global contagion and are showing good numbers are the Indian telecom, banking and biotechnology sectors. The country added over 8 million subscribers during May 2009, taking the total GSM subscriber base to over 30 million, registering a growth of 2.78 per cent. The country’s largest telecom operator, Bharti Airtel that reached the 100 million subscriber mark (fixed line and wireless) achieved a 2.91 per cent growth in its wireless subscriber’s base taking its total wireless subscribers’ count to 99.5 million. Vodafone-Essar, the second largest GSM operator in the country registered a 3.55 per cent growth in its subscriber market share, adding further 2.5 million subscribers. The banking sector especially public sector banks did well enough to garner ample credit and deposits on the back of increased economic and robust market activity. In 2008-09, total advances grew at 17.3 per cent while total deposits grew by 19.8 per cent. Spending on infrastructure and the new fiscal reforms are likely to propel further growth. Mr. Philip Kendall, Senior Sector Manager (International Biotech and Pharma) with the United Kingdom Trade and Investment arm recently observed, “India has a relatively young biotech sector and all the ingredients for growth, such as quality services and businesses”. This is indicative of the milestones that the biotech industry has begun to achieve, what with US-based and European biotech companies wanting a pie in the sector to not only grow but to also buck globally difficult times. The textile industry has in the meanwhile found a savior in form of the newly inducted textiles Minister, Mr. Dayanidhi Maran, who stated that “considering the current developments and technological advancement, it is crucial to evolve a National Fiber Policy. My priority is to get some relief for the industry in the short term. Once the industry picks up, the rest will fall in place.” The perfume industry is witnessing an upheaval with the entry of Giorgio Armani, one of the top luxury apparel and accessories brands, which recently launched its first ever ‘super-luxury’ range of Prive perfumes in India in collaboration with L’Oreal International. It is scheduled to open 10 outlets offering perfumes in the luxury segment across Delhi, Mumbai and Bangalore out of which six will come up by May end. The company will be selling a wide range of eighty fragrances except for its super premium Prive range in Lifestyle and Shopper’s Stop stores. |
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About Me
India offers business opportunities in an ideal investment climate. While its foreign direct investment policies are conducive to setting up business in India, driving the unprecedented growth are resources such as talent, market, and the Indian industry.
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