|
European manufacturing companies look at India for outsourcing
تتطلع الشركات المصنعة الأوروبية إلى الهند
للاستعانة من المصادر الخارجية
After the off-shoring of service economy jobs, it
is now the turn for European manufacturing companies to look to
India for outsourcing vast swathes of their operation. And its
strong record in protecting patents is working to India's
advantage. ‘India Everywhere’, was much more than the fashion
event at the inauguration of the Hannover Industrial Fair. It
was the theme for the fair too, which has brought together over
5,200 of the world’s largest manufacturing companies. This
includes Bharat Forge, Reliance and Ashok Leyland, along with
five state governments.
Eight
new firms join US$ 1 billion club
تلتحق ثمانية مؤسسات جديدة بنادي 1 مليار دولار
أمريكي
Hindustan Copper, BF Utilities, Unitech, Century
Textiles, Kirloskar Brothers, Aban Lloyd Chiles, Balrampur Chini
and Biocon have joined the US$ 1 billion market cap club, taking
the US$ 1 billion membership to 112. These 112 companies
collectively account for 76 per cent market capitalisation of
the Bombay Stock Exchange (BSE). Oil and Natural Gas Corporation
(ONGC), Reliance Industries, National Thermal Power Corporation
(NTPC), TCS and Infosys Technologies have market-cap over $20
billion. ONGC is at top of the list with a market-cap of $42.79
billion. Reliance Industries comes second with a market-cap of
$30.85 billion. NTPC stood at third with a market-cap of $25.52
billion followed by TCS $21.64 billion, Infosys Technologies
$20.12 billion, Wipro $17.61 billion, Bharti Tele-Ventures
$17.29 billion and ITC $16.78 billion. The club's membership is
based on the rupee-dollar exchange rates at the end of each
calendar year.
India,
Germany plan research arm
ترغب الهند والألمانية في تأسيس مركز بحث
In a bid to give a boost to bilateral cooperation
in the field of science and technology, India and Germany have
decided to set up a joint research center, which will also have
private participation. The Indo-German science and technology
research center will have 20 per cent government equity, both
Indian and German, and 30 per cent equity each of German and
Indian enterprises. The centre would be run by private
entrepreneurs and the government would be funding on the basis
of projects.
Auto
parts exports to touch US$ 25 billion by 2015
الهند ستقوم بتصدير قطع غيارات السيارات بقيمة 25
مليار دولار أمريكي إلى عام 2015م
Auto component exports from India are expected to
touch US$ 25 billion by 2015 according to Chairman, Engineering
Export Promotion Council (EEPC), at a business seminar on auto
component sector in India, jointly organised by the ministry of
commerce & industry, EEPC and India Brand Equity Foundation (IBEF)
in Hanover.
Exports of auto components from India have
clocked a record compounded annual growth rate of 33% in the
last 3 years, owing to a huge increase in sourcing of auto
components from India by several developed countries. Many
Indian companies are also snapping up plants and operations
overseas, to gain direct access to global OEMs (Original
Equipment Manufacturers) and expanding their product range,
besides benefiting from outsourcing synergies.
The
challenges of going global
تحديات الاشتثمار العالمي
Ranbaxy Laboratories, India's largest
pharmaceutical company, has taken on global majors as it seeks
to dominate the generics market. Ranbaxy is pursuing a ‘handful’
of acquisition opportunities in US and elsewhere Ranbaxy entered
the US way back in 1995 and has targeted this market to account
for half its revenues — an objective that is close at hand with
US$ 350 million revenues in 2005. Branded drugs worth US$ 55
billion are expected to go off patent in the US alone by 2010,
which can boost Ranbaxy’s exports manifold.
'IFC
to invest over US$ 700 million in 3 years'
شركة أي.ايف. سي. ستقوم باستثمار 700 مليون دولار
أمريكي خلال 3 سنوات
The International Finance Corporation (IFC), a
part of the World Bank, has decided to ramp up investments in
India’s infrastructure sector. For IFC, Russia, Brazil and
India constitute the top markets. India, which has attracted
around $1.3bn of investment from IFC, may soon overtake Brazil
in terms of IFC’s total investments. “During the current
financial year, IFC targets around $150m investment in
infrastructure. As a whole, IFC has decided to invest around
$400-500m in the country in ‘06-07, all sectors put together.
In the current year, IFC’s plan is to invest in four segments —
electricity distribution and generation, road and water. So
far, IFC has invested $300m in India’s infrastructure, and it
plans to significantly ramp up the investments over the next
couple of years.
Russia's MMK to set up US$ 10-billion Orissa steel plant
شركة أيم أيم كيه شركة روسية سوف تقوم بإقامة مصنع
فولاذ في ولاية أوريسا بقيمة 10 مليار دولار أمريكي
After Posco and Mittal Steel, Russian steel major
MMK is all set to enter the Indian market by setting up a 10
million tonne steel plant in Orissa with a total investment of
about US$ 10 billion. Senior officials of the Orissa government
said that a high-level technical delegation of the company
visited three sites in the state last month and have indicated
to start pre-feasibility study about the plant before an MoU is
inked later this year. Magnitogorsh-based MMK is one of Russia's
largest steel companies with installed capacity of about 12 mt.
The company had indicated its plans to set up steel plant during
a meeting of Prime Minister Manmohan Singh with Russian
president Vladimir Putin and industry leaders there. Once MMK
decides to invest in the state, the Orissa government is also
likely to provide it iron ore mines with reserves of about 400
mt for captive use.
India's
performance best in the world
أداء الهند هوالأفضل في العالم
Asian Development Bank President described India
as an unfolding story of development success and assured that
ADB would continue to be a partner in its development. "India
is very much an unfolding story of development success. Its
continued economic and social progress would give a tremendous
boost to the achievement of the millennium goals in Asia and
Pacific region – and for the world as a whole," he said. He
pointed out that meeting the demand for infrastructure to
support the rapid growth and to extend basic services to the
poor was one the greatest development challenges for India. "To
help address this challenge, both ADB's ongoing operations in
India and the proposed program for 2006-08 focus primarily on
infrastructure in the three core areas of transportation, urban
development and energy," he explained. Terming India's economic
performance in recent years among the best in the world, he said
the face of India changed dramatically since 1990 when ADB held
its first annual meeting in the country. "The robust growth is
projected to continue in coming years," he observed. One of the
key factors behind India's success is the widespread and rapid
development of telecommunications and information technology.
Indian small and
medium businesses to invest US$ 134 million on security this
year
الموسسات الصغيرة والمتوسطة ستقوم باستثمار 134
مليون دولار أمريكي في مجال الأمن في هذا العام: إيه.ايم.أي
Small and medium businesses in India are on track
to cross US$ 133.6 million on beefing up their IT security
solutions this year, buoyed by their adoption of sophisticated
enterprise applications and advanced storage solutions. That's a
jump of 53 per cent over last year, which in turn saw infotech
security spending leap 63 per cent over 2004, according to the
latest study by New York-based AMI-Partners. As India's small
and medium businesses (with employee sizes between 1 and 999)
embrace the benefits of Internet access, network connectivity
and increased storage capacity, IT security has become an
important focal point for these businesses.
Direction
for Reforms in India
اتجاه
للإصلاحات في الهند
n
53% of the total Plan Outlay is earmarked for
transport, energy and communication sector ( Rs. 1127 billion in
2005-06).
n
All segments of the Infrastructure sector opened
for 100% FDI, barring Civil Aviation and Telecom where FDI limit
is 49% and 74% respectively.
n
Private Sector investment is growing – Est. Ports
and Road sector alone have attracted private investment worth Rs.
200 billion
n
10 year income tax holiday for infrastructure
projects
n
Income tax exemption on earnings from investing
in infrastructure projects
n
Subscription to debt and equity issued by
infrastructure companies eligible for a 20% income tax
reduction(1)
Fiscal Incentives & Moderate Tax Structure
n
10 year income tax holiday for infrastructure
projects
n
Income tax exemption on earnings from investing
in infrastructure projects
n
Subscription to debt and equity issued by
infrastructure companies eligible for a 20% income tax
reduction(1)
n
Regulatory Authorities, independent to all
stakeholders, including Government, are being evolved. Telecom
and Power Sectors have full fledged Regulatory Authorities.
n
Equity Participation
n
SPVs
n
Annuity
n
Prior approval from Ministry of Environment in
principle
n
Viability Gap Funding
n
Priority Sector Lending
n
Grants
FDI in Infrastructure Investments into India
FDI upto 100% Permitted
Ø
Roads and Highways
Ø
Ports and Harbours
Ø
Electricity Generation, Transmission and
Distribution
Ø
Mass Rapid Transport System
Ø
Industrial Parks/SEZs
Ø
Integrated Townships over 100 Acres
Ø
Hotels & Tourism
Ø
LNG Projects
Ø
Greenfield Airport Ventures
Sectoral Caps
Ø
Telecom
Ø
Domestic Airlines
Ø
Major Existing Airports
Recent Policy Initiatives by the Government
-
Provision of
Viability Gap Funding (VGF)
Ø
A Scheme for Financial Support to PPPs
Ø
Budgetary Provisions
Ø
Roads, bridges, railways, seaports, airports,
waterways
Ø
Power
Ø
Urban transport, water supply, sewerage, solid
waste management
Ø
Infrastructure projects in SEZs
Ø
Convention centres & tourism infrastructure
projects
-
Setting up
of an Infrastructure SPV
Ø
IIFCL, India Infrastructure Finance Company
Limited
Ø
Meet the long term financing requirements of
investors
Ø
Direct lending to eligible projects (preferably
P-P-P)
Ø
Refinance to Banks & FIs
Ø
Back-up of Government guarantee for borrowing by
the SPV.
3. Our endeavors……
Ø
Maintain Policy stability
Ø
Provide a seamless regulatory framework, which
balances the interests of the investors and users
Ø
Develop a market for long-term debt, required for
infrastructure sector.
Ø
Ensure a level-playing field for new
infrastructure-providers
Ø
Streamline clearances and better Centre-State
co-ordination
|
|
India
Inc in investment mood
شركة أي اين سي ترغب في الاستثمار في الهند
Indian industries are back to investment mood
again. Margins are growing, demand is picking up and India Inc
swears by a prosperous future. The investment scenario, which
had looked indifferent only recently is looking brighter once
again following higher industrial growth — index of industrial
production has grown by about 8 per cent during the last two
years compared to an average annual growth of 5.4 per cent
during five years, between 1998-99 to 2003-04. What is
significant is that India Inc’s investment drive this time was
not confined to increasing existing capacity or modernising
production process alone. It now plans to invest in new
projects.
CII to
create 100 new billion-dollar companies
شركة سي أي أي سوف تقوم بتأسيس 100 شركة جديدة
With the economy
getting increasingly externalised, the Confederation of Indian
Industry (CII) was targeting to create 100 new billion-dollar
companies over three years through mentoring Indian companies
from the million-dollar club. This would be achieved through the
repositioning of the country from a low-cost manufacturer to
creative and innovative product developer in order to capture a
greater portion of the world trade. ``The next phase of
competitiveness should be triggered by innovation. India needs
to reposition from a low-cost manufacturer to a creative and
innovative product developer to become the laboratory and design
centre of the world,'' Mr R. Seshasayee, the new President of
CII said, while speaking at his inaugural press meet. ``India's
share of world trade is still in decimals and was just 0.9 per
cent in 2004. This reflects tremendous headroom for further
growth,'' he added.
The
biggest overseas acquisition by an Indian IT company
أكبر الشركات وراء البحار هى شركة هندية في مجال
تقنية المعلومات
The biggest overseas acquisition by an Indian IT
company has come not from the Wipros and Infosys of the world,
but from a Bangalore-based mid-sized IT products company, Subex
Systems. The telecom software products company announced that it
was acquiring UK-based telecom products company Azure Solutions
for US$ 140 million in a cash-cum-stock deal. The cash component
of the deal is rather meagre at about 2-3% of the deal size with
the balance being paid in stocks. Subhash Menon, chairman, Subex,
said. “The small portion of the cash will be paid through our
internal accruals while the remaining will be paid through
stocks.” The acquisition will result in the merger of the two
entities and henceforth, Subex Systems will be known as Subex
Azure. The integration process will take around 10 months
starting June 2006.
Eisai
to invest US$ 44 million in India
شركة عيسائ تقوم باستثمار 44 مليون دولار أمريكي في
الهند
Eisai Pharmaceuticals, the Japanese
pharmaceuticals group, is planning to open a production and
research unit in India next year. The group is expected to
invest over yen 5 billion (close to $44 million) for the
proposed facility, according to reports from Tokyo. Eisai’s plan
to set up manufacturing and research facilities in India aims at
tripling its Asian sales to ¥ 60 billion ($522.9 million) by
2011. Eisai, the first Japanese pharmaceuticals group to
establish a wholly owned Indian subsidiary Eisai Pharmaceuticals
India, has been in the domestic market with few of its generics
since September last year. The company also has a co-marketing
arrangement with GSK India to sell one of its anti-ulcer
formulation in the country.
ATI to
invest US$ 50 million in India
شركة أيه تي أي ستقوم باستثمار 50 مليون دولار
أمريكي في الهند
ATI Technologies, designer and manufacturer of 3D
graphics and digital media silicon solutions, plans to invest
US$ 50 million in research and development facility in India in
next five years. ATI Senior Vice President and General Manager
Consumer Business Unit told reporters that its new $15 million
facility is the largest R&D centre outside North America and is
currently working on developing chipsets for cell phones,
high-definition TVs and set-top boxes.
Metro
AG to invest US$ 371 million
شركة ميترو أيه جي تقوم باستثمار 371 مليون دولار
أمريكي
German trading major Metro AG has lined up an
investment of US$ 371 million in India. The company, which is
present in India through Metro Cash & Carry with its two stores
in Bangalore, is set to open three more stores in Kolkata,
Hyderabad and Chennai. The company’s Chief executive said that
the new stores will be opened within few months so as to scale
up the company’s operations in India that has been growing
steadily. The company intends to invest €45 million in opening
the three new stores.
Government to deepen reforms
تشدد الحكومة بإصلاحات
Finance Minister said that the government is
committed to deepening reforms to put the country on a high
growth path of 8-10 per cent. "We are aware of the challenges
before us. It will be our constant endeavour to address these
challenges by deepening the reforms and put the country on a
trend growth rate of 8-10 per cent for eliminating poverty,
Finance Minister told a business session at Asian Development
Bank (ADB) annual meeting in Hyderabad. "India has achieved an
average growth rate of nearly 8 per cent in the last three years
that is a robust demonstration of its nascent strengths. As the
country moves to a higher growth plan, there is a need to
supplement domestic resources with foreign investments," he
said. Our economic reforms over the last 15 years, the role
played by the private sector and the rising domestic consumption
had been the drivers of this growth, he said. Stating that the
investment rate in the country was around 30 per cent of the GDP
with a major chunk of it being funded by domestic savings,
Chidambaram sought more foreign investments to take the country
on a higher growth trajectory.
Manufacturing sector shows rapid growth
هناك النمو السريع في القطاع المصنع
The ASCON survey carried out by the Associations
Council of the Confederation of Indian Industry (CII), for
April-March 2005-06 over April-March 2004-05 indicates that the
Indian manufacturing sector has reported rapid growth. Out of
the total of 143 sectors reporting production, 36 sectors
recorded an excellent growth rate of more than 20 percent 36
sectors recorded a high growth rate of 10-20 percent, 56 sectors
registered moderate growth rate of 0-10 percent. A larger
number of sectors were in the excellent growth category shifting
from high growth in this period as compared to the Q3 results.
According to the CII-ASCON survey, Lead and Lead Alloy, Pig
Iron, Switchgears, Capacitors, Aluminium Extrusions, Auto
Components, Industrial Valves, Fluid Power, Industrial Gases,
Boilers, Air & Gas Compressors, Sugar Machinery, Machine Tools,
Textile Machinery, LCV’s, Split Air conditioners, Microwave
Ovens, Refrigerators, DVD Players, Soya Oil and Cellular
Services were in the excellent growth category. Chemical Alkali,
Paints, Sponge Iron, Motor Stampings, Circuit Breakers,
Precision tubes, Industrial Furnace were all in the high growth
category. Sponge Iron, Abrasives, Auto Components, Castings,
Fluid Power, Forgings, Industrial Valves, Machine Tools, Sugar
Machinery, Scooters are sectors, which have done well on the
export front, registering excellent growth.
NASA,
ISRO sign pact for moon mission
"ناسا" منظمة البحث الفضائي الهندية توقع العقد
الخاص بمهمة القمر
US space agency NASA entered into an agreement
with the Indian Space Research Organisation (ISRO) on Tuesday to
send two scientific instruments on board Chandrayaan-I, the
country's first unmanned moon mission scheduled for 2008. NASA
Administrator signed the MoU (Memorandum of Understanding) with
ISRO chairman to send a mini synthetic aperture radar (miniSAR),
developed by the agency's applied physics laboratory and a moon
mineralogy mapper, built by the jet propulsion laboratory, an
ISRO official said. Chandrayaan-I will be launched from the
Satish Dhawan Space Centre at Sriharikota on the east coast of
Andhra Pradesh, using the new polar satellite launch vehicle (PSLV).
Car
exports zoom 47 per cent
تصدير السيارات 47%
A welcome reversal in the numbers of Maruti Udyog
and a strong performance by Hyundai India saw car exports from
India begin the new fiscal with a strong 47 per cent growth at
15,497 units. According to figures released by the Society of
Indian Automobile Manufacturers (SIAM), Maruti Udyog Ltd
reported a export growth of 27.5 per cent in overseas sales at
1,553 units, reversing a long run of decline. In fact, the
company's export shipments last fiscal were down about 30 per
cent. Korean car company Hyundai's India subsidiary continued
its stellar performance. The company, which has made India the
hub for small cars, saw shipments going up by a whopping 65.4
per cent to 10,842 units. Tata Motors also saw its passenger car
exports climb about 17 per cent at 1,142 units in April 2006
against 977 units in the corresponding month last year.
India
ranks 2nd in TNS CSR global survey
الهند تأتي في المرتبة الثانية فى تي أين اس في
دراسة المسئولية الاجتماعية عالميا
India has been ranked second in a global
corporate social responsibility study undertaken by automotive
research company TNS automotive, while state-owned Bharat
Petroleum and Maruti Udyog have been ranked as the best
companies in the country. According to the study, which has been
based on a public goodwill index, India notched 119 points in
the index against a global average of 100, while Thailand
occupied the top slot with 124 points. "These findings clearly
show the values that are important to customers in India.
Corporates realise this and strengthen their CSR activities will
benefit from the goodwill they will generate in this market,"
TNS Automotive Senior Vice-President R Ravi Shankar said. Among
the Indian automotive corporations, Bharat Petroleum and Maruti
Udyog came on top with 134 points each, followed by Tata Motors
(133) and Hero Honda (131).
Construction, engineering sectors set for a growth spurt
الإنشاء, تم تأسيس قطاع الهندسة للنمو الزائد
The various public utilities and commodity
companies are estimated to award new contracts worth $ 133bn for
building new power plants, refineries, special economic zones,
highways, railway lines and metro corridors across the country.
The value of new works is six times greater than the combined
revenues of construction and turnkey engineering companies in
2004-05. At least a third of this is expected to accrue to the
topline of companies like L&T, ECC, Simplex, Soma, Nagarjuna and
DS Construction in the form of new orders. The rest boosts the
revenues of engineering and equipment suppliers such as Bharat
Heavy Electricals, Siemens India, L&T, ABB, and Alstom, among
others. The contracts for six ultra-mega power projects, are
around Rs.1000000 million and an equally large order is expected
from Reliance’s Jamnagar project. The railway freight corridor
is estimated to be worth Rs 300,000 million.
'Indians can emerge as global traders'
يمكن أن يصبح الهنود تجارا عالميون
India is set to emerge as the most trading savvy
nation in the commodities arena compared to its other Asian
peers in the near future. Language skill in English is expected
to be the driver just as it did for the information technology
and software industry in the nineties. The 158 year-old CBOT
that has gained a market share of 40% in the US market is
extending its reach to various countries. The volumes on the
exchange jumped after it introduced e-CBOT in October 2005, the
22 hour electronic platform for futures trading. Mr Farra is in
India to encourage the country’s trading community to trade on
CBOT which is providing a diverse mix of financial, equity and
commodity futures and options-on-futures products. Agreeing on
the fact that Indians were trading savvy, Suresh Kotak, chairman
of Kotak Commodities stated that he too earlier used to trade on
US markets for cotton and Brazilian markets for castor.
Investors, companies or institutions wishing to trade on
overseas exchanges have to get Reserve Bank of India (RBI)
approval. Though, individuals can invest upto $25,000 under the
liberal forex provision.
M&As,
private equity deals touch US$ 8.2 billion: Thornton
قيمة الاندماج والامتلاك وقيمة أسهم الخاص تصل إلى
8.2 مليار: ثورنتون
In the first four months of 2006, India Inc has
seen a flurry of mergers and acquisitions (M&A) and private
equity (PE) deals. The total M&A deal value for the period has
been at US$ 8.2 billion while PE deal value has grown to US$ 2.3
billion, according to a report by global consultancy firm Grant
Thornton. The report says the total number of cross border deals
during the period stood at 77, valued at $5.6 billion. Inbound
deals totalled to 25 valued at $2 billion as against a total of
52 outbound deals valued at $3.6 billion.
|
