India Newsletter: January 2007

Economic News

IBM sees more growth in India
Mr.Cannon-Brookes, IBM's vice president for business development in China and India, said in an interview that India is the fastest-growing market for his company. IBM, the world's largest computer services company, aims to increase its share of business in India as banks, retail and small and medium-sized firms spend more on technology in Asia's fourth-largest economy. It has bagged big deals in telecoms, like one from India's top mobile services firm Bharti Airtel Ltd in August. In June, IBM announced plans to invest nearly $6 billion in India over three years, underscoring the country's growing importance as a hub for information technology outsourcing and expertise.

Providence acquires 16% in Idea
Private equity firm Providence Equity Partners has bought 16% in Idea Cellular for $400 million, securing a foothold in the fastest-growing telecom market in the world. Idea is the sixth largest wireless operator in the country with a subscriber base of over 10 million. The Indian telecom market is worth about $1.4 billion and its growth is rapid. The country now has about 130 million cellular subscribers with estimates putting the figure at about 280 million in two years' time. India overtook China in the monthly subscriber additions in August 2006 and the continued growth momentum is making many overseas telecom companies and funds eager to invest in the country.

US firm plans $218.5 million desalination plant in Tamil Nadu
The US-based $968 million Beta Empire Group is in talks with the Government of Tamil Nadu to set up a $220 million water desalination-cum-power plant in Chennai. The Group which has its presence in a wide spectrum of business segments including edible nuts and food products, pharmaceuticals, shipping and consultancy, is venturing into the water desalination field in India for the first time with this Chennai project. The Chennai desalination plant would have a capacity of 30,000 ton per day.

India ranks second in marine product output
India has emerged as the world's second largest producer of farmed fish (aquaculture) after China. Its share in the global aquaculture output is 4.2% in terms of both volume and value. In terms of a report 'World Aquaculture:2006' compiled by the UN Food and Agriculture Organisation, India's farmed fish output (2004) was estimated at 2.47 million tons and the value of India's total reared fisheries output at $2.93 million.

Pharma sector Q2 profits to soar over 75%
Indian pharmaceutical companies are likely to post impressive earnings and revenue growth results for the second quarter after sailing through rough waters over the past couple of years. Analysts expect the sector to witness an average profit growth of more than 75% in the second quarter of 2006 on the back of various restructuring and inorganic growth initiatives undertaken by the companies.

GDP growth lures foreign investors
India, with a growth of over 8% per annum, is emerging as the most-preferred destination for foreign investors, a survey by a leading business chamber says. In a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI), 83% of foreign firms are considering expansion, while 71% hope the country will surpass the 8% GDP growth by March 2007.
A majority of foreign investors have achieved their growth target set for their business in India, said the survey, adding that 91% of the companies making profits have been able to meet their profitability targets.
With more and more companies bringing in their assembly lines and setting up manufacturing units here, India is becoming a coveted place for investments.
India, with its young population, is an attractive destination for investments in comparison to other developing countries. The perception of India as a manufacturing base has reasonably improved over the past two years, with 48% of foreign companies rating India as an attractive manufacturing base.

Airbus to invest $1 bn in India
European aerospace major Airbus is planning to invest $1 billion in India over the next ten years.
The areas where the Toulouse-based aircraft maker is looking to invest in India include setting up of training centres, maintenance, repair and overhauling (MRO) facility, engineering centre and design centre.

Investments surge in the telecom space
India's telecom industry is buzzing, literally. There is a sudden surge in investments in the telecom sector. The share of telecom in FDI has risen from 3-4% to 12-15% in the past 12 months. Pan-India players are emerging as consolidation picks up pace.
India's mobile growth story is far from over. With a year-on-year growth of more than 80% in October'06, cellular subscriber growth seems to be in full steam. No wonder then, that both foreign and domestic investors are finding the sector more and more lucrative. Moreover, the market is still big enough for both the GSM and CDMA players to thrive in. Consolidation has already taken place and a handful of pan-India operators have emerged, with very few regional operators still in the game.

Retail Business in India

Smaller cities in India will witness a boom in retail malls, already estimated to grow to 220 projects by 2007, as business houses are firming up plans to tap the potential, says a leading global consultancy. "China and Brazil took 10-15 years to raise the share of their organised retail sectors from five percent to 20 percent and 38 percent respectively," said Ranjan Biswas, partner with Ernst and Young-India, commenting on a recent study. "India too is moving towards growth and maturity in the retail sector at a fast pace," Mr. Biswas said, based on the finding of the study titled, "The Great Indian Retail Story".

The report says the hypermarkets, providing consumers with a combination of good prices, overall shopping convenience, range and quality, have emerged as a preferred format for international retailers in India. There are less than 50 hypermarkets in India currently operated by four-five big retailers, and the report says 67 Indian cities with populations of over half a million can absorb many more such markets in the next four-five years. Drawing a similarity between consumer behaviour in India and China, the report says most hypermarkets in China are located inside cities as consumers do their shopping more than once a week, have low car penetration and limited refrigeration space. "The boom in the retail sector is also associated with the rise of malls across India. There are 220 mall projects in the pipeline till 2007 -139 in the big eight cities, including the metros, and 81 in other, tier II cities." The study says footwear and clothing have seen the highest retail penetration in the organised sector with a share of 22 and12 percent, respectively, due to high levels of franchising activity and branding. Even though the food and grocery segment contributes about 41 percent of private consumption expenditure and about 77 percent of total retail sales, it is mainly controlled by the unorganised, small outlet sector.

The report says multinational retailers are firming up their strategies to enter India and those already present in the country are undergoing rapid expansions, with franchising gaining steam in tier II cities. The report forecasts a number of strategic partnership opportunities between Indian and overseas retailers, even as it says that international retailers will have to be extremely well-versed with local retail culture and know-how. "The states and Union Territories in India number 35 and languages, cultures, habits and consumer preferences are different in every one of them," Mr. Biswas said. "Companies have to understand and retain customers. A five percent reduction in customer defections can treble profits."

Do You Know?

Three in Global Power 50 list

Three Indian women - ICICI Bank Deputy Managing Director Chanda Kochhar, HSBC India CEO Naina Lal Kidwai and Biocon head Kiran Mazumdar-Shaw - have been named among the world's 50 most powerful businesswomen by Fortune magazine.
The global recognition for the three comes close on the heels of Indra Nooyi, the India-born head of global soft drink giant PepsiCo, being named as one of the most powerful businesswomen in the U.S. by the same magazine.
Chanda Kochhar, who is with the country's largest private sector bank, has been ranked 37 in the Global Power 50 list. She has moved up 10 positions from her 47^th rank in the previous year's list.
HSBC India CEO Kidwai has been ranked 41, while Kiran Mazumdar-Shaw, chairman and managing director of bio-technology major Biocon, is at 48^th rank.

23 in best under billions firms list

There are 23 Indian companies figuring in the Forbes Asia 2006 list of 200 leading publicly-quoted companies in the region with sales of less than $1 billion. The list includes Asian Paints, Bharat Forge, Cipla, Carborundum Universal, Dabur India, Pantaloon Retail and Punjab Tractors.
The criteria for entry into the list included not just sales of less than $1 billion but also "solid top and bottomline gains and potential for more success," says a press release from Forbes. Taiwan had the highest entries at 31 while 29 small and midsize enterprises from China, 27 from Australia and 19 each from Singapore and Japan made it to the list. The list has a strong representation from the manufacturing sector and businesses providing basic material that go into manufactured goods and into factories, housing and office towers.

Tourism - India Calls
Jim Corbett National Park

The Jim Corbett National Park is located in the terai region of the state of Uttar Pradesh, straddling the undulating Shivalik foothills of the Himalayas. Located around 300 kilometres away from New Delhi, it is India's first ever national park.

Undoubtedly the most beautiful Park in North and Central India, Corbett National Park was established on August 8, 1936, and named after Jim Corbett, the famed hunter author-photographer-naturalist. On the road to Nainital from the Park is Jim Corbett's home, now a museum.

The park covered 520 sq. kilometres in 1986, and a proposed extension of 588 sq. kilometres is under consideration. Project Tiger, which was set up with the help of the World Wildlife Fund, was launched at Dhikala, in the Corbett National Park on April 1, 1973. This project was aimed at saving the Indian tiger (Panthera tigris tigris) from extinction.

Over 50 mammals, 580 birds and 25 reptile species have been listed in the Corbett National Park. The insect life is also astounding, noticeable especially after the monsoons. But undoubtedly, the jewel of the Corbett is the Indian tiger. It was estimated that in 1984, the tiger population was 90 in this park.

Leopards as well as lesser cats such as the leopard cat, jungle cat, fishing cat are also found here. The sloth bear, Himalayan black bear, dhole, jackal, yellow throated marten, Himalayan palmcivet, Indian grey mongoose, commonotter, porcupine, clacktaped hare are the other attractions of this area. It is possible to see elephants all over the park.

There is a lot for bird watchers in this park. It has over 580 species of birds. Most of the water birds are migrant, and arrive in winters. Some of these are the greylag, barheaded goose, duck, grepe, snipe, sandpiper, gull and wagtail. The residents include darters, cormorants, egrets, herons, the blacknecked stork and the spurwinged lapwings.

Reptiles, which are residents of this area, are the gharial, the rare fish eating, long-nosed crocodile, and a few species of turtles and tortoises. The Indian python, viper, cobra, krait and king cobra also inhabit the Corbett National Park.

The National Park offers invaluable experiences for adventurous and serious minded wildlife - buffs, photographers and anglers. It is advantageous to have one's own vehicle here. Walking in some areas is permitted, but only when accompanied by a guide. Elephant rides for wildlife viewing, in the mornings and evenings, can be booked in the Dhikala complex.

Other Attractions in Corbett
• Ramnagar: Situated in the rich farm belt of Terai, on the southeastern fringes of the great forests, the busy market town of Ramnagar is the main administrative centre for Corbett National Park and Project Tiger.
• Wildlife Viewing: Chital, Sambar, and various other Deer species find refuge in the Savannah grasslands known as the Maidan, behind the campsite to the south, and Tigers are occasionally drawn in looking for prey. Two hour elephant rides, explore this sea of grass, rarely penetrating far into the deep jungles beyond; try to convince your Mahout or Elephant driver to venture in, as they can be quite magical.
• Corbett Wildlife Safari: Jeep Safari, is the most convenient way to travel within Corbett national park, and can be rented for the park trips from Ramnagar, from the KMVN Tourist Lodge and other travel agencies.

How to get there
• By Air: The nearest airport is situated at Pantnagar, 80-km southeast.
• By Rail: One can catch direct trains from Delhi, which are Delhi-Moradabad and Moradabad-Ramnagar.
• By Road: Frequent buses to and from Nainital and Ranikhet, 112-km north, serve Ramnagar. Buses arrive every half hour or so after the eight-hour trip from Delhi; Delhi Transport Corporation runs a semi-deluxe service, and most of the alternatives are pretty basic.

Where to stay: Claridges Corbett Hideaway Corbett Riverside Resort, Forest Rest Houses, Quality Inn, Tented Camps, Huts.

Best time to visit: December to April.

Climate
• Summer (April to June): Warm.
• Monsoon (July to August): Warm.
• Winter (October to March): Cool to chilly.

Clothing
Summer: Cottons; Winter: Woolens.

Contact: Field Director, Project Tiger, Corbett National Park, PO Ramnagar, District Nainital, Uttaranchal - 244715.

For more on India tourism, visit:
www.uttaranchaltourism.gov.in
www.indiatouristoffice.org
www.tourindia.com
www.tourismofindia.com

Popular Indian Recipes: Potato and Corn Cake (Aloo Makai Tikki)

Ingredients:

• 4 medium potatoes parboiled
• 1 cup(s) cooked corn
• 1 onion(s) chopped
• 1 tablespoon(s) grated cheese
• 2 green chilli(es) chopped fine
• 1 tablespoon(s) chopped coriander leaves
• 1 teaspoon(s) lemon juice
• 1 teaspoon(s) fresh cream
• 1 tablespoon(s) butter
• salt and pepper to taste

Method:
1. Grate the parboiled potatoes along without the skin. Keep aside. Heat the butter in a pan till hot. Add the chopped onion(s) and saute on medium heat for about 2 minute(s) .
2. Add the grated potatoes, cooked corn, salt, pepper, lemon juice, fresh cream, chopped green chilli(es) and coriander leaves. Mix well. Spread this mixture evenly in the pan. Sprinkle the grated cheese on top and keep on low heat for 6 minutes.
3. Lift the cake in one piece and turn it upside down. Keep again on low heat for 6 minutes till it is crisp and brown. Cut into squares before serving.

Serve hot with: tomato ketchup.

NRI/PIO Corner

Global Meet for a Resurgent Bihar
January 19-21, 2007, Patna

Institute for Human Development, New Delhi and Bihar Times, Patna, in collaboration with the Government of Bihar are organising a Global Meet for a Resurgent Bihar from 19th to 21st January 2007 at Patna. The main objective of the Meet is to bring together on one platform, leaders of industry and trade, policy makers, scholars, development practitioners, and social activists to explore opportunities and partnerships for playing effective roles towards the development of Bihar. The Meet shall enable individuals and organisations concerned with development, to appreciate the situation and forge partnerships for undertaking various initiatives for the development of the state. Details of the Meet and information about online registration can be obtained from the website www.globalbiharmeet.com

The All India Radio has placed its major regional language news bulletins on its website www.newsonair.com on experimental basis. Comments/suggestions of Indian community in Kyiv are welcome.