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Indo-Thai FTA by 2010: Thai PM
26 Jun, 2007 l 1819 hrs ISTlIANS
NEW DELHI: India and Thailand have stepped up negotiations to conclude a landmark free trade agreement (FTA) by 2010, Thai Prime Minister Surayud Chulanont on Tuesday told top businessmen in New Delhi as he sought a greater role for India in "bridging the digital divide in Asia."
Allaying apprehensions of investors after a military-led government took over power last September, the Thai leader assured that the country's economy was in top form and full democracy would be restored after elections, to be held before the year-end.
"Our two countries are on track to conclude an FTA in near future, with a view to establishing the FTA covering trade in goods by 2010," he said in his keynote address at a business summit, organised by three apex business bodies of India, at Hotel Taj Mahal here.
"Upon the achievement of this goal, long-term mutual benefits in trade and investment could be realised and our partnership expanded further to cover technological know-how and expertise," said Surayud, who arrived in New Delhi on Monday evening on a three-day visit that also takes him to Kolkata as well as historical places like Varanasi and Sarnath.
Painting a buoyant picture of steadily burgeoning business ties, the Thai leader announced the launching of a weeklong India-Thailand FTA roadshow from June 28 to July 4.
Thailand's Deputy Foreign Minister Sawanit Kongsiri will lead a prominent group of investors on the roadshow to important Indian cities to explore business opportunities that will come into play after the FTA comes into effect, Surayud said.
India's Commerce Minister Kamal Nath, who was present at the business meeting, stressed on diversifying trade between the two countries and called for an FTA that covers not just goods but also services and investments.
Calling India "Thailand's new major market and a key engine of the rising Asian economy," Surayud underlined the importance of the proposed FTA and said that since the elimination of tariffs on 82 items under the early harvest scheme of limited FTA in 2004, bilateral trade has jumped to $3.4 billion last year.
The agreed target of $4 billion by 2007 is likely to be achieved, he said.
He sought more Indian investment in IT and pharmaceuticals - the two areas in which India has proven expertise.
The Thai prime minister stressed that India, with its vast reservoir of skilled personnel and entrepreneurs, could be "a key driver of a knowledge-based Asia.
"And we are convinced that the interaction of these assets with the dynamism of other growth areas in Asia, from China to Japan to ASEAN, can help ensure the peaceful rise of Asia as a key player in the global economy.
"Our growing partnership is the outcome of synergy between India's 'Look East' policy and Thailand's Look West policy."
Earlier in the day, the Thai leader was accorded a ceremonial welcome at Rashtrapati Bhavan, the presidential palace. He met External Affairs Minister Pranab Mukherjee and discussed with him a host of bilateral, regional and global issues.
Surayud lauded the nearly 100,000-strong people of Indian origin in Thailand for playing a prominent role in Thailand's economic and social life.
He also praised them for contributing to the evolution of "a multi-dimensional relationship" between India and Thailand.
Surayud is scheduled to meet Prime Minister Manmohan Singh in the evening for formal talks after which the two sides will sign two agreements in the fields of energy and cultural cooperation.
26 Jun, 2007 l 1819 hrs ISTlIANS
NEW DELHI: India and Thailand have stepped up negotiations to conclude a landmark free trade agreement (FTA) by 2010, Thai Prime Minister Surayud Chulanont on Tuesday told top businessmen in New Delhi as he sought a greater role for India in "bridging the digital divide in Asia."
Allaying apprehensions of investors after a military-led government took over power last September, the Thai leader assured that the country's economy was in top form and full democracy would be restored after elections, to be held before the year-end.
"Our two countries are on track to conclude an FTA in near future, with a view to establishing the FTA covering trade in goods by 2010," he said in his keynote address at a business summit, organised by three apex business bodies of India, at Hotel Taj Mahal here.
"Upon the achievement of this goal, long-term mutual benefits in trade and investment could be realised and our partnership expanded further to cover technological know-how and expertise," said Surayud, who arrived in New Delhi on Monday evening on a three-day visit that also takes him to Kolkata as well as historical places like Varanasi and Sarnath.
Painting a buoyant picture of steadily burgeoning business ties, the Thai leader announced the launching of a weeklong India-Thailand FTA roadshow from June 28 to July 4.
Thailand's Deputy Foreign Minister Sawanit Kongsiri will lead a prominent group of investors on the roadshow to important Indian cities to explore business opportunities that will come into play after the FTA comes into effect, Surayud said.
India's Commerce Minister Kamal Nath, who was present at the business meeting, stressed on diversifying trade between the two countries and called for an FTA that covers not just goods but also services and investments.
Calling India "Thailand's new major market and a key engine of the rising Asian economy," Surayud underlined the importance of the proposed FTA and said that since the elimination of tariffs on 82 items under the early harvest scheme of limited FTA in 2004, bilateral trade has jumped to $3.4 billion last year.
The agreed target of $4 billion by 2007 is likely to be achieved, he said.
He sought more Indian investment in IT and pharmaceuticals - the two areas in which India has proven expertise.
The Thai prime minister stressed that India, with its vast reservoir of skilled personnel and entrepreneurs, could be "a key driver of a knowledge-based Asia.
"And we are convinced that the interaction of these assets with the dynamism of other growth areas in Asia, from China to Japan to ASEAN, can help ensure the peaceful rise of Asia as a key player in the global economy.
"Our growing partnership is the outcome of synergy between India's 'Look East' policy and Thailand's Look West policy."
Earlier in the day, the Thai leader was accorded a ceremonial welcome at Rashtrapati Bhavan, the presidential palace. He met External Affairs Minister Pranab Mukherjee and discussed with him a host of bilateral, regional and global issues.
Surayud lauded the nearly 100,000-strong people of Indian origin in Thailand for playing a prominent role in Thailand's economic and social life.
He also praised them for contributing to the evolution of "a multi-dimensional relationship" between India and Thailand.
Surayud is scheduled to meet Prime Minister Manmohan Singh in the evening for formal talks after which the two sides will sign two agreements in the fields of energy and cultural cooperation.
Bushroda
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World Bank loan to fund India's rural poverty fight
WASHINGTON POST
Wednesday, June 27, 2007; 4:29 AM
NEW DELHI (Reuters) - The World Bank said on Wednesday it had approved a $600 million loan for India to help it revamp thousands of ailing rural cooperative banks and fight village poverty through cheap loans.
"Better access to finance for India's rural poor is absolutely critical for higher rural growth, for reducing inequality and ultimately, alleviating poverty," Isabel Guerrero, the bank's country director for India, said in a statement.
Last year, India approved a 135.96 billion rupee ($3.32 billion) package to refinance loss-making cooperative banks so they could start lending to poor farmers at cheaper rates.
It sought multilateral cash to part-finance the project.
So far, 12 of India's 29 states have sought financial help for their cooperative banks.
About 87 percent of marginal Indian farmers and 70 percent of small farmers have no access to credit from a formal financial institution, the World Bank said, adding they often have to rely on "extortionate" money lenders.
Thousands of farmers have committed suicide in recent years across India's sprawling western and southern plateau because they could not repay loans taken for their crops.
The absence of cheaper credit prevents farmers from adopting the latest technology, or buying quality seeds and fertilizers.
India's economy expanded by a red-hot 9.4 percent in 2006/07 but farm growth lagged seriously behind at just 2.7 percent. In May, Prime Minister Manmohan Singh announced a 250 billion rupee package over four years to boost farm growth and tackle pervasive poverty in villages which are home to nearly 70 percent of the country's 1.1 billion people.
The move followed a poor showing by the ruling Congress party-led coalition in several state elections.
WASHINGTON POST
Wednesday, June 27, 2007; 4:29 AM
NEW DELHI (Reuters) - The World Bank said on Wednesday it had approved a $600 million loan for India to help it revamp thousands of ailing rural cooperative banks and fight village poverty through cheap loans.
"Better access to finance for India's rural poor is absolutely critical for higher rural growth, for reducing inequality and ultimately, alleviating poverty," Isabel Guerrero, the bank's country director for India, said in a statement.
Last year, India approved a 135.96 billion rupee ($3.32 billion) package to refinance loss-making cooperative banks so they could start lending to poor farmers at cheaper rates.
It sought multilateral cash to part-finance the project.
So far, 12 of India's 29 states have sought financial help for their cooperative banks.
About 87 percent of marginal Indian farmers and 70 percent of small farmers have no access to credit from a formal financial institution, the World Bank said, adding they often have to rely on "extortionate" money lenders.
Thousands of farmers have committed suicide in recent years across India's sprawling western and southern plateau because they could not repay loans taken for their crops.
The absence of cheaper credit prevents farmers from adopting the latest technology, or buying quality seeds and fertilizers.
India's economy expanded by a red-hot 9.4 percent in 2006/07 but farm growth lagged seriously behind at just 2.7 percent. In May, Prime Minister Manmohan Singh announced a 250 billion rupee package over four years to boost farm growth and tackle pervasive poverty in villages which are home to nearly 70 percent of the country's 1.1 billion people.
The move followed a poor showing by the ruling Congress party-led coalition in several state elections.
Bushroda
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H-P's Emerging Task: Deter Forgeries
Tailored Projects Abroad
Aim to Stem Fraudulent Documents
By JACKIE RANGE
WALLSTREET JOURNAL ONLINE
June 28, 2007
BANGALORE, India -- As anyone who does business in India knows, you can't get very far without the right piece of paper. That makes forgery a big problem and one of the most common types of fraud.
At a research and development laboratory here in India's tech hub, Hewlett-Packard Co. is researching a way of marking new paper documents with a bar code that helps prevent forgeries. "Trusted Hardcopy," H-P's internal name for the project, is one of several innovations that are part of a big push by the personal-computer maker to devise products for specific markets that will also have broader use. The aim: To help capture what it calls its "next billion customers" -- a reference to massive emerging markets such as India and China.
With Trusted Hardcopy, which is just one of the tailored efforts, rather than requiring holograms or watermarked paper, the system uses equipment no more complicated than some software, a scanner, and a computer. The bar code is designed to act like a digital signature, "thus bringing network level security to the world of paper," says H-P in a company document. H-P envisages government entities, public offices and companies as potential users, such as for the registration of land ownership.
"India is one of the largest growing markets for H-P," says Anjaneyulu Kuchibhotla, a department director at H-P Labs India, though he adds that India is "starting from a fairly low IT base."
The Asian-Pacific region, which includes India and China, accounted for $4.5 billion of H-P's total revenue of $25.5 billion for the three months ended April 30. But with an increase of 16% over the year-earlier period, the Asian-Pacific region was the company's fastest-growing geographical area. H-P, based in Palo Alto, Calif., declined to provide results just for India.
India's technology industry is expected to grow dramatically in coming years. In 2011, India's tech industry is likely to be worth more than $110 billion in annual revenue, says research and consulting firm IDC (India) Ltd., up from $48.5 billion in 2006. Now there's a computer for only one in every 50 people, a total of 22 million, IDC says. But that is expected to grow significantly as India's economy expands at an annual clip of about 9%.
Already H-P is India's biggest seller of PCs in terms of units sold, with a 21% market share, according to IDC, ahead of India's HCL Technologies Ltd., which has 14%, and China's Lenovo Group Ltd., with 10%. H-P employs more than 29,000 people in India, its second-largest single-nation work force after the U.S., with a business that spans areas including outsourcing, manufacturing, technology services and customer support.
By focusing its research in India, as well as at its labs in Russia, China, and elsewhere, H-P aims to invent products that fit a particular local need but can also be used in other markets. The time from conception to market can be as long as three to five years. Some of them might never see the light of day. "Not everything we work on makes it to a product, but the ones that do tend to have a very significant impact," says Ajay Gupta, the director of H-P Labs India, in an email.
At the company's lab in Beijing, H-P is researching new databases that can handle very large amounts of information. H-P says some of its biggest clients, in terms of the number of transactions and customers, are in the world's most populous nation, and the company is working with them to build information systems large enough to handle that. Given the huge number of people in India, the results of the research could have application here, H-P says.
H-P's Indian labs, in downtown Bangalore, are staffed with employees with advanced degrees in computer science and engineering. The majority of employees are of Indian origin. Rooms are named after scientists such as Galileo and Marconi.
H-P reckons that the potential market in India -- those who may buy computers or are customers of companies that use computers -- could number 900 million. Yet India also is famously bureaucratic and forms-ridden. So the company has focused some of its efforts on trying to bridge the gap between tech and paper.
"We sort of assume that paper's not going to go away," said Mr. Kuchibhotla. "And we say that if paper's not going to go away, what technology do you need to bridge what's happening in the paper world with what's happening in the IT world?"
H-P's goal was to make a product that allowed paper to be read by a machine and secure against forgery. An early version of Trusted Hardcopy puts a bar code on paper that is similar to the bar codes on groceries. It contains the data that are also printed on the document and can be read by a scanner. It also encodes the data in the bar code to prevent tampering.
Because the bar code contains the authentic data, any changes to the document should be identifiable. The content of the bar codes can't be modified. The bar code is printed at the bottom of a page of regular size copier paper in about six square inches.
Another product H-P is developing is "TVPrintCast," which sends data over television networks. A set-top box receives the data, and the consumer can then print out the information. TV penetration in India is far higher than computers -- in 2005 India had 500 million TV viewers, compared with 6.5 million Internet users. The product would mean, for instance, that while watching a cooking program, the recipes featured could be broadcast and printed out. H-P isn't the only one in the running: An India company, Chennai-based Novatium Solutions Pvt. Ltd., is already selling a product called Nova netTV, which allows desktop computing on a TV.
Tailored Projects Abroad
Aim to Stem Fraudulent Documents
By JACKIE RANGE
WALLSTREET JOURNAL ONLINE
June 28, 2007
BANGALORE, India -- As anyone who does business in India knows, you can't get very far without the right piece of paper. That makes forgery a big problem and one of the most common types of fraud.
At a research and development laboratory here in India's tech hub, Hewlett-Packard Co. is researching a way of marking new paper documents with a bar code that helps prevent forgeries. "Trusted Hardcopy," H-P's internal name for the project, is one of several innovations that are part of a big push by the personal-computer maker to devise products for specific markets that will also have broader use. The aim: To help capture what it calls its "next billion customers" -- a reference to massive emerging markets such as India and China.
With Trusted Hardcopy, which is just one of the tailored efforts, rather than requiring holograms or watermarked paper, the system uses equipment no more complicated than some software, a scanner, and a computer. The bar code is designed to act like a digital signature, "thus bringing network level security to the world of paper," says H-P in a company document. H-P envisages government entities, public offices and companies as potential users, such as for the registration of land ownership.
"India is one of the largest growing markets for H-P," says Anjaneyulu Kuchibhotla, a department director at H-P Labs India, though he adds that India is "starting from a fairly low IT base."
The Asian-Pacific region, which includes India and China, accounted for $4.5 billion of H-P's total revenue of $25.5 billion for the three months ended April 30. But with an increase of 16% over the year-earlier period, the Asian-Pacific region was the company's fastest-growing geographical area. H-P, based in Palo Alto, Calif., declined to provide results just for India.
India's technology industry is expected to grow dramatically in coming years. In 2011, India's tech industry is likely to be worth more than $110 billion in annual revenue, says research and consulting firm IDC (India) Ltd., up from $48.5 billion in 2006. Now there's a computer for only one in every 50 people, a total of 22 million, IDC says. But that is expected to grow significantly as India's economy expands at an annual clip of about 9%.
Already H-P is India's biggest seller of PCs in terms of units sold, with a 21% market share, according to IDC, ahead of India's HCL Technologies Ltd., which has 14%, and China's Lenovo Group Ltd., with 10%. H-P employs more than 29,000 people in India, its second-largest single-nation work force after the U.S., with a business that spans areas including outsourcing, manufacturing, technology services and customer support.
By focusing its research in India, as well as at its labs in Russia, China, and elsewhere, H-P aims to invent products that fit a particular local need but can also be used in other markets. The time from conception to market can be as long as three to five years. Some of them might never see the light of day. "Not everything we work on makes it to a product, but the ones that do tend to have a very significant impact," says Ajay Gupta, the director of H-P Labs India, in an email.
At the company's lab in Beijing, H-P is researching new databases that can handle very large amounts of information. H-P says some of its biggest clients, in terms of the number of transactions and customers, are in the world's most populous nation, and the company is working with them to build information systems large enough to handle that. Given the huge number of people in India, the results of the research could have application here, H-P says.
H-P's Indian labs, in downtown Bangalore, are staffed with employees with advanced degrees in computer science and engineering. The majority of employees are of Indian origin. Rooms are named after scientists such as Galileo and Marconi.
H-P reckons that the potential market in India -- those who may buy computers or are customers of companies that use computers -- could number 900 million. Yet India also is famously bureaucratic and forms-ridden. So the company has focused some of its efforts on trying to bridge the gap between tech and paper.
"We sort of assume that paper's not going to go away," said Mr. Kuchibhotla. "And we say that if paper's not going to go away, what technology do you need to bridge what's happening in the paper world with what's happening in the IT world?"
H-P's goal was to make a product that allowed paper to be read by a machine and secure against forgery. An early version of Trusted Hardcopy puts a bar code on paper that is similar to the bar codes on groceries. It contains the data that are also printed on the document and can be read by a scanner. It also encodes the data in the bar code to prevent tampering.
Because the bar code contains the authentic data, any changes to the document should be identifiable. The content of the bar codes can't be modified. The bar code is printed at the bottom of a page of regular size copier paper in about six square inches.
Another product H-P is developing is "TVPrintCast," which sends data over television networks. A set-top box receives the data, and the consumer can then print out the information. TV penetration in India is far higher than computers -- in 2005 India had 500 million TV viewers, compared with 6.5 million Internet users. The product would mean, for instance, that while watching a cooking program, the recipes featured could be broadcast and printed out. H-P isn't the only one in the running: An India company, Chennai-based Novatium Solutions Pvt. Ltd., is already selling a product called Nova netTV, which allows desktop computing on a TV.
Bushroda
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Air India Starts Cargo Operations With Airbus Planes
BLOOMBERG
By Gautam Chakravorthy
June 27 (Bloomberg) -- Air India Ltd., the nation's biggest overseas carrier, started freighter operations with two Airbus SAS planes to tap rising demand for transporting goods in the world's second-fastest growing major economy.
Air India started flights to Europe with the freighters, converted from old A310 passenger planes at a cost of $16 million, it said in a statement released in Mumbai today.
Growing exports of gems and jewelry and imports of technology equipment have boosted demand for cargo flights in the South Asian country. India has one cargo airline, Blue Dart Express Ltd., and existing airlines plan to start cargo flights by buying new planes or converting passenger aircraft.
India should have 500 cargo planes within the next 15 years, Praful Patel, the country's civil aviation minister, said in Mumbai at a function in connection with the start of state-owned Air India's cargo operations.
State-owned Indian Airlines Ltd. is converting five Boeing Co. 737 aircraft to start cargo service while Deccan Aviation Ltd. and GoAirlines (India) Pvt. are also planning freighter services in India.
Air India has a share of about 11 percent of cargo export from the country and 7 percent of imports, it said. It now moves cargo in passenger planes.
The carrier will initially operate four flights a week to Frankfurt and Paris with the two A310s. The first cargo flight from Mumbai to Frankfurt will have stopovers in Bangalore and in Dammam, Saudi Arabia, it said.
BLOOMBERG
By Gautam Chakravorthy
June 27 (Bloomberg) -- Air India Ltd., the nation's biggest overseas carrier, started freighter operations with two Airbus SAS planes to tap rising demand for transporting goods in the world's second-fastest growing major economy.
Air India started flights to Europe with the freighters, converted from old A310 passenger planes at a cost of $16 million, it said in a statement released in Mumbai today.
Growing exports of gems and jewelry and imports of technology equipment have boosted demand for cargo flights in the South Asian country. India has one cargo airline, Blue Dart Express Ltd., and existing airlines plan to start cargo flights by buying new planes or converting passenger aircraft.
India should have 500 cargo planes within the next 15 years, Praful Patel, the country's civil aviation minister, said in Mumbai at a function in connection with the start of state-owned Air India's cargo operations.
State-owned Indian Airlines Ltd. is converting five Boeing Co. 737 aircraft to start cargo service while Deccan Aviation Ltd. and GoAirlines (India) Pvt. are also planning freighter services in India.
Air India has a share of about 11 percent of cargo export from the country and 7 percent of imports, it said. It now moves cargo in passenger planes.
The carrier will initially operate four flights a week to Frankfurt and Paris with the two A310s. The first cargo flight from Mumbai to Frankfurt will have stopovers in Bangalore and in Dammam, Saudi Arabia, it said.
Bushroda
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India sneaks into Pakistani auto market
By Khalid Mustafa
ISLAMABAD: In a shocking development, India has managed to sneak into Pakistans market of 160 million people through a faulty free-trade agreement (FTA) with Sri Lanka, a senior official told The News.
Keeping in view the sensitivity of the issue, the Economic Coordination Committee (ECC) that meets today (Thursday) with Prime Minister Shaukat Aziz in the chair would take up the FTA with Sri Lanka for review, he said.
Indian business tycoons have relocated their automobile industry to Sri Lanka and started exporting their products tyres, tubes, automobiles and spare partsto Pakistani market under FTA with Colombo, the official said.
Under the FTA between Pakistan and Sri Lanka, Islamabad cannot object to import of these items. Under the rules of origin, Pakistan cannot raise this issue as all the said items are being manufactured and value-added in Sri Lanka. However, the capacity of the negotiating team headed by joint secretary FT Wing in Commerce Ministry which has been involved in technical parleys with Sri Lanka on FTA is questionable, as the team could not foresee the future investment by India in Sri Lanka on automobile sector which can be injurious to Pakistans economy, the official said.
Although it is a fact that India-Sri Lanka FTA was inked much prior to Pak-Lanka FTA, but Pakistani negotiators could not examine the Indo-Lanka trade agreement and analyse its impact on Pakistans economy, he added.
Although the import of tyres, tubes, vehicles and spare parts is meagre this year, but a beginning has been made. Under the FTA, Pakistan has received tyres and rubber tubes in import from Sri Lanka valuing $169,000 and road vehicles and their parts worth $14,000. The official said this is the time to review the FTA.
According to a summary of the Commerce Ministry submitted to the ECC, seeking a review of Pak-Sri Lanka FTA, Colombo will resolve the issue of auto sector of Pakistan on permanent basis in case Pakistan reduces 1) the tariff concession on margin of preferences on betel leaves from 35 to 20 percent and removes the quantitative restrictions of 1,200 tones; 2) eliminates tariff on herbal cosmetics, biscuits, confectionery and ceramic tiles made in Sri Lanka.
By Khalid Mustafa
ISLAMABAD: In a shocking development, India has managed to sneak into Pakistans market of 160 million people through a faulty free-trade agreement (FTA) with Sri Lanka, a senior official told The News.
Keeping in view the sensitivity of the issue, the Economic Coordination Committee (ECC) that meets today (Thursday) with Prime Minister Shaukat Aziz in the chair would take up the FTA with Sri Lanka for review, he said.
Indian business tycoons have relocated their automobile industry to Sri Lanka and started exporting their products tyres, tubes, automobiles and spare partsto Pakistani market under FTA with Colombo, the official said.
Under the FTA between Pakistan and Sri Lanka, Islamabad cannot object to import of these items. Under the rules of origin, Pakistan cannot raise this issue as all the said items are being manufactured and value-added in Sri Lanka. However, the capacity of the negotiating team headed by joint secretary FT Wing in Commerce Ministry which has been involved in technical parleys with Sri Lanka on FTA is questionable, as the team could not foresee the future investment by India in Sri Lanka on automobile sector which can be injurious to Pakistans economy, the official said.
Although it is a fact that India-Sri Lanka FTA was inked much prior to Pak-Lanka FTA, but Pakistani negotiators could not examine the Indo-Lanka trade agreement and analyse its impact on Pakistans economy, he added.
Although the import of tyres, tubes, vehicles and spare parts is meagre this year, but a beginning has been made. Under the FTA, Pakistan has received tyres and rubber tubes in import from Sri Lanka valuing $169,000 and road vehicles and their parts worth $14,000. The official said this is the time to review the FTA.
According to a summary of the Commerce Ministry submitted to the ECC, seeking a review of Pak-Sri Lanka FTA, Colombo will resolve the issue of auto sector of Pakistan on permanent basis in case Pakistan reduces 1) the tariff concession on margin of preferences on betel leaves from 35 to 20 percent and removes the quantitative restrictions of 1,200 tones; 2) eliminates tariff on herbal cosmetics, biscuits, confectionery and ceramic tiles made in Sri Lanka.
Bushroda
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DaimlerChrysler to manufacture CVs in India
Tuesday, 26 June 2007
DaimlerChrysler to roll out Mercedes-Benz branded CVs in India. Obtains NOC from TATA
NEW DELHI : German auto maker, DaimlerChrysler, has been given a no objection certificate by TATA Motors, to start manufacturing commercial vehicles (CVs) in India.
DaimlerChrysler India holds 6.64% in Tata Motors. According to government guidelines, a NOC is required from the Indian company before entering the CV segment as a competitor. Tata had entered into a collaboration with Daimler Benz in 1954 for medium CVs.
Initially DaimlerChrysler will manufacture the vehicles at its facility at Pune. Production would later be shifted to its new plant at Chakan, near Pune. DaimlerChrysler has acquired 100 acres at Chakan Industrial Park.
Currently, DaimlerChrysler is importing Mercedes-Benz trucks.
"Daimler is also expected to get into the production of luxury coaches and buses" reports Economic Times. In addition to this, Daimler would develop bus bodies at its India unit.
It still remains to be seen how soon DaimlerChrysler India commences domestic production. The CV segment is currently in the midst of a slowdown and market leader Tata Motors has recently cut production.
Tuesday, 26 June 2007
DaimlerChrysler to roll out Mercedes-Benz branded CVs in India. Obtains NOC from TATA
NEW DELHI : German auto maker, DaimlerChrysler, has been given a no objection certificate by TATA Motors, to start manufacturing commercial vehicles (CVs) in India.
DaimlerChrysler India holds 6.64% in Tata Motors. According to government guidelines, a NOC is required from the Indian company before entering the CV segment as a competitor. Tata had entered into a collaboration with Daimler Benz in 1954 for medium CVs.
Initially DaimlerChrysler will manufacture the vehicles at its facility at Pune. Production would later be shifted to its new plant at Chakan, near Pune. DaimlerChrysler has acquired 100 acres at Chakan Industrial Park.
Currently, DaimlerChrysler is importing Mercedes-Benz trucks.
"Daimler is also expected to get into the production of luxury coaches and buses" reports Economic Times. In addition to this, Daimler would develop bus bodies at its India unit.
It still remains to be seen how soon DaimlerChrysler India commences domestic production. The CV segment is currently in the midst of a slowdown and market leader Tata Motors has recently cut production.
Bushroda
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Chandigarh tops list of boom towns of tomorrow, Nagpur 2nd
28 Jun, 2007 l 0122 hrs ISTlTIMES NEWS NETWORK
Always wanted to buy a house but just cant afford one any longer? Have a little surplus money that youd like to invest in real estate but find land prices in your city completely out of reach? It might not be a bad idea to think beyond life in a metro and consider some of Indias smaller cities, which could be where the next big boom is coming.
Thats right. If you thought all the real estate action was in the metros, think again. A booming economy and surging service sector have ensured a surge in income and purchasing power even in smaller towns. And the need to keep costs in check is prompting many corporates to check out B cities even as retail chains are eyeing potentially lucrative customer bases.
So which are the boom towns of tomorrow? A study of Indias emerging growth centres has come up with a list of 15 cities, all of which share the advantages of relatively low real estate cost, plenty of land available for development, an untapped pool of manpower and rising quality of life.
After assessing cities on the basis of five key parameters real estate, people, physical infrastructure, social infrastructure and business environment the study concluded that Indias hottest emerging city is Chandigarh. Indias first planned city got top ranking for the potential of its real estate market, physical infrastructure and business environment. While there is little space left within the city itself, Chandigarh scores because of the rapid development taking place on its outskirts, in areas like Panchkula, Mohali, Zirakpur and Dera Bassi on the Chandigarh-Ambala highway. Good connectivity, low operational costs and high disposable income also contributed to it being declared Indias hottest emerging city.
Chandigarh is followed by Nagpur, which has seen a boom in both commercial and residential construction. With efforts on to improve the citys infrastructure, it has the potential for developing into a much sought after destination, especially since plentiful supply of educated manpower and lots of land for large campus developments are attracting many IT companies to the city. The study, conducted by real estate consultancy Knight Frank, puts Goa and Kochi at joint third place.
28 Jun, 2007 l 0122 hrs ISTlTIMES NEWS NETWORK
Always wanted to buy a house but just cant afford one any longer? Have a little surplus money that youd like to invest in real estate but find land prices in your city completely out of reach? It might not be a bad idea to think beyond life in a metro and consider some of Indias smaller cities, which could be where the next big boom is coming.
Thats right. If you thought all the real estate action was in the metros, think again. A booming economy and surging service sector have ensured a surge in income and purchasing power even in smaller towns. And the need to keep costs in check is prompting many corporates to check out B cities even as retail chains are eyeing potentially lucrative customer bases.
So which are the boom towns of tomorrow? A study of Indias emerging growth centres has come up with a list of 15 cities, all of which share the advantages of relatively low real estate cost, plenty of land available for development, an untapped pool of manpower and rising quality of life.
After assessing cities on the basis of five key parameters real estate, people, physical infrastructure, social infrastructure and business environment the study concluded that Indias hottest emerging city is Chandigarh. Indias first planned city got top ranking for the potential of its real estate market, physical infrastructure and business environment. While there is little space left within the city itself, Chandigarh scores because of the rapid development taking place on its outskirts, in areas like Panchkula, Mohali, Zirakpur and Dera Bassi on the Chandigarh-Ambala highway. Good connectivity, low operational costs and high disposable income also contributed to it being declared Indias hottest emerging city.
Chandigarh is followed by Nagpur, which has seen a boom in both commercial and residential construction. With efforts on to improve the citys infrastructure, it has the potential for developing into a much sought after destination, especially since plentiful supply of educated manpower and lots of land for large campus developments are attracting many IT companies to the city. The study, conducted by real estate consultancy Knight Frank, puts Goa and Kochi at joint third place.
Bushroda
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Sensex may touch 16k mark by mid-2008: Poll
REUTERS[ WEDNESDAY, JUNE 27, 2007 09:00:04 AM]
MUMBAI: Indian stocks are expected to rise another 5 per cent by the end of the year, extending a four-year bull run, though at a much slower pace than in the previous two years, a Reuters poll showed on Tuesday.
Analysts expect banks and telecoms to drive the gains, while automakers lag behind as higher interest rates slow consumption in Asia's third-largest economy.
The Bombay Stock Exchange's main 30-share index is expected to rise to 15,250 points by the end of 2007, for a 10.6 per cent full-year gain, the median forecast of 14 India-based and European analysts showed. It is expected to rise to 16,000 points by mid-2008 from Monday's close of 14,487.72.
The Indian economy has grown an average 8.6 per cent over the past four years, powered by rising corporate profits and attracting strong capital inflows that have boosted shares. The main index gained 73 per cent in 2003, 13 per cent in 2004, 42 per cent in 2005 and 47 per cent in 2006. It is up 5 per cent so far in 2007.
Analysts say rising inflation, which hit a two-year high of 6.7 per cent in January, and five interest rate increases in the past year have muted market sentiment in 2007.
However, scorching economic growth and net foreign fund inflows of $4.4 billion since January have lent it support, and analysts say they expect inflation, which is now at a 14-month low of 4.3 per cent, to remain tame.
"In our view interest rates will stabilise and inflation will come under control, and this will ease the pressure on (the central bank) to increase interest rates," said Amitabh Chakraborty, president for equities at Religare Securities Ltd.
He said rapid economic expansion had helped banks. In the past year, shares of State Bank of India, the country's largest lender, have risen 88 per cent, while ICICI Bank has gained 86 per cent.
Last week, ICICI Bank, the second-largest lender, raised $4.9 billion in the country's biggest share sale. "The banking sector is the direct play on the economy, and when the economy is growing rapidly, the credit growth will be quite robust," Chakraborty said.
Analysts said banks also were poised for consolidation ahead of a possible new policy regime in 2009, when controls on foreign banks will be reviewed. But India's automobile makers are suffering as rising interest rates have hurt demand, and most of the analysts polled said the sector would continue to underperform.
Bajaj Auto, Hero Honda and Tata Motors have been the worst performing shares among the top 30 stocks in the index in the past year.
Most analysts said the telecoms sector, which in February saw Vodafone buy a controlling stake in India's Hutchison Essar from Hutchison Telecommunications International Ltd, would remain attractive.
India is the world's fastest-growing cellular market, adding more than 6 million users every month. The top performers in the 30-issue index are telecoms firms Bharti Airtel Ltd and Reliance Communications, which have more than doubled in the past year. "We are positive on Reliance Communications. It has a significant acquisition potential," Religare's Chakraborty said.
REUTERS[ WEDNESDAY, JUNE 27, 2007 09:00:04 AM]
MUMBAI: Indian stocks are expected to rise another 5 per cent by the end of the year, extending a four-year bull run, though at a much slower pace than in the previous two years, a Reuters poll showed on Tuesday.
Analysts expect banks and telecoms to drive the gains, while automakers lag behind as higher interest rates slow consumption in Asia's third-largest economy.
The Bombay Stock Exchange's main 30-share index is expected to rise to 15,250 points by the end of 2007, for a 10.6 per cent full-year gain, the median forecast of 14 India-based and European analysts showed. It is expected to rise to 16,000 points by mid-2008 from Monday's close of 14,487.72.
The Indian economy has grown an average 8.6 per cent over the past four years, powered by rising corporate profits and attracting strong capital inflows that have boosted shares. The main index gained 73 per cent in 2003, 13 per cent in 2004, 42 per cent in 2005 and 47 per cent in 2006. It is up 5 per cent so far in 2007.
Analysts say rising inflation, which hit a two-year high of 6.7 per cent in January, and five interest rate increases in the past year have muted market sentiment in 2007.
However, scorching economic growth and net foreign fund inflows of $4.4 billion since January have lent it support, and analysts say they expect inflation, which is now at a 14-month low of 4.3 per cent, to remain tame.
"In our view interest rates will stabilise and inflation will come under control, and this will ease the pressure on (the central bank) to increase interest rates," said Amitabh Chakraborty, president for equities at Religare Securities Ltd.
He said rapid economic expansion had helped banks. In the past year, shares of State Bank of India, the country's largest lender, have risen 88 per cent, while ICICI Bank has gained 86 per cent.
Last week, ICICI Bank, the second-largest lender, raised $4.9 billion in the country's biggest share sale. "The banking sector is the direct play on the economy, and when the economy is growing rapidly, the credit growth will be quite robust," Chakraborty said.
Analysts said banks also were poised for consolidation ahead of a possible new policy regime in 2009, when controls on foreign banks will be reviewed. But India's automobile makers are suffering as rising interest rates have hurt demand, and most of the analysts polled said the sector would continue to underperform.
Bajaj Auto, Hero Honda and Tata Motors have been the worst performing shares among the top 30 stocks in the index in the past year.
Most analysts said the telecoms sector, which in February saw Vodafone buy a controlling stake in India's Hutchison Essar from Hutchison Telecommunications International Ltd, would remain attractive.
India is the world's fastest-growing cellular market, adding more than 6 million users every month. The top performers in the 30-issue index are telecoms firms Bharti Airtel Ltd and Reliance Communications, which have more than doubled in the past year. "We are positive on Reliance Communications. It has a significant acquisition potential," Religare's Chakraborty said.
Bushroda
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Tata Power May Buy Vessels, Shipping Company Stakes
BLOOMBERG
By Michele Batchelor and Archana Chaudhary
June 27 (Bloomberg) -- Tata Power Co., India's third- biggest utility, said it may buy vessels or stakes in shipping companies to transport coal from Indonesia, after acquiring shares of two mines in the Southeast Asian nation.
The company has appointed an adviser to look at the options including long-term charters, Managing Director Prasad Menon told reporters in Singapore today, without elaborating. Tata Power is in talks with shipping companies and agents, he said.
Acquiring a vessel or a shipping group's stake will help the Mumbai-based company cut transportation costs. The Baltic Dry Index, a measure of commodity-shipping costs on different routes and ship sizes, has risen 37 percent this year, according to the London-based Baltic Exchange.
``Picking up a stake in a shipping company will mean ensured capacity for Tata Power, which makes sense in the long run,'' said Sameer Ranade, an analyst at PINC Research in Mumbai. ``But it may have to pay a premium for the stake considering tanker demand and high freight prices.'' Ranade has a ``hold'' rating on the stock.
Tata Power shares rose 13.1 rupees, or 2 percent, to 645.55 rupees at the 3:30 p.m. close on the Bombay Stock Exchange. The stock has risen 15 percent this year, outperforming the 4.6 percent gain in the Sensitive Index.
Coal Purchase
The company agreed in March to pay $1.3 billion to PT Bumi Resources, Asia's third-biggest coal miner, for a 30 percent stake in PT Kaltim Prima Coal and PT Arutmin. The acquisition entitled Tata Power to purchase 10 million metric tons of coal from one of the mines, securing supplies of the fuel for its power plants to be built on India's west coast.
Indian power producers are buying coal to help the government meet a target of almost tripling the country's generating capacity by 2012 as demand in the world's second- fastest growing major economy rises.
Tata Power will need to import 21 million tons of coal a year by 2013, from 2 million tons now, Menon said.
Coal is the world's fastest-growing energy source as rising oil prices prompt users to switch fuels, the U.S. Energy Information Administration said in a report published May 21. China, India, and the U.S. will collectively account for 86 percent of the increase in global coal demand by 2030, it said.
Tata Power reported May 30 fourth-quarter profit declined by a third to 927.3 million rupees ($22.8 million) after it set aside money from a tax refund for distribution to consumers. Revenue fell 19 percent to 9.47 billion rupees.
BLOOMBERG
By Michele Batchelor and Archana Chaudhary
June 27 (Bloomberg) -- Tata Power Co., India's third- biggest utility, said it may buy vessels or stakes in shipping companies to transport coal from Indonesia, after acquiring shares of two mines in the Southeast Asian nation.
The company has appointed an adviser to look at the options including long-term charters, Managing Director Prasad Menon told reporters in Singapore today, without elaborating. Tata Power is in talks with shipping companies and agents, he said.
Acquiring a vessel or a shipping group's stake will help the Mumbai-based company cut transportation costs. The Baltic Dry Index, a measure of commodity-shipping costs on different routes and ship sizes, has risen 37 percent this year, according to the London-based Baltic Exchange.
``Picking up a stake in a shipping company will mean ensured capacity for Tata Power, which makes sense in the long run,'' said Sameer Ranade, an analyst at PINC Research in Mumbai. ``But it may have to pay a premium for the stake considering tanker demand and high freight prices.'' Ranade has a ``hold'' rating on the stock.
Tata Power shares rose 13.1 rupees, or 2 percent, to 645.55 rupees at the 3:30 p.m. close on the Bombay Stock Exchange. The stock has risen 15 percent this year, outperforming the 4.6 percent gain in the Sensitive Index.
Coal Purchase
The company agreed in March to pay $1.3 billion to PT Bumi Resources, Asia's third-biggest coal miner, for a 30 percent stake in PT Kaltim Prima Coal and PT Arutmin. The acquisition entitled Tata Power to purchase 10 million metric tons of coal from one of the mines, securing supplies of the fuel for its power plants to be built on India's west coast.
Indian power producers are buying coal to help the government meet a target of almost tripling the country's generating capacity by 2012 as demand in the world's second- fastest growing major economy rises.
Tata Power will need to import 21 million tons of coal a year by 2013, from 2 million tons now, Menon said.
Coal is the world's fastest-growing energy source as rising oil prices prompt users to switch fuels, the U.S. Energy Information Administration said in a report published May 21. China, India, and the U.S. will collectively account for 86 percent of the increase in global coal demand by 2030, it said.
Tata Power reported May 30 fourth-quarter profit declined by a third to 927.3 million rupees ($22.8 million) after it set aside money from a tax refund for distribution to consumers. Revenue fell 19 percent to 9.47 billion rupees.
Bushroda
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India to be world's 3rd biggest banking hub
AGENCIES[ TUESDAY, JUNE 26, 2007 09:35:42 AM]
LONDON: China is set to become the world's largest banking market and India the third-largest behind the US, according to a study by accounting firm PricewaterhouseCoopers LLP.
By 2050, banks in the seven emerging economies of China, India, Brazil, Russia, Mexico, Indonesia and Turkey will have higher profits and more assets than those in the Group of Seven countries, the report said.
China, India and the five other economies in what PricewaterhouseCoopers calls the E7 group of emerging countries will have economies between 25 per cent and 75 per cent larger than Canada, France, Germany, Italy, Japan, the UK and the US in 2050, the accounting firm said.
Borrowing from banks in those countries is likely to grow faster than the economy as a whole, the report said.
"A lot of these markets look quite risky, but they're one of the places where you're going to get the biggest growth," John Hawksworth, head of macro-economics at the firm said in a phone interview.
``We might see some of those banks in China and India looking to acquire banks in the US and Europe and become global players. If you're not over there, your growth will be limited and you might end up getting taken over by one of them.''
AGENCIES[ TUESDAY, JUNE 26, 2007 09:35:42 AM]
LONDON: China is set to become the world's largest banking market and India the third-largest behind the US, according to a study by accounting firm PricewaterhouseCoopers LLP.
By 2050, banks in the seven emerging economies of China, India, Brazil, Russia, Mexico, Indonesia and Turkey will have higher profits and more assets than those in the Group of Seven countries, the report said.
China, India and the five other economies in what PricewaterhouseCoopers calls the E7 group of emerging countries will have economies between 25 per cent and 75 per cent larger than Canada, France, Germany, Italy, Japan, the UK and the US in 2050, the accounting firm said.
Borrowing from banks in those countries is likely to grow faster than the economy as a whole, the report said.
"A lot of these markets look quite risky, but they're one of the places where you're going to get the biggest growth," John Hawksworth, head of macro-economics at the firm said in a phone interview.
``We might see some of those banks in China and India looking to acquire banks in the US and Europe and become global players. If you're not over there, your growth will be limited and you might end up getting taken over by one of them.''
Bushroda
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Leather crafter aims to become India's first global fashion label
BUSINESS REPORT, SOUTH AFRICA
June 27, 2007
By Anil Penna
Bangalore, India - As Western luxury brands target India's rising rich, a leather goods firm aims to turn the tables and become the country's first global fashion marque.
Hidesign, based in the former French colony of Pondicherry in the southeast, logged $80 million (R571 million) in sales at home and abroad last year, and is seeking to ride on an international fashion name to penetrate markets abroad.
It was in talks to sell a 20 percent stake to French fashion house Louis Vuitton, which was assessing the Indian brand's value, said chief executive Kunal Sachdev.
A preliminary agreement was in place before the investment, said Sachdev, adding that Hidesign would also collaborate with Louis Vuitton in setting up a leather factory near Chennai in southern India.
Hidesign runs 12 stores overseas, including in China, Russia and South Africa. It wanted to increase that number to 50 in three years, he said.
The brand is sold from Australia to the Middle East, Europe and Africa. It can be found in multibrand department stores such as House of Fraser, John Lewis, Magasin Du Nord, Selfridges and Myers.
"There are no previous examples of an Indian brand establishing a footprint overseas," said Arvind Singhal, who heads retail consultancy Technopak. "Hidesign is the first.
"There is a retail opportunity in the mass prestige market for products that are not as expensive as Gucci nor very cheap," he added. "Hidesign will appeal to those who cannot spend $2 000 but can afford $250."
A tie-up with Louis Vuitton would give Hidesign international respectability and recognition, enabling it to compete overseas with brands that fall in the same segment, such as Coach of the US, Singhal said.
Hidesign was founded in 1978 as a one-man workshop by Dilip Kapur, who began handcrafting leather bags, jackets and other accessories, becoming one of the best-known brands in India, where it now operates 18 boutiques.
Kapur makes a virtue of going back to traditional leather tanning methods, using natural vegetable oils and dyes in his products - hand and computer bags, briefcases, wallets, belts - to give them a distinctive shine and feel.
Hidesign avoids pigments and lacquers; its oil-tanned ranch leather is very lightly dyed and then covered with natural oils. The brass buckles and rivets are individually sandcast and hand polished in the tradition of old European saddle making.
Such products may appeal to environmentally conscious consumers, but that may not open the doors of the world's biggest shops to an emerging company with aspirations to become a global player.
Hidesign's international expansion depended on its ability to open exclusive stores in prestigious outlets that were prepared to let out premium space to only the most exclusive brands, said Sachdev.
"In building the brand internationally, we have to go the exclusive-store route," he said. "Just advertising won't give customers an idea of the brand they are buying, the philosophy behind it."
That's where Louis Vuitton comes in.
"The fact that Louis Vuitton is associated with us would open up the doors internationally for us, in terms of opening stores and widening our global presence," said Sachdev, who is targeting 30 percent growth in annual sales.
Louis Vuitton, which has one store each in New Delhi and Mumbai, and may soon open a third in Bangalore, is trying to expand in India, a nation of 1.1 billion people.
So are other international luxury brands.
Hidesign's local market knowledge would be useful to the French fashion house, although the brands would remain independent, said Sachdev.
India's consumer market is expected to grow fivefold to $1.5 trillion by 2025 as a fast-growing economy boosts the personal incomes of a youthful population, according to the consulting company McKinsey.
"After China, India will be the next growth story," Yves Carcelle, the chief executive of Louis Vuitton in New Delhi, said recently.
"But right now, we are [at] the beginning."
BUSINESS REPORT, SOUTH AFRICA
June 27, 2007
By Anil Penna
Bangalore, India - As Western luxury brands target India's rising rich, a leather goods firm aims to turn the tables and become the country's first global fashion marque.
Hidesign, based in the former French colony of Pondicherry in the southeast, logged $80 million (R571 million) in sales at home and abroad last year, and is seeking to ride on an international fashion name to penetrate markets abroad.
It was in talks to sell a 20 percent stake to French fashion house Louis Vuitton, which was assessing the Indian brand's value, said chief executive Kunal Sachdev.
A preliminary agreement was in place before the investment, said Sachdev, adding that Hidesign would also collaborate with Louis Vuitton in setting up a leather factory near Chennai in southern India.
Hidesign runs 12 stores overseas, including in China, Russia and South Africa. It wanted to increase that number to 50 in three years, he said.
The brand is sold from Australia to the Middle East, Europe and Africa. It can be found in multibrand department stores such as House of Fraser, John Lewis, Magasin Du Nord, Selfridges and Myers.
"There are no previous examples of an Indian brand establishing a footprint overseas," said Arvind Singhal, who heads retail consultancy Technopak. "Hidesign is the first.
"There is a retail opportunity in the mass prestige market for products that are not as expensive as Gucci nor very cheap," he added. "Hidesign will appeal to those who cannot spend $2 000 but can afford $250."
A tie-up with Louis Vuitton would give Hidesign international respectability and recognition, enabling it to compete overseas with brands that fall in the same segment, such as Coach of the US, Singhal said.
Hidesign was founded in 1978 as a one-man workshop by Dilip Kapur, who began handcrafting leather bags, jackets and other accessories, becoming one of the best-known brands in India, where it now operates 18 boutiques.
Kapur makes a virtue of going back to traditional leather tanning methods, using natural vegetable oils and dyes in his products - hand and computer bags, briefcases, wallets, belts - to give them a distinctive shine and feel.
Hidesign avoids pigments and lacquers; its oil-tanned ranch leather is very lightly dyed and then covered with natural oils. The brass buckles and rivets are individually sandcast and hand polished in the tradition of old European saddle making.
Such products may appeal to environmentally conscious consumers, but that may not open the doors of the world's biggest shops to an emerging company with aspirations to become a global player.
Hidesign's international expansion depended on its ability to open exclusive stores in prestigious outlets that were prepared to let out premium space to only the most exclusive brands, said Sachdev.
"In building the brand internationally, we have to go the exclusive-store route," he said. "Just advertising won't give customers an idea of the brand they are buying, the philosophy behind it."
That's where Louis Vuitton comes in.
"The fact that Louis Vuitton is associated with us would open up the doors internationally for us, in terms of opening stores and widening our global presence," said Sachdev, who is targeting 30 percent growth in annual sales.
Louis Vuitton, which has one store each in New Delhi and Mumbai, and may soon open a third in Bangalore, is trying to expand in India, a nation of 1.1 billion people.
So are other international luxury brands.
Hidesign's local market knowledge would be useful to the French fashion house, although the brands would remain independent, said Sachdev.
India's consumer market is expected to grow fivefold to $1.5 trillion by 2025 as a fast-growing economy boosts the personal incomes of a youthful population, according to the consulting company McKinsey.
"After China, India will be the next growth story," Yves Carcelle, the chief executive of Louis Vuitton in New Delhi, said recently.
"But right now, we are [at] the beginning."
Contrarian
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Hey happy feet. Good to have you back. Im back as well.
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India's Rolta Looks West For Acquisitions
Ruth David, 06.28.07, 12:20 AM ET
FORBES, NY
MUMBAI - The midsize Indian technology company Rolta is looking at expanding in the North American and European markets and could announce an acquisition in the range of $150 million.
Sources familiar with the Mumbai-based company said it was in talks with three to four Western companies, but was likely to make just one key acquisition. Rolta is a provider and developer of tech-based geospatial information systems, engineering design automation solutions and electronic security services in India and abroad. It has depositary receipts listed in London.
Rolta last week announced that it had raised $150 million by issuing foreign currency convertible bonds in international markets. The bonds are expected to list on the Singapore Stock Exchange.
Rolta Chief Financial Officer Hiranya Ashar refused to comment on any of the prospective partners the company was in talks with. But he said one of the primary purposes of the money raised was acquisitions. We are looking at expanding in these markets. But nothing has been finalized, Ashar told Forbes.com.
Bolstered by an economy that has grown more than 8% annually since 2003, Indian firms are aggressively expanding internationally, often choosing to acquire companies that will help them ramp up faster in new geographic regions. Though the average deal size is around $160 million, there have been several multibillion-dollar acquisitions, such as Tata buying out Corus and Suzlon Energy (other-otc: SZEYF - news - people )absorbing RE Power.
Midsize companies like Rolta are making strong profits off software contracts from global clients, but the the rise of the rupee against the dollar remains a concern, said technical analyst Ashwani Gujral. He thinks it would make more sense for these companies to pursue business in European countries, where the currency is more able to withstand pressure from the rupee.
Most of Indian tech companies revenues come from the North American market, but now many are looking at increasing the share they derive from Europe.
Indian businesses often have to deal with investors concerns about high valuations when they buy abroad, but Gujral said assets everywhere have appreciated significantly in recent months. These days, there is nothing worth buying that is cheap. Indian firms are taking on bets in boom times, leveraging a lot of debt. Weve still to see how they can carry it off.
With economic growth rates at 9% to 10%, if they dont acquire now, when will they? he said.
Ruth David, 06.28.07, 12:20 AM ET
FORBES, NY
MUMBAI - The midsize Indian technology company Rolta is looking at expanding in the North American and European markets and could announce an acquisition in the range of $150 million.
Sources familiar with the Mumbai-based company said it was in talks with three to four Western companies, but was likely to make just one key acquisition. Rolta is a provider and developer of tech-based geospatial information systems, engineering design automation solutions and electronic security services in India and abroad. It has depositary receipts listed in London.
Rolta last week announced that it had raised $150 million by issuing foreign currency convertible bonds in international markets. The bonds are expected to list on the Singapore Stock Exchange.
Rolta Chief Financial Officer Hiranya Ashar refused to comment on any of the prospective partners the company was in talks with. But he said one of the primary purposes of the money raised was acquisitions. We are looking at expanding in these markets. But nothing has been finalized, Ashar told Forbes.com.
Bolstered by an economy that has grown more than 8% annually since 2003, Indian firms are aggressively expanding internationally, often choosing to acquire companies that will help them ramp up faster in new geographic regions. Though the average deal size is around $160 million, there have been several multibillion-dollar acquisitions, such as Tata buying out Corus and Suzlon Energy (other-otc: SZEYF - news - people )absorbing RE Power.
Midsize companies like Rolta are making strong profits off software contracts from global clients, but the the rise of the rupee against the dollar remains a concern, said technical analyst Ashwani Gujral. He thinks it would make more sense for these companies to pursue business in European countries, where the currency is more able to withstand pressure from the rupee.
Most of Indian tech companies revenues come from the North American market, but now many are looking at increasing the share they derive from Europe.
Indian businesses often have to deal with investors concerns about high valuations when they buy abroad, but Gujral said assets everywhere have appreciated significantly in recent months. These days, there is nothing worth buying that is cheap. Indian firms are taking on bets in boom times, leveraging a lot of debt. Weve still to see how they can carry it off.
With economic growth rates at 9% to 10%, if they dont acquire now, when will they? he said.
Bushroda
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Nice to see u back Malay. How'd ur exams go?
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