AAPI: October 2016

LISBON, 20th October 2016

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Rashtriya Chemicals to set up 1.3-mt urea plant in Iran
22.1. BRICS members to sign pact to reduce non-tariff barriers
22.2. India preferred growth market in BRICS, says PwC's John Dwyer
23.1. China's Fosun International plans to invest US$ 1
23.2. Wipro Consumer arm to buy China FMCG firm
24. Three Agreements/MoUs signed between India and Russia in the Hydrocarbon India-Russia Annual Summit held at Goa
25. French power major EDF plans US$ 2 billion green bet on India

* * *

LISBON, 20th October 2016

NEWSLETTER, 20-X-2016

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. Govt wants IITs, IIMs to go multidisciplinary for world-class institutions tag

Livemint | Prashant K. Nanda, 17 Oct. 2016

New Delhi: The government’s so-called world-class institutions plan may change the face of the country’s two most premier institutions—the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs)—by making them move beyond their respective areas of specialization (technology and management), and admit more students.

The world-class institutions will be deemed universities instead of institutions of national importance, which is the present status of IITs and IIMs. The plan to set them up was first mentioned in this year’s budget by finance minister Arun Jaitley.

The plan is still a work-in- progress and will probably require legislative changes, especially when it comes to the authority that will designate world-class institutions. Earlier this month, the human resource development (HRD) ministry released a draft policy regarding this and sought comments.

Such an institution should “compulsorily satisfy the following criteria within a reasonable pre-determined time frame from the date of notification declaring it as a World Class Institution: It should preferably be multidisciplinary and have both teaching and research focus of an exceptionally high quality…,” the draft guidelines stated.

Last month, HRD minister Prakash Javadekar had asked the IITs and IIMs in separate meetings to prepare and bid for the world-class institution tag.

A professor at one of the older IIMs, who asked not to be named, said that IIMs so far are management schools and can no way be called “multidisciplinary”.

“When the first criteria talks about this character, it indicates that they perhaps wish the IIMs bidding (to be world class institutions) to diversify,” the professor said.

Only some of the IIMs are likely to apply, he added, and they need to address the question on multidisciplinary education.

A professor at an IIT, who too asked not to be identified, agreed and said institutions wishing to get the worldclass institution tag may have to change.

This person added that during United Progressive Alliance’s second term (2009-14), there was a discussion on IITs turning multidisciplinary like a full-fledged university. “But it did not materialize. Then the context was improving global ranking.”

The guidelines also say that world-class institutions need to have at least “20,000 students over next 15 years”. That works out to around 1,334 students a year. Many of the IIMs have far less.

“It means IIMs may have to transform from class institutions to mass institutions without compromising quality.

It’s a tough task,” the IIM professor quoted above added.

Still, there’s significant incentive for the IITs and IIMs to change. The prime minister’s office has asked the HRD ministry to give complete autonomy to world-class institutions, according to media reports. This includes how they are run, their selection process, even their compensation policy. The IIMs and IITs have had several run-ins with various governments over the way they are run.

The draft guidelines also suggest that the government wants to internationalize the campuses of world-class institutions, with one in four instructors and almost one in three students from overseas.

The lack of internationalization is palpable in India’s top institutions and is considered one of the reasons why they lag in the global rankings. For instance, IIT Delhi has only four international teachers in its 466- memberstrong faculty and there were no international students in its under-graduate programmes, as per the QS World university rankings data for 2016-17.

IIT-Delhi, at 185, is the second Indian institution after Indian Institute of Science Bangalore to be in the top 200 universities list this year. At Massachusetts Institute of Technology, the top university as per the QS rankings this year, there are 1,679 international faculty members out of a total of 2,982. And 30% of all MIT students are from foreign countries.

Independently, some of the IITs have started looking for foreign faculty or reputed academics of Indian origin. S.K. Das, director of IIT Ropar, says that he has visited the US and Canada and offered teaching positions to some teachers from those countries.

“For some of our top institutions to become world-class in a real sense, they need to change their character. So far, they haven’t done so, and now, there is a sweet reason to change—you will get more academic and administrative freedom as well as more funds if you are successful in your bid to get the world-class institution tag,” said a government official, who spoke on condition of anonymity.

1.2. Number of women on Indian boards doubles in 5 years

Business Standard | Sep. 27, 2016

The number of women on the boards of companies in India has doubled over the past six years, from 5.5 per cent in 2010 to 11.2 per cent in 2015, said a report by Credit Suisse Research Institute. This has helped closed India’s gap with the global average of 14.7 per cent. However, India saw a slight decline in management diversity, from 7.8 per cent in 2014 to 7.2 per cent.

The report said India had the second lowest representation of women at the senior management level in the region, behind Japan and South Korea (both at 2.3 per cent). Asia Pacific has shown significant progress in gender diversity.

According to the bi-annual CS Gender 3000 report, companies with a higher participation of women in decision-making roles generate higher market returns and superior profits. With the data provided by the CSG 3000, the report examines whether the evidence continues to link gender diversity to better performance and looks specifically at firms with more than 50 per cent female representation in senior management, microfinance institutions and venture capital firms.

The latest CSG 3000 report showed that of the 1,400 companies analysed in 12 markets across the Asia Pacific region, there has been considerable improvement, with a 60 per cent rise in gender diversity at the boardroom level from 2010 to 2015. However, overall female representation at boardroom level in Asia

remains low at below 10 per cent at the end of 2015.

Companies with greater diversity continue to be rewarded with excess returns. Of the 265 APAC companies with over $10 billion market capitalisation, those with at least one female board member delivered 58 per cent out-performance in share prices from 2006 to July 2016.

On the management front, the APAC region also had the highest level of female chief executive officers. However, the report said both Emerging Asia and Developed Asia saw a decline in female CEO representation from two years ago, by about one percentage point.

Asian countries continue to dominate top positions in management gender diversity. Thailand overtook Singapore (now third in the region) to the top in terms of female participation in senior management (CEO and those reporting to the CEO), with 27.8 per cent of senior positions now held by women, followed by the Philippines, which registered 25 per cent. In Emerging Asia, women make up 13.2 per cent of business unit heads, the highest among all regions and a 17 per cent improvement from 11.3 per cent in 2014. "Gender diversity in both board and particularly senior management position is a tremendousbenefit to

companies and their shareholders. To understand the impact of gender diversity, we need to focus on management,” said Stefano Natella, head of Global Markets Research.

Natella said data show there is a strong correlation between companies with high levels of diversity in management and their performance. The report said the higher the percentage of women in top management positions, the greater the excess returns for shareholders. Hard metrics of financial performance have also justified this superior performance, according to the data. From year-end 2013 to mid-2016 , the outperformance of companies where 25 per cent of senior posts were held by women was a compound annual growth rate (CAGR) of 2.8 per cent, it was 4.7 per cent for firms with 33 per cent representation and 10.3 per cent for those with more than 50 per cent women in top management positions. Over this period there was a 1 per cent annual decline for the MSCI ACWI.

While the percentage of women on boards is rising, diversity in senior management continues to be of concern for countries like India. The report said there were Latin America, Japan, South Korea, India, Europe, West Asia and Africa have made limited headway in terms of diversity as cultural biases remain entrenched with an insufficient pipeline of and opportunity for female talent to make changes over the short or medium term.

However, the report said there is no consistent correlation between higher diversity in the boardroom and increased participation of women in senior management. It also said, paradoxically, that efforts made to increase gender diversity in boardrooms can limit the available female talent in senior management and hinder expanded representation of women in executive positions in the future.

The “Queen Bee” syndrome, which argues that women who have made it to senior positions actively seek to exclude other women from promotions into top management, has also been debunked by the report. Data in the CSG 3000 dispute this, as they show that female CEOs globally are significantly more likely to surround themselves with women in senior roles. Female CEOs are 50 per cent more likely than male CEOs to have a female chief financial officer and 55 per cent more likely to have women running business units, it said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

2.1. India is acknowledged as an economic power: Onno Ruhl, World Bank's Country

Director in India

Economic Times | Sep. 14, 2016

New Delhi: India is now acknowledged as a country of global importance beyond its history and sheer size of population, as an economic power, says Onno Ruhl, who completes his four-year term as the World Bank's country director in India. In an interview to ET's Deepshikha Sikarwar and Vinay Pandey, he says climbing into top 50 will take some time but can be done.

Edited excerpts:

You have been here for four years. You have seen two governments. How do you see this transition?

India must be in one of its most dynamic periods of history. What we have seen is end of a mandate that led to some hesitation in policymaking, to a very a strong mandate which led to ambition. There was high ambition in the government and there still is, but the actual pace of reform had to be tempered by the fact that in the Rajya Sabha there is still no majority.

But if you look at where the country is now and where it was four years ago, then suddenly it looks like it was a fast change. Macro fundamentals are very, very solid. In 2013, India was most vulnerable during the taper tantrum. Now India is a star. India is now acknowledged as a country of global importance beyond its history and sheer size of population, as an economic power. Therefore, on balance you see a gradual but persistent shift with high ambition and a different projection internationally, leading to a very ambitious change.

Some of the government's initiatives are close to the World Bank's mandate. How do you see them?

Cleaning the Ganga, Swachh Bharat, 100 cities, 500 cities, 24x7 power, Skill India...In the beginning people said these programmes sound good, but is this something comprehensive and then people realise what is in there is the recognition that India urbanises, and that's positive. The recognition that Indians need a level of service that behoves a middle income country and middle-class nations, which India is in the process of becoming. Most importantly, the recognition that demographic dividend will only pay off if people benefit from investment and are skilled enough to be competitive. You can mobilise around it and then the target setting. My favourite target is October 2, 2019, the most important and the most difficult, the open defecation and Swachh Bharat.

Do you see any transformational change in implementation?

One big change is the goal setting and holding people accountable for those goals, which represents a different approach to how politics and administration have interacted in India. It's really good, it's really a game changer. The government says we want business, we want investment, so whatever is wrong we will try and fix it and will tell people who give permits or do inspection that their job is to facilitate is a big shift, not universally successful as yet. It is not perfect, but direction of travel is there.

How do you see certain isolated incidents that threaten to disrupt reform agenda?

You are getting in the space of diversity and tolerance and things like that. The World Bank really has no mandate on that so I would limit to a few observations. First, for a diverse society like India to grow and prosper, that overall climate is harmonious, peaceful and that there are outlets for tension are positive and not negative.

From where I am sitting I would say, yes, there are incidents, but look at the world today. Look at the incidents we have had in France, Belgium, United States, Turkey, let's not go to Syria. India looks pretty stable. Indians sometimes criticise themselves too much. I don't think the world looks at India as a hotspot or trouble spot.

What worries you most about India?

There is one development indicator where India is dead last in the world, the sex ratio. Building on that, India's female labour participation rate is second to last among G20 countries. Only Saudi Arabia is worse. It's significantly lower in urban areas than rural India. For India to become great and get beyond the middle

income trap, there is no country that does that without drawing on the talent of its women in a more significant way. I see a little bit of complacency. It's the number one issue.

Ease of doing business has really caught on in India, with states competing with each other. Is it yielding results?

There are two approaches here - one is to set a very ambitious goal on the global ranking. The global ranking means Delhi and Mumbai. So it's a very simplified and imperfect way of measuring what happens in India. Delhi and Mumbai are actually not the most dynamic parts of the Indian economy. The goal setting is good. It's completely shifted the debate we had with DIPP and other agencies on what to do. This will lead to result. Other countries have done it. It's a big effort and other countries are not sitting idle. Climbing into top 50 will take some time but can be done.

The other approach is even more transformational, which is the work on ranking the states. I live near the Claridges (hotel in central Delhi). There was this big hoarding there saying Jharkhand is no. 3 in business ranking. Who in India could have anticipated something like this? Nobody said it is BJP's goal. This is much more relevant than global ranking. This covers all of India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

2.2. India's prospects over next 20-30 years look good: Jamie Dimon, Chairman, JPMorgan

Times of India | Sep. 19, 2016

New Delhi: Jamie Dimon as the chairman of JPMorgan is probably the only Wall Street chief to have weathered the Global Financial Crisis and guided his bank to the top rank. He doesn't mince words, be it the Fed's stance on interest rates, or policy makers who come up with strict rules that curb businesses. In an interview with MC Govardhana Rangan & Saloni Shukla , Dimon speaks his mind on issues ranging from the US elections to interest rates to China to the Indian economy.

Edited excerpts:

Has India's image changed after Narendra Modi became Prime Minister?

I think so, and for the positive. You are the fastestgrowing country on the planet today and you are making changes. Politics is hard, but he is a successful and a strong leader and your foreign direct investment has doubled in the last four-five years.

India is a bright spot, but some would say that there is excessive self-congratulation. What is your view?

India is definitely a bright spot, it's not overdone. It is growing at 7%-plus, the deficit has gone down quite a bit, and the government has made changes which are conducive to future growth. All countries have economic cycles but it is quite a positive sign. I am not interested when people refer to a quarter or this year because the way I look at a country is what are its prospects over the next 20-30 years, and India's are good.

What convinced you about India's promise?

My first trip to India with JP Morgan was in 2004-05 when we were a smaller company. We covered 20 Indian companies in terms of research and we had 100 employees. Now we provide research on 120 companies and we distribute this globally. We continue to invest in our business here; and in the future, we will have 30,000 people in JP Morgan's Global Service Centre, which supports the firm globally in areas such as technology, security, programming and research. The GSC covers a whole gamut of services and it's still growing.

What about the Indian economy itself?

What you should also keep in mind is that you have a lot of successful companies in India. What makes these companies stand out is that they grew independently and weren't championed by the government.They grew because they are good at what they do in terms of offering their services around the world. If you compare this to other markets and countries, it took a lot of government support to have the companies they have now.

A lot of foreign banks in India are shrinking, but you are one of the few to have opened new branches...

We always take a long-term view on each market. We are not a fair-weather friend.We are here during the good times and the bad times and we want the Indian people and the Indian government to say that they are better off with JP Morgan being here and that they view JP Morgan as a consistent friend. There have been ups and downs since I have been coming here, but I don't worry about those ups and downs because we have our eye on the long term. We grow with countries as they grow and with companies as they grow. Our lending here is $2 billion and we have an asset-management arm investing $9 billion in India across asset classes and this will double or even triple over the next 15-20 years.

With regard to government and Reserve Bank of India policies on foreign banks, are there issues to be addressed?

It took us a long time to get our new branches, so I applaud Kalpana Morparia, our CEO for India. I think foreign investors should be able to hold more than 4.99% of an Indian bank. However, since JP Morgan is not moving into the retail business in India it's not a huge complaint. For the most part JP Morgan doesn't feel a lot of restrictions as it conducts business here.

If you had an opportunity to buy a large Indian private sector bank, which one would that be?

Remember our retail business is only in the US and it's very, very hard to compete in a business like retail in any other country. I couldn't open 100 branches here and be good at it. Local companies like ICICI Bank would eat us for breakfast just like it would be very hard for them to open retail over there. We are instead focused on the institutional business and helping large companies and governments.We help bank countries and companies around the world. For example, we just raised $3 billion in the sovereign bond market in a single day.

How do you look at the political leadership in various countries you invest vis-a-vis India?

India as you know has a very complicated political system. Ten years ago the thought that a Prime Minister would get a simple majority was beyond imagination. But I don't want to just compare India with other emerging market countries -look at Italy, they have had 50-60 Prime Ministers in the last 60 years. These things occur when democracies are set up. In America, we have a two-party system and the American constitution is a piece of brilliance but they did not know when they set it up we would just have a two party system. It just so happens that our electorate pushed towards the two-party system because it's a very good way to govern. If you have too many parties, it is very hard to achieve things that need to get done with regards to education, roads, hospitals and businesses. Politics is very hard in many different countries.

You are among the few from the world of finance who wants the Fed to raise interest rates. The markets warn against such a move. Why?

The market doesn't say anything. The market is just a bunch of people buying and selling every single day and countries don't have to have the same interest rates. If America is growing and America's unemployment is low, then it should have a monetary policy that is good for America; and if America is growing that's good for you too. Whether rates are 3% or 1%, growing should be more important to you than our interest rates. But interest rate movements affect financial markets...

The normalization of interest rates is a good thing, but 25 basis points in itself is irrelevant and everyone knows it. In the old days, rates going up was considered tightening, and when they tightened they took money out of the system. Today, they are just raising rates by dictating returns on reserves so I am not sure it's quite the same thing as tightening. They are not actually taking money out of the system. I think the riskier thing is using extraordinary monetary policy when you in fact don't need it. America has 4.9% unemployment, we have added 15 million jobs since the Great Recession. Household wages are going up, it's seen a 5% leap. We have a lot of good news and I don't see these potholes that will derail America. I don't think it would have mattered that much if they had raised the rates in September. I would have raised it.

What's your view on negative interest rates?

I personally don't like them and I am not sure they are going to work. It doesn't seem as if it has worked. Some very smart people think it has worked a little bit but it's like pushing string at its point. If you are a company, I cannot make you spend more money because rates are lower. I don't know of any business that has said they are going to build a new plant because rates are low. And savers have to save more money. I am not sure consumers spend more if you have low rates. You know this phenomenon in airplanes that the air flows one way and when it goes to high speed it flows the other way -that might be monetary policy.So I am not sure if zero works.

You have said you won't buy 10-year US treasuries...

I wouldn't and I have been right since I have said that.

So is that an indication of a bubble in this asset class?

I am always very careful. I look at probabilities. I think there is a high probability of people saying it's too low. Again we have added 15 million jobs, wages are going up, inflation is going up, there are no potholes and housing is in short supply. If you look at the buyers of 10-year bonds since QE (quantitative easing) started - it's the US government, the Chinese government, other governments, US banks, because there is a change in regulatory policy, and the so-called risk-off buyers who get scared and jump into 10-year. The first three have disappeared already. But when things get good, eventually there won't be people who are going to jump into a 10-year as a risk haven. The US treasury curve is not a real market unlike the credit curve of the world where you freely buy and sell and I think there is a quite high probability that it will go up more than what people think and it will be more volatile than what people think.

If someone Googles you, the first thing that pops up is your statement that you would like to be President. I would love to be the President of United States and I think I would be good at it but it's too late and it is too hard.

You are younger than both Hillary and Trump by a long shot.. .

OK yes, but most of these people have been in politics their whole life. They have come up through their respective parties and they have got the support of their parties. Michael Bloomberg would have been a fabulous President but he thought he wouldn't get the Democrats or the Republicans to support him and he didn't want to run as an independent because you can't win as an independent. So, yes I would have loved it but it's too late. But what is more important is that whoever is President, if they do right things America will boom.

And which one would you prefer of the two?

I can't comment on that and I have no interest in whether they call themselves Democrat or Republican, but it's important that they do the right things. We get into this debate in America that Democrats want infrastructure to create jobs. In some respects they are right we need better infrastructure. You have a new airport in Delhi and if you go to some of our airports you will find that they are surprisingly bad. But the

Republicans are also right in the idea that they don't want to tax Americans more, have that money go to Washington and watch it being misspent. There are examples where building a hospital costs $2 billion when the government does it, but would cost $350 million if a private enterprise does the same. They are both right. We need good infrastructure with property built and delivered on time at the right price. We should have more tunnels and bridges for example. If you see New York City, the traffic is similar to Delhi. I don't think we have built a tunnel or a new bridge in 50 years. Infrastructure should be planned out for the long term, yet it gets bogged down in politics.

What about human resources, talent and immigration?

We need immigration reform in the United States that is respectful to the people who have earned the right to become citizens. We need better education because it creates more jobs especially when it's done in partnership with local business. Germany is a good example, where 95% of the kids who go to a vocational school walk out with a job because their training was in conjunction with some local business.The companies say they will help train the students and they get a job.

What about the resistance to open trade and taxation issues?

We need to reform our corporate tax.It's a disaster. And we really need to get the TPP (Trans Pacific Partnership) done. All these things are great for Americans but somehow the political debate is made to reflect that they are bad. I know that some people get hurt by trade but there are ways to fix that.We call for trade assistance, which is if you can demonstrate you were hurt by trade then we will help you find another job. Trade is very good for the country, it's very good for the GDP, it's good for wages but it doesn't mean it's always good for every business. So we should have trade assistance, which is about relocation, re-education and training.

But the classical model that trade is good, more openness is good, seems to be under threat...

It's under threat because we have failed to educate a lot of people about the benefits and we have failed to acknowledge the negatives. I would say it's been great for the world. It has lifted 2 billion people out of poverty and in the next 20 years it's going to be another 2 billion people. So don't tell me it's bad for the world. Does that mean it was good for everyone in America? No it was not. That's why I go back to trade assistance.

And there's a raging debate about rising income inequality...

I think it is also true that wages haven't been going up enough for people in the lower paid jobs. And there is less certainty around their jobs and we should do something about that. Now you can blame me as the CEO of a big bank but that's not going to fix the problem --we help grow economies. What will fix the problems are the right policies that will introduce training, jobs and relocation. I always tell the Republicans that they should start their conversation by saying that we are going to take care of our sick, our old and our poor. We just want to do it intelligently. We need a better conversation and hopefully that will happen.

The opinion on China ranges from extraordinarily bullish to the opposite. What's your view?

China has done an extraordinary job with their country. The leadership is very bright, they acknowledge issues such as corruption, their inefficient state-owned enterprises, the need for market reforms, the need to build more technology. They make a lot of right moves in order to lift their people. It will be OK. You spoke about how JP Morgan uses technology to offer better services and also how it has become a mini police state. Can you explain? Ok so these are two different things.We are the largest bank in the United States of America and of course we use technology to move money around the world. Why I referred to a police station was about internal controls and cyber security. The only way you can combat cyber security is to use very strict hardline rules about the production of software, the testing of software, and who has access to your systems, the monitoring of everything that takes place out there. So we monitor everything internally. If things go wrong, we close it down.

So what keeps you awake at night?

Cyber security is one of them. We spend approximately $600 million on cyber security every year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

3.1. Government unveils sustainable Urban Development strategy for next 20 years

Press Information Bureau | Oct. 04, 2016

New Delhi: The Government today made public the Urban Development strategy for the next 20 years intending to give a big push to use growing urbanization for rapid economic development while at the same time committing itself to address issues of sustainable development and climate change. Minister of Housing & Urban Poverty Alleviation Shri M.Venkaiah Naidu released ‘India Habitat III-National Report’ ahead of the UN Habitat III Conference in Quito, Ecuador late this month where a global New Urban Agenda for the next 20 years is going to be adopted.

Speaking on the occasion of World Habitat Day, Shri Naidu said “The challenge is about ensuring sustainable development while taking advantage of economic growth that results from rapid urbanization in the country. For long, urbanization has been looked at from the limited perspective of providing basic services. But our contemporary response shall be wide ranging aiming at serving larger macro-economic transformational goals together with meeting local priorities. We need to go for a big push to harness fully the potential of urbanization”.

Stating that cities need to be made efficient, productive, inclusive, safe and sustainable, Shri Naidu said the agenda for the next two decades proposed in the National Report will be ensuring economic growth and productivity, improving quality of life and importantly, addressing issues of inclusivity, sustainability and climate change.

Elaborating on the strategy for transforming urban India, the Minister said it will be achieved through elimination of barriers to the flow of factors of production like capital, land and labour, development of rural and urban areas in a synergetic manner adopting a ‘regional planning approach’, promoting inclusivity by ensuring urban services to all, sustainable urban planning, empowering municipalities to improve governance and deal with exclusion issues, housing for all urban poor and ensuring social justice and gender equity.

Shri Naidu said that the outcomes of new urban agenda based on sustainable urban planning would include reducing water and electricity use by 50% from that of normal use, enabling over 60% of urban travel by public transport, generating half of power from renewable sources, promoting walking and cycling for last mile connectivity, compact and cluster urban development, promoting natural drainage patterns, reducing waste generation of all kind, promoting greenery and public places etc.

Referring to India ratifying Paris Agreement on Climate Change yesterday, Shri Naidu said ‘’It is an eloquent

testimony of India’s commitment to sustainable development”.

Referring to the theme of this year’s Word Habitat Day of ‘Housing at Centre’, Shri Naidu informed that under Pradhan Mantri Awas Yojana (Urban) launched in June last year, construction of 10,10,424 houses for urban poor has been approved which is close to 10.30 lakh houses approved during the nine years of JNNURM during 2005-14. An investment of Rs.59,771 cr has been approved with Central Assistance of Rs.14,955 cr, he said.

Shri Naidu further said that new urban missions launched over the last two years marked a paradigm shift in the country’s approach to urban development and were aimed at promotion and development of urban human settlements as inclusive and sustainable entities.

Minister of State for Housing & Urban Poverty Alleviation Shri Rao Inderjit Singh and Secretary(HUPA) Dr.Nandita Chatterjee also spoke on the occasion.

Differently abled children who have won in the painting competitions organized on the theme of World Habitat Day were felicitated by the Ministers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

3.2. Solar projects see a surge in corporate funding in Q3

Times of India | Oct. 14, 2016

New Delhi: Solar projects in India secured major financing deals as corporate funding of such projects rebounded in the third quarter of the current financial year, rising to nearly $3 billion in 45 deals globally against $1.7 billion in 32 deals in the second quarter.

Among the notable solar financing deals in India, Mahindra Renewables and its subsidiary Mahindra Susten, a provider of EPC (engineering procurement contracting) services for solar projects, secured a $31.6 million syndicated loan from Yes Bank and Aditya Birla Finance for its 30 MW Tandur solar project in Telangana.

Focal Energy Solar Three, a developer of renewable energy projects, secured $18.5 million syndicated loan for a 20 MW solar power project in Madhya Pradesh from Yes Bank and Tata Cleantech Capital.

Haryana Power Generation Corporation secured a $8.6 million loan from Nation al Bank for Agriculture and Rural Development under the Rural Infrastructure Development Fund for the construction of a 10 MW solar project at Panipat thermal power station in the state.

Lanco Property Management Company, a wholly owned subsidiary of Lanco Infratech, a conglomerate involved in construction, power, real estate and other infrastructure segments, acquired a solar project company with 35 MW capacity through a slump sale from Lanco Infratech. The financial terms of the transaction were, however, not undisclosed.

"Funding levels bounced back across the board compared to a weak Q2, but they are still well below last year's totals," a statement by green market tracker Mercom Capital quoted its CEO Raj Prabhu as saying on Thursday .

Solar downstream companies raised $273 million in eight deals compared to $112 million in seven deals in Q2 2016.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

4.1. Rail Budget merger is the biggest reform in the sector: Railways Minister Suresh Prabhu

Economic Times | Sep. 23, 2016

New Delhi: The merger of Rail Budget with the general budget means an instant bonanza of Rs 9,700 crore for the Railways as now it won't need to pay the central government a dividend on the capital at charge, Railways Minister Suresh Prabhu said in an interaction with ET's Rajat Arora, soon after the Cabinet approved the merger proposal.

Edited excerpts:

What does the merger of Rail Budget with the Union Budget mean for the Railways?

I would say it is the biggest reform that has been done in this sector till date. But even after the budget merger, we will retain our financial autonomy. The general managers and divisional railway managers will be equally empowered. The finances would be managed in the same manner but we will be much more focused as the procedural requirements will reduce.

We will continue to discharge all our financial commitments including capacity expansion and improving passenger amenities through our internal resources and through the budgetary support we receive from the government. The existing financial arrangements will continue and we will meet all revenue expenditure, working expenses, pay and allowances, and pensions from their revenue receipts.

We will have a distinct identity as a commercially-run department. Just that you won't hear a Rail Budget speech from me next year! We will, however, have a separate discussion on the Railways expenditure in Parliament. One good thing now is that we will get an instant relief of Rs 9,700 crore that we had to pay earlier as dividend on the capital at charge. I had requested the Prime Minister's Office and the finance minister to waive it off. They have been very positive and supportive to the growth agenda set by Railways.

Does the merger mean all your social obligations, including passenger subsidy, also get transferred?

We will continue servicing all our financial commitments through our resources, including the burden of the Seventh Pay Commission. As far as transferring of social commitments like giving concessions to students, women, senior citizens and sportsmen to their respective ministries is concerned, that is yet to be sorted out. Our officials will be looking into all those modalities. No decision has been taken on it yet.

What are the other big reforms on cards?

For the last one year, we have been aggressively pushing for setting up an independent regulator for the Railways. Very soon, we will get an independent regulator for Railways cleared by the Cabinet. It is almost in the final stages. The regulator would be free to recommend fares and freight rates. It would rationalise the entire fare structure for the railways. It would be a big transformational change for the organisation. We will keep rationalising fare as per the market demand.

You had recently introduced the concept of surge pricing for premium trains. Will it be extended to other trains as well?

As of now, we are not considering any such proposal. But I must say that there is a need for us to be market focused, so that we have enough capacity and resources to cater to demand.

What about redevelopment of stations?

The plan is very much in place. A lot of investors, state governments and multilateral agencies have shown interest. In another week, we will have an important update on it.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

4.2. Environment Ministry announces major initiative for R&D into next generation HFC refrigerant alternatives

Press Information Bureau | Sep. 16, 2016

New Delhi: The Ministry of Environment, Forest and Climate Change (MoEFCC) today announced an ambitious collaborative R&D programme to develop next generation, sustainable refrigerant technologies as alternatives to HFCs. This R&D initiative brings together Government, research institutes, industry and civil society to develop long term technology solutions to mitigate impact of currently used refrigerant gases on the ozone layer and climate. With this initiative, India reaffirms its commitment to working with all other nations to safeguard the Earth’s natural ecosystem.

Some of the key players of the initiative include the Council of Scientific & Industrial Research and its allied institutions; Department of Science and Technology; Centre for Atmospheric & Oceanic Sciences; as well as key industry players in the sector. Members of this initiative have already had multiple rounds of consultation to reach a consensus on the contours and decide on the roadmap for this initiative.

India has a small carbon footprint at citizen level and its sustainable lifestyle results in low contribution of the country to overall emissions of greenhouse gases and ozone depleting substances, as compared with other developed countries. However, there is an urgent need for developing new technologies indigenously as alternatives available today are patented apart from being expensive. A research based programme to look for cost effective alternatives to the currently used regfrigerant gases is, therefore essential.

The initiative is a significant step forward in line with India’s national focus on research, innovation and technology development and Mission Innovation. The research initiative of the Ministry will be led by the CSIR’s Indian Institute of Chemical Technology, Hyderabad. The MoEF&CC, along with the Department of Science and Technology (DST), Council of Scientific & Industrial Research (CSIR) has also decided to create a corpus fund for this research programme, with Industry also committing to contribute to the effort.

The collaboration of research institutes as well as industry will create larger ecosystem for developing sustainable solutions, and eventually deploying low global warming potential - GWP HFCs on a national scale. By establishing an effective collaboration between all important stakeholders, the initiative is focused on prioritising areas of research in new refrigerant technologies and natural refrigerants. This shall help the country leapfrog from the current technology high GWP HydroFluoroCarbons or HFCs to technologies with lower climate impact. The Ministry reiterated that the proposed initiative is an important step in the direction of enabling the country achieve national development goals, while continuing to maintain a sustainable environmental footprint.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

5.1. In three years, renewable sector will be worth Rs2 trillion ($30 bn) in India: Rahul Munjal

Livemint | Oct. 10, 2016

New Delhi: India’s renewable energy industry will be worth Rs2 trillion within the next three years and in five years India’s energy industry will be different from what we see today, said Rahul Munjal, chairman and managing director of Hero Future Energies Pvt. Ltd.

“Renewable has changed the way energy is produced and consumed in the last five years dramatically all over the world. So we need to get out of the mindset of 2010. If we don’t understand this, we will completely lose out. We are, in renewable, looking at an industry which will be of Rs200,000 crore in the next three years,” Munjal said at Mint’s Annual Energy Conclave 2016–Securing India’s Future on Wednesday.

Stating that costs have gone down by 162% since 2008 for solar and 75% incidentally for storage, Munjal said, “If you were to draw out what’s going to happen in the next five years from now, the energy industry would be very different from what we see today.”

“Renewable is still in its infancy and we have to grow manifold. Right now we have learnt to take our first step and I think this is the time we need to put down building blocks for the future. I am assured, India can produce the best scientists for R&D (research and development) in renewable. We can have the best ITI’s (Industrial Training Institutes) specialized in manpower for renewable,” he further said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

5.2. ADB to loan US$ 631 mn to first coastal corridor

Business Standard | September 21, 2016

New Delhi: Asian Development Bank (ADB) has approved a $631-million loan to the proposed Vishakhapatnam-Chennai industrial corridor (VCIC), the first coastal one in the country.

On Tuesday, the Manila-Based regional development financing bank approved the loan which will help develop infrastructural amenities and industrial capabilities in and around major cities in Andhra Pradesh such as Vishakhapatnam, Kakinada and the proposed state Capital of Amravati.

While the VCIC is aimed at promoting export-oriented manufacturing in the region, it also aims to leverage port infrastructure to evacuate these exports. One of these, the Krishnapatnam port, has the potential to match the entire container cargo handling capacity of India’s west coast.

“The port currently handles less than 0.1 million TEU (Twenty foot Equivalent Unit) of cargo annually. Capacity can be raised to more than 20 million TEU, more than Kandla, Mundhra and JNPT port combined,” said ADB’s Principal Urban Development Specialist, South Asia, Manoj Sharma.

JNPT port in Mumbai, the biggest container handling port in India, processes around 55 per cent of the country’s containerised cargo or around 4 million TEUs.

The VCIC is part of the larger East Coast Economic Corridor (ECEC), extending more than 2,500 km from Kolkata in West Bengal and Tuticorin in Tamil Nadu. The government is banking on the ECEC to create industries, jobs and give a fillip to connectivity along the east coast.

The ADB loan comprises a $500-million debt for financing infrastructure like roads, power generation and drinking water, among others. It also includes a $125-million loan to help policy interventions by the government for improving ease of business and creating a corridor management body. The loan would be disbursed as soon as the Andhra Pradesh government finalises awarding the contracts to various developers for creating infrastructure within the project area.

The first tranche of $245 million is expected to reach the government by the first quarter of 2017. The second tranche is expected to be approved by ADB in 2018. ADB also has an option to increase the loan.

“We realise $500 million is not enough to improve urban development, transport, power and other infrastructure. We will continue to support the government if there is good absorption capacity,” added Sharma.

The Andhra Pradesh government will also be giving $215 million for VCIC.

Recently, a number of states had complained of delays by the Centre in releasing ADB funds after these are disbursed by the multilateral body. The Mamata Banerjee-led West Bengal government, for example, was up in arms about a critical ADB loan which had not reached it 11 months after the expected date.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

6.1. India's microfinance industry clocked 60% growth in fiscal 2016: Report

Livemint | Sep. 15, 2016

New Delhi: After years of subdued growth, the Indian microfinance (MFI) industry expanded more than 60% to Rs.54,329 crore in 2015-16 compared to the previous year, according to a report prepared by Sa-Dhan, the self regulatory organisation of MFIs.

The MFI client base expanded by 2.8 million in the year, taking the total number of clients to 39.9 million, said the report. This growth was despite the fact that Bandhan, which was the largest MFI, moved out of the space to become a full fledged bank.

The top 10 MFIs classified as non-banking financial companies (NBFCs) accounted for about 80% of the total gross loan value, the report said. They include Janalakshmi Financial Services Ltd, Ujjivan Financial Services Ltd and SKS Microfinance Ltd.

“Attaining over 28 lakh clients is no mean feat. This goes on to show that the microfinance industry, having reached its inflection point, is growing steadfastly,” P. Sathish, executive director of Sa-Dhan, said.

The MFI sector experienced a crisis after Andhra Pradesh, the biggest market for small loans made to the unbanked poor and self-employed, in 2010 clamped down on micro lenders.

The state government tightened regulations governing MFIs after reports surfaced that coercive loan recovery practices by the lenders had driven some overextended borrowers to commit suicide. That led to a shrinking of the asset base of the microfinance industry and a surge in bad loans.

Of the total client base of 39.9 million, the southern region alone contributed to 39% of the total client base. Kerala and Karnataka now have the maximum number of MFI branches. The growth in this sector is also due to Reserve Bank of India allowing many NBFC-MFIs to act as banking correspondents (BCS) connecting commercial banks with customers in small towns and rural areas.

“The MFIs are finding the BC model rather attractive on the credit side,” Sathish added.

The report also claims that 94% of the total loans taken from MFIs are for income generating activities, dominated by agriculture and animal husbandry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

6.2. Missing stock is harming our food security

Livemint | 17 Oct. 2016

Spoilage and pilferage are not something the country can afford given its low ranking in the hunger index

The Reserve Bank of India (RBI) recently approved a proposal to restructure around Rs30,000 crore of food credit given to Punjab state agencies, allowing for the conversion of cash credit into a 20-year loan at a lower interest rate. The central bank also sanctioned a cash credit limit of Rs26,000 crore for this year’s procurement by state agencies.

The fact that food security of the entire country is dependent on Punjab’s agricultural performance may have prompted the RBI to adopt this liberal stance. But it raises a crucial question—will window-dressing cash credit of missing stock set a bad precedent for other agrarian states that are heading towards a similar predicament? In the case of food credit, the procedure involves lending to the corporation, procurement of grains, storage in state godowns and monitoring of stocks by the state government. The cash credit given to procure grains should thus meet the amount of hypothecated stocks. When this does not happen, there is a clear case of discrepancy or missing stocks.

During April this year, missing stock worth around Rs20,000 crore was discovered in Punjab’s food purchases, following which the RBI instructed the affected banks to make provisions for the potential losses. The instruction was despite the general rule that all state government borrowings are treated as sovereign debt— that is, the debt should be paid automatically when the Central government releases food subsidy.

A 2014 investigation by the Comptroller and Auditor General uncovered the magnitude of the scam in Punjab. Of 3,319 trucks hired for paddy transport by the Food Corporation of India and four of Punjab’s nodal agencies, 3,232 were non-existent and 15 were vehicles other than trucks. The report goes on to show that Rs843 crore of losses was incurred due to the inefficiency of the Punjab State Warehousing Corporation because of delayed availing of loan from the National Bank for Agriculture and Rural Development, delayed handing over of godowns to the FCI, non-adoption of FCI’s storage and preservation norms, inadequate control over milling activities and failure to recover transportation charges.

The issue is not restricted to the state of Punjab. The situation prevails across the country and requires redressal at a fundamental level—better supply management. This is as essential for controlling inflation as it is for food security.

Although India’s productivity is not optimal, over the years the country has achieved enough, even surplus, production levels. The problem, therefore, lies in preserving this output for future use. According to the Food and Agriculture Organization, around 40% of the food produced in India is wasted and this includes vegetables, fruits, meat, milk, cereals and pulses. Wastage from the public distribution system, which is meant for ensuring food security in the country, makes up almost half of the total. Considering that India ranked a lowly 97th of 118 nations in the recently released Global Hunger Index, spoilage and pilferage are not things the country can afford.

The unified National Agriculture Market launched this year will go a long way towards settling transaction costs and information asymmetry problems by integrating the market and facilitating price discovery. But warehousing and storage problems will need to be addressed separately.

The concept of a Negotiable Warehouse Receipts system, as proposed by the Shanta Kumar Committee for restructuring FCI, is one way to break the monopoly of state agencies and incentivize farmers. It allows farmers to deposit their produce in registered warehouses for an advance and sell it later when market prices are high. According to the 70th round of National Sample Survey Office data, currently only 13.5% and 16.2% of the paddy and wheat farmers, respectively have sold their produce to procurement agencies.

Strict adherence to quality standards and norms should be made mandatory for the registered warehouses, private or otherwise. A combination of private and public agencies is essential to handle the vast and diverse agricultural output in the country.

Meanwhile, the FCI, which has been failing repeatedly in its initial objectives, should be streamlined and allowed to focus on states’ surplus produce meant for distribution in other states. Most of the produce meant for a state’s own consumption should be left to the state agencies.

Provisions must also be made to liquidate stocks as and when they exceed buffer stocks to minimize wastage. Efforts should be made to revamp the food processing sector in India to reduce the perishability of food items. The setting up of mega food parks and cold storage chains as part of the Make In India project, and 100% foreign direct investment through the Foreign Investment Promotion Board (FIPB) route in the marketing of food produced and manufactured in India is welcome in this context.

A robust food-supply chain, which can make value additions through better storage, distribution and processing, will ensure that the agricultural sector remains competitive, transparent and profitable. This may perhaps also change banks’ negative perceptions of the sector.

In what other ways can the problem of missing stock be addressed? Tell us at views@livemint.com

7.1. A quiet revolution in farm mechanization

Livemint | Sayantan Bera, 16 Sep. 2016

Bhopal/New Delhi: The frown on the face of Shakti Singh Tomar belies his recent successes. A 44-year- old farmer from Vidisha in Madhya Pradesh, Tomar proudly says he purchased a Mahindra Scorpio SUV in 2014 by paying Rs.8.1 lakh in cash. “Unlike others, I do not have a loan to repay and purchased two hectares of land recently,” he said.

A large farmer once at the mercy of the vagaries of nature and vulnerable to lower crop prices, Tomar now earns at least Rs6 lakh a year by renting out farm machinery. “The centre that I am running has been a blessing,” he added.

Tomar is not an isolated success story. He is among 1,205 farmers spread across Madhya Pradesh who are running custom hiring centres (CHCs) which rent out machinery to small and marginal farmers and employ rural youth who manage these centres all day.

The cost? Rs25 lakh to set up one centre, which will get a Rs.10 lakh government subsidy. However, as Madhya Pradesh has showed, the social benefits of the scheme have far outweighed the costs.

Machinery available for hire has reduced manual labour and lowered the cost of cultivation, which has gone up due to a labour shortage. Farmers renting equipment have reported yields rising by around 20%.

Stories like that of Tomar also show the structural transformation under way in Indian agriculture: farmers harnessing the opportunities of the market economy, using new technology and becoming entrepreneurs. For instance, Tomar is planning a trip to Haryana to purchase a seed grading machine that costs more than Rs.6 lakh. With a group of farmers, he wants to start production of certified seeds that can be sold at a premium. Mechanization has become a necessity due to higher costs and paucity of farm labour, said Rajesh Rajora, principal secretary (agriculture) with the state government. “Every year, nearly 4.5 lakh farm hands move out of rural areas (in Madhya Pradesh) in search of skilled or unskilled work. As purchasing equipment is costly and unviable for small farmers, custom hiring is the way out,” he said.

Fragmented farm holdings mean individual ownership of machinery is unviable for small farmers. For instance, 85% of farm holdings in India belong to small and marginal farmers cultivating less than two hectares. A tractor needs at least 1,000 hours of operation every year to be economically viable, while two hectares means at most 100 hours. In states like Punjab—India’s most mechanized state with double the number of tractors it needs—individual ownership of machinery has not only led to higher cost of production and lower net income to farmers, but also rising debt among farm households.

"Every year, nearly 4.5 lakh farm hands move out of rural areas (in Madhya Pradesh) in search of skilled or unskilled work. As purchasing equipment is costly and unviable for small farmers, custom hiring is the way out"- Rajesh Rajora, principal secretary (agriculture), Madhya Pradesh government.

In comparison, Madhya Pradesh is promoting CHCs as a simple and transparent way of renting farm equipment. Rural youth under 40 years with an undergraduate degree can apply for a grant under the scheme. While agricultural graduates are preferred, final applicants are selected through a lottery. The subsidy is limited to 40% of the cost of a centre or Rs10 lakh. Applicants have to place a margin money of Rs5 lakh and the rest is financed by bank loans.

After the candidates are selected, they are sent for a week-long technical training that is a prerequisite to qualify for the bank loan. The applicant has to purchase a mandatory set of equipment required for farm activities from ploughing to harvesting. Each centre serves 200-300 farmers within a radius of less than 10km. In January 2015, 38-year-old Gyan Singh Parmar from Sehore district saw an advertisement in the newspaper inviting applications for setting up farm equipment renting centres. “I was lucky to be selected in the lottery and by September, the centre was fully functional,” he said.

The returns for Parmar are handsome. The thresher worked for nearly 500 hours harvesting the winter wheat crop in April at a rental of Rs700 per hour. In less than a year, Parmar earned over Rs3 lakh. He has employed two people at a salary of Rs5,000 per month, and is planning to buy a crop reaper cum binder which costs Rs.3.5 lakh.

“We approve applications in such a way that there is no more than one CHC in a village. This helps keep the model financially viable in the long run,” said Anil Porwal, an agriculture engineer who oversees the programme at the state level.

While 286 CHCs were set up in the first year of the scheme (2012-13), the number rose to 444 in 2014-15 and 475 in 2015-16. This year, the state has set a target of 612 centres.

Rural youth under 40 years with an undergraduate degree can apply for a grant under the scheme. While agricultural graduates are preferred, final applicants are selected through a lottery.

“The progress of CHC scheme in Madhya Pradesh is impressive,” said Ankur Seth, executive officer at the Confederation of Indian Industry’s agriculture division which carried out a multistate study commissioned by the National Bank for Agriculture and Rural Development, India’s apex rural development bank. Seth adds that different states have followed different models—while in Andhra Pradesh, CHCs are run by informal groups of farmers who find it difficult to access bank credit, in Punjab, CHCs are run by cooperative societies as an added service.

In comparison, the Madhya Pradesh model is designed to retain youth who are losing interest in farming by giving them an opportunity to run a business and also promote the centres as technology transfer units at the village level, Porwal said.

While Madhya Pradesh has performed exceptionally in the past few years and states like Tamil Nadu, Odisha and Uttar Pradesh are coming on board, some states like Gujarat, Bihar, Rajasthan and Haryana are not utilizing central funds for mechanization, said a senior official in the Union agriculture ministry who did not

want to be named.

The centre in 2016-17 allocated Rs160 crore to states under the Sub-Mission on Agricultural Mechanization, but the unspent balance was as high as Rs103 crore by the end of March this year, shows data from the agriculture ministry.

While Madhya Pradesh, Tamil Nadu, Odisha and Uttar Pradesh are coming on board, some states like Gujarat, Bihar, Rajasthan and Haryana are not utilizing central funds for mechanization.

In Madhya Pradesh, the scheme for promoting CHCs does not work in isolation. The state is also implementing a scheme called Yantradoot where 200 villages are adopted every year and farmers get to see first-hand how farm mechanization can boost productivity, save labour costs and even help fight climate

change.

For instance, 30km from the state capital of Bhopal, Acharpura village has 20 tractors but few improved implements to go with them. Until last year when the village was adopted under Yantradoot, farmers used single box seed drills (for planting crops like soya bean and pulses) where seeds and fertilizers are mixed together, resulting in a poor harvest.

The scheme brought in double box seed drills where seeds and fertilizers were applied separately, and many farmers benefitted from the reversible plough, which overturns soil from deep within.

Deep ploughing increased the fertility of the soil and also helped control weeds, said Kaluram Ahirwar, a farmer from the village, adding, “productivity of my wheat crop increased from 17 quintal per acre to 22 quintal per acre”.

Encouraged by the potential of the machines, 24-year-old Haridesh Maran, a commerce graduate from the village applied for a CHC, but did not make it in the lottery. Maran now wants to buy a combined harvester which costs over Rs20 lakh. Isn’t that a risky investment?

“If harvesters from Punjab can come this far and make money, why can’t I? In one season, a combined harvester can do a business of Rs.7 lakh and I can recoup the investment in three years,” he says with confidence.

In the neighbouring village of Ratata, Kalyan Singh shows how his soya bean and groundnut crops were not washed away despite heavy rains. Under Yantradoot, his land was sown with a raised bed cultivator that is attached to a tractor. The cultivator made 15-inch raised beds where seeds were sown, alternated with deep furrows which drain the excess water when it rains too much, and conserve soil moisture during dry spells

Good monsoon puts tractor sales on the road to recovery

In the rush to mechanize farm operations, the private sector too isn’t far behind. According to a report published in July by lobby group Ficci and the German Agribusiness Alliance, leading farm equipment manufacturers such as Mahindra and Mahindra, TAFE, Escorts and John Deere are trying out different models of custom hiring.

Noting that purchasing costly equipment like combined harvesters can be prohibitively expensive, even for large farmers, the report said that “custom hiring is the only practical way to introduce capital intensive, high quality mechanisation to the small farming structures prevalent of India”.

“Farmers who used the combined harvesters took 45 minutes to harvest, thresh and pack wheat in an acre, which otherwise takes a week and 15 labour days,” the report said, citing a 2013 field study from Madhya Pradesh.

7.2. Samsung expands service network to touch rural consumers

Economic Times | Oct. 14, 2016

New Delhi: Samsung India has expanded its service network across the country, reaching out to over 6,000 talukas across 29 states and seven union territories.

The service network expansion includes introducing 535 service vans equipped with engineers, key components, DG sets and key equipment for providing quick response and on-spot resolution, over 250 service points and over 250 resident engineers, Samsung said in a statement Thursday.

The Korean major plans to add more service vans, open new service centres, appoint brand engineers, India’s smartphone market leader and among the top consumer electronics players said.

“It is imperative for corporations to support this trend by establishing quality service network for addressing consumers’ needs regarding after-sales service of products in rural areas,” said

Rural Development Minister Narendra Singh Tomar at an event attended by Minister of State for tourism and culture Mahesh Sharma and HC Hong, president of Samsung Southwest Asi.

Samsung’s rural India pitch comes on the heels of its Note 7 debacle, where the company was forced to first recall and then kill its flagship smartphone following reports of the device overheating, catching fire and in some cases even exploding.

Samsung is struggling to blunt the fallout of its Note 7 troubles, even as it soaks an estimated $2.3 billion hit, in what is being labelled as the costliest product safety failures in tech history not to mention a huge blow to its reputation.

While the Note 7 was withdrawn before it was available in India, a slew of measures are expected to ramp up its image globally, including India.

The initiative to expand its service to rural India seems also aimed at expanding the domestic rural consumer base of Samsung in India by assuring premium after-sales service.

“With the new service initiative, our customers in rural India will enjoy the same level of speedy and high quality services as urban customers”, said Hong. “Our aim is to bridge the urban-rural service gap.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

8.1. What will the Marico of tomorrow look like?

Livemint | Sep. 19, 2016

Mumbai: Two years ago, Marico Ltd’s chairman Harsh Mariwala distanced himself from day-to-day operations of the packaged consumer goods maker he founded in 1990, leaving it in the hands of professional managers. Now 65, Mariwala can afford to take a break and focus on strategic investments. Marico is virtually on autopilot mode to becoming a Rs10,000 crore emerging markets multinational by 2020.

The maker of Parachute and Saffola oils ended fiscal year 2016 with a profit of Rs725 crore on revenue of Rs.6,132 crore. The company already has a presence in 25 countries in Africa and Asia, accounting for 22% of its overall revenue.

For future growth, Marico is counting on new launches within its core categories of hair oil and premium edible oils as well as beyond them on the larger platforms of nourishment and male styling in Asia and Africa.

The diversification will be guided by its traits of dominating in niche areas and remaining consistent. Among packaged consumer goods companies, Marico has delivered the most consistent organic growth of 17% in sales and 19% in earning per share in 2001-2015, according to a February report by analysts Rakshit Ranjan and Ritesh Vaidya of Ambit Capital Pvt. Ltd.

Marico’s diversification will be guided by its traits of dominating in niche areas and remaining consistent

“The company has built a really solid business over the years and now has solid brand platforms,” said Rama Bijapurkar, a management and market research consultant. “The question now is that the platform has a lot of spring and where will you spring and change your pace or growth trajectory.”

For Marico, not getting disrupted and reliance on innovations seem to be guiding its next leap. So while Mariwala says “we want to be market leaders in whatever we do”, and has identified opportunities to move from hair oil to pre- and post-hair washes, skincare and hair fall solutions, and male grooming, the company could also look at acquiring an online brand or even entering into so-called nutraceuticals (food with health benefits) as people get more health-conscious.

Disruption threats

“The broad spectrum of where we are is tailwind—people want to look good, stay young and be healthy,” explained Saugata Gupta, managing director and chief executive officer at Marico. The focus is now on hair nourishment, skin and healthy foods.

So for instance, Saffola now stands for much more than just a cooking oil, it is a tailwind category—wellness and its next big driver for growth is in-between meals, or healthy snacking.

"The company has built a really solid business over the years and now has solid brand platforms. The question now is that the platform has a lot of spring and where will you spring and change your pace or growth trajectory"- Rama Bijapurkar, management and market research consultant

The company has already gained a leadership position in the savory oats category, with Saffola Oats crossing the Rs100 crore mark in FY16. Likewise, in hair—there are solutions for damaged hair, hair fall and the entire continuum of nourishment—serums and hair oils.

“In today’s world you can get disrupted—so how do you innovate and not leave any gaps or segments,” said Gupta.

The reference is to firms like yoga guru Baba Ramdev’s Patanjali Ayurved Ltd, which has grown rapidly in a short span of time and taken on companies like Colgate-Palmolive India Ltd and Dabur India Ltd as it made inroads into the oral care segment and natural/Ayurveda segments, ending FY16 with revenue of Rs5,000 crore. Patanjali is also in the hair oil market, where Marico needs to protect its turf.

The Marico of today gets over a fifth of its revenue from international operations and employs people of nine nationalities, with 39% of its workforce being non-Indian. With its headquarters in the swanky new business district of Bandra Kurla Complex in Mumbai, Marico has come a long way from Masjid Bunder, the heart of Mumbai’s commodity market where Parachute and Saffola were born.

Its dependence on the two brands has fallen from 100% in 1990 to about 40-45% of its revenue now. In the next few years it will drop further to about 30% of its overall revenue, said Mariwala, who is keen on catching the shifts in changing consumer habits and also at the same time expanding Marico’s core franchise.

Marico’s dependence on Parachute and Saffola has fallen from 100% in 1990 to about 40-45% of its revenue now; in the next few years it will drop further to about 30% of its overall revenue, says founder chairman Harsh Mariwala.

Managing polarity

“In today’s uncertain world there is this concept of polarity—that is, you have to manage the short term with long term. Manage speed with excellence. Maintain the governance and still remain agile and entrepreneurial,” he said, and added: “That is a challenge. A lot of companies are struggling as they haven’t been able to manage the polarity.”

It wasn’t easy for Marico as well. The firm consolidated its position in India as the largest coconut hair oil brand following the acquisition of Nihar from India’s largest consumer goods company Hindustan Lever Ltd (now Hindustan Unilever Ltd) in 2006.

Marico’s international business was about 10% of its overall revenue in FY05 and by FY13 it went up to 22% largely through acquisitions (see Focus on organic growth).

In India, it entered the male grooming market and the personal care categories of serums and skin creams with the acquisition of the personal care brands of Paras Pharmaceuticals Ltd from British consumer goods firm Reckitt Benckiser Group Plc in 2012 and also its own launches like Parachute Advansed body lotion. Even as the acquisitions helped the company expand its revenue at a faster pace of 21% between FY05 and FY13, return on capital employed (ROCE) fell from about 50% in FY08 to 24% in FY13.

8.2. Indian dryfruit markets to double in 4 years

Business Standard | Oct. 17, 2016

Indian dryfruits market is likely to double in four years on rising demand of health conscious and nutritious food.

The Indian dryfruits market is currently pegged at Rs 15,000 crore with their volume estimated at approximately 450,000 tonnes. But, its size is estimated to reach Rs 30,000 crore by 2020 with over 1 million tonnes in volume term, said Mukesh Kumar Gupta, Chairman of Royal Dry Fruits Range, a city based dryfruits retailer, on the occasion of opening its second store at here on Friday.

The privately owned company is planning to open 50 stores under "Royal Dry Fruit Range" across India in three years. Currently "Royal Dry Fruit Range" has a presence in Jaipur, Ahmadabad, Surat, Goa and Mumbai through its complete range of dryfruits. Going forward, the company plans to expand its presence in

Rajasthan, Maharashtra, Gujarat and Goa.

The demand of dryfruits is rising because of a combination of factors such as increasing awareness of health needs, increasing disposable income levels, better availability, right packaging, consistent quality, adequate product communication (labeling), newer products such as hazelnuts, pecannuts, etc, are leading to a healthy growth of more than 10 per cent year on year for the nuts and dry fruits industry in volume terms. This is much ahead of the CAGR growth rate of 5.3 per cent for the dry fruit market and 6.5 per cent for the nuts market in the Asia-Pacific said Gupta.

"We take great pride in importing quality products from virtually every corner of the world. Our essence lies in providing quality products at reasonable prices. Our splendid mix of products from across the globe ensures that Indian market is spoilt for choice, by brands par excellence, both in quality and premiums," said Gupta. Indian dryfruits market is likely to double in four years on rising demand of health conscious and nutritious food.

Rajasthan, Maharashtra, Gujarat and Goa.

"We take great pride in importing quality products from virtually every corner of the world. Our essence lies in providing quality products at reasonable prices. Our splendid mix of products from across the globe ensures that Indian market is spoilt for choice, by brands par excellence, both in quality and premiums," said Gupta. Anshul Agarwal, Managing Director of the company said, "We track a wide range of critical food industry trends such as consumer behaviour, attributes and purchase motivators -ranging from specific requirements and unique dietary needs to emerging consumer trends and brands awareness."

Anshul Agarwal, Managing Director of the company said, "We track a wide range of critical food industry trends such as consumer behaviour, attributes and purchase motivators -ranging from specific requirements and unique dietary needs to emerging consumer trends and brands awareness."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

9.1. Minister of Railways launched and dedicated various services to the nation

Press Information Bureau | Sep. 30, 2016

New Delhi: Shri Suresh Prabhakar Prabhu, Minister of Railways during a function held at Rail Bhawan today i.e. 29.09.2016, as a part of fulfilment of Budget Announcements 2016-17, launched and dedicated following services to the nation : -

Liberalised station to station special freight rates policy
Policy providing sub quota of 33 % to women within reserved categories for the allotment in catering units.
Policy giving preference to local domicile holders for commercial licenses at stations.
New system of allocating vacant berths after final charting to wayside stations.
Launch of the new “Train at a Glance” and new Time Table effective from 1st October 2016.

Shri Rajen Gohain, Minister of State for Railways was especially present on the occasion. Chairman, Railway Board, Shri A.K. Mittal, Member Traffic Mohd. Jamshed and other Railways Board Members and dignitaries were also present on the occasion.

Speaking on the occasion, Minister of Railways Shri Suresh Prabhakar Prabhu said that the Indian Railways is striving hard to achieve full passengers’ satisfaction in all respects and today’s initiatives are part of our such endeavours. He said that the introduction of new policy providing sub-quota of 33% to women in catering units is a step towards women empowerment and their increased participation in Railways. He said that Railways will continue to introduce such new reformative steps.

Speaking on the occasion, Minister of State for Railways Shri Rajen Gohain said that Indian Railways being the biggest organization of the country has lots of complex projects to implement throughout the country. But overcoming the difficulties and complexities, Railways is implementing its budget announcements in a very promised manner which is a landmark in itself.

Salient Features of the initiatives :

POLICY PROVIDING SUB QUOTA OF 33 % TO WOMEN WITHIN RESERVED CATEGORIES FOR THE ALLOTMENT IN CATERING UNITS

In compliance of Budget Announcement 2016-17, a Sub Quota of 33% for women in allotment of each of the reserved catering units is being introduced on Indian Railways in order to extend economic empowerment for women.
Current Status of Reservation at Minor Catering Units (Stalls / Trolleys / Khomchas)

A1, A, B, and C Category stations – 25% of the Units are reserved for various categories like SC (6%), ST (4%), BPL (3%), OBC (3%), Minorities (3%), Freedom Fighters (4%) and Physically Challenged persons (2%).

D, E and F Category stations – 49.5% of the Units are reserved for various categories like SC (12%), ST (8%), OBC (20%) and Minorities (9.5%).

33% sub quota reservation for women shall ensure allotment of minimum 8% stalls to women at A1, A, B & C category station and minimum 17% at D, E and F category station.
There are approximately 8000 Minor Catering Units over Indian Railways.
Under this provision, Railways shall ensure that women participation does not fall below a specific level.

POLICY GIVING PREFERENCE TO LOCAL DOMICILE HOLDERS FOR COMMERCIAL LICENSES AT STATIONS

In compliance of Budget Announcement 2016-17, a process of giving weightage to district Domicile Holders for commercial licenses at stations is being proliferated at all stations over Indian Railways.

The proliferation would help to build local ownership and rural empowerment along with socio – economic development.
The weightage to district domicile holders is being proliferated for allotment of Catering Units at all categories of stations.
The proliferation of weightage to district Domicile Holders at all category of stations will ensure protection of livelihood of the small vendors.
The allotment of Minor Units over Indian Railways will ensure local ownership and will also promote regional / local cuisine, which is always a preferred choice.
The weightage parameter would range from 20% to the local District Domicile holders to 12% to the
State Domicile holders in techno-commercial scores.

TRANSFER OF VACANT BERTHS FOR OPTIMAL UTILISATION OF BERTHS

IR is introducing the facility of transfer of berths remaining vacant after second charting at the train originating station to the next and subsequent stations for clearing the waitlisted passengers at such stations.
The PRS system will automatically allot vacant berths available at the originating stations after preparation of second chart to the subsequent stations where waitlisted passengers are available. The passenger will get SMS on his registered mobile indicating the coach and berth number allotted. This will help passengers boarding at road side stations to get confirmed berths. Presently they get their berths confirmed only if confirmed berths from the pooled quota (PQ) allotted to the station are cancelled.
The TTEs will be able to allot vacant berths on board after departure of the train only upto the next station where quota is available for the train. In case no person boards the train at the next station he can further allot/extend the same to the next quota station.
At present about 3 lakh berths per year go unutilised while there may be demand at intermediate stations. This system will help in better utilization of available berths at the time of departure of trains from the originating station and also reduce the discretion available with TTEs in allotting the berths.

LIBERALISED STATION TO STATION SPECIAL FREIGHT RATES POLICY

Section 32 of the Railways Act, 1989 empowers railway administration to quote Station to Station Rate (STS) in respect of carriage of various commodities.
Railway Board used to issue guidelines to Zonal Railways for implementation of STS rates. Last guidelines on this subject were issued by Board in 2002, which were in operation till 2006. In November 2015, Zonal Railways were advised to exercise power vested with them to quote STS rates as per the Railways Act, 1989.
On request from Zonal Railways and to enable them to garner more traffic from road and other modes, broad guidelines are being issued to Zonal Railways for finalising STS rates.
Salient features of the proposed policy are as under:

Existing as well as new traffic shall be eligible.

Concession shall be granted up to a maximum of 30% on the incremental traffic over andabove the benchmark NTKM. Benchmark NTKM is defined as average NTKMs of correspondingperiods of previous 24 months.

Concession shall be in the form of percentage discount over the Normal Tariff Rate (NTR). Itshould be ensured that the concessional freight should not be less than the NTR of Class 100.

Concession shall be admissible to Block rake, two/multi point rake, Mini Rake etc.

Concession may be granted for retention of traffic also up to maximum of 15%. In case of container traffic, STS discount upto maximum of 15% shall be given to commodities charged at Container Class Rate (CCR).

STS scheme will be applicable for all terminals namely goods sheds, sidings, ports, CRTs, PFTOs etc.

To avail STS, Rail users shall be required to apply to the DRM with details, who shall forward the same for approval of GM through CCM, COM and FA&CAO. If Railway administration approves grant of concession under STS, an agreement shall be executed between Railway and customer.
The agreement shall be done for a maximum period of three years at a time and for not less than one year. Any change in freight rate (excluding imposition of any surcharge) shall not be applicable on the customer during the currency of the agreement or for one year, whichever is less.
Commodities excluded from STS are -

All commodities with classification below Class-100.

All commodities under Main Commodity Head “Coal & Coke”

Iron ore (all types)

Military traffic, POL and RMC

Targeted customer: Food grain, Cement, Clinker, Dolomite, Limestone, Steel companies, Flyash, etc.

Expected additional loading: 10 million tonne per annum.

LAUNCH OF NEW TAG

The launch of Trains at a Glance 2016- the new Time Table effective from the 1st October has also been launched.

A BRIEF OVERVIEW

With over 66 thousand kilometres of route ( 1/3 rd of which is electrified), more than 7000 stations, above 10,000 locomotives and more than 60 thousand coaches, Indian Railways runs above 13000 passenger carrying trains - to take about 23 million passengers to their destinations - everyday.

The journey in Passenger Operations in the last two years has been one of sustained efforts to provide additional capacities, improve the quality of travel experienceand to reach out to all types of passengers including those in far flung areas. As can be seen, funds to the tune of 8.56 Lakh crore are already tied up for these purposes for 2-15-19 and have started bringing results.

Additional services provided in last 2 years include 308 new trains, 99 extensions, 118 trains whose frequency was increased and permanent addition of 1610 additional coaches.

We have also met additional demand by running more than 70 thousand special trains including those to meet extra rush, election movements, military and para-military movements, and tourist trains. Besides, more than 2.5 lakh extra coach trips have also been provided - as per need.

We have been migrating to better coaches - with more comfort and speed. 38 trains have been provided the modern LHB coaches and 40 trains converted to the faster and superior MEMU coaches.

We have also added trains to new areas including Sri Mata VaishnodeviKatra, Arunachal Pradesh , Barak Valley and many more.

In the current Year, the efforts to improve service levels in passenger operations have gained further momentum. What has already been done in the current year includes premium trains like Mahamana and Gatimaan express,aneven more accelerated transition to superior coaches including the new DeenDayalu

coaches started from August, More Permanent augmentations, and further efforts to meet additional demands.

The current year has seen several large religious and other congregations of people which have been managed effectively, to the comfort of our passengers , with record running of special trains and extra coaches and effective overall bandobast,. This includes the SimhasthaMela in Ujjain, the krishnapushkaram on the Krishna Basin and so on. The arrangements for the ensuing Durga Puja rush are also completely in place.

The highlights of the improvements planned in the new Time table that will come into effect from the 1st October, 2016, include most importantly, the specifics of the 4 new brands of train products.

Further, in this timetable, we have also reduced the journey times in 350 existing trains, 75 of which have made it to the superfast category.

We have converted 240 operational halts into commercial stoppages and have for the first time, provided in the time table, train connectivities to the North Eastern states of Tripura, Manipur and Mizoram. Also incorporated in this Time Table - are 36 pairs of new services, some of which have been introduced in this financial year and some that will be coming soon- like the 10 pairs of Humsafar trains, 7 Antyodaya, 3 Tejas and 3 UDAY trains besides a number of other mail express trains, extensions, increase in frequency, diversions etc.

Infact, the 4 diversions mentioned at the end of the last slide shall become effective from the 1 st October. These will cater to a long pending demand of the people of Cuttack who will now get a direct connectivity instead of the detour these trains were earlier taking.

The contours of the new train products incorporated in the New Time Table are brought out here. The Humsafar as you are aware would be the fully AC service with optional catering,Antyodayathe long distance unreserved superfast train for common man, Tejas will have all modern on board features like entertainment , wifi and local cuisines, etc and UDAY will be an AC doublecker train on the busiest routes.

Coming to the specific routes and schedules of the new train products,

The 10 Humsafar Express trains will run between……

1. Sealdah- Jammu Tawi via Lucknow, Varanasi

2. Bhubaneshwar – rishnarajapuram via Vijaywada

3. Gorakhpur – Anandvihar via Lucknow

4. Howra – Yeshwantpur via vijaywada

5. Durg- Nizamuddin via Jhansi

6. Ahmedabad- Chennai via Pune

7. Tirupati- Jammutawi via Jhansi

8. Bandra- Patna via Jabalpur

9. Sriganganagar-Trichurapalli via Ahmedabad

10. Kamakhya-Bangalore via Cuttack

The 7 Antyodaya express trains will run between…

1. Darbhanga – Jallandhar via Gorakhpur

2. Tatanagar- LomanyaTilak Terminus via Bilaspur

3. Santragachi – Chennai via Vijaywada

4. Bilaspur – Ferozepur via Jhansi

5. Bandra – Gorakhpur via Vadodra

6. Howrah – Ernakulam via Vajaywada

7. Jaynagar _ Udhna via Patna

The 3 Tejas trains will run between….

1. New Delhi – Chandigarh

2. Lucknow – AnandVihar

3. Mumbai CST – Madgaon

And The three UDAY Trains will run between…..

1. Coimbatore – Bangaluru via Salem

2. Bandra – Jamnagar via Surat

3. Vishakhapatnam – Vijaywada

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

9.2. Germany to collaborate with India to improve rail connectivity of Indian ports : may also bring in technology for scrapping old vehicles

Press Information Bureau | Oct. 17, 2016

New Delhi: The Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari has said that India and Germany are all set to collaborate on projects for improving rail connectivity of Indian ports. He said the two countries will work together on projects worth Rs one lakh crore being implemented by the Indian Port Rail Corporation Ltd (IPRCL). The Minister held detailed discussions with his German counterpart and Infrastructure Minister Mr Alexander Dobrindt and his delegation in New Delhi today, regarding the modalities for such collaboration. Secretary Shipping Shri Rajive Kumar, Secretary Road Transport & Highways Shri Sanjay Mitra and other Senior Officers of the two Ministries were also present. Today’s meeting comes under the backdrop of an MoU signed between Indian Port Rail Corporation Ltd (IPRCL) and the German Railways Deutsche Bahn (DB) for cooperation on modernization of rail port connectivity and port rail facilities of Indian ports, during the Maritime India Summit earlier this year . For efficient evacuation of cargo from the Ports and to reduce logistics cost, last mile rail connectivity of Ports is extremely important. Indian port Rail Corporation Ltd. has been set up specifically to work in this area.

It was proposed in today’s meeting to form groups with representatives of IPRCL and DB to identify areas of cooperation and potential projects, as also to identify cost effective new rail technologies that can be

implemented. This would help bring in foreign investment and cost effective, environment friendly, innovative technology for the port rail connectivity projects.

Shri Gadkari further informed that Germany has also been invited to cooperate in the development of inland waterways, including manufacturing of barges.

In the transport sector, discussions were held on cooperation for developing vehicle scrapping capacity in India. India has invited Germany to share environment friendly technology for scrapping of old vehicles and

also for processing of the waste thus generated.

In what may be a major step towards reducing pollution, Shri Gadkari informed the German Minister that India has put in place all required regulations for the use of Flex-fuel like ethanol mixed with petrol. He said that German automobile manufacturers can be called upon to produce cars that can run on flex-fuel for India, like the ones being produced in Canada and USA.

Shri Gadkari has expressed confidence and hope that the cooperation between the two countries will grow even further in the times to come.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

10.1. Cargill looks to double business in India by 2020

Livemint | Oct. 04, 2016

New Delhi: Cargill India Pvt. Ltd that sells Leonardo, Sweekar and Gemini edible oils targets doubling its branded consumer business in India by 2020, chief operating officer (foods) Deoki Muchhal said.

Towards this, Cargill plans to double the retail reach from the current network of around 400,000 outlets, double market share of each of its brands sustaining profitability and look at extension of the existing key brands into new categories over the next five years. The local unit of US-based food company Cargill Inc. will also continue to look at possible acquisitions in areas such as edible oil, fat and staples.

India is the third country after Brazil and Venezuela where Cargill has built a branded consumer business through acquisitions. In India, it has bought five edible oil brands and built just one.

Each of Cargill’s acquisitions served a purpose—entry into new product segment or strong distribution and retail presence in a particular geography in the country. “Over a period, we realized that consumer stickiness and loyalty are key factors. Trust matters. Also, we needed the channel connect. We bought brands because of distribution connect and consumer loyalty, to build business,” said Muchhal.

Cargill’s aim is to focus on pockets of top towns through modern retail. It is investing more than Rs100 crore to strengthen supply chain and double retail footprint, chief marketing officer Neelima Burra said. “By 2020, we aim to be the national leader in the sunflower oil category with Gemini, Sweekar and NatureFresh brands. With Leonardo olive oil, we are the leaders in the premium olive category. With the relaunch of NatureFresh brand in flour and edible oil category, we will be among top three leading brands of the country,” Burra added. “All Cargill brands, except Leonardo, are mass market which is overcrowded with a lot of unknown and discounted players. Without scale and consolidation in edible oil space, the firm won’t benefit from these brands. Besides, Cargill’s retail presence in India is very limited which it needs to expand. Margin pressure and lack of scalability were among the reasons why Marico sold Sweekar,” said Abneesh Roy, analyst with Edelweiss Securities Ltd.

Over the next five years, Cargill will explore options beyond edible oil in India—through extensions of its key brands and through fresh acquisitions. It wants to build a portfolio that will have almost every product for the “centre of a consumer’s plate”, except rice, said Muchhal. “ For more acquisitions, it has to be really

something,” Muchhal said.

Roy of Edelweiss, however, said Cargill would benefit from Leonardo as it is positioned as a premium brand and is marketed as a healthy option. “But, olive oil is a very small segment. It will take time to shape up,” he

added.

India’s edible oil market is estimated to cross Rs2,080 billion by 2019 due to increase in number of brands and rising consumption of edible oil, according to a 22 May 2015 report by Ken Research, a consulting firm. The market has growing at a compounded annual rate of 13% between 2009 and 2014, it added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

10.2. Mondelez to invest Rs 100 crore ($15 M) to set up global research centre in Thane

Economic Times | Sep. 19, 2016

Mumbai: Mondelez International, the maker of Cadbury chocolates and Bournvita, will invest $15 million (about Rs 100 crore) to set up a global research, development and quality hub on the outskirts of Mumbai, according to a top executive of the company.

Rob Hargrove, executive vice-president for research, development & quality (RDQ) at Mondelez, said the proposed technical centre in Thane will focus on chocolates. It will be part of the American food giant's plan to invest $65 million to develop nine global RDQ locations over the next two years.

Mondelez plans to have an RDQ centre in China for biscuits and one in Singapore for gum and candy. We've a long, strong history in India and it's a priority market for us. We've had tremendous success in getting the 'best of global, best of local' formula right in India to accelerate our growth momentum in India and throughout Asia with continuous innovation," Hargrove said.

This is Mondelez International's second large investment in the country, the first being a $190 million (about Rs 1,270 crore) investment in a greenfield plant in Andhra Pradesh which began operations in April this year. "For the past two years, we've been transforming and redesigning our global RDQ organisation to better support our growth ambitions and create a competitive advantage," Hargrove said.

In a departure from the past, the India centre will also service global markets for the company. The centre will employ over 150 scientists, engineers and other specialists who will focus on developing technology platforms for chocolates and beverages, consumer science, packaging and cross-category productivity, the company said.

"These hubs will enable improved efficiency, effectiveness and accelerated project delivery," Hargrove said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

– INDUSTRY, MANUFACTURE

11.1. GreyOrange’s robots have taken over the shop floor

Livemint | 27 Sep. 2016

The five-year-old company commands a near monopoly 90% share of India’s warehouse automation market

If you bought products online in India, chances are that your order has been picked up and sorted by a robot

manufactured by GreyOrange.

Flipkart, Myntra, DTDC, GoJavas and Jabong are among the e-commerce and logistics firms that use these robots to automate distribution at their large warehouses across India. The start-up, which commands a near monopoly 90% market share of India’s warehouse automation market, is all of five years old.

In the complex world of e-commerce, these robots help companies and humans overcome operational challenges such as increasing costs, high order volumes, manpower issues, and short order-processing windows in addition to reducing errors.

GreyOrange, luckily, has been in the right place at the right time to take advantage of the e-commerce boom in India. Its offices across Mumbai, Bengaluru, Hyderabad and Chennai are testimony to its spectacular success in India.

Since being founded in 2011 by Samay Kohli and Akash Gupta, GreyOrange has grown to more than 550 employees today with over 33% of them working at its research and development (R&D) centre in Gurgaon.

The robotics company is also present in Singapore, Hong Kong, the United Arab Emirates, Germany and Japan.

GreyOrange designs, manufactures and deploys advanced robotics systems for automation at warehouses, distribution and fulfilment centres and has an installed sortation capacity of around 12 million packets a day.

The company is growing at about 300% year-on-year and while a major chunk of its revenue is still generated from India, GreyOrange aims to generate 70% of its sales from markets outside the country.

Both Kohli and Gupta are the quintessential boys next door, hailing from middle-class families. Gupta is from Kanpur having studied at Puranchandra Vidyaniketan while Kohli did his schooling at St Columba’s school in Delhi.

The two of them met as engineering students at BITS Pilani where a common love for robotics bound them.

As part of the humanoid programme at the Centre for Robotics and Intelligent Systems at BITS, they developed the AcYut in 2007, one of the first indigenously created humanoid robots in India. The duo also represented India in humanoid robotics competitions across 13 countries, winning the gold medal at the RoboGames (formerly ROBOlympics) in San Francisco in 2009.

While Gupta worked on several projects such as the design and implementation of an active underwater sonar stabilization system at the University of Louisiana to increase operating hours of the system under rough coastal weather conditions, Kohli was involved in organizing robotics workshops at more than 25 educational institutions globally—including Stanford University, Louisiana University, Massachusetts Institute of Technology and Indian Institutes of Technology. The duo also worked on a parallel project to create a technology-enabled haunted house, similar to a park in Disneyland that is completely automated, while they were doing their internship with C&C Technologies Inc. (now part of Oceaneering International Inc.) in the US. One thing led to another and from robotic competitions and workshops, the duo started doing product development for firms.

But it was only a chance meeting with German electronics engineer and entrepreneur Wolfgang Hoeltgen that the idea of GreyOrange took shape. Hoeltgen, 69, became the third co-founder of the company. The difference in both age and nationality is glaringly obvious but so far the trio has worked well. Hoeltgen had earlier worked at IBM Germany and the US in research, manufacturing, engineering and software development. In 1997, he started his own IT firm and conducted international projects in SAP consulting, guided mergers and acquisitions and founded the German-Indian Business Center at Hannover. Since the last four years, he has been involved with GreyOrange as co-founder, investor and mentor.

“As co-organizer of the world’s biggest science and technology show for young people I invited the AcYut team from BITS Pilani to Hannover to demonstrate their project in 2009. Somehow Akash and Samay selected me as their mentor that time and contacted me occasionally sharing their ideas,” says Hoeltgen. “I told them they would be wasting their talents, until they presented the idea of warehouse automation, which was exactly in-line with what I believed to be a perfect match of their capabilities and real worldwide demand. We met in India, put together a business plan, I liquidated my life insurance, one month later we rented office space, bought a CNC (computer numeric control) machine and hired the first engineers.”

And the rest as they say is history.

What began as a start-up with a team of seven on the ground floor of Kohli’s home, is now spread across 250,000 square feet of prime real estate in Gurgaon. Situated on National Highway 8, the Delhi-Gurgaon expressway, the GreyOrange office is in Orient Bestech Business Tower and occupies two-and-a-half floors. Not surprisingly, the office space is designed like a sprawling warehouse. It has long corridors with meeting rooms and open workspaces on either side where the team sits, brainstorms, crunches data and complex code. The culture is one of freedom, collaboration and openness. When the employees need a break, they have several options. They can either head to the cafeteria or the gym, play Xbox in the gaming arena, listen to some music in the music room, get pampered at the in-house beauty parlour or even take a nap in the sleeping room.

Says Naveen Boppana, lead engineer (mechanical): “GreyOrange’s culture is very different from the other companies I worked at in the past. I find that GreyOrange consciously maps your work against the impact that it creates. Therefore, there is always a high sense of accomplishment while working for GreyOrange. Needless to say, our cool new office is an added incentive to be a part of GreyOrange. Working in a vibrant and creative environment adds to your productivity. Facilities like a gym, cafeteria, gaming zone, etc. go a long way in establishing a work-life balance.”

GreyOrange employees are mostly engineers since robotics requires multidisciplinary skills such as electronics, electrical, mechanics, software, and firmware. It is, therefore, important that different engineering specializations coexist to create disruptive products and solutions.

Kohli adds: “We have often seen that many companies hire senior executives and leaders from the Silicon Valley and other global geographies for business roles. However, as GreyOrange is a hardcore hardware and R&D company, we focus on the experienced engineers out there. For example, we are getting on board a 62- year-old highly experienced Erlang expert, a global design senior expat from Hong Kong, and a mechanical design architect from Germany, which is the hub for world-class mechanical engineers.”

No wonder the company has acquired a cosmopolitan character that places a high emphasis on innovation and cutting-edge technology. “The fact that 33% of our workforce is dedicated to R&D is a testimony to our emphasis on innovation,” says Kohli. “We believe that it is very important to maintain a healthy workplace culture to ensure mutual learning and growth. Extensive training sessions help our employees to stay abreast with the latest skill requirements in the market and enhance their effectiveness.”

The company also gives employees the option to design and equip their workspace. A budget of Rs1 lakh is earmarked for this and employees can choose from a catalogue that includes chairs, workstations, upgraded laptops, high-capacity storage, laptop accessories, additional screens, even plants and decorative items for their workstations. It has been found that the engineers prefer latest desktops while the sales managers go for Macs. Another interesting activity the company does is what it calls the “GreyOrange Marathon”. Just like an athlete who runs 42km to complete the marathon, employees go through a period of 42 days where they take up targets/tasks that are above and beyond their core jobs.

“GreyOrange provides the opportunity to work with some of the smartest engineers. The focus is on solving the problems effectively and efficiently. Townhalls, biannual events like the GreyOrange Marathon, team activities, and excursions are the fun part of our culture. All this adds to the excitement of working at

GreyOrange,” adds Paul John, a technical architect.

Gupta and Kohli’s zeal, passion for technology and energy belie their age—while Gupta turns 27 in a couple of months, Kohli is 30. Beyond their passion for robotics, they spend time learning about technology disruptions across the world.

11.2. Next Orbit to invest US$ 100 million in Gujarat-based semiconductor project

Livemint | Nandita Mathur, Sep. 20, 2016

Mumbai/New Delhi: Growth-stage investor Next Orbit Ventures is investing $100 million in a semiconductor fabrication project based in Gujarat, a top executive said.

The investment is being made out of Next Orbit Ventures’s second fund, which is currently raising $750 million. The firm launched its second fund in November to invest mainly in firms that make semiconductor chips, and solar and LED components.

“We are coming as first investors into this fab project to back India’s growing electronics market, which will reach $400 billion by 2020 as per the government of India’s national policy of electronics 2012 estimates, and requires $100 billion of investment for achieving ‘zero import’ target,” said Ajay Jalan, founder and managing partner at Next Orbit Ventures.

Next Orbit’s investment portfolio includes firms such as Web Element, Cityon Systems Inc., Pranav Sports Academy Ltd, Richway International Trade Ltd, Primark and Sanasa Tech. In April this year, it also invested Rs 115 million in e-commerce firm Infibeam.

Jalan did not identify the project in which Next Orbit is making the investment. The announcement will be made by the government in the next few weeks, he said.

“We are seeing interest from long-term institutional and strategic investors from across the globe,” Jalan said. According to Jalan, there is vast untapped potential in the electronic system design and manufacturing (ESDM) sector, given initiatives such as Digital India and Make in India.

India, at present, imports more than $90 billion worth of electronic products and components. The rupee has depreciated from around Rs44 per dollar in 2007 to about Rs67 now. Nurturing the electronics sector will save foreign exchange for India and create employment opportunities.

The government will also offer economic and tax incentives to semiconductor fabrication units from the MSIPS (Modified Special Incentive Package Scheme) on the lines of more than $161 billion currently committed by Chinese government for developing its semiconductor industry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

12.1. India at the core of Schneider’s global manufacturing plans

Livemint | Amrit Raj, 13 Oct. 2016

Jean-Pascal Tricoire, chief executive of Schneider Electric. Photo: Ramesh Pathania/Mint

New Delhi: France’s Schneider Electric SE said Wednesday that India will be at the core of its next-generation solar inverter plans, and manufacture for the global market.

“What we do in this field is led for the world from India. So, there are inverters for the home, inverters for the micro-grid, inverters for solar. We are launching our next-generation solar inverters on a very large scale. That will be manufactured in Bengaluru and exported all over the world. It has the best technology that is proposed today in the world,” Jean-Pascal Tricoire, Schneider’s global chairman and chief executive officer, said in an interview.

Tricoire added that the solar inverters boast of a technology that can take the energy produced from silicon in the panel that is currently not usable and convert it to energy that is usable and put it on the grid or micro-grid. “Some of the programmes are completely developed here. All the programmes for inverters that we do for homes are completely done here. Some others are done in collaboration with 45 other centres in the world. India is at number 3 in Schneider, in terms of the number of people in R&D,” Tricoire said.

Schneider specializes in energy management and automation solutions, spanning hardware, software and services, and its India unit already exports 50% of its produce every year.

Tricoire did not share financial numbers of the India operations but said the company plans to invest €100 million (about Rs750 crore) in the next five years in areas such as renewable energy and smart buildings. So far, it has invested €800 million in India.

Tricoire said the firm has 1,500 engineers at its R&D centre in Bengaluru.

Schneider spends close to 5% of its annual revenue on R&D globally.

The proliferating telecom towers in villages and small enterprises and households switching to solar lighting from kerosene lanterns are creating a robust rural market for energy services companies and the equipment makers in India. Many businesses are testing the viability of energy supply from solar-powered mini grids for villages and small enterprises as the unmet demand for power in rural areas is proving to be a growth opportunity.

According to International Energy Agency’s (IEA) World Energy Outlook 2015, India has 237 million people with no access to electricity. In many villages, power supply is intermittent. Industry executives said that 70% of those without access to electricity or with only intermittent power supply are in Uttar Pradesh, Bihar and Jharkhand.

According to Anil Chaudhry, country president and managing director, Schneider Electric India Pvt. Ltd, the

Bengaluru R&D centre is also developing safety technology for grids.

“That will be used all across the world,” Chaudhry said.

Some of the opportunities Schneider Electric will pursue in India are lighting requirements of the planned smart cities as well as of large emerging industries such as defence equipment production.

“We are (also) taking on a lot of oil and gas projects,” he added.

Gireesh Chandra Prasad contributed to the story

12.2. Government aims to make automobiles manufacturing the main driver of 'Make in India' initiative

Press Information Bureau | Sep. 19, 2016

New Delhi: Mr. Girish Shankar, Secretary, Ministry of Heavy Industries and Public Enterprises, Government of India has said that Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to reach 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26. Addressing a CII International Automotive Design Conclave 2016 here in New Delhi today Shri Girish Shankar said that Government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020 to encourage the progressive induction of reliable, affordable and efficient electric and hybrid vehicles in the country. He also mentioned that both the industries and industrial organizations have to explore the development of funding strategies / models / mechanisms for design and development and how the outcome of these strategizes can be monetized.

Mr Amitabh Kant, Chief Executive Officer, NITI Aayog said that India should become the society of Design and innovation to attain and sustain 9-10 % growth rate while addressing a . Private Sector has a critical role in developing the growth potential of the design industry. Government of India will very soon open 4-5 more

design institutes. He further said that Indian private sector should also open design institutes for nurturing talent and innovating minds. Indian companies need to think large to penetrate global markets by focussing on exports and becoming an integral part of the Global Supply Chain. Make in India is also about Intellectual Property Rights, Innovation and continuous improvement. Digital / IT companies and manufacturing companies need to work together to create a disruptive culture for creating globally competitive designs. He also said that design is all about simplicity.

Mr Arvind Kapur, Chairman, Special Taskforce on Manufacturing & Make in India, CII (Northern Region) & Chairman & Managing Director, RICO Auto Industries Ltd said that while India has demonstrated growing capabilities in Auto manufacturing and have successfully designed and built new vehicles, we need to

increasingly focus on auto design aspects.

Mr C V Raman, Chairman, International Automotive Design Conclave 2016 & Executive Director (Engineering), Maruti Suzuki India Ltd that Indian Auto Industry needs to be original but in sync with global trends. Ola & Uber are changing the market trends. Indian Customer expectations are changing. Besides functional needs, there is a demand for Emotional Quotient as well, thus enhancing the role of design.

Mr Pratap Bose, Head of Design, Tata Motors, United Kingdom mentioned that products are shaped by society, culture, technology, marketing, cost, utility, legislation and environment. We hope automotive design will be integrated in Smart City Planning especially for smart mobility at the conception stage. He also

mentioned that India should focus on disruptive technologies and leverage its strength in IT and manufacturing. Mr S Sandilya, Chairman, Eicher Group said that to compete with the global counterparts, the Indian companies need to focus on the customer needs. The companies need to build capability for continuous improvement to gain the competitive edge. Mr Ramesh C Jain, Co- Chairman, IADC 2016 & Director, HI Tech Group, said that essence of design lies in the process of discovering a problem shared by many people and trying to solve it. Application of creativity in the process of innovation is Design.

The conclave was well attended by over 400 industry participants from within India as well as abroad.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

13.1. Amazon India launches fashion private label

Livemint | Anirban Sen & Mihir Dalal, 20 Sep. 2016

Bengaluru: Amazon India has launched the first of at least six fashion private labels it proposes to introduce

this year, as it looks to boost sales and margins in the second largest product category in e-commerce.

The first brand, Symbol, was launched by Cloudtail India Pvt. Ltd, Amazon’s largest seller, earlier this month. Amazon (Amazon Seller Services Pvt. Ltd) wanted to start selling Symbol ahead of the upcoming festive season sales to attract shoppers in the initial months of the launch, according to two people aware of the company’s plans.

Cloudtail is a joint venture between Amazon Asia and Infosys Ltd founder N.R. Narayana Murthy’s Catamaran Ventures. Cloudtail will launch other fashion brands by the end of the year, the people cited above said on condition of anonymity. Amazon currently also offers headphones, charging cables, bags and a few other accessories under the AmazonBasics brand through Cloudtail.

On 25 August, Mint reported Amazon’s plans to create its own private brands in fashion. The company has hired former Myntra executive Gautam Kotamraju to spearhead its push into private fashion labels. Under Kotamraju, Myntra enjoyed unprecedented success with private labels such as Roadster and Mast & Harbour, which now account for 25% of its overall sales.

Amazon India head Amit Agarwal said in an interview last week that the company would launch private brands to fill gaps in its product portfolio. “If there are selection gaps on your platform, then there are spaces that absolutely need to be filled. But you want to do it in an area where there clearly is need and customers would shop for that,” Agarwal said.

Expanding its fashion business is important for Amazon in its e-commerce battle with Flipkart, which owns Myntra and Jabong, two of the largest specialty online fashion retailers in India.

Fashion is expected to be the single largest product category in online retail by 2020 and also offers much higher margins than books and electronics, according to a May report by Google Inc. and A.T. Kearney. Amazon launched fashion in a full-fledged way only towards the end of 2014 but it has quickly caught up with Flipkart by spending hundreds of crore on marketing, forging alliances with fashion labels, offering deep discounts through the year and delivering products fast.

In fashion, private brands offer fatter margins to marketplaces compared with third-party brands and enable them to lock in customers.

In May, Flipkart chief executive Binny Bansal proposed building a large private-label business by September, and put Mausam Bhatt, a product and marketing expert, in charge of this push. It has delayed its plan by a few months but it still wants to launch private-label products before the end of the year.

“India is a very different e-commerce market compared with the US—in the US, e-commerce players often get an edge over competition by launching exclusive products with exclusive brands. In the Indian market, even if you do end up coming up with a unique product, the market is not as homogenized as the US. While launching private labels will help companies, these labels are still competing with the major brands,” said Harminder Sahni, managing director at consulting firm Wazir Advisors.

13.2. Amazon.in launches two new fulfilment centres in Tamil Nadu

Livemint | Sep. 29, 2016

Chennai: Amazon.in on Wednesday said that the company has launched two warehouses at Chennai and Coimbatore in Tamil Nadu, to empower thousands of small and medium businesses, to leverage the growth of digital economy and reach a wide customer base.

With this launch, Amazon.in has 27 operational fulfilment centres (FCs) in 10 states across the country with a combined storage space of close to 7.5 million cubic feet.

Spread over nearly 200,000 square feet with over 900,000 cubic feet of storage space, the two FCs will enable the e-commerce company for faster delivery during the upcoming festive season.

The company has also announced festive sale from 1-5 October.

“For our customers, these FCs bring us closer to them in the region and will not only support our Prime promise of one-day & two-day delivery but will also allow us to efficiently serve them this festive season. For our sellers, these FCs will enable thousands of small & medium businesses to save money by replacing their upfront capital expense with low variable cost and pay only for the storage space they use and the orders that we fulfil,” said Akhil Saxena, vice-president customer fulfilment, Amazon India.

Unlike traditional warehouses, FCs are equipped with highly automated pick, pack and shipping processes to facilitate safe and timely processing of orders. With an already existing urban FC in Chennai, Amazon.in now has three FCs in Tamil Nadu offering over one million cubic feet of storage space.

Saxena added, “Our fulfilment centre will provide local SMEs with a platform to sell their products such as handicrafts, apparel, home decor, jewelry, etc. to millions of customers and scale their business to greater heights. They will also create numerous employment opportunities for the youth in the space of ancillary businesses such as packaging, transportation, logistics, and hospitality across the state.”

The American e-commerce giant launched a new warehouse in Delhi-NCR on Monday, its seventh such facility in the region.

Previously, Amazon chief executive officer Jeff Bezos had said the company will invest $3 billion in India. The company has about one lakh sellers on board in India and has witnessed a 250% year-on-year growth in the number of merchants, growing from about 100 sellers in June 2013, when it had commenced operations in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

14.1. Telecom equipment demand to exceed US$ 30 bn by 2020: Sinha

Business Standard | Oct. 04, 2016

New Delhi: The demand for telecom equipment, including mobile phones, would exceed $30 billion in India by 2020 from $20 billion in 2015-16, Telecom Minister Manoj Sinha said on Monday.

The country is the fastest growing telecom market in the world and has the second largest subscriber base, Sinha said while inaugurating the 8th Telecom Export Promotion Council's Buyer-Seller meet here.

The minister said the government would do everything to ensure that Indian telecom products and services become the first choice for everybody's telecom needs.

He said if anybody was looking for secure information, communication, technology (ICT) products, they should rely on Indian products and the industry was eager to share the "know-how" and the "know why". "Indian manufacturers have already made significant strides in exports of IT and telecom products to several countries and established that Indian IT and telecom products are of world-class quality and globally competitive on technology and price," Sinha said.

India has all the ingredients of a globally competitive telecom industry such as large domestic market, worldclass talent, focus on research and development and intellectual property rights creation, beside a robust framework for electronic manufacturing.

Sinha, who was addressing representatives from 28 participating countries from South Asia, South-East Asia, Caribbean, Latin America and Africa, said India has the distinction of being the fastest growing telecom

network, especially with the advent of increased broadband penetration. "This large telecom network requires equipment and technology that is second to none in the world, yet India offers the lowest telephony tariffs in the world," he said. The minister said with this background, the foreign delegates can be assured that when they buy telecom products and services from India, they would be buying the best technology at competitive costs.

Speaking during the occasion, Telecom Secretary J S Deepak said Indian companies have exported more than $110 billion of ICT products mostly to advanced countries, which is likely to witness a big spurt in the near future.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

14.2. Rs 123,000 crore ($18,36 bn) FDI in electronic manufacturing

Business Standard | Sep. 22, 2016

New Delhi: Electronics and IT Minister Ravi Shankar Prasad today said foreign direct investment (FDI) in electronic manufacturing has touched an all-time high of Rs 1.23 lakh crore in 2016 on the back of enabling policies of the government and its Make in India initiative.

The FDI stood at Rs 11,000 crore in 2014, the Minister added.

Speaking during an event here, Prasad said it was important to develop electronics manufacturing in India as a study had predicted that by 2020, the country's import bill of electronics items would surpass the fuel import bills.

The Minister said the government had set up electronics manufacturing clusters in different parts of the country for enhancing manufacturing and when it comes to mobile manufacturing, the volume has reached 11 crore units in 2015-16.

In value terms, mobile phones worth Rs 54,000 crore were made in India and this is likely to touch Rs 94,000 crore in 2016-17.

Apart from electronic manufacturing clusters, the government is offering better tax regime and incentives of MSIPS for electronic manufacturing. The government had removed basic customs duty (10 per cent) and special additional duty (four per cent) proposed on charger, adaptor, batteries and wired headsets.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

15.1. Apollo Tyres’s Neeraj Kanwar eyes US market again, 3 years after Cooper fiasco

Livemint | Amrit Raj, 21 Sep. 2016

New Delhi: Neeraj Kanwar has put together a small research and development (R&D) team focused on the US and hired a business head for North America in his second attempt in three years to enter the world’s biggest tyre market.

The vice-chairman and managing director of Apollo Tyres Ltd has hired Steven Smidlein from Goodyear Tire and Rubber Co. as senior vice-president for north America. Smidlein will be responsible for building the brand and sales in north America for both Apollo and Vredestein, the Dutch tyre-maker Apollo acquired in 2009. Apollo Tyres is also in the process of hiring two executives in R&D who will work in tandem with the firm’s R&D hub in Frankfurt to develop products for the US market, Kanwar said in an interview.

“A lot of emphasis is on building products. American vehicles are different from (those in) Europe. Our coverage of product mix is only 10% of the American car market. First challenge is to take it to 70%. That will only be done through R&D,” Kanwar said.

Apollo knows how to win in price-sensitive markets, explained Abdul Majeed, partner and auto practice leader, PricewaterhouseCoopers (PwC). Now, it will have to build products for customers who are quite willing to pay (for good products), he added.

Apollo does export to the US—roughly 150,000 units per year, just a fraction of the $47 billion market in which 300 million tyres are sold each year.

This is Kanwar’s second stab at entering the US after being thwarted the first time. Apollo announced a deal to buy Cooper Tire & Rubber Co. for $2.5 billion (around Rs14,575 crore then) on 12 June 2013, but the

acquisition fell through because of obstacles created by Cooper’s Chinese joint venture partner.

Had the deal gone through, it would have been the largest in India’s automotive industry, ahead of Tata Motors Ltd’s $2.3 billion purchase of Jaguar Land Rover in 2008. It would have made Apollo the seventh largest tyre maker in the world with control over Cooper’s 14 manufacturing plants around the world and a combined annual revenue of $6.5 billion.

Today, Apollo ranks 16th by revenue, according to Tyrepress, a trade journal. It has set itself a target of becoming a $6 billion company globally by 2020 from around $1.8 billion. The fillip from the US market will only come in the next decade, said Kanwar.

“In our tyre business, once you sustain $100 million per annum turnover in the US then you look at sourcing and manufacturing facilities as freight is very expensive,” he said. “We have just put the seeds in marketing and distribution. About 4-5 years from now, we will look at opportunities for setting up a factory and local sourcing.”

Without succeeding in the US, it will be difficult for Apollo Tyres to make a mark globally, said Majeed of PwC. The US market will keep adding 16-17 million vehicles every year, according to him. Besides, with a vehicle population of 200 million, the US is a huge replacement market.

Had Kanwar succeeded in buying Cooper, it would have given him an easy entry into China—the world’s largest tyre market. But, for now, China seems to be off the radar of Apollo Tyres. “I like Chinese food. But I don’t like the Chinese (market),” Kanwar.

15.2. Electric two-wheeler market picks up speed

Times of India | Sep. 30, 2016

Chennai: With 22,000 units sold last year and a near-40% growth trot, the electric two-wheeler market is beginning to pick up speed. A clutch of start-ups like Coimbatore-based Ampere or Bengaluru-based Ather Energy or IIT-Kharagpur-incubated Auro Robotics are looking at various aspects of electric mobility with Ampere focusing on affordable electric two-wheelers. Now, Tork Motors has come up with a product that matches petrol motorcycles for power and torque.

Tork Motorcycles is all set to unveil India's first electric motorcycle — in a market saturated with scooters or mopeds — at TechSparks 2016 in Bengaluru on September 30. Positioned as a long-range performance bike, the product — christened T6X — offers 100km/hr top speed and can run 100km on a single charge.

With government efforts like FAME (faster adoption and manufacturing of hybrid and electric vehicles in India) and NEMMP (national electric mobility mission plan), the electric vehicle market, including two wheelers, has been growing. According to industry sources, there were 47,000 electric two-wheelers sold in India in FY 2013-14 which dropped to 16,000 in FY 2014-15 but jumped to 22,000 in FY 2015-16.

Although they are cheaper to run in the long-run, e-scooters are 1.5 times more expensive than petrol ones. However, according to an ADB report, 14%-23% of the two-wheeler market might move to electric beyond-2020. The e-scooters, however, do not match their petrol counterparts in terms of top speed. Currently, thereare no electric motorcycles available in the market.

That's where T6X will be different, said Kapil Shelke, founder and director of Pune-based start-up Tork Motorcycles. T6X is expected to hit the commercial market next year and the first batch of 500 pilot bikes will be produced in the company's R&D facility near Chakan. The company also has plans to build a plant in Chakan.

"T6X is our first commercial work. We will take a call on the factory by November-December. For distribution, we will set up one or two Tork Experience Zones per city in Pune, Bengaluru and Delhi. We want people to come and ride the bike and experience its racing genes. We will be entering other major cities in phases. Mumbai, Chennai and Hyderabad will be on priority. These experience zones will double up as our distribution and service network," said Shelke.

Tork has received first round of angel funding from a host of marquee investors including Ola founders Bhavish Agarwal, Ankit Bhati and a group of angels led by Harpreet Grover, CoCubes co-Founder & CEO.

The company is sufficiently funded to finish R&D and start production, said Shelke said he aims at selling 5,000-10,000 bikes each year for the first three years. Before the T6X, Tork has been making prototypes for the racing circuit. "We started as a college dream to build India's fastest electric motorcycle," said Shelke. "By 2009 we had one prototype that hit 156 km/hour. We have been testing prototypes at international races from 2009-2012 and we finished third at The Isle of Man TT, and also won the world's premier electric motorsport race series, TTXGP," he added.

The company went on to develop two non-racing commuter prototypes thereafter and then started work on India's first electric motorcycle in 2015. "T6X is a long-range powerful motorcycle," said Shelke.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

– SERVICES (IT, R&D, Tourism, Healthcare, etc.)

16. Marriott, Starwood combined entity to open 80 hotels in India in 3 years

Livemint | Sep. 26, 2016

Mumbai: Marriott International Inc, which on Friday completed acquisition of Starwood Hotels and Resorts, said the combined entity in India would open around 80 hotels in the next three years, taking the total number of hotels it operates to around 160 in the country.

Both the hotel chains currently operate seven brands each with a total of around 79 hotels with around 18,000 rooms in India. The combined entity would now be called Marriott Hotels India Pvt Ltd, while Starwood would cease to exist from here on, said Rajeev Menon, chief operations officer, Asia-Pacific ( excluding Greater China) told reporters here at a press meet.

“ As a company we have been bullish on the Indian market. Both companies combined have a strong pipeline for the next three years. This would further push our growth story in the country,” Menon said.

At present, both the companies operate in 19 cities. It is expected to go to up to 33 cities in the next three years. While Marriott operates brands like Ritz Carlton, JW Marriott and Courtyard by Mariott among others, Starwood Hotels owns brands such as Le Meridien, St Regis and Westin.

Menon said all the brands would continue to exist in India and the company does not plan to rationalise any of them. He said there would be structural changes within the organization and the company plans to complete the process by end of October this year.

In November 2015, Marriot and Starwood announced their plans to merge the two companies. However, earlier this year, China’s Anbang Insurance Group Co. made a counter offer to buy out Starwoods. Later, Anbang withdrew its bid.

Post the $13 billion merger, the combined entity now owns around 5,700 hotels with more than 1.1 million rooms s across 110 countries, creating the world’s largest hotel company globally.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

17.1. Oracle likely to set up data centre in India: CEO Mark Hurd

Economic Times | Sep. 22, 2016

New Delhi: Mark Hurd jointly runs $37-billion Oracle Corporation as a CEO along with Safra Catz. The company has had a presence in India for last 25 years and today has about 40,000 employees based in India alone. Hurd joined Oracle five years ago and was made CEO in 2014. Here he talks about the company's India strategy, its acquisition model as well as challenges of running a technology company.

Edited excerpts:

Where does India lie on the map of global expansion for Oracle?

The growth rate in India is impressive. We have witnessed increasing success there and thus done many things to invest. There is a conglomeration of economies in that part of the world, bundled together to be called APAC, Asia Pacific Region. But the reality is there really is no APAC, they are a bunch of different economies that all have unique things. The economy in India is very much driven as a service economy, while China's economy has been very much a manufacturing economy. So, they are very different and if you ask what they have in common — the answer to it is — not all that much. We look at India as a very attractive market. We have had increasing levels of awareness about India, meaning that we have invested in events. Safra Catz, the Oracle joint CEO made a trip to India recently, and she came back so excited. That morning I remember she came to my office and was telling me the things we need to do in India and we are on that path.

What excites you about India?

The dynamics that excite us about any market is the scale of the market size. Yes, economy is important for us, and India's economy is only growing. India is on the path of modernisation of its infrastructure, and this usually has an effect on IT. So, as you get any type of scaled economy that is growing, that has modernisation opportunities and productivity opportunities, it becomes a very attractive market for a company such as Oracle. If you can supplement that with an educated country where there is availability of talent such as that is in India, it becomes very exciting.

The Prime Minister of India plans to take India on the digital route. Where does Oracle fit into this plan?

Indian Prime Minister Narendra Modi has been clear about digitisation, which we think ties in directly to the movement of cloud computing. We look at this as an opportunity. And it's there because of usage of old applications running on old infrastructure (common across the world). The cost of keeping that infrastructure and applications running is big. The opportunity to now move that to where it is done on somebody else's tab (expense) and still the innovation level goes up is what is exciting about the movement to cloud. Cloud is not just infrastructure as many people and at times media seems to reference. Cloud is applications, cloud is platform, cloud is infrastructure — all put together. And if you get a chance, as you move in to the cloud world, to get to an entire next generation of capabilities — it lends a big opportunity.

One of the challenges for a lot of Indian companies who want to adopt cloud computing, especially in the banking sector, is the regulation which requires data centres to be in the sovereign nation. Will Oracle start data centres in India to meet this requirement?

I think it is highly likely we will put a data centre in India. There are indeed compliance issues, regulatory issues which do not allow data to migrate out of the country or outside its firewall. But we have capability now, and it has been purchased by some customers in India, where we bring cloud to install on customer's premises. It would be like a subscription where customers need not buy but merely subscribe to our solution. Once done, we will install, manage, patch it and even secure it. So there are multiple ways, we will not just offer the solution of a public cloud in a data centre in India. We can actually take our cloud and put it in a data centre already present at the customers end.

Technology keeps changing, and disruption has caused many failures. Is there a plan B, if there is a cloud burst?

No, I don't think so. If we were to see a cloud burst — using your word, not mine — we would have seen it by now. We are the fastest growing cloud company in the world now. And let's look at the numbers around cloud companies, the big ones are probably at around $30 billion, total market is around $35 to $40 billion. Cloud business is growing at around 45% or probably faster. All of IT more or less is flattish and do I think that growth is about to slow down? No. It's opposite for us. Our growth rate is only getting higher. We have had seven consecutive quarters of a higher growth rate against a bigger base. As CEOs begin to understand that I can spend less to get more, they will drive the technical community to cloud faster.

Oracle in the last decade has been buying a lot of companies for scale and technology. It is never easy to integrate companies and create a mega corp. How do you manage this transition and bring Oracle culture to all of them?

What Safra and I do on acquisitions is based on the following filters we use: a) We look for companies that fit strategically b) We try to do things that make financial sense, c) But we also try to buy companies that we can run. It does not make sense for us to buy something which is very expensive, fits in strategically, but we

cannot run it. Not a good idea.

We don't (believe in) keeping places independent, do it your way, as if it's a democracy... No. It's not a democracy, we have a certain way we do these things, certain processes that we follow and we roll them right away.

We have two communities which we typically try to nurture within any acquired asset. It is the development community and the sales community. Those are the two organisational parts of any acquired asset that we are very interested in.

We do not have a common way we force on every deal, but we do have a Playbook. We make a judgement

with each acquisition that we have made and then we go and execute it.

Oracle is run by two CEOs since last two years and that's a big test for both individuals. It has not been quite a successful model for many tech companies in the past who tried it, what does it take to run it smooth?

It isn't just Safra and me, there is also Larry Ellison (promoter and CTO at Oracle). We all talk a lot. And I tell you, this is the third company I have been CEO of and let me tell you these jobs are hard. We get guys like you that show up and slip in questions like "Hey if you are so smart why don't you do this or that..." The problem is that any of these big entities require lots of hands. If you can get experienced, capable hands, it is just a huge blessing. So I believe that the more people you can get to help you in these jobs, the better.

In the case of Larry, Safra and I, we do different things and we come from different backgrounds. Yet, we play interchangeable parts at the same time and it's exciting. We have been able to take the company through this transition which is fantastic.

At the core of it, you have to have people to get along. You have to have respect, you have to be willing to communicate and to share. If you don't have those values, it is always going to be hard. And that is not just unique to our situation but any executive team in any organisation.

Everyone needs to have a vision for what the size of the prize is if you want them to execute on the strategy.

(The writer was in San Francisco to attend the Oracle Open World at the invitation of the company)

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

17.2. Google to set up data centre in India by 2017

Business Standard | Oct. 03, 2016

Mumbai: Google will set up its first India data centre in Mumbai by 2017, hoping to take on global incumbents such asMicrosoft and Amazon, who have a presence in the country, and allow local customers to host their applications on the internet.

Google controls a majority market share in India in search, email and on smartphones through is Android operating system. It also has a significant presence in offering enterprise applications such as mail and other services, but lags behind Microsoft and Amazon in its cloud business.

Amazon has three data centres, one each in Mumbai, Delhi and Chennai, with over 75,000 customers, including taxi hailing app Ola, Tata Motors and television network NDTV, on its cloud. Last year, Microsoft set up three data centres in India offering its Azure cloud to local customers.

Google, which already hosts applications of its Indian customers such as Wipro, Ashok Leyland, Smartshift by Mahindra & Mahindra, Dainik Bhaskar Group and INshorts.com on its global cloud platform, expects a India presence to service local customers faster. Google calls it data centre Cloud Region.

"By expanding to new regions, we deliver higher performance to customers. In fact, our recent expansion in Oregon resulted in up to 80 per cent improvement in latency for customers," said Brian Stevens, vicepresident, Google Cloud, in a statement.

Google Cloud Platform takes the infrastructure, machine learning and networking services used to power Google services and makes them available to businesses and developers to build high performance applications and data analysis at a low cost. As India's start-up community continues to grow, Cloud Platform provides the full stack of services to build, test and deploy their applications, the firm said.

In addition to its focus on Indian customers, Google is continuing to build its partner ecosystem to support customers as they move to the cloud. In India, Google already has deep partnerships with a multitude of bornin- the-cloud partners including Searce Co-Sourcing, Cloud Cover, PowerUp Cloud and MediaAgility as well as global partners like Wipro, TCS, Tech Mahindra, PwC and Cognizant. The opening of the Cloud Region opens up newer opportunities for several new cloud partners who will benefit from building their services on Google Cloud, the firm said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

18.1. Indian IoT market to touch US$ 15 billion by 2020: Nasscom

Livemint | Oct. 06, 2016

New Delhi: Indian Internet of Things (IoT) market is set to grow to $15 billion by 2020 from the current $5.6 billion, according to a report by Nasscom released on Wednesday in Bengaluru, as part of its design and engineering summit.

The IoT sector is set to get major boost from industrial IoT, which currently accounts for 60% for the total market and includes integration of physical machinery with networked sensors and using the data for faster and more efficient operations.

Consumer IoT, which includes smarthome devices as well as wearables, account for the remaining 40% of the IoT market.

This is set to change, with consumer IoT’s share rising to 45% by 2020, the report said.

Owing to the e-commerce boom and regulatory changes such as GST, Transport & Logistics is set to increasingly utilize IoT for more efficient operations.

The rise of tech-savvy consumers and increasing smartphone & mobile internet penetration would also help in driving consumer IoT.

“In India, while the industry is at a nascent stage industrial applications of IoT primarily in manufacturing, automotive and transportation & logistics are expected to drive IoT revenues by 2020,” said R. Chandrasekhar, president, Nasscom.

Major Indian IT companies are betting on new digital technologies such as IoT, analytics and artificial intelligence to diversify their revenue stream and fill in gaps for the slower growth in traditional IT business. “IoT has started being incorporated into both consumer and industrial applications being utilized in critical verticals like Healthcare, Automotive and Manufacturing. The ecosystem is rapidly expanding, owing to demand for both Industrial and Consumer IoT applications and is set to be a critical part of the next level of growth for the IT industry” said Kevin Ashton, a British technology developer, who coined the world Internet of Things.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

18.2. MNCs dominate, startups shine among India’s Best IT&ITeS companies

PTI | Sep. 15, 2016

Adobe Systems India, Google India, and Microsoft India are among the 50 Best IT & ITeS workplaces in the country, according to a survey.

Around 47 per cent of MNCs featured among the Best in IT & ITeS companies compared to just 20 per cent of non-MNCs making to the list. (Reuters)

Adobe Systems India, Google India, and Microsoft India are among the 50 Best IT & ITeS workplaces in the country, according to a survey.

The ‘Great Place To Work Institute’ today released the second annual list of India’s Best Companies to work for in IT & ITeS segment. The list was based on an assessment of employee perceptions gauged using the engagement survey and an audit of company practices.

Some of the other companies on the list include, Aegis, Global Analytics India, Happiest Minds Technologies, Hitachi Data Systems India, Kronos Incorporated, NetApp India, Pitney Bowes Software India and Shriram Value Services.

Multi National Companies (MNCs) dominated the list. Around 47 per cent of MNCs featured among the Best in IT & ITeS companies compared to just 20 per cent of non-MNCs making to the list. Other key companies to be featured in the list include SAP India, Intel India and PayPal. Employees from MNCs express far more positive perceptions about the workplace, compared to those from non-MNCs. Unique benefits, work-life balance, and fair share of profits were the top three areas where MNCs fared better over Indian companies, the report said.

Meanwhile, the startups (less than 5 years of operation) offered a far superior experience in all areas covered

in the survey compared to more established organisations, with the top three areas being celebrations at work, tolerance to mistakes, and accessibility of managers.

Even though more than 80 per cent of the companies had more than 5 years of operations under their belt, these findings are compelling considering the significant number of jobs created by startups being around

80,000 in 2014-15, according to a NASSCOM study.

“In our survey this year, the IT & ITeS sector accounted for nearly one-third of the companies we studied across the Indian industries. The industry’s clear focus on creating a great employee experience is therefore striking,” Prasenjit Bhattacharya, CEO, Great Place To Work Institute India said.

Dubbed as India’s Silicon Valley, Bengaluru was unsurprisingly the most popular location for IT companies assessed. The city also accounts for the headquarters of nearly one-quarter (24 per cent) of the best workplaces this year, including Happiest Minds, Intuit, Cisco, Salesforce and EMC India in the study.

Bengaluru, Noida, Chennai, Mumbai, and Gurgaon together account for 64 per cent of the total study population, and more than three-fourths (76 per cent) of the best companies in IT & ITeS. Top 50 companies were identified based on comprehensive country-wide engagement survey of over 36,500 employees from 145 IT & ITeS companies and employee engagement in the study is measured through the Trust Index and Culture Audit.

19.1. India can be Cisco's country of the year for the next 10 years

Business Standard | Oct. 13, 2016

Pune/Mumbai: Chuck Robbins, chief executive officer (CEO) of Cisco Systems, is transitioning the $49-billion company from hardware-centric to software and solutions-driven. Since he took over the top job last July, he has taken some bold decisions, which included acquisition of some 15 companies. He talks to Shivani Shinde Nadhe and Niraj Bhatt about the transition of the company, India’s role in Cisco’s growth and the manufacturing plant that was announced on Wednesday, aligning with Prime Minister Narendra Modi’s digital road map, among other things.

Edited excerpts:

How has the journey of Cisco been in transitioning itself into a software-driven firm?

Given the explosive growth in the digital space, you can look at it either as an opportunity or a threat. If you want to look at it as an opportunity, then it requires you to move faster and think much ahead of time. We are no different from many of our customers who are also undergoing such a change.

We have always sold integrated systems, but 80 per cent of our engineers and products are in the software area. We are much more of a software company than people believe or understand. What we need to do now is just evolve how we present our technology to customers, so that they see value and understand it. The need for hardware is not going away. The internet is dependent on high performance hardware. We are using a combination of both software and hardware to solve problems.

We had to innovate at each level and our vast research & development (R&D) capability helped us do it. We have always been a company that knows how to acquire and integrate. We have had a tremendous partner ecosystem around the world, which we are building out further into deeper relationships that we didn’t have in the past like we have now with Apple, Salesforce and Rockwell Automation. You will see more of these in the future. You will see more of these in the future.

The other focus area has been co-development with customers where we are doing iterative product designs. We have done some of this in India too.

Are you looking to invest in Indian start-ups?

We have invested over $2 billion in start-ups across the globe through our venture capital arm. In India, our investment has been $280 million. We have created a $100-million fund for innovation in country digitisation for India, and we can invest further.

How do you see CEOs tackling the digital disruption? What suggestions would you give them?

I entered the information technology (IT) space in the mid-1980s as a Cobol programmer. I’m amazed at the progress of technology since then. Today’s CEOs will need some working knowledge of technology. It is amazing to see how much technology, my peers in industries such as retail, media and banking understand. What you may have to deal with today is that you cannot be married to major successes of the past. You have to make decisions that best positions your company five years from now. These decisions are not easy.

CEOs also realise that the IT organisation and operational teams need to work together. Successful companies are working on such integration. There is a general belief that by the end of 2017 three-quarters of all companies in the world will have a strategy that will have digital associated with it and by 2019, about 40 per cent of revenue will come from digital initiatives.

How is Cisco working with PM Modi’s Digital India road map and what opportunities do you see there?

India has a leader who understands the technology need of the country. We have been in India for 21 years and we have made three big commitments over these years. The first was when we decided to make India our second global headquarters, and it has been one of the best decisions we have taken with the talent pool and the engineering expertise available.

The seco nd commitment was to align with Prime Minister Modi’s digital road map and India is a part of our

Country Digitisation Accelarator programme. We are deeply engaged with six countries around the world at

the head-of-states level where we have digital transformation plans in support of the vision of the leader.

These include France, Germany, UK, Israel, India and Mexico.

The third commitment is the setting up of a manufacturing hub in India, which we announced on Wednesday. At present the manufacturing hub is for the Indian market but over time we would like to see it as a hub for other countries as well.

How significant is India for Cisco’s transition?

India is an incredible country for us as it represents 360 degree value. It’s a great business opportunity, a great place to attract employees and now a part of the supply chain as well. It was the ‘country of the year’ for Cisco last financial year. India can be the country of the year in every year for the coming decade. When you have leadership and business community, which believe that technology is key, it just creates tremendous

opportunities for us. Every time I come here I tell my teams how much more we can do in India.

What do you think of Reliance’s Jio plan?

We have a tremendous partnership with them. It has been a fascinating project. The capabilities they are unleashing in this country will only accelerate the digital transformation the country is undergoing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

19.2. US data firm Factset to set up its largest global office in Hyderabad

Economic Times | Sep. 14, 2016

Hyderabad: American financial data and analytics firm Factset has sealed a deal to set up an 8.6-lakhsquarefeet office in Hyderabad, its largest in the world, earmarking Rs 800 crore for lease rentals over 15 years. The Nasdaq and NYSE-listed firm, which has 8,000 employees in 40 locations across 21 countries, is gearing up to hire 7,000 employees for Hyderabad alone, said two persons close to the deal.

Factset has agreed to acquire 8.6 lakh sq ft of high-end office space at Divyasree Orion Special Economic Zone in Gachibowli, one of the persons said. Cushman & Wakefield acted as consultant for the deal, he said. The SEZ is spread over 4 million square feet While Cushman & Wakefield's Hyderabad managing director Veera Babu refused to divulge details citing confidentiality clauses with clients, Telangana's IT secretary Jayesh Ranjan confirmed the development. "Factset had been in talks with us for the past seven-eight months for new investments in the city," Ranjan said.

In response to ET queries, Fact set's spokesperson Amy C Bowman expressed inability to provide details until next week. "The move by Factset to acquire its largest global office space in Hyderabad comes months after Apple, Amazon and Google choosing Hyderabad for their global development centres attracted by a strong talent pool and low real estate costs, coupled with political stability," one of the persons cited earlier said.

Wells Fargo, IBM and JPMorgan have also sealed deals for high-end office space in the city over the past few months. A property consultant described the deal as the second-largest office space acquisition in Hyderabad after Swiss healthcare firm Novartis acquired 9 lakh sq. ft. office space three years ago.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

20.1. Apollo Hospitals, Italy-based KOS group to set up network of rehab facilities in India

Livemint | Sep. 30, 2016

Hyderabad: Apollo Hospitals Enterprise Ltd, India’s largest healthcare provider, on Thursday said it has entered the medical rehabilitation services business in a joint venture with Italy-based KOS group. The equal joint venture, ApoKos, opened its first 64-bedded medical rehabilitation facility in Hyderabad, built at

an estimated cost of Rs.20 crore, excluding land and building expenses.

Apollo said the joint venture will be setting up similar medical rehabilitation centres across various metro cities over the next two years.

KOS – with revenues of €439.2 million is one of the main Italian operators in the home care sector managing 77 facilities in central and northern Italy, for a total of more than 7,300 beds.

KOS in addition to investing in the joint venture proportionate to its share – will also bring its expertise and European rehabilitation protocols to India.

ApoKos rehab centre in Hyderabad will have a mix of single and sharing rooms, besides fully equipped physiotherapy and occupational therapy gyms and state-of-the-art robotic rehab equipment to treat patients. The first three to six months after acute care—are crucial for the complete recovery of a patient—this where we have found out that most patients are getting sub-optimal care leading to slow and incomplete recovery, said Rahul Khandelwal, chief operating officer of ApoKos.

“Currently the market is highly unorganized, ill-equipped and concentrated around home or out-patient physiotherapy, ApoKos aims to bridge this service deficiency.” Khandelwal said.

Apollo said the cost of care at the rehab centre is 30-40% cheaper than getting the same service in acute care hospital and is much more convenient for the patients and their caretakers. The rehabilitation centre caters to neurological, orthopaedic, cardiopulmonary, pediatric, geriatric and cancer patients.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

20.2. Intas Pharma to buy Teva's UK, Ireland generics businesses

Livemint | Oct. 06, 2016

Mumbai: Intas Pharmaceuticals Ltd agreed to buy Actavis UK Ltd and Actavis Ireland Ltd from Israeli generic drug maker Teva Pharmaceutical Industries Ltd for an enterprise value of approximately £600 million (Rs5,083 crore) in an all-cash transaction.

The transaction is expected to be completed in the next three months, Ahmedabad-based Intas said in a statement on Wednesday.

The acquisition will expand Intas’s UK manufacturing presence with the addition of the Barnstaple site in North Devon and more than doubles Intas’s pan-European operations, with revenues exceeding $500 million, the company said. The Barnstaple plant will become the company’s fourth UK site.

The deal will also increase Intas’s access to UK and Irish retail and hospital markets.

“This transaction represents a unique opportunity for Intas to build scale in the UK and Ireland—adding to our market-leading hospital franchise—and creates a strong platform for further European expansion,” said Binish Chudgar, vice-chairman and managing director of Intas.

“We have a clear plan for the continuation and development of the Barnstaple site and the Actavis UK and Ireland teams,” he added.

Moelis and Co. and Rothschild & Co. were the financial advisers to Intas.

The transaction is part of the European Commission’s (EC) anti-trust divestiture requirements arising from Teva’s acquisition of Actavis Generics.

Teva agreed in July 2015 to purchase Allergan’s generics unit for $40.5 billion in cash and stock, a deal that made Teva the largest manufacturer of generic drugs in the world. Since then Teva has been on a divestment spree to address antitrust concerns.

In December, Reuters reported that Teva is in the process of selling its assets in the US, Europe and the Middle East.

On 29 July, Mint reported that Cipla Ltd, India’s fifth largest drug maker, had acquired a portfolio of three products from Teva in the US. Aurobindo Pharma Ltd was also part of the 11 firms that agreed to acquire 79 existing and future drugs from Teva.

In June Dr. Reddy’s Laboratories Ltd and Cadila Healthcare Ltd (Zydus Cadila) announced that they will buy products divested by Teva in the US.

Intas’s acquisition of Teva’s UK assets puts it in the big league of large overseas acquisitions by Indian pharma firms. It is also the biggest outbound M&A (merger and acquisition) transaction in the pharma space so far in 2016, according to data from Venture Intelligence.

Last year, Lupin Ltd acquired New Jersey-based Gavis Pharmaceuticals Llc and its affiliate Novel Laboratories Inc. for $880 million (around Rs5,600 crore) in a bid to expand its presence in the US generics market. Also in 2015, Cipla Ltd acquired two US-based companies, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc., for $550 million, to strengthen its presence in the world’s largest drug market.

According to Sujay Shetty, leader (pharma life sciences) at PwC India, the UK market being a highly competitive one, acquiring established brands to increase market penetration is a strategy that serves Indian generic companies well.

“UK is a large generic market and one of the top two generics market in Europe. While there is strong potential for growth in the market, it is a highly competitive market. For any Indian generic drug maker that is looking to increase its market share in the UK, it makes sense to go for brands which are already well entrenched in the market,” Shetty said.

Intas is backed by private equity firms Temasek and ChrysCapital. In 2014, Singapore’s investment firm Temasek Holdings Pte Ltd acquired a 10.16% equity stake in the pharma firm by way of a secondary purchase of shares from private equity investor ChrysCapital for around Rs900 crore.

ChrysCapital, the first institutional investor in the company, continues to hold a little over 6% stake in the firm. Intas is among the top 10 Indian pharmaceutical companies and the largest privately held pharmaceutical company in India, with annual turnover in excess of $1 billion, of which 60% comes from international operations.

The group has an extensive geographic footprint with a presence in 70 countries worldwide and more than 80% of export revenue coming from the US, UK and EU.

Intas operates over 10 manufacturing facilities worldwide. The group has capabilities to produce a wide variety of dosage forms, including solid orals, liquids, lyophilized sterile preparations, creams, drops and injectables. Intas employs 12,000 people globally with more than 400 located in Europe. The company employs over 800 scientists, spends approximately 6% of sales on R&D per annum and has been granted 27 international patents.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

INDIA & THE WORLD

21. Rashtriya Chemicals to set up 1.3-mt urea plant in Iran

Business Standard | Sep. 26, 2016

Mumbai: Rashtriya Chemicals & Fertilizers (RCF) has formed a venture with Gujarat State Fertilizer Corporation (GSFC) and Faradast Energy Falat Company (FALAT) for the development of a 1.3-million-tonne (mt) urea plant at Chahbahar in Iran. The project entails investment of Rs 6,500 crore. The product will be shipped back to India.

RCF Chairman and Managing Director Manoj Mishra told Business Standard, "Both RCF and GSFC together have proposed to hold 51 per cent while the balance 49 per cent will be held by FALAT. However, talks are currently underway."

Further, the company plans to expand production capacity at the Thal plant in Raigad district with an investment of Rs 5,500 crore. "RCF will set up a single stream ammonia plant of 2,200 tonnes per day and one single stream urea plant of 3,850 tonnes a day at the site in Thal. The project awaits Cabinet approval," Mishra said.

RCF with Coal India, GAIL India and Fertilizer Corporation of India will set up a complex of 2,200 tonnes a day ammonia plant and 3,850 tonnes a day urea plant at Talcher in Odisha. "Coal gasification route is being explored as feed stock. A joint venture company, Talcher Fertilizer Ltd, has been incorporated to execute the project which entails an investment of Rs 8,000 crore. RCF has pricked up 29 per cent equity worth Rs 1,000 crore," he said.

Mishra said the joint venture has engaged Project & Development India Ltd and has issued expression of interest for the selection of coal gasification technology and it hopes to complete the process in two months. RCF is spending Rs 1,000 crore on energy efficiency in Trombay and Thal plants. "There will be massive reduction in energy which will make us profitable in future. We expect the benefits to start coming by 2018-19," he said.

This apart, RCF is investing Rs 198 crore on a sewage treatment plant at the Trombay plant. Mishra said RCF, with the ongoing expansion in and outside India, aims to achieve turnover of Rs 15,000 crore by 2021- 22. RCF's net profit dipped to Rs 191.23 crore in 2015-16 against Rs 322.06 crore in 2014-15, a 40.62 per cent fall. "Profit took a hit as we had made a provision of Rs 181 crore as an abundant precaution and responsible accounting for use of ATM gas for non-urea purposes. Had this provision not made our profit would have been the same as last year," he added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

22.1. BRICS members to sign pact to reduce non-tariff barriers

Livemint | Asit Ranjan Mishra, 12 Oct. 2016

The agreement, to be signed during the BRICS summit in Goa over the weekend, will boost free trade among the emerging economies

BRICS trade ministers will meet in New Delhi on Thursday ahead of the 8th BRICS Summit meeting in Goa on Saturday and Sunday to discuss global economic trends and their influence on BRICS trade and investment.

New Delhi: Though India is not in a hurry to consider the Chinese proposal to have a free trade area among BRICS nations, the five emerging economies will sign an agreement at the upcoming Goa summit for better customs cooperation with an eye to reduce non-tariff barriers among the nations.

BRICS comprises the five emerging economies of Brazil, Russia, India, China and South Africa.

China’s ministry of commerce (MoC) on Sunday said a free trade area would be a “significant form of cooperation” between BRICS nations, the state-run China Daily reported.

MoC spokesperson Shen Danyang at a press briefing said that by setting up a free trade area, BRICS countries would be able to remove tariff and non-tariff barriers, give play to their comparative advantages, and advance trade and investment liberalization among them.

India’s commerce minister Nirmala Sitharaman, however, on Monday said she is not aware of any such proposal.

BRICS trade ministers will meet in New Delhi on Thursday ahead of the 8th BRICS Summit meeting in Goa on Saturday and Sunday to discuss global economic trends and their influence on BRICS trade and investment. A commerce ministry official, speaking on condition of anonymity, said that agreements on developing a portal for small and medium enterprises as well as one on non-tariff measures are expected to be signed in Goa. “A BRICS portal on non-tariff measures will be developed. This is meant to encourage better understanding of non-tariff measures of each country among exporters,” a commerce ministry official said.

Another agreement on cooperation on e-commerce which will lead to only information exchange in the area may also be signed.

The official said the ministry’s proposal to come out with a travel card for easier visas for businessmen and tourists among the BRICS nations did not take off as the Union home ministry is not very keen on it.

BRICS brings together five major emerging economies, comprising 43% of the world population, having 30% of the world GDP and 17% share in the world trade.

BRICS exports to rest of the world amounted to $3.48 trillion in 2014. Between 2006 and 2015, intra-BRICS trade increased 163%, from $93 to $244 billion.

The acronym BRIC was first used in 2001 by Goldman Sachs in their Global Economics Paper, “The World Needs Better Economic BRICs” projecting that the economies of Brazil, Russia, India and China would individually and collectively occupy far greater economic space and would be amongst the world’s largest economies in the next 50 years or so.

As a formal grouping, BRIC started after the meeting of the Leaders of Russia, India and China in St. Petersburg on the margins of G-8 Outreach Summit in 2006. The grouping was formalized during the first meeting of BRIC foreign ministers on the margins of UN General Assembly in New York in 2006. The first BRIC Summit was held in Yekaterinburg, Russia, on 16 June 2009.

It was agreed to expand BRIC into BRICS with the inclusion of South Africa at the Bric foreign ministers’ meeting in New York in September 2010.

Accordingly, South Africa attended the third BRICS Summit in Sanya, China, on 14 April 2011.

22.2. India preferred growth market in BRICS, says PwC's John Dwyer

Economic Times | Oct. 17, 2016

New Delhi: ET interview with John Dwyer and Sanjeev Krishan of PwC

The Big Four dealmakers are finding their niche in the investment bank dominated deals business. PwC's John Dwyer runs one of the biggest deals businesses among the accounting firms, clocking over $5 billion in yearly fees.Dwyer and Sanjeev Krishan, India transaction services and private equity leader, spoke to Vinod Mahanta and Abhishek Nair.

Edited excerpts:

PWC India's revenues were up 19.3% year-on-year. How did the Indian deals business fare?

Dwyer: The Indian deals business has done very well. If you look at the last three years, the business has grown double digits, at almost 20% plus in the last three years. But not just the growth, when we talk to clients, there is a different tone, there's a different view, and a certain positivity about our involvement in big situations. The firm has also invested a lot in deals. So, we've invested in corporate finance, we've invested in deal strategy. We're sure it is going to be a very promising time for India. At this time, India is the preferred growth market in BRICS (Brazil, Russia, India, China and South Africa). There's good political environment and a brand of trust which is much better than what it was two-three years ago, in terms of external investors. It's a more receptive and predictable market.

With slowing global growth, do you see a dampening in M&A activity?

Dwyer: There has already been evidence of that but numbers do fluctuate by the quarter. The last two quarters leading up to September 30, the number of deals done is down by 15-20%. There is a sign of decline globally, as people have paused a bit. But now the position is relatively stable. There's definitely a pause, some of it is because of the political action like the presidential election in the US, some of it is because of Brexit. There was a definite slowdown of business before, into and after the whole Brexit referendum in continental Europe and UK. I would be surprised if that didn't continue for the next quarter or couple of quarters. In the global uncertainty, India stands to benefit because of the stability and attractiveness of the market.

When global corporations talk about acquiring India companies, do the Indian tax and regulatory issues still remain bugbears?

Dwyer: These tax issues started cropping into conversations, two-three years ago but the view is that these things will get sorted. The general consensus is that the present government will see that these issues re

worked out. I feel the political environment is more predictable. There's definitely an interest in foreign investment taking place and when you compare emerging-market, fast-growth environment, India ticks a lot of boxes compared to others. So, I feel these kind of issues, relative to other growth markets, are more manageable. And the steady growth rates at 8% and with the liquidity in the market, all of those factors together, suggest that these issues will not impede investments and there will be continued momentum. With respect to investing in any country, there are its pluses and minuses, but I feel the pluses in India are very attractive to a lot of businesses. To find such dynamics in consumerism is rare and that is where India has benefitted largely.

Indian companies have struggled with outbound M&A. Why do you think a large chunk of global acquisitions didn't work out for Indian companies?

Dwyer: The machinery of acquisition that tends to work in a corporate environment is those add-onsin-fills (smaller acquisitions to fill gaps) that repeat themselves time and again. It's not like one big-splash deal but more like adding a new geography, a new technology, a new skill, basically, filling in a gap. They do their

diligence very well, they know what they are buying and why. They have a template in the way they approach these deals, and they usually understand the market dynamics very well.

The ones that don't work, and this applies to any corporate, are the ones where the company is not sophisticated in running these processes and don't do acquisitions regularly. And often, if a company's acquisition machinery hasn't worked regularly and the company opts for a big acquisition, it tends to fail. Some companies like GE have really good add-on, in-fill practices, a sophisticated approach to risk, a very deep understanding of the country's market and an accompanying, well-oiled acquisition machinery. You just need to make yourself familiar with the practice, commit some quiet mistakes in the background, keep on building your machinery, but it does come with practice.

The restructuring space in India will witness a lot of action. How are you looking at tapping that opportunity?

Krishan: We see two kinds of opportunities arising for deals businesses in the restructuring space -the first is more transactional, i.e. some divestitures are likely as corporates look to deleverage their balance sheets. The second opportunity is to help management teams avoid value erosion and work with new management teams to create value -some of this work requires operational expertise and our delivering deal value and larger consulting teams will combine to do so. Moreover, we have significant global resources which we can move quickly as opportunities emerge.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

23.1. China's Fosun International plans to invest US$ 1 billion via realty private equity platform

Economic Times | Sep. 15, 2016

New Delhi: Chinese conglomerate Fosun International is making an entry into the Indian real estate space and plans to invest close to $1 billion through a real estate private equity platform it is setting up here, said two people aware of the development.

The diversified investments firm is bringing on board Apurva Muthalia, the CEO of Aditya Birla Real Estate Fund, to head this new arm in India, which will first start with buying income-producing rental assets in the country, just like Blackstone and some other large global funds have done so far. "It will also buy some

development assets in the top cities that will be developed later when they set up a construction arm here to build large projects," said one of the persons, requesting anonymity. Fosun is also in talks with real estate fund businesses in India including Rising Straits Capital to invest monies in their funds.

"This is similar to what large investors like GIC do. They put money in other funds and also make investments on their own when an opportunity arises. Fosun will have a similar play here. They are already looking at buying an asset in Mumbai," said the second person.

An email questionnaire sent to Fosun International did not elicit any response till press-time. Muthalia could not be reached on Wednesday despite several calls and text messages.

A spokesman for Rising Straits Capital declined to comment. This comes just months after Fosun bought PE firm KKR-backed Gland Pharma for $1.4 billion and also set up a general private equity business in India. It has hired former Standard Chartered Private Equity executive Rahul Raisurana to head the venture.

Many large global institutional investors have been eyeing rental assets across India, which are seen as very safe investments. The likes of Blackstone, Brookfield Asset Management, GIC, Ascendas and others have picked up assets in the past few years, creating large portfolios in the country.

In June 2014, Brookfield Asset Management had picked up 100% stake in four SEZs and 60% in two other assets owned by UnitechBSE 2.79 % and Unitech Corporate Parks for about Rs 3,500 crore. Blackstone owns the largest office portfolio in the country with over 30 million sq ft of operational commercial office space and another few million sq ft under construction. India's largest real estate developer DLF is in the process of selling its promoters' 40% shareholding in the company's rental arm DLF Cyber City Developers Limited which holds 26.8 million sq ft of rented office assets.

A few of these institutional investors are eyeing setting up real estate investment trusts (REIT) on the Indian stock market, the guidelines for which were finalised by Indian authorities recently.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

23.2. Wipro Consumer arm to buy China FMCG firm

Livemint | Sep. 23, 2016

Bengaluru: Wipro Consumer Care and Lighting’s Singapore arm has agreed to buy Zhongshan Ma Er Daily Products Ltd, a Chinese fast-moving consumer goods (FMCG) company, for an undisclosed amount in an allcash transaction.

Wipro Consumer Care said this would be its second biggest acquisition since it bought Unza Holdings Ltd, a Singapore consumer goods firm, for $246 million in 2007.

This will be Wipro Consumer Care’s 10th acquisition since 2003; and with this, it expects its international businesses to account for 55% of its total global revenue.

The company said it has spent around $600 million in total on buyouts over the past 13 years.

“From our perspective, it’s a great acquisition because it doubles our revenue in China. If we go back to 2007 when we acquired Unza, we were about RMB82 million in China alone; and with this, we will have a run-rate of close to about RMB1 billion (close to Rs1,000 crore),” said Vineet Agrawal, chief executive officer of Wipro Consumer Care and Lighting.

The deal, which is subject to regulatory approvals, has taken Wipro Consumer Care six years to consummate. China will become the company’s third largest market after India and Malaysia, once the deal is closed. Wipro expects to close the transaction by end-October and anticipates that the newly acquired firm will start contributing to its revenue post that.

Zhongshan Ma Er is a family-run business based in South China’s Guangdong province, with 55% of its sales in shower products and 45% in liquid detergents.

“This gives us immediate access to resources that will help us fuel faster growth in our business, and enable us to unlock the true potential of our brands,” said Chen Rui Qiang, chief executive officer and founder of Zhongshan Ma Er in a statement.

Talks between the two firms first happened in 2010, but the Chinese firm was not sure if it wanted to sell itself and Wipro wasn’t sure what the valuation ought to be. “When it didn’t work out, we decided to hold off serious negotiations for a while, but stayed in touch. It was picked up again about two years ago,” Agrawal said in an interview.

“China is one of the largest markets in FMCG but a tough one,” said Edelweiss Securities Ltd’s senior vicepresident Abneesh Roy, adding that this was the first major buyout in the FMCG space of a Chinese company by an Indian company.

Indeed, China is not an easy market to crack, with challenges ranging from the basic and obvious language barrier to gaining a thorough understanding of local laws and markets.

Wipro’s Agrawal says the key is to get the strategy right.

“We believe that if we go in, rather than spread thin by having 2% market share (in, say, each province) we’d rather go in one or two provinces; expand market share so that we can be dominant there.”

Wipro Unza already has a presence in South China’s Guangdong and Hainan provinces in the personal wash and deodorant categories, with its Enchanteur and Romano brands. Zhongshan operates mainly in Guangdong.

“(That way) our costs are lower as well as the fact that we can break into competition. This acquisition helps

us to do that,” added Agrawal. The Wipro executive, along with a few colleagues, sported gray t-shirts with the

number 10 on it in red in the front to mark the number of acquisitions and “silk route to China reinvented” behind at the press conference on Thursday.

Still, this doesn’t shift Wipro’s focus away from India entirely, despite the fact that the domestic consumer economy hasn’t been doing well, Agrawal said, adding that they are constantly on the lookout for deals across segments and geographies depending on gaps in their portfolio.

“Indian (consumer economy) growth has slowed, but is likely to revive on the back of a good monsoon, urban recovery, etc. Penetration of most consumer segments in India is one of the lowest in the world and with the second largest population (globally), the Indian market offers a huge opportunity,” said Edelweiss’ Roy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

24. Three Agreements/MoUs signed between India and Russia in the Hydrocarbon sector; India-Russia Annual Summit held at Goa

Press Information Bureau | Oct. 17, 2016

New Delhi: Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan today received the President of Russia Mr Vladimir Putin on his arrival at Goa for the India-Russia Annual Summit and the 8th BRICS Summit. Sh Pradhan also participated in the delegation level talks at the level of Prime Minister of India and President of Russia. During the talks, Sh Pradhan highlighted the ongoing cooperation between India and Russia in the Hydrocarbon Sector, including the acquisition of 23.9% stake in Vankorneft and 29.9% in Taas- Yuryakh by an Indian Consortium of IOCL, OIL and BPRL and acquisition of 15% and 11% stake by OVL in Vankorneft from Rosneft Oil Company of Russia. While the Indian Consortium has completed all formalities related to acquisition of its stakes, Cabinet level approvals on both sides have been obtained for acquisition of 11% stake by OVL and the deal is expected to complete by end October 2016.

In the presence of Prime Minister of India and President of Russia, following three Agreements/MoUs were signed between India and Russia in the Hydrocarbon sector:

MoU between Engineers India Ltd and Gazprom on the Joint Study of a gas pipeline to India and other possible areas of cooperation;
Cooperation Agreement in the area of Education and Training between ONGC Videsh Ltd and Rosneft Oil Company; and
Programme of Cooperation (PoC) in the Field of Oil and Gas for the period 2017-18. The PoC was signed by Sh Pradhan on the Indian side and Mr Alexander Novak, Minister of Energy from the Russian side.

Both India and Russia agreed to further work towards enhancing their bilateral engagement in the hydrocarbon sector to make it a two way trade.

Following the delegation level talks, Prime Minister Modi in a Press Statement said “In the last four months alone, in a clear expression of our strong and deep engagement in the Hydrocarbon sector, Indian companies have invested close to US Dollars 5.5 billion in Russia’s Oil and Gas sector And, with President Putin’s support, we are ready and willing to expand the scope of our engagement further. We are also undertaking a joint study of a gas pipeline route between our two countries. A combination of robust civil nuclear cooperation, LNG sourcing, partnership in the Oil and Gas sector, and engagement in renewables can construct a promising ‘Energy Bridge’ between our two countries.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

25. French power major EDF plans US$ 2 billion green bet on India

Economic Times | Sep. 20, 2016

New Delhi: French state-run power major EDF will invest heavily in renewable energy in India, with projects worth $2 billion in the pipeline, and is bullish about the sector, where it sees electricity tariffs falling 30% in five years, EDF Energies CEO Antoine Cahuzac told ET.

India is among the few countries EDF has chosen for a significant expansion of its global portfolio of renewable energy because the country has a huge demand potential, power scarcity and "fantastic" quality of wind and solar radiation, Cahuzac said.

EDF is also interested in nuclear energy, for which it has initial agreements with Nuclear Power Corp, but regulatory issues are still under discussion, he said. EDF also has interest in hydropower generation in India and is looking at a few prospects, he said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

* * *

AAPI

Pages

Thursday 20 October 2016

NEWSLETTER, 20-X-2016

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING and RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

– SERVICES (IT, R&D, Tourism, Healthcare, etc.)

NEWSLETTER, 20-X-2016

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

– SERVICES (IT, R&D, Tourism, Healthcare, etc.)

INDIA & THE WORLD