By IACC Head Office, Mumbai

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Index

Contents

President’s Message .......................................................................................................... 5

From the Desk of Secretary General ........................................................................ 7

HAPPENINGS @ IACC ............................................................................................................. 8

Forthcoming Events .......................................................................................................... 14

Calendar of IACC Events for 2011 .......................................................................................................................... 14

In the News:........................................................................................................................... 15

U.S. Pushes India to Lift Solar Import Restrictions ....................................................................................... 15

Punjab may get USD 1-bn deal for US-based car manufacturing facility ........................................... 18

India allays US concerns over nuclear liability ............................................................................................... 18

US bill to help 9/11 victims at our cost, says India ....................................................................................... 19

Obama passes tax cuts with Republican backing........................................................................................... 20

India seeks communication, telecom security pact with US .................................................................... 22

US grant for smart grid development in Bangalore ...................................................................................... 22

Harvard dials Indian schools for case studies ................................................................................................. 23

Indian restaurants-on-wheels gaining popularity in the US .................................................................... 24

Indian American's book among NYT's 10 best of 2010 .............................................................................. 25

India still world’s No. 1 destination for offshore outsourcing ................................................................ 25

Microsoft bullish on India’s efforts to move services online ................................................................... 26

India adds over 55 m sq ft of office space in 2010 ........................................................................................ 26

‘Global crisis made foreign firms look to India’ .............................................................................................. 27

Obama-Singh knowledge initiative: IITs begin work................................................................................... 28

US-based Indian Shuvo Roy creates first artificial kidney ........................................................................ 29

Indo-US Corporate News............................................................................................... 31

Reliance, Qualcomm start next gen broadband trials ................................................................................. 31

PharmaSecure a US company to help check authenticity of drugs....................................................... 32

US coffee major Starbucks in talks with Indian corporate ........................................................................ 32

Cisco overhauls India partner strategy ............................................................................................................... 33

IBM keen to expand into tier-3 cities ................................................................................................................... 33

Salesforce.com plans expansion, eyes banking, insurance ....................................................................... 34

India’s Investments in USA .......................................................................................... 36

India's Tata plans hiring spree in Detroit .......................................................................................................... 36

HCL Tech bags US pharma co deal ......................................................................................................................... 36

Lincoln Pharma ties up with US based Human Biosciences Inc ............................................................. 37

Opto Circuits buys 76% of US firm ........................................................................................................................ 37

Religare buys US PE co Landmark for Rs 770 crore ..................................................................................... 38

DRDO to license its explosive detection technology to US firm ............................................................. 39

Maini Materials inks alliance with NHMG, USA .............................................................................................. 40

L&T Infotech in strategic partnership with IBM ............................................................................................ 41

Nichrome ties up with Prodo-Pak .......................................................................................................................... 42

Mahindra Satyam in tie-up with Stratus Tech ................................................................................................. 42

Natco Pharma signs agreement with US firm for cancer drug ................................................................ 43

Zylog scouts for acquisitions in US ........................................................................................................................ 43

ISB inks pact with Tufts University ....................................................................................................................... 44

US Investments in India ................................................................................................. 45

US-based PE fund may invest 400 cr in Mantri Developers ..................................................................... 45

McDonalds to invest Rs 350 crore over next 4 yrs in Gujarat ................................................................. 45

KFC sets up 100th store in Bangalore.................................................................................................................. 46

Actis, GIC to invest Rs 698 cr in GVK Energy ................................................................................................... 46

Eton Park to invest $125 million in JSW Infra ................................................................................................. 47

GE to supply gas turbine generators for GMR project ................................................................................. 47

Amway India eyes Rs 2,500 crore turnover by 2012 .................................................................................. 48

'India is engine of Dell's global growth' .............................................................................................................. 48

Walmart raises IT sourcing from India ............................................................................................................... 49

Xiotech to expand India operations ...................................................................................................................... 50

Tecumseh to supply compressors for Panasonic refrigerators ............................................................. 51

Lockheed Martin delivers C-130 aircraft to IAF ............................................................................................. 51

Harley Davidson introduces SuperLow and Iron883 bikes ..................................................................... 52

Textron wins Indian sensor fused weapons contract ................................................................................. 53

Disney inks publishing, distribution pact with India Today Group ..................................................... 53

HP ties up with IIIT-B for Network University ............................................................................................... 54

Honeywell working on petrol turbocharger .................................................................................................... 54

Trade and Statistics .......................................................................................................... 55

US Trade with India: 2010 ......................................................................................................................................... 55

International Trade Shows ........................................................................................... 57

US DEPARTMENT OF COMMERCE CERTIFIED TRADE SHOWS IN US ............................................... 57

Feature State: Texas ....................................................................................................... 59

Business Guide for SMEs............................................................................................................................................. 59

Overview: ............................................................................................................................................................................ 59

Texas’s Trade with India............................................................................................................................................. 59

Potential for India: ......................................................................................................................................................... 60

Starting a business: Tips for SMEs ......................................................................................................................... 68

Step 1: Business Structure and Name .................................................................................................................. 68

Legal Structure .............................................................................................................................................. 68

Step 2: Business Tax Responsibilities .................................................................................................................. 72

Federal Taxes ................................................................................................................................................. 72

State Taxes ....................................................................................................................................................... 72

Local Taxes ...................................................................................................................................................... 73

Financial Resources....................................................................................................................................................... 73

Loan Assistance ............................................................................................................................................................... 74

How to reach us: ................................................................................................................. 77

President’s Message

Dear Members,

My gratitude to all of for the support and cooperation that you have been extending in our efforts to script a paradigm shift in our focus, direction and activity profile. Being the exclusive bi-national organization catalyzing the Indo-US economic engagement, we have to strive towards creating newer ideations for giving new impetus to the cooperation. Our shared approach to embellish the conventional role with fresh initiatives, such as setting up of INDO-US forums in diverse areas like education, legal services, urban development and interface among young executives from both countries is a positive affirmation to break new ground and yet strengthening our existing space.

Let me briefly explain the ground that we have covered in the last three months or so. Thirty–one meetings that we have organized across the country reflect our commitment to make IACC an effective platform for informed debate on the issues, perspectives and challenges that we have to address as a proactive business organization. These meetings included high level consultations with the Union Ministers, high ranking officials in the US Administration and brain storming on contemporary business challenges.

Let me flag mark some of them to give you an idea about the range, scope and content of the fruitful consultations. Meeting with Union Minister of Power Mr. Sushil Kumar Shinde on October 8, 2010 in Mumbai helped us in cataloguing the grey areas in power generation, distribution and transmission, apart from presenting him the perspectives of IACC for augmenting power generation in the country during the 11th Five Year Plan. We also had a meeting with Mr. Dinesh J Patel, Union Minister of State (Independent Charge) for the Ministry of Micro, Small and Medium Enterprises on November 25, 2010 in New Delhi, which had helped us to explain the broad contours of the initiatives taken by IACC in forging tie ups between small and midsize companies in India and the US and more particularly on the Indo-US SME Forum espoused by IACC. Meeting with Mr. Suresh Kumar, Asst. Secretary for Trade Promotion & Director General of the US & Foreign Commercial Service, US Department of Commerce, on October 28, 2010 in Mumbai helped us in articulating our suggestions for promoting Indo-US investment and trade.

Mr. Mike Delaney, Assistant, USTR met a delegation of IACC led by me on October 22, 2010 at NIC office along with Mr. Pawanjit Ahluwalia, Chairman & Mg Director, Premiershield Pvt. Ltd; Ms. Annaliese Heliligenstein, Economic Officer, US Embassy, Mr Vipul Maheshwari, Managing Partner, Maheshwari & Co and others. We had hosted Ms. Judy Reinke, Minister Counselor for Commercial Affairs, US Commercial Service, India at Varanasi on November 22, 2010, Bangalore on November 18, and at Kolkata on November 11. Highlights of these meetings are captured elsewhere in this virtual publication.

I am delighted to mention that IACC has got some mindshare during the recent visit of President Obama in the media. It provided rich contents to Economic Times for its supplement brought out to coincide with Presidential visit. It is gratifying that they had prominently displayed my message in all editions of the publication. The ‘Diplomatist Plus’ magazine came out with a special issue welcoming President Obama covering Indo-US trade and IACC.

Let me now briefly capture the strides that we have made for putting in place the bilateral forums that we have constituted to act as trailblazers to energize the Indo-US economic engagement. The members of all the four ‘INDO-US’ forums - legal affairs, education, habitat and young executives forum - have been in communication among themselves to chalk out their program of activities, to crystallize their shared agenda, figure out the challenges and to make a roadmap for pitching their activities with their counterparts in the US to make significant forays into the public domain. I am confidant under the experienced and able leadership of these forums will emerge as rallying points for ideating futuristic programs. That perhaps could be the differentiator between our chamber and the rest. Your matured advise, keen participation and guidance are critical to give credence, stature and recognition to these think tanks.

As we cruise through a changed and exciting landscape in the Indo-US relationship, IACC is gearing up to organize the 7thIndo-US Economic Summit in Delhi, in February 2011 , the signature event of the association. We have already got the confirmation of Mr. Montek Singh Ahluwalia, Dy. Chairman, Planning Commission to inaugurate the event. Responses from delegates are encouraging. I would sincerely appeal to all to make earnest effort to make the event a grant success in terms of participation, sponsorship etc.

IACC is entering a challenging trajectory of its existence. Our well thought out and principled strategy to take a middle path in the overarching aggressive and competitive chamber space is vindicated in the midst of current complex political milieu. We have to continue with our principled stand while re-doubling our efforts to enhance our membership on the strength of our service and follow-ups. That will make us a chamber with a difference…. I seek your help in strengthening our chamber. Join us in the activities that help build your business, allow you to network and gain knowledge and business insight.

Warm regards,

Gautam Mahajan President Indo-American Chamber of Commerce

From the Desk of Secretary General

Dear Members, Wish you a Happy New Year 2011.

Last month IACC launched its new website with a goal to make ‘IACC India.com’ one of the ‘Best Collection of Shared Knowledge’ on Indo-US Business and Trade. We also came up with IACC Calendar 2011 depicting unique monuments both in India and US.

A seven member team presented Pre-Budget Memorandum presentation to Ministry of Finance in New Delhi, which was highly appreciated by them.

We look forward to your participation in our upcoming events including the 7th Indo-US Economic Summit in New Delhi, IACC-NHRD Skills Development Summit and SUITE 2011 in New York. This month’s issue covers, ‘Special Feature’ on ‘Doing Business with the State of Texas’. Hope you all are benefitting from the information provided in our newsletter.

With regards,

R.K. Chopra Secretary General Indo-American Chamber of Commerce, India

HAPPENINGS @ IACC

IACC EVENT ON: INDO-US BI-LATERAL TRADE SCENARIO TRENDS &

OPPORTUNITIES, KOLKATA

Gautam Mahajan, National President, IACC addressing the audience at ‘Indo-US Bilateral

Trade Scenario – Trends and Opportunities’ held at Hotel Taj Bengal in Kolkata

Mr. Nirupam Sen, Hon’ble Minister of Commerce and Industry, Government of West Bengal launching IACC’s new website on December 11, 2010 and flanked by Vasant Subramaniyan, Regional President, EIC and Ms. Beth Payne, Consul General, US Consulate General, Kolkata

IACC EXECUTIVE COUNCIL MEET, KOLKATA

Executive Committee Meeting in progress at Taj Bengal on December 11, 2010 in Kolkata

IACC ANNUAL FELLOWSHIP NITE, PUNE

Mr. Raghavendra Gaikaiwari, Chairman, IACC Pune Branch delivering welcome address to guests and members at Fellowship Nite on December 16, 2010

Guest of Honor, Mr. David Tyler, Chief of Consular Section, US Consulate General, Mumbai addressing guests during IACC Fellowship Nite, Pune

Chief Guest Mr. James Brunner, Country Head, State Street Bank

during IACC Felowship Nite, in Pune

IACC GUJARAT BRANCH: INTERACTIVE MEETING WITH MR. ROBERT

CARLSON, US CONSUL FOR POLITICAL & ECONOMIC AFFAIRS

Meeting with Mr. Robert Carlson, the new Chief of Economic & Political Affairs, U.S

Consulate, Mumbai in progress with the members of IACC, Gujarat Branch.

INTERNATIONAL TAXATION CONFERENCE IN MUMBAI

Secretary General, R.K. Chopra addressing the audience at ‘International Taxation Conference 2010’ at the ITC Maratha Hotel in Mumbai.

‘International Taxation Conference 2010’ in progress in Mumbai

‘International Taxation Conference 2010’ in progress in Mumbai

Forthcoming Events

Calendar of IACC Events for 2011

Date Topic City

6 January 2011 Emerging Trends in Private Equity Chennai

10 January 2011 Interactive Session with Mr. Ron Somers, President, US-India Business Council, USA

Bengaluru

12-13 January 2011 IACC’s B2B Stall (Booth) at Vibrant Gujarat Summit 2011

Gandhinagar

January 2011 Seminar on Export Procedures & Documentation for SMEs

Kochi

January 2011 Seminar on “US VISA”- Guidelines and Procedures

Vijayawada & Vizag

4 February 2011 IACC-NHRD Skills Summit on: ‘American Experiences - Indian Initiatives’

Bengaluru

11-12 February 2011 7th Indo-US Economic Summit: Cementing Economic Bonds

New Delhi

10-11 March 2011 Indo-US Habitat Forum New Delhi

18-19 May 2011 Suite 2011 (Partner State: New York State Department of Economic Development)

New York, USA

* Events confirmed as on 30 Dec 2010

In the News:

U.S. Pushes India to Lift Solar Import Restrictions

U.S. government officials and companies are pushing India to remove its restrictions on imports

of solar technology, regulations they say threaten to cut American firms out of a promising

market as India embarks on a major rollout of solar power.

On a recent trip to India, President Barack Obama noted the potential for the U.S. and India to

deepen collaboration in alternative energy. India's solar program, which aims to spend tens of

billions of dollars to subsidize the generation of 20,000 megawatts of power by 2022—one of

the most ambitious solar projects in the world—was expected to jump-start that collaboration.

Instead, the initiative has spawned what is fast becoming a trade dispute. India announced this

week that it has selected 30 companies to receive government subsidies for generating solar

power. But those firms are barred for the next several months from importing certain types of

solar panels, which convert sunlight into electricity, and will face a complete import ban starting

in April.

U.S. firms such as First Solar Inc. and SunPower Corp. are among the world's largest suppliers of

solar panels, along with Chinese companies such as Suntech Power Holdings Co. and European

firms like German's Q-Cells SE. Senior U.S. government officials have raised concerns about the

trade restrictions with their Indian counterparts and have urged India to relax them, people

familiar with the discussions say. Top Indian officials say they have no plans to relax the current

restrictions or hold off on the upcoming full ban.

A spokesman for the office of the U.S. Trade Representative said that "limiting access to high-

quality solar equipment that is available outside India is likely to only frustrate" India's plans to

boost solar power production and "discourage further investors from developing solar projects

in India."

Gauri Singh, an official in charge of the program in India's Ministry of New and Renewable

Energy, said India plans to spend $20 billion in the first few years of the program, and it is

natural that it wants the benefits to accrue at home. "You don't put in that kind of money unless

you can say it's going to bring manufacturing into the country and jobs into the country," Ms.

Singh said.

She added that under the policy, foreign companies are allowed to set up manufacturing

facilities in India through joint ventures.

Some U.S. and Indian solar-power developers say they believe the rules are aimed at protecting

two Indian companies, Moser Baer India Ltd. and Tata BP Solar India Ltd., a joint venture of Tata

Power Co. and BP Solar International Inc., which, they argue, don't produce a wide enough range

of highly efficient solar panels for power generators.

Bryan Ashley, co-chairman of a task force that represents U.S. solar companies, and chief

marketing officer of Suniva Inc., a Norcross, GA., photovoltaic-cell maker, says the import

restrictions will cut off Indian solar companies from advanced technologies. "This has been

pushed by some in the Indian industry to give themselves a monopoly," he said.

Sindoor Mittal, who is running solar projects for Welspun Energy Ltd., an Indian firm that is

planning to build plants with 500 megawatts of capacity in coming years and that was selected

to receive government subsidies, says some advanced technologies, such as so-called thin-film

solar cells, aren't available in India. "India is nowhere in the list of global manufacturing

leaders" in solar technology, she says.

China, which aims to generate 20% of its power from renewable sources by 2020, initially had

similar local manufacturing requirements in its wind power sector. They were eventually

repealed following loud complaints from Western firms, but by that time China had developed a

thriving domestic wind power industry. China has also thrown its weight behind the creation of

a domestic solar power industry, offering Chinese companies cheap credit through state-owned

banks to launch solar projects. China also recently announced subsidies for solar-equipment

purchases and solar power generation.

Rahul Khullar, secretary of India's Ministry of Commerce and Industry, accuses the U.S. of a

double standard. He says American firms didn't lash out at China with the same intensity that

they are now criticizing India and that many U.S. firms agreed to set up local manufacturing

facilities in China. "When China says there must be local content requirements, then it's not an

issue," he says. "When India says it is a requirement, then it becomes an issue."

Some people in the solar industry say the Indian import restrictions are already distorting the

market for solar panels. "The local guys are already jacking up pricing," said Inderpreet

Wadhwa, founder of Azure Power, which also will receive subsidies and plans to have 100

megawatts of solar power generation capacity by 2013.

K. Subramanya, chief executive of Tata BP Solar, says the company hasn't raised its prices. He

says the import restrictions are justified because one goal of the solar program is "to create a

whole new solar ecosystem generating employment, entrepreneurship and technical

innovations." He says Indian firms already make highly efficient products.

Even critics of the trade restrictions laud India for setting up the program to increase its now

negligible production of solar power. The goal is to help the country move away from its

reliance on coal, which fuels more than half India's 167,000 megawatts of electricity output.

Like China, India has said it will invest in cleaner energy but doesn't want to accept a cap on

carbon emissions.

Besides their concerns about the import restrictions, solar companies must also assuage lenders

and investors who fear their solar power plants won't be economically sustainable. The Indian

government initially planned to purchase solar power from generating companies for a

subsidized rate of about 40 cents per unit—a price many entrepreneurs say would be enough to

make a healthy profit.

But when about 400 companies expressed interest in getting the subsidized rate, the

government held an auction to select firms based on which offered the lowest prices. The rates

quoted by the 30 winning bidders announced Tuesday aren't public, but people involved in the

auction say the highest price was 28 cents per unit.

Punjab may get USD 1-bn deal for US-based car manufacturing

facility

A US-based automobile company may set up a car manufacturing facility in Punjab with an

expected investment of USD 1 billion, as audit and consultation firm Deloitte has made enquiries

on behalf of the firm with the state government.

"There is some American company which has made enquiries and has shown interest (for

setting up a manufacturing facility) here," State Industry Minister Manoranjan Kalia told the

reporters.

Asked about the name of the automobile company that has evinced interest, Kalia said that the

company's name has not been disclosed.

However when contacted, a senior official of State Industries Department revealed that Deloitte

has approached Punjab government on behalf of US-based automobile company to look at the

possibility of setting up a car facility here.

State Industry Secretary SS Channy said Deloitte has indicated an investment of USD 1 billion

for putting up a car facility and the company requires 750 acres of land for manufacturing

facility and 150 acres for ancillary units.

The state government has told Deloitte about industrial climate in the state and informed about

land available at reasonable rates in Malwa region, including Bathinda.

"We have also told them about the upcoming industrial park at Rajpura for the car plant," he

said while adding that the state also briefed the consultant about the highlights of state’s

industrial policy, which was launched last year.

Despite being a hub of auto parts, Punjab has not been able to attract any major player from

automobile sector which can leverage upon the presence of well established auto components

sector here.

Auto component makers, spread over several districts like Ludhiana, Hoshiarpur, supply parts

to automobile giants like Maruti, Tata Motors, Mahindra & Mahindra, to name a few.

India allays US concerns over nuclear liability US concerns about India's nuclear liability law have been addressed by New Delhi signing an

international treaty and assuring a level playing field for US companies, says a senior official.

"I think they have been," Assistant Secretary, Bureau of South and Central Asian Affair Robert

Blake said in response to question during a conference call with journalists in South Asia

Wednesday.

"I think as you saw in the Joint Statement, India announced that it has signed the Convention on

Supplementary Compensation and they indicated they intended to ratify the CSC within the

coming year and to ensure a level playing field for US companies," he said.

US companies that had been eyeing India's estimated $150 billion nuclear power pie had

baulked after the passage of the liability law holding suppliers also liable for 80 years, putting

the landmark India-US civil nuclear deal in jeopardy.

"So this will continue to be a very high priority for the United States not only because this

represents a huge commercial opportunity for our companies in India," he said.

"But also because it will help our friends in India to meet their fast-growing energy needs and to

diversify to new sources such as the civil nuclear, and increasingly also renewable energy where

we're also working together. We are moving ahead on the civil nuclear side where we were very

pleased with the outcome of the President's visit, Blake said.

The government to government parts of the civil nuclear agenda had been completed and now

US companies have begun negotiations to help provide reactors that can meet India's civil

nuclear needs.

In response to another question, the US official said their biggest priorities are to move forward

in all of the areas that President Barack Obama and Prime Minister Manmohan Singh discussed

during Obama's landmark visit there in November.

"We have important priorities in the economic sphere where we want to expand our trade and

investment between our two countries," he said. "That's already moving ahead very rapidly, but

we think there's much more that can be done in that area."

The US also wanted to expand its global partnership into new areas such as working together on

trilateral cooperation in Afghanistan, in Africa, on non-proliferation, on climate change, and in

the UN Security Council where India will pick up its two year rotation beginning January 1st of

next year, Blake said.

US bill to help 9/11 victims at our cost, says India The Indian government has slammed a US move to impose a new tax that seeks to help victims

of the 11 September terrorist attacks in New York, as the proposal will raise the costs for

technology companies in the United States.

The US Congress and the Senate on Wednesday passed the legislation that will raise $4.2-billion

to help the victims of 11 September terrorist attacks by levying a new 2- per cent excise tax on

goods and services purchased from foreign suppliers based in countries such as India and China.

To be effective from July next year, the legislation in effect seeks to make Indian firms such as

Infosys, TCS and Wipro pay for the victims of 11 September attacks. India has protested the bill,

calling it a 'retrograde step' in Indo-US trade relations.

In a letter to the US trade representative Ron Kirk, commerce and industry minister Anand

Sharma said the proposals went against the decision taken by both countries recently to reduce

trade barriers. "The passing of such a legislation would, to my mind, be a retrograde step for

greater trade engagement between India and US," Sharma wrote.

He asked Kirk to ''take personal interest and intervene urgently''. The act will be another blow

to the Indian IT companies as they would have to bear the costlier H1-B and L-1 visas for five

years from four years earlier. After protests by India, the proposed period of applicability of the

higher visas fees was reduced from 2021 till 2015.

"The Christmas miracle we've been looking for has arrived," US senators Charles Schumer and

Kirsten Gillibrand, who supported the bill, said in a joint statement. The bill was voted 206 to 60

in favour. It is expected to be signed by president Barack Obama by end of Dec 2010.

Expressing resentment, president of the National Association of Software and Services

Companies Som Mittal said that US lawmakers seem to have developed a new practice of

unfairly taxing foreign companies to pay for domestic issues. "The bill is a violation in spirit of

the joint communiqué signed by president Obama and Prime Minister Manmohan Singh,'' he

said.

Termed as James Zadroga 9/11 Health and Compensation Act of 2010, the bill is named after a

34-year-old New York police department officer who died in 2006 from a respiratory disease.

There are about 60,000 workers enrolled for treatment programmes related to 9/11 attacks.

Victims of the attacks will now be able to claim health compensation from the fund. Tech firms

said it's unfortunate to witness another protectionist bill. "It is very unfortunate that the US is

raising its work visa fees for unrelated events. It is just very unfortunate," said T V Mohandas

Pai, member of the Infosys board.

Commerce minister Anand Sharma added that the bill will send a negative signal to Indian

investors who have remained firmly committed to partnering with the American companies and

have supported jobs in the US even at the peak of the economic crisis.

The bill is also being opposed by the US Chamber of Commerce and Washington-based advocacy

group Americans for Tax Reform. US The Chamber of Commerce has companies such as

Microsoft and Google, which employ Indian software engineers on H1-B visas.

Obama passes tax cuts with Republican backing US President Barack Obama on Friday signed into law a bill extending Bush-era tax cuts and

said he hoped the bipartisan spirit that had made it possible would help restore America's faith

in Washington.

The huge tax package extends cuts for all Americans, saluting a new spirit of political

compromise as Republicans applauded and liberals seethed. The benefits range from tax cuts

for millionaires and the middle class to longer-term help for the jobless.

The most significant tax legislation in nearly a decade will avert big increases that would have

hit millions of people two weeks after New Year's Day. "We are here with some good news for

the American people this holiday season,'' Obama said.

"This is progress, and that's what they sent us here to achieve,'' Obama said as a rare bipartisan

assembly of lawmakers looked on at the White House.

The package retains the George W Bush-era tax rates for all taxpayers, including the wealthiest

Americans, a provision Obama and congressional liberals opposed. It also offers 13 months of

extended benefits to the unemployed and attempts to stimulate the economy with a social

security payroll tax cut for all workers.

To complete the deal, Obama set aside his vow to extend tax cuts only for the middle class and

lower wage earners. The measure also includes an estate tax that is more generous to the

wealthy than Obama had originally sought.

At a cost of $858 billion over two years, the deal contains provisions dear to both Democrats

and Republicans.

The bill is expected to provide at least a short-term boost to the US economy and reduce

unemployment, which remains near 10 per cent. But it will also add to a $14 trillion national

debt that some fear is nearing dangerous levels.

The legislation renews programmes that extend jobless benefits beyond the 26 weeks that

states provide. Those federal programmes had expired on 30 November. The provision will not

help workers whose long-term benefits had already expired. Dramatic as an economic and a

political accomplishment, the agreement sets the stage for Obama's new relationship with

Congress in the aftermath of a midterm election that devastated Democrats and stripped them

of control of the House.

Obama called for maintaining a spirit of cooperation, saying he is hopeful "that we might refresh

the American people's faith in the capability of their leaders to govern in challenging times.''

Republicans see change

Republicans said that their success in extending tax cuts for all was a sign of things to come.

"The American people are seeing change here in Washington; they can expect more in the New

Year,'' said McConnell, who was singled out for praise by Obama and shook hands with the

president after the signing. McConnell was directed to stand next to the presidential desk where

Obama was signing the bill, ensuring he would be prominent in the photos.

"The final product proves when we can put aside the partisanship and the political games, when

we can put aside what's good for some of us in favour of what's good for all of us, we can get a

lot done," Obama said.

Obama brokered the tax deal with Republicans over the objections of many of his fellow

Democrats, and US lawmakers passed the $858 billion package of renewed tax cuts and more

unemployment benefits near midnight on Thursday.

India seeks communication, telecom security pact with US India is exploring a communications and telecoms security pact with United States that will

enable both countries share and standardize procedures to evaluate mobile phone networks,

cooperate on encryption details and put in place a mechanism to check software before it is

used.

The government also wants the US to share its expertise in interception and monitoring of

encrypted communication, including how the issue is dealt with legally in the United States.

These proposals were discussed during the meetings of the US-India business council in Delhi

last week. India is also looking at the Communications Assistance for Law Enforcement Act

(CALEA), a wiretapping law passed in 1994, during the Presidency of Bill Clinton as per the

minutes of the US-India business council meets between representatives of both countries. ET

reviewed a copy of the minutes of the meets.

The CALEA act obliges telecommunications companies to make it possible for law enforcement

agencies to wiretap any phone conversations carried out its networks as well as making ‘Call

Detail Record’ available. It stipulates that it must not be possible for a person to detect that his

or her conversation is being monitored by the respective government agency.

According to information available on US-websites , CALEA's purpose is to enhance the ability of

law enforcement and intelligence agencies to conduct electronic surveillance by requiring that =

telecommunications carriers and manufacturers of telecommunications equipment modify and

design their equipment , facilities, and services to ensure that they have built-in surveillance

capabilities, allowing federal agencies to monitor all telephone , broadband internet, and VoIP

(internet telephony) traffic in real-time .

This development comes even as corporate leaders and politicians are up in arms against the

centre after secretly taped telephone conversations between lobbyist Nira Radia and assorted

bigwigs surfaced over the weekend. The Indian government on Tuesday promised to put in

place measures to prevent leakage of recorded conversations outside the government.

Tata group chairman Ratan Tata has already approached the Supreme Court against the leakage

of tapes involving himself and lobbyist Nira Radia.

A security pact with the US on communication technologies will enable the Indian government

to have access to encryption technologies for data services offered on the popular BlackBerry

handsets and also monitor services provided by internet giant Google, hardware maker Cisco

amongst others.

US grant for smart grid development in Bangalore The US Embassy's Minister-Counsellor for Economic, Environment, Science, and Technology

Affairs, Mr Blair Hall, conferred a grant of $4,53,350 (Rs 2.04 crore) on behalf of the United

States Trade Development Authority (USTDA) on Bangalore Electricity Supply Company Ltd

(BESCOM).

The grant will be used to conduct a feasibility study to support BESCOM's efforts to revamp its

system using the available technologies to improve quality, reliability, and efficiency, a

statement from the US Embassy said in a statement.

Through this grant, USTDA is helping to develop the requirements and specifications for a smart

grid implementation plan that will advance BESCOM's efforts to meet the challenge of growing

demand for energy from its diverse customer base.

“Ultimately, this programme will enable the integration of smart meters and automated meter

reading into BESCOM's distribution system,” the statement said.

Harvard dials Indian schools for case studies In a first, publishing arm wants 15 case studies from two management institutes.

Harvard Business Publishing (HBP) India, the wholly-owned subsidiary of Harvard Business

School Publishing Corporation, will, for the first time, take 15 case studies from two Indian B-

schools. HBP publishes management content for academics, students, and professionals.

“For the first time HBP would be accepting Indian case studies and adding them to its existing

collection of 8,500 cases. We will market these case and make them available in other parts of

the world. Many are interested to know and learn what's happening in India,” Ray Carvey,

Executive Vice President, Corporate Learning, told Business Standard.

While Carvey did not reveal which B-schools HBP is in talks with, sources said one of the B-

schools is the Bangalore-based Indian Institute of Management (IIM-B).

Confirming the development IIM Bangalore Director, Pankaj Chandra said, “This arrangement

would allow us to disseminate our case studies to global B-schools. This reflects the quality of

work happening in India.”

IIM-B would be signing an agreement with HBP in the next three months. HBP has reviewed

around eight case studies done by IIM-B faculty members so far with few more to be reviewed

shortly.

IIM-B has been working with HBP for over past six months on refining the case studies done by

its faculty members. “HBP’s editorial board suggested some changes in the case study which we

have made in a few with few more to go,” said an IIM-B faculty member.

IIM Bangalore has also signed a memorandum of understanding with Canada-based Richard

Ivey School of Business to co-brand its case studies.

HBP distributes these case studies to various B-schools it has academic relationships with. B-

schools on the other hand are paid royalty on the published cases.

Case studies are widely used across B-schools to teach students how to assess business

situations to facilitate decision making. During the course of any two-year management

programme, students may use as many as 800 case studies.

A case study is a detailed account of any company, industry, or project over a given period of

time. The content may include information ranging from company objectives, strategies,

challenges, results, legal frameworks, recommendations, etc. Case studies may be brief or

extensive, ranging from four pages to 30 pages or more.

HBP is also looking at strengthening its corporate learning programme in India.

HBP’s corporate learning programmes, Leadership Direct — virtual classroom and Harvard

Managementor — online learning, are already in India with a growing customer base.

At present India contributes around 4 per cent to HBP’s total revenue and the company sees this

growing up to 6 per cent in the next three years. Europe represents around 14-15 per cent of its

revenues.

HBP says it is looking at developing more resources in the Indian subsidiary.

“India is an important opportunity for us and we value the leadership and management

development opportunities here. We think we can have a real economic and intellectual impact

in the countries we serve,” added Carvey.

HBP has more than doubled its corporate learning client base in the last one year. “Over all our

business has grown 20 per cent and we can grow much faster but our emphasis is on quality

than quantity. At present HBP serves around 30 companies,” said Carvey.

Indian restaurants-on-wheels gaining popularity in the US Food trucks serving Indian cuisine are becoming quite popular across the United States. The

restaurants on wheels are gaining popularity across California , New York , Texas, North

Carolina, Philadelphia , and Washington DC, having interesting names like "Curry Up Now",

"Naan Stop", "India Jones", "Dosa Truck", "No Tomatoes", "The Desi Food Truck", "Bansuri

Indian Food Truck", "Copper Chimney". They offer dishes with creative titles, like "Punjabi By

Nature Burrito", "Deconstructed Samosa", "Mumbai Madness Dosa", "Roti roll-up", "Calcutta

Royal Biryani", "Slumdog Dosa", "Indian Evening Breakfast" (4-9 pm), "Lassi-pop", etc.

Rajan Zed, a prominent Indo-American statesman and Chairperson of Indo-American

Leadership Confederation, said that cuisine of India, which was characterised by sophisticated

and subtle use of various spices and herbs, had a remarkable influence on cuisines across the

world. He further said that Indian cuisine, one of the most popular cuisines across the globe,

went back to around 7,000 BC when sesame and eggplant were domesticated in Indus Valley. He

added that in ancient Sanskrit textbooks, cookery appeared to have been a highly cultivated art

and even Byzantine Emperor Justinian employed an Indian chef in his palace.

Indian American's book among NYT's 10 best of 2010 Indian American cancer specialist Siddhartha Mukherjee's first book "The Emperor of All

Maladies: A Biography of Cancer “has figured in the "The 10 Best Books of 2010” by the New

York Times. The list places Mukherjee's book at the third place among five non-fiction books.

The Times describes the book as "Mukherjee's magisterial 'biography' of the most dreaded of

modern afflictions. He excavates the deep history of the 'war' on cancer, weaving haunting tales

of his own clinical experience with sharp sketches of the sometimes heroic, sometimes

misguided scientists who have preceded him in the fight." It says the book is a history of eureka

moments and decades of despair.

The Times in a recent review states that the "powerful and ambitious first book" tells "one of the

most extraordinary stories in medicine: a history of cancer, which will kill about 600,000

Americans by the end of this year, and more than seven million people around the planet."

Mukherjee said that he would have written the book even if only one copy had been sold. The

work on the book started when Mukherjee started advanced training in cancer medicine at the

Dana-Farber Cancer Institute in Boston in the summer of 2003.

India still world’s No. 1 destination for offshore outsourcing In the study, the IT research and advisory firm identified the Top 30 countries around the world

for globally sourced activities in 2010-11, rating them on the basis of 10 criteria. Many

organisations that choose to move IT services to lower-cost countries are daunted by the task of

determining which country, or countries, would best suit their requirement. Gartner conducted

an analysis of these countries to assess their capabilities and potential as offshore services

locations, it said. India retained its position as the most successful country among global

offshore locations, as per the Gartner study. It scored well across all 10 criteria. While its cost-

competitiveness is being challenged due to the rising rupee, this is compensated by its strength

in other areas, as per Gartner's study."Clients continue to seek a portfolio of offshore countries

and with India again experiencing increasing labour costs and attrition, this is creating

opportunities for other offshore locations to target the services needs of more-mature Asian

clients," said Gartner Research Vice-President Ian Marriott.

China improved its scores for "political and economic environment" from "good" to "very good",

and "culture compatibility" from "fair" to "good". Contributing to the increased rating for China

is its rising global political and economic leverage, especially in the wake of the recent global

economic crisis. China experienced a steady positive growth rate, spurred by a USD 583.9 billion

stimulus package, in 2009. The Shanghai 2010 World Expo has helped increase cultural

awareness within China, which has helped the growth of the business in the country, according

to the study. Gartner's scores for the Philippines remain largely unchanged, although its rating

for "global and legal maturity" fell from "good" to "fair". Gartner continues to see foreign

companies being attracted to the Philippine's young, experienced labour pool specialising in

contact centres and finance and accounting (F&A) business process outsourcing (BPO),

complemented by its good language and cultural compatibility with western economies.

Microsoft bullish on India’s efforts to move services online "The Indian government has a large-scale initiative for IT services," said Microsoft Regional

Technology Office (Asia Pacific) Head Michael Thatcher. Speaking to PTI in Singapore, Thatcher

pointed out the near 12 per cent compounded aggregate growth rate for the industry between

2008 and 2013.He said, however, the Indian IT sector faces major challenges, especially in

integrating the IT system between central government operations and the autonomous state-

based operations. An equally big challenge would be to work in the diversified Indian market,

ranging from modernised institutions with IT connections and the vast majority of rural

population yet to be served by the technology, Thatcher said.

Going forward, Microsoft is working through its New Delhi office and Bangalore Research and

Development Centre on serving the Indian markets, especially basing its output on the IDC

forecast investment in the IT sector which by 2013 would be Rs 1.64 lakh crore, by 2012 Rs 44

lakh crore, by 2011 Rs 1.26 trillion and this year Rs 1.11 trillion. Microsoft is also following on

with the IDC projected investment on Cloud plus Clients which for this year would be Rs 88.2

billion, increasing to Rs 219.98 billion next year and almost doubling to Rs 406.78 billion in

2012 as well as Rs 67.78 billion in 2013."Markets will change as institutions start using 'clouds'

facilities and this would extensively reduce pressure on IT investments," he said.

Thatcher said: "Cloud will reduce new capital expenditures in IT as it can leverage existing

assets to access the new 'cloud-based' IT services."This would shift IT spending towards

operational expenditures and a move to a 'pay-per-use' model, he added. Though encrypting

data would reduce security threats but it would eliminate them, he said. Thatcher noted that it

would be important to perform regular risk assessments of an organizations IT infrastructure,

which should include an end to end evaluation of how data can be accessed and by whom.

Commenting on WikiLeaks, he said it has become an eye opener for the world to adopt tight

security measures in the IT systems. Thatcher was part of the Microsoft team that held a two-

day business strategy conference on "Accelerating Asia Pacific 2010" here.

India adds over 55 m sq ft of office space in 2010 According to real estate market overview and outlook, India added approximately 55 million sq

ft of office space in 2010 and is expected to add approximately 50 million in 2011-12.

Additionally, real estate transactions which were on the rise in 2010, post downturn in 2009,

will continue to increase in 2011 as well.

In coming year, prices will witness an upward trend in commercial and retail rentals in Central

Business Districts and prime city districts. The suburbs, however, will witness marginal

appreciation or stability in prices. In retail segment total numbers of malls in India are expected

to be more than 200, while another 80-90 are lined up to get operational in the next 2 years.

Retailers/tenants will continue to hold sway in certain oversupplied locations, pressing

developers for revenue share and related incentives. Rents on the other hand have headed

towards stability post 2009 and have witnessed an average depreciation of 30-40 per cent from

peak in second half of 2008 till mid 2010, across cities. On residential front, post demand dip in

luxury in 2008, focus shifted towards mid segment product in 2009, amidst reduced capital

values and mortgage rates, thereby generating substantial end user interest in the market.

In 2010, speculative investments and developer expectations have increased, thereby pushing

prices upwards by approximately 30-40 per cent. Many developers have shifted focus on

premium/luxury segment in 2010, though it offers only limited demand. Capital values are on

an upward trajectory in many prime locations, which might lead to slowdown in sales activity in

a short to medium term, said the company.

‘Global crisis made foreign firms look to India’ Despite poor infrastructure facilities in the country, the global economic crisis of 2008-09 was a

blessing for India as it was able attracts foreign investments.

This comes out in a FICCI survey on foreign direct investments. According to majority of the 108

foreign firms with operations in India, surveyed by the industry chamber, the priority towards

India became stronger after the economic and financial crisis.

“A widely held belief is that India is an important player in the world economy,” FICCI said after

releasing the survey. Most of the companies that have indicated their plans for expansion in

India have pointed out that capitalising on the growing domestic market was the most

important motivating factor for them to expand their Indian operations.

The global crisis has only made their outlook for India more positive and their priority for an

emerging country like India became stronger, the survey said.

Following the global economic crisis, a shift was taking place in manufacturing industry from

high cost centres in the West to low cost centres in the East. In such a scenario, almost 88 per

cent of the respondents felt that India could emerge as a significant manufacturing and export

hub for global companies. As per a latest World Bank report, the foreign direct inflows (FDI)

into developing countries, including India, was expected to recover over the next couple of

years.

Overall, FDI inflows to the developing world continued to be “overwhelmingly” concentrated in

middle-income countries, with Brazil, the Russian Federation, India, and China (BRIC) alone

absorbing about half, the report said.

The Indian economy clocked 8.9 per cent growth rate during the April-September period and

foreign institutional investors have pumped in around $39 billion (1,76,358 crore) in Indian

capital markets so far this year. Besides, India also received about $ 11 billion (`49,742 crore) of

FDI in the first half of 2010-11.

The survey, however, said the respondents felt that outreach activities of the Government

needed to be stepped up to connect foreign investors with policy consolidation and reforms

taking place in the country. They also felt the state of infrastructure facilities in the country

stood out as a “major bottleneck” in the way of smooth operations of foreign firms.

Over 85 per cent of the respondents expressed dissatisfaction on the quality and quantity of

power made available to and three-fourths of them rated the quality of roads and highways in

the country as “bad”. A very high proportion of firms pointed out “procedural delays” at the

ground level as a major problem area and highlighted the need for carrying out “reforms at the

state level”.

Obama-Singh knowledge initiative: IITs begin work 100 faculty members to be trained next year, to be scaled up to 1,000

The Indian Institutes of Technology (IITs) and central universities will shortly begin work on

sending an association of post doctoral students and faculty members to the US universities for

training from the next academic session. The training which is part of the Obama-Singh 21st

Century Knowledge Initiative, will have around 100 faculty members to be trained initially. The

numbers would be scaled up to 1000 later.

“Ministry of Human Resource Development will spend around Rs 130 crore on the entire

initiative. We would be spending around Rs 13 lakh on each faculty member. The universities

where training would take place, however, would be decided by each individual university and

IITs,” said a senior MHRD official University of Delhi (DU) Vice Chancellor, Dinesh Singh, told

Business Standard that DU would certainly take advantage of this initiative and begin work as

per MHRD’s direction.

DU is already running faculty training programmes with four universities in the UK, namely —

University of Nottingham, University of Birmingham, University of Edinburgh and King’s College

London. University of British Columbia, Canada, is also receiving faculty from DU.

“We have already sent 16 faculty members for training this year. We are targeting a number of

around 25 faculty members to be sent next year. These faculty members will be trained in Bio-

technology, Mathematics and Computers, Economics and Commerce. We have an arrangement

with the University Grants Commission where we get Rs 15 crore for training these faculty

members,” said a senior faculty member from DU.

As per data from MHRD till May 2010, Delhi University has around 51 per cent vacancy, out of

the 1,500 sanctioned posts. The total vacancy is of around 763 posts out of which 729 have

already been advertised and interviews are being scheduled.

IIT Kanpur is also drawing plans to firm up this initiative. “IIT Kanpur has tie-ups with large

number of universities. We would be focusing on specific areas which we would soon decide. As

part of the training programme, there is one component related to faculty development where

young faculty members would be trained in research. Another component is academic

leadership development where vice chancellors, directors and registrars would be sent for

leadership development training,” said Sanjay Dhande, Director, IIT Kanpur.

At the IITs, number of vacancy has increased from 877 in 2008-09 to 1,065 in 2009-10. The

vacancy in these institutions in 2007-08 was 971. There are 280 vacant posts in the eight new

IITs.

On his visit to India last month, US President Barack Obama at a joint press conference with

Prime Minister Manmohan Singh had launched the Obama-Singh 21st Century Knowledge

Initiative with funding from both sides to increase university linkages and junior faculty

development exchanges between the US and Indian universities, including greater emphasis on

community colleges.

“Building on our successful efforts to expand educational exchanges, including our Singh Obama

Knowledge Initiative, we’ll convene a summit to forge new collaborations in higher education.

And we are announcing two initiatives to deliver progress to our people,” Obama had said.

The initiative assumes significance as top 22 universities in India have 34 per cent vacancy in

teaching jobs, with 11,085 sanctioned posts and 3,777 vacant posts.

According to the MHRD the situation is so bad that the new central universities have appointed

guest faculty on contract to meet their immediate requirement. Sikkim University is the worst

hit with a staggering 84 per cent vacancy (169 vacancies out of the total posts of 201). MHRD

says all the posts have been advertised and many have been filled on contractual basis. While

Maulana Azad National Urdu University has 118 vacancies out of 248 posts; Aligarh Muslim

University, has a vacancy of 235 posts against the sanctioned strength of 1,387.

US-based Indian Shuvo Roy creates first artificial kidney US-based Indian origin researcher Shuvo Roy has created the world's first implantable artificial

kidney . What's sensational about Roy's creation is that the organ, no larger than a coffee cup,

will be able to mimic the kidney's most vital functions like filtering toxins out of the

bloodstream, regulate blood pressure and produce the all- important vitamin D.

The artificial kidney has been tested successfully on a small number of animals. Large-scale

trials on animals and humans are expected over the next five years. Once available, and if

affordable, this creation by the Roy-led team at University of California will do away with the

need for kidney dialysis.

This will be a boon for all patients with chronic kidney disease (CKD). At present in India, of the

1.5 lakh new patients who suffer from end-stage renal failure annually, only 3,500 get kidney

transplants and 6,000-10,000 undergo dialysis. The rest perish due to an acute shortage of

dialysis centres and nephrologists to man them.

CKD is rising at a rapid pace in India and the majority of those who perish are either unable to

find a suitable organ for transplantation or are unable to pay for the high dialysis costs.

According to Roy, the device has a filtration section to remove toxins from the blood, alongside a

compartment with renal cells to conduct other functions of a kidney. He believes the artificial

kidney could last for decades and require no pumps or batteries. Patients wouldn't require anti-

rejection drugs (as is required after transplants) either because there would be no exposed

natural tissues for the immune system to attack.

The University of California team is awaiting approval to conduct larger scale animal and human

trials. Already, it has successfully tested the implant in a few rats and pigs.

"The payoff to the patient community is tremendous," said Roy. "It could have a transformative

impact on their lives...With the right financial support, I think we could reach clinical trials in

five years. But it's hard to say how long after that it becomes commercially available due to the

uncertainties of the FDA and commercialization prospects.''

Indo-US Corporate News

Reliance, Qualcomm start next gen broadband trials Reliance Industries Ltd and Qualcomm Inc have started doing trials for offering broadband

services using the LTE-TDD (long-term evolution and time division duplex) technology.

While RIL conducted trials at the Reliance Corporate Park in Navi Mumbai, Qualcomm

demonstrated LTE-TDD mobility in Gurgaon. Both have partnered with Swedish equipment

maker Ericsson for conducting the trials. LTE is a next generation broadband technology that

offers speeds of 7-10 Mbps

Pan-India Spectrum

RIL has pan-India spectrum for broadband services in the 2.3 Ghz frequency band and

Qualcomm has air waves in four circles, including Delhi and Mumbai.

In Qualcomm's case, the demonstration live streamed multiple high-definition video feeds to a

mobile van in the Gurgaon area, showing a seamless hand off between base stations while

maintaining session continuity. The demonstration was carried out using USB dongles based on

Qualcomm's multimode chipset that supports both LTE and 3G.

Mr Kanwalinder Singh, President of Qualcomm India and South Asia, said, “LTE-TDD, with its

attributes of mobility and 3G interoperability, is the technology most suited for deployment in

India.

“The demonstration today is a significant step towards commercial availability of infrastructure

and chipsets that will support both 3G and LTE-TDD in 2011.”

A milestone

A spokesperson for Reliance Industries Ltd said, “This LTE trial not only demonstrated the

superiority of LTE-TDD technology but also strengthened our confidence in the timely

availability of LTE eco-system in India with Ericsson's global deployment expertise.

“This is an important milestone for Indian telecom industry in showcasing LTE performance on

a live network. We look forward to leveraging on the pilot to set up a commercial network that

will build on a globally standardised eco-system and technology that offers immense potential

for a wide spectrum of end-user offerings”.

While Qualcomm was always committed to LTE, the move from RIL could dampen the future

prospects of WiMax technology in India. Backers of WiMax technology had pitched it as a rival

to LTE-TDD and had hoped to make inroads into the Indian broadband space.

PharmaSecure a US company to help check authenticity of drugs PharmaSecure in talks with Indian firms to offer SMS-based services.

There is good news for consumers worried about the quality of drugs they buy from their

neighbourhood medical store. PharmaSecure, a US based company, is in talks with Indian drug

majors to implement a new, cost-effective, SMS-based technology that would allow consumers

to check the authenticity of the drug — in a strip, tablet or a bottle — by directly getting in touch

with the manufacturer. The company has already bagged a major deal from Mumbai-based

Unichem Laboratories to implement the technology for 70 million tablets of two of its flagship

products. Unichem will soon extend it to more of its products.

“This technology can be implemented across multiple products and at different plants without

any disruption. This will help strengthen our brand and differentiate our products from other

brands”, said Prakash Mody, chairman and managing director of Unichem Laboratories.

“We are in discussions with most leading generic drug makers in the country and they are

excited about the technology which offers direct, cheap and effective telecom-based interaction

with the consumer. Four to five pilot projects are underway with a few drug majors and we

hope to sign some major deals in the near future”, Nathan J Sigworth, chief executive of

PharmaSecure told Business Standard. He termed it premature to reveal the names of the drug

companies.

Currently, there’s a dearth of effective anti-counterfeiting measures and mechanisms to track

authenticity of the products sold in the market. Most existing technologies like holograms

(which can be copied), finger printing and radio frequency identification (RFID) used for anti-

counterfeiting of drugs are much costlier, which make them non viable for cheap generic

manufacturers, said Kishore Kar, director, PharmaSecure.

With over 25,000 brands, the Indian drug market is estimated to have an annual turnover of Rs

45,000 crore. Though the government claims the spurious drug market to be less than one per

cent of the entire industry, a section of experts estimate that about 30 per cent of the drugs sold

in the country are either spurious, adulterated or lack the potency claimed by the manufacturer.

Under the technology, each drug strip or bottle will have a unique identification code and a

phone number. If the customer sends an SMS mentioning the identification code, he will receive

feedback from the company within a minute on whether the product is genuine or not.

The technology will cost only a few paise per strip and was affordable for manufacturers, said

Sigworth. The patent for the technology was pending and testing was underway in overseas

markets too. India would be the first country to use this technology on a large scale, he added.

US coffee major Starbucks in talks with Indian corporate According to reports, iconic US coffee retailer Starbucks is engaged in talks with a number of

domestic corporates having interests in retail and real estates, a move that indicates its

renewed interest in the Indian market. According to sources, the Indian corporates include DB

Realty and Jubilant Group.

A report in the Times of India, which quoted two unnamed separate sources close to the

development said, Starbucks was discussing India plans with potential partners, including Sunil

Mittal's Bharti.

They added that the negotiations were still in the early stages and it would be incorrect to

suggest that the US company had identified our shortlisted any firms, he added.

Quoting another unnamed source familiar with the development the report said, Starbucks had

made a fresh approach to Indian business groups in the past two months.

Analysts say it is significant that the reports of the company's renewed interest in Indian space

come following its CEO Howard Schultz, at its biennial investor conference in New York on 1

December, saying that the retailer was in discussions with potential partners to open stores in

India.

At the conference, the company unveiled a new business plan that would focus on major

acquisition and expansion activities. According to industry sources, the US Company was willing

to consider franchise arrangements.

Cisco overhauls India partner strategy Global IT major, Cisco has effected several changes in its partner strategy to be better placed to

leverage the new opportunities, starting from this fiscal. Besides, Cisco has also revamped its

partners model to align it with the company’s renewed business objectives, a company press

release said.

"We believe that this will allow us to drive our identified architecture adoption among our

channel partners and increase penetration across sectors and markets alike," Cisco’s Vice

President and Head (Partner Organisation) India & SAARC, B Raghavendran, said.

Historically, Cisco’s global strategy has been focused on the networking domain, and the partner

programme was designed to cater to this approach, he said.

"However, over the last four quarters, Cisco has evolved its strategies and enhanced its area of

focus around the three architectures collaboration, virtualisation and borderless networks and

market adjacencies which are expected to be the growth drivers in the times ahead,"

Raghavendran said. In line with this, the channel organisation and strategic alliance

organization have been merged into a single, cohesive unit and rechristened as Partner

Organisation, the release said.

IBM keen to expand into tier-3 cities IBM, which is present in 22 cities (primarily tier-1 and a few tier-2), is now looking to expand

into tier-3 cities as well, as it seeks to shore up its mid-market business in the country.

The target is to expand its reach to 45 cities by 2013 — the new offices will come up mainly in

smaller cities such as Ranchi, Raipur, Guwahati, Vizag, Allahabad, Indore, Udaipur, Nagpur, and

Jharsuguda.

Small and medium enterprises (SME) account for a “reasonably large size” of IBM's business in

India — the contribution to IBM's business from this segment is in the high double-digit, says

Mr Nipun Mehrotra, Vice-President – General Business, Routes and Geographic Expansion, IBM

India/SA. “Not only is the market large but the dynamism of the mid-market has prompted us to

focus our attention on it,” he says.

IBM defines a mid-market client as a company with less than 1,000 employees with medium-

sized infrastructure (running 15-30 servers). These companies do no have a data centre or a

back-up recovery process in place. Their network and security systems are patchy, explains Mr

Mehrotra.

SMB focus

IBM has been catering to the SMB market for four years now (some of its clients are Oswal

Woollen Mills, Pathways World School and Travel XP) and is now keen to take it to the next

level.

“We want to physically expand our capabilities and be present across geographies and cities,”

says Mr Mehrotra. “The number of regular clients in the SMB space runs into a few thousands.

We would like to double that footprint in the next couple of years.”

IBM is looking to expand into small cities such as Ranchi, Guwahati, Jamshedpur, Udaipur, and

even as far as Jharsuguda. The offices here will take care of front-end interface (sales,

marketing), business development, maintenance and services. In July, IBM opened ‘virtual

branch offices' in tier 2 and 3 cities such as Surat, Coimbatore and Chandigarh, which is the first

step towards setting up full-fledged brick and mortar offices eventually. Hiring and planning for

these offices is already on.

SMB biz model

Likening the SMB business model to the sachet business that revolutionised the FMCG category,

Mr Mehrotra says IBM has packaged its offerings in smaller modules — a bit of infrastructure

monitoring (for instance, an SMS alert when there is a break-down in the server), a remote

fixing module, or help-desk services, and back-up recovery. These are standardised modules

which are priced as low as $0.5 million.

Salesforce.com plans expansion, eyes banking, insurance Enterprise cloud computing company Salesforce.com is planning to focus on banking, financial

services and insurance (BFSI) segment in India to expand its offerings in cloud computing.

India, along with Australia was one of the key focus markets for the NYSE-listed company, its

Senior Vice-President (Corporate Sales – Asia Pacific), Mr Lee Thompson, told Business Line on

the sidelines of annual cloud computing event, Dreamforce 2010 here.

The other priority areas for Salesforce.com after BFSI were retail and telecom companies and

small and medium enterprises, he added.

MARKET

“There has been noticeable change in Indian market as far as cloud computing is concerned.

Enterprises now moved from enquiries to asking how do we do cloud. We see huge business

opportunity for us in cloud database and chatter free, which were launched during the

Dreamforce 2010,” Mr Thompson said.

Salesforce.com, which provides cloud based offering in sales and service segments, sees more

opportunity in service cloud segment.

“The operations of Facebook and Twitter are huge in India. With database.com and next

generation cloud (Cloud 2), Salesforce.com now opens doors to all these developments in

India,'' Mr Thompson said.

The newly-launched Chatter Free would be very ‘useful' for company's customers (such as Bajaj

Finance) to link-up their employees, he said.

“With the adaptation of Chatter Free, there can be a 40 per cent decrease in number of official e-

mails in a normal organisation. This, along with other features, will increase productivity,” he

claimed.

ACQUISITION

Earlier, while addressing the delegates of Dreamforce 2010, the Salesforce Chief Executive

Officer, Mr Marc Benioff, said the company had entered into a definitive agreement to acquire

Heroku, a Ruby application platform for $212-million cash-deal as it would power many cloud

applications.

The acquisition, which would bring a team of 25 people on board Salesforce.com, will be

completed by January 2011.

India’s Investments in USA

India's Tata plans hiring spree in Detroit Tata Technologies, a subsidiary of India's Tata Motors, has said it plans to hire 400 engineers at

its technical centre near Detroit to help with projects for car makers in North America.

Dan Saad, Tata Technologies director of communications in North America, said yesterday Tata

is looking candidates with engineering, design and experience in product lifecycle.

"The 400 positions are currently open in our HR database to be filled by January 3 that are a

result of new automotive programme work our engineering and our PLM/Consulting groups

have won over the past months," Saad said.

"The positions are at automotive client sites - about 80 per cent in metro Detroit, about 20 per

cent elsewhere in the US We have about 500 employees in the US now, and about 350" are

assigned to the company's Novi, Michigan, he said.

Tata follows on the news that General Motors Corp is looking to hire 1,000 engineers over the

next two years and Chrysler has added 1,000 employees at its technical centre in Auburn Hills

and is planning to hire additional personnel to handle engineering projects and to help the

company prepare for an initial public offering of stock in the second half of 2011.

Tata Technologies, founded in 1989, is a global leader in Engineering Services Outsourcing,

Product Development, IT services to the global manufacturing industry.

Headquartered in Singapore, with regional headquarters offices in the United States in Novi,

Pune, India and Luxton in the United Kingdom, Tata is one of the world's fastest-growing

engineering services companies.

The company is part of the India-based Tata Group an international business group based in

India that reported 2008-09 revenues of 70 billion dollars, of which 61 per cent is from business

outside India.

Tata Group employs more than 350,000 people worldwide.

HCL Tech bags US pharma co deal IT services company HCL Technologies Ltd said it has signed a multi-year IT infrastructure

management contract with pharmaceutical company Purdue Pharma L.P. “The scope of this

engagement covers management of two data centres and all remote locations of the client in the

US,” HCL said in a statement. HCL Technologies will also be responsible for transforming

Purdue's IT environment by implementing its processes as per ITIL V3 and MTaaS platform,

which is HCL's hosted platform for enterprise tools.

HCL Technologies will also be install ‘MyDashboard', the real time reporting tool for visibility of

different layers of the IT infrastructure for management reporting at Purdue Pharma. The

Dashboard will provide an integrated view of the entire IT infrastructure and ensure a powerful

trend analysis, the statement added.

Lincoln Pharma ties up with US based Human Biosciences Inc Ahmedabad based Lincoln Pharmaceuticals Ltd. (LPL), has tied up with US based Human

Biosciences Inc (HBI) for exclusive marketing and distribution of two of HBI's wound care

management products in India, Medifil and Skin Temp that enjoy a 22 per cent market share in

its category in India. The company can set up a manufacturing unit in the future to increase

production of these products.

Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical

Ltd. said, “Our mission at Lincoln Pharmaceuticals is to provide customers with healthcare

products of high quality at an affordable price. We are planning to set up a manufacturing unit

in India to increase production and expand our reach so that more people can avail the benefits

of these products.”

Collagen products have reconstructive properties and are meant for wound care management.

Medifil and Skin Temp, considered a helps to stop the bleeding immediately by providing faster

and better wound healing.

In addition, it has better aesthetic value as it heals without leaving any scar formation. Medifil

and Skin Temp are specifically useful in repairing wounds during plastic and burns surgery,

general surgery, orthopaedic surgery and gynaecological surgery and is particularly beneficial

for diabetic amputations due to its faster healing properties. Medifil is available in an

absorbable Collagen based granule and Skin Temp in an absorbable Collagen based patch.

Lincoln Pharmaceuticals is into manufacturing and marketing therapeutic products under

WHO-GMP guidelines.

Opto Circuits buys 76% of US firm Bangalore-based healthcare equipment company Opto Circuits (India) Ltd has acquired around

76 per cent of the outstanding common shares of US-based Cardiac Science Corporation as part

of its acquisition plans. Earlier, the company had agreed to acquire Cardiac Science Corporation

for $64 million.

The company also plans to exercise its top-up option under the terms of the merger agreement,

which is expected to occur in the next few days, the company release said.

Following the merger, Cardiac Science will become a wholly-owned subsidiary of Opto Circuits.

Cardiac Science specialises in many healthcare equipment in cardiology space including electro-

cardiograph devices, cardiac stress treadmills and systems, vital sign monitors among others.

As per the merger deal with Cardiac Science, Opto Circuits has agreed to acquire all the

outstanding shares of Cardiac Science for $2.30 per share.

The company has recently acquired two companies to further its business growth both in

domestic and international market. While the company acquired the US-based Unetixs Vascular

Inc at $9.7 million in July, it acquired a domestic company, NS Remedies for $1.50 million in

April of this year. Unetixs’ products like vascular diagnostic systems and accessories will be

marketed in countries like Europe and West Asia among others.

As per analysts, Unetixs’ that holds 14 patents worldwide in peripheral arterial disease (PAD)

space, will help Opto to grab a substantial market share in near future.

Similarly, NS Remedies had been acquired by Opto in April this year at an investment of $1.50

million and is expected to provide a cost saving of 20 per cent in stent manufacturing to the

company. The company, presently, sources stent, a critical component of cardiac surgery, from

its Germany based Eurocor Gmbh facility. Opto specialises in range of products like pulse

oximeters, pulse oximeter sensors, fluid warmers, cholesterol monitors and stents.

Religare buys US PE co Landmark for Rs 770 crore Religare Enterprises is buying Landmark Partners, a US-based private equity and real estate

investment firm with assets under management worth $8.5 billion. The New Delhi-based

financial services group will buy about 55% in Landmark for roughly $170 million, or Rs 770

crore, valuing the American asset manager at over 3.6% of its total assets.

Shachindra Nath, group chief executive officer of Religare Enterprises, confirmed the

development, but declined to comment on the deal size. “This acquisition is part of our inorganic

growth strategy. We have a chest of $1 billion and will use it to buy asset managers worldwide

over the next couple of years,” he said. Landmark executives could not be reached for comment.

Earlier this year, Religare bought Northgare Capital, a US-based fund-of-funds manager, but did

not disclose the size of the deal.

The company, majority owned by brothers Malvinder and Shivinder Singh, who sold their stake

in generic drugs maker Ranbaxy Laboratories to Japan’s Daiichi Sankyo in 2008 for roughly $2

billion, has been in talks to buy asset managers in the US in the last two years. It was one of the

top contenders for the fund management unit of US-based troubled insurance giant AIG last

year. Religare was rumoured to be in talks with a couple of domestic mutual funds to buy out

their business.

The Landmark acquisition will catapult Religare’s assets under management, including the

money managed by Northgate and its Indian mutual fund, to almost $15 billion, Nath said.

Reliance Mutual Fund , India’s largest asset management company, had assets worth Rs 1.07

lakh crore or $23 billion on September 30. Domestic mutual fund industry officials, on

condition of anonymity, said the deal is not cheap by valuation standards in developed markets.

“The acquisition is certainly not cheap. Asset management companies in the US and Europe

normally would not get more than 2-3% of their assets,” said a top executive of a bank-owned

mutual fund. “However, given that there is lot of cheap capital available, Religare can use its

expertise in Indian markets to channel it well,” he said.

Asset management companies in emerging markets, including India, are usually valued at 4-6%

of their assets because of their growth potential. Recently, L&T Finance, the financial services

arm of engineering major Larsen and Toubro, bought DBS Cholamandalam Asset Management

for Rs 45 crore, valuing DBS at 1.55% of its total assets under management.

DRDO to license its explosive detection technology to US firm The Defence Research and Development Organisation (DRDO) is looking at licensing a new

explosive detection kit (EDK) developed on its patented technology to a US firm.

The American firm is reported to have shown keen interest in the EDK developed by the DRDO

and an agreement on technology transfer is likely to be signed soon between the two sides, an

official release said today.

The EDK, developed by the DRDO's High Energy Materials Research Laboratory (HEMRL) in

Pune, comes packed in a box the size of a vanity bag.

The box, which contains four reagents, is capable of detecting explosives even in trace

quantities, the release said.

The EDK can be used to identify a range of explosives such as PETN, black powder, dynamite,

NC, NG, CE, inorganic nitrates, TNT, RDX and HMX-based plastic explosives. The EDK kit can be

easily carried to the spot and is found useful both before and after a blast.

When the explosive substance is mixed with the different chemical reagents given in the kit, the

drop turns into specific colour as given out in the instruction leaflet. Verification normally is

carried out using the Raman spectrometric test.

Costing about Rs5,000 apiece, the EDK is being commercially manufactured by Noida-based

Vantage Integrated Security Solutions Pvt Ltd under a technology transfer pact with the DRDO.

The EDK is being widely used in India by the bomb detection and disposal squads of the Army,

paramilitary and state police forces in Jammu and Kashmir, Assam, Maharashtra, Gujarat,

Andhra Pradesh and Tamil Nadu, the release said.

The US firm is expected to soon enter into a MoU with the DRDO, which has patented the EDK.

"The Americans have their own EDK kits but the foreign technology has certain drawbacks, for

example they lack confirmatory test," said Reny Roy, a scientist at the HEMRL. "Since they use a

test paper instead of liquid drops, that's another disadvantage as the test paper is not long

lasting and gets torn," she added.

Scientists at HEMRL have now developed an aerosol-based EDK kit that costs around the same

price as the conventional EDK kit and has the advantage of being more portable and convenient.

They have also developed a `use-and-throw' kit with reagents packed in the way of medicinal

injection bottles, which costs around Rs1,800 each.

In September scientists at HEMRL said they were developing the world's most powerful

explosive, CL-20 that would help to reduce the weight and size of the warhead substantially

while packing more punch

Maini Materials inks alliance with NHMG, USA Maini Materials Movement, the Bengaluru-based Maini Group Company, has inked a strategic

agreement with the world’s third largest Forklift and materials handling equipment

manufacturer, Nacco Material Handling Group (NHMG), USA. The partnership between the two

companies will include the manufacture of specific Yale products within India, besides

representing the Yale products made at overseas factories. Maini Materials will be exclusively

responsible for the sales, service, parts and customer support for Yale’s extensive range of

products in India. The link with NHMG allows Maini to expand its portfolio and to manufacture

of European designed equipment in India.

NHMG will provide product design and engineering expertise to enable the Maini Group to build

certain key Yale products in India. The soon to be introduced Yale-Maini range comprises an

entire range of warehouse equipment and forklift trucks. Maini Materials Movement will in turn

utilise their knowledge of the local market, and solution expertise to introduce the new product

range to customers and end-users.

“The manufacture of Yale products in India will benefit customers significantly, with the

availability of European design products at competitive price points” said Sandeep Kumar

Maini, Chairman, Maini Group. "The markets will experience new technologies which provide

reliability, safety & significantly enhanced efficiencies,” he added.

Maini has existing relationships with customers in the automotive, FMCG, pharmaceutical and

logistics sectors and employs more than 150 service engineers throughout the country,

operating from six main branches. With the wide choice of models, configurations and often

unique product specifications in the Yale-Maini product range Maini will be able to respond to

the demands of the growing Indian markets in all segments of the materials handling industry.

The relationship between the two companies comes at a time when the Indian materials

handling market is developing rapidly with increased demand for more complex equipment.

“The current scenario provides the ideal trading environment for Yale and Maini Materials

Movement to offer reliable and responsive materials handling equipment in India.” said Ralf

Mock, Managing Director EMEA at Yale’s parent company Nacco Materials Handling Limited

(NMHG).

"NMHG will also be providing product design and engineering expertise to enable the Maini

Group to build certain key Yale products in India. The first of these products is the successful

three wheel RCF electric counterbalance fork-lift truck which is scheduled to roll off the

Banguluru factory production line at the end of this fiscal year, March 2011.”

This expertise will be provided through the company’s engineering centre in Pune which

currently employs 45 people focused on product design, special purpose application design

(SPED) and FEA analysis. In addition to its engineering capabilities in India, NMHG also sources

components from India for its plants in the United States of America and in Europe.

Demonstrating its commitment to the Indian market, MNHG has implemented local technology

licensing agreements with key partners to ensure customers in India can be supplied with

locally sourced products and parts when required. The partnership with Maini Materials

Movement Pvt Ltd also re-establishes the Yale brand in the Indian market after an absence of

almost 20 years.

“Our entry into the fast growing Forklift and Reach Truck Market with a global leader, Yale will

be a game changer in the Indian market.” said S A Mohan, CEO of Maini Materials Movement Pvt.

Ltd.

L&T Infotech in strategic partnership with IBM L&T Infotech announced a strategic partnership with IBM in the Business Process Management

(BPM) space, using IBM's WebSphere Lombardi Suite of products. This partnership will be let

L&T Infotech and IBM to offer BPM solutions such as business process modelling,

implementation, integration solutions and services to its clientele. Further, L&T Infotech is

launching customisable BPM solutions in the areas of Banking & Financial Services like

corporate loans, know your customer, credit card issuance, accounts payable and insurance

(claims processing, underwriter workflow) by leveraging Lombardi.

Commenting on the partnership, Abhay Chitnis, VP and head-technology, L&T Infotech, said:

“With rapid evolution of IT in recent years, enterprise IT landscape has become increasingly

complex. All organisations are striving to improve agility and scalability of the intra and inter-

enterprise eco-systems. Our IBM partnership is in line with our constant endeavour to provide

added value to our clients. The leadership position enjoyed by IBM Lombardi in the BPM space

coupled with L&T Infotech’s domain knowledge and modelling accelerators, provides a unique

value proposition to our clients, especially in banking and financial services sector.”

Pradeep Nair, director - Software Group - IBM India/South Asia, added:, "BPM software and

services from IBM help organisations optimise business performance by discovering,

documenting, automating, and continuously improving business processes to increase efficiency

and reduce costs. We know that the combination of IBM Lombardi’s class-leading BPM

technology and L&T Infotech’s depth of industry expertise will deliver superior value and most

importantly, near-term return on investment, to our clients.”

Currently, L&T Infotech offers BPM services in several verticals such as banking and financial

services, energy and petrochemicals, product engineering services (Telecom), insurance and

manufacturing. L&T Infotech’s banking and financial services business unit focuses on providing

business solutions to leading banks and financial institutions across the globe. Leveraging IBM

Lombardi, L&T Infotech's banking and financial services unit has also developed JukeBox+, a

domain-centric solution to allow clients to jumpstart their business processes integration and

automation activity.

Nichrome ties up with Prodo-Pak Pune based VFFS machines manufacturer Nichrome India Ltd has tied up with US based Prodo-

Pak Corporation to manufacture and sell high speed multi lane sachet machines. Under the

technology licensing arrangement, Prodo-Pak Corporation will support Nichrome in the

technology transfer and up gradation. These machines will be ingeniously manufactured at

Nichrome's Shirval plant near Pune for both domestic and international markets.

John Mueller – CEO, Prodo-Pak Corporation said "With Nichrome’s proven track record in

packaging machinery, we are sure that it is the right partner for business growth in India. This

Collaboration will lead to serving both the domestic and international markets with preeminent

machines."

With this technology, the company will be able to offer machines with up to 15 lanes. The Rate

of production for applications like liquid and gel can go up to 800 sachets per min and for

applications like tablets and capsules it can go up to 2000 sachets per min. The Machines will be

manufactured in two series: RV Series - Continuous Motion Machines and PV Series-

Intermittent Motion Machines.

Nichrome plans to promote this technology for segments like cosmetics and personal care,

pharmaceuticals and nutraceuticals, capsules and tablets, and swabs and tissues besides

conventional applications like powders and liquid. The main focus initially being on cosmetics

and personal care as the company plans to introduce contour pouches for attractive packaging.

"Nichrome is bullish about the collaboration with Prodo-Pak Corporation. This venture would

open new market segments to cater to, especially the cosmetic, personal care and the OTC

product Industry which was in need of such a versatile, high output, attractive packaging

technology. Every Nichrome product represents the legacy of leadership through a series of

firsts. We will try to make these machines cost effective with this collaboration," said Harish

Joshi, MD, Nichrome India Ltd.

Mahindra Satyam in tie-up with Stratus Tech Mahindra Satyam entered into a global partnership with US-based Stratus Technologies to

jointly provide consulting, products and services in uptime assurance management. Stratus

provides technology solutions to reduce downtime or the outage of critical applications. It has

National Stock Exchange of India, New York Stock Exchange, Shanghai Stock Exchange and

Amex as its customers.

“What this (uptime assurance) means is that there are several critical applications in every

industry the outage of which will result in business loss. For example, in a stock exchange if

systems are down for one hour then it's a loss of an hour's trading. Stratus provides technology

solutions which are contemporary and go beyond the old fault tolerant systems,” said CS Nair,

Mahindra Satyam vice president and global alliances manager. Satyam plans to leverage its

position in the enterprise application software space, and target customers who are looking to

modernise their ERP environments, said Nair.

Natco Pharma signs agreement with US firm for cancer drug Natco Pharma entered into an agreement with US-based Watson Pharmaceuticals to develop

and market generic lenalidomide tablets, used in treating cancer, in the American market.

"Natco Pharma and Watson Pharmaceuticals confirmed an exclusive US development and

license agreement to develop and commercialise lenalidomide", the company said in a filing to

the Bombay Stock Exchange (BSE).

Under the agreement, both the companies would share net profit on sales. Also, the US firm

would be responsible for regulatory, legal and commercial expenses related to lenalidomide

tablets.

The drug is indicated in treatment of multiple myeloma, it said. The Hyderabad-based firm has

filed an abbreviated new drug application (ANDA) with US health regulator, seeking its approval

to market Lenalidomide in the strengths of 5 mg, 10 mg, 15 mg and 25 mg, it added.

Natco's lenalidomide tablets are generic versions of Revlimid tablets, the patent of which is with

Celgene, it said.

Revlimid reported global sale of nearly $2.3 billion last year, it added. The company said it

believes it may be the first to file ANDA for Lenalidomide in the strengths of 5 mg, 10 mg, 15 mg

and 25 mg and if approved will entail it to 180 days of market exclusivity.

Zylog scouts for acquisitions in US Zylog Systems Ltd, a Chennai-based IT solutions company, is scouting for acquisitions in the

United States of around $100 million (around Rs 450 crore) to strengthen its presence in the

region.

S P Srihari, chief financial officer, Zylog Systems Ltd, said that around eight companies were on

the company's radar. These companies are operating in the high-margin segments like Banking,

Financial Services and Insurance (BFSI), pharma and healthcare and SAP services. The company

would finalise the blueprint by third quarter of the current fiscal, he said.

“At present, 42 per cent of our revenue is from the US, but we want to strengthen our operations

in certain practices where we still need to fill need gaps,” he said. The company is planning to

appoint an auditing firm with which it has carried out many of its acquisition processes, for

validation and due diligence.

It may be noted that the company has received approval from its shareholders to raise around

Rs 400 crore through various options including Qualified Institutions Placement (QIP), Foreign

Currency Convertible Bonds (FCCB), American Depository Receipts (ADRs) and Global

Depository Receipts (GDRs) in October.

The fund is mainly to serve the purpose of acquisition and the company will use the appropriate

means to raise the money at the time of requirement, said P Srikanth, director, Zylog Systems. It

has identified a high potential for pharma and healthcare, SAP and ERP solutions in US and is

looking to some of the areas in future, he said.

The company, which acquired the Canada-based staffing firm Brainhunter in February, is

currently diversifying its activities to other areas of operations. The plan is to develop the firm

acquired with Canadian Dollar 35 million (around Rs 150 crore) to operate in other services

offered by Zylog in other regions.

At the time of acquisition, Brainhunter was engaged in consulting and engineering services in

Canada with major presence in government, telecom, BFSI, and oil and pipeline verticals. It is

expected to provide Rs 900 crore revenue out of the total Rs 1,850 crore expected revenue this

year, said Srihari.

ISB inks pact with Tufts University The Indian School of Business (ISB) signed a Memorandum of Understanding (MoU) with The

Fletcher School of Law & Diplomacy, Tufts University, US, to support the setting up of the Bharti

Institute of Public Policy at the upcoming ISB campus in Mohali, Punjab.

The MoU was signed by Ajit Rangnekar, Dean, ISB and Stephen W. Bosworth, Dean, The Fletcher

School in the presence of Mr Kapil Sibal, Union Minister of Human Resource Development, Mr

Rakesh Bharti Mittal – Vice-Chairman & MD, Bharti Enterprises, and Ms Savita Mahajan, Chief

Executive, Mohali Campus and Deputy Dean, ISB.

Areas of collaboration

The collaboration between the two schools is envisaged to cover the following areas: Faculty

exchange opportunities, curriculum development, research and teaching support in areas such

as trade policy, energy & natural resource policy, environment and security policy;

Joint research projects, and development of educational material relevant to India.

The foundation stone for the ISB campus in Mohali was laid on August 11, 2010. The first

academic session for the Post-Graduate Programme in Management in Mohali is scheduled to

commence in April 2012, with an initial intake of 210 students, according to a press release

from the ISB.

US Investments in India

US-based PE fund may invest 400 cr in Mantri Developers Morgan Stanley-backed Mantri Developers Pvt Ltd is set to raise between Rs 350-400 crore

from Xander Group Plc, a private equity fund headquartered in the US, for two large mixed-use

developments in Chennai and Bangalore, said a source directly involved with the development.

The transaction will be executed through two separate special purpose vehicles, in which

Xander will hold 49% stake each, added this source who did not wish to be named as talks were

private. Bangalore-headquartered Mantri Developers was one of the first real estate developers

to attract foreign direct investment in the sector when it raised $68 million from Morgan

Stanley at the entity in 2006.

This will be one of the largest PE transactions in the real estate sector in recent times. In

another sizable deal, TPG Capital is in the midst of due diligence for investing around $100

million, or over Rs 450 crore, in Shriram Properties, a part of the diversified South-based

Shriram Group.

The private equity group's Xander Real Estate Partners, an India focused fund, invests in large

township developments, mixed use city center projects, hotels and resorts and public-private

joint initiatives. In India, Xander struck a joint venture deal with Tatas for $1 billion retail real

estate fund, and also works with Swiss hospitality major Swissotel to operate hotels.

Tata Group's retail arm Trent Ltd has a right of first refusal for anchor tenancy on retail assets

financed by Xander Group, which was co-founded by Siddarth Yog and Arthur Segel in 2005.

Xander could be investing in Mantri Developers' upcoming townships at Varthur near Bangalore

and on the Old Mahabalipuram Road stretch (OMR) stretch in Chennai.

McDonalds to invest Rs 350 crore over next 4 yrs in Gujarat Fastfood chain McDonalds today said it will invest Rs 350 crore over next fours year in Gujarat

to increase the count from the existing 10 quick service restaurants (QSR) here to over 40 by

2014. "We are looking to invest Rs 350 crore in Gujarat over next four years, which includes

indirect investment by our few partners to open around 30 QSR's by 2014," McDonalds Director

Alliances and Corporate Affairs Nishit Pandey told reporters.

US-based food chain is expected to sign a Memorandum of Understanding (MoU) with the

Gujarat Government, in the forthcoming Vibrant Gujarat Summit-2011 beginning January 12, for

the same. McDonalds has pitched in to Gujarat government's proposal to open QSR's along the

highways in the state beginning from Vapi. The company has shortlisted around 30 locations in

Gujarat off the highways.

"We have a chain of 24 QSR's along the highways in states of Karnataka, Tamil Nadu and

Maharashtra, and they are doing well. Gujarat is next state on our agenda," Pandey said. "Sales

from state of Gujarat contributes nearly 10 per cent of the total revenue's in India," Pandey said.

The company has presence in Ahmedabad, Surat, Vadodara and Vapi. It plans to open an outlet

in Rajkot district soon.

McDonalds, sources 250 tonnes of Potatoes monthly from Deesa in Banaskantha district of

Gujarat, which accounts for 90 per cent of its complete requirement for the commodity. "We

procure sesame from Rajkot district for about Rs 10 crores. We are looking to enhance

procurement by four folds over next few years," Pandey said.

KFC sets up 100th store in Bangalore KFC, the chicken restaurant chain, has expanded its base in India with the opening of its 100th

restaurant at Cunningham Road in Bangalore.

The new outlet is spread across 2700 square feet and has 96 covers. ''With this outlet we aim to

make the brand accessible to a larger consumer base and serve the ever growing demand for

finger licking' good KFC food,'' said Unnat Varma, director, marketing, KFC India.

KFC's product range includes international signature products like the zinger burger, hot and

crispy chicken, original recipe chicken, popcorn chicken and chicken bucket. The company had

launched the veg zinger burger and the Krushers range of chilled beverages recently.

Actis, GIC to invest Rs 698 cr in GVK Energy GVK Energy signed agreements for a second round of private equity (PE) investment worth Rs

698 crore from US-based Actis and an affiliate of the Government of Singapore Investment

Corporation (GIC). Both would invest Rs 349 crore each in GVK Energy, a wholly owned

subsidiary of Hyderabad-based GVK Power and Infrastructure (GVKPIL).

For Actis, this is the second significant investment in the infrastructure sector this year. It

invested $77.5 million (Rs 351 crore) in TRIL Roads, a subsidiary of Tata Realty and

Infrastructure.

After these developments, the overall PE investment in GVK Energy is Rs 1,498 crore, with

dilution of 24.97 per cent. The deal valued the company which has operational capacity of 909

Mw, with 4,200 Mw more under various stages of development, at around Rs 6,000 crore.

“Actis and GIC’s affiliate will bring in Rs 218 crore each as the first tranche of investment,” the

company said.

In May 2010, GVKPIL, an infrastructure company with interests in airports, roads, special

economic zones and power, decided to form separate holding companies and categorise

projects under separate divisions such as energy, airports etc, to operate its various assets. The

same month, the company started talks with PE funds, for a strategic investment.

“GVK developed India’s first independent power project. Today, we are poised to significantly

grow our energy business to meet the growing demand in India. While this strategic transaction

will enable GVK Energy to deploy further capital, we believe both Actis and GIC will prove ideal

partners in the next phase of the company’s growth,” said G V Krishna Reddy, Chairman,

GVKPIL.

Eton Park to invest $125 million in JSW Infra U.S.-based Eton Park has agreed to invest $125 million in JSW Infrastructure, a part of the Sajjan

Jindal-controlled group with interests in steel and power, Chairman N.K. Jain said.

JSW Infrastructure, part of the diversified JSW Group, said it will raise up to $125 million by

selling a 10% stake to hedge fund Eton Park Capital to expand its ports business and pare debt.

Eton Park manages about $13 billion and has offices in New York, London and Hong Kong and

JM Financial was the sole financial advisor to the deal, it said in a statement. JSW Infra operates

a port at Jaigarh in Maharashtra and at a terminal in Goa. It plans to eventually boost cargo

handling capacity at Jaigarh to 50 million tonnes from its current 20 million tonnes by 2020,

chief executive officer BVJK Sharma told reporters.

“The investment by Eton Park will help us in achieving the vision of reaching 180 million tonnes

of cargo handling capacity by 2020,” Sharma said.

JSW Infrastructure chairman, N.K. Jain, said the funds will also be used to retire about 2 billion

rupees of debt from a total debt of about Rs500 crores. The JSW Group, which has interests

across steel, energy, mining and infrastructure, is also in talks to develop port projects in Chile

and Mozambique. The group plans to initially invest between $60 million to $100 million to

develop a port in Caldera in Chile, which will help boost connectivity with iron ore mines.

The company expects maritime and environmental clearances for the Chile project in the next 3

months and hopes to start development at the site in the next financial year.

“The group has invested in iron ore mines in Chile. They will require proper logistics

connectivity and at the same time optimise sea trade,” Sharma said.

The JSW group is also in talks with the government of Mozambique to operate a port in Beira. It

has drawn up a plan to invest roughly $150 million in Mozambique, but the exact amount was

not yet been decided, Sharma added.

GE to supply gas turbine generators for GMR project GMR Energy, part of the diversified GMR group, which is expanding the gas-based Vemagiri

project by setting up 768 MW in Andhra Pradesh, has entered into a supply and maintenance

pact with GE for two gas turbine generators.

The expansion project, scheduled to be completed by 2012, will be through parts supply,

services and repairs for gas turbines from GE. The contractual service agreement (CSA) covers

15-years contractual cum service period.

Amway India eyes Rs 2,500 crore turnover by 2012 Direct selling FMCG company, Amway India, is eyeing a Rs 2,500 crore turnover in the next two-

years by expanding reach, launching new products and strengthening its marketing. "This year

the turnover is expected to be around Rs 1,700 crore and Rs 2,500 crore by 2012," he said.

Amway India is a wholly-owned subsidiary of $8.2 billion US-based Amway Corporation. The

company manufactures its products through seven third-party contract manufacturers in the

country with Baddi-based Sarvotham Care being Amway India's largest vendor (contract

manufacturer).

Around 85 per cent of Amway products sold in India are being manufactured by Sarvotham

Care.

The company is mulling to set up a new contract manufacturing facility in south India to cater to

the demand of its products in the coming days. "Our products are more in demand in South

India. We are thinking of setting up a new contract manufacturing facility in south India, but

nothing has been finalised," Kumar said.

The company plans to up its branches to 250 from present 130 in the next three years. "We will

increase our branches to 250 from the present 130 across the country by 2013. We are eyeing

an at least 25 per cent year-on-year growth for the next five years," he said.

The company offers 123 products in personal care, home care, nutrition and wellness, cosmetics

and great value products.

"We are planning to launch 12 new products in 2011 and 10 products in 2012. We also plan to

increase the number of brand experience centres to 25 from the present 10 over the next two

years," he said.

Stating that the direct selling industry has good potential in the country, Kumar said, "Direct

selling industry in the country is estimated at Rs 3,500 crore (excluding insurance) and is

expected to reach around Rs 5,300 crore by 2013.

"We have grown from Rs 799 crore to Rs 1,128 crore to 1,407 crore over the past three years,

essentially as the quality of the Amway pick-up centres has undergone a sea change and are

more experiential for the consumer," Amway India's Vice-President (Technical and Regulatory),

Vinay Kumar, told reporters here.

'India is engine of Dell's global growth' Of late 2006, Dell lost its lead in the PC business to Hewlett-Packard globally. Last year, it

slipped further, to No. 3, as Acer barged into the No. 2 spot.

Surprisingly, in India, roughly during the same period, Dell was moving precisely in the opposite

direction. It went steadily up the ranks and became the biggest seller of laptops in the second

quarter of this year. In the third quarter, it also became the biggest seller of desktops in India,

toppling HP from the spot it had retained for five years.

The fact that this happened in a relatively short period, and against competition that also

includes aggressive Asian players such as Lenovo and Acer and Indian players like HCL, makes

Dell India .s achievement all the more creditable . This, combined with the $53-billion

company’s previous record of establishing a successful global customer service and support

division in the country, has raised Dell’s ambitions in India. The company now wants to

challenge the likes of IBM , HP and the Indian IT majors in the services and solutions space.

Ganesh Lakshminarayanan, who helped create Dell International Services a decade ago and who

now heads the global consumer, small and medium business (CSMB) services for Dell, has just

been given an additional role—that of president, Dell India. Lakshminarayanan soon after he

took on the new role, he was excited. “India is at the top of Dell’s strategic geographies. If there

is a time to be in India, it is now, and if there is a place to be at Dell, I would say India is that

place,” he said. India, he said, is called the engine of Dell’s global growth, and noted that 23,000

of Dell’s global employee base of 96,000 or its every fourth employee is now based in India, and

every arm of the company is represented in the country.

Since the news about Dell becoming No. 1 in PCs in India is still fresh, we decided to begin with

that. He attributed the success to, more than anything else, Dell’s talent in India. “The first is we

built a phenomenal team. People underestimate the talent we have built over the last five

years,” he says.

Walmart raises IT sourcing from India US-based retailer Walmart, also the largest company in the world, has increased its information

technology (IT) sourcing strategy from India by setting up a dedicated group here (in Gurgaon).

Called Remote Services Management, the group is headed by Micky Singh who was earlier the

CIO of Walmart India and responsible for setting up complete IT solution to Bharti-Walmart,

covering all facets of the retail joint venture.

According to highly-placed sources, Remote Services Management will be part of Walmart’s

Information Systems Division (ISD), the in-house IT arm of the company. This is for the first

time Walmart’s ISD has set up an arm outside the US.

With this, the company wants to identify a number of Indian IT partners based on their areas of

strength, rather than giving a huge IT contract to any single company. As part of the strategy,

Walmart has also awarded contracts to two more Indian IT services firms, Wipro and Collabera

(a privately-held IT services company) to develop specific tools and application, and provide

services around that. The contracts are estimated to be over $200 million for multi-year

periods. Walmart has already awarded IT contracts to Infosys, Cognizant and UST Global for

sourcing specific services and applications for Walmart globally.

With the selection of more vendors, Walmart’s total IT sourcing from India is estimated to be in

the range of $800 million-1 billion. To a specific query from Business Standard, Walmart said

the numbers were speculative and not based on fact.

The company, however, said it had relationships with a number of partners and it did not want

to comment on the nature of those business relationships. “As a global company, Walmart will

make investments in technology to benefit the operations here and elsewhere in the world. We

will need worldwide resources, and our work with suppliers in India will help us continue to

grow our business and create jobs around the world,” the company spokesperson said.

A Wipro spokesperson said the company did not want to comment on market speculations.

Collabera, too, echoed this.

It is understood that Wipro will be responsible for application development and infrastructure

outsourcing for Walmart stores globally. Besides, the company has also established a large

helpdesk as part of its BPO practice. On the other hand, Collabera will develop collaborative

tools for specific retail applications.

According to industry sources, in his new role Micky Singh will be responsible for identifying

Indian IT partners. For example, the Thiruvananthapuram-based UST Global is responsible for

specific testing of its retail applications because of its inherent strengths in software testing.

Walmart typically prefers to develop its retail applications in-house. However, the company

gradually started buying packaged retail applications from leading software vendors like Oracle,

HP and SAP only towards the end of 2007.

Xiotech to expand India operations US-based Xiotech Corporation, an intelligent storage element (ISE) company that provides

storage blades, is expanding its India operations and is planning to increase investment in its

Hyderabad facility.

“We have made an initial investment of $20 million including an investment of about $10

million in equipment. Now, the annual spend on the Hyderabad centre is likely to increase by 20

per cent,” Xiotech president and chief executive officer, Alan Atkinson, told media persons.

According to Atkinson, the company's engineering centre has a workforce of 100 persons and

caters to the growing South Asian enterprise market. The centre will also play a key role in

development of ISE innovations, particularly in enabling virtualisation and cloud services for

emerging markets.

He said Xiotech's growth plans in India include establishing a strong channel and systems

integration network. The target markets were information technology services, banking and

financial services and telecom. The target cities were Delhi, Mumbai, Bangalore and Chennai

besides Hyderabad.

According to Xiotech’s estimates, the market size for ISE storage blades in India is about $275

million. The company is hopeful of cornering 10 per cent of this market two years down the line.

With more than 1,200 customers across major industries, the company’s global revenues last

year stood at $70 million.

Tecumseh to supply compressors for Panasonic refrigerators Tecumseh India, a leading manufacturer of compressors for air-conditioning and refrigeration

products in the country, and part of the US-based Tecumseh, on Thursday announced that it has

bagged an order to supply compressors for Panasonic refrigerators to be built in India.

Tecumseh has strategic partnerships with leading brands, including Whirlpool, Voltas,

Videocon, Haier, LG, Carrier and Blue Star. It is also a preferred supplier in Saudi Arabia, China,

South Africa and UAE.

Mr James Wainright, President and CEO, Tecumseh Products Company, handed over the first

compressors to the senior management team of Panasonic and Videocon on Thursday at the

Ballabagarh manufacturing facility.

‘Important market'

In a statement, Mr Wainright said, “India is one of the most important market for us and we are

committed to bring the best in class products to the country. In the past few years we have

invested more than $80 million in India and will continue to invest more.”

Mr Raghavan Ravi, Managing Director, Tecumseh India said, “Tecumseh range of refrigeration

compressors are the latest and most advanced. At Tecumseh, we are committed to leading the

trend towards overall efficiency improvement and environmentally responsible products.”

Tecumseh India has manufacturing facilities at Ballabgarh (Haryana) and Hyderabad (Andhra

Pradesh), the latter is the first and only rotary compressor plant in India.

Lockheed Martin delivers C-130 aircraft to IAF US aerospace and defence giant Lockheed Martin has handed over the first batch of six state-of-

the-art C-130J military transport aircraft to the Indian Air Force, giving a big boost to India's air

power. The new fleet comes under a $1.2-billion US Foreign Military Sale (India's first)

agreement with the US signed in late 2008. "There are few mottos that impart such passion as

that of the Indian Air Force, which is 'Touch the Sky With Glory'," said Lorraine Martin,

Lockheed Martin's vice president for C-130 programmes.

"There are few mottos that impart such passion as that of the Indian Air Force, which is 'Touch

the Sky With Glory'," said Lorraine Martin, Lockheed Martin's vice president for C-130

programmes.

"Today begins a new glorious, enduring partnership with India as the fourth largest air force in

the world proudly joins the worldwide C-130 family," he said. The Lockheed Martin C-130

Hercules aircraft is the most sophisticated airlifter ever built. The aircraft combines state-of-

the-art aerospace technology with a proven, rugged airframe design, to offer the operators

additional capability coupled with greater operational efficiency.

The Super Hercules that has been delivered to the IAF is the "stretched" variant of the C-130J. It

has a longer fuselage similar to the model Lockheed delivers to the UA Air Force. With the

induction of the aircraft into to the IAF fleet, India joins the growing number of nations with C-

130J that includes the US, Australia, Canada, Denmark, Italy, Norway and the UK.

The C-130J is capable of carrying 463L pallets, 97 medical litters, 24 CDS bundles, 128 combat

troops and 92 paratroops. It is equipped with an Infrared Detection Set (IDS) that allows it to

carry out precision low-level flying, airdrops, and landing in blackout conditions. The aircraft

incorporates self protection systems and other features to ensure aircraft survivability under

hostile air defence conditions. Additionally, the aircraft is equipped with air-to-air receiver

refuelling capability for extended range operations.

The aircraft is being provided to India under a package deal which, in addition to six aircraft,

includes training of aircrew and maintenance technicians, supply of spares, ground support and

test equipment, servicing carts, forklifts, loading vehicles, cargo pallets and a team of technical

specialists who would be based in India during a three-year initial support period.

Also included in the package is operational equipment custom build to Indian conditions and

designed to enhance Special Operations capabilities. Further, the C-130J Super Hercules will

provide the IAF with modern and effective airlift to support a wide range of national

requirements. The C-130J comes also equipped with a Global Positioning System and other

highly reliable, automated navigation and route planning aids. Indian defence and military

attaché Brigadier Bhupesh Kumar Jain and air attaché Air Commodore J S Walia received the

aircraft at a ceremony in Marietta, Georgia.

Harley Davidson introduces SuperLow and Iron883 bikes Harley-Davidson, the American cult bike brand yesterday introduced two new models -

SuperLow and Iron 883 in India. The models are priced Rs. 5,50,000 and Rs. 6,50,000 (ex-

showroom), respectively.

The SuperLow and Iron 883 would be the first two models to roll out of the CKD assembly

facility in Bawal, Haryana according to the company's statement. The models can be booked

from 1January, 2011, across the five Harley-Davidson dealerships, line-up in 2011, it added.

The company started operations in India in August 2009, opening its first dealership in July

2010. It has currently on offer 12 models in its 2010 line-up in India, available through

authorised dealerships in New Delhi, Mumbai, Bangalore, Chandigarh and Hyderabad.

Harley Davidson had last month announced it would start an assembly facility of its motorcycles

in India by the first half of 2011. This would make it the second such facility outside the US. The

company however, did not specify the production capacity or the investment that would go into

the facility. The company currently imports completely assembled motorcycles from its US

plants, In addition to India, the company operates CKD assembly facilities in Brazil outside of

US.

Textron wins Indian sensor fused weapons contract The Indian Air Force(IAF) will soon receive one of the most lethal bombs in the world, the CBU-

105 sensor fused weapon as the U.S. has cleared the sale of 510 of them to the IAF by awarding a

$257.7 million contract to Textron Systems Corp., under the Foreign Military Sales (FMS)

program. The Textron contract was announced yesterday which means the Indo-U.S. deal for

the same must have been inked sometimes earlier this year.

India had requested the sale of 510 sensor fused bombs, 19 CBU-105 integration test assets and

associated equipment in 2008. At that time the cost of the deal was estimated at $375 million.

The U.S. Defence and Security Cooperation Agency had then told the U.S. Congress that the

sensor fused weapons would help India “to enhance its defensive ability to counter ground-

armoured threats. The missiles will assist the IAF to develop and enhance standardization and

operational ability with the U.S”.

India had sought offsets under this contract but it not yet clear if the same was agreed to as the

technology is said to be a closely guarded U.S. secret with only close allies such as Korea and

Israel receiving the same. The half-ton CBU-105 will most probably be launched from a heavy

aircraft such as the SU-30MKI.

First used during the 2003 Iraq war, the CBU-105 Sensor Fuzed Weapon releases computer

controlled and radar equipped submunitions that hunt for tanks below and destroy them. The

CBU-105 can be used to attack formations of tanks or armoured vehicles. When dropped on an

airfield it can cause extensive damage to the parked aircraft and runway.

The CBU-105 carries ten submunitions.

Each of these uses a parachute to slowly descend and seek out armoured vehicles or tanks . If

one is spotted, the guidance system manoeuvres the submunition towards the vehicle and fires

a shaped charge that is basically a bolt of molten metal travelling at high speed which

penetrates the top armour of the vehicle damaging the insides. If the submunition radar does

not spot a tank or other armoured vehicle, it attacks any vehicle within a hundred meters or so.

If there are no vehicles, the submunition detonates on the ground.

Disney inks publishing, distribution pact with India Today Group Disney Publishing Worldwide (India) signed a multi-year license agreement with the India

Today Group for publishing and distributing licensed Disney content through magazines in

India.

"With India Today's market and consumer insights and our strengths in storytelling, we aim to

provide kids and families more access to our content, where and when they want it," Roshini

Bakshi, Disney Publishing Worldwide India's VP for Consumer Products, Publishing and Retail,

said in a statement.

The Disney magazines will be available in single, monthly, bi-monthly and quarterly editions at

newsstands as well on a subscription basis at a price of Rs 50-Rs 100.

The content will be based on some of Disney's franchises, including Disney Princess, Disney.

Pixar Cars, Art Attack, Disney Junior and much more, it said.

"More than one-third of India is young and around 333 million people of this segment are

literate. We are excited about serving this vast youth population with a range of colourful,

entertaining and engaging stories," India Today Group CEO Ashish Bagga said.

The children's book segment of the publishing business in India is estimated to be worth $1.15

billion and is growing at the rate of 25 per cent year-on-year, according to data from research

firm Technopak.

HP ties up with IIIT-B for Network University HP, which is looking to beef up its play in the networking solutions space and address the talent

crunch in the marketplace, has tied up with the International Institute of Information

Technology–Bangalore, to set up the ‘HP Network University'. The university, which is located at

the IIIT-B campus, will offer three-six month courses to students, HP partners and customers on

networking technologies, unified communications, and open standards. The university also

houses a lab that will conduct extensive research and incubate innovative ideas which can later

be brought to the marketplace. “Networking products (routers, switches) is an important piece

of technology for HP.

Networking is not new to HP. We have been offering the Pro-Curve line of networking products

for 25 years now. Our 3Com acquisition is also in line with this strategy. But there is a skills gap

in the market that prevents us from going to the next level and the university will help address

this,” said Ms Neelam Dhawan, Managing Director, HP India.

Honeywell working on petrol turbocharger Honeywell Technology Solutions Lab is working on a turbocharger for petrol cars. The company

has already created a turbo charger for small diesel vehicles. While discussing the possibility of

using turbochargers in low-end petrol cars, Dr Krishna Mikkilineni, senior Vice-President -

Engineering and Operations, Honeywell, said that while this had the advantage of providing

better mileage, it can push up the cost of the car. However, since a turbocharger can increase the

engine's power by around 30-40 per cent without a corresponding increase in weight, it could

be used in high-end small cars. Honeywell's turbocharger manufacturing unit was setup in Pune

in 2005.

Honeywell's 2010 sales are expected to touch $33 billion globally and India is believed to

account for around $600 million. In 2011, global sales are expected to be in the range of $35-36

billion. While the Indian arm doesn't have any specific sales target for 2011, company officials

say that their aim is to become a $1-billion company in India over the next few years.

Trade and Statistics

US Trade with India: 2010

Month US Exports to India US Imports from India Balance of Trade

January 2010 1,295.5 2,079.4 -783.9

February 2010 1,235.2 1,958.1 -722.9

March 2010 1,454.8 2,472.4 -1,017.6

April 2010 1,671.2 2,650.0 -978.8

May 2010 1,852.9 2,672.6 -819.7

June 2010 1,690.6 2,532.6 -841.9

July 2010 1,800.2 2,591.4 -791.2

August 2010 1,716.8 2,773.5 -1,056.7

September 2010 1,447.2 2,415.0 -967.8

October 2010 1921.2 2898.7 -977.5

TOTAL 16085.6 25043.6 -8958

SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified.

US TRADE WITH INDIA (US $ Millions)

Year US Exports to

India US Imports from

India Total Indo-US

Trade Balance of

Trade

2005 7,918.60 18,804.20 26,722.80 -10,885.60

2006 9,673.60 21,830.80 31,504.40 -12,157.30

2007 14,968.80 24,073.30 39,042.10 -9,104.40

2008 17,682.10 25,704.40 43,386.50 -8,022.30

2009 16,441.40 21,166.00 37,607.40 -4,724.60

2010 (till Oct’10) 16,085.60 25,043.60 41,129.20 -8,958.00

International Trade Shows

US DEPARTMENT OF COMMERCE CERTIFIED TRADE SHOWS IN US

Event Name Industry Date Location

2011 International CES

(Consumer Electronics) 1/6/2011 - 1/9/2011 Las Vegas, NV, United States

AG CONNECT Expo 2011

(Agricultural Machinery & Eq.) 1/7/2011 - 1/10/2011 Atlanta, GA, United States

International Builders' Show 2011

(Architectural/Constr./Engineering SVC)

1/12/2011 - 1/15/2011

World of Concrete 2011

(Architectural/Constr./Engineering SVC)

1/18/2011 - 1/21/2011 Las Vegas, NV, United States

International Poultry Expo/International Feed Expo 2011

(Agricultural Machinery & Eq.) 1/26/2011 - 1/28/2011 Atlanta, GA, United States

American International Toy Fair 2011

(Toys/Games) 2/13/2011 - 2/16/2011 New York, NY, United States

Graphics of the Americas (GOA)

(Printing/Graphic Arts Eq.) 2/24/2011 - 2/26/2011 Orlando, FL, United States

International Home and Housewares Show 2011

(Books/Periodicals) 3/6/2011 - 3/8/2011 Chicago, IL, United States

Feature State: Texas

Business Guide for SMEs

Overview: Texas is, without a doubt, the best state to do business in! The numerous global companies that

call Texas home greatly enrich its multi-faceted, wide open for business landscape. Texas has

one of the lowest tax burdens in the U.S. and no personal income tax. The state also has no state

tax on property used for pollution control, no state tax on goods in transit and no state tax on

machinery and equipment utilized in manufacturing.

Texas’s Trade with India

Total Trade with India: (From 2005 – 2010 (till Sep))

Product Value (in USD) Percentage

Chemicals 581,828,939 41.3% Machinery (Except Electricals) 223,052,439 15.8% Petroleum and Coal 176,476,175 12.5% Computer and Electronic (parts) 154,917,211 11% All Others 271,796,109 19.3%

Potential for India: Texas exported US$163 billion worth of goods around the world in 2009-10. That figure translates to 15.4% of total U.S. exports. Last year, Texans imported $127.9 billion worth of goods from around the world. That amount represents 13.2% of total U.S. imports. Texas posted a $35.4 billion trade surplus during 2009-10. Texan purchases of imported digital processing units soared by 207.5% in 2009-10. Imports of cell phones, computer parts, and color TV receptors also showed substantial gains over 2008-09.

Population: The population reached 24,782,302 in July 2009, according to the latest

estimates from U.S. Census Bureau. According to a July 2009 U.S. Census data release, three of the nation’s top ten

largest cities were in Texas, 82.5 percent of Texas' population lives in metropolitan areas.

Gross State Product: The Texas gross state product (GSP) for fiscal year 2009 was estimated at

$1,244.72 billion in current dollars and continues to diversify, according to the Texas Comptroller of Public Accounts (CPA). The Texas CPA’s quarterly GSP estimates indicate that in 2009Q4, the Texas GSP was $1,249.31 billion.

If Texas were a nation, its economy would rank as the 11 th -largest in the world by Gross Domestic Product (GDP), according to the Texas Comptroller’s 2009 estimates.

International Trade

Texas is a leader in the global marketplace. In 2009, for the eighth year in a row, Texas was ranked as the number one state by export revenues. Texas exports for 2009 totaled $163.04 billion. Products from the State of Texas are shipped around the globe each year.

The state's top value-added Texas exports in 2009 were Computer & Electronic Products, Chemicals, Machinery (not electrical), Petroleum & Coal Products, and Transportation Equipment.

Utilities:

Texas is considered the nation's energy capital. Millions are being invested in the state annually and Texas continues to expand its energy portfolio with the latest in high tech innovations, including its ranking as the number one state for wind power.

Texas is considered the nation's energy capital. Millions are invested in the state annually to maintain this standing.

Texas is the largest oil and gas producing state in the nation. The state has 27 petroleum refineries processing over 4.7 million barrels of crude oil per day, accounting for over a quarter of the nation's refining capacity, according to the U.S. Energy Information Administration.

Texas leads the nation in electricity production and consumption. It is also only state with its own power grid, and boasts one of the most robust, well-functioning electric markets in the world.

Texas is the nation's leading natural gas producer, accounting for approximately three-tenths of total U.S. natural gas production. Natural gas-fired power plants account for half the electricity produced in Texas.

The Lone Star State is top-ranked for coal production and is the nation's largest producer of lignite coal.

Texas is a major nuclear power generating state, with two nuclear power plants accounting for about one-tenth of the state's electric power production.

Although Texas is better known for its oil wells, the state ranks first in the nation for its potential to develop clean, renewable energy resources, including solar energy.

Texas is the nation's top wind energy producer and has led the nation in the amount of installed wind capacity for five years, according to 2009 information from the American Wind Energy Association. If Texas was a nation, it would rank No. 6 for installed wind capacity, according to The Wind Coalition.

Compared to many large states, Texas’ regulatory system is less cumbersome and more predictable. Texas is well poised to continue meeting its energy and water needs in large part because it has avoided unnecessary bureaucratic mandates.

Advanced Tech & Manufacturing Advanced Technology & Manufacturing is one of the six industry clusters identified as a long-term, strategic job creation plan. Each cluster was selected because of its powerful potential for future economic growth. The Advanced Technology & Manufacturing cluster is made up of three subclusters: nanotechnology, semiconductors and automotive manufacturing. Texas' world-class universities and research facilities, highly trained workforce, strong government and private business support, and a thriving business climate make Texas a national and global leader in all three subclusters. Nanotechnology The science of very small things means big business in Texas. Nanotechnology involves the engineering of materials at the scale of atoms and molecules. Nanotech and its applications cross all six Texas industry clusters.

Texas is a global leader in nanotechnology R & D; is nationally ranked for nanotech-related activities including research, venture capital and commerlization; and has laid claim as the birthplace of nanotechnology. In 2006/2007, Small Times magazine ranked Texas sixth overall in its annual ranking of top 10 micro and nanotechnology states, fifth for innovation, and sixth for research. Major Texas nanotech employers include LynnTech Inc., Southern Clay Products, Applied Optoelectrics Inc., Zyvex Corporation and Molecular Imprints.

Semiconductors Texas is the birthplace of the integrated circuit and has been a global leader in the semiconductor industry since the 1950s. Texas currently accounts for approximately 11.5 percent of the world's silicon processing capacity, according to the University of Texas at Austin's IC2 Institute. According to TechAmerica's (formerly AeA) Cyberstates 2010 report, the Lone Star State nationally ranked second for semiconductor manufacturing employment, overall high-tech employment, and high tech employment growth in 2008. Texas is home to one of the world's top five chip makers, Texas Instruments. Major Texas semiconductor employers include Samsung, Texas Instruments, Raytheon, Freescale Semiconductor, Advanced Micro Devices, and Applied Materials.

Dallas-based TI has been instrumental in many key semiconductor industry developments, including the late Jack Kilby's invention of the integrated circuit (IC) in 1958. Dr. Kilby went on to hold more than 60 patents, develop popular products like the pocket calculator, and win the 2000 Nobel Prize in Physics for his role in the IC invention.

Automotive Manufacturing

Texas is a major player in the automotive manufacturing marketplace and a top market for full-sized pick-up trucks and SUVs. The Lone Star State is nationally top-ranked for automotive employment and establishments, vehicle retail market size, and vehicle registrations. Texas is a right-to-work state with a well established automotive manufacturing marketplace that is experiencing continued growth, despite the economic downturn. The state is the single largest retail market for full-sized pickups, which is why some call it “Truck Country.”

In 2009, an estimated one in seven full-sized pickups was sold in Texas and over one in five new vehicles registered in Texas were full-sized pickups.

Texas is part of the growing NAFTA-spurred automotive corridor and is home to two major automotive manufacturing assembly plants operated by GM and Toyota. GM has manufactured vehicles in Arlington for over 50 years. Toyota opened a new Toyota plant in San Antonio in 2006, and in 2009 announced that Tacoma pickups will move production from California to its San Antonio manufacturing facility. Toyota’s decision to locate and grow its business in Texas underscores not only the state’s importance as a large and growing truck market, but also the state’s strategic location between the growing automotive manufacturing centers in northeastern Mexico and the southern U.S. States. In addition to GM and Toyota, major Texas auto manufacturing employers include Peterbilt Motors, Navistar International, and BAE subsidiary Global Tactical Systems.

Aerospace & Defense

Texas has been on the leading edge of aerospace and defense from the beginning of manned flight. The “can-do” spirit that comes naturally to Texans has made the Lone Star State a place of many firsts in innovation and industry.

From the earliest bi-planes to high-tech vehicles capable of landing on the moon, all types of aircraft have been manufactured in Texas. The Lone Star State is home to 3 major airlines and some of the world’s most advanced military aircraft are designed and built in Texas. Texas’ aerospace and aviation industry comprises about 200,000 jobs at 1,700 companies with workers earning an average annual salary of about $50,000.

Highlights:

Texas has 24 airports with Customs Service (Ports of Entry). Twenty Texas colleges and universities and 36 public high schools in Texas offer

aeronautical courses. More than 12.1 million departures and arrivals occur annually at Texas’

commercial airports. Fort Worth Alliance Airport was the first purely industrial airport to be built in

the Western Hemisphere. Dallas Fort Worth International Airport was ranked No. 28 on the July 2008 Top

30 World Airports by Cargo list from the Airports Council International.

Texas has more than 42,795 licensed pilots (private, commercial and helicopter).

Major aerospace and aviation employers in Texas:

American Airlines, Continental Airlines, Southwest Airlines, and ExpressJet American Eurocopter BAE Systems Bell Helicopter Textron The Boeing Company Gulfstream Aerospace Corporation NASA's Johnson Space Center L-3 Communications Lockheed Martin Raytheon

Biotech & Life Sciences:

Texas continues to provide fertile ground for biotechnology and life sciences. Attractive financial incentives, a highly skilled work force, world-class educational and research institutions, and a first-rate transportation and logistics infrastructure are transforming Texas into a global leader in the biotech and life sciences industry.

Biotechnology and life sciences is one of the six industry clusters identified in 2004 by Gov. Rick Perry as part of his long-term, strategic job creation plan. Each cluster was selected because of its powerful potential for future economic growth.

A majority of the top global biotech and pharmaceutical companies have locations in Texas, underscoring the Lone Star State’s vitality in these industries. They include the following 2010 Fortune 1000 companies: Irving-based Kimberly Clark, Dallas-based Celanese, Houston-based US Oncology, and San Antonio-based Kinetic Concepts.

Texas is home to over 4,100 biotechnology, biomedical research, business and government consortia, medical manufacturing companies, and world-class universities and research facilities. These facilities and institutions employ over 104,400 workers at an average annual salary of over $67,300.

Texas’ core biotechnology manufacturing establishments are primarily based in the Houston, Dallas-Fort Worth, Austin, and San Antonio metropolitan areas.

Expanding the biotech and life science industry is a top priority for Texas lawmakers. In 2001, the Texas Legislature appropriated $800 million for science, engineering, research, and commercialization activities, including $385 million for research infrastructure.

Texas biotech and life science industry highlights:

Texas' dynamic biotechnology marketplace has an estimated state economic impact of $75 billion, according to a 2009 Texas Healthcare & Bioscience Institute report.

As of March 2010, the TETF has awarded $170.86 million for biotechnology-related projects.

As of March 2010, the TEF has awarded $93.1 million for biotechnology-related projects.

In 2008, one of every 19 U.S. biotech employees works in Texas, according to the most current data from the U.S. Bureau of Labor Statistics.

Information & Computer Technology

The IT cluster was selected because of its powerful potential for future economic growth, and because it is an important contributor to the other five clusters.

The IT cluster encompasses many industry segments, including computers, software, telecommunications, and IT services. Major IT employers in Texas include Dell, Alcatel U.S.A., Texas Instruments, Nokia, Fujitsu Network Communications, Freescale Semiconductor, and Ericsson Inc.

According to the TechAmerica's (formerly AeA) Cyberstates 2010 Report, Texas ranked second nationwide in the number of high-tech workers, in high-tech employment growth, in the size of high-tech payroll, and in the number of high-tech establishments in 2008.

Texas ranked second in engineering services employment, communications services employment, and semiconductor manufacturing employment in 2008.

Petroleum Refining & Chemical Products

Petroleum Refining

Texas is the nation's No. 1 producer of oil and gas, refined products and chemicals, and natural gas, as well as a global leader in oil and gas production. The Lone Star State also leads the nation in natural gas reserves and production, representing three-tenths of total U.S. supply. Texas crude oil reserves represent almost one-fourth of the U.S. total, and Texas natural gas reserves account for over three-tenths of the U.S. total.

Texas is home to 27 operating refineries that process more than 4.7 million barrels of crude oil per day, accounting for more than one-fourth of total U.S. refining capacity. This processing is primarily carried out in the state's Gulf Coast refineries, which is the nation's largest refining center. Texas refineries process many crude oil types from around the world. The state's signature crude oil, known as West Texas Intermediate, remains the major benchmark of crude oil in the Americas.

Texas refineries are working hard to reduce refinery emissions and meet air quality needs by producing a variety of differing grades of lower-emitting fuels and gasoline blends, some incorporating ethanol.

Major Texas-based petroleum industry employers include ExxonMobil, El Paso Corp., Conoco Phillips Refinery, Shell Oil, and Valero.

Chemical Products

Texas is the nation’s largest chemicals producer. The Gulf Coast complex of chemical plants and refineries is the largest petrochemical complex in the world, and home to more than 200 chemical plants. These plants produce the basic chemicals used across many other industries, as well as plastics and resins.

Major Texas-based chemicals industry employers include BP, Dow Chemical, DuPont, ExxonMobil, Huntsman, and PPG Industries.

Energy

Energy is one of the oldest and most diverse industries in Texas.

The Energy cluster is made up of three subclusters: Oil and Gas Exploration and Production; Electric/Coal/Nuclear Power Generation; and Renewable and Sustainable Energy Generation. Texas’ geography and natural resources, excellent transportation systems, and skilled labour force and leadership in environmental research give the state a Lone Star advantage in Energy.

Oil and Gas Exploration and Production

Oil and gas exploration and production is one of Texas’ most established industries. In both crude oil and natural gas, Texas leads the United States in production and reserves. Texas also leads the nation in enhanced oil recovery potential.

Texas crude oil reserves represent almost one-fourth of the U.S. total, and Texas natural gas reserves account for over three-tenths of the U.S. total. While new oil and gas reservoirs are being discovered on an ongoing basis, the largest increment of oil yet to be produced is likely to come from existing reservoirs.

Electric/Coal/Nuclear Power Generation

Texas leads the nation in electric power production and is a major nuclear power generation state. The state is top ranked nationally for coal production and is the largest producer of lignite coal, which constitutes nearly all of the near-surface coal resources in Texas, and is most commonly used in electric generation plants.

Texas is the only state with its own power grid, and boasts one of the most robust, well-functioning electric markets in the world.

Natural gas-fired power plants account for about 50 percent of the electricity produced in Texas and coal-fired plants account for most of the rest. Texas produces a substantial amount of coal from its 11 surface mines, including five of the nation's largest.

Texas has approximately 4,800 megawatts (MW) of installed nuclear power capacity generated at two plants; The Comanche Peak project and the South Texas Project. Nuclear energy supplies less than 10 percent of the electricity generated in Texas.

Renewable and Sustainable Energy Generation

Texas is better known for its oil wells than its wind turbines; nonetheless, the state currently leads the nation in renewable energy potential and in wind energy production.

Texas has been the nation's top wind producer for the past five years, according to the American Wind Energy Association (AWEA). The AWEA estimated that Texas had an installed wind generating capacity of 9,410 MW in 2009. The state added 2,292 MW of new wind power capacity last year, more than twice as much as any other state. A number of the nation's largest wind farms are located in the Lone Star State.

If Texas were a nation, it would rank No. 6 for installed wind power capacity, behind Germany, the rest of the U.S., Spain, China, and India.

Although renewable energy sources contribute minimally to Texas' power grid, the state's 2005 Renewable Portfolio Standard (RPS) mandates the construction of certain amounts of renewable energy and has prompted the renewable energy industry to rapidly accelerate its production. Other renewable energy technologies that Texas is pursuing include solar, geothermal, wave or tidal energy, biomass and methane gas, and hydropower.

Starting a business: Tips for SMEs

Step 1: Business Structure and Name

The first step in starting a business is to determine the basic legal structure of the business, and to properly record the business name. This step is important when starting a business, since financial implications vary depending on which legal structure is selected. These range from corporation responsibilities for annual franchise tax fees to personal liability for business dealings as a sole proprietorship. The business name selected is the identifying and marketing component of the business. It should be given much thought and consideration. A professional tax consultant, accountant, and/or attorney should always be consulted before determining legal structure and business name.

Legal Structure

There are several legal structures available for businesses operating in Texas. Each structure is listed below with a brief description of the entity.

Sole Proprietorship

A sole proprietorship exists when a single individual operates a business and owns all assets. A sole proprietor is personally liable for all debts, and business ownership is non-transferable. Under a sole proprietorship, the life of the business is limited to the life of the individual proprietor. The sole proprietorship makes no legal distinction between personal and business debts, and it does not require a separate income tax return. A sole proprietorship is often operated under the name of the owner. Whenever operating a business under a name other than the sole proprietor, an Assumed Name Certificate must be filed with the county clerk.

General Partnership

A general partnership exists when two or more individuals or businesses join to operate a business. Under a general partnership, a separate business entity exists, but creditors can still look to the partners’ personal assets for satisfaction of debts. General partners share equally in assets and liabilities. A general partnership requires an annual partnership income tax return (separate from the partners’ personal returns). A general partnership may be operated under the names of the owners, or a different name. In either case, an Assumed Name Certificate must be filed with the county clerk.

Limited Partnership

A limited partnership is a partnership formed by two or more persons or entities, under the laws of Texas, and having one or more general partners and one or more limited partners. General partners share equally in debts and assets, while limited partners have limited debt obligations. A limited partnership must be registered with the Secretary of State.

Registered Limited Liability Partnership

A registered limited liability partnership is a general partnership that has been registered with the Secretary of State. A partner’s liability in a registered limited liability partnership differs from that of an ordinary partnership. In a registered limited liability partnership, a partner is not individually liable, under some circumstances, for debts and obligations of the partnership arising from errors, omissions, negligence, incompetence, or malfeasance committed in the course of business by others in the partnership.

Corporation

A corporation (Subchapter C or S) is created when two or more individuals, partnerships, or other entities join together to form a separate entity for the purpose of operating a business in the state. A corporation has its own legal identity, separate from its owners. The corporation offers protection to the business owners’ personal assets from debts and liabilities relating to the operation of the corporation. Taxation of the

corporation varies depending on the type of corporation formed. A corporation must be registered with the Secretary of State. A Subchapter C Corporation is taxed at a higher rate than an individual. The owners are not taxed personally for profits; however, the owners do pay personal taxes on any salaries and/or dividends, and the corporation is also taxed on the profits. Owners of Subchapter S Corporations may deduct business losses on personal income tax returns, similar to a partnership. The Subchapter S Corporation also offers alternative methods for distributing the business income to the owners.

Limited Liability Company

A limited liability company is an unincorporated business entity which shares some of the aspects of Subchapter S Corporations and limited partnerships, and yet has more flexibility than more traditional business entities. The limited liability company is designed to provide its owners with limited liability and pass-through tax advantages without the restrictions imposed on Subchapter S Corporations and limited partnerships. A limited liability company must be registered with the Secretary of State.

Business Name

Once the legal structure of the business has been determined, and if a separate business name will be used, the business name must be registered with the county clerk’s office and/or the Secretary of State.

It is very important to do a thorough search when considering a business name. If a corporation and an unincorporated company have very similar names, neither automatically has the right to the name. If both parties have properly filed the Assumed Name Certificate, the courts will most likely have to decide this matter. Taking the time necessary to conduct the name research up front will help avoid legal costs after the business is opened and operating.

State Registration

All businesses operating in Texas as limited partnerships, registered limited liability partnerships, limited liability companies, corporations, professional corporations, non-profit corporations, and professional associations must register with the Secretary of State. The Secretary of State provides a summary of requirements for the creation of these entities, but does not provide forms except for registration of a limited liability partnership. Corporations, limited partnerships, and limited liability companies organized in other states or countries may transact business in Texas by obtaining a certificate of authority through the Secretary of State. The Secretary of State can provide forms for the certificate of authority. An out-of-state business may also consider the option of creating a Texas corporation, limited partnership, or limited liability company for transaction of business in Texas.

A name may not be used by more than one corporation in the state. The

Secretary of State will perform a name search to verify that no other corporation, limited partnership, or limited liability company in Texas is using the exact name selected. To find out if a business name is available, call the Secretary of State and they will do an immediate computer search. The search is only for business names registered with the Secretary of State, and does not include business names registered only a county clerk.

If a corporation will transact business under names other than that stated in the articles of incorporation, the corporation must file an Assumed Name Certificate with the Secretary of State, and with the county clerk in which the principal office and registered office of the corporation are located.

Local Registration (Assumed Name Certificate)

If the business will operate as a sole proprietorship or a general partnership, an Assumed Name Certificate or d.b.a. (doing business as) for each name (or deviation of that name) the business will use must be on file with the county clerk in each county where a business premise will be maintained. If no business premise will be maintained, it should be filed in each county where business will be conducted.

If the business will operate as a corporation, limited partnership, or limited liability company, and the business will be identified by a name other than the name on file with the Secretary of State, an Assumed Name Certificate must be filed with the Secretary of State and each county in which the business will have a registered or principal office.

Neither the filing of an Assumed Name Certificate nor the reservation or registration of a company name imparts any real protection to the party filing the certificate. It is merely a formal process that informs the general public of the registered agent for a business and where official contact with the business can be made.

Filing the Assumed Name Certificate

Each county clerk office may use a different form; however, the information requested should be the same. Be prepared to provide the business name, mailing address, city, state, zip, expected period of operation, business type, and owner information.

Period of operation is the period of time the business will use the name. Ten years is the maximum length of time an assumed name filing is valid. However, if

the name will be used for a period of less than ten years, indicate this on the form. Note that names must also be renewed every ten years.

Business type refers to the legal structure of the business. Indicate whether the

business will operate as a corporation, partnership, sole proprietorship, etc. Owner information is the name(s) of the owner(s), personal address(es), and signature(s). All owners’ signatures must be notarized. This service is sometimes offered at the county clerk’s office. The form cannot be filed until all owners have signed it and all signatures have been notarized.

Step 2: Business Tax Responsibilities

The second step for starting a business is to determine the federal, state, and local tax obligations. The following sections briefly discuss each of these areas. It is strongly recommended that a professional tax advisor, accountant, and/or attorney be consulted before starting a business.

Federal Taxes

Information regarding federal income taxes, tax identification numbers, business tax credits, and employment tax regulations may be obtained by contacting the following agencies:

Income Taxes, Tax Identification Numbers, and Business Tax Credits Internal Revenue Service 825 East Rundberg Lane, Suite H-4 Austin, Texas 78753 800/829-1040 or 800/829-4059 (TDD) Business Tax Kit and other publications 800/829-3676 or 800/829-4059 (TDD)

Employment Taxes Social Security Administration 903 San Jacinto Austin, Texas 78701 512/916-5404 or 800/772-1213

State Taxes

Business Taxes

The Comptroller of Public Accounts is charged with the administration and collection of state and local sales tax from businesses operating in Texas, and also collects any franchise taxes owed by Texas corporations. There is no state income tax in Texas. The Comptroller maintains field offices in most major Texas cities to provide assistance and aid in complying with tax regulations.

Employment Taxes

The Texas Workforce Commission collects all unemployment taxes for workers employed in Texas. Information regarding these taxes, and to obtain a state employer’s identification number, and for information on tax credits, kindly contact: Texas Workforce Commission Tax Department 101 East 15th Street Austin, Texas 78778

Local Taxes

Business Taxes

If the business owns tangible personal property that is used to produce income, the property must be reported on a rendition form to the local county appraisal district, after January 1 and no later than March 31, each year. Business owners must report all inventories, equipment, and machinery.

Financial Resources

Innovative and competitive legislation continue to fuel investment and job growth in the Lone Star State. At Governor Perry’s urging, incentives such as the Texas Enterprise Fund and the Texas Emerging Technology Fund were created to attract new business, new technology and new jobs to Texas. To find out more about funds that may be available to your company please follow the links to the left for detailed information on all of our incentive programs.

The Emerging Technology Fund (ETF) was created by the Texas Legislature in 2005 at the urging of Gov. Perry to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies.

ETF grants are awarded in the following three areas:

Research Superiority Acquisition -- funds for Texas higher education institutions to recruit the best research talent in the world.

Commercialization Awards -- funds to help companies take ideas from concept to development to ready for the marketplace.

Matching Awards -- funds create public-private partnerships which leverage the unique strengths of universities, federal government grant programs, and industry.

Loan Assistance Leverage Fund Introduced in 1992, the Texas Leverage Fund (TLF) provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation. Terms Available for interim, long-term or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. Generally, EDCs are eligible to borrow four to five times annual sales tax revenues, up to $5 million. TLF loans are low-cost, providing capital to communities at floating Prime Rate. Future sales tax revenues serve as collateral for loan repayment with required debt service coverage ratios specified in the Texas Leverage Fund Program Guidelines. Pledged tax collections not needed for actual debt service are available for other projects. Capital loans for product commercialization and businesses

The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state. Financing is done in the form of direct asset based loans with a variable interest rate tied to London Interbank Offered Rate (LIBOR). Loans can be amortized up to the life of the asset.

Texas companies or out-of-state/international companies doing business in the state are eligible to apply. Applicants can submit a free brief pre-assessment in order to check eligibility.

Industrial Revenue Bond Program The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979 (Act). The Act allows cities, counties, conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf. The purpose is to provide bonds for projects within their jurisdictions. The IDC acts as a conduit through which monies are channelled. Generally, bond debt service is paid by the business under the terms of a lease, sale or loan agreement. As such, it does not constitute a debt or obligation of the governmental unit, the IDC or the State of Texas.

Process The IDC issuing the bonds must pass a declaration of official intent resolution (tax-exempt only); a bond resolution approving the project; set the bond amount; and make findings required by state law. In addition, the governmental unit of the IDC must pass a resolution that approves the corporate resolution and the project. All terms of the bond sale are negotiated among the appropriate parties and documents are prepared by legal counsel. The IDC submits an application to the Economic Development and Tourism Division of the Governor's Office (OOGEDT) and the Office of the Attorney General simultaneously. However, the Attorney General will not give final approval until they receive an approval letter from the OOGEDT. Once all approvals have been granted, the IDC can issue the bonds and finance the project from the proceeds.

Industry Development Loan Program The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favourable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5,000,000. Terms TID Program loans are variable rate, low-cost, long-term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025. Debt service is provided by the issuing authority.

Financial Resources The Texas Emerging Technology Fund (TETF) was created by the Texas Legislature in 2005 at the urging of Gov. Perry to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies.

Texas Enterprise Fund

The Texas Enterprise Fund, the largest "deal-closing" fund of its kind in the nation, continues to attract businesses and jobs to Texas. The TEF can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives.

Loan Assistance

The Texas Economic Development Bank provides flexible funding and oversight of finance and tax incentive programs targeting three key audiences: Texas businesses, Texas communities and Texas lending institutions. The Bank's task is to provide globally competitive, cost effective state incentives to expand businesses operating in the state and to businesses relocating to Texas.

Training Assistance

The states training programs assists businesses and trade unions by financing the design and implementation of customized job training projects. They successfully merges business needs and local customized training opportunities into a winning formula to increase the skills level and wages of the Texas workforce.

Tax Incentives

The State and Texas local communities offer a variety of tax incentives and innovative solutions for business expanding or relocating in Texas. Some programs include the Enterprise Zone, the Defense Economic Readjustment Zone Program and the Federal Enterprise Zone / Renewal Community Program

How to reach us:

We invite articles, industry related market research reports and whitepapers, information on policy matters related to Indo-US trade and investments via e-mail. Indo-American Chamber of Commerce (IACC) reserves right to edit the said articles for clarity and space and use them in all electronic and print form. E-mail: rkc@iaccindia.com; sudhanva@iaccindia.com Disclaimer: No part of this newsletter may be reproduced, reprinted or utilized in any form or by any means electronic or mechanical without prior permission of the publisher. While every care is taken in compilation of information contained herein, the publisher cannot accept any responsibility for error or omission or for the use of trademark, copyrights, brand name, logos or other identifying symbols provided in supporting and participating companies and organizations. However all possible and reasonable care has been taken to ensure that the information in this newsletter is as accurate and up-to-date at the time of printing. This newsletter is for internal use only. Credits: A number of persons and organizations have assisted us in the preparation of this newsletter. The information contained herein has been obtained from sources believed to be reliable and are based on research and analysis, whitepapers, academia, websites, internet postings and e-mails received. We wish to thank and express our gratitude to everyone named and unnamed for providing valuable inputs and providing data.

Conceived, Designed and Researched by: R.K. Chopra, Secretary General, IACC; E-mail: rkc@iaccindia.com S. Sudhanva, Executive Director, IACC; E-mail: sudhanva@iaccindia.com