india newsletter 02.2012

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India-Austria Newsletter | 1

INDIA NEWSLETTERPublished by the Embassy of India, Vienna

Year 2 | Issue 14 | February 2012

IndIan EngInEErIng dEsIgn& dEvElopmEnt Industry1

Embassy opEns ItsbusInEss CEntrE & lIbraryFor Upcoming Activities, see Last Page

2 | India-Austria Newsletter

News

NEwS oF INtErEStSnapshot of January Highllights

ForEIGN trADE

1India’s exports for the month of April- December 2011 have registered a

growth of 25.8%, at US $ 217.6 billion. During the period April—December 2011, the im-ports were US $ 350.9 billion with a growth of 30.4% and a Balance of trade stood at US $ (-)133.3 billion, during the same period. India’s exports in December 2011 were US $ 25 billion and imports stood at US $ 37.8 bn Balance of trade for the month of Decem-ber 2011 stood at (-) 12.8 billion US $.

ForEIGN INVEStMENt

2the Government has announced a new scheme under which a foreign in-

dividual, a foreign pension fund or even a foreign trust will be able to invest directly in the Indian equity market. these investors will be called ‘Qualified Foreign Investors’ (QFIs). “this has been done in order to widen the class of investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market,” a Finance Ministry statement said.

the investors are already allowed direct access to Indian mutual fund schemes. the latest decision is the next logical step in the direction, the statement added. At present, foreign institutional investors (FIIs) or foreign-ers, through sub-accounts with registered FIIs, can invest in the equity market. Unreg-istered foreign individuals and institutions in-vest through participatory notes (PNs). Now, this trend will change.

3the Chief Executive officer of the IKEA Group, Mr Mikael ohlsson, has met the

Commerce, Industry and textiles Minister, Mr Anand Sharma in Paris and conveyed that India is an important market and his compa-ny would like to be involved in strengthening of SMEs in India.

the development comes even as some mul-tinational companies had expressed concern about the 30 per cent local sourcing clause for 100 per cent foreign direct investment in single brand retail. However, the Govern-ment had ruled out going back on this clause.

Mr ohlsson congratulated Mr Sharma for the decision to allow 100 per cent FDI in single brand retail, the statement said.He in-formed that he will soon travel to India to meet concerned officials and stakeholders.

MErGErS & ACQUISItIoNS

4Pune-based Sudarshan Chemical In-dustries has bought the natural mica

pearlescent business from Eckart Effect Pig-ments, a division of Altana AG, a €1.5 bil-lion German speciality chemicals group. the buy comprises Eckart’s brands Prestige and Flonac - C, produced at its plant in Pori, Fin-land. these pigments are used in the cosmet-ics business.

the €110 million Sudarshan, a special-ity chemicals maker with a plant at roha, Konkan, on Maharashtra’s coastal strip, will add the new pearlescent product lines to their existing pearlescent pigment portfolio sold under the Sumicos brand name. Sudar-shan has acquired only the brands and some critical assets which it will ship to India.

5Mitsubishi Electric Corporation has an-nounced its acquisition of the Messung

Group, a Pune-based manufacturer of pro-grammable logic controllers (PLCs) and hu-man machine interfaces (HMIs), its sales and distribution partner in India, for an unspeci-fied amount.the acquisition will allow Mit-subishi Electric to accelerate its industrial automation systems business in India and strengthen local sales and solutions.

JoINt VENtUrES

6the world’s biggest coffee chain is finally in India. A year after Seattle-headquar-

tered Starbucks Coffee Company entered into an agreement with tata Coffee Ltd to source and roast coffee arabica beans in India, it has formed a joint venture (JV) with tata Global Beverages (tGB), the parent of tata Coffee, to roll out its cafes nationwide. As part of the agreement signed today, the two companies will form an equal JV, tata Starbucks Ltd.

INFrAStrUCtUrE

7 Asian Development Bank said it plans to investment about $2 billion every year

in India’s infrastructure space between 2012 and 2014 although the country demands much more than this. ADB has kept its annual infrastructure financing for India unchanged as its faces fund constraints, its managing di-rector general rajat Nag said.

the Manila-based institution had invested about $2 billion each in 2010 and 2011. the country will need about $1 trillion investment during the 12th Five Year Plan (2012-2017). “the size of our investment plan for India is not a reflection of the demand, neither it is a reflection of its performance. It is the sup-

ply constraint at our end which compels us to keep the annual plan unchanged at $2 billion,” Nag said on at an Indian Chamber of Commerce event in the city. India is a founding member of ADB and its fifth largest shareholder.

MANUFACtUrING

8Manufacturing activity climbed to a six-month high in December as new orders

rose, reinforcing signs of industrial revival. the HSBC Markit India Manufacturing Purchas-ing Managers’ Index rose to 54.2 from 51.0 in November, the highest level since June and the sharpest monthly rise since April 2009. A reading below 50 indicates contraction. It was 52 in october and 50.4 in September.

9he Aditya Birla group intends to invest $500 million over the next five years to

set up a viscose staple fibre plant in turkey.

“For us in the Aditya Birla Group, VSF is a core business. our aspiration is to significant-ly ramp up our global market share and our capacities by the turn of the decade. Estab-lishing a world-class plant in turkey is a step in this direction,” said Mr Kumar Mangalam Birla, Chairman of the group.

the Aditya Birla Group has over 21 per cent market share in the global VSF space.

AUtoMotIVE

10German luxury car maker Mercedes-Benz, facing competitive heat in India

from compatriots BMw and Volkswagen, is looking at investing €150 million to enhance capacity and increase sales here 10-fold by the decade’s end. Debashis Mitra, director (sales & marketing), Mercedes-Benz India Ltd (MBIL), said: “we want to grow our sales over three-fold to 25,000 units by 2016 and to 90,000 units by the end of the decade. to this effect, we are looking at introduc-ing two volume-driving models in the Indian market every year. while the B Class hatch-back will come in by the end of 2012, the A Class compact car would follow next year. the GLC, a premium SUV, will hit the roads sometime in 2014.”

11Swedish truck maker Scania will be in-vesting €23 million this year to set up a

plant in Bangalore. this plant will serve as a completely-knocked down (CKD) assembly unit for truck and bus chassis during phase 1 of operations. “this investment furthers Scania’s committed to the Indian market and this is the right moment for us. with the com-

News


mercial vehicles segment likely to register a higher volume growth of 8-10 per cent this year, the outlook for the industry is very promising,” Henrik Fagrenius, managing di-rector of Scania, said.

ENErGY

12 Union Minister of Power, Shri Sushil-kumar Shinde has called for strength-

ening research and development in power generation, transmission and distribution sectors. He was addressing the delegates of the India Energy Congress 2012 in New Delhi.

Shri Shinde said that while the country has made remarkable progress in the power sector during the 11th Plan, a lot more still has to be done. He said that during the 11th Plan period the country has added about two-and-a-half times of the capacity that was added during the 10th Plan period. He said that 80,000 Mw capacity is under construction for the 12th Plan.

Emphasising on the need of energy conser-vation through efficiency improvement, the Minister reiterated India’s commitment to cheaper, sustainable and clean power. He said that through various initiatives such as star labelling of products, the achievement in the avoided generation capacity during the 11th Plan will be over 10,000 Mw.

13Diversified Adani Group announced the commissioning of India’s largest

40 mw solar power plant in Kutch district Gujarat. For India’s largest private thermal power producer, the Solar Power Plant marks Adani’s first big foray in the renew-able energy sector. Going forward, Adani Group is planning to expand the capacity of this plant to 100 mw. the group is claiming to have commissioned country’s largest solar power plant in record time of 150 days start-ing from foundation stone laying to electric-ity generation.

14Mahindra Solar one, a joint venture between the Mahindra Group and

Kiran Energy, plans to invest €150 million in solar power generation to build a capacity of 100 megawatts over the next two years, continuing the trend of large business houses investing heavily in the sector. “our target is to be among the top three players in the solar industry in the next five years,” Anand Mahindra, vice-chairman and managing di-rector, Mahindra & Mahindra, told Et.

15Siemens Ltd said it will manufacture low and medium voltage energy au-

tomation products at two greenfield facilities in Goa. the factories, set up at an investment

of €30 million, will produce a range of prod-ucts for power distribution, power plants and infrastructure projects, a company state-ment said.

wEALtH MANAGEMENt

16with rapid increase of high net worth individuals (HNwI), India has emerged

as an attractive market for wealth manage-ment. the latest entrant is Ameriprise , the largest financial planning company of the US. the 117-year old company has a client base of over 2 million in US. At present, the com-pany manages assets of over $600 billion through its mutual funds and life insurance companies in US and Europe. However , in In-dia, it will start operation with financial plan-ning for individuals having annual income of over rs 20 lakh.

INtErNAtIoNAL

17Hungary is keen on investments from India in the automobile sector, par-

ticularly auto components. Addressing the members of the Southern India Chamber of Commerce and Industry, Mr Janos terenyi, Ambassador of Hungary in India, said there are huge capacities in his country that were supplying components to bus and truck man-ufacturing companies in the erstwhile Soviet bloc. the country now needs investments to revive those units, he said.

Hungary is an important member of the Eu-ropean Common Market and the European Union, and with its strategic location in the heart of Europe it can provide an important gateway to Europe. Currently, bilateral trade between India and Hungary is estimated at $30 million.

18India and the European Union are to hold its annual summit and Ministerial

meetings in New Delhi in February. Address-ing a joint meet, the External Affairs Minister, Mr S.M. Krishna, and the Foreign Minister of European Union, Baroness Catherine Ash-ton, said India and the European Union are to hold annual meeting as well as numerous official level interactions, which provide op-portunities, to discuss bilateral issues and provide a robust framework for reviewing global challenges.

Mr Krishna said the “European Union is our largest trading partner and a significant source of investment and technology flows into India. we co-operate on a wide range of issues ranging from security, energy, movement of people, culture, education and human rights.” India welcomes the enhanced role of the European Union on the world stage. Both India and the EU have important

roles to play in the international arena. Keep-ing this in mind, we also exchanged views on various regional and global issues of com-mon interest, he added. Baroness Catherine Ashton said the 28-member states in the EU intend to collaborate and co-operate in the area of It, science and technology.

19India has signed an international agreement that could be an effective

tool to help it combat tax avoidance and evasion. this agreement — Multilateral Con-vention on Mutual Administrative Assistance in tax Matters — is being seen as the ‘gold standard’ for co-operation in tax administra-tion.

this pact was signed at the oECD head-quarters in Paris by Mr Sanjay Mishra, Joint Secretary, Central Board of Direct taxes, in the presence of the oECD Deputy Secre-tary-General, Mr rintaro tamakio.

Mr Jeffrey owens, Director of the oECD Centre for tax policy and Administration, said India had moved very quickly since its commitment to the convention at the Novem-ber G20 meet in Cannes. “I expect that In-dia will be the first non-oECD G20 country where the updated Convention is in force,” he said in a statement.

the multilateral convention covers all taxes (direct and indirect), all forms of exchange of information and provides for assistance not just in tax assessment but also in the actual collection.

toUrISM

20with Indian tourists among the big-gest spenders in Switzerland, the

Swiss tourism is pulling out all the stops to promote the land of mountains, glaciers and rivers to potential tourists. A team of 22 offi-cials was in Chennai to promote Switzerland as a destination of choice among the travel agents, who in turn will take the message to the potential travellers.

on an average, an Indian spends Swiss Franc 350, including on hotels and restau-rants, while it was Swiss Franc 200 among other nationals, Ms ritu Sharma, Deputy Director and Media Manager, India, Swit-zerland tourism, which promotes Switzer-land as a holiday and travel destination. Switzerland continues to be a major attrac-tion for Indians, especially with a number of films shot in that country. Last year, nearly 450 thousand Indians stayed overnight in Switzerland, which was nearly 100 per cent growth when compared with the previous year. this year, the target is to grow the over-night stay by Indians by nearly 20 per cent.


News

INDIA-AUStrIA BILAtErAL NEwSLatest India-Austria-related Headlines

INDIA-AUStrIA BILAtErAL trADE rEPortJanuary-October Report

GEBAUEr & GrILLEr to ExPAND Pro-DUCtIoN LINE IN INDIA

In 2010, Gebauer & Griller, leading manu-facturers of electric cables and cable har-

nesses established their own subsidiary in India by the name of GG Cables and wires India Pvt. Ltd. the company was incorporated to supply flat travelling cables and cable har-nesses to the Indian elevator and escalator

market. A 40,000 ft² plant was established and is located on Chandapura-Anekal road in Bangalore. Several members of the team were trained in the Austrian and Czech plants for a transfer of product and process knowledge to safeguard the supply to the Indian market with products in GG quality standards and service level. By now GG In-dia’s manpower strength is about 60 people

and the company is supplying to customers like otis Elevator Company, KoNE Eleva-tor India and Johnson Lifts and Escalators as well as several other Indian elevator suppli-ers. the next step in the expansion in the In-dian business is the setup of production lines for tinned ribbon wires for the production of photovoltaic modules. the lines are currently being installed at the Bangalore plant. the

INDIA’S ExPort to AUStrIA INDIA’AS IMPort FroM AUStrIA

SItC ItEM 2010 2011 Change % of total 2010 2011 Change % of total

5 Chemicals 57447899 55004482 -4.3% 11.39% 59568784 53236150 -10.6% 7.85%

51 org. chemicals 18320014 8779425 -52.1% 1.82% 29135544 24128926 -17.2% 3.56%

54 Med. & pharm. prod. 31324384 37725250 20.4% 7.81% 11522956 10039979 -12.9% 1.48%

6 Manufact. goods 68370519 90629882 32.6% 18.77% 131532976 218971146 66.5% 32.29%

65 textile yarn, fabrics 32087868 40047964 24.8% 8.29% 3328010 3803232 14.3% 0.56%

66 N-metal. minerals 14433066 17797964 23.3% 3.69% 30352012 33253214 9.6% 4.90%

67 Iron and steel 3945205 7409712 87.8% 1.53% 57866174 129435507 123.7% 19.09%

69 Manuf. of metals 10848660 15775698 45.4% 3.27% 17140730 31120286 81.6% 4.59%

7 Mach.& trans. equip. 108105838 128230386 18.6% 26.55% 250075476 313514153 25.4% 46.23%

71 Power gen machinery 7703875 12906970 67.5% 2.67% 31864836 47952331 50.5% 7.07%

74 Gen.ind. machinery 15829043 21111330 33.4% 4.37% 53980584 62087765 15.0% 9.16%

77 Elec. machinery 31043954 40081971 29.1% 8.30% 46169360 63274268 37.0% 9.33%

78 road vehicles 43185954 45361206 5.0% 9.39% 9064476 7566525 -16.5% 1.12%

8 Misc. manuf. articles 155098544 181301805 16.9% 37.54% 46453382 65237081 40.4% 9.62%

84 Appar. & cloth. Acces. 93380243 107282253 14.9% 22.21% 149322 152823 2.3% 0.02%

85 Footwear 36124353 47958532 32.8% 9.93% 13241 58017 338.2% 0.01%

87 Sci & control. instrum. 1841073 2870028 55.9% 0.59% 23387681 36076208 54.3% 5.32%

89 Misc. man.articles, 11098822 7733680 -30.3% 1.60% 19351785 25441034 31.5% 3.75%

totAL 412546173 482968536 17.1% 509131553 678098256 33.2%

For the period January-october 2011, India’s exports to Austria increased by 17.1% to €482.96 million while imports

rose by 33.2% to €678.09 million. Both marks represent a significant jump after crisis-year 2009.

India’s Export to Austria. the positive export trend is being strongly pushed by increase in exports of ‘textiles’, ‘Apparels and cloth-ing accessories’ and ‘Footwear’, all of which account for more than 40% of India’s total exports to Austria.

‘Machinery and Equipment’ starts to see an accelerated rise in exports of ‘Power Gen-erating Machinery’, while it still accounts for only 2.7% of total exports, though. ‘Electri-

cal Machinery’, with advance by 29% and ‘road Vehicles’ by 5%, are the main contribu-tors to this group.

the exports of ‘Chemicals’, which now ac-counts for approximately 11.4% of total ex-ports (Jan-oct 2010:14.7%) continues to mark a decrease, this time by -4.3%, which now clearly indicates considerable changes in the market. Indian exports to Austria from January to october 2011 has statistically al-ready met its 2010 mark.

India’s Import from Austria. on the imports side, the jump has been even higher, re-cording 33.2% increase in comparison to last year’s same period. the results indicate considerable recovery in comparison to last

two year’s figures. ‘Machinery and transport Equipment’ remains the most relevant group of Indian Imports from Austria as it repre-sents about 46% of total imports. this mark is strongly supported by high development in the ‘Power Generating Equipment’(+50%) and ‘Electrical Machinery’(+37%). worth highlighting is the jump on imports of Manu-factured Goods, mainly represented by a steep increase in imports of Iron and Steel by 123%, which now accounts for a fifth of total imports. Like in exports, ‘Chemicals’ is also on decline by -10.6% on the imports side, and now accounts for only 7.8% of total imports (2010:11.5%).

News/Interview


Q&A: ALAN MULALLY, PrESIDENt & CHIEF ExECUtIVE At ForD Motor Co. Business Interview

production team is now undergoing training at the plant in Linz. Start of production on these lines is planned for February 2012.

EFKoN INDIA wINS PrEStIGIoUS orDErS

EFKoN India, part of the Austrian EFKoN GroUP (StrABAG subsidiary), one of

the worldwide leading companies in intelli-gent transportation and tolling solutions, has received four prestigious orders in the field of tolling and Intelligent transportation Solu-tions (ItS) of approx. € 6.5 million (INr 430 million) in total. this is one of the largest con-tract until date in the Indian toll industry

AUStrIAN KtM´S Co-owNEr BAJAJ rE-VEALS NEw Low-CoSt 4-wHEELEr

India’s second-largest motorbike manufac-turer Bajaj Auto Ltd and co-owner of Aus-

trian KtM unveiled its long-awaited com-

pact passenger vehicle rE60. the company, however, insisted it was not a car and was intended as a step forward for three-wheel-er. Powered by a pudgy 200cc engine that belts out around 20bhp power, the rE60 is the smallest four-wheeler ever built. Boasting of an eye-popping fuel economy of 35 kmpl, it is also environment friendly with a Co2 emission of 60 gm per kilometer, the lowest in a four wheeler anywhere in the world.

JoINt VENtUrE oF GLoBAL HYDroEN-ErGY AND BooM SYStEMS PVt. LtD.

A joint venture contract was signed by the Austrian company Global HYDroEN-

ErGY and Messrs. Boom Systems Pvt. Ltd. in the field of turnkey water-to-wire solutions for small hydro power plants. Global HY-DroENErGY will provide r&D, engineering and project design, the manufacturing of

electromechanical components will be done

in India and Asia.

PEGUForM GroUP Now 80% INDIAN

Austria’s CroSS Industries AG announc-

es that the closing of the majority stake

sale of the Peguform Group companies to

the Indian Samvardhana Motherson Group

was completed successfully. there were no

objections by the cartel authorities. As of

now the Indian Samvardhana Motherson

Group holds 80% of shares in the Peguform

Group. CroSS Industries AG further holds

only 20% of the shares. In addition, the sale

of 50% of shares in the wethje Group to the

new partner was concluded simultaneously.

Looking at the success of its small car, the Figo, and the recently launched mid-segment sedan, Fiesta, Alan Mulally,

president and chief executive at Ford Motor Company, is keener than ever to increase the product offering in India in the coming year. this will be complete with a series of new engines with alternative technology and even electric drivetrains. He spoke to Swaraj Baggonkar on future plans.

Q: what is the product range you have lined up for India?

A: We showcased the EcoSport, our com-pact sports utility vehicle, here today. This will be launched in the Indian market soon. Prior to this, we had launched the global Fi-esta in the middle of last year. This is part of the plan to launch eight new products in the Indian market. I think the Asia-Pacific, espe-cially India and China, will be very important markets and that’s why we are going to be here with the best products in the industry.

Q: when are you going to launch the EcoSport in India and what will be the pric-ing?

A: We are going to make an announcement about the launch in the next few months, but clearly it will be towards the end of the year. The car will be made in India and, hence ,would be cost-competitive We can comfort-ably speak about its pricing at the time of the launch.

Q: where does India stand in terms of Ford’s global plans?

A: India has become very important in our global plans. We have 10,000 employees and this number is only going to grow over the next few years ,when we have our new plant (at Sanand, Gujarat) on stream.

Q: what products are going to come out and what price points to complement your existing range?

A: Ford globally has a family of large cars and SUVs and, hence ,more of such vehicles will be available to Indian consumers in the time to come. We believed the Figo, Fiesta, Eco Sport and Endeavor are suited for this market and are moving forward, and we will continue to evaluate what fits best for the Indian market.

Q: what engine options you will offer to In-dia at later stages?

A: We have nothing specific to announce today but clearly, our core strategy is to pro-vide engines that people want. So, you will get to see different petrol engines, ecoboost engines, a variety of diesel engines and also all electric engines. Over time you will see more electric cars like hybrids, plug-in hy-brids. We will see a combination of all of this.

Q: Could there be a product below the Figo in India in the coming period?

A: We have nothing concrete to announce now, but we continue to look at all the mar-ket segments. The good thing about the EcoSport and Fiesta is that they are abso-lutely at the centre of the market, not only in India but also in China. We should make

sure we have the right kind of product that people want to drive.

Q: what kind of significance does India hold vis-a-vis the international market?

A: We do not give area-wise break up of our performance but we look at it as the Americas, Europe and Asia-Pacific. The worldwide automobile industry is growing at five per cent and the demand is being led by Asia-Pacific, especially India and China.

Q: How do you look at the India-EU free trade agreement?

A: Our strategy on where we operate, which was established by Henry Ford (found-er), is to have a market in each country around the globe. We believe in free trade and are encouraged by the developments governments are making around the world. We believe the market should have the pow-er to determine the currency and exchange, we are very supportive of rule-based trade and we are going to see more and more free trade agreements.

Q: How are the developments in Europe im-pacting you and your global plans?

A: The sovereign debt crisis is a concern for all of us, and I am very pleased that the gov-ernments are making attempts to resolve this crisis. Our strategy operates on the plans we have put in motion for each country, which works independently. So far, we have not made any change to our global plans because of the financial crisis.


News

QUotE oF tHE MoNtH“India has a very impressive GDP, huge population, fairly educated work force,

and for these reasons there is an influx of international investments into the country”(by David t Kong, Best Western International Inc)

100% FDI IN SINGLE-BrAND rEtAILAn overview

SUStAINABLE UrBAN DEVELoPMENt Opportunities in India for Foreign Companies and Individuals

the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India has...

formally removed the restrictions on foreign investment in single-brand retail sector by al-lowing 100 per cent Foreign Direct Invest-ments (FDI) in this sector. However, it has put on hold the proposal for allowing up to 51 per cent FDI in multi-brand retail.

the Department of Industrial Policy & Pro-motion, Ministry of Commerce & Industry, Government of India has, vide its Press Note 1 (2012 Series) dated 10th January, 2012, formally removed the restrictions on foreign investment in single-brand retail sector by al-lowing 100 per cent Foreign Direct Invest-ments (FDI) in this sector. However, the Gov-ernment has put on hold the proposal for allowing up to 51 per cent FDI in multi-brand

retail.

PrESENt SCENArIo

Single-brand retailers are permitted 51 per cent FDI under government approval route.

NEw SCENArIo

FDI, up to 100 percent, under the govern-ment approval route, would be permitted in single brand product retail trading, subject to certain conditions.

CoNDItIoNS

Foreign investment norms for single brand re-tailing would be subject to certain conditions:

1. Products should be sold under the same brand internationally, i.e., products should be sold under the same brand in one or more countries other than India.

2. ‘Single Brand’ product retail trading would-cover only products which are branded dur-ing manufacturing.

3. the foreign investor should be the owner of the brand.

4. Proposals involving FDI beyond 51 per centwould need to ensure mandatory sourc-ing of at least 30 per cent of the value of-products sold, from the domestic small and-cottage industries that have an investmentin plant and machinery of maximum USD 1 mil-lion (about rs 5 crore).

5. Any addition to the product/product cate-gories to be sold under ‘Single Brand’ would require fresh approval of the government.

CoMPLIANCE oF tHESE CoNDItIoNS

the compliance of these conditions will be ensured through self-certification by the company, to be subsequently checked by statutory auditors, from the duly certified ac-counts, which the company will be required to maintain

with tree-lined streets, ancient build-ings, a vibrant culture and clean environment, Mysore is one of the

most aesthetically pleasing cities to live in In-dia. For similar reasons, it is also one of the fastest growing, as It companies go in search of more satisfying environments to base their operations. Having seen neighbouring Ban-galore’s explosive growth, Mysore is trying to build its infrastructure sustainably as it grows. It has several sustainable initiatives, but the city got an unexpected ally to move in an unexpected direction: a British firm looking for opportunities in the low-carbon market.

the UK consulting firm Atkins is among the large number of companies around the world now eyeing the $800-billion low-car-bon market, which is expected to treble over the next decade. one of its recent inventions is a low-carbon master-planning tool that can be used to reduce the carbon footprint of cities as they develop over time. A low-carbon city is still an alien concept among

municipal administrators in India, but Atkins wanted to catch the smaller cities here at the right time, before they started exploding like one of India’s megapolises. “we wanted to work with some progressive tier-II cities,” says Jitesh Brahmkshatriya, head of environ-mental planning of Atkins in India.

Atkin’s tool helps city administrators see in three dimensions how their cities inch to-wards disaster over time. It would also show how things would improve with the right kind of early interventions. Atkins had developed the tool in the UK and had used it with cit-ies like Birmingham. Now the company had a financial mechanism to reach out to cities in developing countries: the Prosperity Fund, managed by the UK Foreign and Common-wealth office, aimed at improving British prosperity by helping them tap low-carbon markets around the world. Atkins reached out to Mysore and Madurai, two suppos-edly progressive cities in South India.

CItY LIGHtS: MYSorE, MADUrAI

Mysore Urban Development Corporation (MUDA) was developing neighbourhoods around the city that it wanted to be as sus-tainable as possible, but those living there weren’t paying enough attention to the con-cept. So, with the help of Atkins, the city has now adopted a 320 acre neighbourhood with 500 families to start a pilot project. Later, with enough data, the city hopes to expand lowcarbon growth to the rest of the city.

“we hope to reduce our electricity consump-tion by about 10% over the next five years,” says city Municipal Commissioner Kishore raykar.

Madurai hadn’t grown in recent times be-cause of poor infrastructure, and was look-ing to get back to growth, but in a sustainable way. Atkins has started collecting data about the city it hopes would be incorporated in 20-year master plans that they would make.

News/Interview


the tool will help the city administrators to reduce the carbon emissions of their cities as they develop over the next few decades.

reducing carbon emissions of cities is among the top priority of city mayors around the world, and many developed countries have drawn up aggressive plans to make their cit-ies carbon neutral in the next few decades (see table). Few, if at all, Indian city adminis-trators had so far thought of a low-carbon path for their cities in this way. Until they have been prodded by overseas consultants.

ECoNoMIC CoStS

Consider for a moment what is in store for Indian cities in the next two decades, which is the normal duration of a master plan be-ing drawn up now. According to the McK-insey Global Institute, India’s GDP would have grown five times by then and cities would have contributed 70% of this growth. this would mean the existence of 68 cities in 2030 with a population of over one mil-lion, compared to 42 today. According to McKinsey, it would also necessitate a capital investment of $1.2 trillion that would go into creating 700-900 million square meters of office and residential space, the paving of 2.5 billion square meters of roads and the construction of 7,400 kilometers of metros and subways (20 times of what was built in the last ten years).

Few expect India to achieve all of this, but construction activity even at a smaller scale is environmentally destructive if not prac-ticed with caution. It would also mean an enormous increase of carbon emissions from India at a time when major cities around the world are trying hard to reduce their emis-sions. And yet the costs of rapid growth are not just environmental. If Indian cities operate at current efficiencies, the economic costs can be too high. “Cities in India perform poorly in terms of energy efficiency compared to western cities,” says Padraic Kelly, CEo of Happold Consulting, a UK-based strategic and management consultancy firm.

“Indian cities have low-carbon emissions and so there is also an opportunity to follow a low-carbon approach to development by improving efficiencies.” Kelly has co-founded the working Group on Sustainable Cities at Harvard University.

Since the scope for improvements are high, the Indian low-carbon market is among the fastest growing in the world and is set to develop from $23 billion in 2009 to $135 billion in 2020 (6.1% of the global mar-

ket), according to HSBC Global research. Energy-efficiency solutions alone will make up $77 billion of this market by then. New technology would go into improving indus-trial, transport and building efficiencies. India has announced - voluntarily - that it would reduce the emissions intensity of its GDP by 25% within the next decade. Since cities would contribute 70% of the country’s GDP by 2030, they are set to become focus of emission-reduction strategies. So cities are poised to drive the bulk of this growth in low-carbon market.

By this year-end, Energy Conservation Build-ing Codes are likely to be written into the by-laws of municipalities in eight states. City ad-ministrators are also beginning to be aware of the potential of a lowcarbon approach to planning due to its economic and social benefits. It is not just Mysore and Madurai that are interested in this opportunity, and it is not just Atkins that is trying to do low-carbon business with Indian cities. For exam-ple, researchers at the Lawrence Berkeley National Laboratory in California, US, have been trying to persuade Indian municipalities to use its city road-mapping tool. So far it has grabbed the attention of Pune and Jaipur.

roAD-MAPPING tooL: JAIPUr

the Berkeley Lab’s road-mapping tool can help forecast energy and water consump-tion accurately. “Indian municipalities did not know about future patterns of consumption,” says Maithili Iyer, programme manager at Berkeley Lab. “the roadmapping tool tells them about future patterns of consumption.” Both Pune and Jaipur are at the early stages of evaluating low-carbon planning tools; it is difficult to predict how they would use them in the future. But it is an approach that is certain to be adopted in many Indian cities soon. Since the tools help formulate policies, they would also help drive multi-billion dollar market opportunities. Jaipur, for example, is now struggling to manage its growth using conventional approaches.

water supply is at breaking point and growth of city transport has been chaotic. City administrators had earlier tried to use solid waste to generate energy, but the nature of the city traffic made sure that the waste could not be transported efficiently to feed the plant. “A road-mapping tool will combine historic data from the city with trend analysis from other cities,” says Jyotirmay Mathur, associate professor and coordina-tor, Centre for Energy and Environment at the Malaviya National Institute of technol-

ogy at Jaipur. “the city officials will then have data to go to the funding agencies.”

the theme of sustainability has been attract-ing It companies around the world to de-velop tools and plans for cities around the world. one approach, centering on the con-cept of smart cities, is to use information tech-nology (It) to gather, analyse and respond in real time to information from around the city. IBM and Cisco have been the main propo-nents of this approach, which is also prac-ticed by several other It companies. Smart city technologies improve efficiencies signifi-cantly and are thus an important approach to sustainability, but there are other ways It could be used to develop sustainable cities.

“It can help manage supply and demand holistically using local resources,” says Chan-drakant Patel, Senior Fellow at the Sustain-able Ecosystems research Group at Hewlett Packard Laboratories in California.

LoCAL rESoUrCES

Using local resources as much as possible would be a recurring theme as Indian cities develop; transporting material over long distances would increase the energy costs. with good It tools, it would be possible to combine local energy generation with cen-tral electricity generation seamlessly. It tools will also help optimise power consumption. “ICt energy offsets can be 10-20% or even greater,” says warren Karlenzig, co-founder of the San Francisco-based Common Cur-rent, a consulting firm that has helped plan several cities in developing countries, par-ticularly in China.

the impact of It would be substantial when smart grids become a reality around the world. “Smart grids would revolutionise re-newable energy,” adds Karlenzig. Mysore, India’s solar city, is a good example of try-ing to decentralise power generation, but it is still a long way from creating local micro-grids and combining them with centralised power generation. this would happen only when smart grids are deployed in India over the next decade. Smart grids would also help fuel a spurt in the adoption of electric vehi-cles widely in Indian cities, expected to take off in the second half of this decade. HSBC estimates that the hybrid and electric car market will grow to 4 lakh units at a value of $15 billion by 2020. By then the lowcar-bon practices would have become truly en-trenched in Indian cities.


Articles

DELHI AIrPort EMErGES AS tHE BESt rEtAIL LoCAtIoN For LUxUrY BrANDSLuxury Industry in India

worLD’S FIrSt HYDroGEN-PowErED rICKSHAwS LAUNCHED IN INDIAInnovations from India

Can you name the retail location in India from where Swarovski, Marks & Spencer, Samsonite, Hidesign and

Kimaya all reported their best sales numbers last calendar? Not Khan Market or Select City walk Mall in Delhi, not Linking road or the Phoenix Mall in Mumbai; it’s the Delhi airport.

Indira Gandhi International Airport in the capital is the most lucrative retail location in the country, having generated sales of 5,000 per square feet per month in 2011, which is almost four times higher than the second-best location. this figure includes sales from duty-free shops, but regular shops too are buzzing here.

“our ticket size at airport is double in value compared locations elsewhere,” says ruchita Sharma, marketing operation manager of high-end crystal products maker Swarovski’s consumer goods business. the brand store at the t3 terminal of the Delhi airport ranks among its top stores by sales globally.

retailers are at a loss to explain why a place meant just for travelling let brands rake in more moolah than most shopping malls and high streets.

Many of them are, in fact, surprised. A case in point is high-end fashion house Kimaya, which did not exactly expected hurried trav-ellers to indulge in couture when it opened its outlet in the swanky international terminal in November last.

Its promoter Pradeep Hirani says he had turned down offer to open a shop at the airport two times before saying yes the third time. “For us, it was more of exhibitional than commercial.”

Not any more. today, Kimaya’s airport store sales are much higher than its high street outlets at around 3,500 per sq ft every month. And Hirani regrets having opted for a revenue-sharing model-where the retailer pays a percentage of its sales as rental to the airport operator-instead of the high rent-als the airport had quoted earlier.

So what makes Delhi airport the most prof-itable destination for brands? one reason is its sheer size. It is the largest and busiest airport in South Asia. More than 35 million passengers used it last year.

It is the fourth largest retail hub in the country with sales of 1,200 crore in 2011 despite be-ing ten times smaller than malls such as Am-bience Mall in Gurgaon and Phoenix High Street in Mumbai. “For any retailer, sales-per-sq ft is the most important parameter while deciding on setting up their store,” says Susil Dungarwal, chief mall mechanic at Be-yond Squarefeet Advisory, a boutique mall consultancy firm. It reflects the profitability of an outlet as the per-square feet cost is com-parable in most prime locations in metros.

Premium leather accessory brand Hide-sign mopped up over 10,000 per sq ft per month on an average against 1,500-6,000 elsewhere, while Samsonite generated sales of 7,200 from the Delhi airport store com-pared to 1,350 in other stores.

the world’s first fleet of hydrogen-fuelled 3-wheelers, or rickshaws, were launched in New Delhi. the 15 vehicles

will be refuelled from a station at Delhi’s Pra-gati Maidan, where the fleet will be operat-ing.

the USD 1 million project took three years to complete, with half of the costs co-funded by the United Nations Industrial Development organization (UNIDo) International Centre for Hydrogen Energy technologies (UNIDo-ICHEt) based in Istanbul, turkey.

“the hydrogen-powered rickshaws and the refuelling station were established as part of the DELHY-3w project that aims to demon-strate hydrogen technologies developed by Indian partners for the Indian transport sec-tor,” said UNIDo-ICHEt Managing Director, Mustafa Hatipoğlu.

India’s Minister of New and renewable En-ergy, Farooq Abdullah, welcomed the event, saying: “Hydrogen holds great promise for a cleaner urban environment. Hydrogen can replace polluting and diminishing fossil fuels with a fuel whose only emission is pure wa-ter. If hydrogen is produced from renewable energy sources, then it is the cleanest fuel

from well to wheel.”

Minister Abdullah expressed hope that “since hydrogen as a fuel and hydrogen en-ergy technologies are new and applied in small numbers their cost is presently higher than conventional fuels and established en-ergy technologies. However, the possible inclusion of hydrogen in the portfolio of al-ternative transport fuels in India could create the right market conditions for mass produc-tion of hydrogen vehicles and refuelling infra-structure, leading to comparable costs and reduced urban pollution in cities like New Delhi as well as in other Asian metropolis that might implement such technologies”.

Minister Abdullah also said that the devel-oping world had the potential to play a major role in the transition to a hydrogen-inclusive energy future.

the Indian Institute of technology (IItD) was the DELHY-3w project co-ordinator, carry-ing out exhaustive lab tests on the vehicular engine under varying operating condition and providing the technical expertise to con-vert the internal combustion engines to run on hydrogen.

Mahindra and Mahindra developed the ve-

hicle with all necessary changes to the en-gines, safety systems, fuel tanks and fuel lines. Air Products USA acted as project partner and sponsor by providing the hydrogen refu-eling station and management and technical services.

UNIDo’s India regional office facilitated the realization of the project. India trade Promotion organization (ItPo) is hosting the project and helping disseminate the Indian know-how. the Indian Ministry of New and renewable Energy has been closely follow-ing the project, while both the refuelling facil-ity and hydrogen storage tanks on the vehi-cles have received all necessary permits and approvals from the Petroleum and Explosives Safety organization (PESo).

Articles


INDIA to HAVE owN SYStEM to rAtE NAtIoNSCountry Ratings

EUroPE oPENING UP to INDIAN It SErVICESIndian IT Outsourcing

INDIA’S ECoNoMIC GrowtH to rEMAIN roBUStUnited Nations Report

India’s economic growth is expected to remain robust in 2012 and 2013, despite likely headwind of double-dip recessions

in Europe and the US. this has been high-lighted in the world Economic Situation and Prospects 2012, the United Nations’ annual economic report released today.

Indian economy is expected to grow by be-tween 7.7 per cent and 7.9 per cent this year, the report said. South Asia’s economies are expected to grow by 6.7 per cent this year and 6.9 per cent next year, accelerat-ing slightly from 6.5 per cent last year. robust domestic demand will sustain this increase (in South Asia), but the economic slowdown in

India, where growth declined from 9 per cent in 2010 to about 7.6 per cent last year, brings down the regional average, the re-port said. South Asia comprises India, Paki-stan, Nepal, Iran, Bangladesh and Sri Lanka.

on Inflation. Among the major developing countries, growth in India and China is ex-pected to remain robust. Brazil and México are expected to suffer a more visible eco-nomic slowdown.

the UN report expects inflation in most de-veloping countries to decelerate this year, along with an anticipated moderation in global commodity prices and lower global growth.

Fiscal Deficit. on fiscal deficit, the report

said that the Indian Government is unlikely

to achieve its fiscal deficit target of 4.7 per

cent of the gross domestic product for 2011-

12 as lower growth has brought down tax

revenues and disinvestment in state-owned

entities has been put on hold.

on the global economic prospects for 2012

and 2013, the report noted that the world

economy is on the brink of another major

downturn and anaemic growth is expected

during 2012 and 2013.

the finance ministry has developed a new sovereign comparative rating method, which would be a part of this

year’s Economic Survey. the index, called the “Comparative rating Index for Sovereigns” (CrIS), is based on Moody’s ratings and data on the gross domestic product (GDPs) of different nations as given by the Interna-

tional Monetary Fund, said Chief Economic Adviser Kaushik Basu.the index has been developed keeping in mind the fact that when an investor searches across nations for a place to put money, the relative rating of nations is important. Major credit rating agencies give out sovereign credit rating of each nation as an absolute grade. How

other nations fare does not matter in a par-ticular nation’s rating score.

this is a new system for comparing the rela-tive ratings of sovereign debt based on the historical evolution of their ratings over five years and the volume of their economic ac-tivity as measured by their GDP (not adjust-ed for purchasing power parity).

the European crisis is acting as a cata-lyst in driving offshoring from a region that has traditionally preferred onshore

It services. the strong Europe revenue num-bers and client additions of Indian It majors in recent times indicate that clients are view-ing offshoring as a cost and efficiency lever.

In calendar year 2011, top-tier It compa-nies grew their Europe revenues between 23% and 40%. In the just completed oct-Dec quarter, they posted strong sequential growth in Europe, with Infosys growing at 17%, tCS at 19% and HCL at 6.3%. Europe also saw a larger share of multi-million dollar deals being signed than the US.

Infosys added 14 new clients in Europe of which two were in the $500-million bracket and these were the largest deals the com-pany won in the quarter. tCS won 10 large deals in the quarter that included four from Europe, three from the US, and two from Asia-Pacific. HCL won 18 large deals worth $1 billion, in which Europe led the list in value.

Europe accounts for about 20-30 % of In-dian It’s revenues, but a large portion of this comes from the UK. In Continental Europe, led by Germany ($44 billion in It spends) and France ($37 billion), Indian It has just a single-digit market share of It spends. other large but under-penetrated markets include Spain, Italy and the Nordic regions.

there are other factors too that explain Indi-an It’s improved performance in Europe. Anil Chanana, CFo at HCL technologies, said Indian It has developed capabilities both or-ganically and inorganically to take on large and complex projects. European It spends are skewed towards higher-margin, project based services such as system integration.

Indian vendors have also made huge invest-ments in Europe in the past couple of years and have appointed country heads recruit-ed locally. Sanjay Vishwanathan, CEo of Sonata Software, said the growing success of the global delivery model, as well as serv-ice lines like remote infrastructure and cloud,

are helping the cause of offshorers. Indian

It companies also have near shore centres

in Europe in countries like Hungary, Poland,

Portugal and romania.

A Deutsche Bank study with 55 major It de-

cision makers in Europe found that tCS and

wipro were the most favoured vendors. tCS

has a greater revenue exposure to Germany

and France, which gives it an advantage in

this market. wipro offers the best near shore

delivery alternatives and has recently made

some key strategic acquisitions.

Infosys is said to offer high-end services on

par with European and American counter-

parts, but is not very flexible when negoti-

ating commercial terms. HCL’s acquisition of

Axon and strong infrastructure management

capabilities has enabled it to win key deals

in Europe but is still not viewed as a tier-1

player.


India in Austria | Past Events

Flag Hoisting Ceremony in commemmoration of the 62nd Anniversary of India‘s republic DayJanuary 26th, 2012 | India House (Vienna)

Compiled by the Indian Brand Equity Foun-dation (IBEF), this report has the intention of providing busy executives a short over-view of the Indian Engineering Design and Development Industry and the opportuni-

ties within. Download this report here!

DOWNLOAD THE

REPORTNOW!

http://www.ibef.org/download/Engineering-design-and-development_20112.pdf

http://www.ibef.org/download/Engineering-design-and-development_20112.pdf

Industry


ENGINEErING DESIGN AND DEVELoPMENtIndian Industry Sector Close-Up

India’s engineering design and develop-ment industry is growing rapidly as the country makes deeper inroads into the

global engineering space. the advent of computers changed the task of engineering into modules that can be outsourced by a firm while it concentrates on its core activities. At the same time, vendors to whom the work is outsourced are usually better equipped to perform these tasks as it forms their core competency. the outsourcing initially limited to onshoring within developed markets, later extended to offshoring from developed mar-kets to low-cost countries.

Engineering services evolved into an out-sourcing model that enhanced efficiency of a firm, improved processes, led to cost ad-vantage and lowered time-to-market for the product. Indian Engineering Services out-sourcing (ESo) became a new segment of the Indian outsourcing industry, which also includes business process outsourcing (BPo) and information technology outsourcing (Ito). ESo differentiates itself from the other two in terms of the high level of domain ex-pertise required.

the fledgling ESo outpaced growth in the more robust BPo and Ito segments during FY04 -FY11 and presently accounts for 16% of the total outsourcing market in the country. ESo’s primary focus is the export market as domestic engineering expenditure is gener-ally done in-house. while hi-tech and auto-motive industries are the major markets con-tributing 75% to total revenues, aerospace is set to be the sunrise industry over the next decade.

the industry is transforming from volume-based to value-based as clients’ confidence in the Indian ESo is increasing. India is placed at a unique position of advantage with the largest talent pool of low cost, English speaking and experienced engi-neers. Having recognized the potential in the engineering space India has provided the required policy support for its further growth. Large foreign firms that are keen on entering the market to cater to the signifi-cant local demand, also tend to forge local subcontracting relationships to benefit from vendors’ knowledge about the local needs. Local players, simultaneously, are expanding outside India through acquisitions to enhance their domain expertise.

Global engineering expenditure is projected to increase to USD1100 billion by 2020; also,

the share of offshore work within the same is estimated to grow from about 4.5% presently to about 15 -20% during this period. Consid-ering India’s unique position of advantage, and India’s successful track record in other outsourcing formats of Ito and BPo, the country’s market share in global engineer-ing services space is set to rise from 20% in 2009 to 25 -30% by 2020. this potentially means the industry revenues for India to be poised to reach USD40 -50 billion during this period.

ExPortS

Engineering exports include transport equip-ment, capital goods, other machinery/equip-ment and light engineering products like castings, forgings and fasteners.

Going by the data compiled by the Engi-neering Export Promotion Council (EEPC), the apex body of engineering exporters, engineering consignments for the month of September 2011 stood at US$ 7.1 billion. By far in 2010-11, engineering goods have been the largest contributor (with US$ 60 billion worth of consignments) to the total In-dian exports of US$ 245.9 billion. Engineering exports for the period April-August 2011 had increased by 125 per cent, aggregating to US$ 40 billion.

KEY DEVELoPMENtS

Bearings maker SKF India is planning for a capacity expansion at its manufacturing unit in Ahmedabad. the unit would majorly cater to sectors like renewable energy, construc-tion and railways.

Also the company, with 27 per cent market share in organised bearings manufacturing sector in India, has recently inaugurated its global technical centre in Bengaluru. the facility plans to hire 400 engineers by 2015 and entail an investment of rs 50 crore (US$ 9.52 million) for its development.

Pune is increasingly emerging as Asia’s inno-vation hub. the city boasts of 124 software product start-up companies, 112 top global research and development (r&D) centres, 24, 000 talented people dealing with vari-ous projects, 17 special economic zones (SEZs) and information technology (It) parks, 18 It-business process outsourcing (BPo) SEZs and over 40 engineering colleges.

Pune nurtures over 12, 000 engineering graduates every year and the number is further expected to swell as more colleges are coming up. Automotive engineering and enterprise software product engineering are key areas of strength within the entire indus-try ecosystem for Pune.

the Indian unit of Germany’s Siemens AG - Siemens Ltd, will venture into engineering, procurement and construction (EPC) solutions business for solar photovoltaic plants in India. the company recognises India as one of the fastest growing renewable energy markets globally and hence, aims to tap the oppor-tunity.

MAJor INVEStMENtS

the miscellaneous mechanical and engi-neering industries’ sector-wise foreign direct investments (FDI) inflows from April 2000 to September 2011 was calculated at US$ 2, 134.21 million, as per the Department of In-dustrial Policy and Promotion (DIPP).

the hydraulics business of wipro and Kawa-saki Heavy Industries - wipro Infrastructure Engineering – will entail an outlay of rs 50 crore (US$ 9.52 million) to set up a facility in Bengaluru that would manufacture hydraulic pumps for excavators. the joint venture (JV), namely wipro Kawasaki Precision Machin-ery, will have a start-up capacity of 4, 000 pumps which would be expanded to 15, 000 pumps by 2015.

tHE INDIAN ForGING INDUStrY

the Indian Forging industry is mushrooming as a major contributor to the manufacturing sector of the Indian economy. Forging indus-try is a basic industry and involves the proc-ess by which metal is heated and is given a particular shape through plastic deformation by applying a compressive force. Usually the compressive force is in the form of hammer blows using a power hammer or a press.

Growth of such basic industries is directly proportional to a country’s GDP growth. And since India’s GDP is fairly estimated to grow in the coming years, forging industry is also anticipated to grow accordingly. In the light of this fact, the Association of Indian Forging Industry (AIFI) has projected that the Indian forging industry is set to enhance by over 20 per cent per annum and attract in-


Industry

Big Player: Engineers India LimitedLeading Indian Company in the Engineering Design and Development Segment

vestments of about US$ 3 billion by 2015 for capacity expansion.

As of now, the rs 15, 000 crore (US$ 2.85 billion)-industry gets 70 per cent of its busi-ness from automotive sector. Moreover, De-ven Joshi, President, AIFI, has revealed that the overall production of forgings increased from 1.8 million tonnes in 2009-2010 to 2.3 million tonnes during the year ended March 31, 2011, registering a growth rate of more than 28 per cent. this is predicted to grow further to 4 million tonnes by 2014.

GoVErNMENt PoLICY SUPPort

the policies of central and state govern-ments in India are geared toward the needs of the ESo industry. A few of them are men-tioned below.

Several Special Economic Zones (SEZs) dedi-cated to the aerospace industry are expect-ed to come up in Bengaluru and Hyderabad during 2011 -13 with investments of over USD1.5 billion. respective state governments are offering attractive tax and financial in-centives to investors.

India’s Defence offset Policy is likely to gen-erate business worth USD10 billion during the 11th Five-Year Plan (2007 -11) as it man-dates a minimum of 30% offset across all ac-quisitions where the purchase cost exceeds USD67 million (INr300 crore). the offset can be in civil aerospace, internal security or de-fence sectors.

Under the 11th Five-Year Plan, the gov-ernment announced a project to further strengthen the patent offices at an estimated cost of USD67 million; while, USD30 million has already been incurred under the 9th

and 10th Five-Year Plans. the government aims to improve physical infrastructure, mod-ernize It infrastructure and create awareness among stakeholders and users through sen-sitization programmes and publicity material.

roAD AHEAD

Indian Er&D service industry has been quite instrumental in establishing India as a design and innovation hub by speeding-up innova-tion and application. Experts believe that this kind of exponential growth will make India one of the major global players with better domain capabilities and establish the country as a pioneer in the Er&D space.

on the similar lines, NASSCoM anticipates that the market for Er&D services would in-crease by over four times to touch US$ 40-US$ 45 billion by 2020.

Engineers India Limited (EIL) was set up in 1965 to provide engineering and re-lated technical services for petroleum

refineries and other industrial projects. EIL is working under the administrative control of Ministry of Petroleum and Natural Gas (MoP&NG), Government of India. In addi-tion to Petroleum refineries, with which EIL started initially, over the years it has diver-sified and excelled in various other fields. EIL today has emerged as Asia’s leading design, engineering and turnkey contract-ing company providing a complete range

of project services needed to conceptual-ize, plan, design, engineer and construct projects to meet the specific requirements of its clients in the following fields:

Petroleum refining Petrochemicals

Pipelines offshore oil & Gas

terminals/Storages onshore oil & Gas

Mining/Metallurgy Infrastructure

EIL has been involved in setting up of almost all the large projects that have come up in

India in the oil & Gas Sector in the last four

decades and has also successfully executed

several assignments in the middleğeast and

southğeast Asia. EIL has to its credit more

than 400 major projects successfully com-

pleted and operating smoothly at the rated

capacity, creating an array of satisfied cli-

ents.

In the course of setting up various projects,

EIL has worked with a large number of

process licensors and engineering/construc-

tion/contracting companies worldwide and

is well versed with the latest engineering

codes and practices followed internationally.

trade Shows



overseas Indians

PErSoNS oF INDIAN orIGIN ExPLorE INDIA wItH “KNow INDIA ProGrAMME”18th Know India Programme (KIP) of the Ministry of Overseas Indian Affairs

PrAVASI BHArAtIYA DIVAS 2012Key Takeaways for Overseas Indians

twenty-eight people of Indian origin (PIos) from six countries participated in the 18th Know India Programme (KIP) of

the Ministry of overseas Indian Affairs, held from September 21 to october 11.

welcoming the participants, Union Minister for overseas Indian Affairs and Civil Avia-tion Vayalar ravi said, “the purpose of or-ganising KIP is to provide a unique forum for students and young professionals of Indian origin to visit India, share their views and to bond closely with contemporary India.” He also highlighted the role of the ministry in linking “youth diaspora” with their country of origin.

During the three-week unique study pro-gramme, all the participants, aged between 18-26 years, visited rural rajasthan to see places of historical importance and get first-hand experience of the ongoing social de-velopment programmes in the state.

the participants attended lectures in sub-jects like Indian history, economy and plan-ning in Delhi and also visited the All India radio and Doordarshan to attend various interactive programmes.

of the 28 participants, 10 were from South Africa, six from trinidad and tobago, four from Malaysia, five from Fiji, two from Suri-nam and one from Australia. According to the Ministry, objective of the scheme is to en-able overseas Indian youth — foreign citizens of Indian origin and NrIs in the age group of 18-26 years — to undergo short-term courses in the nature of “summer school” to familiarise them with the art & culture, heritage, history, social and economic development of India.

Key Features of the “Know India Programme”

the scheme as envisaged is implemented in partnership with select Indian universities/in-stitutions of repute. the academic credit line and professional excellence of the university/deemed university/institutions is one of the criteria for selection under the programme

Academic content: to facilitate understand-ing of contemporary India and its develop-ment, political and financial systems, eco-nomic, social and administrative structures

Cultural content: to help the participants to understand the Indian experience with expo-sure to Indian mythology, history, arts, handi-crafts, dance, music, cuisine, languages and by interaction with Indian students

Visits: organised to different institutions and industries of importance as also rural visit to allow the participants to gain first hand ex-posure to India

the Pravasi Bharatiya Divas, which is celebrated every year between Janu-ary 7 & 9, by the Indian government in

an effort to reach out to the 28 million Indians overseas, entered its 10th year last week in Jaipur. January 7 was chosen for PBD to commemorate the day that Mahatma Gan-dhi arrived back in India from South Africa to join India’s freedom movement. this year, the event was held in Jaipur and had participa-tion of 1800 delegates - the highest ever - from 50 countries.

In what is seen as the end of a long wait,

non-resident Indians will now be allowed to vote in the Indian elections. the Prime Min-ister Dr Manmohan Singh announced at PBD 2012 that the government has issued notifications for registration of overseas vot-ers under the representation of People Act and non-resident Indians can now vote in the Indian elections.

those NrIs who have registered with the embassies of their respective countries of stay, will be eligible to vote from the upcom-ing assembly elections in five states including Uttar Pradesh, Uttarakhand, Punjab, Goa

and Manipur. Postal ballot or online vot-ing, however, has not been granted and the NrIs who want to vote will have to be present in their home constituencies to cast their ballot in person during the elections.

the government has also initiated an effort to spruce up its existing People of Indian ori-gin and overseas Citizen of India schemes. the two schemes will now be merged, thus rectifying some problems and overlaps be-tween the two. Foreign spouses of overseas Indian cardholders will now become eligible for the overseas citizen of India cards - which

the content of the programme includes:

• taking part in cultural programmes

• Exposure to yoga

• Presentations on the country, the con-stitution, political process, etc

• Interaction with faculty and students at a prestigious university/college/ institu-tion

• Presentation on the industrial develop-ment and industrial visits

• Visit to a village to develop under-standing of the typical Indian village life

• Exposure to Indian media and film in-dustry

• Interaction with NGos and organi-sations dealing with women-related issues

• Visit to places of historical importance

overseas Indians


5 SECtorS IN INDIA tHAt ArE HIrING NrIs AND ExPAtS rIGHt NowWork Opportunities for NRIs and Expats

have proved very popular among people of Indian origin who have acquired citizenship of other countries.

Lately there has been a surge in workers go-ing to work in the Gulf and other areas from the north Indian states including rajasthan and Uttar Pradesh. In an effort to reach out to these workers, an office of the Protector of Emigrants has been set up in Jaipur. Earlier, they would have to travel to Delhi for their immigration formalities. the city will also have a migrant resource centre to provide support to overseas Indians and emigrating workers.

the government has also unveiled a new e-migrate scheme to provide end-to-end online solutions for the emigration system. this will link semi-skillled and unskilled workers who go for jobs overseas, offices of the protector of emigrants, recruiting agencies, immigra-tion officials, employers and Indian missions abroad.

In the past few years, the Indian government has entered into social security agreements with various European nations which ben-

efit the Indian professionals who work there. these agreements are now being expanded into labour mobility partnership agreements which are being expanded to cover stu-dents, academics and professionals, besides skilled workers. Such pacts are being nego-tiated with the Netherlands, France, Aus-tralia and EU.

one of the highlights of the Pravasi Bharati-ya Divas this year was the launch of a new pension and life insurance fund for over-seas Indian workers by the government. the scheme will encourage, enable and assist overseas workers to voluntarily save for their return and resettlement in their old age. It will also provide a low cost insurance cover against natural death.

the ministry of overseas Indian affairs has announced that it will undertake an ethno-graphic study of the vast and diverse body of people of Indian origin across the world, through its think tank the Indian Council of overseas Employment. Such a database has never been undertaken before and the

mapping will benefit both the Indian govern-ment and the communities of people of In-dian origin around the world.

In a clear message that the government is serious about reaping the demographic divi-dend and in an effort to position India as a global supplier of skilled and trained work-force in the coming decades, the ministry of overseas Indian affairs has drafted a scheme for skills development. It is aimed to train over 10 million youth over the next two five-year plans and enable workers to move up the value chain and access better jobs overseas.

the ministry of health made a strong pitch to Indians overseas during the PBD and urged them to help in the development of health-care facilities in the country, especially in providing training, knowhow and advanced technologies. Many Indians in the Gulf and western countries have shown interest in setting up hospitals and medical colleges in India. training of medical professionals is an-other area where they can help the Indian government.

Every few months, headhunting firms and recruitment consultants release surveys about hiring trends in the coun-

try and in the recent past, every survey has something for the Non resident Indian. India today, offers better employment opportuni-ties as compared to some of its global peers. But while landing a job in itself might not be difficult, there are some sectors that are keenly looking out to hire those with global experience.

“Some sectors require a certain level of skill and experience that are not available within India.

Companies in these sectors look at hiring from outside India. And if you are an NrI, with these sought after skills, you might just be the right person the company is looking for,” says Aseem Juneja, a cross border tal-ent expert and founder of Indbound.com.

And while the salaries in India tend to be around 40-70% of dollar salaries, because these skills are much in demand, salaries can be much higher. Kris Lakshmikanth Founder CEo of the Head Hunters India Pvt Ltd. Says, “Salaries could go up to 100% of dol-lar salaries in a lot of these cases.”

So which are these sectors? Let’s take a look.

1) HEALtHCArE

Healthcare here mainly includes biotechnol-ogy, contract research and manufacturing, clinical research and pharmaceutics.

According to this E&Y report , the Indian biotechnology sector was valued at USD 4 billion in 2010-11, growing at nearly 21% in value over 2000-2010. It is estimated that as of 2012, the Indian CrAMS sector (Contract research and Manufacturing) will be valued at USD 7.6 billion growing at a CAGr of 47.2% from 2007 till 2012. Express Pharma envisaged that by 2011 India would be conducting 15% of all global clinical trials.


overseas Indians

“India is fast becoming a hub for outsourcing in the healthcare sector,” says Kris Lakshmi-kanth Founder CEo of the Head Hunters India Pvt Ltd, adding, “Multinational com-panies like Pfizer, Novartis, Eli Lilly etc look at India as a skilled and cost effective hub to outsource certain functions. this includes research in areas like stem cell and vacci-nations, contract research and clinical re-search. while the employees of these outfits are largely from within India, the leadership team of these units is typically those with glo-bal experience.”

“typically, those with a post doctoral quali-fication with research experience in the US would fit the bill,” he says.

2) tELECoM

“the telecom sector in India has seen an explosive growth in subscriber base and volumes. However, margins in voice based service are thin and companies are look-ing beyond voice. they are looking at value added services (VAS) and the availability of high bandwidth, upgrades and rollouts of technologies (3G etc) is making that possi-ble,” Juneja explains.

this report from Pricewaterhouse Coopers states: the mobile tariffs in India are one of the lowest in the world and due to hyper -competition in telecom it is not expected to rise in near future. VAS remains only effective tool to increase the ArPU/share of wallet of subscribers. Multilingual content, application support around languages, killer applications and readiness of handsets could drive over rs 55,000 crore of VAS revenue by 2015.

with the launch of 3G services and expect-ed launch of high bandwidth BwA services, VAS currently has reached its inflexion point. the constituents of VAS ecosystem such as mobile operators, content creator, handset manufacturer will need to show greater col-

laboration to achieve full potential of VAS.

“Companies need people to build applica-tions and bring innovative services to the ta-ble. And currently, much of these skill sets are only available in the developed markets like the US,” Juneja says.

3) INFrAStrUCtUrE

According to this McKinsey report India’s Eleventh 5-year plan envisages infrastruc-ture investments of close to USD 500 billion with USD 430 billion of this in the core trans-port and utility sectors. About one fourth of this is expected to be met through Public Pri-vate Partnerships.

As the Government in India slowly opens up the infrastructure sector to private com-panies, the need for experts in this area is increasing.

“Be it building ports, roads, even nuclear plants, private companies are looking to hire individuals who have the experience in infra-structure development,” Juneja says.

Having said that, Lakshmikanth adds, “In this sector, companies are looking at experts from countries like Australia and not so much the US. the infrastructure development in the US happened a long time back. the more modern developments have happened in countries like Australia.”

4) E-CoMMErCE

the entry of Amazon.com in India has cast away any doubts about the future of Ecom-merce in India. this report says that some USD 3 billion worth of e-commerce was transacted in 2011. And, according to Helion Venture Partners, USD 20 billion worth of e-commerce will be done in five to seven years, with 12-15% of shopping going online in this period.

“As Indian Ecommerce and deal companies like Flipkart, Snapdeal etc become popular there is an increasing need for people who have worked in Ecommerce environments - those who can create infrastructure to han-dle large traffic, build applications, enhance user experience etc,” says Lakshmikanth.

Companies in the US are far ahead in terms of Ecommerce, so as an NrI who has worked in that sector in the US, you will be much sought after in India.

5) INForMAtIoN tECHNoLoGY

while India continues to remain a hub for cost effective technology operations, certain niche technology operations still require glo-bal expertise.

“technology companies in India for instance might be building a DNA sequencing pro-gram for multinational healthcare companies. the functional support for this program will most likely come from someone who has that kind of research background which is avail-able in developed markets” Lakshmikanth says. Juneja too cites the example of pharma analytics as an area that needs expertise from developed markets.

Another area - large logistics and supply chain companies that use Indian technol-ogy companies to build their modules. “these companies typically need global experts to offer functional support,” Juneja says.

In addition to the above 5, smaller sectors in areas like wine making, gaming etc which are starting to become popular in India are hiring those with global expertise. According to some estimates, wine consumption in In-dia is expected to grow by 25-30% annually between 2009 and 2012 and the Indian Gaming Industry is expected to grow at a compounded annual growth rate of 32% to rs. 3,100 crore by 2014.

DIASPORA QUIZ

1) He is a former professional French football midfielder, poker player and actor who served as the chairman of the football vlub L‘Entente SSG and represented his country at the 2006 FIFA world

Cup in Germany. Name this player

2) An award-winning author, poet, and teacher of creative writing, her work has been published in over 50 magazines and included in over 50 anthologies. Name this author of the Mistress of Spices

and Sister of my Heart

ANSwEr: 1) Vikash Dhorasoo 2) Chitra Bannerjee Divakaruni

tourism


NAGALANDIndian State Profile

Nagaland, the land of the hospitable and warm Nagas, lies in the corner of India’s North-East-bordering My-

anmar. It has always evoked a sense of awe and wonder in the minds of people includ-ing the visitors. Although most of the Nagas have now become Christians, they still pre-serve the remnants of their early animist cul-ture and ancient traditions.

Historically, the Nagas have always been brave warriors. they consider the safety and security of their guests as an honour and prestige and will never allow any harm to be done to any of their guests/visitors.

topographically, Nagaland is mostly a hilly region with a pleasant and salubrious cli-mate throughout the year, except for a small region in the foothills.

Nagas are by race of the Mongoloid stock and speak tibeto-Burman group of languag-es. But English and Hindi are widely spoken and language is no problem in Nagaland.

Colourful life and culture are an integral part of the 16 officially recognized Naga tribes of Nagaland. these 16 tribes are different and unique in their customs and traditions. these customs and traditions are further translated into festivals which revolve around their ag-ricultural cycle. Songs and dances form the soul of these festivals through which their oral history has been passed down the gen-erations. Nature has been kind to the Nagas and their land. though by virtue of her natu-ral beauty, the whole of Nagaland is a tour-ist hotspot, yet certain exceptionally charming places have been identified and developed by the Government to promote tourism in the state, some of which are highlighted in the website.

this focused approach helps in providing easy access to travelers of all categories-tourists, researchers, backpackers, ecologists etc. Since this little explored state is still de-veloping and many more places remain ‘un-marked’-making them even more exclusive and fascinating to explore…

For MorE INForMAtIoN, CoNtACt

KoHIMA CItY, CAPItAL oF NAGALAND

NAGA trIBESMEN

DZUKoU VALLEY

trEKKING wItH NAtIVES IN NAGALAND

India tourism FrankfurtBaseler Str. 48 / D-60329 Frankfurt

tel: +49 (69) 242949-0Fax: +49 (69) [email protected]

Exhibition

NAGA PEoPLEJEwELrY AND ASHES

February 1st - June 11th10am-6pmMuseum of EthnologyNeue Burg, Heldenplatz 1010 Vienna


Embassy Past Events

FLAG HoIStING CErEMoNY oN tHE 62ND ANNIVErSArY oF INDIA‘S rEPUBLIC DAYJanuary 26th, 2012 | India House (Vienna)

Embassy Past Events


rECEPtIoN IN CoMMEMorAtIoN oF tHE 62ND ANNIVErSArY oF INDIA‘S rEPUBLIC DAYFebruary 1st, 2012 | Museum of Ethnology (Vienna)


Embassy Upcoming Events

INDIAN MoVIE EVENING: AJAB PrEM KI GHAZAB KAHANI (UNIQUE LoVE’S AMAZING StorY) February 9th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Vienna)

INDIAN MoVIE EVENING: UDAAN (FLIGHt)March 8th, 18:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Wien)

SEMINAr: PrESErVING rICH CULtUrAL HErItAGE oF wEStErN HIMALAYAN NAKo VILLAGEBY INSTITUTE OF CONSERVATION OF THE UNIVERSITY OF APPLIED ARTS VIENNA February 23th, 17:30-19:00 | Indian Embassy Business Centre (1st Floor, Kärntner Ring 2, 1010 Wien)

Genre: Comedy

Directed by: rajkumar Santoshi

Starring: ranbir Kapoor/Katrina Kaif

released: November 2009

Duration: 161 Minutes

Language: Hindi

Subtitles: English

Synopsis: Prem’s (ranbir Kapoor), fundas in life were very simple - be happy... make others hap-py... keep the town happy. It may have been a case of mistaken identity that led Prem to kidnap Jenny (Katrina Kaif). And it was sheer greed that made Prem try to pull a fast one over her father. As for sweet and simple Jenny, brought up by indifferent and uncaring foster parents, all she longed was to love and be loved in return. And it was love and only love for Jenny that made Prem turn over a new leaf. From hardly working vaga-bond he began working hard to make money…From a besotted romeo he became a mature and thoughtful Majnu who put Jenny’s happiness above everything else. As for Jenny, she was so much in love with the idea of being in love that she was blinded by the reality that was staring in her face... that’s when she realises that she had made a mistake with her love.

Programme:

PArt 1. Screening of the documentary “Close to Heaven. Preserving Living Culture in Nako” on the Institute’s Conservation Nako-Project under Prof. Gabriela Krist. the film of orF director Gundi Lamprecht shows the long-term project activities to preserve the rich cultural heritage of western Himalayan Nako village.

PArt 2. Short lectures by university lecturers Dr. Martina Griesser-Stermscheg, DI tatjana Bayerova, and Dr. Maria Gruber, as well as the intern at the Institute of Conservation from the National Museum Institute New Delhi (NMI), tanushree Gupta. Lectures will present the fruit-ful cooperation between the NMI and several Indian institutions and highlight their joint activiti-ties: the conservation and research on the Nako wallpaintings with the NrLC, the ongoing work-

shops and seminars for Indian conservation and

museum professionals at the NMI, and the very

recent field work campaign for the SAVE DANG-

KHAr initiative in cooperation with the technical

University of Graz.

this seminar opens a series of such events, which

will focus on India-Austria cooperation in the field

of academics, culture and business..

Due to limited capacity, seats will be

given on a first come, first served ba-

sis. therefore, you are highly encour-

aged to reserve your seats online at

www.indianembassy.at or via phone

at +43 1 505 866633 (Ms. Lily John).

Due to limited capacity, seats will be

given on a first come, first served ba-

sis. therefore, you are highly encour-

aged to reserve your seats online at

www.indianembassy.at or via phone

at +43 1 505 866633 (Ms. Lily John).

Genre: Drama

Directed by: V. Motwane

Starring: rajat Barmecha/ronit roy

released: July 2010

Duration: 138 Minutes

Language: Hindi

Subtitles: English

Synopsis: After being abandoned for eight

straight years in boarding school, rohan returns

to the small industrial town of Jamshedpur and

finds himself closeted with an authoritarian fa-

ther and a younger half brother who he didn’t

even know existed. Forced to work in his father’s

steel factory and study engineering against his

wishes, he tries to forge his own life out of his

given circumstances and pursue his dream of be-

ing a writer. Udaan was India’s first official selec-

tion at Cannes in 7 years. Additionally, the movie

won the “Best Audience” and “Best Music Score”

Awards at the Giggoni Film Festival Italy, 2010.

india newsletter 02.2012

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