September_ 2010 - Embassy of India by fanzhongqing


									                                                         India Economic News
No. 9/10                                                                                       September, 2010

                Contents                                         NEW AMBASSADOR OF INDIA TO THE
New Ambassador Of India To
The Netherlands ........................ 1                 H.E. Ms. Bhaswati Mukherjee, presented her credentials as
India To Witness 9-9.5 Per Cent
Growth Rate By 2013-15:
                                                           the Ambassador of India to the Kingdom of the Netherlands
Morgan Stanley ......................... 2                 to Her Majesty the Queen of the Netherlands on the 1st
Rupee Becomes 5th Currency To                              September, 2010. She is also concurrently accredited as
Get A Symbol ............................. 2               the Permanent Representative of the Republic of India to
PM Approves Setting Up Of                                  the Organisation for the Prohibition of Chemical Weapons.
National Innovation Council .... 3
India To Launch Satellite To
Monitor Sea Levels .................... 3                  A very senior career diplomat from the 1976 batch of the
Total Investment In Infra                                  Indian Foreign Service, Ambassador Mukherjee has served
Projects Higher At 53%: RBI                                in various Indian Missions abroad including Paris, Cairo,
Study ........................................... 4
Govt Projects Over $ 21 Bn
                                                           New York and Geneva. She is fluent in French. She has
Investment In Food Processing 4                            also held different senior positions at the Ministry of
Manufacturing Expands For                                  External Affairs in India including Joint Secretary in the
The 16th Consecutive Month                                 Europe West Division. Prior to her present appointment as
In July 2010 ............................... 5
                                                           Ambassador of India to the Netherlands she was the
Forex Reserves Rise By $1
Billion To $283 Billion............... 5                   Ambassador/Permanent Representative of India to
M&A Deals Treble To Near US$                               UNESCO (2004-2010).
50 Billion From 2009 Level ....... 6
Auto Component Sector To See                               During her diplomatic career of over 34 years, she has
4-Fold Growth By 2020 ............. 7
Drug Market Grows 20% In H1;
                                                           handled a wide range of bilateral and multilateral
Foreign Firms Tighten Hold ..... 8                         assignments covering political, economic and cultural
Emerging Logistics Hub Near                                fields. She has several publications to her name and has
Chennai ...................................... 8           participated in briefings, seminars and Round Tables on
Dr Reddy's Launches Biosimilar                             questions relating to the United Nations Human Rights
Drug For Anaemia Treatment . 9
Marck Biosciences To Launch                                Programme, the World Conference on Human Rights, and
Paracetamol IV In Plastic                                  the human rights of women and the girl child, notably in
Packaging In India By Year-End                             Asia as well as issues relating to UNESCO’s areas of
 .................................................. 10     competence, particularly in Education and Culture. She has
Jubilant Signs $33-M Contract
Manufacturing Deal With US Co
                                                           also extensively participated in briefings and seminars
 .................................................. 10     relating to the EU, its enlargement and the implications of
Nissan To Export Micra                                     this enlargement for India as well as on seminars and talks
Through Ennore Port Soon .... 11                           on cultural diversity, intangible cultural heritage and
                                                           Education for All. She was Secretary of the Indo/French
                                                           Forum, Co-chaired on the French side by Mr. Jean
                                                           Francois Poncet, former Foreign Minister of France (1999 -
                                                           2004) as well as Secretary of the India/EU Round Table &
                                                           Chairman of the India EU Joint Working Groups on
                                                           Terrorism & Consular Issues respectively.
2                                                                           India News


Witnessing      continuing     would increase, raising        into the workforce. While
structural         reforms,    the GDP even faster.           India will be the largest
globalization    and     a                                    contributor to the world’s
demographic      dividend,     Moreover,      globalization   workforce — all of 136
India is bound to increase     gives     additional     job   million people — over the
its growth rate to 9-9.5       opportunities,         extra   next 10 years (fully a
per cent over 2013-15,         capital to augment rising      quarter of the entire
even as China will             domestic savings and           world’s          additional
moderate down to 9 per         additional       know-how.     workforce) in comparison
cent by 2012 and to 8 per      Basing its analysis on the     China will add just 23
cent by 2015, as per a         above cited factors, the       million.
new report by Morgan           report expects India to
Stanley.                       become       the     world’s   The report also assumes
                               fastest-growing economy.       that there would be an
India has one of the           Underlying the forecast is     increase     in    people
lowest     median      ages    the assumption that India      completing            their
among         the     major    will significantly increase    education, making India
economies and with a           its     expenditure       on   the largest contributor to
large      working      age    infrastructure and in plant    the pool of tertiary
population; India is bound     and              machinery.    educated workforce in the
to reap the twin effects.      Infrastructure expenditure     world.
One, it will allow people to   has gone up from 5.4% of
save a large proportion of     GDP in 2005 to 7.5% in         All these changes would
their income, thereby          2009 and is poised to go       be      supported     and
increasing the country’s       up to 8% of GDP in 2010.       complemented by further
rate of savings and two, it                                   reform by the government
will boost the number of       Over      2012-17,     the     in fiscal consolidation,
people who work and            forecast is that India’s       opening up of retail to
contribute to growth. With     infrastructure      spend      foreign direct investment,
structural reforms the         would be US$ 1 trillion as     public sector reform and
additional workers find        compared with US$ 530          divestment,           and
work and the sheer rise in     million over the previous      improvement             in
the number of workers          five-year period.              governance that would
would increase gross                                          reduce transaction costs.
domestic product (GDP)         Another assumption is on
growth. Also with reforms,     the quantity and quality of
productivity per worker        the young people coming


The rupee is all set to get    Roman letter ‘R’ with the      company of four ‘elite’
a distinct identity in the                                    currencies which have
form of a new symbol.
The Union Cabinet gave
                               Devnagri ‘Ra’   (`).           similarly distinct identities
                                                              — the US dollar, euro,
its approval to the symbol                                    yen and British pound.
which     combines      the    The symbol will catapult
                               the  rupee   into   the        (continued on next page)
India News                                                                                3

The symbol has been             currencies     are    also     chosen after a public
designed by Mr. D. Udaya        designated as rupee or         competition was held
Kumar, an IIT Bombay            rupiah, such as Pakistan,      among resident Indian
post-graduate, and will         Nepal, Sri Lanka and           citizens inviting entries for
standardize             the     Indonesia,’’ I&B Minister,     a symbol which ‘‘reflects
expression for the Indian       Mrs. Ambika Soni, said.        and captures the Indian
rupee     in      different     The symbol, she added,         ethos and culture’’. Over
languages, both within          would reflect the strength     3,000       entries     were
and outside the country.        and robustness of the          received. These were
                                Indian economy.                evaluated by a jury
‘‘It’s a big statement on                                      headed by the RBI
the Indian currency. It         Till now, the Indian           Deputy Governor, which
would distinguish the           currency  was   simply         included experts from
rupee       from    those       denoted by Rs or INR.          reputed art and design
countries          whose        Kumar’s symbol was             institutes.


The Prime Minister, Dr          Infrastructure         and     delineate         appropriate
Manmohan Singh, has             Innovations.                   policy initiatives within the
approved the setting up of                                     Government required to
a National Innovation           The council has been           spur innovation. It will
Council to prepare a road       given the mandate to           also promote the setting
map for the decade of           evolve an Indian model of      up of Sectoral Innovation
Innovation     2010-2020.       innovation focusing on         Councils        and     State
The National Innovation         inclusive   growth     and     Innovation Councils. (The
Council will be headed by       creating an appropriate        Hindu               Business
Mr Sam Pitroda, Adviser         eco system conducive to        Line: August 17, 2010)
to the Prime Minister on        foster            inclusive
Public         Information      innovation.     It      will


India will launch a satellite    “SARAL is a joint project     Technology and Earth
next year to monitor sea        of the Indian Space            Sciences,      said.   The
water         levels       in   Research       Organisation    satellite bus is under
collaboration with the          (ISRO) and the French          fabrication at ISRO, while
French National Space           National Space Agency          the integration and testing
Agency. The satellite,          (FNSA). The ALTIKA and         of the payloads are
called Saral, will carry an     ARGOS payloads are             ongoing at the French
altimeter (ALTIKA) for          built and supplied by the      space      agency.     The
studying the sea surface        French space agency.           satellite is likely to be
heights and an ARGOS            The satellite building and     launched in 2011, the
payload, which is a             launching       are     the    Minister said. (The Hindu
satellite-based        data     responsibilities of ISRO,”     Business Line: August 11,
collection platform.            Mr Prithviraj Chavan,          2010)
                                Minister of Science and
4                                                                           India News


According to a study on         picking up, the business      in metals and metal
corporate investments by        sentiments have also          product     sector    with
the Reserve Bank of India       improved,” said the study.    aggregate share in total
(RBI),       the      total                                   project       expenditure
investments              in     In FY10, the top five         increasing to 20.3 per
infrastructure projects at      sectors that attracted        cent followed by projects
US$ 63.2 billion was            robust        investments     in construction (8.5 per
about 53 per cent higher        include power, telecom,       cent) and cement (3 per
in 2009-10 as compared          metal and metal products,     cent). The share of each
to US$ 32.04 billion in         construction and mining       of the remaining industry
2008-09.                        and quarrying.                groups including food
                                                              products, sugar, textiles,
Referring to the recent         Investment       in     the   paper      and      paper
improvement in business         infrastructure sector in      products,    coke     and
sentiments on the back of       recent years was largely      petroleum products, and
improved      outlook    on     led by high value projects    hotels and restaurants,
demand conditions, the          in power and telecom. In      was less than 3 per cent.
study said this indicates       each of the last three
that investment in 2010-        years, the share of           The maximum number of
11 can be maintained            expenditure pertaining to     projects        sanctioned
around previous year's          power projects in the total   assistance     in     FY10
level given the continued       cost of all projects was at   belonged to metal and
thrust on infrastructure by     around 30 per cent. This      metal products at 146
the government.                 reflects the predominance     followed by infrastructure
                                of investment intentions in   at 121 and textile at 82.
“Outlook     for     demand     the power sector. At the
continues      to     be    a   same         time,      the   Continued       thrust   on
significant factor driving      investment intentions in      public-private partnership,
investment        intentions.   telecom projects appear       according to the study, is
With industrial output          to have re-emerged with       a positive for stimulating
exhibiting             strong   their share rising to 10.2    investment, especially in
acceleration, particularly      per cent in 2008-09 and       power,      telecom     and
in recent months, there         21.2 per cent in 2009-10,     construction        projects
has been a significant          the study said.               given      the      growing
revival in credit demand.                                     demand in these sectors.
With     inventory      cycle   Corporates    continued       (The Hindu Business
turning and order books         making fresh investment       Line: August 16, 2010)


The Union Ministry of           this is expected to come      by it. The Government is
Food           Processing       from           Government     attempting to increase
Industries has projected        agencies and venture          this capacity by another
investments to the tune of      capital     firms,    the     10 percentage points,” Mr
$ 21.38 bln during the          remaining amount would        K. Rajeswara Rao, Joint
12th Plan Period to             come from entrepreneurs.      Secretary, Ministry of
increase the country's          “The country is able to       Food Processing, said.
food           processing       process only 10 per cent      (continued on next page)
capacities. While 10% of        of all the food produced
India News                                                                          5

Addressing the inaugural     Institute for Micro, Small    lack of sufficient food
of national workshop on      and Medium Enterprises        processing facilities. (The
executive   development      (NIMSME), he said the         Hindu             Business
programmes     in   food     country lost around $ 12      Line: August 16, 2010)
processing at National       bln annually because of

                          IN JULY 2010

India's     manufacturing    according to Mr. Frederic     manufacturing       sector,
witnessed an upswing         Neumann, co-head of           China's PMI dropped to
trend in July 2010 on the    Asian         Economics       51.2 in July 2010, as per
back of new orders and       Research, HSBC.               official data released on
better export demand, as                                   August 1, 2010. "It's a
per a private survey. The    PMI, a survey-based           good reading, especially
HSBC Markit Purchasing       compilation      of     key   compared to China where
Managers' Index (PMI)        manufacturing data, is        production was a bit
went up to 57.6 in July      considered       a    good    softer," said Mr. S.
2010 from 57.3 in June       leading     indicator    of   Varma, Economist at
2010,     marking     16th   manufacturing activity. An    Nomura Holdings.
consecutive month of         index level above 50
expansion               in   indicates expansion in        The Centre for Monitoring
manufacturing.               manufacturing, whereas a      Indian Economy (CMIE)
                             PMI reading of below 50       expects Indian industry to
The factory output index     indicates a contraction in    start fresh projects that
of the PMI rose to a four-   manufacturing.         The    will entail an investment
month high of 62.3 in July   HSBC India Report on          of about US$ 140.6 billion
2010,              raising   Manufacturing is based        in 2010-11.
expectations of further      on data compiled from
expansion     in   India's   monthly       replies    to   In his monetary policy
manufacturing      growth    questionnaires sent to        review for April 2010, Mr.
story.                       purchasing executives in      D Subbarao, Governor,
                             over 500 manufacturing        Reserve Bank of India
"India is on a roll. The     companies. The variables      (RBI) on July 27, 2010
economy     was     given    in the survey include         revised     the       gross
another leg up in July as    employment, output, new       domestic product (GDP)
new orders continued to      orders, suppliers' delivery   growth target for 2010 to
pour in. Even the export     times, and stock of items     8.5    per   cent,     said
sector appears to be         purchased.                    "Domestic     drivers    of
holding up well, despite                                   growth are robust."
worries   over    cooling    Even as India saw an
demand           abroad,"    expansion    in   its


Foreign       exchange       account      of   inflows     of non-dollar assets in
reserves rose sharply        through    the   portfolio    reserves.
during the week ended        investment route and          (continued on next page)
July 23, largely on          partly due to revaluation
6                                                                           India News
The      country’s   forex     comprising dollars, British    International    Monetary
reserves rose by $1,037        pounds and euro, among         Fund - and the reserve
million in the week ended      others.                        capital     with    IMF,
July 23. The reserves are      All other components of        remained       unchanged
at $282.9 billion. The         reserves, including the        during the week. (The
entire pile-up in reserves     value of gold in reserves,     Economic Times: August
during the week was on         special drawing rights, or     02, 2010)
account of the growth in       SDRs — the reserve
foreign currency assets        currency      with      the

India Inc's merger and         The number of M&A              According to the report by
acquisitions (M&As) have       deals so far this year         VCCEdge,            energy,
touched nearly US$ 50          stood at 411. Indian           healthcare and materials
billion level during the       companies announced 64         each has witnessed deals
period January-July 2010,      M&A deals in June 2010         worth over US$ 1 billion.
over three times the total     with a total value of nearly   The biggest deal in the
in 2009. M&A deals in          US$ 14.1 billion. March        month of July was
2009 were worth about          has been the biggest           Reliance            Natural
US$ 16 billion.                month in terms of M&A          Resources Ltd's merger
                               deals so far this year,        with another Anil Ambani
The deal valuations are        which saw 72 deals worth       Group      firm    Reliance
also witnessing a revival      a total of US$ 14.35           Power in an all-stock deal
in line with the recovery in   billion.                       valued at US$ 1.56
stock markets and overall                                     billion. The top five deals
economy, besides the           VCCEdge further pointed        accounted for 88 per cent
value of M&A deals has         that the number of             of total M&A deal activity
risen. According to data       domestic deals stood at        in July 2010, VCCEdge
compiled by research firm      21 in July 2010 and the        added.        The     deals
VCCEdge, the M&A deal          value of domestic deals        included              Fortis
value increased by almost      went up to US$ 2.03            Healthcare's 25.37 per
five-times to US$ 5.4          billion in the month, from     cent stake in Parkway
billion in July 2010, up       US$ 282 million in July        Holdings for US$ 1.12
from US$ 1.1 billion in        2009. The value of             billion; Japanese major
July 2009.                     inbound       deals   rose     JFE Steel's US$ 1.03
                               sharply year-over-year to      billion purchase of 14.99
The cumulative M&A deal        US$ 2.01 billion in July       per cent stake in JSW
value so far in 2010 from      2010 from US$ 744              Steel; ABB's US$ 965
January to July has            million. The average deal      million buyout offer for
touched US$ 49.7 billion,      size rose to US$ 216           ABB India and Piramal
as compared to US$ 16.3        million last month, from       Diagnostic Services' US$
billion in the whole of        US$ 61 mn in July 2009.        128 million sale to Super
2009, VCCEdge said in
                                                              Religare Lab (SRL).
its monthly deal report.

Soon after the apex state-     MW, the Government of          unveil Solar Park Scheme
owned            electricity   Gujarat is gearing up for      to facilitate the interested
company Gujarat Urja           yet another round of long-     investors in solar power
Vikas    Nigam     Limited     term     green     power       project.
(GUVNL)      signed     the    purchase.             The      (continued on next page)
PPAs with 26 solar power       department of energy and
project developers for 365     petrochemicals will soon
India News                                                                                    7
It may be mentioned that      government land under            have fixed tariff for solar
GUVNL’s     PPAs      are     Solar Park Scheme.               power. And GUVNL is the
expected to bring in          A senior government              first state utility to have
investments worth Rs 55       official revealed that the       signed record PPAs for
bn by December 2011           solar     power        project   solar power. In August
under the Solar Power         developers would not be          2009, the government
Policy 2009 with a target     allocated land other than        assigned 716 MW of
to install 500 MW by          that of in the Solar Park.       generation capacity to 34
2014.                         In order to prevent              developers from Indian
                              developers               from    and       overseas      and
According to the renewed
                              speculations,              the   GUVNL has so far inked
framework for capacity
                              department will not allow        PPAs for 365 MW.
allocation, a developer
                              investor      any       equity
opting      for      solar                                     Gujarat had witnessed
                              dilution for first five years.
photovoltaic platform will                                     unprecedented
                              The project developer can
be given maximum of                                            enthusiasm in committing
                              sell its stake only to the
allocation 25 MW while                                         investments    in   solar
                              technical partner. Even
investor opting for solar                                      power projects during
                              after equity dilution, the
thermal technology will be                                     Vibrant Gujarat Investors’
                              investor will have to retain
given maximum allocation                                       Summit 2009 following
                              51% stake.
of    50 MW. Project                                           the announcement of
developer will have to        The       Gujarat      State     Solar Power Policy in
choose     between     the    Regulatory Commission            January. (The Economic
private     land      and     is the first state electricity   Times: August 07, 2010)
                              regulator in the country to

The       Indian      auto    five vehicle producing           forecast to cross the 2.2
component          industry   countries in the world by        mln units mark in the
expects to grow by over       2020,”     said    ACMA          same period.
four-fold to $113 bn by       Executive Director Mr.
                                                               ACMA also said the local
2020 as there have been       Vinnie Mehta.
                                                               component          industry
projections of a similar
                              Indian         component         would       create      an
jump in car manufacturing
                              industry is expected to          additional employment for
in the country in the next
                              have revenues of $25 bn          over 1 mln people in the
decade, said (ACMA)
                              in the current financial         next decade. To meet the
Automotive Component
                              year. Given high growth          increased requirement of
                              projections,   the   local       skilled     hands      the
                              component industry is            government has decided
The total passenger car       looking to invest $35 bn         to set up a dedicated skill
production in the country     over the next decade.            development body for the
will jump four times to                                        auto industry to train 25
                              Production    of     two-
reach 9 mn cars in the                                         mn people in the next
                              wheelers    and    three-
next ten years, the                                            decade. The Automobile
                              wheelers are expected to
industry body said in its                                      Skill        Development
                              double to 22 mln units by
forecast report. Although                                      Council - under the
                              2015 and reach 30 mln
a major chunk of this will                                     umbrella of the National
                              units by 2020 driven by
come from the fast                                             Skill        Development
                              current low penetration
growing domestic market,                                       Council (NSDC) - is
                              levels, expanding rural
exports are likely to form                                     expected        to      be
                              sales and growth in
around 35% of the total                                        established    soon,      a
                              exports.     Commercial
market by 2020. “India                                         government official said.
                              vehicles production is           (Economic Times: August 30, 2010)
would be among the top-
8                                                                         India News


India's drug retail market    May,    helped     Abbott     globally. This is one of the
grew 19.6% in the first six   dislodge long time leader     reasons attracting global
months of the year,           Cipla.                        drug makers to India, as
headed by new leader                                        growth     in    developed
American         company      Ranbaxy      Laboratories,    markets like the US and
Abbott Laboratories, as       owned by Japan’s Daiichi      several           European
foreign    drug     makers    Sankyo, having a market       countries     are     either
strengthen            their   share of 4.83% is ranked      stagnant or in single
dominance among the top       third, followed by UK’s       digits.
10 brands sold in the         GlaxoSmithKline       that
country.                      controls 4.28% of the         A series of buyouts by
                              market.                       foreign heavy weights,
By June end, Abbott held                                    including Ranbaxy and
a market share of 7%          Ahmedabad-based Zydus         Piramal         Healthcare
followed by domestic          Cadila is fifth with a 3.8%   (domestic       formulation
heavy weight Cipla that       market share. In June         business)      has     also
controlled 5.3% of the        2008, Japan’s Daiichi         resulted in foreign MNCs
market,    according    to    Sankyo       had     bought   taking three slots among
market research firm          Ranbaxy catapulting it to     the country’s top-five drug
ORG        IMS.       The     the second position then.     makers. Their market
acquisition of Mumbai-                                      share has grown to about
based             Piramal     Last year, the local drug     25% from 15% in just two
Healthcare’s     domestic     retail industry rose 17%,     years. (The Economic
formulation business, with    making it one of the          Times: August 09, 2010)
a 4.2% market share, in       fastest-growing markets


India       has      been     improving      multi-modal    infrastructure. Of these,
experiencing significant      transportation     through    Chennai clearly is a major
development over the last     projects      such      as    logistics hub, and has
decade,       continuously    dedicated freight corridor,   been     attracting  huge
clocking a growth rate of     encouraging          public   investments.
around 8-10 per cent.         private partnership (PPP),
Logistics costs in India      and allowing 100 per cent     Oragadam, being close to
are high at 13-14 per cent    income-tax exemption for      Chennai, is one of the
of GDP compared to 8-9        port          development     fastest growing industrial
per cent for developed        projects.                     towns.    It   owes     its
countries.                                                  strategic advantage to a
                              Several logistics parks       large        manufacturing
The Government has            have come up across           presence, demand base,
been      promoting  the      major cities such as          supplier        presence,
logistics    sector   by      Mumbai,           Kolkata,    established infrastructure
allowing 100 per cent         Chennai and Hyderabad         and excellent multi-modal
FDI, eliminating CST,         and      are    witnessing    connectivity.
introducing         VAT,      significant investment in     (Continued on next page)
India News                                                                             9

Oragadam, has seen              assembled and supplied        manufacturing    of    3G
some major investments          just-in-time to the OEM       products locally at its
by large Indian and global      for assembly.                 Oragadam          facility.
players        (automotive,                                   Sanmina-SCI
FMCG/durables,           and    It has reputed companies      Corporation, a leading
industrial products) during     such as Nissan-Renault,       global        electronics
the last few years due to       Mercedes,        Daimler,     manufacturing    services
a special boost provided        Delphi-TVS,     Komatsu,      (EMS), set up a state-of-
by the Tamil Nadu               GKN Driveline, Apollo         the-art       technology
government               and    tyres, Sundaram Auto          manufacturing campus in
establishment      of    the    Components      Ltd.,  to     the Oragadam Hi-Tech
SIPCOT Industrial Estate        name a few. Renault           Special Economic Zone
covering      approximately     Nissan has set-up a car-      (SEZ).
2,000 acres. Across the         making 640 acres facility
automotive         industry,    near Oragadam with a          In addition, Oragadam
Oragadam represents an          planned investment of Rs      has the advantage of
excellent       hub       for   45.00 bln and full ramp-      being        close       to
manufacturing            and    up capacity of 400,000        Sriperumbudur, which is
distribution, as more than      units per year.               home         to      large
six automotive OEMs and                                       manufacturing companies
over 50 suppliers are           Oragadam, could be a          such as Hyundai, Ford,
located in close proximity      regional    manufacturing     Saint Gobain, Nokia, Dell,
(less than 20 km) of each       and distribution point for    Flextronics and Samsung.
other in the Oragadam-          FMCG products such as         A six-lane highway road
Sripeumbudur         cluster.   biscuits, chips, juices,      (SH57)        is     being
This would enable supply        personal care products,       constructed to connect
of domestic and imported        household          hygiene    these twin towns. Indian
parts in a just-in-time         products      etc.     and    logistics players such as
approach.       Automotive      consumer           durable    DHL, Realtime Logistics,
components and sub-             products such as fridge,      ShriKailash Logistics plan
assemblies       can      be    microwave, TV and air         to set up their respective
shipped from various            conditioners.                 logistics hubs in this
parts of India and from                                       region.     (The    Hindu
ports (for imports) to          Nokia Siemens Networks        Business Line: August 23,
logistics     hubs,     then    recently commenced the        2010)


Dr Reddy's Laboratories                                       third biosimilar drug after
Ltd has launched Cresp,         “Cresp     is   the    only   Grafeel and Reditux. The
the      first     generic      darbepoetin alfa in India.    company has a pipeline
darbepoetin alfa drug in        It will offer patients in     of      another       eight
the    world    for   the       India     an      improved    biosimilars in the area of
treatment of anaemia due        treatment regimen at an       oncology      and    auto-
to chronic kidney disease       affordable price,'' Mr G.V.   immunity. According to Mr
and anaemia due to              Prasad,     Vice-Chairman     Prasad, the company
chemotherapy.                   and CEO, Dr Reddy's,          would launch at least one
Darbepoetin alfa was first      told newspersons.             biosimilar a year. (The
developed and launched                                        Hindu             Business
by Amgen in 2001 under          For the Hyderabad-based       Line: August 10, 2010)
the brand of Aranesp.           company, Cresp was the
10                                                                            India News


Ahmedabad based Marck          Paracetamol IV for the          are      not     possible.
Biosciences             Ltd,   past 3 years to come up         Paracetamol       IV     is
manufacturer of sterile        with Paracetamol IV first       especially advantageous
dosages        that     has    time in plastic pack in the     in              non-sterile
developed Paracetamol          world",    the    company       environments and aids
IV in plastic pack, plans to   claimed in a statement.         greatly in safe delivery of
launch it in India within      "Paracetamol IV in plastic      the drug.
the end of this year and is    will have lower freight
looking at generating          costs and breakages and         Marck manufactures and
business worth Rs 20 mln       help in more competitive        markets a range of sterile
from the new product.          pricing in comparison to        dosages spanning fluid
                               glass bottles,” Patel said.     therapy,       ophthalmics,
 “We are expecting sales                                       respiratory,       irrigation
worth $1.1 million from        Paracetamol IV is a ready       solutions      and       anti-
exports by the end of this     to infuse dosage form of        infectives across India
year”, said Mr. Bhavesh        Paracetamol (in 10 mg/ml        and       also      contract
Patel, managing director,      solution) and is indicated      manufactures           sterile
Marck Biosciences.             for     the     short-term      dosage pharma products
                               treatment of moderate           for     leading      pharma
"Marck’s formulation and       pain, especially following      companies       in     India.
development team has           surgery and for the short-      (Business
been       working     on      term treatment of fever         Standard: August          03,
preparing and studying         urgently    when      other     2010)
different formulations of      routes of administration


Jubilant Organosys Ltd         technology,        integrated   signed     a     long-term
has      signed    another     with captively produced         CRAMS deal with a US
Custom Research and            raw material resulting in       life sciences company.
Manufacturing Services         competitive       advantage     Though the name of the
(CRAMS) contract with a        both in terms of cost of        US company was not
US        Life    Sciences     production and capital          revealed,     the     total
company.       The    total    investment. “We expect          contract is valued at $51
contract value is expected     this trend to strengthen        mn. With this, Jubilant's
at $33 mn for the initial      further and going forward       CRAMS order book has
term of four and a half        continue to see strong          crossed $1 billion.
years and the contract will    traction in the CRAMS
                                                               According to analysts,
be effective from August       business and expect to
                                                               India could potentially
2010. At the end of the        sign few more contracts
                                                               capture 10% of the global
initial term, Jubilant will    during the year which will
                                                               CRAMS market of $168
have the first right of        further       drive       the
                                                               bn.   Currently,    India's
refusal for continuing the     momentum in revenues
                                                               share is only at about 3%.
contract.                      and     profitability,”   the
                                                               Overall,   the     CRAMS
                               company said in a
Jubilant said that the                                         segment is expected to
product     under    this                                      have grown at 40-50% in
contract is based on an        A week earlier Jubilant         the last few years. (The
in-house       developed       Organosys   Ltd    has          Hindu Business Line: August
                                                               31, 2010)
India News                                                                           11


Nissan Motor India is                                        km with an approximate
likely    to   commence       In 2008, Nissan signed a       travel time of 3.5 hours to
exports of the Nissan         Memorandum              of     reach the Port. The
Micra through the Ennore      Understanding         with     consignment       will   be
Port, according to Ennore     Ennore Port Ltd to export      shipped in a Pure Car
Port Chairman, Mr S.          its vehicles through the       Carrier    Vessel      from
Velumani. “They have          Ennore       Port.    The      Nissan Motor Car Carrier
tentatively said it is        administration of the port     Co Ltd.
September 6,” he said.        has invested Rs 1200 mln
                              to set up a multi-purpose      Nissan     officials    had
In April 2010, Nissan         berth. The terminal will       earlier  indicated      that
used the Ennore Port to       have a 250-metre length        exports are expected to
export the compact car on     and a depth of 12 metres.      reach 110,000 units in
a trial basis to Barcelona.   A stack yard will be           2011. The plant's initial
The first trial consignment   created to park 140,000        production       will    be
of six cars took nearly 22    cars.                          200,000 units with one
days to reach Barcelona.                                     line.       (The      Hindu
“This time it could be 500-   Mitsui O.S.K Lines will        Business
600 cars,” he said. Micra     handle the inland logistics    Line: September          01,
is manufactured at the        from Oragadam plant to         2010)
company's manufacturing       Ennore Port for the
plant at Oragadam, near       exports consignment. The
Chennai.                      entire stretch is around 78

Edited by Mr. Ashok C. Kaushik, Marketing Officer, Embassy of India, Buitenrustweg 2,
2517 KD The Hague. Fax: 070-3462594; E-mail:; Web:

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