India update Indiase Ambassade Nederland mei 2009

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					                                                        India Economic News
No. 5/09                                                                                                                   May, 2009
                    Contents                                      NEW AMBASSADOR OF INDIA TO THE NETHERLANDS
New Ambassador Of India To The                                 H.E. Mr Manbir Singh, presented his credentials as the Ambassador of
Netherlands ......................................1
India Now Member Of Two Key
                                                               India to the Kingdom of the Netherlands to Her Majesty the Queen of
Bodies: PM........................................1            the Netherlands on the 6th May, 2009. He is also concurrently
ISRO Successfully Launches Earth                               accredited as the Permanent Representative of the Republic of India to
Observation Satellite........................2                 the Organisation for the Prohibition of Chemical Weapons.
Industry Output To Expand 6.1% In
2008-09 ..............................................2
India Among Top 12 Manufacturers,                              A senior career diplomat, Mr. Singh has served in various Indian
Finds UNIDO .....................................3             Missions abroad which include Toronto, Moscow, Geneva and Abu
Indian Banks Are Sound & Healthy 3                             Dhabi. He has also held different senior positions at the Ministry of
Indian Scientists Sequence Fish                                External Affairs in India including that of Chief of Protocol. Prior to his
Genome .............................................4
Mandatory Registration Of Human
                                                               present appointment as Ambassador of India to the Netherlands he
Clinical Trials From June.................4                    was the Ambassador of India to the Islamic Republic of Iran (2005-
Pharma Companies Adhere To Ehs                                 2009) and Ambassador of India to Hungary (2002-2005) with
To Attract Global Business .............5                      concurrent accreditation to Bosnia & Herzegovina and Slovenia.
Contract Jobs To Keep Pharma
Companies Healthy ..........................5
Pharma Exporters To Buck Trend,                                During his diplomatic career of over 33 years, he has handled a wide
To Grow 16% In 2009-10 ..................6                     range of bilateral and multilateral assignments covering political,
India To Be J&J's Hub For Late-                                economic and cultural fields.
Phase Drug Development ................6
Telecom Industry Marked The
Highest Subscriber Addition ...........7                              INDIA NOW MEMBER OF TWO KEY BODIES: PM
New Telecom Companies To Invest
$2 Bn .................................................7
Auto Sector To Grow Further ..........8                        India is happy with the outcome of the G20 meet, Prime Minister, Dr.
Volkswagen Looking To Export                                   Manmohan Singh, said while briefing the media at the conclusion of
From India .........................................9          the summit.
Carrefour Plans India Operations
Next Year...........................................9
Marks & Spencer And Reliance                                   In particular, the Prime Minister said, he was pleased about the fact
Retail JV To Open 35 More Stores ..9                           that India will now be a member of the Financial Stability Forum as well
Sikorsky Enters India; Delivers First                          as the Basle Committee on banking supervision, two key standard
Commercial Helicopter                                          setting bodies.
To Corporate India .........................10
Boeing Sets Up Research Centre In
Bangalore........................................10            The Prime Minister said his bilateral meetings with US President
Eaton Plans To Make India Its                                  Barack Obama and British Prime Minister Gordon Brown as well as
Global R&D Hub .............................11                 interactions with leaders like Chinese President Mr. Hu Jintao, Russian
Qiagen To Expand Distribution
Base In India ...................................11            President Mr. Medvedev and the Japanese Premier had been very
Philips To Make India Hub For                                  useful. During talks, President Obama reportedly hailed India's "high
Medical Equipment Manufacturing                                stature" because it had "unleashed economic forces" and said a lot of it
 .........................................................12   had to do with "the wisdom of Dr Singh".

                                                               Asked at his press conference whether G20 was likely to replace G8
                                                               as the foremost group, Dr. Singh said if G20 could come up with
                                                               credible answers to the world's problems, it could certainly emerge as
                                                               a group that would count. (The Times of India: April 3, 2009)
2                                                                                               India News


The Indian Space Research            G Madhavan Nair, Chairman,             imaging configuration had been
Organization               (ISRO)    ISRO. He described the launch          installed for the first time. This
successfully launched its 14th       as “a fantastic New Year gift for      would allow us to see through
rocket Polar Satellite Launch        the country and that it is a good      clouds,       ground,       water,
Vehicle (PSLV), an earth             asset     for     the       nation.    vegetation and forest in day
observation           surveillance   Performance of the vehicle is          and night times. India has
satellite,  and      the     micro   precise and there is no                joined countries like Japan,
education satellite ANUSAT.          deviation to the planned flight        Canada and Germany, which
                                     path or the spacecraft being           have similar radars.
The      two    satellites   were    delivered into the orbit.” He
successfully injected in orbit by    added that this was the 14th           Immediately         after    their
an Indian rocket, which took off     continuous successful launch of        ejections,      the     Spacecraft
from      the    spaceport      of   PSLV by Isro since 1994. There         Control Centre at Bangalore,
Sriharikota, 190 kms from            was only one failure out of the        with the help of ISTRAC
Chennai, on 20th April. This         total   15,     on      its    first   network       of    stations   at
satellite will enhance ISRO’s        developmental       flight       on    Bangalore, Lucknow, Mauritius
capability for earth observation,    September 20, 1993.                    and in other places, monitored
especially      during     floods,                                          the satellite’s health, he added.
cyclones,      landslides     and    Mr. Nair said the specialty of         (Business Standard: April 21,
disaster management, said Mr.        the rocket was that microwave          2009)

                            INDUSTRY OUTPUT TO EXPAND 6.1% IN 2008-09

India’s industrial sector, which     gather further momentum in the         The industrial sector, which
was affected the most due to         coming months,” CMIE said in           makes up nearly 28 per cent of
the global economic crisis, is       its April edition of Economic          India’s output, is the most
likely to grow at a faster rate in   Intelligence Services (EIS).           affected from the global crisis
the current financial year           Higher industrial output would         because of falling global
because of strong domestic           help India’s Gross Domestic            demand and also because of
demand,      the    Centre     for   Production (GDP) to grow by            liquidity crunch that adversely
Monitoring Indian Economy            6.6 per cent, compared with            affected     their    operations.
(CMIE) said.                         estimated 6.5 per cent in just         Exports are expected to shrink
                                     ended fiscal, it said.                 for the sixth consecutive month
The economic think tank                                                     in March 2009. CMIE said
predicts industrial output to        CMIE based its optimism on             recovery in automobile and
expand by 6.1 per cent in 2009-      better industry performance on         steel sectors indicate strong
10,    compared      with   the      the fact that two issues — high        domestic       demand.      “Low
expected 4.3 per cent growth in      inventory levels and liquidity         inflation and low interest rates
FY 08-09. “We expect the             problem — that plagued the             are      expected    to   further
current recovery seen in             industrial sector in three             strengthen      this    demand
cement, steel, automobile and        months ending December 2008            impetus,” said CMIE. (Business
in the core industries index to      have eased.                            Standard: April 14, 2009)
India News                                                                                              3


United    Nations     Industrial    for nearly ¾ of the total MVA.      while in electrical machinery
Development       Organization      China alone produces 42% of         and apparatus it is ranked fifth.
(UNIDO) found that the share        MVA among all developing            It holds sixth position in the
of developing countries in the      countries.                          basic metals category; seventh
world’s manufacturing value-                                            in chemicals and chemical
added output has almost             For India, the growth rate of       products; 10th in leather,
doubled in the last 18 years        MVA output rose from 6.9% in        leather     products,    refined
due to the shift of production      2000-2005 to 12.3% in 2005-         petroleum products and nuclear
units and outsourcing of            2007. The MVA per capita grew       fuel; twelfth in machinery and
services    from    developed       10.6 % in 2005-2007 compared        equipment and motor vehicles.
nations.                            to 5.2% in 2000-2005. The
                                    share of MVA in India’s gross       Among industrialized countries,
In the International Yearbook of    domestic product (GDP) stood        Japan accounts for most MVA
Industrial    Statistics   2009,    at 14.8% in 2006 compared to        per    capita,     followed    by
UNIDO stated that developing        13.8% in 2001, UNIDO stated         Switzerland,           Singapore,
countries produced almost 30%       in the yearbook. Manufacturing      Ireland, Finland, Sweden, USA,
of world manufacturing value        still contributes around 15% of     Germany         and       Austria.
added (MVA) at the end of           GDP of the country.                 Luxemburg, Republic of Korea,
2008 as compared to 16% in                                              Denmark, Iceland, Canada,
1990. The per capita MVA            According to UNIDO analysis         Belgium,      United    Kingdom,
doubled as early as 2006, while     based on 2007 figures, India        Norway, Netherlands, Italy and
the      industrialized    world    ranks among the top 12              France come lower down the
achieved merely 30% increase,       producers of MVA. In textiles,      list.       (The         Financial
it added. Among developing          the country is ranked fourth,       Express: April 8, 2009)
countries, those in Asia account    after China, USA and Italy;

                              'INDIAN BANKS ARE SOUND & HEALTHY'

The capital adequacy ratio of       appointed       committee     on    In India, according to Mr
Indian banks would continue to      financial sector assessment in      Mohan, the main fallout of the
remain     higher   than    the     view of the ongoing economic        crisis was a sell-off by foreign
minimum              regulatory     crisis. The committee studied       institutional    investors     in
requirement of 9% even if           data of the end-September’ 08       domestic      equity    markets,
sticky loans, or NPAs, were to      period, when the financial crisis   leading to a sharp reduction in
more than double.                   shot into the limelight.            net capital inflows, which were
                                                                        also affected by slowing
Addressing a seminar at the         Even a recent study by ratings      external demand. As a result of
London Business School, RBI         agency Crisil noted that while      this, there were pressures in
Deputy Governor Mr. Rakesh          bank NPAs would rise in light of    the foreign exchange market
Mohan said that Indian banks        the slowdown, yet, given their      because of which the central
were sound and healthy unlike       healthy     capitalization  and     bank had to sell dollars. (The
their counterparts in the West.     cleaner balance sheets, the         Economic      Times: April   27,
This was established by the         impact of rising delinquencies      2009)
stress test of Indian banks         was likely to be within the
conducted by a government-          stress tolerance levels.
4                                                                                                India News

                              INDIAN SCIENTISTS SEQUENCE FISH GENOME

Scientists at the Institute of         Mr. Vinod Scaria, IGIB scientist,     were mostly hybrids cloned in
Genomics      and     Integrative      said that the wild zebra fish         labs.
Biology (IGIB), a Council of           strain analysis, was a first of its
Scientific    and       Industrial     kind genome analysis in India.        “Studying a wild type strain is
Research (CSIR) laboratory,            “To my knowledge, it’s the first      vital   to    understand       the
have sequenced the genome of           time that a vertebrate’s whole        complete     genetic     variation
a fish, which, because of its          genome has been analyzed in           within a species. Without that
similarity  to    the     human        an Indian lab,” said Scaria.          it’s not possible to determine
genome, holds several clues to         Globally,     scientists     have     which genes are responsible for
identifying genes that cause           studied zebra fish genomes            certain diseases,” he added.
diseases in human beings.              before, but Scaria said these         ( April 14, 2009)


In a move that will allow greater      After DCGI hands out pre-             highly attractive location for
transparency in human clinical         registration approvals, the trial     multinational drug companies to
trials conducted in India, the         sponsor will have to provide on       conduct        research        and
registration of all such trials will   CTRI key information, including       development                 (R&D),
be made mandatory starting in          the nature of the clinical testing    particularly clinical trials. “The
June. The trials will be               and the funding source, and           consumption potential offered
registered on the Clinical Trials      name an ethics committee that         by more than one billion
Registry-India (CTRI) website.         will oversee the process before       inhabitants,     rising    affluent
                                       enrolling the first patient.          customers and the changing
Through         the      registry,                                           lifestyles offer huge potential
information on all clinical trials     The move has also been                domestically for the sector,” the
taking place across the country        approved     by    the   Drugs        report said.
in all areas pertaining to             Technical     Advisory   Board
health—new drugs, treatments,          (DTAB), the highest drug              As part of the move to regulate
therapies, surgical procedures         advisory body in India, and will      the manner in which clinical
and new medical devices—will           be notified once the minutes of       trials are conducted in India,
become publicly available for          the    DTAB      meeting    are       several changes have also
the first time. ICMR’s National        approved, he said.                    been proposed in the Drugs
Institute of Medical Statistics                                              and Cosmetics Act, 1940. The
set up the CTRI website.               An increasing number of clinical      regulatory changes include the
                                       trials are being outsourced to        introduction    of    a    new
“Until now, clinical trials were       India by drug companies based         schedule—Schedule Y1— in
being registered on the website        overseas. A March 2008 report         the Act along with a new set of
of the Indian Council of Medical       by the Planning Commission            rules.
Research (ICMR) voluntarily.           estimated the value of clinical
From January, it was made              trials outsourced to India at         The new schedule will call for
advisory. But by June, we will         around $300 million having            the registration of all contract
make it mandatory,” said Mr.           increased by 65% from 2006.           CROs so that they follow a
Surinder      Singh,       Drugs                                             uniform,     harmonized     law
Controller General of India            According to a December 2008          throughout the country.
(DCGI), whose office functions         report by the task force of the
under the Health Ministry.             Ministry of Commerce and              (continued on next page)
                                       Industry, India is emerging as a
India News                                                                                             5

The draft guidelines for the        Web and we will invite              more clinical trials are being
registration of CROs have been      comments and observations           undertaken and a number of
framed and gone through             from other stakeholders. Then       CROs are involved in it”. India
DTAB. The minutes of the            we will take it through another     currently        has       150
DTAB meeting are yet to be          round of DTAB and get it            investigators—the     personnel
approved.       “Once they get      notified,” said Mr. Singh. He       who conduct and oversee the
approved,         these     draft   explained that the proposal was     trials—registered with the US
guidelines will be put up on the    taken up “because more and          Food and Drug Administration.


Globalization seems to be           Laboratories,           Cadila      proper    EHS      management
driving the Indian pharma           Pharmaceuticals, Zydus Cadila,      system.
industry      towards      better   Arch Pharmalabs and USV,
environmental,     health    and    among others have ensured a         The EHS guidelines were
safety (EHS) performances. In       proper     EHS     management       created by the International
order to elevate their global       system          and      other      Finance Corporation in 1998.
image,        several     Indian    environmental initiatives to        The objective of EHS is to
companies are complying with        attract   additional  business      safeguard life, property and the
EHS standards to widen their        opportunities in the global         environment.       It    enables
horizons        and       attract   arena.       Companies with         industries to manage risk
international players.              orientation of exports to the       better, reduce cost and improve
                                    Western world are faced with        health & safety of people in
EHS auditing is becoming a          no choice but to adhere to          general. Most global pharma
global practice as organizations    EHS. Besides customer audits,       companies use environmental,
around the world develop audit      many Indian companies have          health and safety performance
standards. Big players across       been proactively seeking out        criteria to assess and select
diverse    industrial    sectors    ISO14000      and    ISO18000       contract manufacturers, key
especially    from    US     and    standards to signal EHS             API       suppliers,     contract
European countries are opting       compliance.                         research and development labs
for EHS compliance as one of                                            and even logistics centers. This
the key mandate in the process      To be in sync with the green        is primarily done to protect the
of manufacturing outsourcing.       policy of the western world,        reputation of the global pharma
                                    Indian companies seem to be         companies         while     they
Most pharma companies like          proactive in adopting a number      outsource to India. (Business
Ranbaxy       Laboratories,         of green initiatives, including a   Standard: April 23, 2009)
Alembic,   Dr     Reddy's


Till last year, auto components     services, popularly known as        companies, and is expected to
were the fastest growing            Crams.                              become a $2.46 billion industry
segment of the manufacturing                                            by 2010, from its current size of
universe. But the slowdown and      Most Indian pharmaceutical          $869 million, according to a
the liquidity crisis have taken     and life sciences companies         KPMG-CII study.
the sheen off auto components,      have entered this sector which
with the focus now shifting to      typically implies outsourcing of    (continued on next page)
another     segment:    contract    manufacturing      by     global
research and manufacturing          pharma majors to Indian
6                                                                                          India News

Ms. Swati Piramal, Vice             projected to increase to 41% or      chunk of the market, prompting
Chairperson      of      Piramal    to $24 billion this year, a recent   countries like China to join the
Lifesciences, the R&D arm of        Yes Bank report said. “Over the      bandwagon,        say    persons
Piramal    Healthcare,       says   next 20 years the Crams              familiar with the trend.
Crams would account for 30-         market will go on increasing
35% of Piramal Healthcare’s         year-on-year,”       said      Mr.   Lupin, another major player,
revenue in the next fiscal year.    Janmejay Vyas, founder & MD          also sees growth in the Crams
“Large pharma companies             of Dishman Pharma. Mr Vyas’s         space. The company’s Crams
create value from R&D and           study for industry association       business, Novodigm, exports
marketing        and          not   CII, also finds India ahead of       over 90% of its products to
manufacturing. Manufacturing        China in the manufacturing,          global pharmaceuticals and
is not core to them, and            both in terms of the number of       speciality chemical companies
considering that historically the   US FDA-approved plants, as           in European Union, North
sector has been conservative in     well as the number of drug           America and Japan. This core
outsourcing, the sector will        master file filings.                 focus on custom synthesis and
have good growth in the                                                  process research capabilities
medium to long term,” says Ms       The global Crams sector is           has helped Lupin double its
Piramal.                            projected to touch $64 billion by    sales in the past nine months.
                                    2010, with India, already a          (The Economic Times: April 13,
Within the US, approximately        leading manufacturer of active       2009)
33% of the $40-45 billion that is   pharmaceutical       ingredients
spent annually on R&D has           (API) and intermediates. Indian
been outsourced, and is             companies can aim for a larger

               PHARMA EXPORTERS TO BUCK TREND, TO GROW 16% IN 2009-10

While most industrial sectors       overseas sale of Indian goods        expected growth will be lower
expect a negligible growth or       would either contract or remain      than the 23 per cent export
contraction in exports during       flat in the year. Apart from a       growth in 2008-09.
2009-10,        pharmaceutical      dip in orders from the US and
exporters forecast a 16%            the EU, exporters say demand         Sectors which are expected to
increase, a survey by the           from others like West Asia, the      witness an expansion in
Federation of Indian Chambers       Association of Southeast Asian       exports of more than 10 per
of Commerce and Industry            Nations (Asean) and Japan is         cent include engineering goods,
(FICCI) revealed.                   declining at a faster pace.          pharmaceuticals,         rubber
                                                                         manufactured goods as well as
While five of the 11 sectors        Pharmaceutical exports from          glass and ceramics. (Business
surveyed expect no expansion        the country are expected to          Standard: April 6, 2009)
in exports, three expect modest     buck this trend and post a 13%
growth of up to 5%. In fact,        increase in overseas sale, the
61% of the respondents felt that    survey said. However, the


The $63.7 billion Johnson &         produced and packaged. This          Mr. Paul Stoffels, global head,
Johnson (J&J) is planning to        is the most tightly controlled       pharmaceutical R&D, J&J. The
turn India into a global hub for    part of drug development. “All       company is currently working
late-phase development of its       the future new drugs and             on a number of drug molecules
new drugs. In the late-phase,       compounds from J&J will              including a new compound for
scientists decide on the form in    undergo     the      final    pre-   HIV, one for Hepatitis C, and
which medicines can be best         production testing in India,” said   (continued on next page)
India News                                                                                                  7

and two biologics for psoriasis,      Shanghai last week, which,            India is a rich source of
the later stage development for       along with the Mumbai centre,         collaboration,”   Mr.     Stoffels
which will be done in India.          will “allow an end-to-end             added. The company will
                                      approach to drug development          leverage the availability of the
With their drug pipelines drying      in Asia,” said Mr. Stoffels.          young and educated workforce
up, global pharma companies                                                 in   India,    and    its   cost-
are looking at offshoring drug        J&J will also enter into              effectiveness in developing
discovery and development to          partnerships    with       Indian     drugs, and will invest further in
developing countries like India       pharma and biotech firms as           its    new     chemical     entity
and    China     and     forming      well as academic institutions for     analytical & pharmaceutical
partnerships      with     firms,     discovery and co-development          development centre in Mumbai.
research organizations and            of new drugs. “J&J has a              (The Financial Express: April
academic institutes to improve        decentralized          approach       22, 2009)
innovation in the R&D process.        towards R&D, which results in
J&J, for instance, opened its         faster time to market and
Asia R&D headquarters in              greater information sharing.


Buoyed by the entry of new            At the end of March the               per cent at the end of March
telecom players in the GSM            wireless subscriber base stood        2009 from 35.65 per cent in
space, the Indian telecom             at 391.76 million as compared         February this year.
industry clocked the highest          to 376.12 million in the previous
subscriber addition in a month        month of the year. The wireline       The broadband penetration in
by     adding    15.87     million    subscriber base grew to 37.96         the country is also witnessing a
subscribers in March, 2009.           million as compared to 37.73          steady increase as the total
According to the latest data          million in February 2009. On a        broadband subscriber base
released by the Telecom               year-on-year basis however the        crossed the 6 million mark to
Regulatory Authority of India,        wireline segment witnessed a          reach 6.22 million by the end of
(Trai) while the wireless (GSM,       decline of 3.7 per cent from          March, 2009 as compared to
CDMA and WLL (Fixed))                 39.42 million in March, 2008.         5.85 million by the end of
segment witnessed addition of                                               February     2009.     (Business
15.64 million users, the wireline     This growth has lead to a             Standard: April 22, 2009)
segment saw an increase for           further increase in the total
the first time in two years by        telecom teledensity (number of
adding      230,000     to      its   people having a telephone
subscriber base.                      connection per 100) to 36.98

                              NEW TELECOM COMPANIES TO INVEST $2 BN

Firming up their rollout plans,       fresh investments due to the          period. Now that the companies
the new telecom licensees will        ongoing economic slowdown.            were awarded spectrum last
invest around $2 billion in the       “The new players will have to         year, the government is putting
next four months for the rollout      commence operations soon, as          pressure on them to start
of their services.                    the conditions of spectrum            operations,” Gartner Principal
                                      allocation require a company to       Research Analyst Mr. Naresh
The investment, necessitated          fulfill certain rollout obligations   Singh said.
by regulations, is significant as     (depending on the circle of
it comes at a time when other         operations), including launching      (continued on next page)
sectors are shying away from          of services within a stipulated
8                                                                                             India News

The         Department        of      are also getting ready for GSM       their own. There is an
Telecommunications       (DoT)        operations.                          increased demand for leasing
mandates that a company has                                                of towers,” said Quipo Telecom
to commence the rollout within        The telecom companies are            CEO Mr. Probal Ghosal said.
six months of getting spectrum.       also in talks for infrastructure     “Absolutely true”, agreed Mr.
It also states that phone firms       sharing with tower companies.        Vikas Arora, Vice President
have to cover 10 per cent of all      For example, Quipo Telecom           (marketing) of GTL, another
district headquarters in the          Infrastructure will lease out        passive telecom infrastructure
licensed area within one year         towers for the rollout of Unitech    provider. The company, which
and 50 per cent of the district       Wireless’ entire circles and 40      already provides infrastructure
headquarters in the licensed          per cent of Swan Telecom’s           to existing operators, is also in
area within five years.               tower      requirement.       The    talks with new licensees.
                                      infrastructure provider is also in
Companies like Shyam Sistema          advanced stages of discussions       “It is always our belief that
(which has got spectrum for 22        with STel and a couple of new        passive and ultimately active
circles), Unitech Wireless (21        players.                             infrastructure will have to be
circles), Datacom Solutions and                                            shared to reduce composition
Loop Telecom (both received           “The requirement of towers is        of capex in the operators’
spectrum for 20 circles), and         huge, as the companies are           business plan. Furthermore, the
Swan Telecom (14 circles) are         looking     at       commencing      ready         availability     of
gearing up to commence 2G             operations at the earliest. And      infrastructure will lead to quick
operations in the next six            due to the difficulties in raising   market penetration,” Arora said.
months. STel (5 circles) and          funds,      companies          are   (Business Standard: April 13,
Tata      Teleservices   (which       increasingly opting for sharing      2009)
already has CDMA operations)          of towers rather than setting up

                                   AUTO SECTOR TO GROW FURTHER

The domestic auto industry is         retail   finance  depressed          Two-wheeler sales were also in
expected to drive on positive         demand at home. In 2007-08,          the positive territory, rising
track in the financial 2009-10,       auto industry grew at a              2.6%. However, the slow rate
with moderate growth across           negative 4.7%.                       of growth was due to a near-flat
the segments.                                                              performance in the volume-
                                      Siam Director General Mr. Dilip      heavy motorcycle category that
According to industry body            Chenoy       sought     increased    rose just 1.1%, which was
Society of Indian Automobile          availability of finance and          pulled down by poor retail
Manufacturers (Siam), while the       rationalization of state-level       financing as private banks
passenger car segment is              taxes to spur demand. "Interest      withdrew from major markets
expected to grow at 3-5%, two         rates need to be further             fearing    high     delinquency.
wheeler sales can rise up to 5%       lowered to ensure adequate           Double digit growth rates
in the current financial year,        finance availability," he said.      achieved by Hero Honda and
mainly on account of stimulus                                              Honda Motorcycle and Scooter
packages announced by the             Despite tough times, car sales       India (HMSI) helped the two-
government.         Commercial        managed to finish 2008-09 on a       wheeler segment stay afloat.
vehicle segment can witness 7-        positive note with an increase       The      commercial       vehicle
10% growth, Siam added.               of 1.3%, though it was the           segment was badly hit in 2008-
                                      slowest growth rate since 2003-      09 with sales dipping 21.6%.
In 2008-09 also, the industry         04. Mr. Chenoy said sales in
notched up a marginal 0.7%            2009-10 will be fuelled by           (continued on next page)
growth in sales, despite a            compact cars with demand
global recession and tighter          coming from small towns.
India News                                                                                               9

While lauding the government's      And like commercial vehicles,       Sales in the overseas markets
stimulus packages for reviving      three-wheeler numbers were          brought cheers for the auto
growth, including enhanced          also down as sales dipped 4%        industry. Export of cars grew
depreciation rates, Chenoy          in the last financial year due to   57% in 2008-09 on higher
sought higher investments in        a major downturn in the goods       offtake of small cars. Two-
infrastructure. "This is vital to   carrier segment. Siam said          wheeler exports also grew and
bring the industry back to the      numbers were likely to grow by      crossed the million-mark on a
positive," he said.                 5-8% in 2009-10, aided by           growth of 22.5%. (The Times of
                                    demand in semi-urban and            India: April 9, 2009)
                                    rural areas.


In line with other international    “If there are some opportunities    opportunities from India at the
automobile manufacturers such       why shouldn’t we go there?” Mr      later stage.
as Fiat and General Motors,         Joerg Mueller, President and
Germany-based Volkswagen is         Managing Director, Volkswagen       Mr Ulrich Hackenberg, Member
looking    at   serving   small     Group India said. Volkswagen’s      of the Board of Management of
markets      in   the    Indian     newly inaugurated plant in          Volkswagen Brand, said the
subcontinent       from       its   Chakan, which has a capacity        company would start production
manufacturing facility in the       of 110,000, is meant for            at the Chakan plant with 50 per
country.                            producing high volume cars,         cent localization and will
                                    including      Skoda     Fabia,     increase it to 80 per cent by
Currently, Fiat and General         Volkswagen        Polo,     and     2010. The company is in the
Motors export cars to countries     upcoming small car models           process of identifying key
such as Sri Lanka, Nepal and        from the VW group companies.        suppliers in its effort to increase
Bangladesh,      from    India.     Mr Mueller said that the            local content in its products.
Although volumes are very low,      immediate focus would be to         (The       Hindu          Business
the companies see potential         serve the domestic market. The      Line: March 31, 2009)
market     opening    in    the     company will explore export


Carrefour SA, Europe’s largest      Region, the retailer has said in    introduce the Carrefour Group
retailer, has said it may start     a statement.                        and its project in India and to
wholesale operations in India                                           present       the       working
by 2010 and has initiated           Carrefour said the discussions      specifications and mode of
discussions with more than 600      with suppliers of food and non-     collaboration with suppliers.
suppliers as part of the plan.      food items were intended to         Business Standard: (April 16,
Carrefour plans to set up its       help tie-up the back-end part of    2009)
first wholesale cash & carry        the business. The retailer
outlet in the National Capital      organized a partners’ meet to


                                    years. It already has 15 stores     Spencer and Reliance Retail
Marks & Spencer Reliance            in India. The 51:49 joint-venture   Ltd was formed in April 2008.
India is planning to open 35        between UK’s Marks and
more stores over the next five                                          (continued on next page)
10                                                                                        India News

Mr. Mark Ashman, CEO, Marks          In UK, Marks & Spencer            design      and    brand-related
& Spencer Reliance India said,       operates in three categories      functions.    Reliance    Retail
“We will open stores in tier 1       namely apparel, home and          provides support in terms of
cities in the first two years and    food. In India, the company has   helping to find out retail
will extend to smaller cities        not yet entered the food          properties and other back end
beginning in the third year. The     category. Explaining the way      functions.”     He added that
investment of £29 million which      the joint venture operates        personnel from both parties
we announced last year will          between the two parties, Mr.      were equally involved in the
help us for our activities in the    Ashman       said,   “Marks   &   day-to-day           operations.
first two years.”                    Spencer owns the brand and        (Hindustan Times: April 17,
                                     looks after products, store       2009)

                                TO CORPORATE INDIA

US-based Sikorsky Aircraft           company. We have orders from      number of potential clients to
Corporation delivered its first      large corporate houses based      our list of Indian patrons,” Mr
commercial       helicopter   last   in Delhi and Mumbai. We have      Walia said.
week to a Mumbai based               already delivered one S-76C++
corporate signifying their formal    and another two will be           “Our     choppers    are    well
entry in India. Sikorsky is a        delivered in April to Indian      equipped      to    meet    the
world leader in the design,          corporates,” Mr. A.J.S. Walia,    requirements     of   homeland
manufacture and service of           Managing Director (India &        security which has been a
helicopters. It is a subsidiary of   South Asia), Sikorsky Aircraft    cause of grave concern post
United Technologies Corp.            Corporation said.                 the Mumbai attack. Even, the
                                                                       Black Hawk helicopters are
The company is looking at            Sirkorsky       has       been    currently being used by various
making India the hub to cater to     aggressively    pursuing    the   countries to support law
the requirements of the South        Indian corporate sector for S-    enforcement agents on the
Asian market after forming a         76D machines and is hopeful of    ground,” Mr Walia added. (The
joint venture with the Tata          negotiating some deals in the     Economic Times: April 1, 2009)
Group       to      manufacture      near future. “Given the kind of
helicopter cabins in India. “India   queries we have received, we
is an important market for the       are hopeful of adding a good


Boeing said that it has set up its   providers, universities, and      The centre has been set up
research and technology centre       other companies. “Boeing is       with an investment of a “few
in Bangalore which will work in      partnering   with   the    best   million dollars,”    he said.
the areas such as aero               researchers around the world to   Boeing’s research in India will
structures and aerodynamics to       find the best technology          work in the areas of aero
sustain      the      company’s      solutions for our customers,      structures, aerodynamics and
competitive technological edge.      and we look forward to working    electronic networks with a team
                                     with our partners here in India   of senior researchers, scientists
The centre will initially have 30    on some promising new             and engineers. This is Boeing’s
engineers and will collaborate       technologies,” said Mr John       third advanced research centre
with Indian R&D organizations,       Tracy,       Boeing       Chief   outside the US after those in
including government agencies        Technology Officer and Senior     Europe       and       Australia.
and     private   sector     R&D     Vice-President,   Engineering,    (continued on next page)
                                     Operations & Technology.
India News                                                                                          11

The centre will also coordinate     This also is good for India        and two Indian information
the work of more than 1,500         because it helps grow the          technology companies, Wipro
technologists, including 100        capabilities of the Indian R&D     and HCL, as part of the
advanced              technology    community      to   meet    the    Aerospace Network Research
researchers, from across India      emerging needs in country.         Consortium. This is India’s first
on projects that will help define                                      public-private       aerospace
the future of aerospace.            “The Boeing Research &             research consortium and it is
                                    Technology India centre will       devoted to emerging network
“Working      with     India’s      build upon the collaborative       technologies and concepts.
technology    leaders   helps       research projects in India. For    (The Hindu Business Line: April
Boeing assimilate new ideas         example, since 2007, Boeing        1, 2009)
and innovative processes into       has been working together with
our products and programmes.        the Indian Institute of Science


The $15-billion engineering and     headcount at its Professional      opportunity in itself; it also
industrial product company of       Services Centre, Pune. The         serves as a strategic location to
the US, Eaton Corporation,          exercise is part of the            enhance      Eaton’s      global
plans major expansion of its        company’s strategy to beat the     competitiveness. As part of this,
India operations. The move is       slowdown by outsourcing a          we are expanding the Pune
aimed at making the country a       large portion of R&D to            centre to help it design
hub for its global research and     overseas markets.                  products for use in the global
development activities. It has                                         market,” Eaton India MD Mr.
decided to appoint over 600         “We are very upbeat about the      Shyam Kambeyanda said. (The
engineers over the next two         growth prospect here. India        Economic Times: April 1, 2009)
years     and     double     the    offers   a    huge    market


The Netherlands based firm,         approximately 10% in 2008. It      Bengal, Orissa. We will be
Qiagen, a leading sample and        had contributed roughly 10% of     looking    at    more    such
assays technology provider          Qiagen’s total global business     programmes in collaboration
with $ 893.0 million sales is       in 2008. The Asian market is       with government or private
looking     at   expanding    its   key to our growth strategy. We     agencies,” said Mr. Shi.
distribution base in India          hope to maintain double digit
through more collaboration with     growth that we had over the        The company at present has
government        and    private    last few years with increased      three major distribution bases,
medical institutions.               focus on Asia specific diseases    one each in Mumbai, Delhi and
                                    like avian flu, cervical cancer,   Chennai. “We are in talks with
Speaking at the launch of           SARS, TB etc.” “We are also        various     partners       and
Qiagen cares Kolkata Project, a     looking at expanding our           government agencies in various
joint project with Chittaranjan     commercial network in India        states to implement more
National Cancer Institute on        this year. Qiagen in India is      programmes and bring in more
cervical cancer, Mr. Victor Shi,    only limited to Delhi, Mumbai      of our products and offerings
President, Asia said “Asia being    and Chennai. We will be            from our stable,” he added.
a high disease burden area is       increasing our Indian team this    (Business Standard: April 22,
one of the fastest growing          year. There are many under-        2009)
healthcare markets, growing at      served areas in India like West
12                                                                                         India News


After acquiring two healthcare     Philips Electronics India Senior      technology to develop value-
companies in India, Philips is     Director and Head (Healthcare         segment products.
working on a strategy roadmap      Business) Mr. Anjan Bose said
to make India one of its global    the company is currently firming      The company is planning to
production hubs for medical        up plans to make India a global       undertake        more      such
equipment. The company plans       production       hub.       "The      acquisitions in India to further
to invest substantially on         investment details are currently      strengthen its value-segment
upgrading      the    acquired     being worked out to expand            portfolio. "We are exploring
manufacturing facilities and       capacities and upgrade the            such options in ultrasound and
increasing their capacity, with    plants to meet global quality         imaging devices. The current
plans to start shipping them       and regulatory standards," he         time could be favorable for
globally in another 18-24          said.                                 such       acquisitions    since
months.                                                                  valuations are low and several
                                   Philips last year made two            companies have cash flow
As per the plans, Philips is       healthcare acquisitions in India      issues. The acquisitions will
evaluating       options      to   — Meditronics and Alpha X-            help us to tap rural hospitals
manufacture       both      new    Ray Techlonogies. By virtue of        and     needs     of    emerging
equipment      and    undertake    this, Philips acquired a footprint    markets," Philips India CFO Mr.
refurbishment of old machines      in manufacturing of medical           Coen Reuvers said. (The
in India. However, the initial     equipment, with five plants that      Economic Times: April 8, 2009)
focus will be on value-segment     specialize in imaging devices
medical equipment which has        and X-Ray machines. The
large market potential in Asia,    acquisitions     also    enabled
Africa, CIS and parts of Europe.   Philips       access       critical

Edited by Mr. Ashok C. Kaushik, Marketing Officer, Embassy of India, Buitenrustweg 2, 2517
KD The Hague. Tel: 070-3469771; Fax: 070-3462594; E-mail:; Web:

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