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News: Barclays goes to non-metro centres

(BL 18/05/2007) Mumbai - British bank Barclays launched its retail operations in India, opening three branches, two of them in non-metro centres in the South — Kanchipuram in Tamil Nadu and Nelamangala near Bangalore. The third branch is in Mumbai.

The bank had applied for branch licences across the country but was given these three for the time being, said a bank official.

Expanding Operations

The bank on Thursday announced a range of retail services including credit cards, personal loans, business loans and investment services products.

Samir Bhatia, Managing Director-India, Barclays Global Retail and Commercial Banking, said: "With branches in places like Nelamangala and Kanchipuram, we will be catering to local customers. We will also be offering no-frill accounts."

The bank has already invested $300 million and a further $70 million would be pumped in to expand the retail operations, he said.

Barclays has also applied for more licences from the RBI. "We would like to have as many branches as we get. But we intend to use alternative channels like the Internet, telecom and feet-on-the-street (direct sales agents)," he added

Barclays had launched its commercial banking operations in November 2006. The bank has presence in India since the late 1970s, through Barclays Capital, an investment bank.

Ahmed Khizer Khan, Chief Executive, Emerging Markets, Barclays, said, "To ensure that we are a global player, we would want more than 50 per cent of our profits to come from outside the UK." He added that the bank would like to achieve this by 2009-2010. "Retail credit is growing at 30 per cent in India and the market is ready for innovative products," Bhatia said. He said that Barclays had 276 employees, which would be in due course increased to 700.

News: Spanish firms rope in Indian entrepreneurs

(IANS 18/05/2007) Bangalore - Two Spanish firms Electronica ITEL and DigiProces have roped in two Indian serial entrepreneurs Anil Gupta and Alok Garg to set up an electronic manufacturing services (EMS) joint venture (JV), with an upfront investment of $10 million (Rs 41 crore).

The joint venture - Indic Electronics Ltd, to be commissioned by August, will provide end-to-end customised solutions, including functional testing and simulation to vendors outsourcing their product requirements.

"The manufacturing facility will come up on a two-acre plot in Doddaballapur industrial area, about 30 km from Bangalore. The joint venture will give a fillip to the growth of the hardware sector in Karnataka, attracting more investments," Indic vice-chairman Anil Gupta told IANS after the partners signed a tri-partite pact for the venture late Thursday.

Gupta and Garg are also co-promoters of CIPSA-RIC India Ltd, a joint venture, set up at Doddaballapur last year to manufacture printed circuit boards and membrane switches for domestic and export markets.

To be built on a scalable modular, the facility will have the latest technology and skilled manpower to provide design, development and start-to-finish products under one roof.

"We will employ about 100 people initially to commence production. In view of the growing demand for EMS from domestic and overseas vendors, we estimate a turnover of $20 million (Rs 82 crore) in the first full year of operations," Indic managing director Alok Garg said.

Electronica director Beatriz Serrano said her $120-million Spanish firm had decided to begin sourcing its requirements from India due to the advantages the country had to offer in terms of cost, quality, availability of talent pool and strategic partners.

"India has been on our radar for quite some time. Though we have been getting printed circuit boards (PCBs) from China, we have noticed India was equally consistent in delivering quality products," Serrano noted.

DigiProces CEO J. Batet said the JV would cater to diverse verticals such as automotive, energy, industrial automation, telecom and peripherals.

"We have already tied-up with S.A. Sistel, a European firm, dealing in elevators, for assembling its products, including functional testing tools," Batet affirmed. DigiProces posted a turnover of $18 million in 2006.

Sistel director-general B. Jordi said his firm would in future shift its entire business to India from China where it had been sourcing its requirements (sub-assembling) for long.

News: TCS in race for $2 b deal

(ACERC 18/05/2007) Mumbai - Tata Consultancy Services (TCS) is chasing the biggest IT deal worth $2 billion from Britain's Prudential Insurance. However the race is not yet over with IBM and Accenture also chasing the deal along with TCS. The bids originally started with 24 bidders but the field has narrowed down to three and a decision is expected by July this year. The Prudential project will last for seven years.

TCS is bidding through its UK BPO arm Diligenta which had executed the Pearl deal worth $800 million recently. TCS management would not comment on the deal but told NDTV that they are expecting large deals from Diligenta and at least 10 deals worth $50 million each are in the pipeline. "Large deals are the order of the day, TCS is a large volume player and will look for big deals," said Jignesh Shah, Head of Equities, ABN Amro private banking.

TCS has focused strategically on UK to reduce its dependence on the US market. The revenues from Europe grew from 37 per cent to 45 per cent (YoY) in 2006-07.

The percentage growth from the US was down from 35-30 per cent in the same period given the relatively lower base in Europe. Currently the revenue from Europe is about 30 per cent and US accounts for 60 per cent, with big deals kicking in from UK this could soon change.

TCS is logging in the big league where its global peers like IBM, Accenture and EDS dominated till a year ago. Last year it made waves with deals from Bank of China, Quantas and Sommerfield the one from Prudential could just be the mother of all deals for TCS. At a time when multi vendor contracts seems to be the norm, bagging a $2 billion order will be quite an achievement for any Information Technology giant.

News: Aditya Birla to invest $2 b in retail

(RTR 18/05/2007) Mumbai - Aditya Birla group will invest Rs 8000-9000 crore ($2-2.2 billion) in its retail venture in the next three years, the group's chairman, Kumar Mangalam Birla, told reporters on Friday.

Aditya Birla Retail Ltd, an unlisted firm of the group, plans to launch the first store in Pune, in western India, this month, he said.

"We are really going it alone, without a joint venture partner," Birla said.

News: Indian energy industry needs $150 b investment

(IANS 17/05/2007) New Delhi - Power and upstream energy sectors such as coal, oil, gas and nuclear power need funds to the tune of $120-$150 billion over the next five years, says a study released Wednesday by KPMG, a leading consultancy.

"Tariff reform in the energy sector and distribution reform in the power sector are two important steps that need to be successfully carried out," says the study - India Energy Outlook 2007 - that outlines the medium-term strategy for the sector.

According to it, India's energy consumption is rather low by world standards and the robust growth rate targeted by the country should entail a four-fold rise in energy requirement. "This is a significant challenge for the country."

The study says in 2004-05, the total energy consumption for India was estimated at 572 million tonne oil equivalent (MTOE), and the per capita consumption was placed at 531 kilograms oil equivalent (KTOE).

"However, with the targeted gross domestic product (GDP) growth rate of over 8 per cent and an estimated energy elasticity of 0.80, the energy requirement of the country is expected to grow at over 6.4 per cent per annum."

The study says given the fact that India has one of the largest deposits of thorium, nuclear energy had tremendous potential in the country.

"But the envisaged growth of nuclear power in India is possible provided robust technologies are developed for both the front-end and the back-end of the fuel cycle."

"If the Indo-US nuclear deal goes through, there will be a boost to nuclear energy and private participation in this sector would be expected," the study says, adding that till new technologies come in, the sector will be mainly uranium-based.

In the case of hydropower, the study says India is endowed with a potential for 150,000 megawatt but just 17 per cent of it is harnessed. To achieve the target of 45,000 megawatt in 10 years, private sector participation will be important.

Some of the other highlights of the study are:

-India to exhaust extractable coal reserves in next 45 years

-Only 10.6 per cent of installed electricity capacity in private sector

-India has the world's lowest per capita natural gas consumption

-Theft, pilferage, non-collection result in losses of over $6 billion annually

-Railways can contribute in major way to energy savings

-38 new coalfields with reserves of 800 million tonnes need $2 billion investment

-Discovery of new gas fields in India point to potential in the area

News: Virgin Mobile plans joint venture with Tatas

(RTR 17/05/2007) Mumbai - Virgin Mobile is set to form an equal joint venture with the second-largest CDMA mobile operator, Tata Teleservices Ltd., the Economic Times newspaper reported on Thursday citing unnamed sources.

Virgin, part of British communications group Virgin Media , would license its Virgin Mobile brand and technology expertise in value-added services and handsets to Tata Teleservices, the newspaper said.

A spokeswoman for Tata Teleservices declined comment.

Tata Teleservices and its subsidiary, Tata Teleservices (Maharashtra) Ltd. , provide services in 20 of India's 23 telecoms zones, and had 11.4 million mobile subscribers at end-March.

India is world's fastest growing mobile services market with more than 6 million subscribers signing up each month, and that has attracted the interest of foreign companies.

Earlier this month, Britain's Vodafone Group Plc completed its purchase of a controlling stake in Hutchison Essar, India's fourth-largest mobile firm .

SingTel, Southeast Asia's largest phone firm, owns 30.8 per cent in leading mobile services firm Bharti Airtel

News: Reliance to build $6 b petrochem complex in Gujarat

(IANS 17/05/2007) Washington - The Export-Import Bank of the United States has given a $500 million loan guarantee to Reliance Petroleum Ltd. (RPL) to build a $6 billion state-of-the-art oil refinery and petrochemical complex in Jamnagar, Gujarat.

The new refinery will be the world's sixth largest and will be located adjacent to Reliance Industries Ltd's (RIL) existing refinery and petrochemical complex in Jamnagar. Together the two refineries will comprise the largest refining complex in the world.

While Citibank is the guaranteed lender on the transaction, Bechtel Corp is providing design, procurement, project management and other services, Ex-Im Bank announced here Wednesday.

Major US exporters also participating in the project include: Black & Veatch International Co for sulphur recovery and gas treatment units; Dow Global Technologies for licensing and services for the polypropylene plant process; Foster Wheeler Corp for fired heaters for the refinery's coker; and UOP LLC for the catalytic converter reactor section and PSA (Pressure Swing Absorption) packages.

"Ex-Im Bank's long and successful relationship with the RIL group of companies, dating back to the early 1980s, has contributed to growth in the dynamic Indian market while helping to create US jobs," said Ex-Im Bank chairman and president James H. Lambright. "We hope to support future RIL projects in other industrial sectors."

"This transaction is yet another affirmation from Ex-Im Bank of the growth potential that they see in India and in particular the Reliance Group," said Mukesh Ambani, chairman and managing director of RIL and chairman of RPL.

"We look forward to deepening and strengthening our valued relationship with Ex-Im Bank."

Once completed in December 2008, the refinery will be among the most modern and complex in the world, capable of producing high quality fuels such as gasoline, jet fuel diesel, alkylates, naphtha, kerosene, as well as polypropylene.

The refinery's Nelson Complexity Index is 14, compared to the average index of 10 in the United States. This is a measure of the refinery's technological processing capabilities.

Ex-Im Bank's exposure to India, including the current project, is approximately $3.1 billion, with $1.17 billion in additional pending final commitments. An independent US government agency, Ex-Im Bank authorised over $12.1 billion in transactions supporting an estimated $16.1 billion in US exports in 2006.

News: India to join Trans-Asian rail network

(PTI 17/05/2007) New Delhi - India has decided to join the Trans-Asian railway network that will connect countries across Asia and will have to spend about Rs 3,000 crore to construct a link rail line with Myanmar, Lok Sabha was informed today.

The Centre has approved the signing and ratification of the inter-governmental agreement on Trans-Asian Railway, Minister of State for Railways R Velu said in reply to a question.

"The missing link in India is from Jiribam (in Manipur) to Tamu in Myanmar. The construction of this missing link, as per the feasibility study conducted by the Ministry of External Affairs through RITES Ltd, is estimated to cost Rs 2,941 crore," he said.

Velu said on this portion, the railway ministry has sanctioned construction of 97 km new rail link between Jiribam and Tupul near Imphal at a cost of Rs 727.5 crore.

The inter-governmental agreement on Trans-Asian Railway was negotiated under the aegis of UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and was opened for signature during the ministerial conference on transport at Busan, South Korea, in November 2006.

The agreement defines and lists the railway lines of international importance, including the missing links, and lays down the guiding principles relating to technical characteristics for transport. The 81,000 km network stretches from Turkey and Iran in the west to Russia, China and South Korea in the north, Kazakstan and Uzbekistan in central Asia, and Vietnam and Thailand in South East Asia.

"The agreement does not estimate the total investment required on the network,"

News: Infosys BPO plans Manila operations in second quarter

(BL 16/05/2007) Pune - Infosys BPO will commission its fourth international centre at Manila in the second quarter of this fiscal. It already has two centres in China and one in the Czech Republic, but with the parent company not yet having any presence in the Philippines, it will be solo going for the Manila operations.

Amitabh Chaudhary, CEO and MD said the company, which closed financial year 2006-07 at $148 million, had put out a 07-08 guidance of $215 million. From its current employee strength of around 11,000, it expected to add another 4,000 during the year. The company has also undertaken a Disability Hiring initiative. "Our aim is to have disabled people forming 2.5 per cent of our total workforce," he added.

Referring to its MoU with the Shivaji University, Chaudhary said that they wanted to convince people from smaller towns that they could make a career in a BPO. "We have taken it as a challenge to bring down the attrition rate," he said. It had already come down from 43 per cent to 37 per cent this year, he said, stating that it could be brought down further.

News: Bharti’s retail plan hits brand-barrier

(DNA 16/05/2007) New Delhi/Mumbai - What’s in a name? Plenty, if the foot-dragging by Bharti and Wal-Mart over signing a joint venture agreement for retail trade in India is any indicator. In the first signs of a difference of opinion between the two, it is now emerging that Bharti is keen to use the Wal-Mart name for all its front-end stores, but the latter has some reservations.

According to sources close to negotiations between Bharti and Wal-Mart, the US giant wants to lend its famous name only to large format stores, such as hypermarkets, and not to other retail formats.

This means that the smaller, neighbourhood stores Bharti is planning to open throughout the country would not have any visible connection with the world’s biggest retailer, if Wal-Mart has its way.

And this difference of opinion on branding appears to have become one of the biggest bones of contention between the two. Reports of Bharti being keen on using the Wal-Mart brand come even as there have been protests in political circles over this very issue.

On his part, Bharti chairman Sunil Mittal has maintained all along that his company is conducting a survey to ascertain the most suitable brand name for front-end stores - it could either be Bharti, Bharti-WalMart or just Wal-Mart.

So, it seems the disagreement over branding could be one major reason for the delay in the two companies signing any deal, despite several round of negotiations. Mittal had earlier asserted that the JV would be in place by the end of April.

When asked about differences with Bharti, a Wal-Mart spokesperson merely said, “Any talk of differences is pure speculation and not true. The Wal-Mart, Bharti JV announcement will be made soon”.

A Bharti Retail spokesperson also denied any difference between the two parties, asserting that a JV announcement was expected shortly.

Not only branding, the extent of back-end support Wal-Mart is willing to provide Bharti for its retail stores is under intense negotiations even now. Wal-Mart’s emerging markets president Raj Jain has already made it clear that the cash-and-carry wholesale partnership with Bharti would not exclude sourcing by other retailers.

In other words, any other retailer could source goods from the JV outlet and Bharti would be unable to derive any specific price advantage by virtue of its being one of the JV partners. It seems this issue is also proving to be a deterrent to the two sides signing on the dotted line till now.

Besides the cash-and-carry wholesale JV, the two companies are also expected to ink a separate pact for technology transfer that will allow Bharti to incorporate Wal-Mart’s practices across its retail operations.

But do all these differences mean the negotiations between Bharti and Wal-Mart are at such a sensitive stage that Bharti may finally decide to walk the retail tightrope all alone eventually?

It is too early to say, but a further delay in any joint announcement from the two sides cannot be ruled out.

Bharti’s front-end retail stores are expected to come up only by March next year, whereas the cash-and-carry wholesale operations are slated to commence by the second half of 2008.

News: ‘India needs infrastructure spend of 8% of GDP’

(RTR 16/05/2007) New Delhi - India must raise the share of investment in infrastructure to 8 per cent of gross domestic product by 2011/12 from less than 5 per cent now to sustain high growth, a senior government official said on Wednesday.

India's Planning Commission has set a target of an average annual growth rate of 9 per cent from 2007 to 2012, for which the country requires $1 trillion investment across various sectors.

Infrastructure alone is estimated to need $320 billion in this period.

"Investment in infrastructure is less than 5 per cent of GDP. This should rise to 8 per cent by 2011/12," said Montek Singh Ahluwalia, the deputy chairman of the planning panel that provides key economic guidance to the government.

"If we are seriously planning a 10 per cent GDP growth, we need much more investment," Ahluwalia told a construction conference.

India's GDP is estimated to have expanded 9.2 per cent during fiscal year to March 2007, taking it close to $1 trillion.

Analysts and research agencies expect growth to moderate to about 8.0-8.5 per cent in 2007/08 due to the impact of monetary tightening in the early part of 2007.

"High interest costs will have an impact at the end of the day," Ajit Gulabchand, chairman of Hindustan Construction Co. Ltd., told reporters at the conference.

"There is also a talent shortage in engineering and construction industry," Gulabchand said.

Economists say one of the key obstacles to sustained high growth for India is the number of bottlenecks in its infrastructure. Ports are overcrowded, airports are overcrowded and most of the country faces regular power shortages.

The engagement of private players in infrastructure projects would reduce the burden of government, K.V. Rangaswami, a senior official of engineering and construction firm Larsen & Toubro Ltd., said on the sidelines of the conference.

But the government had to make available land and other facilities for infrastructure projects, he said.

In addition, high prices of commodities like cement would also impact construction activities, he said.

News: 'India may become a leading foodgrain exporter'

(PTI 16/05/2007) New Delhi - India can emerge as a leading foodgrain exporter in global market if only farmers in other parts of the country could match the yield levels of Ludhiana district of Punjab.

With 4.61 tonnes per hectare, which is double the national average of around two tonnes per hectare, Ludhiana has topped the districts in foodgrain output per hectare.

While chairing the meeting of Planning Commission on Monday, Prime Minister Manmohan Singh said agricultural yields can be increased by 40-100 per cent in the next 3-4 years by focusing on yield gap reduction and expanding the area of cultivation.

Commenting on the high productivity in Ludhiana, Joint Director, Department of Agriculture Punjab, Gurdial Singh said, "The soil quality, irrigated facilities backed by research and extension efforts of Punjab Agricultural University in the district have played a crucial role in making Ludhiana as country's top district in foodgrain yields."

In fact, Ludhiana tops the list with 4.61 tonnes foodgrain output per hectare closely followed by Fatehgarh Sahib district (in Punjab) that produced 4.32 tonnes a hectare in 2005-06.

A Planning Commission committee headed by C H Hanumantha Rao, which recently submitted its report, has recommended that public investment in agriculture should be increased to 4 per cent of GDP from the present level of less than 2 per cent to raise productivity.

News: Reed Elsevier to pick up ICICI Ventures’ stake in Infomedia

(DNA 15/05/2007) Mumbai - ICICI Ventures, the country’s largest venture capital firm, is likely to sell its entire 63.3 per cent stake in the publishing company, Infomedia, which is valued around Rs 235 crore at the current market price.

Highly placed sources said ICICI Ventures was earlier considering part-stake sale. But later it decided to sell the entire stake if it gets good valuations. Infomedia has twelve b2b titles and eight b2c special interest magazines in its repertoire.

It was further learnt that ICICI Ventures is in talks with UK’s Reed Elsevier for the stake sale. Infomedia India (formerly, Tata Infomedia) has a 51-49 joint venture with Reed Business Info, a division of Reed Elsevier. ICICI Ventures exit, Prakash Iyer, managing director, Infomedia India, told DNA Money: “It’s not true.”

Infomedia acquired its present name in 2003, when the Tatas exited the business and ICICI Ventures took over their majority stake in the company for Rs 120 crore. Infomedia’s flagship product Yellow Pages is the market leader in the business directories segment.

The company also plans to introduce Yellow Pages on other platforms like the Web and mobile phones. Incorporated as a commercial printing press in 1955 by the name of Tata Press, the company entered the information service business in 1991 with the publication of business directories, known as Yellow Pages, and was renamed Tata Infomedia.

News: Indian firms to invest $5 b in China

(IANS 15/05/2007) New Delhi - Eleven Indian companies, which were part of a 35-member business delegation to China, have entered into an agreement with Chinese business interest to set up manufacturing facilities and offices there with a total investment of $5 billion, said a leading industry body.

The memoranda of understanding (MoUs) were signed under the aegis of the Associated Chamber of Commerce and Industry (ASOOCHAM) and its Chinese counterpart, China Council for Promotion of International Trade (CCPIT).

Indian business conglomerate Videocon Industries Ltd. has signed an MoU to set up $1.5 billion LCD (liquid crystal display) unit in Shenzhen, said a statement by Assocham.

The unit would be put up within the next one year, and 50 percent of the production would be for the Chinese market while the remaining would be meant for exports.

In addition to this, two other telecom equipment-manufacturing companies of ZTE Telecom India Pvt Ltd and Spice Communications Pvt Ltd have also signed MoUs for setting up of telecom manufacturing units also in Shenzhen.

Besides, Maharashtra Industrial Development Corporation, Rajasthan Industries Development Corporation and Unity Power have also struck significant investment deals.

Others include Adfactors Pvt Ltd, AKS Associates, Law Firm, International Certification Pvt Ltd and Cosmos Industries of India who will be setting up their business establishments there.

According to the Assocham statement, one of India's leading steel companies Fino Steel is also going to set up two plants in India in the next 4-5 years in Orissa and Karnataka.

China intends to also import 150 million tonnes of iron ore from India compared to its current import level of 85 million tonnes in view of its growing requirements for steel production, it said.

News: Central Bank of India ties up with Franklin Templeton

(UNI 15/05/2007) Mumbai - Central Bank of India today signed a Memorandum of Understanding (MoU) with private sector fund house Franklin Templeton Investments for the distribution of its financial products.

This is the third tie-up that the PSU bank has entered for distribution of such products. The bank has such agreements with UTI and TATA Finance.

On the first day of the signing of the agreement with Franklin Templeton, IDFC (Rs 13.50 crore), Hindalco (Rs 1 crore) and Godrej Finance (Rs 5 crore) made their initial investments.

''In the Indian financial markets, mutual funds are rapidly gaining ground among retail investors due to various advantages such as professional management, diversification, and liquidity. This tie-up will open up further opportunities to provide our vast client base with wider choice of products to meet their diverse financial needs,'' bank CMD H A Daruwalla said.

News: Yatra fund to buy 49% in India real estate JV

(RTR 15/05/2007) Mumbai - Yatra Capital Ltd. a Euronext-listed Indian property fund, said on Tuesday it will pay 21.6 million euros ($29.2 million) for a 49 per cent stake in a joint venture with Kolte Patil Developers Ltd.

The company said this was its first investment in Indian real estate since it listed in Amsterdam in December after raising 100 million euros.

The joint venture would initially develop three residential sites in the western city of Pune, where a number of global and Indian technology firms are setting up operations.

Earlier this year, Kolte Patil filed a draft prospectus to sell 25 per cent of itself in an initial public offering.

News: 'Indian markets remain a compelling for global investors'

(BL 14/05/2007) Kolkata - As an emerging market, India remains quite a compelling proposition for global investors, argues Seshadri Bharathan, Director - Stock Broking, Dawnay Day AV Securities Pvt Ltd. Here, he refers to key issues, ranging from volatility in the mid-cap segment and the distinct possibility that international events will have a bearing on the local market.

Excerpts.

The market has inched up again to 14,000 points. This seems to be a recurrence of sorts: up to 14,000 and beyond and then a slide. Is this quite expected?

As the old saw goes, history repeats. The slide after Sensex touched 14,000 points has become evident again. Taking Nifty for reference, it gave an all time high of 4245.30 on February 8 (corresponding to Sensex going above 14,000) and retreated to 3554.50 on March 5. It again touched 4217.90 on April 25. So far, it has made a lower top, as it did not cross its all time high level.

The same was repeated in the case of the BSE index. Currently, we can say that Nifty is moving in a range of 3980 - 4185. Breaching this range on either side should at least lead to a further movement of 200 points on that side.

The Sensex is trading at premium valuations compared to some of its peers in emerging markets. In this backdrop, what is the way ahead for Indian equities? Is there a case for paring down short-term expectations?

India as an emerging market is quite compelling for global investors. Cases such as ours do present premium valuations at times. And that holds true at present. With the purchasing power of the middle class improving and forming a larger chunk of the total population insofar as contribution to GDP is concerned, premium valuations are not out of place.

We may see consolidation at times but such valuations may still be found. Most of the corporates have given better than expected earnings. Their prospects look good too, a trend that will become stronger with our focus on infrastructure development. Corrections, if any, will take place due to international events. There is, after all, increasing globalisation all around and international developments have their significance.

The volatility in mid-caps continues. How do you view the situation? Do you in view of this recommend a scale-down in exposure to mid-caps?

Mid-caps will continue to remain volatile. In February, when the market fell, mid-caps took a beating. It must be noted that the current rise has been fuelled principally by certain large-cap stocks. Most of the mid-caps have missed out on the rally. Hence, it appears that if markets decline, value buying may well emerge in mid-cap stocks.

Are there sectors you recommend investors to go overweight on at this juncture? Conversely, where should they be underweight on?

Well, as we see it, oil and gas marketing companies look good for investments due to decrease in crude prices and the appreciating rupee. Investors may consider avoiding two-wheeler auto stocks because of pressure on margins and increase in interest costs. Sugar stocks can be kept on watch for buying on declines as they have almost discounted the worst.

News: Indians queuing up to buy homes abroad

(DNA 14/05/2007) Mumbai - In February, chartered accountant Archana and husband Prabhakar, an engineer in Dubai, planned to buy a flat in Mumbai where they want to shift jobs in two years. They were aghast that all they could get for their budget of Rs 2 crore was a one bedroom flat in south Mumbai. For the same price they settled for a two-bedroom villa a few minutes’ drive from Dubai.

Property in Dubai appreciates (thirty per cent last year) less than in Mumbai but rents are nearly double at twelve per cent,” says Prabhakar. Like Archana and Prabhakar, who have an ancestral home in Bangalore, an increasing number of Indians are queuing up to buy real estate in places like Dubai, London, Malaysia and Bangkok. Some want to flaunt a second home with a foreign address, others for holidaying or returns on investment. Some find that property is as expensive or even cheaper in some foreign locations. Some are encouraged by the Reserve Bank’s doubling of the amount an Indian can invest abroad to $100,000, which means a couple can invest $200,000 or Rs 82 lakh every year.

“Many are buying property in Dubai because it has no taxes and it’s only two and a half hours from Mumbai,” says Syed Miraj, the India agent in Mumbai for Dubai’s real estate firm Better Homes. “I get 15 inquiries a month and four or five of them end up buying.” The availability of easy bank loans and residence visas in UAE for property buyers are additional attractions. Many brokers are armed with CDs on “hot properties” in UK and UAE.

“Demand (from Indians for property in London) is particularly high in the mid-range price sector 400,000-700,000 pounds (Rs 3.2 crore to Rs 5.7 crore) which means that relatively more affordable locations such as St John’s Wood and Kensington are being considered,” says a study by Knight Frank, the global property consultancy firm. It estimates that this demand from Indians (along with the Chinese) will go up by seven per cent annually for some time.

“Many buyers see a snob value in a London address,”’ says Gulam Zia, Knight Frank’s National Director in Mumbai, pointing out that property in London is still more expensive than in Mumbai. “You can get a top of the line property for Rs5 to 8 crore in Mumbai but not in London.” It’s not just the mid-range properties that the Indians are eyeing. They are even lapping up top-end real estate, says Daily Express (London) in a report last month with the headline: “Wealthy Indians buying their own British Empire.” This, it said, has resulted in spiralling property prices there. It said that Northwood in West London has now become “the most expensive place in the world, thanks to Indian investment.” Knight Frank as well as Hamptons and Savills, UK’s top-end estate agencies, have despatched staff to India to sell London property.

“Malaysia has one of the highest standards and the lowest costs of living with all the modern facilities in place,” is how the Malaysian government is promoting its “Malaysia My Second Home” project to lure the wealthy from across the world. All you need to be eligible for the programme is to deposit in a local bank 300,000 Malaysia Ringgits (Rs 36 lakh) from which up to Rs 29 lakh could be withdrawn after one year for purchase of a house there. A Malayasian tourism department official has been quoted by the local media as saying that some 700 Indians have registered for the programme.

“Realty markets abroad are stabilised and offer steady returns,” points out Gautam Vohra, Senior Manager (Capital Markets) in Mumbai of Jones Lang Lasalle, a global real estate consultancy.

News: Essar to invest $3.4 b in Egypt refinery

(BL 14/05/2007) Cairo - Essar Global will invest $3.4 billion in a proposed 300,000 barrels-per-day oil refinery in northern Egypt, an Egyptian government official said on Monday.

"The planned refinery will cost $3.4 billion and we are expecting it to come on stream in 2010," Ashraf Diwidar, adviser to the Industrial Development Authority said.

"The Egyptian government could approve the proposal in a few weeks," he added.

News: Suzlon holds 30.92% in REpower

(RTR 14/05/2007) Mumbai - Suzlon Energy Ltd. said it and its partners hold 30.92 per cent in takeover target REpower, slightly larger than French rival Areva's stake in the German wind turbine maker.

On Friday, nuclear energy group Areva said it held 30.16 per cent in REpower. An extended takeover offer period runs until May 25.

Suzlon has offered 150 euros per share, valuing REpower at around 1.2 billion euros ($1.6 billion) while Areva has offered 140 euros per share.

A Suzlon spokesman said on Monday the German regulator had given REpower shareholders until May 25 to accept the offer.

Suzlon has teamed up with Martifer, a unit of Portugal's largest builder Mota Engil, to bid for REpower.

News: Indian forex reserves down $126 m

(BL 12/05/2007) Mumbai - Forex reserves have gone down $126 million to $204.009 billion for the week ended May 4 on weakening of non-dollar currencies against the dollar.

Forex reserves had gone up by $254 million to $204.135 billion for the week ended April 27.

Foreign currency assets decreased $377 million to $196.500 billion, said the RBI's Weekly Statistical Supplement.

Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.

"Currencies like the euro weakened against the greenback which is reflected in the country's forex kitty," said a dealer at a private bank.

Gold reserves increased $252 million to $7.036 billion while SDRs remained unchanged at $11 million. The country's reserve position in the IMF dropped $1 million to $462 million.

News: Google inks pact with AP Govt to buy land

(BL 12/05/2007) Hyderabad - The Silicon Valley, US headquartered, Google on Friday marked its continued investment in India by announcing a memorandum of understanding (MoU) with the Government of Andhra Pradesh to buy land in Hyderabad.

The land will be used to build a Google facility to support the growing business and team expansion across operations. The MoU marks a step forward in further establishing our commitment to India," said Roy Gilbert, Director, Online Sales and Operations, Google India.

"We are delighted that Google has decided to invest in Andhra Pradesh. Such investments help in accelerating the country's economic growth besides providing gainful employment," said Dr Y.S. Rajashekara Reddy, Chief Minister of Andhra Pradesh, according to a Google press release.

The MoU was signed in Santa Clara, where the Chief Minister was present, as part of his tour to the US. The State Government would allot about 20 acres of land owned by the Hyderabad Urban Development Authority (HUDA) in Kokapet village in neighbouring Ranga Reddy District to Google.

Google plans to expand in Andhra Pradesh by ramping-up its employee strength to over 4,000 and constructing a fully-owned techno complex. It has also projected further increase in its headcount based on its business needs, a Government press release said here.

In Hyderabad, Google at present has the second largest operations in India, with about 1,088 employees operating out of a leased facility. It houses engineering, online sales and service, information systems, human resources and other support functions.

The company has a presence in Bangalore, Mumbai and New Delhi as well. At the end of 2006, its global revenues stood at $10,604.92 million, with a market cap of $150 billion.

News: Local vendors gear up to face retail giants

(BL 11/05/2007) Bangalore - The country's ubiquitous vegetable hawkers, faced with the threat of losing out to the big corporate retail chains, are set to appear in a new avatar. Armed with a branded portable retail format, the hawkers will soon sell fresh fruits and vegetables in the National Capital Region in refrigerated trolleys under an experimental project called Infrachill Direct-to-Home.

The project, conceived by the Delhi-based ACME Cold Chains Private Ltd, is being launched this summer in the National Capital Region. It envisages tapping the potential of vegetable distribution through the portable mobile cold chain to vend fresh farm produce.

Mobile trading zones

A pilot will be run for three months and based on the feedback, a national rollout will be planned in a phased manner, said Avtar Singh, General Manager, ACME Cold Chains.

An initial investment of Rs 1 crore will be made on the pilot consisting of the cold chain linking the distribution centre with the hawkers through IT logistics for enabling them to retain the farm freshness of the produce.

Dedicated Mobile Trading Zones will be identified in the cities for the hawkers to vend their products under the brand name `All Fresh', said Singh. Singh said ACME would source the produce directly from farmers and distribute to the hawkers.

ACME will help with financing of the carts and later depending on the response, micro-finance facility will be tapped. Each of the trolleys would cost about Rs 10,000.

Singh said: "With the direct-to-home service, efficiency in delivery of fruits and vegetables from producer to consumer attains acceptable levels for the first time in India. The integration by Infrachill will provide greater security to every stakeholder in the chain - producer to trader to retailer, hawker or vendor as well as consumer."

Singh said Infrachill would offer seamless opportunities to hawkers, who can also stock cheese and butter.

An estimated 35 per cent or Rs 55,000 crore worth of fresh farm products suffer losses due to lack of cold chain, Singh said, adding that ACME was betting on leveraging its Thermal Management System to maintain the temperatures at different levels for retaining the freshness of the produce.

News: Wal-Mart may increase sourcing from India

(BL 11/05/2007) New Delhi - Wal-Mart, the world's largest retailer with a turnover of over $330 billion, said that it was looking at foraying into private labels in its Indian cash 'n carry retail business, as well as increase sourcing from the country.

"Private labels are an important part of the business. In fact, we have several private labels being retailed across our other international stores worldwide. And, as is the case with retailers in India, our private labels are also our growth drivers in the international scenario. We will try and leverage that in India as well," said Beth Keck, Director, Corporate Affairs, Wal-Mart.

"Our motto is to think global, but act local. So keeping that in mind, we will definitely look at the possibility of bringing into operation private labels in India as well. However, it will depend on the appropriateness of the label, since with our cash 'n carry model we will be targeting the small businessmen and retailers who are a very different community as compared to the consumers," said Keck.

She also said that the US-based retail chain could look at the possibility of developing India-specific private labels, but only after negotiations with Bharti, for its joint venture, are officially over. Wal-Mart and Bharti are in negotiations for a 50:50 joint venture for Wal-Mart's cash 'n carry business.

Strategic market

On increasing sourcing from India, Keck said, "India is a strategic and important sourcing market for us. And we are constantly expanding in the categories that we deal in, in India. In fact, with Wal-Mart's foray into cash 'n carry, a whole new world of suppliers will open up for us, since we will be sourcing almost 90 per cent of the products for the venture locally," said Keck.

Keck also said that Wal-Mart in India will follow a system that was similar to the country's wholesale mandi system, where a particular cash 'n carry hub will service around two to five locations. In total, Wal-Mart hopes to provide services to around 75 locations/townships in the country.

Wal-Mart currently sources products such as jewellery, handicrafts, metal ware, and home furnishings from India, which amount to around $600 million.

The Union Minister of Commerce and Industry, Kamal Nath, had in February, during the company's global CEO, Mike Duke's visit to India, asked the company to increase sourcing from India by 25 per cent.

Besides, the company also plans to set up a full-fledged cold chain system, for effective transport of products from farm to outlet.

While the system will be run by Wal-Mart, for the basic infrastructure the company will be talking to players such as Carrier and Voltas, which provide cold chain infrastructure to other retail chains as well.

News: Eight Indian firms in S&P 2007 global list

(DNA 11/05/2007) New Delhi - The upbeat Indian industry has outsmarted the world's fastest growing economy China, with as many as eight domestic firms making it to Standard & Poors' list of challengers to leading global blue-chip companies.

Rating agency S&P has included eight Indian companies in its annual 'Global Challengers List' of 300 firms, while only four Chinese firms were included in the list.

The list identifies mid-size publicly traded firms that exhibit the strongest growth characteristics. The 2007 list includes companies from 37 countries.

It includes cement maker ACC, Hotel Leela Venture, Jain Irrigation, Lakshmi Machine Works, Marico, Siemens India, besides Tata Group's Titan Industries and Indian Hotels.

"In the Darwinian sense, mid-caps are truly positioned in an evolutionary sweet spot, having survived beyond their start-up phases and offering stability as well as rapid growth opportunities in the future," S&P index strategist Srikant Dash said.

The country contributing the most members is Japan with 62 firms, followed by the United States (58) and UK (19).

Regionally, America represents 22.67 per cent of the list's composition, followed by Asia/Pacific (41.67 per cent), Europe (33.33 per cent) and Middle East/Africa (2.33 per cent).

The sector representation within the 2007 list is lead by industrials, followed by financial and consumer discretionary.

Industrial companies account for 26.67 per cent of the 2007 list, while financial services firms 17 per cent, consumer discretionary (13.67 per cent), energy (12.33 per cent) and IT (10.67 per cent), the S&P report shows.

In 2006 list, financials and consumer discretionary had contributed the most.

"Mid-cap firms can be thought of as having overcome the growing pains of small firms and are thus a lot less risky than small-cap start-ups. The class of 2007 offers the best potential pool of companies that could become tomorrow's leaders," Dash said.

Meanwhile, the S&P report also cautioned against the reporting irregularities by companies, which in rare cases have been found to be fraudulent by regulator.

News: AV Birla group eyes Piramyd Retail

(RTR 11/05/2007) Mumbai - India's Aditya Birla group is eyeing Mumbai-based Piramyd Retail Ltd., the Economic Times newspaper said on Friday.

The group is expected to buy Piramyd through its unlisted retail arm Aditya Birla Retail, the newspaper said quoting sources.

Piramyd executive vice-chairman Nandan Piramal denied the possibility of a takeover while a Birla group source said negotiations were at a "very close stage", the report said.

Company officials could not be reached for comment.

Piramyd had faced strong competition from Shopper's Stop and Pantaloon but the brand had slipped in the last two years, the newspaper said.

"We have realised that there is a lot of catching-up to do and are in a hurry to do that ...Our team is in place and the growth focus is clear," the report quoted Piramal as saying.

Earlier this year, the AV Birla group bought regional supermarket chain Trinethra.

News: Banks may soon offer niche products for HNIs

(BL 10/05/2007) Mumbai - Banks are now serving products and designing services for high net worth individuals, who can remit $100,000 in a financial year (from $50,000 earlier).

But banks, particularly foreign, feel the need for clarity on the kind of products to be put on offer as overseas investments attract the regulatory eye. According to banks, there had not been many takers when the earlier remittance limit was $50,000.

"With the RBI approval, banks may soon be able to offer not just plain vanilla overseas deposits but also structured and capital-related products," said Shiv Khazanchi, Managing Director and Head, Private Banking, India, Standard Chartered Bank.

Credit Facilities

`HSBC Premier', which was recently launched, allows well-heeled Indians and NRIs (earning at least Rs 20 lakh per year) to transfer their `credit history' between countries, making it easier for them to open bank accounts and apply for other services such as credit cards and home loans.

They can also use credit facilities at special terms for overseas property purchases up to a 60 per cent loan-to-valuation ratio (subject to local regulations on mortgages).

Overseas Partners

"As and when regulators evolve guidelines permitting offshore mutual funds to appoint registered agents in India, another investment option will present itself," said Nicholas G. Winsor, Head, Personal and Financial Services, HSBC. Most banks are looking at tying up with overseas partners, mostly banks, to offer products and services. "We are looking at offering our clients investments in shares listed in overseas stock exchanges," said a senior official at a private sector bank.

Public sector banks hope to begin by offering deposit schemes for investors at their foreign branches. "We could also look at offering the US and Japanese Government bonds," said a senior official at a public sector bank. Individuals can also make investments in properties abroad.

News: Indian 5-star hotels mull dollar tariff hike

(DNA 10/05/2007) Kolkata - Five star hotels, where 65% of revenues accrue in foreign currency, are already mulling a September dollar tariff hike, to tide over lower earnings from an appreciating rupee.

As of now, the currency has not yet stabilised to warrant a definite direction from the hotel industry. But, in about three months time, when the players discuss revision of tariffs — which will come into effect from September - the weakening dollar will definitely become a topic of discussion and influence the way the dollar rate card moves.

Tariffs, in general, are hiked by 15-25% annually.

“The dollar rates have remained unaffected but whenever customers have come to the desk for currency exchange, obviously they have been given the benefits,” Manbeer Choudhary, president, Federation of Hotels & Restaurants Association of India (FHRAI), told DNA Money.

Underlying the volatility in the dollar versus the rupee, Choudhary added: “The industry reacts only when the currency stabilises at a level - high or low - for three months.”

ITC Hotels, which follows dual currency, is adopting a policy of wait-and-watch for the next couple of months, said Deepak Haksar, vice-president, ITC Hotels.

For the Leela Group, “revenues will take a hit, though by how much it is difficult to tell at this juncture,” said Sanjoy Pasricha, vice-president, sales and marketing, Leela Palaces & Resorts. “We cannot keep the rates very high and outprice ourselves from the market,” he said.

However, hotels can be upbeat on one aspect. Imports of liquor and wines by five star hotel restaurants have got cheaper. Choudhary of FHRAI said: “Liquor imports have got cheaper by as much as 27% from April 20 onwards, due to a lowering of excise and customs duties.”

Deepak Haksar, vice-president, ITC Hotels, said: “Our duty free stocks will get cheaper, but it is too early to say by how much because we have already taken our stocks about three months in advance.”

News: Starbucks to enter India by 2007-end

(DNA 10/05/2007) Mumbai - Clearing speculations on its entry into India, the world's biggest coffee chain Starbucks Coffee International said it will open its first store in India by the end of this year.

"We target opening the doors of our first store by the end of 2007 in either New Delhi or Mumbai," Starbucks Coffee International Corporate Communications (Asia Pacific) T May Kulthol said.

The US-based company has been working closely with the Ministry of Commerce and Industry to understand better the existing foreign investment regulations, he said.

"We are looking forward to offering the finest coffee in the world, handcrafted beverages, legendary service and the unique Starbucks experience to customers in India," he said.

For the purpose, the company has submitted a revised application to the government on April 13 to operate single -brand retail stores in the country with a restructured entity.

Starbucks entry into India became controversial when the Foreign Investment Promotion Board (FIPB) rejected the previous application filed by the company's franchisee New Horizons, co-owned by NRI V P Sharma and Kishore Biyani, in December on the grounds that it exceeded 51 per cent FDI limit.

News: 'India is uncorking its wine market'

(IANS 10/05/2007) Ciudad Real - Making its debut at the Spanish Wine Fair (Fenavin) here, India has said it would welcome imports of Spanish wines and collaborations in production if a strong element of "price sensitivity" was introduced.

"However, price sensitivity does not necessarily mean selling the cheapest wine," Subhash Arora, president of the Delhi Wine Club, told delegates at the three-day fair Wednesday.

India already has a well developed domestic industry that also exports the commodity, he cautioned, adding, however, that there was scope for good brands of wine in the niche market.

The best way to come to India would be by entering into partnerships in trade and production. French, Italians, Australians and Germans were already making their presence felt in the country, Arora said.

While India regularly participates in Vinexpo at Bordeaux, France, Vinitaly at Verona, Italy, Prowein at Dusseldorf, Germany, and the London Wine Fair in Britain, its participation in Fenavin is a first.

Arora also elaborated on what he called "the Indian paradox", where millions drink despite religious and social taboos. Consumption of hard liquor was high - 120 million cases of whisky, vodka and other drinks and 105 million cases of beer every year.

"Add 200 million cases of country liquor and a sizable number that is unaccounted for, and 500 million cases of liquor are annually consumed. This is the Indian paradox," he said.

At the same time, wine, treated as part of food in the West, was shunned because of its alcohol content. Even so, 170,000 cases were consumed every year and the market had grown by 40 percent last year.

"You can vote at the age of 18. Girls can even get married at the age of 18. Yet the legal drinking age is 25. This is also part of the Indian paradox," he said.

"Our finance minister (P. Chidambaram) and commerce minister (Kamal Nath) are both connoisseurs of fine wine. The minister of agriculture (Sharad Pawar) is a big grape farmer and has gone on record to say that wine should be treated as a food item, like in Italy and Spain. But he had to backtrack due to the anti-alcohol lobby and the wine continues to be subject to VAT at 20 per cent," Arora said.

However, he added that with a nine percent-plus growth rate and a rapid expansion of organised retail, India offers bright prospects to outside wine merchants.

News: DaimlerChrysler begins construction of new plant in Pune

(IANS 10/05/2007) Pune - The world's second largest luxury carmaker DaimlerChrysler Wednesday began construction of its new plant for the production of Mercedes-Benz cars near Pune in Maharashtra.

The new facility, to be located at Chakan near the city, will initially employ around 350 workers, matching the level of the current facility, said Joachim Schmidt, chairman of DaimlerChrysler India.

"Our confidence in the Indian market is reflected in our long association with the country. Our engagement with India dates back to 1954 when we started collaboration for trucks in India. Subsequently, we were also the pioneers of the luxury car market in India," said Schmidt.

The new manufacturing facility will produce S, E and C-Class Mercedes-Benz cars for Indian market. The production of cars is expected to start around early 2009. The new plant will initially employ around 350 workers, matching the level of the current facility.

In 2006, DaimlerChrysler sold 2,121 vehicles, achieving strong growth of 11 per cent against 1,915 in 2005.

In the first quarter of 2007, the carmaker already recorded further growth of 17 per cent.

On Jan 4, DaimlerChrysler India had signed a memorandum of understanding (MoU) with the state government over the construction of the new plant.

Chief Minister Vilasrao Deshmukh laid the foundation stone of the new facility.

Among those present included Minister of Industries Ashok Chavan, Minister for Water Resources and Water Supplies Ajit Pawar as well as Minister of State for Industries Rana Jagjitsinh Patil.

Representing DaimlerChrysler India were Schmidt, and Wilfried Aulbur, managing director and CEO of DaimlerChrysler.

News: PNB sets up subsidiary in UK

(PTI 10/05/2007) London - Punjab National Bank (PNB) today set up its wholly-owned subsidiary in the UK to cater to the financial servies requirements of the huge Indian diaspora here.

"By establishing Punjab National Bank (International) Ltd (PNBIL), we are confident of servicing the needs not only of individual customers but also of businesses and institutions that seek to engage with India," PNB Chairman and Managing Director S C Gupta said at the inaugural function at Guildhall here.

PNBIL will primarily act for UK companies transacting business with India and vice versa, Gupta said, adding that for business customers, the subsidiary will offer tailored banking facilities, trade and loan finance.

Besides, it will also enable customers to transmit remittances to and from India.

The London offices in Gresham St and Southall would serve as key points for the bank's international network which includes operations in Canada, Hong Kong and Singapore, besides current representative offices in Shanghai, Dubai and Kazakhstan.

Speaking on the occasion, Financial Sector Secretary, Ministry of Finance, Vinod Rai said with bilateral trade between India and the UK set to grow, PNBIL will provide an essential link between the two diverse markets.

The UK is India's second largest trade partner, accounting for 5 per cent of India's total foreign trade in goods.

"A key plank for PNBIL will be our customer focus: we will ensure direct interaction with customers and easy access of bank staff at all times," said PNB Executive Director K Raghuraman.

News: Murdoch plans to launch tabloid newspaper in India

(RTR 09/05/2007) Mumbai - Rupert Murdoch's News Corp. is in talks with the Sun group, which operates the Sun TV Network Ltd., to launch a tabloid newspaper, the Business Standard reported on Wednesday quoting unnamed sources.

The English tabloid was likely to be titled Sun and would be launched in South India before being introduced to other markets, the paper said, quoting sources close to the development. The sources did not detail a timeframe for the launch.

Officials at Sun TV could not be immediately reached for comment.

The sources told the paper the newspaper was part of Sun TV's expansion and diversification plans.

Sun group is owned by Kalanithi Maran, brother of Communications and Information Technology minister.

News: TCS recruiting 32,000 IT professionals

(PTI 09/05/2007) Tiruchirapalli - Tata Consultancy Services Limited would recruit about 32,000 IT professionals in the current year, a top company official said today.

In an informal chat with reporters, K Karthikeyan, Head Strategy, Planning and Operational Excellence, mentioned that the company recruited 32,000 professionals in the last financial year and it would be repeated in the current fiscal too.

Of the 32,000 personnel planned for recruitment, 50 per cent would be freshers from engineering, arts and science colleges and the rest would be experienced hands.

As many as 19,000 professionals were recruited last year at the Chennai branch and in the current year, an addition of 6000 is planned.

The major facility of TCS coming up at Siruseri near Chennai is to be completed in six phases.

The first phase would be commissioned by the third quarter of the financial year and when the sixth phase is completed in the year 2010, the total IT professionals working at Siruseri would exceed 22,000.

Simultaneously, the activities of TCS located at Kochi, Coimbatore, Chandigarh are also poised for expansion and the company was also "holding tier-II cities like Madurai and Tiruchirappalli in its radar."

News: ‘Indian BPOs successfully competing with global rivals’

(IANS 09/05/2007) Mumbai - Indian BPOs have achieved a critical mass and are now successfully competing with major global suppliers of business process outsourcing, says a new study.

The study - 'Business Process Outsourcing - Indian Supplier Landscape' by the Everest Research Institute, a research arm of Everest Group - says off-shoring of business functions such as finance and accounting, customer service, and human resources to Indian suppliers is becoming increasingly mainstream.

The study analysed the entire Indian BPO supplier landscape, and identified 11 suppliers who are establishing themselves as global players through cost-efficiency and process and industry expertise.

The companies recognised in the report as major offshore BPO contenders include EXL, Firstsource, Genpact, HCL, IBM Daksh, Infosys, Sutherland, TCS, TransWorks, Wipro and WNS.

Each supplier evaluated in the study was required to be headquartered in India or have a majority of its workforce in India, and have revenues greater than $100 million or more than 10,000 employees.

The study also analysed five suppliers who did not meet this year's criteria, but have the potential to join this group in the future.

"We're starting to see buyers engage in large, multi-process, global deals with Indian suppliers based on the strong capabilities that these suppliers are developing in different areas," said Sheetal Bahl, the institute's research director in a press release.

"While North American companies currently contribute the largest amount to offshore BPOs, the market is still nascent, leaving significant opportunity for near-term growth.

"This study validates the capabilities and expertise of select Indian BPO suppliers, and suggests that Fortune 2000 companies should actively consider off-shoring their business processes on a larger scale to unlock additional values," she added.

News: GAIL to invest Rs 25,000 cr in next 5 years

(PTI 09/05/2007) New Delhi - State-run GAIL (India) Ltd plans to invest about Rs 25,000 crore in laying new pipelines and expanding petrochemical business during the next five years, a part of which may be raised through sale of its stake in ONGC.

"Out of the total capex, Rs 10,000 crore will be funded from internal resources and the remaining Rs 15,000 crore will be borrowed from domestic and overseas market," GAIL director (finance) R K Goel told a news conference here.

The company holds 2.4 per cent stake in Oil and Natural Gas Corp, which is worth Rs 4,672 crore at today's share price of Rs 909.

"We may look at selling part of our holding in ONGC to meet the capex requirements," Goel said.

GAIL's current debt-equity ratio of 0.12:1 will help leverage debt for the expansion projects. "We are getting ourself rated. Moody's Hong Kong is rating us and once that comes, foreign debt will be easier," he said.

The company will invest Rs 2,744 crore during current fiscal - Rs 1,761 crore in laying new gas pipelines, Rs 146 crore in petrochemicals, Rs 500 crore in oil and gas exploration and Rs 268 crore in new projects.

"Next year, the capex will be around Rs 6,000 crore and we may borrow Rs 2,500 crore toward the end of the current fiscal to meet part of that requirement," he said.

The state-run gas transporter may raise as much as 60 per cent of the planned borrowings overseas while the remaining would be domestic debt.

Company chairman U D Choubey said GAIL recorded a 11 per cent jump in turnover in 2006-07 to Rs 16,407 crore. Net profit was Rs 2,387 crore against Rs 2,310 crore a year ago.

News: Indian textile exports up 7.67% in 2006-07

(PTI 09/05/2007) New Delhi - Textile exports have registered a growth of 7.67 per cent in 2006-07 compared to the previous year, the Rajya Sabha was informed on Wednesday.

"According to provisional data by the Director General of Commercial Intelligence and Statistics (DGCI&S), overall textile exports have grown by 7.67 per cent during 2006-07," Minister of State for Textiles E V K S Elangovan said in a written reply.

However, this growth was slower than the 26 per cent rise (in dollar terms) witnessed in 2005-06.

Replying to another question, Elangovan said the estimated cost of the sanctioned 30 projects under the scheme for Integrated Textile Parks is Rs 2,902.88 crore, of which the government would provide Rs 1,057.16 crore.

To a separate query, the Minister said the Kerala government has forwarded a proposal to the Centre for setting up a National Institute of Fashion Technology (NIFT) at Kannur.

The state government has been informed that the proposal to set up an NIFT centre is being looked into by the Board of the institute taking into account the feasibility consideration, he added.

News: Bharti Enterprises ties up with Global Retail

(BL 08/05/2007) New Delhi - With interests in telecom, insurance and retail, Bharti Enterprises on Monday announced its entry into the education sector. Bharti Resources, a subsidiary of Bharti Enterprises joined hands with private vocational education provider Global Retail School (GRS) to impart training in retail management.

"It is a marriage between the opportunity to enter the education sector and the need to augment our talent resources," said Sanjeev Duggal, CEO and Executive Director, Bharti Resources.

Bharti will absorb "many of the 15,000 students that will be trained in the first year", he added.

The fields in which the course would be offered include retail sales and marketing, visual merchandising and space planning, retail supply chain management, retail management and store operations.

Duggal said the company was also looking at imparting training in areas such as insurance and telecom.

The retail sector would offer around 2.5 lakh jobs in the next two years, said Asitava Sen, Vice-President (Retail and Consumer Goods), Technopak.

Global Retail School (GRS) is a wholly-owned subsidiary of Cosmo Aviation Training School and runs the `Flying Cats' brand of aviation institutes.

On offer are six-month and three-months certificate courses and a one-year diploma in retail management, to cost Rs 30,000, Rs 15,000 and Rs 50,000 respectively. The courses would be offered through 30 existing centres of GRS and another 30 to be opened by the end of the year in tier II and III cities.

The eligibility of the course would be plus-2. The one-year diploma course would be offered in partnership with the Annamalai University.