Mobile Apps revolution. Internet usage on mobile phones is growing at a scorching pace, giving rise to predictions that mobile internet usage will soon overtake desktop computers. It is estimated that the apps market in 2012 will be worth $17.5 bn. But what actually will make the apps market hot?

* Apps in local languages: In India downloading or buying mobile phone apps is still a new trend. One of the reasons is that most apps are developed for the English speaking audience. The year 2012 would see apps targeted at Indian consumers comfortable with their regional languages. So imagine Angry Birds in Malayalam or Quickoffice in Punjabi. Apps targeted at specific demographic profiles in their own languages could be a big trend in 2012.

* Localised apps: As the popularity of apps increases and with more and more people adapting to them, launch of niche apps seems to be just round the corner. If there is already an app for almost everything you can imagine, why can’t your kirana store owner launch his own app. For example, on your way home from office in the evening, you open your friendly kirana store’s app on your smart phone and select the grocery you want to purchase. As soon as you reach home the grocery is already waiting for you.

* Ecommerce on your mobile: We are witnessing a second innings of e-commerce in India, and there is also a quiet revolution taking place. The Indian consumer has matured and is no longer hesitant of shopping online. Till now PCs and laptops were used for browsing and looking for the best deals. But with information about most products readily available, most online purchase decisions are made quickly. What this means is that you don’t really need a 17 inch screen to complete an online purchase; you can do it on your mobile phone app.

Most ecommerce are companies have either launched or are working on their apps. 2012 will see e-commerce shift to the mobile phone.

* Media on mobile: Media houses want to reach out to their consumers in every possible way. First they sought out their consumers on the internet through websites. With the growing popularity of mobile phone apps, they are launching customised apps, which stream the latest news, updates and advertisements. While most leading media houses around the world have launched their mobile apps, 2012 will see more such apps, giving media houses access to both Indian and international target audience. Consumption of news and entertainment through mobile apps will see a sharp rise in 2012.

* Voice commands: Keying in commands on your mobile phone apps seems so last decade. With voice recognition technology becoming more advanced it’s only natural that apps in the near future will accept voice commands. When viewing photos slide show on the new social networking app, you just need to say ‘pause’ or ‘play’ to control the slide show.

With so much happening in this space, 2012 is going to be an exciting year. Many of us — the consumers and the producers — are keenly observing this dynamic market for signs that show that the mobile phones space will one day be as big and as important as the internet.

CHENNAI: With more than 60 new models and upgrades lined up for debut, Auto Expo 2012 in Delhi will pack in a lot of launch excitement. But unlike earlier years, this time car companies are looking to expand their stable by creating niche products.

Across the price spectrum, from Maruti to Mercedes Benz, the idea is to try out something new, beyond bread and butter segments. Given the slowdown in demand, companies feel it’s time to explore new segments which will be less price-sensitive and create a buzz.

Known for its formidable footprint in the small car market, Maruti Suzuki is showcasing two new products this time round – the Ertiga MUV and a concept compact SUV. Neither falls in the small car category.

“This is our way of expanding our portfolio and branching out into newer segments,” says Mayank Pareek, managing executive officer (marketing & sales), Maruti Suzuki. “Right now the Ertiga segment is virtually non-existent in India. So, we want to create this niche and ride the first mover advantage. That’s the job of the market leader – identify niches and cater to them ahead of the pack.”

MNC biggie Volkswagen, also known for its small car focus, will showcase its iconic Beetle, a premium hatch whose Rs 20 lakh-plus price tag means it will never be a volume spinner. But as brand builder it pulls a mean punch. The company isn’t showing its UP small car, already showcased at the Frankfurt Motor Show and has plans for an India launch.

“Our brand is still at a nascent stage of awareness so we wanted a brand building tool for the Auto Expo. The Beetle is our most iconic product and the best vehicle to create brand awareness,” says Neeraj Garg, member board & director, Volkswagen Passenger Cars, Volkswagen Group Sales India. The company says there’s no decision on launching the Beetle in India just yet.

In the premium segment too the buzzword is niches with a difference. Both Mercedes Benz and BMW are showcasing products that are miles away from their core market of luxury saloons.

While BMW is launching the iconic Mini Cooper premium hatchback in India, arch rival Mercedes Benz will showcase its B-Class premium hatchback, which is due for debut in India by 2012 winter. The Mercedes roster will also include models like the SLS AMG Roadster, the SLS GT3 and the DTM car along with a range of performance cars from the AMG stable.

Like Maruti, Fort too is expected to showcase a compact SUV concept though company officials are tightlipped about the details. The company has only announced that it will showcase an “all new vehicle planned for introduction in India and other global markets in the near future”.

M&M will highlight its Ssangyong range including Rexton and Korando E. “The idea is to create some excitement during the expo but not everything that we showcase will come to India immediately,” says Pawan Goenka, president-auto and farm equipment division, M&M.

MUMBAI: India’s low rate of diagnosis and disease awareness presents ample opportunity for drug makers to do more in the country, Vivek Mohan, managing director, Abbott India, said.

Abbott which is a leader in branded generics in India is also betting big on the diognostics business “Diagnostics is one of the most important parts of diversified diagnosis business. We are trying to create presence that is strong to the needs of India,” Mohan told ET in an interview.

Nutrition is another focus area for the US-based pharma company, one of the market leaders in nutrition products with brands such as Pediasure. The company has partnered with the Indian government and schools to increase awareness regarding child nutrition, Mohan said. One of the intitiative is a providing mid meal to half a million population in Andhra Pradesh for the next three years.

On its future plans in India, a year after it made the costliest acquisition of Piramal Healthcare, Abbott said it has a long way to go in the country.

“We do not make noise, but Abbott is growing twice the market size,” said Mohan.

Abbott jumped to number one spot in domestic pharma market when in 2010 it acquired Piramal Healthcare for Rs 17,000 crore, considered as the costliest deal in the history of pharmaceutical sector.

Its India unit recently launched a campaign named ‘India Citizenship Report’ to familiarise the Indian population with brand Abbott and its products. Its key partner in this initiative is the state goverments with whom the company has launched programes that is aligned with its therapeutic product portfolio.

Post the Piramal acquisition, the market was abuzz that Abbott was not able to integrate the company. However, defending the company’s decision, Mohan said, “It is the most unique and effective way any company has managed an acquisition. Each business has its strength and continues to do what they are good at.”

Pune: In a bid to tap into the increasing IT usage by small and medium businesses (SMBs), Dell today announced it would be increasing focus on this rapidly growing market segment.

Rekuram Vardharaj, country marketing manager, medium business, Dell India said that there were close to eight million SMBs in the country, of which about 1.5 million were adressable by IT.

“An increasing number of small and medium businesses are using IT and we’ll aim to provide bespoke solutions that can address their needs,” he said. Speaking at an event in Pune, Vardharaj pointed out that the city alone had close to 80,000 SMB enterprises, with the IT spend by medium businesses in the range of $70-75 million making it one of the focus markets for the company. THE ICT spend by the SMBs in India is estimated to be in the region of $10bn.

“The offerings will be aimed to addressing the pain points of these enterprises which tend to be issue of constrains -of time, budgets and resources. We would like to partner with the businesses and provide hardware and service solutions with the minimum possible downtime for the customer,” he said.

Dell is the number one brand in the consumer and SMB segments in the country. It has in the recent past launched a number of SMB specific products like the Equal Logic storage solutions and the Vostro V131 laptop.

BANGALORE: Canadian brewer International Breweries is on the look out for brewery acquisitions in India and is rolling out its second brand Australian Draught in India.

The around $40-million parent firm makes brands such as Australian Max and Canadian Blonde in Toronto.

The company is keen on investing in the Indian market. “We are looking at acquiring a brewery in south India in six months. We are in preliminary talks at the moment,” Peter S Harvey, executive director of International Breweries, said.

It entered the Indian market by tying up with Mohan Meakin in 2001. However, restrictions in the UP market prompted it to partner Bangalore-based Khodays Breweries to manufacture its brands since 2009.

“We know we are not a household name in India yet,” Harvery, said with reference to competition from Indian and multinational companies.

Vijay Mallya-promoted United Breweries holds the dominant share of the Indian beer market. Companies such as SAB Miller, Carlsberg and Anheuser-Busch InBev have been betting on the Indian market as well. Molson Coors too acquired a controlling stake in Cobra India to set up a joint venture for the Indian market this year.

“The Indian market is the fastest growing in the world. We have believed in it in the past 10 years,” Harvey said. “At times it is challenging, as it is hard to establish a foothold because we are not a global giant, but we see it becoming one of the biggest in the world.”

He said that the company’s focus is now on marketing its brands Australian Max and upcoming mild beer Australian Draught. Strong beer Australian Max retailed at Rs 65 for a 650 ml bottle and at Rs 35 for 330 ml will expand reach in Karnataka as well as Pondicherry and Goa next. States such as Tamil Nadu, Andhra Pradesh and Kerala will be on the road map for the next 18-20 months.

Australian Max, manufactured at Koday Breweries’ Bangalore plant, picked up the title of World’s Best strong beer and Asia’s best strong lager at the World Beer awards this year.

Strong beer (with alcohol content above 5%) accounts for nearly 80% of beer consumption in India.

PUNE: A debt restructuring package from the National Bank for Agricultural and Rural Development (Nabard), a little surge in demand due to Christmas and New Year and a reduction in entry barriers by some states have revived the hopes of sick wine industry in Maharashtra. The wineries are expecting more crushing in the next year.

“With the rehabilitation package of Nabard, the financial crunch of the wineries has been over. We have now funds for marketing. Many wineries have started business restructuring,” said Jagdish Holkar, president of All India Wineries Association.

Some wineries that did not crush last year are expected to begin partial crushing in 2012 while others will be able to undertake marketing operations. The wine industry in the state has 15 to 20 times more crushing capacity than it generally does.

Wine sale in New Delhi has increased recently by 40% as the entry barriers have been reduced for small wineries. The total crushing of wine grapes in 2012 is expected to be 10 million litres. Arjunsinh Mohite Patil, owner of the Fratelli Wines, said: “The 2012 season will be good for grape crushing.” Fratelli owns a vineyard spread over 240 acres.

As the industry is hopeful of increased sales during the peak consumption months of December and January, it expects some of its tanks to get empty. This will make space for newly crushed wine in the next year.

The Agricultural and Processed Food Products Export Development Agency (APEDA) is trying to help the wine industry explore global markets. As part of its efforts, a wine show and a buyer-seller meet will be organised in New Delhi in the first week of January.

“We will invite ambassadors and other representatives from various countries where we see potential markets for Indian wines. These countries include USA, Canada, Vietnam, Germany, Cameroon, Ghana, Uganda, Zambia, Tanzania, South Africa, Mauritius, Japan and Sri Lanka.

India has recently become the 45th member of OIG, the international organisation on wine, and as a result the country will have to follow international norms and standards in wine processing. More than 50% of the wine grape farmers in the state have already uprooted their plants.

“Today, in Sangli district, the acreage of vineyard has fallen from 2,500 acres to 300 acres, which is enough for crushing by only two wineries,” said KT Mane, CEO, Riona Wines.

Riona Wines is a joint venture between the Sangli-based grape grower KT Mane and Cantine Enzo Mecella and Terese Cortesi Moncaro . As the industry is hopeful of crushing more grapes in 2012, many wineries have already started signing contracts with farmers, especially in Nashik district, where a little shortage of wine grapes is expected next year.

“There might be a little shortage of wine grapes this year. But as the weather condition is good, we will get a good yield from the existing vineyards,” said Holkar.

New Delhi: The Centre has ruled out re-visiting the Cabinet’s decision to allow foreign direct investment (FDI) in multi-brand retail. However, in view of the strong opposition to the move from certain quarters, indications are that the formal notification of the Cabinet decision may get delayed.

“The Ministry is working on the guidelines to implement the decision. The rules will be framed which answer the issues raised and decisions taken in the Cabinet,” Mr P.K. Chaudhery, Secretary, Department of Industrial Policy and Promotions (DIPP), said on Thursday. The DIPP is the nodal department of the Commerce Ministry for FDI policy.

He refused to speculate on the time line for issuance of guidelines, though the Government last Friday announced that the press note will be issued this week.

Admitting that States opposing the move could block the entry of foreign investors in the area, Mr Chaudhery said that State Governments were consulted on the issue, and given “ample opportunity” to respond on the proposal. Nevertheless, officials admitted that the DIPP did not write directly to the State Governments while the policy was being formulated.

He, however, said that States were consulted when the issue was debated by the Standing Committee of Parliament attached to the Commerce Ministry. Later, when the discussion paper was placed on the Web site, States, as stakeholders, had the opportunity to respond, he pointed out.

He also clarified that the Government will not be revisiting the decision in light of the opposition being raised to the move. Asked whether the Government will initiate a fresh public debate on the proposed guidelines before notifying them, Mr Chaudhery said, “If my answer to you was yes, that means I am conceding that we will revisit the policy. No.”

Talking about the controversial norm of sourcing 30 per cent from Indian small and medium enterprises, he said that this will not violate any international commitment including the General Agreement on Trade in Services (GATS). Even now, a multinational like IKEA is sourcing 68 per cent of its textile requirement from India, he added.

The Secretary clarified that if there is fear of excessive import or dumping of foreign goods, there are anti-dumping laws or provisions under the export-import policy. He also said that linkage of import with FDI is completely misplaced.

He ruled out any sectoral regulator for retail trade. He explained that the Competition Commission of India (CCI) was there to take action against predatory pricing.

“CCI will watch the situation and take cognisance, if required,” Mr Chaudhery stated.

Ahmedabad: Mumbai-based Atlanta Infrastructure Development and Real Estate has received in principle approval from Gujarat government to set up a $ 2 billion theme park in Gujarat.

The Gujarat Industrial Development Board and Gujarat Tourism Board has already cleared the project and state cabinet is expected to give a final nod in a few weeks, official sources associated with the project told ET.

Development of various components has been envisaged in the four phases. The first phase of the project will start in April 2012. The project will be spread across 13 square kilo-meters, the proposed leisure and one stop entertainment city near Surat.

The site identified at Suvali Beach, which has a 3.3 km stretch along the Arabian Sea coast, is located around 20 km from Surat will have five theme parks like nature park, amusement park, water park, beach park, ice skating and skiing dome, restaurants, hotels, studios, forest villas, beach villas, studio lagoon and apartments and villas among others.

The initial investment in the theme park will be about $2-billion, which comprises of land development cost, building facilities, transport, technologies, design and planning. The project cost also includes interest during construction. Market research and financial model is being done by Ernst & Young. The conceptual plan is done by Morphogenesis.

The project will be financed by a mix of equity and debt. The fund would be constituted by infusion from promoters and debt from financial institutions, advances and deposits received from franchises of hotels, commercials, residential, food plazas and revenues from villas and apartments.

Mumbai: Despite the global economic challenges, IT spending in India by enterprises will increase by 9.1 per cent in 2012, according to a report from research firm Gartner.

IT spending in India is projected to total $79.8 billion in 2012, against $73.1 billion in 2011.

And this is being attributed to the fast paced growth in India’s burgeoning telecommunications space and the growing adoption of devices such as smart-phones and tablet computers, especially in tier-2 and tier-3 cities, a Gartner analyst said.

“A lot of new IT infrastructure is being bought in tier-2 and tier-3 cities both in the enterprise and retail segments…moreover, the 2G spectrum scam has not had any sizeable impact on IT spending in the space,” he added.

Largest segment

The telecommunications market is the largest IT segment in India with IT spending forecast to reach $54.7 billion in 2012, followed by the IT services market with spending of $11.1 billion.

The computing hardware market in India is projected to reach $10.7 billion in 2012, while software spending will total $3.2 billion, Gartner said.

It may be recalled that the Telecom Regulatory Authority of India has pegged India’s mobile teledensity at 72.12 per cent or 86.57 crore wireless subscribers as of August.

According to Gartner, worldwide IT spending will reach nearly $3.7 trillion by current year end. Of this, emerging economies such as India, China, Brazil and others will account for $1.013 trillion.

Speaking at the inaugural Gartner Symposium here in Mumbai, Mr Peter Sondergaard, Senior Vice-President at Gartner, said two-thirds of Chief Executive Officers surveyed by Gartner believe that IT’s contribution to their industry in the next 10 years will be greater than in any prior decades.

“IT is a primary driver of business growth. For example, this year 350 companies will each invest more than $1 billion in IT. They are doing this because IT impacts their business performance,” said Mr Sondergaard.

Three ‘forces’

Going forward, Gartner has identified three ‘forces’, namely cloud computing, social media computing and information explosion that will change the way businesses will be conducted going forward. “The impact of these forces will make architectures of the last 20 years obsolete… Together, they force the issue – they drive us to create the post-modern business, drive simplicity and force creative destruction,” Mr Sondergaard said.

New Delhi: The Cabinet finally paved way for the entry of global retail majors like Wal-Mart, Tesco and Carrefour to open independent multi-brand retail outlets in India.

The Cabinet has permitted foreign direct investment (FDI) of up to 51 per cent in multi-brand retail. Simultaneously, the Cabinet also gave the nod for raising the FDI limit in single-brand retail ventures to 100 per cent.

The policy will allow multi-brand foreign retailers to open outlets only in cities which have a population of more than 1,000,000 as per the 2011 Census. At present, there are 55 such cities which would help big retail chains to move beyond the metros to smaller cities.

The clearance comes with several conditions attached to it. Foreign investors will be required to invest up 50 per cent of total FDI in back-end infrastructure. Such infrastructure will include capital expenditure on all activities, excluding that on front-end units. Expenditure on land cost and rentals will not be counted for purpose of back-end infrastructure.

Moreover, retailers will need to source at least 30 per cent of manufactured/processed products from small industries. However, there will not be any obligation on the part of retailers to source agricultural produce such as fruits and vegetables.

The Government of India has also retained the first right on sourcing agricultural produce. It makes 30 per cent sourcing from small and medium enterprises mandatory, as soon as the FDI limit exceeds 51 per cent.

Opening up of FDI in multi-brand retail trade and further liberalisation of single-brand retail trade, as per the Government, will facilitate greater FDI inflows besides additional and quality employment.

New Delhi: A slowdown in sales will not deny car lovers the opportunity to size up new automobile beauties. Car companies are hardly deterred by the sector’s woes when it comes to launching new models. January’s Auto Expo in Delhi has as many as 55 launches lined up.

The last edition (in 2010) featured 50 launches, including 10 global debuts. But, the sales growth back then was impressive. The show itself is getting bigger. There will be more than 50 participants at January’s expo against 42 the last time.

New players include Peugeot Citroen, which is in the process of setting up a manufacturing plant in Gujarat, super car manufacturer Bugatti, Japanese commercial vehicle maker Isuzu, Kamaz Vectra, a Russian company that makes trucks in India, local name Garware Motors, which has started selling superbikes, Daimler Commercial Vehicles, BMW Motorrad, off-road vehicle maker Polaris and the UK-based Triumph Motorcycles. Bajaj Auto’s much awaited small car, which promises to have the best mileage in its class, will be unveiled at the show.

The launch is crucial as it will also be the first time the company’s partners Nissan-Renault (for whom it has built the car) will get a close look at the offering. The decision to go ahead with the project or call if off will be made thereafter.

Maruti Suzuki will unveil two cars: a concept sports utility vehicle (SUV) and a new product the company has refused to reveal any details about. Sources in Tata Motors say it will launch a passenger vehicle and a commercial vehicle at the Auto Expo but not the diesel Nano. A concept car is, however, expected to be on display.

Peugeot is expected to showcase its 508 Sedan, the first product it will launch in 2014, apart from other cars it plans to bring to India. Industry sources say Renault’s small car Pulse is also expected to be launched at the expo. Ford is likely to launch EcoSport, a mini-SUV.

In the two-wheeler segment, Yamaha will show its range of scooters, an area it is entering. Piaggio will showcase a motorcycle for the first time. Bajaj Auto will bring its KTM bikes to the show. Mahindra & Mahindra, analysts say, will launch a whole host of two-wheeler offerings.

To promote electric vehicles, the organisers will for the first time have a procession of theirs. Companies expected to participate in this segment include General Motors, Tata Motors (a hybrid bus will be showcased), Renault and Maruti Suzuki, among others.

In the super luxury class, the usual suspects, Ferrari, Porsche, Maserati, Lamborghini and Rolls Royce, will make their presence felt.

Event organiser SIAM (the Society of Indian Automobile Manufacturers) is having to deal with space constraints due to the high interest.

SIAM senior director Sugato Sen said, “The built-up area available at Pragati Maidan is around 70,000 sq metres. The requirement is to the tune of 100,000-110,000 sq metres. We have asked members to curtail their floor space requirement up to 30 per cent.” Nearly 1.2 million people visited the expo last year.

New Delhi: $3.3-billion US food giant McCormick and Company has identified India as a top priority market and says is committed to invest in this fast-growing market.

McCormick, which recently formed a joint venture with Kohinoor Foods, a leading basmati rice brand in India, foresees India to be a significant business in the next 10 years and so far has invested more than $150 million in India.

On his visit post-signing joint venture agreement in India with Kohinoor foods, Alan Wilson — chairman, president & CEO of McCormick — said, “McCormick has been participating in the Indian economy for more than 100 years beginning with sourcing of pepper and other flavor ingredients from India for international markets. Our businesses in India are expected to be important contributors to our future success.”

The Indian packaged food industry is estimated to be worth $10 billion and is growing along with families’ disposable income, making an attractive proposition for participation by McCormick.

“Our mission is not only to grow Kohinoor’s basmati rice business but also to expand it further in a big way through other food categories that deliver flavor like cooking ingredients and convenience food,” he said.

According to him, Kohinoor is an ideal fit within McCormick’s portfolio because of its flavorful products, excellent brand equity and pan-Indian distribution infrastructure. McCormick expects sales revenue of approximately $ 85 million in its first year of operations.

McCormick is also evaluating the launch of products from its global portfolio of flavor brands into India. Market research in this area is underway. McCormick plans to bring in the latest food technologies and global best practices to serve Indian consumers through their favorite Kohinoor brands.

McCormick expects to retain and grow all the current assets of Kohinoor foods in India and distribute Kohinoor products through its exclusive agreement with Kohinoor Foods Ltd to source and manufacture Basmati rice through their existing facilities.

Mr. Wilson anticipates McCormick becoming a leading player in the Indian food industry by enabling cooks to prepare better tasting food helped by McCormick’s Passion for Flavor.

New Delhi: Over the next 12-24 months India could attract a massive $80 billion in foreign direct investment (FDI), according to a research report by Morgan Stanley. India received $48-billion FDI in the last two years. “The findings show that global companies see real opportunity in India and that their investment appetite is increasing, notwithstanding continuing negative perceptions around infrastructure bottlenecks,” said Ridham Desai, head of India Research at Morgan Stanley.

The startling number came out of a survey of 176 of the firm’s internationally-based research analyst teams that cover 1,766 global companies. These teams determined the likely India investment opportunity recognised by the companies they covered. The survey did not involve direct interaction with the companies.

“Conducting a survey among large companies worldwide was not feasible due to very high costs and time taken,” the detailed note says explaining the survey.

The 20% of the companies covered in the survey have already invested nearly $80 billion into India, almost 53% of the total FDI into the country.

“As per our global analysts, 59 new companies are likely to invest in India while 67 of the currently invested global companies are unlikely to make further investments,” the report says.

However, according to the survey, despite the intentions to pump in such large amounts India is still not a high priority destination

New Delhi: In a bid to strengthen and deepen its strategic partnership with the United States, India will set up a “higher education platform” to enhance collaboration in research, skill development and student and faculty exchange. The announcement came as the first ever India-US education summit wrapped up in Washington. Both countries stressed on the need to enhance the scope of collaboration and identify new ways to encourage linkages and exchange programmes.

In a joint statement on higher education cooperation US Secretary of State Hillary Clinton and human resources development minister Kapil Sibal agreed to make the higher education dialogue an annual bilateral event to “map out strategies for partnership in the field of education” between the two countries.

The dialogue, which would be held alternately in the US and India, should “identify areas for mutually beneficial exchanges and provide a platform for intense and meaningful collaboration among academia, private sector and government on both sides,” the joint statement said. India announced its intention to set up an “India-US higher education platform as a means to pursue these goals,” with Sibal pointing out that the dialogue process has to be managed “effectively”.

Both Sibal and Clinton were satisfied with the progress achieved under the Obama-Singh 21st Century Knowledge Initiative, launched in 2009. Proposals under the initiative will reviewed by a joint working group for academic awards in support of university partnerships. As part of the partnership, their reiterated their commitment to the Fulbright-Nehru Program and its contribution to leadership development and scholarly achievement and to encouraging an array of collaborations between higher education communities, such as the Yale-India program, for academic leadership and faculty development.

The two sides agreed to work together to ensure a continued expanded US-India higher education dialogue with representatives from government, academia and business that would interact on a regular basis. “Sibal and Clinton reaffirmed the strategic partnership between India and the United States for meaningful dialogue, cooperation, and engagement in the field of higher education,” the statement added.

The countries will also join forces to promote strategic institutional partnerships for strengthening and expansion of collaboration in priority areas of higher education, including science and engineering, social sciences, humanities, as well as address societal challenges in areas such as cyber security, energy, environment, health and agriculture, the joint statement said.

Enhanced cooperation in the field of education between the two would also include expansion in research and development, fostering partnerships in vocational education and skills enhancement, exploration of models for ‘educational institutions for the 21st Century’ and strengthening programmes for student and faculty exchange.

New Delhi: The Czech Republic announced that bilateral trade with India is likely to touch US$ 2 billion in 2012, on back of increasing economic engagement between the countries.

Mr Martin Kocourek, the Czech Republic Industry and Trade Minister with a 50-member delegation in New Delhi, said there are huge opportunities for businessmen of both nations to increase economic cooperation. He said both the countries can cooperate in sectors like chemicals, environment, engineering and infrastructure.

“Our trade has increased almost 10-fold during the last decade and we are likely to reach a new record level of $2 billion in 2012,” added Mr Kocourek at a CII function.

The bilateral trade between the nations stood at US$ 885.20 million in 2010-11, while India’s exports to the European nation amounted to US$ 208.42 million during the period.

The Czech Republic mainly exports auto components, machine tools, textiles, printing machinery and equipment for the energy sector to India. Its imports from India comprise of chemicals, electrical goods, pharmaceuticals, steel and textiles.

Source: The Economic Times, Oct 16, 2011

CHANDIGARH: With financial assistance from the World Bank for a Rs 750 crore road project, the Punjab Government today launched a project for immediate upgradation of roads in the state.

Deputy Chief Minister Sukhbir Singh Badal said here today that the state government has inked the Output and Performance-Based Road Contract (ORPC) project with the World Bank, making contractors accountable for immediate maintenance of roads.

Under the OPRC model the potholes would be repaired within 24 hours and cracks filled within three days. Contractors are liable to lose part of their monthly payment if the deadline is not met.

HYDERABAD: NYSE-listed French pharma giant Sanofi Aventis expects upside surprises in vaccines, animal health and consumer health products in emerging markets such as India and China in the coming years till 2015, and plans significant investments in manufacturing facilities in the region. These areas would shoulder sustained profit growth in the post-blockbuster era, said chief executive officer Christopher A Viehbacher.

As part of this long-term initiative, the company would focus around six growth platforms that include emerging markets, human vaccines, diabetes solutions, consumer healthcare, innovative products and animal health, he told reporters on Wednesday. In the process, it would make investments worth $300 million in Shantha Biotechnics, which it acquired for 550 million in July 2009, to produce affordable vaccines for global markets.

Viehbacher, who was on a visit to the Shantha Biotechnics facility in the city, said the company is making strong efforts to cut costs and expand presence in the emerging markets. A 2-billion cost savings initiative that it undertook in 2009 would be reached by the end of this year.

However, what would clearly define Sanofi’s profits in the journey to 2015 would be the profit contribution from Plavix and Avapro in the US following the end of exclusivity in 2012, he said.

“Sanofi has undergone an impressive transformation over the last two-and-a-half years and the patent cliff is now almost behind us.” The company will continue to reduce its reliance on big products such as Plavix, which is the world’s second-best-selling drug with 2010 sales of $6.67 billion. It expects to file six new drug approvals by early 2012.

Plavix is used to inhibit blood clots in patients suffering from cardiovascular diseases and Avapro is used to treat hypertension. Both drugs are jointly marketed by Sanofi with Bristol Myers-Squibb and have a market size around $8 billion together.

“With the strength of the growth platforms, our objective is to delier sales growth of at least 5% per year on an average over 2012-2015,” Viehbacher said. The company is also looking at cost-control initiatives along with Genzyme synergies, which Sanofi acquired for $20 billion in April, to an extent of 2 billion by 2015.

“Through renewed focus on the planned growth platforms, we expect to generate about 80% group sales in 2015 from 66% this year,” he said. Besides, emerging markets including India are expected to account for 40% sales in 2015.

“We want to be a global company, compete locally to meet the unmet medical needs in emerging markets,” he said, adding the company is open to buyouts that are complimentary to its focus on growth platforms.

Its R&D potential would translate to launch over 19 projects by end of 2015.

Referring to the company’s India operations, Viehbacher dismissed apprehensions about quality issues at Shantha’s facility in Hyderabad. “We have implemented all the corrective measures. And we are quite positive about the relationship with Shantha and will be participating in global tenders once the pre-qualification process is completed for low-cost and highquality vaccines,” he said.

The World Health Organisation refused to certify a key vaccine – Shan5 – due to manufacturing defect. Shan5, a five-in-one shot, is administered to protect infants against diphtheria, whooping cough, tetanus, hepatitis-B as well as a bacterium that causes diseases such as pneumonia and meningitis.

It was Shantha’s blockbuster and fetched Shantha revenues of $340 million over three years when WHO terminated the contract. The cancellation opened up opportunities for makers of the same vaccine such as Panacea Biotech, Serum Institute and Novartis.

Sanofi had earmarked $300 million for expanding vaccine facilities in Hyderabad over three years starting 2010. Incidentally, Shantha Biotech’s new facility in Hyderabad will be the French drugmaker’s largest vaccine manufacturing facility in the world.

NEW DELHI | BANGALORE: The world’s top luxury goods makers like Louis Vuitton, Canali, Jimmy Choo, among others, will be the biggest gainers if the government opens up single brand retail to 100% foreign direct investment. Currently, foreign companies can invest only up to 51% FDI in single brand retail firms, forcing them to tie-up and depend on their Indian franchises.

This is a positive signal by the government and brands will now have a far greater appetite to invest in the country, says Tikka Shatrujit Singh, chief representative in Asia for French luxury firm LVMH. “It’s never too late to open up.”

This is expected to provide the push for a number of new brands to come into the country. “Brands that want to come in directly into the country have been waiting,” says Sanjay Kapoor, managing director of Genesis Luxury, which represents luxury brands like Canali, Jimmy Choo and Bottega veneta in India. Existing luxury brands in the country too want to expand across the country to leverage the large market in the country. The size of the Indian luxury market was estimated at $4.76 billion in 2009 and is expected to triple to $14.7 billion by 2015. As incomes rise across the country and the number of high networth individuals increase, awareness about luxury brands too is on the rise.

“While brands want to tap this vast market, many of them are hesitant to open stores in India unless they have full control as they are not comfortable with franchises. They also do not want to be a sleeping partner,” says Dinaz Madhukar, vice president at DLF Emporio, Delhi’s first specialised luxury mall.

Singh says the CEO of Louis Vuitton, Yves Carcelle has been lobbying for 100% FDI in single brand retail in India for some time now and it is about time it was opened up.

Currently, foreign companies can invest only up to 51% FDI in single brand retail and go through local partners. In most cases, their local franchise also sells competing brands from different outlets, where sometimes there is a conflict of interest. Now, they will surely have an option to come on their own.

LONDON: Global pharma giant GlaxoSmithKline is eyeing acquisitions worth $ 2 billion in India, the world’s fastest-growing drug market, media reports said.

“India is clearly on the radar. We plan to spend between $ 500 million and $ 2 billion. I would love to buy something in India,” GSK Chief Executive Andrew Witty told ‘The Times’ during his visit to Mumbai.

GSK, which employs 5,000 people and has turnover of more than $ 1 billion in India, was, however, unlikely to pursue large-scale merger and acquisitions, and was unwilling to overpay for companies, the report said.
“We already have an enviable brand in India so there is no need for us to pay a strategic premium,” he said.

“Others might need to do that, but we don’t.” Witty received plaudits in 2009 for slashing the price of medicines that GSK sold in the developing world and, most radically, for offering to share knowledge about some of its potential drugs that are protected by patents.

Overall, GSK’s drug sales in emerging markets grew by 22 per cent last year to 3.6 billion pounds, while profits swelled by nearly a third.

India’s pharmaceuticals market is worth 5.8 billion pounds a year, making it the eighth largest in the world.

Between 2010 and 2015 it is expected to grow by 15.7 per cent a year as newly affluent Indians spend more on healthcare, boosted by annual GDP growth of nearly 8 per cent.

The Indian government has also pledged to raise its overall spending on healthcare, which stands at only 1.2 per cent of GDP, making it among the lowest in the world.

His comments come amid India’s Industry Ministry seeking the Prime Minister’s intervention in regulating FDI into pharmaceutical companies, as it is concerned over a large number of acquisitions of Indian drug firms by MNCs.

The ministry fears that a spate of acquisitions by MNCs would create “an oligopolistic market with large companies working as a cartel”.

The Health Ministry has also suggested that the FDI be capped at 49 per cent in the pharmaceutical sector, fearing that acquisitions would increase the prices of generic drugs.

At present, 100 per cent foreign direct investment (FDI) through automatic route is allowed in the pharma industry.

MUMBAI: Faced with losses once its blockbusters start losing patents, Big Pharma is now devising strategies to counter the impact. Recent deals by pharma biggie Pfizer with domestic generic firm Dr Reddy’s and globally with Watson and Sanofi in France have been struck to stem revenue erosion as the world’s largest selling drug, Lipitor, loses patent protection in US in November this year.

Other pharma biggies may adopt a similar strategy as their blockbuster drugs (over $1 billion in sales) go off-patent , even as it opens up significant opportunities for domestic generics to enter into such deals.

Recently, Pfizer inked three agreements to ensure that it has a steady flow of revenue even after it loses its patent on cholesterol drug Lipitor, which netted annual sales of over $11 billion globally. While Pfizer settled a patent infringement suit with Dr Reddy’s over launch of a generic version of the blockbuster drug in the US, it also signed an agreement with Watson Pharmaceutical to sell an ‘authorized generic’ in the US for five years. Under the agreement, Pfizer will provide Lipitor to Watson to sell without the brand label in return for a share of the sales.

Analysts expect that Pfizer may enter into more deals, possibly with domestic companies like Aurobindo and Lupin for generic versions of the drug, in an attempt to offset the impending revenue loss. Says Sujay Shetty, partner PwC India: “Big Pharma will fight tooth and nail to trap whatever little revenue it can, and not surrender the huge market share it once had (through market exclusivity) to a generic competitor.”

Faced with an impending patent cliff (drugs losing patent protection), Big Pharma has not been able to discover new blockbusters which will mitigate revenue loss. Now, with the most-watched case, Lipitor, losing patent, pharma biggies like Pfizer will adopt a multipronged strategy to ensure they have a steady flow of future income, says Ranjit Kapadia , senior VP, Centrum, adding that more such deals are on the cards.

Lipitor’s patent expires in November in the US this year, and nine companies (global and domestic) have sought approval from the Food and Drug Administration to launch their generic versions. Under an agreement with Pfizer, Ranbaxy has the right to sell the generic (atorvastatin), for 180-days once the patent expires.

Source: The Hindu Business Line, Sept 29, 2011

New Delhi: A new climate change finance unit has been set up under the aegis of the Finance Ministry, Dr Kaushik Basu, Chief Economic Advisor to the Finance Ministry, said here today.

The idea behind setting up this unit was to bring stronger analytical thinking on a subject of growing importance, Dr Basu said at a roundtable event here on Wednesday.

He said that India was already engaged in international negotiations on climate change. “We have voluntarily pledged to reduce our carbon emission intensity. We have to deal with the consequences of global warming at home,” he added.

Dr Basu underscored the need for changes to the micro-economic incentives to enable India to switch to a low carbon growth economy. This assumes significance considering the fact that developing countries are more vulnerable to the impacts of climate change.

He also promised an expanded coverage on climate change in the next year’s edition of Economic Survey. For the first-time, the Economic Survey released in February had a dedicated section on climate change.

The Economic Affairs Secretary, Mr R. Gopalan, said that the 12th Plan will have as one of its key pillars a low carbon growth strategy. “One must bear in mind these actions are voluntarily proposed despite the fact that India does not have legally binding commitment under the global climate change regime,” he said.

He underscored the need for State governments and local bodies to also be a part of the climate change response. Mr Gopalan noted that various central ministries had already formed units to address climate change issues.

Bangalore: GMR Infrastructure on Tuesdsay said it won a project for widening the 555-km Kishangarh-Udaipur-Ahmedabad highway, from four to six lanes.

Worth around Rs 7,200 crore, this is the biggest project awarded so far by the National Highways Authority of India (NHAI). The Bangalore-based publicly held infrastructure developer won the project through international competitive bidding.

 The highway project would be implemented through a public-private partnership model on design, build, finance, operate and transfer (DBFOT) model for a period of 26 years, GMR said in a statement.

The highway section is a part of the Delhi-Mumbai (Golden Quadrilateral) corridor and goes through the newly-announced Delhi-Mumbai Industrial Corridor, which has high growth potential for commercial and tourist traffic.

GMR said it had got the Letter of Award and the concession agreement would be signed soon. Srinivas Bommidala, business chairman of GMR Urban Infrastructure & Highways, said “The project is attractive due to the fact that we shall earn revenue from day one, being a brownfield project.”

The roads business contributes less than 10 per cent to the Rs 6,000-crore top line of GMR Infrastructure, which derives a major part of its revenues from airports and power generation verticals.

According to senior company officials, a clinching factor for them was the amount of premium they projected to pay NHAI a year. GMR will pay a premium of Rs 636 crore for the first year, which will then increase by five per cent every year.

They said the revenue projection for the first year was around Rs 660 crore, expected to grow by 14 per cent year-on-year. “The first three-four years will be bit tight, as immaterial of the revenue we generate, we will have to pay the agreed premium to NHAI. Based on our extensive research on the traffic growth, we are hopeful it will pay out in the long term,” a senior official said.

According to the officials, GMR pipped Larsen & Toubro, Reliance Infra, GVK, NCC and Isolux, among others, for the project. GMR will raise Rs 5,400 crore in debt for this project, keeping the debt-equity ratio at 75:25. Work on the project will start from April 2012, within which GMR Infrastructure should achieve financial closure.

“Various lenders have shown interest in this project and we are looking at an interest rate of 11.5 per cent,” the senior official said.

GMR Infra entered the highways business in 2001 by winning two projects with benchmark annuity offer. It received early completion bonus from NHAI for completing the Tambaram–Tindivanam project ahead of schedule.

Bommidala said, “It is the dawn of a new era in the highways sector, as implementation of mega projects is being taken up under the DBFOT scheme as a precursor to large expressway projects expected to come up in the near future.”

Under the roads vertical, GMR Infra has nine projects covering 730 km. Of this, six covering 421 km are operational and spread equally between toll and annuity-based projects. Of the remaining, which are at the development stage, two are under toll, while the third one is an annuity contract.

NEW DELHI: US companies are looking at investing in sectors like energy, education, communications and infrastructure in India, thererby further deepening economic ties between the two countries.

“We are looking for markets (in India), partners so that we can have a win-win kind of relationship between India and US,” an adviser to US Senator Jeanne Shaheen said here.

Chad Kreikemeier, who is leading a 13-member trade mission to India, said the two nations “have got to widen their range from energy, education, infrastructure to defence market”.

The delegation comprises eight firms and educational institutions, including representatives from the Dartmouth College from New Hampshire.

“We sat down with senior officials from DRDO, Ministry of New and Renewable Energy and Ministry of HRD to hear their views on the ways to increase trade relations, seeking advice …” Kreikemeier, who is a trade and foreign policy adviser to Shaheen, said.

He was speaking at a business meeting organised by Indo-American Chamber of Commerce.

He said the US finds enough potential in India as it is an “absolute market” and would expand its infrastructure in next five years.

On increasing commodity specific exports from New Hampshire, he said India is the 28th largest market for goods — ranging from hi-tech products, computers, circuits to education — from the state.

The delegation is also wooing Indian students to study in New Hampshire universities, he said.

New Hampshire, located in north-eastern US, is home to many industries in sectors like electronic and medical products besides travel and tourism.

New Delhi: India is expected to overtake Japan to become the world’s third-largest economy in 2011 in terms of gross domestic product (GDP), measured according to the domestic purchasing power of the rupee, also called purchasing power parity (PPP).

The PPP is a method which estimates the size of an economy by leveling differences in prices that occur between countries when converting to a single currency. A dollar should be able to procure the same quantity of goods worldwide and the exchange rates between different currencies are adjusted accordingly under this method.

In 2010, the Japanese economy was worth US$ 4.31 trillion, with India trailing close at US$ 4.06 trillion. Due to the devastating tsunami and earthquakes in March 2011, Japan, however, is expected to contract in 2011. The International Monetary Fund’s (IMF) estimates state that the Japanese economy will contract by 0.7 per cent this year while the Indian economy will grow at 8.2 per cent. According to IMF forecasts, India and Japan were at par in 2011, but the disaster in Japan has brought the event forward. As suggested by an earlier report by consultant Price Waterhouse Coopers (PwC), the Indian economy would move ahead of the Japanese economy in 2012. The University of Pennsylvania’s PPP tables state that India has already moved ahead of Japan in 2010. It is estimated that the Indian economy will reach a size of almost US$ 5 trillion by the end of 2011.

“India should overtake Japan in 2011 to become the third-largest economy in the world at purchasing power parity,” said Sunil Sinha, head of research and senior economist at Crisil.

Countries from all over the world now consider India to be a fast growing economy with great opportunities. The benefit of having a bigger economy gives the government more bargaining power and clout abroad.

“A bigger economy would also mean more clout in international forums,” said Madan Sabnavis, Chief Economist at ratings firm Care. “India has the advantage of size. The scope of growth and excess capacity present in terms of resources would drive growth in the future,” said Sabnavis.

A change in the ranking points to broad trends in the growth trajectories of nations. “It’s a long process of development, but this shows that the markets are expanding and there is robust demand within the economy,” said Siddhartha Sanyal, Chief Economist, Barclays Capital.