Business In India | "India Airlines Least in Need May Gain Most From New Owner Rules"

By: Siddharth Philip and Vipin Nair
Source: http://www.businessweek.com
Category: Business In India

India’s decision to allow local airlines sell stakes of as much as 49 percent to overseas carriers may be of most benefit to operators least in need of investment.

SpiceJet Ltd. (SJET), which has said it’s in “no rush” for funds, may be the most appealing target for foreign investors because of the discount carrier’s low debt and record of profitability, said Sharan Lillaney, an Angel Broking Ltd. analyst. Kingfisher Airlines Ltd. may struggle to win investment, even as billionaire Chairman Vijay Mallya seeks new financing, after posting at least five straight annual losses.

“The biggest beneficiary will be SpiceJet as it has lower debt and a decent brand image,” Lillaney said. “Kingfisher needs to restructure its balance sheet and convert debt into equity before it can look at attracting any foreign investment.”

The two carriers and Jet Airways (India) Ltd. rose Sept. 14 on speculation the rule change will help the industry win funds following years of losses caused by price wars, high fuel taxes and a weaker rupee. Prime Minister Manmohan Singh’s government announced the end of the ban along with a similar easing for retailers as its moves to open up Asia’s third-biggest economy.

Kingfisher Debts
Kingfisher (KAIR) has said it is in talks on investment that depend up regulatory changes as it struggles under an 86 billion rupee ($1.5 billion) debt pile. The carrier has also cut two- third of services, grounded planes and halted international flights in a bid to end losses.

“I am skeptical whether Kingfisher is able to attract” foreign investment, said Nikhil Vora, Mumbai-based managing director at IDFC Securities Ltd. “Kingfisher’s significant leverage on its balance sheet makes it a challenging proposition for any buyer.”

The airline, named for liquor tycoon Mallya’s flagship beer, needs an immediate capital infusion of $600 million for a turnaround, according to CAPA - Centre for Aviation. The company’s founders will need to provide at least half of this before talks with a foreign airline could begin, the research company said.

Kingfisher has only an “outside chance” of selling a stake compared with SpiceJet and Go Airlines (India) Ltd., CAPA said in an e-mailed statement. The carrier has a long-term debt to total capital ratio of 162 percent, according to data compiled by Bloomberg. That compares with 76 percent for SpiceJet and 58 percent for Mumbai-based Jet Air.

Kingfisher has plunged 58 percent in the past year in Mumbai trading. SpiceJet has jumped 44 percent and Jet Air has climbed 35 percent. India’s three other main carriers, state- owned Air India, IndiGo and Go Airlines are all closely held.

Kingfisher Re-Engagement
The easing of the investment rules will help Kingfisher re- engage with prospective airline investors “in a more meaningful manner,” Prakash Mirpuri, a spokesman, said in a Sept. 14 text message. The carrier will also move toward re-capitalization and ramp up its operations, he said.

SpiceJet Chief Executive Officer Neil Mills didn’t answer calls to his mobile phone on Sept. 14. GoAir Managing Director Jeh Wadia, IndiGo President Aditya Ghosh and Jet Air Chief Operating Officer Sudheer Raghavan also failed to answer calls the same day.

Kingfisher posted a 6.5 billion rupee loss in the quarter ended June, compared with 2.6 billion rupees a year earlier. SpiceJet and Jet Air both posted profits in the period.

Non-airline investors from overseas were allowed to hold as much as 49 percent in local carriers before the rule change.

Gulf Airlines
Middle East airlines may be the most likely to buy into Indian carriers because of their geographical proximity, existing service connections and state backing.

Qatar Airways Ltd. Chief Executive Akbar Al Baker said in April that that anyone who didn’t want to invest in China or India “must be crazy.”

The country’s annual passenger numbers may surge to 180 million by 2020 from 61 million last year as rising wealth makes travel affordable to more people, according to a government forecast. Qatar Air declined to comment by e-mail yesterday.

Abu Dhabi-based Etihad Airways PJSC said yesterday equity investments are an “important evolution of its successful partnership strategy.” The carrier already has stakes in Virgin Australia Holdings Ltd., Air Seychelles Ltd. and Air Berlin Plc.

“The Indian aviation industry offers tremendous potential, with significant passenger movement on domestic and international sectors,” it said without commenting on whether it wanted to buy into a local carrier. The airline will add flights to a ninth Indian city, Ahmedabad, in November, it said.

Source: http://www.businessweek.com/news/2012-09-16/india-airlines-least-in-need-may-gain-most-from-new-owner-rules

Foreign Investment In India | "Policy on Foreign Investment in Power Trading Exchanges"

By: Invest In India
Source: http://investinindia.com
Category: Foreign Investment In India

The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Industrial Policy & Promotion for permitting foreign investment up to 49 percent, in Power Trading Exchanges.

The CCEA has decided to permit foreign investment, up to 49 percent (FDI & FII) [FDI limit of 26 per cent and FII limit of 23 per cent of the paid-up capital], in Power Trading Exchanges, in compliance with SEBI Regulations; Central Electricity Regulatory Commission (Power Market) Regulations, 2010; and other applicable laws/ regulations; security and other conditionalities. FII investments would be permitted under the automatic route and FDI would be permitted under the government approval route. This is subject to the conditions that FII purchases shall be restricted to secondary market only, and no non-resident investor/ entity, including persons acting in concert, holding more than 5 percent of the equity in these companies.

The approval is expected to strengthen the power trading exchanges and to enhance the availability of power, as well as improve its distribution for inclusive development. Introduction of global best practices, concomitant with the induction of FDI, is expected to lead to higher service standards in power trading exchanges.

As per extant policy, FDI, up to 100 percent, under the automatic route, is permitted in the power sector (except atomic energy). This includes generation, transmission and distribution of electricity as well as power trading, subject to the provisions of the Electricity Act, 2003. There is, however, no specific dispensation, under FDI policy, for power trading exchanges. The extant FDI policy permits foreign investment, up to 49 percent (FDI & FII) [FDI limit of 26 per cent and an FII limit of 23 per cent of the paid-up capital], in infrastructure companies in securities markets, namely, stock exchanges, depositories and clearing corporations, in compliance with SEBI Regulations. While FII investment is on the automatic route, FDI is allowed under the government approval route. Foreign investment in commodity exchanges is also allowed on the same lines.

Power trading is the purchase of electricity for resale thereof, while a power trading exchange provides an organized platform for fair, neutral, efficient and robust price discovery; extensive and quick price dissemination; and price risk management for the generators, distributors, traders, consumers and other stakeholders in the power sector. Power trading exchanges are transparent electronic platforms which help promote competition in power markets. They are in a nascent stage of development in India. In view of the functions they perform, as also their utility in the transfer of power from surplus to deficit areas, these exchanges need to be promoted, through greater investment and induction of global best practices, modern management skills and latest technology. Hence, there was a felt need to allow foreign investment into these exchanges.

Source: http://investinindia.com/news/policy-foreign-investment-power-trading-exchanges-12c3

Investment In India | "President calls for more investment to ensure health facilities in India"

By: Online Indian News
Source: http://www.onlineindiannews.com
Category: Investment In India

Prez Pranab Mukherjee has called for more investment from public and private sector to ensure better health facilities. Inaugurating a private hospital in Howrah district of West Bengal, Mr. Mukherjee said that substantial amount have been allocated in education and health sector in 11th and 12th five year plan besides different government initiatives for health care... Prez Pranab Mukherjee has called for more investment from public and private sector to ensure better health facilities. Inaugurating a private hospital in Howrah district of West Bengal, Mr. Mukherjee said that substantial amount have been allocated in education and health sector in 11th and 12th five year plan besides different government initiatives for health care.(air)

Source: http://www.onlineindiannews.com/content/view/2370/36/

Business In India | "Will Boeing's 787 Dreamliner turn Air India's business around?"

By: THE ECONOMICS TIMES
Source: http://economictimes.indiatimes.com
Category: Business In India

New hope is in the air for Air India. No, it's not related to government permission for foreign carriers to invest in domestic airlines that came on Friday. Airline FDI is expected to benefit private carriers with far lesser financial problems than the nation al carrier.

Air India's hope is about 186-foot long, boasts a top speed of up to 560 miles an hour and flies at least 9,440 miles (New York to Hong Kong) non-stop tanked up. It is a plane alright, but because of its ostentatious title, Dreamliner, and unique futuristic features, it would be easy to overlook that bit.

The 787-series Dreamliner is billed as a plane like no other, but in this part of the globe, it acquires a greater aura. Air India is the fifth airline to snap up the 787. But no other airline has entwined its future to a plane as the government-run carrier has with the Dreamliner.

When it embarks on its maiden flight on September 19 from Delhi to Chennai, the 787 will be carrying a load of expectations that would outweigh all the 256 passengers it can accommodate.

"We hope that the Dreamliner will take Air India back to its good old Maharaja (mascot) days," aviation minister Ajit Singh said when the first of the 27 planes the carrier has ordered landed on Wednesday.

Plane Truths Singh's excitement is understandable. The 787-series Dreamliner is the first mid-size airplane that can fly long routes, enabling airlines to tap non-stop routes, according to Boeing. Translation: passengers can avoid the pain of an airport transit.

Source: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/will-boeings-787-dreamliner-turn-air-indias-business-around/articleshow/16411872.cms

Foreign Investment In India | "India to allow foreign investment in retail, aviation"

By: Associated Press
Source: http://photoblog.nbcnews.com
Category: Foreign Investment In India

The government's surprise announcement Friday that it will allow foreign investment in retail and aviation and the sale of minority stakes in four state-run companies evoked sharp criticism from opposition parties and some of the ruling Congress party's coalition allies. A day earlier, the government announced a hike in the price of diesel fuel.
Hundreds of supporters of the Hindu nationalist Bharatiya Janata Party held a rally in New Delhi demanding that the government reverse its decisions, saying they would hurt the poor.

Source: http://photoblog.nbcnews.com/_news/2012/09/15/13886134-india-to-allow-foreign-investment-in-retail-aviation?lite

Investment In India | "ITC to speed up Rs 25,000-cr investment plan"

By: OUR BUREAU
Source: http://www.thehindubusinessline.com
Category: Investment In India

CHENNAI, SEPT. 15:
ITC Ltd is all set to expedite its Rs 25,000-crore investment plan, “as we consider this as the right time to invest in the Indian economy,” said Y. C. Deveshwar, Chairman of the conglomerate. He said this would enable Brand ITC to emerge stronger. “In the current global economic scenario, India needs strong brands to hold its own; and nothing is given, we have to earn,” he said.

Besides, this investment over five years will also generate more employment opportunities, leading to the country’s overall economic prosperity, he said.

Addressing the media here at the launch ceremony of the company’s new luxury property, ITC Grand Chola, he said ITC is prepared to invest even more should the need arise, as there would be no dearth of funds or lack of expertise. “However, the major challenge is formalities; statutory clearances take a lot of time,” he said.

40 PROJECTS IN PIPELINE

According to him, a chunk of the investment — over Rs 10,000 crore — has been earmarked to expand its hotels division. It has 40 hotel projects in the pipeline. Besides, it is planning one in Sri Lanka.

“Nepal and Bangladesh are also on our radar, though our first priority is to consolidate our position in India,” he said.

The remaining Rs 15,000 crore will be invested across verticals including food, lifestyle retailing, personal-care products, and packaging to agri commodities, paperboards and stationery.

For example, he said for the foods division, the company plans to set up manufacturing facilities closer to markets.

Near Chennai, it plans a logistics hub and a manufacturing unit on 40 acres.

Source: http://www.thehindubusinessline.com/companies/article3901546.ece

Foreign Investment In India | "Govt okays 8 foreign pharma investments"

By: Agencies/New Delhi
Source: http://www.gulf-times.com
Category: Foreign Investment In India

India has approved eight foreign investments in drugmakers worth $333mn in total, signalling the finance ministry may be winning a battle to open up the country’s fast-growing markets and giving a boost to global drugmakers hungry for growth.
As a condition of its approval, however, the government said the foreign companies including US-based Pfizer and Germany’s B-Braun would have to continue producing cheap drugs and maintain spending in ongoing research and development projects run by their Indian partners for five years.
Since becoming finance minister last month, P Chidambaram has directed officials to fast-track foreign direct investments (FDI) as part of a drive to revive investor confidence after India’s economy grew at its slowest pace in nearly three years.
Proposals had been delayed for months due to a lack of clarity over government policy, with some government bodies expressing concerns that medicine prices might rise after a few Indian drugmakers sold businesses to overseas rivals.
In all, Chidambaram approved 21 foreign direct investment proposals totalling Rs24.1bn ($433.5mn) on the recommendation of the Foreign Investment Promotion Board (FIPB).
The proposals were cleared after the government decided to allow up to 49% foreign direct investment in domestic companies with conditions, two government sources said.
The present rules allow 100% foreign investment for new companies being set up in India while overseas investment in existing companies needs FIPB approval.
The government did not give details of the investments.
A McKinsey report earlier this year projected India’s pharmaceutical market would triple to $20bn by 2015 and move into the world’s top-10 pharmaceutical markets.
“The absolute growth of $14bn will be next to the growth potential of the US and China, and in the same league as the growth in Japan, Canada and the UK,” it said.
Abbott Laboratories bought Mumbai-based Piramal Healthcare’s Indian business for $3.72bn in 2010 while Ranbaxy founders sold a controlling stake in the company to Japan’s Daiichi Sankyo Company for $4.2bn in 2008.
Global drugmakers such as Pfizer, GlaxoSmithKline and Sanofi also have a significant presence in the country and are looking to expand their businesses there.
Abbott has the largest market share followed by India’s Cipla and GlaxoSmithKline.
Meanwhile, news reports said yesterday that the government is to propose watered down legislation later this month to open up the retail sector to foreign supermarkets.
The Mail Today tabloid and Hindustan Times reported that the government would propose allowing groups such as US giant Wal-Mart or French multinational Carrefour to own up to 49% of local subsidiaries.
The legislation would also include provisions for state governments to set local conditions for the groups, a move designed to head off opposition to the highly controversial legislation.
Last December, the government, which has struggled to pass reforms, was forced to withdraw a proposal to allow foreign supermarkets to own up to 51% of their local subsidiaries.
Shopkeepers, opposition parties and even the Trinamool Congress, ally of the Congress-led United Progressive Alliance coalition came together to oppose the change in the law, saying it would destroy the livelihoods of small business owners.
The government sees foreign supermarkets as a way to improve the food supply chain and bring down prices, but the proposed legislation as reported yesterday might not be enough to attract them.
Allowing state governments to set conditions locally would increase the complexity of the regulatory environment and the 49% ownership cap would mean the groups would not have control over their Indian operations.
Any proposed legislation would also need to pass the parliament, which was disrupted almost every day of the last session which ended last Friday.
Foreign retail groups are already allowed in India, but they must run single-brand shops.

Source: http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=530707&version=1&template_id=40&parent_id=22

Investment In India | "Coal India to invest Rs.40,000 crore in 12th Plan"

By: IANS
Source: http://india.nydailynews.com
Category: Investment In India

New Delhi, Sep 12 — State miner Coal India Ltd (CIL) said Wednesday the company was committed to investing Rs.40,000 crore in the 12th Plan period (2012-17).
"Capital investment plan for the current and next 5 year plan was discussed. We have a plan for our Rs.25,400 crore (investment) for the current five year plan, plus another Rs.14,500 crore if certain conditions are made. So that takes us to Rs.40,000 crore total," CIL chairman S. Narsingh Rao said after a coal ministry review meeting of the company, chaired by Coal Minister Sriprakash Jaiswal.
According to Rao, capital expenditure over the next Plan period is to be mainly on developing more than 100 underground and opencast mines in seven coal producing subsidiaries.
CIL, which accounts for over 80 per cent of the domestic coal production, also plans to set up 22 new washeries. It is also planning acquisition of assets abroad.
Rao said apart from this, CIL is planning a conditional investment of Rs 14,500 crore on augmenting rail infrastructure.
"We plan to spend Rs.7,500 crore on rail infrastructure provided the Railways complete the project on time. We intend to spend another Rs.7,000 crore on rail projects for faster transportation of coal if all goes well,"
Earlier, the Coal India chairman along with heads of nine other public sector companies in the infrastructure sector met Finance Minister P Chidambaram and committed to stepping up investments.
Rao said CIL was making all attempts to boost production and was hopeful of meeting the production target of 464 million tonnes for the current fiscal.

Source: http://india.nydailynews.com/business/502bf965d4f8e0c6a325674b410e5a8f/coal-india-to-invest-rs-40-000-crore-in-12th-plan

Business In India | "‘India-Asean business fair to promote tie-ups’"

By: TNN
Source: http://timesofindia.indiatimes.com
Category:  Business In India

JAIPUR: The second India-ASEAN Business Fair (IABF) & Business Conclave slated from December 18 to 20 in New Delhi will give a fillip to business in the country, said Rajendra Bhanawat, managing firector of RIICO. Bhanawat was speaking as guest of honour at the road show for IABF organized in the city by the Federation of Indian Chambers of Commerce & Industry ( FICCI).

Bhanawat said it was heartening that just in its second year, the IABF was getting international participation from Asian countries like Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. He further said the fair will throw up avenues for enhancing trade and investments across sectors. It would serve as a platform for exploring innovative approaches to promote trade, investment, joint ventures and strategic market tie-ups, Bhanawat added.

Speaking on the occasion, honorary secretary general of Rajasthan Chamber of Commerce and Industry, K L Jain said this business to business forum, with scheduled meetings, is being organized on the sidelines of India-ASEAN Commemorative Summit 2012.

Source: http://timesofindia.indiatimes.com/city/jaipur/India-Asean-business-fair-to-promote-tie-ups/articleshow/16376649.cms

Business In India | "India pledges support to Palestine, announces USD 10 mlln"

By: Press Trust of India
Source: http://www.business-standard.com
Category: Business In India

India today announced a USD 10 million contribution to Palestine and pledged its support to Palestine's bid for full and equal membership of the UN.

Prime Minister Manmohan Singh and Palestinian National Authority President Mahmoud Abbas held comprehensive talks on host of bilateral issues and exchanged views on regional developments, particularly the developments in the West Asia and the Gulf region.

Three pacts, including one in the field of Information Technology, were also inked after the talks. "Support for the Palestinian cause has been a cornerstone of India's foreign policy. I reiterated India's firm support for the struggle of the Palestinian people to achieve a sovereign, independent, viable and united state of Palestine with East Jerusalem as its capital," Singh said at a joint- press event with Abbas.
The Prime Minister said India supported an independent Palestine living within secure and recognised borders, side-by-side and at peace with Israel. He also announced that India will "contribute USD 10 million to Palestine's budget for this year to help address its financial requirements."

Singh noted that India had played an active role in supporting the efforts of the State of Palestine to secure full membership status at UNESCO. "We will continue to support Palestine's bid for full and equal membership of the UN.

"We also look forward to early resumption of peace talks between the Palestinians and Israelis leading to a comprehensive resolution between the two sides," he said.

Singh's remark comes in the backdrop of the US making it clear that it will veto the Palestine bid for a non-member status in the United Nations later this month. At present, Palestinians only enjoy observer status.

"We continue to make clear that we believe that the only realistic path for the Palestinians to achieve statehood is through direct negotiations," the Prime Minister said.

Source: http://www.business-standard.com/generalnews/news/india-pledges-support-to-palestine-announces-usd-10-mlln/55020/

Foreign Investment In India | "Foreign Investors Buy Net 7.3 Billion Rupees of Indian Stocks"

By: Paresh Jatakia
Source: http://www.businessweek.com
Category: Foreign Investment In India

Overseas investors bought a net 7.3 billion rupees of Indian stocks yesterday, raising their investment in the equities this year to 644.1 billion rupees, or $12.5 billion, according to the nation’s market regulator.

Foreigners bought 20.3 billion rupees of shares and sold 13 billion rupees, the Securities & Exchange Board of India said on its website today. They sold a net 1.62 billion rupees of bonds, reducing their inflow into debt this year to 229.9 billion rupees, the data show.

The benchmark BSE India Sensitive Index (SENSEX) has increased 15 percent this year, helped by the biggest overseas equity flows among 10 Asian markets tracked by Bloomberg. Flows surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led the biggest annual slump of 52 percent.

Foreigners have invested 5.088 trillion rupees in stocks and 1.437 trillion rupees in bonds since they were allowed into the country in 1993.

The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.

Source: http://www.businessweek.com/news/2012-09-11/foreign-investors-buy-net-7-dot-3-billion-rupees-of-indian-stocks

Investment In India | "UPDATE 1-India approves eight foreign pharma investments"

By: Manoj Kumar and Kaustubh Kulkarni
Source: http://in.reuters.com
Category: Investment In India

NEW DELHI, Sept 11 (Reuters) - India has approved eight foreign investments in drugmakers worth $333 million in total, signalling the finance ministry may be winning a battle to open up the country's fast-growing markets and giving a boost to global drugmakers hungry for growth.

As a condition of its approval, however, the government said the foreign companies including U.S.-based Pfizer and Germany's B-Braun would have to continue producing cheap drugs and maintain spending in ongoing research and development projects run by their Indian partners for five years.

Since becoming finance minister last month, P. Chidambaram has directed officials to fast-track foreign direct investments (FDI) as part of a drive to revive investor confidence after India's economy grew at its slowest pace in nearly three years.

Proposals had been delayed for months due to a lack of clarity over government policy, with some government bodies expressing concerns that medicine prices might rise after a few Indian drugmakers sold businesses to overseas rivals.

In all, Chidambaram approved 21 foreign direct investment proposals totalling 24.1 billion rupees ($433.5 million) on the recommendation of the Foreign Investment Promotion Board (FIPB).

The proposals were cleared after the government decided to allow up to 49 percent foreign direct investment in domestic companies with conditions, two government sources said.

The present rules allow 100 percent foreign investment for new companies being set up in India while overseas investment in existing companies needs FIPB approval.

The government did not give details of the investments.

A McKinsey report earlier this year projected India's pharmaceutical market would triple to $20 billion by 2015 and move into the world's top-10 pharmaceutical markets.

"The absolute growth of $14 billion will be next to the growth potential of the U.S. and China, and in the same league as the growth in Japan, Canada and the UK," it said.

Abbott Laboratories bought Mumbai-based Piramal Healthcare's Indian business for $3.72 billion in 2010 while Ranbaxy founders sold a controlling stake in the company to Japan's Daiichi Sankyo Co for $4.2 billion in 2008.

Global drugmakers such as Pfizer, GlaxoSmithKline, Sanofi also have a significant presence in the country and are looking to expand their businesses there.

Abbott has the largest market share followed by India's Cipla and GlaxoSmithKline.

Source: http://in.reuters.com/article/2012/09/11/india-fdi-idINL3E8KB4E520120911

Foreign Investment In India | "Foreign Car Makers to Enter Pre-owned Car Business in India"

By: Xinhuas
Source: http://english.cri.cn
Category: Foreign Investment In India

Many foreign car manufacturers are entering into pre-owned car business in India as the used car segment is huge and lucrative with many middle class families who cannot afford new cars now prefer to buy second hand cars.

In a bid to shed its premium tag and shore up volumes, Czech car maker Skoda is working at entering the pre-owned car business in India by the end of the year.

The move comes on the back of increasing attempts by car companies to expand volumes in a sluggish market by initiating new customers into their brands through pre-owned vehicles and retaining older ones through loyalty programs.

Sudhir Rao, managing director, Skoda India, said, "We are working on putting in place a comprehensive growth strategy to penetrate deeper into the country with our range of products. We will not trigger discount wars to boost numbers but we are working on entering the pre-owned cars business to introduce more customers to our brand by the end of the year."

While the specifics of the used-car business are still being worked out, Skoda is ramping up efforts to expand overall reach by setting up 150 dealerships by 2014-15. The company has 102 outlets in India at present.

Though the Indian subsidiary at present contributes a little over three percent to Skoda's sales globally, Rao said the company was infusing 3 billion rupees (54.5 million U.S. dollars) to increase the local contents in its products and reduce cost of ownership to raise volumes "substantially" in the country and to achieve sales tally of 1.5 million units worldwide by 2018.

Automobile manufacturers are increasingly focusing on sales of pre-owned vehicles to expand volumes in a market where off-take of new vehicles have waned due to high interest rates, increased fuel costs, and uncertain economic conditions.

An automobile industry expert in India said the "pre-owned car business units not only provide dealers with opportunities to improve margin by selling used cars, they can also increase their sales of new vehicles through exchange programs."

For the quarter ended June 30, Maruti Suzuki expanded volumes by 18 percent to 60,467 units in sales made under exchange programs despite its sluggish performance in the domestic market.

"In urban areas where demand has fallen sharply, we are trying to push sales through our loyalty programs. Around 1.5 million customers service their vehicles every month, 10 percent of whom own vehicles which are more than 10 years old. We identify these consumers and offer them loyalty bonus to exchange their cars for new ones," said a senior executive at Maruti Suzuki.

Additionally, the company registers sales of pre-owned cars. The used car market in India stands at 2.7 million units but over 85 percent of it is currently controlled by players in the unorganized sector.

The convenience and warranty being offered by companies like Maruti Suzuki, Hyundai Motor India, Mahindra and Mahindra and Ford India are increasingly making consumers opt for purchase and sale of pre-owned vehicles through the organized route.

The Maruti Suzuki executive pointed out that around 30 percent of car buyers exchange old vehicles for new ones.

In the last financial year, Maruti Suzuki sold as many as 240, 000 pre-owned cars which is nearly a quarter of its overall sales of new vehicles. Hyundai Motor retailed pre-owned vehicles amounting to 15 to 16 percent of its sales in the domestic market through Hyundai Advantage outlets last year.

Source: http://english.cri.cn/6826/2012/09/10/3241s721601.htm

Foreign Investment In India | "Govt looking at riders for foreign investment in pharma"

By: NEW DELHI
Source: http://www.thehindubusinessline.com
Category: Foreign Investment In India

Foreign pharmaceutical companies looking to acquire Indian drugs businesses are likely to face tougher conditions as the Health Ministry is working on new rules to ensure the availability of medicines at affordable prices in the local market, a senior official said on Monday.

The Ministry has suggested that after acquisitions, companies should at least over the next five years keep manufacturing certain life-saving medicines in India at the highest level of production they have recorded in the previous three years, Arun K. Panda, Joint Secretary at the Ministry For Health and Family Welfare, told Dow Jones Newswires.

Also, acquired companies would have to maintain research and development spending for a similar period on drugs that are relevant to the Indian market, Panda said.

There has recently been a lot of confusion over India’s approach to foreign investment in the pharmaceuticals sector. The country is seen to be moving away from the liberal regime put in place in 2002 that allowed 100 per cent foreign investment without Government review.

CROSS-BORDER DEALS

In recent months, the Government has started reviewing all cross-border deals and is considering forcing companies that acquire Indian assets to meet certain conditions to satisfy health activists and others who fear giving greater control of the local market will allow foreign companies to increase the prices of generic drugs or push the sales of costlier branded products.

Some multinational companies operating here are unhappy with tough decisions in recent years by the patent office and Indian courts in rejecting drug patents recognised in many Western nations.

The Government decided to revisit its investment policy for the pharmaceuticals sector last November after a spate of foreign takeovers of Indian companies in recent years.

The significant deals were Japan-based Daiichi Sankyo Co.’s purchase of a majority stake in Ranbaxy Laboratories Ltd in 2008 and US-based Abbott Laboratories’ acquisition of the local generic-drugs business of Piramal Healthcare Ltd in 2010.

Keywords: Foreign pharmaceutical companies, acquisitions, medicine prices, life-saving medicines, foreign investments, multinational companies, patent rows,

Source: http://www.thehindubusinessline.com/industry-and-economy/economy/article3882391.ece?homepage=true&ref=wl_home

Investment In India | "Punjab most favoured for investment in India, says World Bank study"

By: PNS | CHANDIGARH
Source: http://www.dailypioneer.com
Category: Investment In India

A recent World Bank study has favoured Punjab as the “most preferred destination” for investors in the country. The study has, in fact, termed the State as “future growth engine that would propel the nation’s economic growth”.

“In a latest study of World Bank about the Investment environment in the country, Punjab has been declared as the most preferred destination for investors,” said Punjab Industries Minister Anil Joshi.

He said that the World Bank report was based on various parameters including record investment by the incumbent government on the infrastructure such as roads, air and rail connectivity and incentives announced by the Punjab Government.

He said that Punjab Government has set an investment target of Rs one lakh crore in the state and to meet this, he has already held series of meeting with big industrialists at New Delhi.

Besides, World Bank study specially talked about the Integrated Check post at Attari CP and Rs 213,00 crore project Guru Gobind Singh Refinery at Bathinda, that would change the face of Industry in the State.

In past, investors were facing shortage of electricity, which is going to become the strength of the state as in next one year all three Thermal Plants would become operational, Joshi claimed.

He said that the Integrated Check Post at the Wagah border would be a boon for trade in Punjab as it was a natural trade route to Central Asia for centuries.

Joshi said that keeping in view the interests of traders, Union Government should enhance the number of items to be exported via ICP from 137 to 6,000 as in Mumbai port.

“Due to the efforts of the SAD-BJP government, many world class industrial houses like Videocon has announced to invest in Punjab,” he said adding that to facilitate the investors, Government has sanctioned establishment of Land Bank, so that the land required for industry could be provided to investors in a hassle-free manner.

Source: http://www.dailypioneer.com/state-editions/chandigarh/93545-punjab-most-favoured-for-investment-in-india-says-world-bank-study.html

Business In India | "India's business schools get tough lesson in supply and demand"

By: Aditi Shah
Source: http://in.reuters.com
Category: Business In India

India's seemingly unstoppable economic rise, an aspiring middle class' desire to stand out in a competitive job market, and a lucrative opportunity for investors fuelled a bubble in business education that is now starting to deflate.

About 140 schools offering Master of Business Administration (MBA) courses are expected to close this year, as 35 percent of their places were vacant in 2011-12, up from 15-20 percent in 2006-07, a report by ratings agency Crisil found.

"The boom which was there has gone," said Anshul Sharma, chairman of Asma Institute of Management, which he started in 2004 in Pune, about 150 km (95 miles) from Mumbai.

"Those who entered this industry with a motive to make money are leaving because there is not much money left. Every college is working to sustain itself," said Sharma.

There was a near four-fold rise to more than 352,000 MBA course spots in the five years to March 2012.

But the allure of so-called B-schools outside the top tier is fading as the economy grows at its slowest in nine years, with the financial sector especially sluggish, and amid questions about the quality of some schools.

Only 29 percent of graduates from Indian business schools - excluding those from the top 20 schools - get a job straight after completing their course, compared with 41 percent in 2008.

Aditya Dighe took out a 330,000 rupee loan to fund his MBA from a school in India's financial hub of Mumbai. Four months and 18 job interviews after graduating, the 26-year-old is still looking for a job that will pay enough to cover his expenses and monthly loan instalments of 10,000 rupees.

"The B-schools have promoted their brand only on placements and by boasting about salary packages. The course is theoretical and you don't learn the skills corporates want," he said.

GRAPHIC: Growth of AICTE-approved B-schools slows link.reuters.com/myx32t

GRAPHIC: Poor placement record for MBA graduates link.reuters.com/cef99s

GRAPHIC: Average salary for MBA graduates lowest in India link.reuters.com/baz32t

BIG BUSINESS STRUGGLES

Private education is big business in India. KPMG pegs the industry at nearly $50 billion and projects it to reach $115 billion by 2018. But growth rates are not uniform across the primary, secondary and tertiary education sectors.

"A third of all management colleges are struggling," said Narayanan Ramaswamy, a partner at KPMG.

At the peak before the global financial crisis, new business schools were cropping up almost every day, some in remote towns where even quality secondary education is hard to come by.

There are two strands of MBA courses.

MBA degrees are offered by schools overseen by the All-India Council for Technical Education (AICTE), the regulatory body for higher education. These schools must be affiliated to a university, have a maximum of 120 students and fees are capped by state governments.

A second stream allows colleges to offer diplomas that are not accredited by AICTE. There are no standardised curriculums, class sizes are bigger and fees can be higher. An institution can offer both accredited and non-accredited MBA courses.

In a city such as Pune, something of an education hub, it costs about 40-50 million rupees over two years to set up a management school, which can be as basic as a modest building with classrooms, a small library and a computer room.

When demand was outrunning supply, students were willing to pay high fees for the autonomous courses, that tend to be more industry-relevant, in order to get a leg up in the job market.

"People who had some land and money saw a great investment opportunity in the demand-supply gap and there was a rush to open schools," said Dhiraj Mathur, executive director at PricewaterhouseCoopers.

"They were not thinking about the faculty, location, employability and brand name. They thought setting up a school would take care of the rest."

Now, some new institutions are discontinuing their autonomous courses despite often better quality education, because with no guarantee of a job, students are opting for cheaper, AICTE-approved courses.

SPOILING THE SYSTEM

Schools with little or no track record fill seats by paying existing students up to 40,000 rupees for referring other students, Asma's Sharma said, whereas some hire agents, paying them upwards of 50,000 rupees for every student they get.

Sharma cannot afford to pay hefty commissions and is struggling to fill the 120 seats at his institute. Last year he enrolled only 45 students, and needs about 80 to break even.

"Today, students do not ask what and how they will be taught. They only ask about placements and salary packages, and what discounts we offer on the fees," he added.

"This is spoiling the education system but if we don't try and accommodate them we will not be able to survive."

Elite institutes still attract students despite high fees as they have strong reputations, and their graduates are favoured by recruiters.

As a result, competition is fierce for the relatively few places in the state-run Indian Institute of Management (IIM) in Ahmedabad, and the Indian School of Business (ISB), started by two former McKinsey employees in Hyderabad in central India.

Fees at IIM in Ahmedabad are 1.55 million rupees for the two-year MBA programme. ISB, an autonomous college associated with international schools like Kellogg, Wharton and London Business School, charges 2.2 million rupees.

Online job portal MyHiringClub.com found the average starting salary for graduates of India's top B-schools was about$32,400, about 1.8 million rupees, more than four times the average of $7,550 for other MBA graduates.

Lavina Thadani, a 23-year-old MBA graduate from Pune, settled for a low-paying job in the capital markets team at a media house after a three-month search yielded little else.

"I expected more after spending so much on my MBA," said Thadani who took a 300,000-rupee loan to get her degree but earns only about 200,000 rupees a year. "If I had known earlier I would have never done my MBA," she said.

Source: http://in.reuters.com/article/2012/09/10/india-education-mba-business-schools-idINDEE88900W20120910?feedType=RSS&feedName=globalCoverage2

Foreign Investment In India | "India Poised to Compete For Chinese Foreign Investment"

By: 2point6billion
Source: http://atlanticsentinel.com
Category: Foreign Investment In India

China aside, the smart money in Asia right now is on India as the emergence of the nation as a destination for foreign investment becomes more understood.

India’s main problem, however, remains one of perception—it has a noisy, democratic media that loves to blow up scandals and bad news. By comparison, China pushes its troubles under the carpet through extensive media censorship. That has worked for China to a large degree and has served to underplay inherent financial and political problems in the country but that’s not to say they don’t exist.

In India, everything is aired publicly, creating a disparity of news information when the two are compared—China good, India dirty.

Perceptions aside, the reasons for India’s growing attractiveness as a China alternative are numerous. Firstly, as China has become wealthier, labor costs have increased dramatically—and this is effectively making China less competitive when talking about export driven manufacturing. That business is now leeching away to other emerging Asian nations, with India among the main recipients. That doesn’t mean China based manufacturers are leaving necessarily—it’s just that to financially justify establishing a manufacturing base in China today means that one should be looking at servicing the Chinese consumer market; and not all products are suitable for China.

China’s own development demographics have changed as well—twenty years ago, the average age of a Chinese worker was twenty-three. Now, that average age is roughly thirty-seven and that employee requires a far higher income than before. Interestingly, the average age of an Indian worker today is twenty-three—the same as China twenty years ago.

“We are seeing more interest in FDI into India than ever before,” comments Olaf Griese, partner at Dezan Shira & Associates in India. “Businesses have woken up to the fact that India is also a hot destination and, having established China holdings, many are now setting up operations in India as well. The two nations are complimentary investment destinations and now it is India’s turn.”

On top of this, the Asian trade dynamics are altering, with the Southeast Asian trade bloc ASEAN about to come into full tax free status in 2015. That is altering manufacturing investment patterns as businesses wishing to sell to Asia are now increasingly looking at doing so in ASEAN, using Singapore as a regional financial and services hub to access markets in Vietnam, Indonesia, Thailand, Malaysia and the Philippines. The faster growth potential lies in these countries as opposed to China—and India, with its DTA with ASEAN, permits duty free movement of over four thousand different product and goods categories with the entire region and more to follow as the DTA still has many more under negotiation.

At present, India’s ASEAN strengths lie in the exporting of telecommunications and electronics products—a major competitive area with China. Add to that logistics, education and financial services and it is clear that India is going to become a long term player in Asia in these key industries.

In terms of investing into India, many corporations are using Singapore as a regional hub. The city state is the de facto financial and services hub for ASEAN and, to some extent, is pushing subsidiary operations into India. That too echoes China, when twenty years ago Hong Kong was under British jurisdiction yet was still considered a gateway to China—a role it has since gone on to develop even further. Singapore does not levy taxes on profits realized externally from its borders and this promotes its use as a regional hub for Southeast Asia.

Also of interest in the China–India comparisons are the consumer values. While much has been made of the rise in Chinese consumer wealth, the India market also has a well established middle class consumer base of the same size—about 250 million. The differences between them lie in their spending behavior. China’s nouveaux riches tend to spend more on glitz and glamor while Indian money is older, more conservative in taste and more discretely spent.

This article by Dezan Shira & Associates, a specialist foreign direct investment practice, originally appeared at 2point6billion.com, September 7, 2012.

Source: http://atlanticsentinel.com/2012/09/india-poised-to-compete-for-chinese-foreign-investment/

Investment In India | "Investment to seal tighter Asian links"

By: DAVID CROWE AND DENNIS SHANAHAN
Source: http://www.theaustralian.com.au
Category: Investment In India

The Asian Century white paper will set out investment policies to tighten links with key neighbours including China, India and Indonesia as differences over foreign ownership divide the Coalition.

The plan will also call for an overhaul of school and university education to make Asian languages a core part of the curriculum, warning that the country has gone backwards on Asian literacy in recent decades.

The Prime Minister and Russian President Vladimir Putin, who hosted this year's Asia-Pacific Economic Community forum in Vladivostok, both urged deeper economic integration in the region and backed university educational exchanges at every level.

At the 2012 APEC meeting in Russia's far east, at the site of the new Far East Federation University, leaders agreed to lower tariffs on 54 environmentally friendly products and increase mobility among universities throughout the Asia-Pacific. In concluding the forum yesterday, Mr Putin said the Asia-Pacific was now the area for world growth and that Russia was deliberately "turning east" because of the economic woes of the traditional European trading partners. Mr Putin said he hoped there would be greater and more direct links between Asia and Europe through Russia's land transport and the shipping lanes.

"All APEC economies are 'future lookers' and we want shared goals in education and business," Mr Putin said.

Before leaving the APEC forum to be with her family in Adelaide after her father's death, Ms Gillard told the ABC's Australia Network she would not comment on what was in the white paper, but said: "I would make this point. We are already at record expenditure for scholarships for people from our region to come and study in Australia.

"That's great for us, those people-to-people links, those future leaders of nations in our region, actually getting an experience in Australia. Obviously, I want to encourage young Australians to get out and do the same," she said. "We're very pleased that Russia, in its leading of APEC this year, has put this squarely on the agenda.

"The easier it is, the better for Australian universities who are very export-oriented and want to take Australian education into the region."

The Asia Century paper is being drafted by a taskforce led by former Treasury secretary Ken Henry. It is intended to be a statement of government policy intent, making the cabinet deliberations crucial to its final form.

Other members of the taskforce include Australian National University emeritus professor of economics Peter Drysdale, Corrs Chambers Westgarth chief executive John Denton, Telstra chairwoman Catherine Livingstone and three top public servants from departments representing the Prime Minister, Treasurer and Minister for Foreign Affairs.

The paper is understood to be in its final stages but must be signed off by a cabinet committee including taskforce members. This could take until the end of the month, leading to the release of the policy document in October.

Mr Denton said Australia's acceptance of Japanese foreign investment provided a model for a new agreement with China that could support growth while easing fears about foreign ownership.

"One of the lessons we should learn is the benefit of being a stable liberal democracy with an open economy," Mr Denton told The Australian.

"The relationship with Japan is a model for the relationship we need to foster with China, India and Indonesia."

Mr Denton said the way the Australian economy was opened up to Japanese investment showed great political leadership given the legacy of World War II.

"Look at the level of leadership that was shown in developing that relationship," he said.

"Think about the challenge involved. The political leadership was very important.

"That's the sort of approach you need to have."

Mr Denton said the relationship with India needed a stronger focus after years of mixed results, partly because Australia did not have a clear idea of how it wanted the bilateral relationship to develop.

Mr Denton said the white paper would set out clear pathways for education including improving language skills at all levels of school as well as universities, where there was a "real opportunity" to develop more expertise.

Source: http://www.theaustralian.com.au/business/markets/investment-to-seal-tighter-asian-links/story-e6frg94o-1226468546317

Business In India | "Finland wants good business with India"

By: Arunim Bhuyan
Source: http://www.smetimes.in
Category: Business In India

Finland is determined to do business with India, especially in areas of clean energy technology, despite the problem of excessive bureaucratic procedures involved in pushing through projects, says the country's Foreign Trade Minister Alexander Stubb.

"I have heard some murmurs of excessive paper work (in pushing projects through) but we are determined to do business with India," Stubb told IANS here.

Asked about the prospects and challenges of doing business in India, he said though bilateral trade is increasing, it is important to have a free trade agreement (FTA) between the European Union and India in place.

"We feel that it is important. When it comes to FTA between EU and India, among the issues where negotiations are ongoing are, for example, services and the automotive industry."

Finnish exports to India totalled 625 million euros ($788.5 million) in 2011 while Indian exports to this Nordic nation stood at 670 million euros ($845.3 million).

Stubb said the EU had not always been fair in trade policies, but Finland seeks a dignified approach to this.

"The EU and the US have not always been practising fair trade. In my former position as foreign minister, I proposed a new approach to foreign policy, notably dignified foreign policy, and this could be applied to trade too," said Stubb.

The minister also stressed on engaging developing countries in adopting clean energy technology.

"The future of technology is environmentally clean energy. Despite higher costs of clean technology, we need to get the emerging economies into the loop," Stubb said.

Highlighting how Finnish companies are going more and more the clean technology way, he said: "Neste Oils, which was once known for traditional oils, today makes biofuels. Kemira, once a chemicals manufacturing major, is today majorly into water treatment technology."

Asked about the Eurozone crisis, Stubb said that instead of contrasting the current situation with the good days of the early 2000s, one should instead compare this with the crisis of the 1990s.

"Some (people) mistakenly attribute this crisis to the rise of new economic blocs like BRICS (Brazil-Russia-India-China-South Africa) and MIST (Mexico-Indonesia-South Korea-Turkey). But the fact of the matter is that this crisis has arisen out of public sector overspending and the banking crisis. We understand that it has had ripple effects across the global economy," Stubb told a group of visiting Indian journalists.

He referred to the four-pronged strategy to resolve the crisis. The EU has put in place aid mechanisms and rescue packages for Ireland, Portugal and Greece as well as agreed on recapitalisation on Spanish banks and tighter rules on public spending.

"Now we try to drive down Italian interest rates; and wait for new decisions from the ECB. In the mid-term perspective, we will be building a banking union; and in the long-term perspective we need to aim at growth."

Source: http://www.smetimes.in/smetimes/news/top-stories/2012/Sep/07/finland-wants-good-business-with-india.html

Foreign Investment In India | "Indian PM vows to attract more foreign investment"

By: BEN SHEPPARD
Source: http://india.nydailynews.com
Category: Foreign Investment In India

Indian Premier Manmohan Singh on Wednesday used his Independence Day speech to promise to improve conditions for foreign investment in the country after a sharp downturn in economic growth.
India recorded near double-digit expansion over much of the last decade but the economy grew by just 5.3 percent in the January-March quarter, a rate that threatens to stall its transformation since the early 1990s.
Singh said that the government would "leave no stone unturned to encourage investment", and vowed to increase spending on much-needed infrastructure projects such as roads, railways and the electricity network.
"To attract foreign capital, we will have to create confidence at the international level that there are no barriers to investment in India," Singh said, signalling that further liberalisation reforms were in the pipeline.
Foreign companies keen to tap into India's emerging consumer market have poured into the country, but have often struggled to thrive amid government policy U-turns, endemic corruption and red tape.
Foreign direct investment into India collapsed by 65 percent year-on-year in the April-June quarter, according to the Reserve Bank of India.
The ruling Congress party is already concerned about general elections due in 2014, and the prime minister has launched a campaign to revive its flagging fortunes since P. Chidambaram was named as finance minister two weeks ago.
Singh, delivering the annual Independence Day address at the Red Fort in Delhi, said that "a difficult phase" for the world economy had merged with India's domestic situation to hinder growth.
"We cannot do much about the conditions that prevail outside our country," he said. "But we must make every effort to resolve the problems inside our country so that our economic growth (is)... again speeded up."
He added that growth must be obtained while controlling inflation, which is likely to be stoked by this year's poor monsoon -- though the headline rate unexpectedly dropped to 6.87 percent in July from 7.25 percent in June.
Singh, 79, who is expected to step down at the end of his term, repeated his forecast that annual GDP growth would exceed last year's rate of 6.5 percent, a prediction dismissed by opposition leaders and many independent economists.
Ratings agency Moody's last week scaled down its growth outlook for Asia's third largest economy to 5.5 percent in the fiscal year ending March 2013.
The Congress-led government elected in 2009 has struggled to push legislation through parliament due to constant protests by opposition parties and even its coalition partners.
Singh blamed the lack of political consensus for the failure to create rapid economic growth and said that the problem was damaging stability in India.
"If we do not increase the pace of the country's economic growth (and) take steps to encourage new investment in the economy... then it most certainly affects our national security," he said.
Among moves that have spooked foreign firms was the announcement followed by the sudden withdrawal of reforms allowing retail giants such as Wal-Mart into India, as well as a retrospective tax bill for Vodafone.
The premier's speech, marking the end of British rule in 1947, also included a vow to provide electricity to all households within five years and proposals for a new law to end the "repulsive practice" of manual removal of human waste.
The main opposition Bharatiya Janata Party (BJP) dismissed the speech as lacklustre and uninspiring.
Police said no one was injured when four roadside bombs exploded in the northeastern state of Manipur, which has seen decades of separatist violence.

Source: http://india.nydailynews.com/newsarticle/cd1ece9aabf62cdde1f0658c0b86d77f/indian-pm-pledges-to-attract-more-foreign-investment

Investment In India | "India approves $371.5 mln FDI proposals"

By: NEW DELHI
Source: http://in.reuters.com
Category: Investment In India

India approved 11 foreign direct investment proposals worth 20.68 billion Indian rupees ($371.5 million) including 8.08-billion-rupee plans of Mauritius-based Cloverdell Investments, a government statement said on Thursday.

The proposals were approved by Finance Minister P. Chidambaram on the recommendations of Foreign Investment Promotion Board.

Since taking charge of the ministry last month, Chidambaram has directed officials to put FDI approvals on fast track as part of a drive to revive investor confidence after growth slowed to its slowest pace in nearly a decade. ($1 = 55.67 Indian rupees) (Reporting by Manoj Kumar; Editing by Sunil Nair)

Source: http://in.reuters.com/article/2012/09/06/india-economy-fdi-idIND8E8K300G20120906

Business In India | "To grow business in India, McDonald's is opening vegetarian restaurants"

By: Bloomberg News 
SOurce: http://www.nj.com
Category: Business In India

McDonald’s will swap its trademark burgers for potato sandwiches when it opens two vegetarian restaurants in India next year, the first such outlets globally for the world’s biggest restaurant chain.
The fast-food chain will open two new locations in northern Indian cities that are pilgrimage sites for Hindus and Sikhs, according to Rajesh Kumar Maini, a spokesman for the company’s north and east Indian operations. McDonald’s already keeps beef and pork products off the menu in India, where a majority of the population are Hindus and Muslims.
The attempt to draw religious Indians shows how McDonald’s Corp. is attempting to boost sales by catering to local tastes outside its home market.
The attempt to draw religious Indians shows how the Oak Brook, Illinois-based company is trying to boost sales by appealing to local tastes outside its home market and compete with other chains such as Yum! Brands’s KFC and Pizza Hut.
McDonald’s, which gets more than 60 percent of its revenue from international stores, said last month that it was exploring and evaluating opportunities in Vietnam, where it doesn’t have any stores.
The vegetarian restaurants will sell items such as the McAloo Tikki burger, a sandwich with a mashed-potato patty, and the Pizza McPuff, a vegetable and cheese pastry.
India, the world’s second most populous nation, is important for McDonald’s as it increases sales overseas. The country’s large population, growing urbanization and increasing number of people joining the workforce may help the fast-food industry expand, according to estimates by researcher RNCOS E-Services Pvt.
One of the vegetarian outlets will be in Amritsar, where the Golden Temple, a holy site for Sikhs, is located. The other will be in Katra in Jammu and Kashmir in the north, which houses one of the main pilgrimage sites for Hindu people, according to the spokesman. McDonald’s sells Chicken McNuggets and fish burgers in its regular Indian outlets although its traditional beef burgers aren’t available. The cow is sacred to religious Hindus, who don’t eat beef.
“The new restaurants in pilgrimage areas will be vegetarian-only because of the specific area and customer base,” Becca Hary, a McDonald’s spokeswoman, said in an e-mail. McDonald’s kitchens have always been divided into separate sections for cooking vegetarian and non-vegetarian items in India, she said.
Opening no-meat stores “speaks to McDonald’s efforts to cater to local tastes,” she said.
McDonald’s, which opened its first restaurant in India in 1996, operates as many as 271 stores there now through partnerships with two local Indian companies, Connaught Plaza Restaurants Pvt. for the north and east, and Hardcastle Restaurants Pvt. in the west and south.
McDonald’s isn’t alone in trying to capitalize on the market in India. Louisville, Kentucky-based Yum, which also owns Taco Bell, has about 479 stores in its India division, which includes Bangladesh, Mauritius, Nepal and Sri Lanka, and plans to open 100 stores there this year. Domino’s Pizza has about 500 stores in India and has said the nation can be its second-largest market in three to five years.

Source: http://www.nj.com/business/index.ssf/2012/09/to_grow_business_in_india_mcdo.html

Foreign Investment In India | "Foreign Investors Buy Net 3.03 Billion Rupees Of Indian Stocks"

By: Paresh Jatakia
Source: http://www.bloomberg.com
Category: Foreign Investment In India

Overseas investors bought a net 3.03 billion rupees ($54.2 million) of Indian stocks yesterday, raising their investment in the equities this year to 631.8 billion rupees, according to the nation’s market regulator.
Foreigners bought 16.3 billion rupees of shares and sold 13.3 billion rupees, the Securities & Exchange Board of India said on its website today. They purchased a net 106.1 billion rupees of stocks last month.
The benchmark BSE India Sensitive Index (SENSEX) has increased 12 percent this year, helped by the biggest overseas equity flows among 10 Asian markets tracked by Bloomberg. Flows surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led to the biggest annual slump of 52 percent.
Offshore funds bought a net 1.64 billion rupees of bonds yesterday, taking total inflow into debt this year to 248.8 billion rupees, the data show.
Foreigners have invested 5.076 trillion rupees in stocks and 1.456 trillion rupees in bonds since they were allowed into the country in 1993.
The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.

Source: http://www.bloomberg.com/news/2012-09-05/foreign-investors-buy-net-3-03-billion-rupees-of-indian-stocks.html

Investment In India | "Mercedes-Benz to scale up investment in India"

By: SPECIAL CORRESPONDENT
SOurce: http://www.thehindu.com
Category: Investment In India

German luxury car manufacturer Mercedes Benz will increase its investment to Rs.850 crore in the domestic operations by 2014 as it is preparing to start assemble more of its models here.

Mercedes-Benz India, the Indian subsidiary, has an assembly plant in Chakan near Pune, where it is investing more than Rs.600 crore to scale up operations, the company says in a statement.

CHAKAN PLANT

The Chakan plant started operations in 2009 and scaled up the initial investment of Rs.250 crore to over Rs.600 crore with the setting up of a paint shop. “The investment of Rs.850 crore will enable Mercedes-Benz India to be future-ready,’’ the statement says, quoting Mercedes-Benz India Managing Director & CEO Peter T. Honegg.

Source: http://www.thehindu.com/business/companies/article3862989.ece

Business In India | "Volkswagen to expand India business, may launch Utility Vehicles"

By:  KETAN THAKKAR,ET BUREAU 
Source: http://economictimes.indiatimes.com
Category: Business In India

MUMBAI: Volkswagen may consider launching a utility vehicle in India as the German car giant looks to expand its portfolio, President and MD Gerry Dorizas has said. "Different growth segments of multi-purpose vehicles or sports utility vehicles and small cars are the part of vision we have (for India)," Dorizas said on Tuesday. "We have to take small strides," he added.

He said Volkswagen will develop its India business further, but only after putting the fundamental structure in place.

Global rivals Renault and Maruti Suzuki have managed to generate sizeable volumes from their recently launched SUVs. The segment is also growing rapidly at a time when demand other type of vehicles is sluggish. Dorizas says the current focus is to build a strong foundation on the existing products, dealers, sales & after sales service.

Volkswagen India has been dabbling with the idea of bringing in the premium SUV 'Tiguan' those shares its underpinnings with the recently launched Audi Q3. The company has also globally showcased a couple of utility vehicles concept called "Volkswagen space up! Concept" and "Bulli Concept" which may spawn utility vehicles for Volkswagen to compete with Ford Ecosport, Renault Duster and the Maruti Ertiga in the future.

Volkswagen India, one of the late entrants in the fast growing passenger car markets in the world, initially attracted a good response to its premium hatchback Polo and sedan Vento, but could not sustain the momentum in 2012. After doubling sales in 2010 and 2011, VW India's numbers in the first half of 2012 declined 3.4 pc.

"I have total trust on the management and our board of directors, I think they have a listening head, but we are still in discussion, we are still creating plans. There are a lot of things, which are under development, I think there will be a time when we would be able to share that with you," Dorizas said. He acknowledged that margin pressure will continue to remain. "Pressure on the margins is an on going thing. It is all changing, we all have to be in touch with changes, we told our dealers, we are team, we have to go all the way and discuss with them in a difficult market condition and adapt ourselves to changes." To cut Polo, Vento prices

Volkswagen Tuesday said it will cut prices of the high-end variants of its Polo and Vento sedans and add a host of new features to boost sales. It will cut prices of the both diesel and petrol variants of Polo by up to Rs 40,000 and of the Vento by Rs 20,000. The Polo highline petrol will now come for Rs 584,400 as against Rs 624,409 (ex-showroom New Delhi). The Polo diesel variant price has been reduced to Rs 694,400 from Rs 736,407, ex-showroom Delhi. "The introduction of new features in Polo and Vento will further excite the customers as both the carlines will offer much more value now... ," said Arvind Saxena, managing director, Volkswagen Passenger Cars.

Source: http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/volkswagen-to-expand-india-business-may-launch-utility-vehicles/articleshow/16259443.cms

Foreign Investment In India | "Foreign Investors Sell Net 471 Million Rupees of Indian Stocks"

By: Paresh Jatakia
Source: http://www.businessweek.com
Category: Foreign Investment In India

Foreign investors sold a net 471 million rupees of Indian equities yesterday, reducing their investment in the nation’s stocks this year to 628.8 billion rupees ($12 billion), according to the market regulator.

Offshore funds bought 16.6 billion rupees of shares and sold 17.1 billion rupees, the Securities & Exchange Board of India said on its website today. They purchased a net 106.1 billion rupees of stocks last month.

The benchmark BSE India Sensitive Index (SENSEX) has increased 13 percent this year, helped by the biggest overseas equity flows among 10 Asian markets tracked by Bloomberg. Flows surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led the biggest annual slump of 52 percent.

Offshore funds bought a net 3.43 billion rupees of bonds yesterday, taking total inflow into debt this year to 247.2 billion rupees, the data show.

Foreigners have invested 5.073 trillion rupees in stocks and 1.455 trillion rupees in bonds since they were allowed into the country in 1993.

The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.

Source: http://www.businessweek.com/news/2012-09-04/foreign-investors-sell-net-471-million-rupees-of-indian-stocks

Investment In India | "MonaVie to invest 100 crore in India"

By: TNN
Source: http://timesofindia.indiatimes.com
Category: Investment In India

KOCHI: MonaVie, a US-based multi-level marketing company, is planning to invest Rs 100 crore in manufacturing nutritional energy drinks in India, said Raj Lingam, president for South Asia of the company.

Currently, Kerala is the biggest market for MonaVie, said Lingam. "Twenty per cent of our revenues is generated from the state," he revealed. The Indian arm of the company, headquartered in Chennai, has set up a network of 1.5 lakh distributors, 12 company owned offices and 150 distribution centres. "The company is fast expanding in the north, north-east and Tamil Nadu markets," Lingam said.

Sajiv Nair, a distributor, said apart from anti-oxidant concentrate drinks, the company is marketing soya protein supplement, oats meal and products for weight management. "With the Rs 100 crore investment, it will be able to manufacture all its products in India," he said.

Source: http://timesofindia.indiatimes.com/business/india-business/MonaVie-to-invest-100-crore-in-India/articleshow/16259277.cms

Investment In India | "India's QFI draws GCC investors in equities "

By: MENAFN - Arab News
Source: http://www.menafn.com
Category: Investment In India

(MENAFN - Arab News) Qualified Foreign Investor (QFI), an investment channel opened by the government of India in the beginning of this year, offers nationals from 45 countries, including the UAE and other GCC countries, to invest in Indian equities and debt instruments.

This move is widely believed to have the potential to attract billions of dollars into India, which is currently among the world's top three investment destinations.

This was announced yesterday at an international seminar that was held at Dubai World Trade Center.

Indian financial and equity market experts who spoke on the occasion said that conservative estimates show that investments into Indian equities, bonds and mutual funds by foreign nationals under QFI route could cross the $ 10 billion mark in two years.

"The UAE and India share extensive trade and commercial bonds. They are also each other's biggest trade partners. The UAE, being a regional trade and investment hub is an ideal location to promote this new initiative," said Sanjay Verma, consul general of India, while inaugurating the seminar, which had participants from over 14 nationalities. He also congratulated IBMC for launching the service.

Commenting on the rationale of holding the international seminar and the QFI regime, Hazza Mohammed Al-Dhaheri, chairman and MD, IBMC Group & JRG International, said Dubai, being the business hub of the region offered a vantage point to launch the service.

The event also marked awarding the first QFI account to Hazza Mohammed Al-Dhaheri by S. Rengarajan, CEO, IL&FS Securities Services Ltd.

"I am happy to be the first Emarati with a QFI account," Hazza Al-Dhaheri told Arab News.

"The new investment route provides direct access to the Indian equity and debt markets for foreign nationals, groups or associations, allowing a wider global investor base to partake the benefits of the Indian growth story," said Sajith Kumar P.K., CEO and director, IBMC Group & JRG International while addressing a press conference on the sidelines of the seminar.

"Foreign investments into Indian stocks and debt instruments were earlier limited to pension funds and FIIS (Foreign Institutional Investors) and the new regime opens up a path-breaking alternative to global investors." Kumar added.

He said QFI has the potential to match or even overtake the current volume of FII investment volumes into the Indian markets in the next two to three years. Overseas investments into Indian stock markets in 2012 has touched $ 12 billion so far including more than $ 1 billion in August this year alone.
QFI holds a lot of potential for Indian markets. There is keen global interest in the resilience of our economy.

Traditionally driven by FIIs and NRIs, foreign capital inflows have gained significant importance and impact local market sentiments. QFIs would broad base the capital flow and further deepen liquidity for Indian markets, said Ashishkumar Chauhan, CEO Bombay Stock Exchange (BSE).

Speaking at the seminar, P.S. Reddy, CEO & MD, Central Depository Services (India) Ltd., said: "India's growth story is to continue in the next few decades. It needs huge investment support both from internal and external sources. QFI route is opened up for those who want to have the benefit of India's growth. There is no better region than Gulf region, which is more inclined toward India as an investment destination."

Rangarajan of ILFS said they are glad to be offering QDP services to QFIs in the Middle East through the IBMC Group. "We are sure that the professional competence and service-oriented approach of ISSL & other institutions involved would definitely make investments in India through QFI route a pleasant experience," he added.

Source: http://www.menafn.com/menafn/1093552641/Indias-QFI-draws-GCC-investors-equities

Foreign Investment In India | "Indian equities eyes big GCC investment "

By: TradeArabia
Source: http://www.tradearabia.com
Category: Foreign Investment In India

The investments into Indian equities, bonds and mutual funds by foreign nationals, mainly those from the GCC, through the new qualified foreign investor (QFI) route could cross the $10 billion mark in the next two years, said experts.

QFI, the new investment channel opened up by the Indian government in the beginning of this year allows foreign nationals from 45 countries from across the world, including the UAE, to invest in Indian equities and debt instruments.

The move is widely believed to have the potential to attract billions of dollars into India, which is currently among the world’s top three investment destinations.

“The new investment route provides direct access to the Indian equity and debt markets for foreign nationals, groups or associations, allowing a wider global investor base to partake the benefits of the Indian growth story,” remarked Sajith Kumar PK, the CEO & director of IBMC Group & JRG International.

According to him, the foreign investments into Indian stocks and debt instruments were earlier limited to pension funds and FIIS (Foreign Institutional Investors) only.

But now with the QFI, the markets have the potential to match or even overtake the current volume of FII investment volumes into the Indian markets in the next two to three years.

Overseas investments into Indian stock markets in 2012 has touched $12 billion so far including more than $1 billion in August this year alone, he added.

Launching the new QFI service, Sanjay Verma, Consul General of India, pointed out that the UAE and India shared extensive trade and commercial bonds and were also each other's biggest trade partners.

"The UAE, being a regional trade and investment hub, is an ideal location to promote this new initiative," said Verma during a first-of-its-kind international seminar held at the Dubai World Trade Centre which was attended by an audience of over 15 nationalities.

The event also marked the awarding of the first QFI account to Hazza Mohammed Al Dhaheri, the chairman and managing director of IBMC Group & JRG International, by S Rengarajan, CEO, IL&FS Securities Services.

Commenting on the rationale of holding the international seminar and the QFI regime, Al Dhaheri said, Dubai, being the business hub of the region offered a vantage point to launch the service.

Bombay Stock Exchange CEO Ashishkumar Chauhan said the new QFI holds a lot of potential for Indian markets.

"There is keen global interest in the resilience of our economy. Traditionally driven by FIIs and NRIs, foreign capital inflows have gained significant importance and impact local market sentiments. QFIs would broad-base the capital flow and further deepen liquidity for Indian markets," he explained.

PS Reddy, the CEO  & MD of Central Depository Services (India) said: "India’s growth story is to continue for next few decades. But it needs huge investment support both from internal and external sources."

"The new QFI route is opened up for those who want to have the benefit of India’s growth. There is no better region than Gulf region which is more inclined towards India as an investment destination," he added.-TradeArabia News Service

 Source: http://www.tradearabia.com/news/CM_222571.html

Business In India | "Healthy growth in food business"

By: Atul Sethi, TNN
Source: http://timesofindia.indiatimes.com
Category: Business In India

In foodie terms, it could best be described as a melting pot. The second Indian Restaurant Congress held in New Delhi last week had venture capitalists, marketing gurus, social media specialists, chefs and restaurateurs rubbing shoulders with each other — all with food on their mind. The business of food, that is. What was served to them would have perhaps whetted their appetite for more. According to a report released at the Congress, the Indian food services industry is worth nearly Rs 75,000 crore now and is growing at a healthy compounded annual growth rate of 17%. It is likely to reach Rs 1,37,000 crore by 2015.

For many years, the food business has been seen as a tempting and lucrative opportunity — reflected in the fact that opening a restaurant tops the wish-list of a number of people. But what would make the next few years exciting for the sector is the way the market is rapidly getting organized. Gaurav Marya, president of Franchise India that prepared the report, says that even though 70% of the market is currently dominated by unorganized players, the organized segment has witnessed double-digit growth across formats, especially quick service restaurants driven by international chains, and causal and fine dining outlets dominated by Indian and private equity majors. "In the future, the organized market is expected to grow even faster — at around 20 to 25% per annum," he says.

The growth is accentuated by factors that have been in existence in India since the past few years — namely rise in disposable incomes and families becoming progressively nuclear. This captive audience has led to many investors drooling over the great Indian restaurant bazaar. "With the growing popularity of the food and beverage businesses in India , the investment community has made significant investments here. Last year, these businesses received $ 256mn of funding overall, while this year has already seen $ 43mn being invested," says Sandeep Kohli, who, as the former India head of Yum Restaurants , brought brands like KFC and Pizza Hut to the country.

The proliferation of more outlets, especially across popular categories like quick service or fast food, casual, fine dining as well as food courts may mean more people heading out of home to grab a bite. But it also means the industry has to pull up its socks to meet higher customer expectations . "With a smarter consumer who has multiple options, quality control has to be high and sustainable because consumer loyalty is no longer a given in a cluttered market place," says Kohli.

With increased competition, meeting customer expectations is going to be a challenge, especially for restaurants which are looking at ramping up their operations to reach a wider customer base. "The key area for a restaurant chain is to ensure consistency in service and food standards," says Kabir Advani, managing director of Berco's that serves Chinese and Thai, and has 15 outlets spread across the National Capital Region.

"A person visiting our restaurant in Connaught Place from his office during lunch may visit our Gurgaon outlet for dinner with his family. Naturally, he will expect similar quality. Our job is to ensure we match his expectations wherever he goes." But in order to do that, a good team with an efficient manager and a skilled chef is essential. As the sector expands, retaining talent — a key attribute for the success of a restaurant — is going to be a major headache for restaurateurs. Industry estimates put the requirement of trained manpower in the business at around 30 lakh within the next few years, a number which will grow further as demand increases. Pankaj Chaddah, cofounder of restaurant review site Zomato, says that the industry urgently needs to invest in training and making jobs more lucrative. "There is very little loyalty towards any employer from the staff and they shift for small raises. Even students from hotel management institutes are opting for jobs in other industries related to the service sector ."

Celebrity chef Sanjeev Kapoor, who also runs a number of successful multi-brand restaurants, says that the only way to counter this issue is to shift the focus from "customers first" to "employees first." "If your employees are happy, your customers would be happy," he says. "Most of the new entrants to the business are penny wise pound foolish , where they would invest lakhs of rupees to bring in imported lights for their outlet, but would be reluctant to pay Rs 50,000 a month to an effective manager."

Poor employee retention has led to many restaurants shutting shop quickly. But another bottleneck for the industry is the high value of real estate, especially rentals in malls where footfalls might not justify cost of operations. Restaurateurs are working around this problem by opting for revenue-sharing arrangements with landlords. "Partnering with real estate owners is the only viable business model for the future, otherwise high land cost can easily bleed a restaurant," says Rajeev Panjwani , vice-president of the National Restaurant Association of India.

Over-expectation is yet another stumbling block. Kapoor says that most people don't realize that they are getting into a 365-day-a-year job with no holidays.

"Most of the growth is being driven by new entrants who are cash-rich but glamour struck," he says. "They are not aware of the hard side of the business and eventually phase out because of excessive investments in their projects and over estimated sales."

But despite bottlenecks and the inherent risks, it's an exciting time to be in the food business. Chennai-based Mohammed Ali, who runs an online community of people passionate about food, compares it to a marriage. "There are various phases to it — some sweet, some bittersweet . At the end, what counts is passion and, of course, good sense."
A recipe that those eyeing the restaurant pie can take note of. Look out for the burns, though.

Source: http://timesofindia.indiatimes.com/india/Healthy-growth-in-food-business/articleshow/16170428.cms

Foreign Investment In India | "Reserve Bank of India moves to reassure foreign investment"

By: The Information Daily
Source: http://www.egovmonitor.com
Category: Foreign Investment In India

India needs to show it has a stable taxation and investment regime in order to attract foreign direct investment says D. Subbarao, Governor of the Reserve Bank of India 

In a speech to the Asia Society earlier in the week The Governor of the Reserve Bank of India (RBI) waded into the current debate on retroactive taxation provisions, which the Indian Finance Ministry has now said would be deferred.

The Central Government in its 2012/13 budget introduced a retroactive taxation provision following the government’s defeat in the Supreme Court that threw out the tax demand on the Essar-Vodafone deal.

In addition, the 2012/13 Finance Bill also introduced provisions in which investors would have to demonstrate proactively that they did not need to pay additional taxation rather than relying on the IRS to identify the taxation required

These policies have had an adverse impact on India’s foreign direct investment.  The RBI Governor in his speech and the subsequent question and answer session tried to allay the fears of foreign investors.

D. Subbarao claimed that India still has an investor friendly environment with the central and state governments anxious to attract investment. However, he acknowledged that India needs to demonstrate it has consistent policies which are investor friendly.

"We need to streamline our foreign investment policy and procedures, improve infrastructure, improve our governance," he said.  "Potential foreign investors have to have confidence that India has a stable, predictable, transparent capital sector regime".

Source: http://www.egovmonitor.com/node/53694

Investment In India | "India needs to increase investment in oil, gas fields abroad"

By: IST
Source: http://news.oneindia.in
Category: Investment In India

New Delhi, Sept 1: With energy security intrinsically linked to economic growth, there was a need for increased investments in oil and gas fields abroad by both private and public sectors, a senior External Affairs Ministry official said on Aug 31.
Sanjay Sinha, Secretary (East) in MEA, said, India require uninterrupted energy supply at affordable prices and there was a need for developing renewable and unconventional sources of energy to increase energy efficiency.
He was speaking after releasing the book 'Energy Security and Economic Development in India: A Holistic Approach' authored by Bala Bhaskar, posted in the Indian Embassy in Washington.
"India requires uninterrupted energy supply at affordable prices and only energy security can ensure it. India's economic progress will be dependent on energy security," Sinha said.
He emphasised the need for reducing the widening demand-supply gap and batted for increased investments in oil and gas fields abroad by both the private and the public sector.
"We also need to develop renewable and unconventional sources of energy to increase energy efficiency. Safety of energy transport routes should also be ensured," he said.
Introducing his book, Bhaskar said, "The geo-political situation today makes it imperative that India ensure energy security keeping in mind the present and future challenges."
In his book, Bhaskar said that he has made an attempt to undertake a comprehensive study of India's energy reserves apart from focusing on the link between energy and economic growth.
Providing policy suggestions to improve energy efficiency and conservation, the book, Bhaskar said, also elucidates the geopolitical dynamics and underpins the role of energy diplomacy in achieving energy security.
VS Senthil, Principal Secretary in Kerala government, said, "If there is any country that is expected to maintain an average six per cent growth for the next 30 years, it is India."
"For increasing and sustaining this growth rate, we need to have a competitive edge by securing our energy basket and welcoming private investment in the sector," he said.

Source: http://news.oneindia.in/2012/09/01/indianeeds-to-increase-investment-in-oil-gas-fieldsabroad-1063386.html