Many, beside the Prime Minister of the country, have started talking of GDP growth in two-digit growth. Here are some developments that make you feel proud. Some tells us the amount of opportunities available that our entrepreneurs can cash on. Some other gives the way India can solve some of its perennial problems. In one case, two Indian companies are competing to acquire a company abroad for global presence. And the growth of one sector tells the story of Indians getting more mobile and affluent even in rural India.
TCS to design Boeing interiors: Software major Tata Consultancy Services (TCS) has bagged an interior design contract from US airframe manufacturer Boeing Company and will work closely with its customer to design the interiors of new aircraft. Separately, the Tata group company is also setting up an “airline innovation laboratory” in Chennai to showcase mock-up interiors of aircraft. The laboratory will enable customers to test software used by the airline industry. Under the interior designing contract, TCS will use computer-aided design and manufacturing to visually create the interiors of an aircraft for a prospective customer. Is it not some high end highly technical job that enhances the knowledge index of the country? Many more small and big companies must develop capability and seek for this type of contracts that use the domain knowledge of professional engineering graduates.
Opportunity for auto part sector: BEIJING, OCT 26: Ford Motor Co, reeling from its biggest loss in 14 years will almost double its purchasing of China-made parts this year to cut production costs. Ford will buy between $2.5 billion and $3 billion in auto parts in China, said William Ford Jr, chairman of the Dearborn, Michigan-based carmaker. That compares with $1.6 billion to $1.7 billion bought last year from China. (Perhaps the whole Indian auto parts sector exported this much). Daimler Chrysler AG, the world’s fifth-largest carmaker will increase purchase parts in China used for local assembly by eight-fold. It will buy more than $840 million in parts and components in 2008 compared with $100 million this year. This is big opportunity for the Indian auto component sector. What is that it can’t grow 100% instead of 30-40% per annum?
An Effort to get over power problem: NEW DELHI, OCT 26: The country will soon have power plants set up exclusively for power trading. In a move that will create over 12,000 mw of capacity that can be traded by private developers, the government has earmarked a 2.4-billion-tonne coal reserve for merchant power plants. Power generation major NTPC may acquire plant for equipment manufacturing. NTPC has forayed into equipment manufacturing, and is contemplating acquiring the plant of another central PSU to commence operations.
In infrastructure, the power sector is one without which India can’t get anywhere. India is to move on fast track. BHEL can’t meet the requirement from the different power projects that are being contemplated. Many more company must join the manufacturing fray of power plant equipment. Huge manufacturing facilities in HMT, HEC, Bharat Pumps and Compressors, and many other public and private companies are lying unutilized.
8million two-wheelers in demand: NEW DELHI, OCT 26: With the domestic two-wheeler demand set to top 8 million units this fiscal and 10 million by 2010, giants Hero Honda and Bajaj Auto are engaged in a wild race to expand capacity. This is one sector where India has been highly competitive. Even the Japanese now respect Indian manufacturers. Hero Honda is example of that. And then think of a country reputed for its poverty consuming 8 million 2-wheelers. It is racing to come ahead.
NMCC puts Mission SEZs on track: NEW DELHI, OCT 26: The National Manufacturing Competitiveness Council (NMCC) expects the special economic zones (SEZs) to be utilised to promote manufacturing and to help in achieving the 14% industrial growth target. “SEZs should be used as instruments to accelerate growth in the manufacturing sector,” NMCC chairman V Krishnamurthy said here during an interaction with the media. The authorities must ensure there is no relocation of existing machinery or industry into SEZs and that fresh investment helping the manufacturing sector, be it as machinery or money, comes to the zones. Unfortunately, till date it appeared as if all SEZs would be mainly real estates business. The whole purpose would be defeated. As of now about 60% of them are for IT sector that does not need basically SEZs.
Two Indian companies Competing in Acquisition: Ashok Leyland and Rico Auto may see increased action on expectation that Doktas may decide the potential buyer in the next few days. These two firms have bid for acquiring Doktas, the automobile castings company, a part of the $18.7-billion Turkish conglomerate Koc. Ashok Leyland is said to have bid for Doktas at $170 million to $185 million, whereas Rico is said to have put in bids at $165 million. Whosoever wins, it will be a win for Indian manufacturing sector that tries to expand on globally.