Booming and Bubbling India- XVIII

The politicians have been busy obstructing Indo-US Nuclear Deal and Sethusamudram Canal Project. Mayawati and Uma Bharati are creating problems for Mukesh Ambani’s Reliance Fresh. However, India’s economy grows faster than ever; and its newly confident companies are showing their global ambition.

India’s moment is evident in the latest Business Week ranking of Asia’s top 50 companies. There are a dozen Indian outfits in all, ranging from automakers to a mortgage lender to pharmaceutical producers. This diversity is a surprising reversal from just a few years ago, when the entire world knew about corporate India was its software shops. This year, there’s just one tech player on the list, Tata Consultancy Services Ltd. (No. 23). “India is no longer a one-trick pony,” says Subir Gokarn, the chief Asia-Pacific economist for ratings agency Standard & Poor’s.

Here are some stories of the endeavours of the entrepreneuring India from the media.

Automakers racing to crack India’s hot market: FRANKFURT, Germany – Global automakers on the hunt for new and lucrative markets are jostling for a place in India, where the car market is growing at an average of 20 percent a year, outpacing even China.

India leads BRIC’s acquisition spree: In India, a total of 32 outbound deals were recorded in the first half of 2007, “an impressive figure which puts the country well on target to beat the 50 deals which took place during the whole of 2006,” according to the KPMG report. China still has some long way to go to catch up with India – which was easily the most acquisitive of the emerging nations, according to the report.

India’s CMIE raises 2007/08 GDP forecast to 9.1%: India’s Centre for Monitoring Indian Economy (CMIE) revised its estimate of India’s GDP growth to 9.1% in the fiscal year 2007/08, up from its earlier 9%, citing a robust growth in services and industry. The independent think tank expects industry to grow 9.5%, the services sector to rise 10.7%, and its farm output growth estimate to 3.9%, from 3.1% earlier, in the fiscal year ending March 2008.

Indian pharma market to touch $20 bn by 2015: McKinsey: India’s present pharmaceutical market that was estimated at $6.3 billion in 2005, is expected to touch $20 billion by 2015, with an compounded annual growth rate of 12.3 per cent.

BPRL-Videocon combine buys oil blocks in Brazil: A consortium of Bharat PetroResources (BPRL), a wholly-owned subsidiary of Bharat Petroleum Corporation (BPCL), and Videocon Industries, have jointly purchased Encana Brasil Petroleo Limitada (EBPL), a subsidiary of Encana Corporation, Canada for about $165 million, to explore oil blocks in Brazil.

Pharma firms plan R&D hub in Sweden: Indian drug makers Shasun Chemicals and Drugs Ltd and Wockhardt Ltd are looking to set up research and development hubs in Sweden for ‘bio-similars’ or off-patent versions of biotechnology drugs, in a bid to jump-start their global operations in this segment.

13 Indian firms in WEF Global Growth Companies: Thirteen fast-growing Indian firms have joined as founding members of the 125-strong Community of Global Growth Companies, a new initiative of the World Economic Forum (WEF).

KPO sector to be $11.2b by ’10-11: “The KPO sector in India will be worth $11.2 billion by 2010-11 and will employ approximately 255,000 professionals.” While in 2000-01 there were nearly 9,000 billable KPO professionals who generated $260 million as revenues, by 2006-07, their numbers had gone up to 75,400 employees and revenues of $3.05 billion.

India to pass Brazil as No.1 sugar producer: India is expected to overtake Brazil as the world’s top sugar producer in 2007/08, according to the International Sugar Organization. The London-based ISO forecast in a monthly report Indian sugar output in 2007/08 (October/September) at an all-time high of 33.15 million tonnes, up 8% year-on-year.

Reliance buys Malaysian polyester firm: Reliance Industries Ltd (RIL) has acquired Hualon Corporation (M) Sdn Bhd of Malaysia, the world’s largest integrated polyester manufacturer. The acquisition will help RIL consolidate its position as the world’s largest polyester manufacturer with a capacity of 2.5 million tonnes, 25 per cent more than its current capacity.

Rs 5 lakh crore to bolster steel sector: The Indian steel industry is poised to witness an investment of more than Rs 5 lakh crore, which is over six times the total money ploughed into the sector since independence to create a production capacity of over 240 million tonnes, nearly five times of what the country has now. According to a steel ministry document on the investment scenario in the country, 193 memoranda of understanding (MoUs) have been signed between investors and state governments as on July 1, to create an additional capacity of 242.9 million tonnes at an investment of Rs 5,14,038 crore. Posco project is on course now and the clouds of uncertainty that loomed large over the Rs 50,000 crore project have drifted away.

NHAI to invest Rs 50,000 crore: The National Highway Authority of India would invest Rs 50,000 crore in the North-East region in the 11th Five Year Plan for increased connectivity with all state capitals.

India ranks 2nd in IPO, 4th in M&As: India ranks second in capital market inflows and fourth in merger and acquisition deals in Asia Pacific (including Japan), as deals worth $65.033 billion were reported in the first eight months of calendar 2007. The data compiled by Thomson Financial revealed that 121 Indian firms mobilised $23.96 billion, while there were 697 M&A deals worth $41.069 billion.

M&M to drive in 1st India-made automatic gearbox: Mahindra & Mahindra (M&M) is all set to join the league of Honda, Toyota, Ford and General Motors by offering automatic transmission in its vehicles. M&M will be the first Indian company to develop an indigenous automatic transmission, which will be initially strapped on its Scorpio SUV.

India can become an MRO hub: India could soon emerge the civil aviation maintenance, repair and operations (MRO) hub for Asia-Pacific.

KPO sector to be $11.2b by ’10-11: India is already the world leader in the Knowledge Process Outsourcing or KPO. Studies by Evalueserve show while the industry is expected to generate $16.7 billion revenues by 2010-11 – an annual growth of 39% in the next four years, – around 350,000 professionals will be employed in this sector. ”The KPO sector in India will be worth $11.2 billion by 2010-11 and will employ approximately 255,000 professionals.”-Source: Career Opportunities in India’s Knowledge Process Outsourcing (KPO) Sector.

Wipro opens new global development centre in Mexico: Wipro Technologies announced the opening of the company’s first development centre in Monterrey, Mexico, where it aims to reach a headcount of 100 in a year’s time. The Aditya Birla Group plans to invest $200 million in Mexico’s carbon black industry over the next five to seven years to increase the capacity of the Mexican business from around 60,000 tons to a quarter of a million tons,

Best paymasters in IT: According to the study, the average salary hike received by software professionals in 2007 was 18.7% compared with 18.3% in 2006; and the average salary of people in the IT industry, across all management levels barring the top management has grown 11% to Rs6.2 lakh per annum.

Indian IT professionals in US returning to homeland: With India becoming a favoured destination of several multi-national companies, thousands of Indian IT professionals in the United States are returning to their homeland with good pay packets, according to a survey, conducted by Indus Entrepreneurs, an association of Indian IT professionals settled in the US. “Around 60,000 professionals have returned to India in recent years.”

Tech firm in global top list: iViz, a network security firm, with its origin in IIT Kharagpur, has made it to the global league of network security companies. iViz is the only Indian company that has made it to the semi-finals of the Global Security Challenge competition.

Software exports up 32% in FY07 at $31.3 billion: India’s software and services export is estimated to have grown at a robust 32% to $31.3 billion (Rs1.41 lakh crore) for 2006-07, as per the official figures of Department of Information Technology.During 2006-07, electronics and IT exports are estimated to be Rs1,53,300 crore, compared to Rs1,13,725 crore in FY05 -06, a growth of about 35%.

Wipro Infotech launches supercomputers in India: Wipro Infotech, the India, Middle East and Asia Pacific IT business unit of Wipro Ltd, on 13 September announced the launch of Wipro Supernova — a range of supercomputers and superstorage in India. Supernova includes a complete range of supercomputers with an entry level configuration delivering one trillion mathematical calculations per second going up to hundred thousand trillions of calculations per second and superstorage scaling to multiple hundred petabytes.

NTPC plugs on to LED lamps manufacture: NTPC Ltd plans to get into manufacturing Light Emitting Diode (LED) lamps, widely considered the future of lighting technology.

Rice that can beat heat: Indian molecular biologist Shital Dixit at the Wageningen University in the Netherlands and her colleagues in Bangalore and five other countries have developed the plant that uses water far more efficiently than existing rice crops. The new rice plant appears to grow well in severe drought-like conditions.

Indian doctor develops enzyme that can destroy HIV: Dr. Indrani Sarkar and a team of scientists have developed an enzyme called Tre, a custom enzyme capable of detecting, recognising and destroying HIV, much like a pair of molecular scissors.

More rural mobiles than fixed-line phones in India: Rural mobile phone connections stood at 39.46 million up to June 2007. With a total subscriber base of 185 million that month, rural subscribers formed a formidable block of 21.31 per cent, or over one-fifth of the total mobile user base in India.

7 Indian firms among top 250 global energy companies: As many as seven Indian companies figure in the list of the world’s 250 top performing energy firms, with Reliance Industries, ONGC and NTPC grabbing the top Asian ranks. In the annual rankings of Platts Top 250 Global Energy, ONGC and Reliance Industries have made into the top 50 with rankings of 23 and 39 respectively. ONGC has also been named as the third best performing energy company in Asia.

Narayana Murthy, Bill Gates bag Indian & American Achiever Awards: Infosys chairperson NR Narayana Murthy, Microsoft chief Bill Gates, music composer AR Rahman, Hollywood actor Richard Gere and the late Dhirubhai Ambani have won the Indian & American Achiever Awards.

India’s forex reserves rises to $230.377 bln: India’s foreign exchange reserves rose to a record $230.377 billion on September 7 from $228.847 billion a week earlier.

Inflation falls to 17-month low: Inflation fell to a 17-month low of 3.52 per cent for the week ended September 1 due to cheaper minerals, fuels and some manufactured products, giving the government positive ammunition to woe investors to revive sluggish industrial production.

India braces for wave of more equal auto parts JVs: JD Power and Associates estimates India will buy 2 million cars annually by 2012, and export another 1 million, making the country a sought after destination for global auto part makers. Besides Indian firms that earlier made nuts, bolts and routine casts, leaning on the west for design, are now one of the lowest cost manufacturers, making them attractive partners.

Ganesh graces Paris: On September 2, Paris was blessed with another year of good luck from Lord Ganesh at the Fete de Ganesh. Well over 10,000 people joined in the procession through the streets of Paris to worship the Hindu god. The ‘exotique’ festival highlighted the widespread interest in Indian spirituality among Europeans, inspired to learn about and experience the rich diversity of religions celebrated in India.

Innovation guru, Robert Tucker who has worked with a wide range of companies which include IBM India, Satyam Computer Systems Ltd, Nokia Oyj, American Express among others. He is also the author of ‘Managing the future’: 10 Driving forces of changes for the new century’, and ‘Driving Growth through Innovation’. He talked of changing India:

“I was here in 2003, and Tata (Tata Group) was a $12billion company, somewhat sleepy. Today Tata is generating $63billion in sales and revenue. They have restructured and embraced innovation and global markets.”

And so say many including the so-called Diaspora who visits India after a gap and sees the bubbling India all around in malls, multiplexes and on expressways.

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Politicians Win, When Country Looses

The Supreme Court has suspended the work on the Sethusamudram Canal Project for three months. As reported, the project work was going on in full swing since last one year, and almost 25% of the work is done. The dredging cost per day is about Rs 1.20 core with the five dredgers working for Sethusamudram Corporation Ltd. Five more were to be put in for dredging soon. And what the completion as planned would have meant? 3,055 vessels would have used the shorter route through the canal every year beginning 2008. The route would have saved 36 hours and 460 km for every vessel.

And what the government has done? The government has withdrawn the ASI affidavit, and suspended two erring ASI officials. Ram as the King would not have liked this anti-country, anti-people decision in his Ramrajya.

And what is the news from the BJP side? BJP has proclaimed its win. The grand old man Advani has secured his comeback. He is asking for the head of the Prime Minister and archrival Sonia Gandhi, though none is going to oblige him. BJP has got an issue to keep itself busy. The same BJP when in government got the feasibility study ordered in 2001 for a proposal conceived as early as 1860.

And why is Sonia’s Congress doing all this. Is it part of secularism or development politics? With her action on the affidavit, Sonia can now face the Hindu electorate and Modi boldly. Law Minister has affirmed the historicity of Ram in his attempt at damage control. The country can’t accept anything better from a sycophant. The culture minister, another Sonia’s friend has offered to resign (if Manmohan and Sonia ask her). She agreed to have suggested three changes to the ASI affidavit though one was omitted. She put her finger towards assistant solicitor general as solely responsible for the affidavit that created the stir. She has ordered an enquiry into the affidavit issue and sought a reply from the ASI chief. What more can she do to prove her innocence? As reported, Jairam Ramesh’s remarks in Kolkota that he would have owned up moral responsibility and quit if he had been in the place of the Culture Minister created a controversy in the ruling party. Is it not to divert the attention from the real issue? None talked of the loss to the national exchequer because of the suspension of the work.

It is unfortunate for the country. The politicians exploit and win over the sentiments of the poorly informed people of the country. Even in this 21st century, instead of telling the truth to them, they collect them for protest rallies and agitations for a nonexistent issue that can win their votes. They are the same people who hold up the work on expressways and other infrastructure projects for a temple and a grave turned overnight as a ‘mazar’ that requires to be dismantled for a cost effective alignment.

How does it matter even if the structure for the dredging is Ram built Setu and not a natural structure as so-called experts claim? What will be lost if the Project get through? After all the whole of the length will not be dug. The country can always preserve the rest. The Project can preserve the mythology better using a suitable nomenclature such as Ram Setu Canal for the posterity. Why can’t some grand architectural features built in the project that can make it famous world over?

I get really hurt, when I find the economy trying to boom getting slowed by such actions. One day the politicians hold up the Indo-US Nuclear Deal, the other day it is the suspension of a project such as Sethusamudaram. Everything gets referred to Supreme Court that takes its own time to give decision that again may not be universally accepted solving the problem.

And still we expect that India became a superpower soon and get heard on global forum.

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Ram Setu, Sethusamudram, and Indian Politicians

Indians had been very poor in preserving history. Forget Valmiki, the Aadikavi! There is even controversy over the birth place of Tulsidas, whose Ramcharitmanas happens to be the most popular and respected religious book (by number) in India. The country and its Hindus have not done anything significant to save the places related to him. It is painful to hear and read how every single development project is either delayed or sacrificed because of political or religious reasons.

According to TV channels, from Jammu to Kerala lakhs of VHP workers, joined by Bajrang Dal, RSS, BJP and ABVP activists, blocked road and rail traffic in protest against a project that appears to be one of national importance to an engineer like me and others and inconvenienced the working class. In Indore, the commercial capital of Madhya Pradesh, the protest took a communal turn.

It all happened because an affidavit was not correctly worded: ”Valmiki Ramayana and Ramcharitmanas admittedly form an important part of ancient Indian literature, but these cannot be said to be historical records to incontrovertibly prove the existence of the characters and occurrences of events depicted therein.”

The Sethusamudram project is meant to dredge an 83-km-long canal linking Palk Bay and Gulf of Mannar to reduce shipping distance by almost 600kms. For environmentalists, the project would destroy marine biodiversity and increase the risk of natural disasters. To the politicians trying to keep the so-called Hindu vote in their favours, the project would wipe out Adam’s Bridge or Ram Setu, built by an army of monkeys led by Lord Ram to rescue his wife from Ravana.

I am sure if Valmiki, Tulsidas, or even Ram whose all acts were to keep his people happy and prosperous, appear today incarnated again, will give their verdict in favour of the project.

The Sethu Samudram Ship Canal project will enable vessels to save on time taken to circumnavigate the Sri Lankan island while going from west to east. It is a commercial proposal as other famous canals in the world such as the Suez or Panama. The project will save millions of rupees every year for the country. Why should the politicians obstruct that with a hope that it can get them the vote of a community that is so much divided in thousands of castes? Let them drop their myth.

And if the political parties can make an institution such as the Archealogical Survey of India change its version, how can the people hereafter believe on its inferences?

Unfortunately, the professionals are not trained to be politically prudent.

I was recently reading an article in the economists on nuclear power. It says, “Nuclear power was accepted by politicians and the public alike, so there are few delays due to protests or planning problems.” And France today are having the largest number of nuclear power plants in the world about which the leftists are raising so much hue and cry.

Why can’t the politicians take some lessons from other developed and developing nations and stop exploiting this right of democracy for a wrong antinational cause?

Instead, the project can get a nicely coined name with Rama to keep the memory of His Bridge alive for the centuries to come.

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Shocking, Damning, Humiliating, Beastly Bihar

Some 55 years ago, I was in my village in a summer vacation. It was a hot summer. As usual, all the male members of the family and some fellow villagers were in the courtyard of the house that was sprayed with water in the evening to make us sleep comfortably. Suddenly, the whole village was on its feet. Someone had seen a truck going on the bank of the village canal. It was something unusual. He took the truck as one full of thieves going for a robbery to some village nearby. The news spread like wild fire. A huge crowd went ahead and dug the bank of the canal so that while returning the truck would fall in that. And so it happened. When none came out of the truck for sometime, the brave enthusiasts waiting at distance went near the truck. There was no one in that. The driver had run away in darkness.

In the morning, someone came and told us that truck was carrying coal for the village next to ours. I reminded of the incident while reading the recent cases of the mob’s ‘instant justice’ in Bihar.

For quite sometime now, the news from Bihar is becoming more and more shocking, damning, humiliating, and to a great extent beastly.

It started with Bhagalpur. A minor chain snatcher was brutally beaten by the mob. I saw the beastly pleasure on the faces of the scarcely dressed people of all ages in the crowd on TV screen. Even the policemen who came there tried to give some exemplary punishment to the culprit. He tied the alleged thief to his motorcycle and dragged the bare bodied on the road. All that was when a video camera was on.

In another incident, three motorcycle snatchers had their eyes gouged out by an angry mob in Bihar’s Nawada district last Sunday.

On Monday two children were beaten up and paraded in the streets with their heads tonsured in Nawada town, because they allegedly stole few packets of detergent from a shop where they were employed. As reported, ’13-year-old Mochu and 12-year-old Budhan cried and begged forgiveness but to no avail’.

The people are taking law into its hands. “In yet another instance of mob brutality, ten alleged thieves have been beaten to death in Dhelpurva village of Vaishali district in Bihar.” It is an extreme case of instant justice by crowd and failure of police machinery. A CID investigation can’t provide the solution.

Why is it happening? Is it because the people are frustrated and have lost faith in police and judiciary? Is it because the people don’t have any thing to do? Do they try to get some way entertained by these acts? Does it happen because the people are illiterate? Is it because the education today does not emphasise on becoming a good human being with some minimum compassion first? Can any number of police stop this to happen? Does it require some Gandhian mass social reforming approach?

When the Nitish Kumar government started its inning, perhaps the first important visitor to the state was Guru Ramdev. Some other Gurus also visited. As I remember, Nitish Kumar made Ramdev the brand ambassador for Bihar. Perhaps the state requires more of Ramdev and his disciples in all the cities, towns, and villages to conduct the value building programmes as basic requirement. Some value building must be part of education. It is strange that all these are happening in the state of Buddha and Mahavir.

However, the regularity of such incidents is no doubt the indicators of the total failure of the administration at all levels. It got reflected in the statement of even the chief minister when he himself says after hearing Dhelpurva story, “incidents of crime have increased and police are not paying attention.” How can he improve if he doesn’t become aggressive and open to suggestions? Today he is in position to appoint the best policeman of the country (may be Kiran Bedi who recently was superceded by her junior) to head Bihar law and order administration. Why is so keen to keep the men from his own state who are having very poor reputation because of their caste bias. Why can’t he remove the black sheep if he thinks them as hurdle? Is it not getting obvious with as many as 1,600 people turning up at his Janata Durbar to complain against police?

It is unfortunate that all TV channels are making it more difficult for Nitish Kumar. Let us look at the NDTV reporting. “Chief Minister Nitish Kumar may have promised to rid Bihar of crime when he came to power in 2005 but the crime graph in the state seems to be indicating otherwise, especially when it comes to incidents of brutality.” And then NDTV reporter goes to Lalu Yadav who squarely laid the blame for the incident on the Chief Minister. ”There is no law and order in the state of Bihar. The government has failed completely. The police also stand by and watch. There is complete anarchy in Bihar.”

Why should media go to Lalu for a comment on everything that happens in Bihar and publicize his remarks that are never serious? Whatever is happening today are the cumulative results of the years of mishandling of law and order in Bihar. And the Lalu’s clan had ruled then.

Bihar needs some innovative handling of the situation. Only the chief minister and his team can do that. It can’t improve its image without that.

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Amritsar- Some Observations

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Defence Can Boost Manufacturing Sector

India can get rid of its poverty only if it becomes a major manufacturing power. It will have to manufacture everything that the domestic as well as global consumers demand today and will demand tomorrow. If India is not in manufacturing in a big way, it can’t remain at top in services for long.

Manufacturing can get big boost in two ways: Firstly India’s private sector must enter all the sectors monopolized till date by public sector including defence manufacturing. Secondly, all the public sector enterprises including the defence production companies must encourage outsourcing the parts and subassemblies to local vendors in big way.

Defence production is a huge manufacturing business. As on today, major indigenous defence production remains with government enterprises mostly under defence ministry. On one hand, the defence forces have special liking for the hardwares from Russia, France, Israel, and other foreign sources, perhaps out of selfish interest. It keeps on finding reasons that sometimes appear as excuses, to import. So it doesn’t actively associate itself in indigenising or show interest in using the locally developed and produced products, machinery, arms, ammunition and equipment. Arjun main battle tank is an example. Same must be true with number of other locally developed armaments and equipment. On the other hand, the production enterprises under defence ministry have hardly grown in scale and technology with time. My experiences of some ordnance factories manufacturing guns and vehicles have been real poor. People in the establishments hardly work. The defence production organizations lack efficiency, competitiveness and aggressiveness that are necessary to grow. The existing factories must improve its productivity and cost competitiveness and must produce the contemporary products required by the defence forces. It requires factory based R&D and innovations.

India is spending billions of dollars importing all sorts of major weapons. With capability to manufacture precision mechanical as well as electronics components and highly talented human resources, India has all the potentials to manufacture them in the country. And the local production could have given a big boost to the local economy creating huge employment. And it can’t happen if private enterprises don’t enter the sector.

Why can’t the country see the coming up of an Indian equivalent of the US’s Lockheed Martin or the UK’s BAE Systems in private sector?

As reported, the total sales of the 39 ordnance factories and eight defence PSUs in the country added up to Rs 19,916 crore in 2005-06. That’s about 58 per cent of the country’s arms purchases for that year. India’s private sector defence companies aggregated sales of only Rs 4,606 crore ($1.02 billion) in 2005-06 in the form of raw material, components and sub-assemblies supplied to the ordnance factories and defence PSUs. More importantly, however, the local manufacture does not include sophisticated technology items.

India placed import orders worth $5 billion (Rs 22,500 crore) for all the critical items, according to Stockholm International Peace Research Institute (SIPRI).

As per one estimate, India will spend $45 billion (Rs 1,84,500 crore) on buying arms and equipment for its armed forces over the next five years.

About $30 billion (Rs 1,23,000 crore) of this will be on imports. However, India’s defence industry will get business worth about $9 billion (Rs 36,900 crore) through a new defence offset policy. Under this new policy, foreign suppliers with defence orders of more than Rs 300 crore are required to spend 30 per cent of the order value in investments in Indian defence companies or sourcing defence products and services from Indian defence units. This can’t be the way India can go in manufacturing in big way. India must have many more OEMs.

India’s defence industry has the potential to be 10 times its current size of Rs 20,000 crore within a decade given the current trend of increased arms acquisitions. Why can’t India take a lesson from the US defence industry that had a turnover of $183 billion (Rs 7,50,300 crore) in 2005, and employs more than 2 million people?

Defence production was opened in 2001 for private entrepreneurs. A few companies have already taken significant steps to become serious players.

 L&T has been working for DRDO on many projects, including development of missiles and rocket launchers, torpedo launchers, bridge-laying tanks and submarine hulls. It has now orders for 40 ‘Pinaka’ mobile rocket launchers that it developed along with Tata Power from the Army.

 Tata Power’s Strategic Electronics Division has also specialised in making computers for fire-and-forget weapons and surveillance and tracking systems.

 Mahindra & Mahindra (M&M) is making light combat and armoured vehicles.

 HCL Comnet, Noida has laid satellite and terrestrial communication networks for the Army

 Astra Microwave Products, Hyderabad makes radar components.

 Wipro has set up a cell to tap the offset opportunities in engineering design and software for weapons and aircraft components. WIPRO’s hydraulics division is looking to tie up with aircraft landing gear makers.

Many more big private players must join the defence industry and the government must facilitate that. Defence production can’t remain a government business any more.

A vibrant defence industry is in national interest. It always means a superb technological R&D, and that in turn could also be useful in the civil sector. Historically, military research has yielded many technologies or accelerated technological development. Military needs were behind familiar technologies such as the Internet, computers, satellites, and even high-definition television. Interestingly, in India, one example of military technology put to civil use is ready-to-eat packaged food. DRDO developed it for the troops, but later licensed to MTR Foods.

As reported, the private sector is battling two factions in the Ministry of Defence – one that favours imports in the name of providing the armed forces with the latest and the best in the market, and another that favours the public sector in the name of national security and jobs. And both are harmful for the nation. Defence production must get freed for the highly talented entrepreneurs off the country.

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‘Green India’, ‘Green Noida’, But Black Administration

It used to be heartening when the former President Kalam pleaded regularly to take to mass planting of trees all over the country. Our scriptures say that planting trees are surest way to get rid of one’s sins and reach heaven. It was exciting news to find that the UPA government is set to launch the ‘Green India project, that aims to afforest more than 6 million hectares – around 2% of the country’s total area – with the help of people in the villages.’ In Noida one can see ‘Green Noida, Clean Noida’ slogan written all over the township.

With all this background, it was shocking experience to have received a shocking letter ref: Noida/PE (M) III/2007- 1286 dated 29.08.2007 from the office of project engineer, Noida Authority (NA) on September 1. (All residents of houses in sector 41 that face the road between sector 41 and sector 39 received almost similar letter or with one with little variation through speed post.) The letter says we have made encroachment by planting saplings in front of our houses. The NA attached a nice photograph of the respective houses too. The letter ordered to remove the encroachment in three days. If we didn’t remove, the authority would remove it and charge the cost.

We came to live in this house in sector 41 of Noida in June 1998. There was hardly any house in our row. The land in front up to the road was lying barren. We had a facing of a huge ground in Sector 39 that was the public defecating ground of all construction workers in this part of Noida. (It remained so till the Noida Authority built a huge prison like boundary wall.) With wind, the plastics and other rubbish used to come up to our houses, and with the foul smell, it was difficult to keep the main door open or to sit outside. And the vehicles on the road further added to the dust generation. We kept on complaining and suggesting for creating fencing and planting trees to conceal the horrendous scene every morning. It was much later that with the help of the horticulture department of the authority, I got planted trees all along the road on the side of Sector 41 A and B blocks. Later on the Noida Authority fenced the side with barbed wire and planted Bougainvillea. However, it didn’t do the same on the side of sector 39.



As we got some inspiration from the mission ‘Green and Clean Noida’, we planted some trees and shrubs too, as clear from the photographs. The idea was to see some greenery when we sit in our balcony and restrict the dirt from the roadside. We don’t consider planting of trees was and is a crime and encroachment by any definition rather it is a national necessity. We have certainly not encroached on Noida Authority land by this act of ours. We don’t claim any right on the trees that we have planted.

In the meantime, some years ago the road was widened. We never objected to that even though we lost some trees in the process and Yamuna, my wife who does take care of the plants, felt really bad about it.

We wonder why should the project engineer issue a letter such as one mentioned above. Why should the Noida authority not encourage the residents to get trees planted wherever it is possible without causing any problem to the community at large instead of threatening those who have done that?

And now a new threat has come. We hear that a wall will soon come up passing through the middle of the greenery that we have created. We don’t know if we will be able to save our trees. Unfortunately, NA and its officers don’t bother to inform the residents of its plan in the manner they sent encroachment notice. And a rumour says, someone who envies the location advantage of our residences that has an open space in front, is behind the erection of wall.

We wish someone saved our greenery and the trees.

PS: Some young residents from Block B approached me today morning. We, almost 20 men and women, went to CEO, Noida Authority and requested him to stop raising the wall. Even though he was too busy, he listened and assured to do something. We wish he could order the suspension of construction of wall that will be second prison wall within 40 ft in front of our houses.

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Kidnappings in Bihar: Law and order or Social problem?

Farzand Ahmed’s The Missing Kids in the latest ‘India Today’ presents a dismal picture of the law and order situation, related to kidnappings in Bihar. I may ignore Rabri Devi’s concern for “sushasan” (good governance). But if I go by media and information that I keep on getting from my own sources in Bihar, the menace of kidnappings of the children in particular is showing no sign of ending. It is not that it is not there in other states but in Bihar it has become a trade and means of taking revenge and making quick money.

A month ago, I received an email from one whom I have come to know because of my blog http://www.drishtikona.com, with an attachment from a vernacular newspaper giving a story of kidnapping related to someone in my village. I called my brother who lives there. It appeared he was really concerned and excited about the incident as it happened in my village. After going through Farzand story, I contacted my brother again and heard the whole story of the kidnapping of the village. It ran like a novel. As it is now known, the news of the kidnapping was a made-up one that never happened but created. It originated in the enmity of two closely related but warring families for vested interest out of hurt egos.

Yesterday I came across good news of the ‘abducted boy rescued within 24 hours in Bihar’. With the help of a common friend, two employees of a private firm had abducted Chhotu, a 6-year old son of a jawan to make a fast buck and realize heir dream to own a sleek motorcycles. The police had acted fast and smart and could put one of the abductors behind the bar.

And then to make the menace more complicated, Farzand provides another interesting aspect of Bihar’s kidnapping story. “According to an independent study conducted by the Crime Branch of the state police, more young girls and boys are kidnapped for marriage than for ransom. Such marriages, common in some north Bihar districts including Muzaffarpur, Begusarai and Samastipur, are called pakadua shaadi. Out of the total cases of kidnapping recorded between January and June this year, says the Crime Branch analysis, 419 were for marriage and only 48 were executed for ransom.” While I do believe that the police in Bihar have failed to solve the menace of kidnappings, but can the police solve it, if it continues the way the people of all categories and classes in Bihar are using it as tool? Don’t the people of Bihar require something more?

But it doesn’t mean that kidnapping is not a serious law and order issue in Bihar. “An ‘updated status report’ on the action taken on the cases of abduction of children makes a sensational reading: between 2001 and June 23, 2007, a total of 2,068 children were kidnapped in Bihar. While the police succeeded in recovering 1,690 children from the clutches of kidnappers, 304 are still not traceable. The report also highlights the macabre fact that over 74 victims were slain by kidnappers. The state capital tops with 36 killings, followed by Bhagalpur (16), Muzaffarpur (13) and Darbhanga (nine).” How can a government call it an improvement in its performance?

The whole story is just a gory tale of poor law and order situation in Bihar. Farzand says, “A number of mafia dons, who have entered politics, control a well-knit ‘syndicate’ to carry out abductions. Of all the crimes, kidnapping-for-ransom is the safest as the victim’s family does not normally involve the police. The gangs earlier used to target only wealthy farmers but then found that kidnapping and extortion of professionals like doctors, engineers as well as contractors, businessmen and the children of the wealthy was far more lucrative.”

And I again say it requires a tough mindset to hit at the root of the law and order problems. Just as terrorists don’t belong to any caste and community, these kidnappers-for-ransom and murderers don’t belong to any political party or community. The society, the community in particular must disown them. Nitish Kumar must not be content with his ‘a good, honest man’ image. He must be ruthless and follow the steps of Chanakya whose chair he is occupying. With majority in the assembly, Nitish must come out with a POTA like act for kidnapping industry of Bihar or get some really good outsiders as his police chiefs who can work without a caste bias. And the judiciary too must also come out to punish the culprits fast and in the severest manner to eliminate the menace. Bihar doesn’t have a future without a total restructuring of the police administration.

Simultaneously, the state must work really hard to improve upon the human development index with better education, healthcare, and employment that is very basic to get rid of many social problems.

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Booming and Bubbling India- XVII

I have gone through a wonderful story in Fortune, ‘On the Road: Why India can win on some points against China’:

M.V. Kotwal, a director of Larsen & Toubro (L&T), India’s largest and most international heavy engineering group, said that China is a “regulated economy which means suppression of independent thinking, and that limits entrepreneurial activity.” Kotwal knows the market – L&T has sold ten coal gasification plants totaling $350 million to China in the past three years. By contrast, in India “there is a lot of freedom of thought which means that talent is available, and people come out with solutions whenever they are given a chance.”

A similar view came from someone else with direct China experience – Anand Mahindra, managing director of Mahindra & Mahindra, a tractors-to-cars company that has bought a tractor plant there. He said that though Chinese workers on machine tools could beat deadlines, they did not have the flexibility to switch instantly to a different machine. “The Indian mind is not fazed by confusion and apparent disorder,” he said, “If there is a wrinkle on a dye, an Indian engineer will sort it, but a Chinese will want to fly in an expert.”

And see now how India is booming and bubbling too.

Outsourcing Britain’s elderly to India? “I’m looking for a suitable site to set up a home for the elderly in Delhi or Noida,” said Ajit Prasad, who owns five nursing homes in Britain, three of them in high-end Surrey area. “My estimate is that it would cost people around 700 pounds per month.” Staying in a home of a similar quality in Britain would cost around 1600 pounds.

Change IST, save energy: A team of scientists in Bangalore wants that the IST be advanced by half an hour – to be six hours ahead of the Greenwich Mean Time (GMT) or the Universal Coordinated Time – to save 16 per cent peak evening electricity and about Rs 1,000 crore per year.

Intel to provide content to 1800 schools: Intel Technology India will provide internet-based content to over 1,800 higher secondary schools for student learning and training of teachers, according to a MoU signed between the Tamil Nadu government and Intel. Tamil Nadu has over 1800 higher secondary schools provided with computer lab infrastructure.

India’s software to join hands with Taiwan’s hardware: Ten industry experts and government representatives are in Taiwan that has more than 90% of the world’s market share in computers (desktop and notebooks), 70% in semiconductors, 50% in liquid crystal display (LCD) and 44% in integrated circuit (IC) design on an Invest India Mission and exploring investment opportunities.

Kalyani Group buys German engg firm RSB: The $2.1 billion Kalyani Group announced the acquisition of RSBconsult (RSB), Germany as a strategic step towards boosting its presence in the wind energy sector.

UK firm buys Apollo stake for $100 mn: British private equity firm, Apax Partners, is investing USD 100 million for an 11 per cent stake in India’s Apollo Hospitals Enterprises to take advantage of the fast-growing healthcare industry.

Exports show resilience against rupee effect: India’s exports grew at a slower pace of 18.52 per cent in July 2007 as against 40.67 per cent a year ago, but showed resilience to the appreciating rupee hitting exporters’ margins. Exports for July this year increased to $12.49 billion from $10.54 billion in the same month last year.

India to add 10 mn mobiles a month: “We are already creating record by adding upto seven million subscriber every month now and we are absolutely sure to achieve the 10-million mark by December 2007.”

Israel’s Plaza to invest Rs5, 000 cr in 50 malls: Israeli mall developer Plaza Center NV will invest Rs5, 000 crore over the next five-seven years to set up 50 malls in India.
According to the India Retail Report 2007, organized retail in India accounted for 4.6% of the $270 billion (Rs11.07 trillion) retail market in India in 2006 and is growing at around 40% a year.

Posco suggests fish and pickle deal for land-losers: Korean steel giant Posco that is setting up Rs 52,000 crore, 12 million tonne steel plant in Orissa’s Jagatsinghpur district, is offering the 140-odd fisher families displaced by India’s largest greenfield steel plant an assured market for dried fish and mango pickle in South Korea, apart from monetary compensation for the land.

Reliance buys east African oil retailer: Reliance Industries had bought a majority stake and management control of east African oil retailer Gulf Africa Petroleum Corp (GAPCO) which would give it access to the rapidly growing economies of east Africa, where demand for petroleum products is rising.

Paramount Communications buys UK’s AEI Cables: Cabling solutions provider Paramount Communications has acquired UK-based AEI Cables in an all-cash deal, to strengthen its product range for core segments and facilitate expansion in international markets that would make Paramount Communications the largest listed Indian company in the cable industry with an annual turnover of over Rs1, 100 crore.

India would have 700 TV channels: More than 100 new TV channels are scheduled for launch in India over the next 12 months, and the total number of channels on air is set to hit 700 by 2009.

New mantra for Indian BPO firms: The back-office arms of India’s leading software service firms such as Wipro Ltd and HCL Technologies Ltd plan to acquire the business process divisions, including employees, of large US and European corporations as a means to acquire business following examples set by larger peers Tata Consultancy Services Ltd (TCS) and Infosys Technologies Ltd.

Click and contact: Now, police stations, officers on web: The contact details of the police stations and officials across the country are now just a click away, the first time in the history of policing in the country. The Bureau of Police Research and Development (BPRD) has already uploaded contact details of police stations of six states and four union territories on its website http://www.bprd.gov.in.

India ranks 69th in global economies freedom index: India improved its ranking in providing freedom to do business in terms of personal choice and competition since it launched economic reforms in 1991 but still remains at 69 among 141 countries. The rating on a scale of 10 improved from 4.9 to 6.6. “This is one of the largest increases in the last 15 years of any country.”

India numero uno travel destination: India has now emerged as the numero uno travel destination, trailing beauties of Italy, Thailand, Australia and New Zealand, according to survey by a widely read British magazine Conde Nest Traveller.

ICICI confident of leveraging up to $75 bn: India’s largest private sector lender ICICI Bank can mobilise up to USD 75 billion in the next three to five years to meet the growing economy’s credit requirement by leveraging the bank’s just concluded USD 5 billion public offer.

Great Indian job factory: In a clear reversal of jobless growth witnessed in the 1990s, the National Sample Survey Organisation’s 61st round of report on employment says that employment has grown at a faster rate than the population during 2000-05.

Ansaldo to set up boiler facility in TN: AnsaldoCaldaie Boilers India Pvt. Ltd, a joint venture between AnsaldoCaldaie of Italy and GB Engineering of India, plans to set up a power generation equipment manufacturing facility in Tamil Nadu for boilers with capacities up to 660MW.

India to build a constellation of 7 navigation satellites: India will invest Rs1, 600 crore to build a constellation of seven satellites for navigation in the subcontinent, joining countries such as the US, China and Russia that have their own systems that help in accurately giving directions for vehicles and aircraft.

Small Is Now Global: Medium-sized companies, many of whom are little known, are leading the pack in cherry-picking companies in US and EU – and not just in IT, IT-enabled services and pharma, but also in chemicals, health care, gems and jewellery, irrigation technologies and automotives.

TCS in multi-million dollar deal with Swiss firm: Tata Consultancy Services (TCS) has entered into a multi-year collaboration with Swiss healthcare giant Roche to provide services related to drug development processes.

1.5 lakh PSU bank jobs up for grabs: Public sector banks in the country are likely to recruit over 1.5 lakh personnel in various cadres over the next three years.

‘Technology Review’sTR35: Tapan Parikh, Sanjit Biswas, Partha Ranganathan and Dr Shetal Shah are among the 35 young Innovators from across the world to be chosen this year.

NTPC to add renewable energy capacity: NTPC Ltd, the country’s biggest power generation utility, plans to add 1,000 MW of renewable energy capacity, including 650 MW from wind energy, over the next few years as part of its diversification drive.

India remains world’s favourite outsourcing destination: “At present outsourcing business in India is increasing at a rate four times more than any other country and the county has the resource and margin to meet the competition.” According to the study, growing at a rate of 40% annually, India is the lead player in this sector followed by China at the second spot with a growth rate of 25%.

Gold consumption may cross 1,000tn this year: Gold consumption in India is likely to cross the 1,000-tonne mark for the first time if prices remain stable or grow steadily, according to World Gold Council (WGC). The consumption was a little over 700 tonne in 2006.

India still on priority list for manufacturing: “Manufacturing in India is important for Intel, but the government was slow in coming out with its semiconductor manufacturing proposal and missed the window. We had to commit ourselves to options like Vietnam and China,” said Craig Barrett, chairman, Intel who was in India visit recently. The digital transformation of Tindivanam, a small town about 140 km from Chennai, is expected to improve the healthcare of its 210,000 population. While chipmaker Intel conceptualised the telemedicine project, it is working on it with partners such as Tata Consultancy Services (TCS), Chennai-based Microsense and SN Informatics.

India to receive $20 bn FDI a year till 2011: India is likely to receive foreign direct investment of $20.4 billion every year during 2007-11, even as executives around the world see developing countries as having “heightened political risk”.

Wartsila to manufacture controllable pitch propellers in India: Finnish equipment-maker Wartsila Corporation will manufacture controllable pitch propellers (CPP) in India to create an important and sizeable production capacity increase for the CPP business at the existing 100% Export Oriented Unit at Wartsila’s factory at Khopoli near Mumbai with an investment of about €5 million.

Wipro Ltd unveils plan to tutor 10,000: Wipro Ltd, has begun a structured learning programme for over 10,000 teachers (to be covered over four years) to impart soft skills and methods to help increase employability of the engineering students graduating out of colleges.

VW launches first car in India: Germany’s Volkswagen, Europe’s largest car manufacturer and the maker of Beetle launched its first locally-assembled car in India, Passat at the Aurangabad plant of Skoda, a VW subsidiary, until its own Rs 2,450 crore plant coming up in Pune is ready.

Pharma sector on move: Ranbaxy has completed the second phase of the clinical trial of a revolutionary anti-malarial drug that could enable it to be the nation’s first pharmaceutical company to launch a New Chemical Entity (NCE) globally. Dr. Reddy’s Laboratories has been granted the final approval to sell 150 mg anti-ulcer ranitidine tablet in the US market, according to the US Food and Drug Administration.

Indian Inc on top in Forbes’ list: A total of 12 Indian companies made it to the third annual ‘Forbes Asia Fabulous 50 List’, followed by Taiwan with 10 and China with seven, Forbes Asia said in a press release.

Renault Nissan alliance to set up new center: The Renault Nissan alliance announced the creation of new business centre by the name of ‘The Renault Nissan Technology and Business Centre India Private Ltd´ in Chennai. “When completed, the new business centre will provide services including product and manufacturing engineering, purchasing, design, cost management and information systems development.”

Indo-US Task Force on Global Innovation: Ficci and the Los Angeles-based Pacific Council on International Policy have joined hands in establishing a Task Force of business leaders on both sides on “Shaping global innovation economy: enhancing cooperation in India-US relations” It is not only Nuclear Deal.
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Labour intensive manufacturing: Labour intensive manufacturing sectors registered over 52 per cent growth in investment during the last financial year, resulting in an outstanding investment of Rs 19,14,246 crore as on March 31, 2007, according to CMIE.

Triumph setting up facility near Chennai: Triumph International is setting up a womenswear manufacturing facility near Chennai, with a seating capacity for over 1,300 people.

TCS to open third centre in China: Tata Consultancy Services plans to open its third IT centre in China in the current fiscal and increase its headcount five-fold to 5,000 by 2010, in China, where the company currently has a workforce of 1,000.

Corus working on cost-saving technology: Corus is developing an alternative technology for steel making to use iron ore fines and coal which will result in significant cost reduction. And Tata Steel has gone ahead of Reliance Industries.

Daimler Chrysler to build new India plant: Daimler Chrysler AG is setting up a new plant in Pune at a cost of 50 million euros which will be commissioned by 2009.

Aviation sector to attract $150 bn in 10 years: India’s civil aviation industry will attract investments worth $150 billion in the next 10 years. India will be the fourth country in the world, which will have a satellite-based navigation system in the aviation sector. Indian Airlines and Air India jointly require 200 aircraft by 2011. Air India has already ordered 111 aircraft, of which 11 have already been ordered so far.

While politics in India is bubbling over Indo-US Nuclear Deal, India Inc. is really flying high and fast.

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New Zealand Objection to Chinese Textiles vs. Ayurvedic Burqas in S Arabia

The Chinese manufacturing miracle is showing its real face. It is clear from many recalls such as those of toxic toys in millions. I wrote about this earlier. In many cases, it is only due to very poor business ethics. Our manufacturers must learn lessons and must prevent something like that to happen for Indian goods. Those who are only contract manufacturers such as auto component manufacturers must understand the total product specifications of the OEM or have the responsibility of the quality control with OEM.

Chinese are also not sitting idle. They have stepped up efforts to cleanse reputation. However, two news reports that appeared recently in print media are interesting for its contrasting approaches.

New Zealand is confronted with a controversy on excessive levels of chemical formaldehyde in children’s clothes imported from China. Formaldehyde is a chemical preservative that gives a permanent press effect to clothes can cause problems ranging from skin rashes to cancer. A lot of controversies, accusations, and finding faults are appearing in newspapers.

From India, a story of Ayurvedic textiles appeared in press. Burqas made in the Ayurvedic way are the latest export from Balaramapuram, a tiny village on the outskirts of Thiruvananthapuram, and a craze in Saudi Arabia. In the past few months, Rajan whose family has been in the trade for 600 years, has exported about 4,000 burqas to Saudi Arabia. Last year, Handloom Weavers Cooperative Society exported clothes worth Rs 2 crore to the US, UK, France, Mexico, South Africa and Japan. The struggling Kerala handloom weavers have rediscovered the ancient art of weaving organic clothes.

Here is the story in Rajan’s own words:

”In Ayurveda, these fabrics are called Ayurvastra. Only natural cotton and colouring is used so that they are free of toxic irritants. These are also treated with medicinal herbs as prescribed by Ayurvedic texts to improve the healing value.”

As claimed, clinical trials at the Government Ayurveda College Hospital, Thiruvananthapuram showed that the fabric was quite effective, especially in cases of skin ailments and arthritis. As part of the test, patients were constantly exposed to Ayurvedic herbs through Ayurvastra for 30 days. Even the curtains in the room, linen and mattresses were made as prescribed in the ancient Indian treatise, Charaka Samhita.

Ayurvastra can cure ailments ranging from dermatitis to arthritis, from blood pressure to diabetes.

The manufacturing is tedious and demands 100% purity. Only firewood is used, that too different one for different medicines, natural spring or ground water and organic cotton. The gum for fixing the colours, too, is natural and varies depending on the medicine. After dyeing, the clothes are dried in the herbal garden. Even the factory building is organic – to avoid radiation on the clothes – and uses lime and gum extracts from wild trees in place of cement and sand.

Rajan says, ”Ayurvastra can spell a revival for us. But there is little help. The Vajpayee regime helped us. Even the Japanese government recognised our efforts and gave us Rs 20 lakh assistance. But there’s been no help from the state government.”

”The demand for Ayurvastra is increasing. But there are impediments like lack of organic cotton. Japan and France demand a certificate that it is organic.”

Why should the Kearla government not help these weavers? Is its secularism coming on the way? India has a great history of textiles. Just as the ayurvastra of Kerala, there are many special and unique textiles from different regions. India can easily be the second largest, if not the largest exporter. It can excel, if it innovates to make it contemporary and safe and acceptable in every manner to the targeted customers.

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