Infosys in the Nasdaq-100 Index: On 18th December 2006 Indian IT giant Infosys (market capitalisation on nasdaq - $5.6 Billion) is set to join the likes of Adobe, Apple, Cisco, Dell, eBay, Google, and Microsoft in the Nasdaq 100 Index - becoming the first Indian company to do so!
Infosys is one of the great Indian companies (like Tata) that has a spotless reputation in India, and ranks among one of the most aspirational organisations to work for.
Business wise too, they've grown from strength to strength, and this recognition is the icing on the cake - though people at Infy insist this is just the beginning!
Meanwhile their PR machinery is working overtime, though redundantly, because most media is falling all over themselves to get soundbytes from them. Now that's what I call reputation!
Auto Industry shows 16.4% growth: In the period April to November 2006, India Inc produced 7.4 million vehicles - recording an increased production of 17.52% four wheelers, and 15.02% higher two wheelers. With domestic sales of four wheelers rising by 20.68%, and two wheelers up by 14.43% (the rest of the increase went into exports)
All this growth is good, though I'd say no thanks to advertising - because advertising in the auto sector in India (two wheelers in particular) continues to be pretentious, insightless, and should send most of the relevant creative directors into hiding (except perhaps, those doing the Tata Motors, Bajaj, and TVS work).
The US - India Nuke Deal: Last week the US congress voted overwhelmingly (330 Ayes, 59 Nays, 44 abstentions) to pass the legislation allowing nuclear trade with India, ratifying to the world India's outstanding responsible stand and record in nuclear power management.
Unlike countries like Iran, North Korea and our neighbour Pakistan, India has never postured or threatened anyone with its capabilities, but has focussed on its positive uses.
Capability proven, responsibility recognized and promised, India inc including the Tatas and Reliance Energy can now look forward to expanding their capabilities into nuclear energy in the near future.
Mobile User base crosses 14 crore (14,00,00,000): Indians love to talk. And the mobile phone providers (GSM, WLL and CDMA) have raked in the benefits, adding a whopping 6,700,000 subscribers in November alone. GSM service providers like Airtel and Hutch lead the market, not just offerring basic services but a host of value added services as well.
Not surprisingly, marketing and advertising in this industry is very active and noticeable, with brands like Hutch (courtesy Ogilvy) consistently creating fabulous slick looking and premium feeling campaigns. Airtel also has its act together, but has a more lower mass appeal.
Kerala ties up with Red Hat: The state government of the south Indian state of Kerala (which recently tried to ban Microsoft for some ideological reasons) has joined the free software bandwagon, and is officially opening its doors (blatantly aligning?) to Linux. It's trying to woo Red Hat into setting up facilites and support for the state government and state run schools in Kerala.
My only point is, when state governments are in a habit of banning companies - which literally amounts to banning growth through free trade - I would think twice before investing there.
West Bengal threatens to slip back into the red: This eastern state of India has long sufferred at the hands of communist parties who have consistently paralysed growth and chased companies out of the region, in the name of 'taking care of the interests of the common man'.
Fortunately, over the last half decade or so, we saw a positive change in attitude, stemming from the progressive thinking of the previous and current Chief Ministers - Jyoti Basu and Buddhadev Bhattacharjee respectively. We have begun to see dramatic changes in the state, which until recently looked like something time had forgotten.
New IT parks, new industry and hence new prosperity was beginning to show.
Which is why perhaps the Tata group chose West Bengal as the location for their prestigious new car project. Only to now find themselves at the mercy of archaic thinking communist forces who once again are resorting to strikes, and going on a rampage trying to stop the project from taking off!
These people have no clue as to the damage their actions will cause to the people they claim to be protecting. And how it will effect further investment in the state. Whatever their issues are, need to be resolved in a slightly less violent and more civilised manner than what they're doing right now.
Sprite sells more than Coke! India is full of surprises - and perhaps the only part of the world where the Coca Cola company sells more Sprite than their flagship brand Coke! This is besides the point that their largest selling brand is a third name - Thums Up - which they acquired from an Indian company many years back! The final tally of cases sold by Coca Cola India - Total, 215million; Thums Up, 50million; Sprite, 40million; Coke, 32million.
Cheers!
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Showing posts with label Indian Economy. Show all posts
Showing posts with label Indian Economy. Show all posts
Friday, December 15, 2006
Tuesday, November 28, 2006
India's Hidden Gems
While we and the world talk about Indian IT, Indian BPOs, our growing global competitiveness and our expanding local consumerism, we usually fail to recognise other industries and indicators of potential.
In the last year or so, I've spent a lot of time studying the Indian economy and its various industries - and have discovered a whole new world of potential and opportunity - in areas we take for granted (like hospitality and construction), as well as in places you would not expect (our sewage for instance!).
I am talking about companies that have grown from nothing, with nothing to back them except the ideas and passion of their owners. I'm talking about entrepreneuers who have toiled silently over the years, and have gained success to become market leaders in their fields, without most people even knowing they even exist!
To my mind they're the hidden gems of India, which when polished will shine out bright not just in India - but in the world as well.
Most of them are around 10-15 years old (Note to myself: I must study the social and economic climate in those days to see what were the triggers). Today, they've attained a critical mass and have reached a tipping point - where with minor tweaking and adjustment in either infrastructure, positioning, or communication, they will rise out of anonymity into certain fame in the years to come.
Here are some random choices:
InterGlobe - established in 1989 as a travel agent, InterGlobe is today one of the leading companies in airline and aviation management, travel related services, travel technology (including a BPO), and hotel management. It not only manages over 15 of the world's leading airlines in India, it has now entered the fast growing area of cruise-lines in India. To top it all, InterGlobe recently launched an ailine called IndiGo, and placed an order of 100 aircraft from Airbus! With the two-way traffic of business and leisure travellers growing faster than our population, any guesses if these guys are in the right business?!!
Enhanced WAPP - Started in 1996 by IITian Rajesh Jain, WAPP is today a relatively successful (and market leader in some cities) company in water and waste management in India. Water and waste are such a problem in India, and essential to the success of any civilisation - there's no doubt you've got to watch out for this company being flush with success!
Spectral Services - Ever wondered how a century old luxury hotel can run smoothly in the middle of a lake - with the electricals, plumbing and all mechanical infrastructure working to 5-star efficiency? Well, it's what these folks do - they're MEP consultants (mechanical, engineering, plumbing consultants) who work closely with architects and have helped put together efficient buildings including the homes of some of India's richest Indians as well as landmarks such as the Bahai temple in New Delhi!
These are just a few names - look around India and you will find hundreds of other such companies keeping the economy moving and thriving silently. Providing products and services that don't shout out with multi-crore multi-media advertising or pr campaigns. But result in equally happy consumers.
I believe the next revolution in India will be here - infrastructure, and services. Because as India strives to become an economic superpower, and the world moves in to take advantages of opportunity India - who do you think is going to make us all work and live comfortably?!
In the last year or so, I've spent a lot of time studying the Indian economy and its various industries - and have discovered a whole new world of potential and opportunity - in areas we take for granted (like hospitality and construction), as well as in places you would not expect (our sewage for instance!).
I am talking about companies that have grown from nothing, with nothing to back them except the ideas and passion of their owners. I'm talking about entrepreneuers who have toiled silently over the years, and have gained success to become market leaders in their fields, without most people even knowing they even exist!
To my mind they're the hidden gems of India, which when polished will shine out bright not just in India - but in the world as well.
Most of them are around 10-15 years old (Note to myself: I must study the social and economic climate in those days to see what were the triggers). Today, they've attained a critical mass and have reached a tipping point - where with minor tweaking and adjustment in either infrastructure, positioning, or communication, they will rise out of anonymity into certain fame in the years to come.
Here are some random choices:
InterGlobe - established in 1989 as a travel agent, InterGlobe is today one of the leading companies in airline and aviation management, travel related services, travel technology (including a BPO), and hotel management. It not only manages over 15 of the world's leading airlines in India, it has now entered the fast growing area of cruise-lines in India. To top it all, InterGlobe recently launched an ailine called IndiGo, and placed an order of 100 aircraft from Airbus! With the two-way traffic of business and leisure travellers growing faster than our population, any guesses if these guys are in the right business?!!
Enhanced WAPP - Started in 1996 by IITian Rajesh Jain, WAPP is today a relatively successful (and market leader in some cities) company in water and waste management in India. Water and waste are such a problem in India, and essential to the success of any civilisation - there's no doubt you've got to watch out for this company being flush with success!
Spectral Services - Ever wondered how a century old luxury hotel can run smoothly in the middle of a lake - with the electricals, plumbing and all mechanical infrastructure working to 5-star efficiency? Well, it's what these folks do - they're MEP consultants (mechanical, engineering, plumbing consultants) who work closely with architects and have helped put together efficient buildings including the homes of some of India's richest Indians as well as landmarks such as the Bahai temple in New Delhi!
These are just a few names - look around India and you will find hundreds of other such companies keeping the economy moving and thriving silently. Providing products and services that don't shout out with multi-crore multi-media advertising or pr campaigns. But result in equally happy consumers.
I believe the next revolution in India will be here - infrastructure, and services. Because as India strives to become an economic superpower, and the world moves in to take advantages of opportunity India - who do you think is going to make us all work and live comfortably?!
Wednesday, November 15, 2006
The Indian Economy: News that caught my eye this week!
8% Growth: According to the Centre for Monitoring the Indian Economy (and hints from the Indian Finance Minister) the Indian economy is expected to grow by 8% in the financial year ending March 2007. This comes in the wake of plenty of new capital investments, high credit growth, and improved profitability in the corporate sector.
11th largest 'services' exporter: While overall growth this year is expected to stay healthy, the services business in India is growing by leaps and bounds. According to the WTO's International Trade Statistics, Indian services exports have grown by 41.6% to 56.1 billion USD versus 39.6 billion USD last year!
Indian Insurance companies have reason to smile: While the Indian government is planning to hike FDI in the insurance sector, there are indications that the government is also planning changes in the Insurance Act, which currently mandates that the local promoters in joint ventures with international insurance companies have to compulsarily reduce their stake from 74% to 26% within 10 years. This is good news for Indian companies like Bajaj, Max, HDFC and ICICI who would perhaps want to remain in the business and go solo instead of living under the shadow of their JV partners. FYI, the Indian insurance industry is growing at a rate of around 20% every year!
Taj Group checks into Ritz-Carlton, Boston: Taj Hotels Resorts and Palaces, one of Asia's largest and finest hotel groups (headquartered in Mumbai, India) has entered a definitive agreement to purchase The Ritz-Carlton, Boston from its current owners, Millennium Partners for around US $170-million and close the deal in January 2007. Read the full story here.
For more information/other news around India and its economy, check out IBEF, The Economic Times, Business-Standard
.
11th largest 'services' exporter: While overall growth this year is expected to stay healthy, the services business in India is growing by leaps and bounds. According to the WTO's International Trade Statistics, Indian services exports have grown by 41.6% to 56.1 billion USD versus 39.6 billion USD last year!
Indian Insurance companies have reason to smile: While the Indian government is planning to hike FDI in the insurance sector, there are indications that the government is also planning changes in the Insurance Act, which currently mandates that the local promoters in joint ventures with international insurance companies have to compulsarily reduce their stake from 74% to 26% within 10 years. This is good news for Indian companies like Bajaj, Max, HDFC and ICICI who would perhaps want to remain in the business and go solo instead of living under the shadow of their JV partners. FYI, the Indian insurance industry is growing at a rate of around 20% every year!
Taj Group checks into Ritz-Carlton, Boston: Taj Hotels Resorts and Palaces, one of Asia's largest and finest hotel groups (headquartered in Mumbai, India) has entered a definitive agreement to purchase The Ritz-Carlton, Boston from its current owners, Millennium Partners for around US $170-million and close the deal in January 2007. Read the full story here.
For more information/other news around India and its economy, check out IBEF, The Economic Times, Business-Standard
.
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