India Newsletter 02.2011

EMBASSY OF INDIA K채rntner Ring 2 A-1010 Vienna, Austria Tel.: +43 (0)1 505 8666 Fax: +43 (0)1 505 9219 Web: www.indianembassy.at Email: indemb@eoivien.vienna.at

INDIA NEWSLETTER February 2011

News Economy & Business January/2011 Highlights ► ECONOMY Economic Growth. Prime Minister Manmohan Singh said the Indian economy would record 8.5% growth during the current fiscal

fiscal year. Exports in December aggregat-

dian construction and mining equipment

ed to $22.5bi, while imports contracted by

have been tried and tested. These have

11% to 25.1bil, resulting in a narrow trade

competitive prices, given that their produc-

deficit of $2.6bil, the lowest in three years.

tion costs are 30% lower that those made in Europe and the USA.

and is expected to grow at the rate of 9-

Global Trade. Emerging from the grip of a

10% from the next financial year despite the

crippling recession, world trade is set to

Solar Energy. According to a report by Lux

"uncertain" global scenario. According to an

surge by 13.5% in 2010, with a resurgent

Research, as no. 1 global solar market Ger-

assessment by credit rating agency Crisil,

India contributing over half a trillion USD to

many ratchets down subsidies for solar

India‗s economy could expand at a spectac-

global commerce for the first time in history.

power this year, investors looking for the

ular rate of 8.4% over the next five years or

next hot market for the renewable energy

by 10% if it solves its constraints in infra-

FDI. According to official statements, the

structure, skilled workforce and agriculture.

Foreign Investment Promotion Board recommended proposals entailing foreign di-

Outlook. India is poised to overtake the

rect investment inflows of €3.8bil for approv-

USA and emerge as the World‗s second

al by the Finance Minister during 2010.◄

largest economy on purchasing power parity basis by 2050 and has the potential to supersede China to the top spot, says a report published by PwC. India is expected to achieve the most significant increases in share of the world GDP at Market Exchange Rates (MERs) by 2050. In 2009, India‗s share of World‗s GDP at MERs was just 2%. By 2050, this share could grow to around 13%.

Global Recovery. Describing India as a global player and rising economic power, World Bank president Robert Zoellick has said the high level of growth in the country is helping the international economy recover from the crippling effects of recent finan-

source should be eyeing India. The report looked at growth potential of 15 emerging solar markets and found that India has massive potential because of government subsidies, a need for distributed generation and increasing energy demands. Russia,

► BUSINESS/INDUSTRY

Brazil and Mexico were also identified as Aviation. India's largest low-cost carrier,

potential even though they do not have

IndiGo has signed a MoU for 180 eco-

large solar market incentives.

efficient Airbus A320 aircraft of which 150 will be A320neo‘s and 30 will be A320s. It is the largest single firm order number for large jets in commercial aviation history.

The total order value amounts $15.6bil.

M&A. Indian mergers and acquisitions in 2011 may surpass 2010‗s record $71bil of deals, led by oil and gas, metals and mining companies, according to M&A bankers.

Cross-border

deals

rose

to

a

record

Automotive. India is poised to become the

$59.2bil in 2010. The acquisition spree in

world‘s fourth largest passenger vehicles

India (as in the BRIC countries) contrasts

market (PV) in the next three years, with an

with a slowdown in global deals.

investment requirement of around $20 billion for the construction of nine new plants

Business Expectation Index (BEI). The BEI, which acts as a barometer of the over-

to address the growing demand.

all health of the manufacturing sector, has

cial turmoil. India, he further said, is a play-

The growth momentum in Indian automo-

gone up to 126.5 for the Oct-Dec 2010

er on the global stage. The country‗s status

tive sales volume shall continue during

quarter, its highest reading since the Apr-

as a rising economic power is closely con-

2011 with commercial and passenger vehi-

Jun 2007 quarter. The index was at 119 for

nected with how it manages this next phase

cles witnessing a growth of about 10-12%

the quarter ended September 2010 and at

of growth, balancing rapid development

and 12-15% respectively.

82.6 for the quarter ended March 2009.

Construction/Mining. India‗s construction

Pharmaceuticals. Sales in the domestic

and mining equipment exports to Southeast

drug retail market rose a healthy 18.36%

Asian markets is expected to double to 10%

during 2010, making India an attractive des-

Exports. India‗s exports showed a remark-

in the next three years, a senior CII

tination for foreign players who have been

able annual growth in December 2010 of

(Confederation of Indian Industry) official

looking to buy local companies to increase

36.4%, highest in 33 months. This raises

said. He added that their members are tar-

exposure in one of the fastest growing

prospects of the country exporting $215-

geting the Indonesian, Myanmar, Vietnam-

healthcare markets globally.

225bil worth of merchandise in the current

ese and the Philippines markets, where In-

with the environment and most importantly, the need to ensure all people have opportunity.

February 2011 - India-Austria Newsletter | 2

News January/2011 Highlights (cont'd ) Coffee. Coffee export from India has in-

Japan/Malaysia. India has finalised free

Nuclear Power. US-based Brighton Group

creased by 56% in the calendar year 2010

trade agreements (FTA) with Japan and

is planning to set up a $600mil nuclear

because of strong domestic production and

Malaysia and will sign the deals in Febru-

power equipment manufacturing facility

better pricing in the international markets.

ary, said the country‗s minister for com-

near Visakhapatnam in Andhra Pradesh.

India produced 289,000 tons in 2009-2010,

merce and industry. The FTA deal between

The plant will be set up on 800-acres.

up by 10.4% from the previous year. Ex-

India and Malaysia is expected to almost

ports climbed to 292,000 tons in 2010 from

double trade by 2015, while the deal with

187,000 tons registered in 2009.

Japan could boost bilateral commerce ten-

Retail Expansion. The $20bil organised

fold between the two Asian powers.

Solar Power. US-based SunEdison intends to invest 100mil in solar projects in India. The company is implementing solar projects in Gujarat, Rajasthan and Uttar

retail sector has seen a space addition of

United Arab Emirates. India has become

Pradesh, and hopes to be active in many

750-900 thousand square meters across

the second largest business partner of the

other states.

formats in calendar year 2010, marking the

UAE after the USA, said Rashid Al Leem,

end of the 'hibernation and correction'

director general of the Hamriyah Free Zone

phase in 2009.◄

Authority (HFZA).

► INTERNATIONAL South Korea. India and South Korea look to doubling their bilateral trade to $30bil by 2014 as a comprehensive economic part-

Mozambique. Indian Tata Steel and its Australian joint venture partner Riversdale Mining acquired full ownership of the $1billion Benga power plant in Mozambique for an undisclosed amount.

South Africa. India sought South Africa‗s

India with a mix of equity and debt over the

cooperation for acquiring coal assets there,

next three years. This is part of the $1bil

besides seeking its help in developing

plan to spend on green energy worldwide.

clean coal technologies ('coal to oil'), which is very much in use in the African nation.

likely to surpass $1bil as more and more Indian businessmen are looking towards Colombia for investments, specially after improvement in security situation. According to Colombia‗s Ambassador in New Delhi, the goal is to keep a growth rate of 30%,

most attractive overseas investment for

which will add another 65km to its network.

Japanese manufacturers over the next decade, says a study. The result suggests an increasing number of Japanese companies are aiming to diversify foreign investment

anti-Japanese demonstrations in China.

Joint land port. India and Bangladesh opened a key joint port at the north-western tip of Banglabandha bordering Phulbari of West Bengal to boost bilateral trade.

Ports. The government of India unveiled a

Bangladesh. Three years after Tata Group called off its $3bil investment plan in Bangladesh, the government in Dhaka is now wooing the Indian conglomerate to reconsider the project, citing better political and

new policy for the Shipping sector that entails an investment of €110bil by 2020 to take the ports capacity to 3,200 MT and bring in major reforms in the space. India at present has 13 major ports under the control of the Centre while has about 200 non

business climate.◄

major ports operated by states and private

between 2014 and 2015.

► INFRA-STRUCTURE

Indonesia. India and Indonesia will formally

Tidal Power. Gujarat Power, along with At-

begin negotiations towards entering into a

lantis Resources Corporations, a London-

Comprehensive

based

Cooperation

has plans to invite global tender in April for its proposed Phase-III expansion project,

which shall ultimately reach the $5bil mark

Economic

Delhi Metro. Delhi Metro Rail Corporation

Japan. India will overtake China as the

amid caution about rising labour costs and

Colombia. India-Colombia trade in 2011 is

poration (IFC) has pledged $300mil for the development of green energy projects in

nership agreement between the two countries liberalises tariff regime.

Green Energy. International Financial Cor-

marine

energy

parties.◄

developer,

has

Agreement (CECA) in the first week of Feb-

signed a MoU with the Gujarat government

ruary, when Indonesian President visits

to implement Asia‘s first tidal power project

New Delhi. This CECA will build on the FTA

off the coast of Gujarat. The proposed pro-

that India has with ASEAN.

ject will have a 50MW capacity and will be completed by 2013.

Quote of the Month "India represents an enormous opportunity for us not just domestically but as a centre for excellence globally" John Makinson Chairman and Chief Executive Penguin Group and Chairman Pearson India

February 2011 - India-Austria Newsletter | 3

News India-Austria Bilateral Business News and Trade Reports

Survey

New India-Austria Cooperation for Exec-

the same period of 2008. A steep increase

utive MBAs. The Indian School of Manage-

(of more than €11mil) is also noticeable in

ment, Hyderabad, is the new partner uni-

India‘s imports of Electrical Machinery for

versity of the Vienna University of Econom-

the Jan-Oct 2010 period when compared to

ics, Academy for Executive Masters in Busi-

the same period of 2009 and 2008. The

ness Administration. Students of the execu-

growth of this item in particular balances

tive MBA program spend a week in India in

the decrease in trade of other items in the

an in-depth exchange experience, visiting

group.

companies and business institutions in India. The program provides a unique 360° global vision with expert insights into management and leadership practice in developed and emerging markets. In the latest Financial Times (FT) Executive MBA Ranking the Vienna University Executive MBA came in with a respectable rank 41 out of

India‘s exports of manufactured goods to Austria seem to be on a slow recovery (based on 2008 figures). The decrease in exports of textile yarn and fabrics in particular deserves special focus. The deep decrease by 17% in Jan-Oct 2009 followed by a further decrease by -2.1% in Jan-Oct 2010 happens at the same time a constant

the top 100 programs in the world.

increase in exports of apparels & clothing Bilateral Trade - October/2010. On a

accessories, which lead to the observation

month-to-month comparison, India‘s ex-

that these are trade substitutes to the unfin-

ports to Austria have increased by 4.06%

ished textile yarns and fabrics goods. One

while imports from Austria decreased by -

can easily draw the conclusion that the

6.81%. In comparison to October 2009, In-

Austrian market is gaining confidence on

dia‘s imports from Austria have decreased

Indian finished textile goods, putting Indian

by -27.9%. The overall trade volume trend

companies some levels up in the value

is positive despite the negative monthly

chain. Additionally, it is possible to observe

fluctuation observed. The main bilateral

that India‘s export of footwear to Austria

trade sectors have shown positive growth

has been setting a positive trend even dur-

rates in the first ten months of 2010 in com-

ing the crisis year of 2009, showing consec-

parison to the same period in 2009.

utive growth levels, being the same for the

India‘s exports to Austria have been growing in virtually all its main trade sectors. In

Jan-Oct 2010 by 23.5% in comparison to the same period in the previous year.

the Machinery & Transport Equipment

In what concerns India‘s imports from Aus-

group, it is worth highlighting the significant

tria, the steep fall in imports of Iron and

rise in trade of Electrical Machinery. India‘s

Steel in 2009 has shown signs of consider-

export volume for Jan-Oct 2010 (approx.

able recovery growing by 26.5% in the first

€31mil) is almost double of its volume in

ten months of 2010.

2009 and more than three times higher than Trade Volume Report (in million EUR) 2008

India’s Export to Austria India’s Import from Austria

2009

2010

Change 2009/2010 (%)

October

Jan-Oct

October

Jan-Oct

October

Jan-Oct

October

Jan-Oct

38.9

353.39

31.29

381.77

43.38

413.79

38.6%

8.4%

59.97

473.57

77.91

449.2

56.2

509.14

-27.9%

13.3%

Indians have better financial literacy levels than most Indians have better financial literacy levels than most other globally and rank second out of ten nations in having a basic financial literacy level, an ING Consumer Resourcefulness Survey said.

According to it, "Indians turn out to be the second out of ten leading nations in the world to have basic financial literacy level (55%), just behind the Japanese".

A majority of Indian consumers have not only shown better skills in managing their household financial budget but are also confident of facing any financial impediments in future as compared to citizens of nine other countries, the survey said.

The survey was carried out amongst 5,000 consumers across ten major nations, including India, the USA, Mexico, The Netherlands, Romania, Belgium, Spain, Korea and Japan. The survey shows that a whooping 84% of Indians prefer buying life insurance products as compared to 54% globally. A similar percentage of Indians believe in maintaining a household budget with a focus on savings.

"The survey shows that Indians are better at managing their finances than most of the other countries in the survey, including being better prepared for their various lifestages, especially retirement," ING Life India‗s chief marketing & strategy officer, Uco Vegter, said.

Indians are much "risk averse" in case of borrowing money, the survey said.

"While average Indians manage their finances in a much organised manner, they borrow money in case of needs such as buying a home (50%) and purchase of a car (43%)," the poll said.

Most Indians households (87%) have an emergency fund compared to 33% globally. The survey finds a correlation between a person‗s financial literacy and his or her emotional well-being. "The more people are financially literate, the more they experience feelings of happiness," the survey said. Overall, the survey revealed that Asians are by far the most financially literate and also eager to learn more. They actively follow their budgets and develop habits of acquiring knowledge before taking financial decisions, the survey said.◄

February 2011 - India-Austria Newsletter | 4

Focus Sector Close-up The Indian Power Industry India‗s power generation capacity, as on 30 September 2009 is estimated at around 152.4GW, with the private sector contributing just over 13% of the installed capacity. Coal, gas and diesel fuel based thermal power plants form a major portion (~64%), accounting for nearly 98GW of the total installed capacity in the country.

The total quantum of power generated in the country has increased from 587 billion unit (BU) in FY04 to 723.6BU in FY09, recording a Compound Annual Growth Rate (CAGR) of 5.3% in the last five years. India‗s current inter-regional (national grid) power transmission capacity stands at 20.75GW (March 2009) Attracted by the prospect of selling power at the prevailing high

and has registered a CAGR of 21.3% in the last two years.

short-term rates, which results in higher than normal profitability, a However, the increase in power generation capacity and transmission networks has not kept pace with the growth in demand, which has resulted in a shortage in power supply in the

number of developers have announced their plans of setting up merchant power plants (MPPs). MPPs are power plants that are not tied up by the terms of long-term power purchase agreements.

country. At the end of FY09, the total electricity peak demand met was only 96,600MW, resulting in a peak deficit of 12%, while the

The likelihood of high returns from merchant power plants present

electricity energy availability was 689BU, which has resulted in an

an attractive investment opportunity to private developers as

energy deficit of 11%. This is the situation, in spite of the stated

compared to the sale of power on a long term PPA basis.

aim of the government to achieve "power for all" by 2012. By

However, the higher risk profile of these projects presents

recognizing the need to bridge the supply deficit, the government

challenges in financing them and in their development.

has initiated a phased investment program to increase generation,

To mitigate these risks, some developers have adopted a hybrid

transmission and distribution capacities over the course of the

model, i.e., tying up 60-70% of the power through long-term sale

Eleventh Five Year Plan period (2007-2012). It aims to increase

arrangements with distributing or trading companies or industrial

the country‗s generation capacity by 79GW and inter-regional

consumers, and selling the balance on a short-term merchant

power transmission capacity by around 21GW during the period.

basis. This improves the bankability of projects and facilitates the

The Planning Commission has estimated that the investment

process of funds being raised on a non-recourse basis. Some of

required in the power sector during the Eleventh Fiver Year Plan

the larger developers have chosen to absorb the risks involved on

will be around $166bil, of which 28% will be contributed by the

their balance sheets and have either developed or are developing

private sector.

their capacities on a pure merchant basis.◄

During 2006-1H2009, power has emerged as the most active sector in the country in terms of Private Equity (PE) deal activity with announced PE investments of $971mil (a total of 14 deals)

Top 5 PE deals in the power sector (2006-1H09) PE Investor

Value Stake mio (%) (USD)

Feb 2008 Sophia Power

Farallon Capital Management and LNM Internet Ventures

404

38

Oct 2007 Adani Power

3i Group

230

8

Jun 2007 Ind-Barath Power Infra

Citigroup Venture Capital International and UTI Venture Funds

72

30

Mar 2009 Essar Power

IDFC Project Equity

68

2

Nov 2008 Orient Green Power

Bessemer Venture Partners, Olympus Capital Holdings and Shriram EPC

55

-

Date

Target

and an average deal size of $74.7mil. Several global PE houses, including 3i Group and Citigroup Venture Capital, have been taking advantage of increasing private sector participation opportunities and

have

acquired

stakes in

power

sector

companies during the past few years.

The Indian power sector is an attractive investment destination with planned capacity addition of almost 160GW by FY17 under the Eleventh and Twelfth Five Year plans. It is estimated that approximately 25-28% of the planned capacity addition in the segment (around 40-50GW) will be from private sources.

February 2011 - India-Austria Newsletter | 5

Interview Business Solar energy is going to get cheaper (Source: Hindu Business Line) An interview with Dr. Matthias Fawer, Vice-President, Sarasin Sustainable, on India being a cost effective destination for investment in solar energy.

In a bid to boost clean energy in India, the Government has set out on a brave experiment of solar auction. With the solar industry being leagues away from achieving grid parity, the sudden investment interest in this renewable source has raised eyebrows.

In an interview with Business Line, Dr. Matthias Fawer, VicePresident, Sarasin Sustainable Investment, gives his perspective on how the emerging buyer's market in the photo voltaic industry could transform solar power into a cost-effective source of energy.

Mr. Fawer works for the Switzerland-based Bank Sarasin & Co. Group and has recently authored a report on the solar industry.

Sarasin is present in India as Sarasin Alpen (India) Pvt Ltd. Q: Solar energy has for long been a less attractive investment option in India given the relatively high cost per MW. What has led to the sudden frenzy in bidding for solar projects in India?

A: There are two strong drivers that have led to this solar project development. On the one hand, it's the government scheme that for the first time, offers some security on a national level. On the other hand, photo voltaic (PV) installations have become considerably cheaper over the last 18 months. The price drop has resulted in 40 to 60 per cent lower investment cost per kilowatt, which will soon make it cost-competitive.

Q: What are the chances of cost remaining at lower levels?

A: As the PV-industry is still a relatively young industry, technology and production processes hold huge scope for improvement as the industry moves up the learning curve. So far the PV industry, like the semiconductor industry did earlier, has followed this curve. Therefore we do not see any reason why cost ($ per kilowatt) should go up again. So in our understanding solar energy is going to get cheaper.

Q: Do you believe that the reverse bidding mechanism adopted under the National Solar Mission in India is a viable option, especially for investors?

A: China also has a bidding mechanism. This process avoids the whole discussion on the right level of the feed-in tariff (FiT) we are seeing here in Europe. The bidding mechanism is flexible and offers the government the option not to pay more for a PV-project than necessary. However, from an investor's point of view it is obviously less attractive than a FiT. This, together with the growing production overcapacities for solar modules, has driven the PV industry to target all countries with FiTs, and even those with a bidding mechanism. This clearly shows that we are in a buyer's market. The goal of the PV industry is to follow that path with cost reductions. This is certainly feasible for the big international players with economies of scale, cell efficiency improvements and higher automation. The ultimate target for PV is to reach grid parity; this means being cost-competitive on a retail level without any subsidies.

Q: You stated that achieving grid parity is the ultimate task. In its absence, does dependence on tariffs make power purchase agreements risky for investors?

A: Normally the FiT cuts are only valid for new PV projects, and not for existing ones. Therefore the investments are safe. There was a time in fall this year when there were discussions in Spain on retroactively reducing tariffs. Now the government has decided against such cuts, because too many jobs would have been endangered and an outcry from Brussels and the debt finance banks concerned was expected.

Q: Would the proposed insistence on using local equipment in the project (in India) be a good move in terms of providing efficient technology at competitive cost?

A: From the point of view of the government, this local content requirement is comprehensible. India also wants to support its own solar industry. In terms of cost, I would not see it as a negative point, as a newly installed cell and/or module manufacturing line in India can be cost-competitive with other Asian production sites.

But whether it will be only local players or also international players moving into India is an open question. In any case, India will see new jobs in the field of renewable energies.

Q: China is said to have the largest solar thermal industry in the world but is also often accused of inferior quality. Is this true?

A: As in many areas, China has made a lot of progress with regard to the quality of solar collectors. True, there are still many simple and cheap products; but a growing number of high quality solar collectors have received all the necessary certifications for export. They reached a good price-performance ratio. For instance, a huge amount of vacuum tube collectors sold in Europe are coming out of China.

Q: Which countries that have promoted solar energy in a big way and were they more cost-effective compared with other renewable sources?

A: By introducing feed-in tariffs a few years ago, Germany played a pivotal role in making the enormous growth of the global PV industry possible. In the past, the German market has proven to be very elastic on the price front, making it the most important driver of the industry even in difficult times. However, the growing success has led to increasing cumulative cost on the consumer electricity bill. This is an ongoing public debate now. But someone has to take up the cudgels for all the others. Newcomers such as India now can therefore approach this industry in a more cost effective way. Other dynamic markets are now needed. It is also in the PV industry's interests to break into new geographical territory.

By 2012, at least eight new markets will drive the industry's expansion, with newly installed PV capacity exceeding 500 MW per annum. Here we will definitely see India.â—„

Q: What has been the international experience with FiT? A: Finding the right balance between support schemes and decreasing costs of PV-installation is a very difficult task. Several countries had to put on the safety brake because of the overheating PV markets (e.g. Spain, Czech Republic, and perhaps Germany).

February 2011 - India-Austria Newsletter | 6

Trade Shows

Automation Expo 2011 AutomationExpo 2011 will be the regions' biggest and most comprehensive exhibition covering the entire gamut of automation technology where visitors can find efficient solutions and innovations useful to make their businesses efficient.

Automation Expo 2011 will cover Industrial Automation, Process Automation, Factory Automation, Building Automation, Systems and Solutions.

Focus of the Show and Exhibitior's Profile: Factory Automation, Process Automation, Instrumentation & Control Systems, Sensor Technology, Robotics and Drives, Industrial Controls & Software Solutions, Wireless AutomationBuilding

Second World Re-Energy Technology Congress The second World Re-Energy Technology Congress will bring together experts from India and abroad to share their experience relating to energy security and sustainable environment and ecofriendly development. About 70 International renewable energy companies, 50 National renewable energy sector companies, 200 exhibitors, 500 International delegates and more than 5000 visitors are expected to attend the congress and the expo.

Focus of the Show: It shall provide vital information about the latest concepts, trends and technological developments with special focus on fostering co-operation for generating green business. The exhibition will showcase latest green technologies, equipments, products and services to harness renewable energy in the energy mix.

Exhibitior's Profile: Diplomats, Policy Makers and Regulatory Bodiesm, Senior Government Officials, Senior Energy Sector Executives, Executives from Private and Public Sector Companies, Technologists, Entrepreneurs, Project Developers, Renewable Energy Associations, Insurance Companies,

Automation, Mobile Robots & Systems, Hydraulic and Pneumatics, Energy Efficiency Improving Solutions, Safety & Security Systems, Detection & Identification Systems Visitior's Profile : Owners/Managing Directors, Directors/ Presidents/CEOs, Technical Directors, General Managers, Chief Engineers, Design Engineers, Electrical Engineers & Managers, Fire & Safety Officers, Inspection Engineers, Machine Builders & Designers, Maintenance Engineers & Managers, Materials Managers, Mechanical Engineers More Information: http://www.intelexpo.com/automationexpo2011 â—„

Architects, Building Owners, Energy Management and Technology Companies, Equipment Suppliers and Services Companies, Advisory Groups, Investors, Banks & Financial Institutions, Equity and Venture Capitalists/Investors, Component Manufacturers, Legal, Tax and Technical Consultants, Environmentalists, Institutes, Green Power Providers, NGOs and Non-Profit Organizations, & Carbon Fund Managers Visitior's Profile : Engineers & contractors, Equipment Supply and Services Companies, Diplomats, Senior Government Officials, Senior Energy Sector Executives, Executives from Private and Public Sector Companies, Technologists, Entrepreneurs, Renewable Energy Associates, Advisory Groups, Investors, Banks, Financial Institutions & Venture Capitalists, Legal, Tax and Technical Consultants, Environmentalists & Advocacy groups, NGOs and Non-Profit Organizations, Academia & Trade Media More Information: http://www.wretc.in â—„

February 2011 - India-Austria Newsletter | 7

Profile Big Players Bharat Forge (BFL) Bharat Forge Ltd., the flagship company of the US $ 2.4 billion

and Tier I supplier. Daimler Chrysler, Toyota, BMW, General

Kalyani Group, is a leading global ‗Full Service Supplier‘ of forged

Motors, Volkswagen, Audi, Renault, Ford, Volvo, Caterpillar -

and machined - engine & chassis components. It is the largest

Perkins, Iveco, Arvin Meritor, Detroit Diesel, Cummins, Dana

exporter of auto components from India and leading chassis

Corporation, Honda, Scania and several others source their

component manufacturer in the world. With manufacturing

complex forging requirements including machined crankshafts,

facilities spread across 11 locations and 5 countries - four in India,

front axle beams and steering knuckles from Bharat Forge.

three in Germany, one each in Sweden, USA and two in China,

BFL is a recipient of several national and international honors,

the company manufactures a wide range of safety and critical

recognition and awards. Forbes Magazine has listed it for

components for passenger cars, SUV‘s, light, medium & heavy

consecutive three years in its global ―Best under a Billion‖ list.

commercial vehicles, tractors and diesel engines. The company

Automotive Component Manufacturers Association of India

also manufactures specialized components for the aerospace,

(ACMA) has honored it over past four years for its export

power, energy, oil & gas, rail & marine, mining & construction

excellence. Outlook recognized BFL as the Best Value Creator for

equipment, and other industries. It is capable of producing

2004 among large companies. BFL has also been awarded the

complex large volume parts in both steel and aluminium.

Indo German Chamber of Commerce (IGCC) Award for

Over the years, Bharat Forge has been investing in creating State-

‗Outstanding Contribution towards Promotion of the Indo-German

of-the-art facilities, world-class capacities and capabilities. Their

Economic Relations for the Year 2005‘. Bharat Forge received

facilities include, fully automated forging and machining lines, the

GKD-NIQR award for ―Outstanding Organization‖ on 23.4.05.

largest of its kind and comparable to the best in the industry.

Currently BFL is implementing a major capacity expansion

Bharat Forge has built up a strong capability in design and

program, which on completion will enable BFL to address global

engineering, including a full fledged product testing and validation

market opportunities even more aggressively and capture larger

facility, which gives Bharat Forge a Full Service Supply Capability

market share. Simultaneously, the company continues to pursue

- from product conceptualization to designing to manufacturing

opportunities for inorganic growth that would result in an enlarged

and product testing & validation.

geographical presence and customer base.◄

Its customer base includes virtually every global automotive OEM BFL Contacts Address: Bharat Forge Limited, Pune Cantonment, Mundhwa, Pune 411 036 India.

Phone: +91 20 267 02777 / Fax: +91 20 26822387 / Email: info@bharatforge.com / Web: www.bharatforge.com

Emerging SME Flash Electronics (India) Pvt. Ltd. Leading Indian Manufacturer for Two / Three Wheeler Automotive

The company focuses on 5 core areas: 1) Electronics, 2) A. C.

Electronics and Electricals. Today the Company boasts of a

Generators/Magnetos and 3) Starter Motors with both Permanent

strength of over 500 employees having plants in 3 Indian States

magnet and field type technology for Motorcycles / Scooters /

and occupying a covered area of nearly 15000 sq. mtrs.

Mopeds / Three Wheelers and Stationary Engines, 4) Chain

FLASH has established a major presence in the Indian market

Sprockets, Electronic Energy Meters, Single and 5) Three phase

and occupies a unchallenged position of leadership within India.

with / without Multi functions using Micro Processors. ◄

Flash Electronics (India) Pvt. Ltd. Address: B-11/3, Mohan Co-Operative Industrial Estate, New Delhi, 110044 India Phone: +91 011 29892141 / Fax: +91 29893467 / Email: flash@flashgroup.in / Web: www.flashgroup.in

February 2011 - India-Austria Newsletter | 8

Tourism State Profile Andhra Pradesh Andhra Pradesh attracts the largest number of tourists in India. 3.2 million visitors visit the state every year. With more than 600 tourist locations, the second largest coast line in the country, 1000 years of history and pilgrimage centres of every major religion of India, AP is truly "The essence of India". Andhra Pradesh‘s capital city, Hyderabad has the atmosphere of an Arabian Nights fairy tale. Whimsical palaces, erstwhile stately homes and crowded bazaars filled with shops selling Hyderabadi pearls, incense and copper utensils characterise the city, while in the distance looms Golconda Fort. The city‘s historical connection traces itself to the rulers or Nizams whose wealth was legendary. Rooms full of jewels and currency notes, a garage full of gleaming Rolls Royce‘s are all now part of history, but a unique culture lives on, colouring the city with its distinctive charm. The Epicurean tastes of this most exalted royal house of princely India gave rise to a fabled cuisine based on painstaking preparations and slow cooking. Much of Hyderabad‘s old town can be covered on foot. The city‘s important landmarks include Charminar, a 16th century gateway; the Salar Jung Museum which exhibits priceless treasures alongside trivia that made up the personal collection of the owner; Mecca Mosque and Golconda Fort. Nagarjunakonda is the site of ongoing excavations which have revealed Buddhist temples, stupas and monasteries. ◄

MORE INFO AT WWW.INDIA-TOURISM.COM

IndiaTourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 / Fax: +49 (69) 242949-77 www.india-tourism.com / info@india-tourism.com

February 2011 - India-Austria Newsletter | 9

Culture / Festival of India 2011 - Cultural Performances Kathak The dance of the the nomadic bards known as Kathaks, or “storytellers“ Kathak is one of the classical dance forms of India (originally from North India). It is a narrative dance form characterized by fast footwork (tatkar), spins (chakkar) and innovative use of bhav in abhinaya. It has today a form that has been influenced at various times in the past by mythological narratives by kathakas, temple dances, the bhakti movement (both Vaishnavism and Shaivite), and Persian influence of the Mughal courts in the 16th century onwards; and these elements are readily discernible. Performers today generally draw their lineage from three major schools of Kathak: the Jaipur gharana, the Lucknow gharana and the Banaras gharana (born in the courts of the Kachwaha Rajput kings, the Nawab of Oudh, and Varanasi respectively); there is also a less prominent (and later) Raigarh gharana which amalgamated technique from all three preceding gharanas but became famous for its own distinctive compositions.

The name Kathak is derived from the Sanskrit word katha meaning story, and katthaka in Sanskrit means s/he who tells a story, or to do with stories. The name of the form is properly katthak, with the geminated dental to show a derived form, but this has since simplified to modern-day kathak. kathaa kahe so kathak is a saying many teachers pass on to their pupils, which is generally translated, 's/he who tells a story, is a kathak', but which can also be translated, 'that which tells a story, that is Kathak.

Kathak Today Today, Kathak has regained its popularity after the period of

decline during the rule of the British Empire where it was frowned upon by Victorian administrators. Not only in India, but throughout the world, it is recognised as one of the seven classical dance forms of India. Kathak‘s unique history has made it very different from other traditional dance forms, although it still retains the same roots. Presently, this classical dance is characterized by a combination of the temple and court forms, inclusive of both the devotion and romantic form that has shaped it through the years.

The influence of theatre dance has presented itself in the movement towards dance productions of stories such as Shakuntala. Expressive motion, rhythmic accuracy, graceful turning, poised stances, technical clarity, hand gestures (mudras) and subtle expression (bhava-abhinaya) are important components of modern Kathak. The work of the Maharaj family of dancers (Acchan Maharaj, Shambhu Maharaj, Lachhu Maharaj and one of the great current dancers still alive today, Birju Maharaj) and his students including Pandit Satya Narayana Charka have been very successful in spreading the popularity of Kathak. Another disciple of Acchan Maharaj is Sitara Devi, daughter of Sukhdev Maharaj of Benaras. Her lively, zestful and fiery performances have impressed many audiences. Shambhu Maharaj also trained Smt. Kumudini Lakhia, who, along with Birju Maharaj, has introduced the relative innovation of multi-person choreographies in Kathak. She has gained a strong reputation for combining purely classical movements and style with distinctly contemporary use of space. ◄

Kathak Performances in the Festival of India 2011 in Vienna, Graz and Klagenfurt Vidha Lal, a multi-faceted Kathak exponent and disciple of renowned Guru Geetanjali Lal of Jaipur Gharana.Vidha has earned great acclaim in the media and from connoisseurs for her brilliant solo performances in India and abroad.

February 2011 - India-Austria Newsletter | 10

Festival of India 2011 - Handicrafts Fair Festival of India 2011 Indian Handicrafts Fair What to expect in forthcoming Indian Handicraft Exhibition cum Sale during 25-30 March 2011 at Ethnology Museum/Heldenplatz, Vienna Indian Fashion Jewellery and Accessories: Creativity of Indian Craftspersons with artificial and natural material

and modified that antique style magnificently.

Folk and Tribal Jewellery

Jewellery has been rooted into the Indian soil, not from today, but from ages that has lent itself to the creative hands of the Indian craftsmen. Just as Indian traditions have evolved with time, so has the Indian jewellery. Exemplary designs, precious stones and the adroit craftsmanship of Indian designers and artisans have given birth to new line of Indian fashion jewellery which is elegant, captivating and defines attitude of individuals to make a ravishing statement in the world of fashion jewellery.

Jewellery making is an art and each piece which is made is crafted out with well-balanced hands. Here's the exquisite collection of our rich inheritance.

Kundankari Inspired by Mughal jewellery, Kundankari is done on gold and silver jewellery. The beauty of kundan work lies in the precise setting of stones into kundan and the overall look of the ornament.

Gemstones are set within solid walls of gold. The jewellery features stones encrusted on one side and colourful and intricate meenakari on the reverse. This technique famous from Rajasthan is now being used to make some of the most in demand in the fashion jewellery industry.

Filigree Work

Much assorted in India, folk and tribal jewellery delicately worked with wood, ivory, plastic, bones, beads and shells, is a visual delight. Kashmir, Himachal Pradesh, Gujarat, Rajasthan and the tribal zones in central, eastern and southern India are popular for ornaments in silver and a particular type of alloy called ‗Pewter‘ that intimates silver. The craftsmen explore the use of all these to give crude and tribal yet fashionable look.

Beaded & Metal Jewellery The enamel workers of Kangra, Chamba, Mandi, and Kullu are very famous for their exquisite chunky bead and metal jewellery.

Elliptical anklets, solid iron-headed bangles, hair ornaments and necklaces known as chandanhaars (a bunch of long silver chain linked by engraved silver plagues) are some of the exquisite pieces that they usually make.

Temple Jewellery Temple jewellery of India is used to adorn the idols of Gods and Goddesses and the designs have become a part of every woman's jewellery collection. Traditionally, the jewellery consists of gold ornaments studded with red and green semi-precious stones. The designs in solid gold jewellery of Tamil Nadu and Kerala are made of paisley motifs.◄

Popularly known as ‗tarkashi‘ — a style from the state of Orissa, Filigree work is done on silver. Twisting the delicate silver wire into delicate loops knitted in a zigzag pattern, lends this style of jewellery in an intricate lace like appearance. Inspired by the way it was done in Greece in ancient times; the work has still maintained

February 2011 - India-Austria Newsletter | 11

Festival of India 2011 - Indian Film Week

“INDIAN FILM WEEK” PROGRAM FREE ADMISSION Reservations required (available from March 10th on) All movies screened at 'De France' Cinema, Schottenring 5, Vienna 1010

www.indianembassy.at/filmweek 17:00 19:45

Friday, 18th March Sholay by Ramesh Sippy Yaadein by Subhash Ghai

Movie Details For more information, visit:

www.indianembassy.at/filmweek (All movies in original language with english subtitles)

17:00 19:30 21:00

Saturday, 19th March Black by Sanjay Leela Bhansali Kesariya Balam by Sandeep Kumar Iqbal by Nagesh Kukunoor

Sunday, 20th March 17:00 Koi Mil Gaya by Rakesh Roshan 20:00 Paheli by Amol Palekar Monday, 21st March 17:00 Lakshya by Farhan Akhtar 20:15 Paheli by Amol Palekar Tuesday, 22nd March 17:00 Sholay by Ramesh Sippy 19:45 Koi Mil Gaya by Rakesh Roshan Wednesday, 23rd March 17:00 Lakshya by Farhan Akhtar 20:15 Iqbal by Nagesh Kukunoor Thursday, 24th March 17:00 Yaadein by Subhash Ghai 20:15 Black by Sanjay Leela Bhansali

Sholay

Black

(Sholay)

(Black)

Action 160 Min.

Drama 124 Min.

Yaadein

Lakshya

(Bittersüße Erinnerungen)

(Mut zur Entscheidung)

Romance 193 Min.

Romance 187 Min.

Koi Mil Gaya (Sternenkind)

Iqbal

Fantasy 165 Min.

Drama 132 Min.

Paheli

Kesariya Balam (Liebe

(Die Schöne und der Geist)

Fantasy 134 Min.

(Iqbal)

ohne Grenzen)

Drama 90 Min.

February 2011 - India-Austria Newsletter | 12

India in Austria Agenda February/March 2011 Talk Series „Zu Gast bei Elisabeth Al-Himrani“ Nr. 74 - Ambassador Dinkar Khullar February 3rd, 2011 - 18:00 Spitzergasse 2 , 1180 Wien Registration required under 01/ 895 42 57 www.austro-indian.at

Talk Series „Zu Gast bei Elisabeth Al-Himrani“ Nr. 75 - Dr. Helga Peterlik, Diplomatengattin March 10th, 2011 - 19:00 Herrengasse 6-8, Stiege I, 10. Stock, Tür 57 , 1010 Wien www.austro-indian.at

India Awakens - Exhibition 26.11.2010 – 27.02.2011 Essl Museum An der Donau-Au 1 3400 Klosterneuburg bei Wien FREE ADMISSION until 27.02.2011 www.esslmusem.com

Festival of India, Vienna 2011 March 15th-30th, various locations Indian Film Week March 18th to 24th (See program on the previous page)

'De France' Cinema Schottenring 5 - 1010 Vienna FREE ADMISSION Reservations required at www.votivkino.at Indian Food Festival March 15th to 31st (See details below)

Radisson Blue Palais Hotel Vienna Parkring 14-16 1010 Vienna

The Spirit - Kathak Dance ›Klagenfurt - March 18th Details to follow ›Graz - March 19th - 20:00 Volkshaus Graz Lagergasse 98a – 8020 Graz Reservations at 0699 1025 9961 More info at www.indiacentergraz.at ›Wien - March 20th - 17:00 Akzent Theater Theresianumgasse 18 - 1040 Wien More info at www.akzent.at

Workshop on "Information Technologies and Innovation in Sanskrit-Based Indian Studies" March 25th and 26th, 09:00-18:00 University of Vienna, Institut für Südasien-, Tibet- und Buddhismuskunde, Spitalgasse 2-4, Hof 2, Eingang 2.1 and 2.7 - 1090 Vienna Registration mandatory. Details to follow

Seminars Indian Dance - March 16th, 18:00 Key-note speaker: Dr. Leela Venkatraman Indian Music - March 21st, 18:00 Key-note speaker: Dr. Shubha Chaudhuri University of Vienna, 1010 Vienna Registration mandatory. Details to follow

UPCOMING EVENT

IMarchNDIA25-30,N HANDI C RAFTS FAI R Völkerkundemuseum/Heldenplatz, Vienna

Published by the commercial section at the Embassy of India, Vienna. www.indianembassy.at Contact: marketingofficer@indianembassy.at

February 2011 - India-Austria Newsletter | 13