INDIANEWSLETTER PUBLISHED BY THE EMBASSY OF INDIA VIENNA
YEAR 1 | ISSUE 7 | JULY 2011
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L N O S t I a . E T y I s S s B E a b W m e W E n N a i d In
News Economy & Business
June2011Highlights ► SPECIAL Outlook. The OECD's first economic survey of India is upbeat on its outlook till 2025. It forecasts that the economy can grow by 10% over the medium term, if the right policies are in place. This is a reaffirmation of the India growth story, overriding current fears that growth could slow if monetary policy is tightened further to tame inflation. The OECD assumes that Indian households will be able to save more as the number of children in every family falls and the elderly population remains stable. It's correct to pitch for more reforms to boost growth. These include hiking infrastructure spends, pruning deficits, and replacing wasteful subsidies with targeted payments to the poor. The government's own Survey for 2010-11 discussed most of these challenges. Some are structural such as deficient supply of urban land, paucity of infrastructure, food supplies trailing demand, slowing capital formation and a fragile global environment. Yet, the economy is projected to grow by 8.5% this year and can grow by 9% annually. India-USA. Noting that India's growth is good for US, Treasury Secretary Timothy Geithner said America wants India to become one of its top 10 trading partner. "In the United States, we aren't just watching India's rise as an economic power, we support it. We encourage it. And we want to help advance it," Geithner said at a news joint conference with the Indian Finance Minister Pranab Mukherjee at the conclusion of the second India-US Economic and Financial Partnership. "India's growth is good for us, just as our growth is good for India. I mentioned earlier that India is now our 12th largest trading partner; the President's goal is to have India become one of our top 10," he said. Credit Rating. International credit rating agency DBRS has upgraded India's long-term foreign and local currency debt rating outlook from negative to stable on account of fiscal consolidation and return to pre-crisis growth levels, backed by a robust policy framework.◄
► ECONOMY Economic Growth. India's economy grew by 7.8% in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector, as against 9.4% in the same three-month period of the previous fiscal. However, economic growth, as measured by GDP, improved to 8.5% in 2010-11 from 8% in 2009-10 due to better farm output and construction activities and financial services performance. Meanwhile, the GDP growth figures for the first and third quarters of FY'11 have beenrevised upward. While the GDP growth figure for Quarter 1 has been pegged at 9.3% -- as against the earlier estimate of 8.9% -the Q3 GDP growth has been revised upward to 8.3% from 8.2%. Exports. India's exports in May rose by 56.9% y-o-y to $25.9 billion, while imports for the month rose 54.1% to $40.9 billion. India's trade deficit in May stood at $15 billion. India's exports grew a record 37.6% in the 2010/11 fiscal year that ended in March, as demand soared for engineering goods, oil products and gems manufactured in Asia's third-largest economy. Per capita Income. Per capita income of Indians grew by 17.9 per cent to Rs 54,835 in 2010-11 from Rs 46,492 in the year-ago period, according to the revised data released by the government.◄
► INDUSTRY/BUSINESS Google. Google India has launched Google global market finder, a free online tool for advertisers to find new markets overseas. The new tool, designed to help Indian businesses expand their business and reach out to customers in the international markets, will be available as part of Google Ads. The Global Market Finder helps to identify new markets based on keyword searches originating from a region. Market Finder translates keywords into any one of 56 languages used in the selected region. It then ranks each location by opportunity based on factors like local search volume, suggested bid price, and competition for each translated keyword. Engineering. India's Engineering R&D providers could capture a 40 % share of global offshore revenues in 11 key verticals by 2020, according to a new report. The report titled "The Futures Report 2011," by Global Futures and Foresight, says, "Outsourcing
will continue to deepen in scope to include R&D. Powerful verticals could be established." The report which cites a 2010 Booz & company study, says that India is the only country in the world to offer a large third party engineering vendor base. The Engineering R&D space has a potential to create more than five million jobs. Chemicals. The Aditya Birla Group said that it has completed the acquisition of the Atlanta based Columbian Chemicals Company. The acquisition which catapults the Aditya Birla Group to the world’s top carbon black producer, was made at $875 million and has been completed subsequent to having obtained all regulatory approvals. The group is expecting synergies in excess US $50 million from the deal. Coal. India seeks technical cooperation with Poland on coal. The government said it has sought technical cooperation from the government of Poland in the field of coal and lignite mining and also asked companies from the European country to invest in India. Tourism. Foreign tourist arrivals (FTAs) in India have helped the tourism industry rebound from the recession-hit phase of the last two years. There has been a 11.5 per cent increase in inbound arrivals for the first five months of this year compared with the same period last year, according to data from the Union Tourism Ministry. Aviation. Opening a new route, the British Midland International (bmi), a group airline of the German carrier Lufthansa, will start its India operations from the city of Amritsar in Punjab to London Heathrow. The airline will start this route from October this year, a statement from the company said. The airline will operate three times a week and is offering promotional fares of $890 for a return ticket on its economy seats. Largest Commercial Order in the History of the Aviation Industry. Low-cost carrier, IndiGo, has signed a $16-billion deal with Airbus to acquire 180 single-aisle aircraft. The firming-up of the order for 150 A320neo and 30 A320 planes follows the memorandum of understanding the carrier had signed with the European aircraft manufacturer in January. Logistics. TNT Express has launched a dedicated B767 freighter service between India and Europe, the country’s largest trade partner. The service will run five times
News June2011Highlights(cont' d) a week between New Delhi and TNT’s European air hub in Belgium, with a stopover in Dubai on the way back to India. The new service will enable TNT Express customers to enjoy faster transit times, as well as improved control and visibility over shipments moving between India and Europe. Investment: Photovoltaic. Birla Surya Limited, a part of the Yash Birla Group, plans to invest $1.2 billion, over the next five years, to set up an integrated unit for fabrication of multi-crystalline silicon wafers and manufacturing solar photovoltaic cells. Investment: Telecom. Huawei Technologies, a telecom equipment maker from China, is planning to start operations at its manufacturing facility in Sriperumbudur, near Chennai in the next two years to cater to the domestic needs of the telecommunications market. The plant is expected to attract an investment of around $500 million. Joint Venture: Transport Infrastructure Invesment. Morgan Stanley Infrastructure Partners (MSIP), a US$4 billion global infrastructure fund, has committed to invest up to $200 million in a joint venture with Isolux Corsán Concesiones in India. Grupo Isolux Corsán has also committed to match the investment in the joint venture, bringing the total commitment to US$400 million, one of the largest foreign investments in Indian transport infrastructure to date. Joint Venture: Power. MHS Energy Pvt Ltd, a newly launched infrastructure company offering outdoor power solutions for telecom industry, announced its joint venture with Germany-based b+w Electronics Systems to provide outdoor power solutions with low maintenance costs in India. It would invest $33 million in the initial stage to set up a manufacturing unit and to supply solar power solutions. India-Italy Tie-Up. Gitanjali Group, India’s leading jewellery and lifestyle products manufacturer and retailer, has entered into an exclusive marketing and distribution tieup with Italy’s largest writing instrument retailer, Emonte. Under the agreement, Gitanjali Group would roll out Emonte’s leading pen brands Visconti from Italy and Kaweco from Germany in India. Expansion: Electronics. With its South Korean competition including Samsung and LG retaining their firm grasp over India’s consumer electronics market, Japanese major Panasonic is banking on localised
products and significant marketing spend to make inroads into one of its strategic regions. By 2012, Panasonic intends to generate sales revenues of about $2 billion from India. As part of its plan to gain market share, Panasonic will establish its largest manufacturing facility in the country in Haryana, which will be operational by 2012, apart from the recently announced research and development centre in Gurgaon that will focus on products for the domestic market. Both facilities will have a combined cost of under $300 million, according to the company’s website. Expansion: Dairy Food. Cooperative dairy giant Amul is aiming to expand its presence out of India. It is considering to open a processing facility in US and subsequently Europe market. Expansion: Motorcyles. Honda Motor Co.'s (HMC) Indian two-wheeler unit will invest about $331 million on its production capacity expansion plan. Honda is among several auto companies in India which are expanding their existing plants or building new factories to tap the world's biggest twowheeler market after China. Expansion: Cables/Wires. OBO Bettermann, Germany-based electrical support infrastructure company, is planning to invest $33 million in setting up a manufacturing facility at Oragadam, near Chennai. The proposed facility will manufacture metalbased electrical and data cable support systems for the growing domestic and other Asian markets. According to Mr Gopa Kumar (MD), with the kind of civil infrastructure growth the country is witnessing currently, the market size for electrical and data cable support systems should be at least $270 million and mostly catered to by unorganised players. French-India Acquisition: Electrical Engineering. French electrical-engineering and power-management company Schneider Electric, would acquire 74 per cent of Delhi-based Luminous Power Technologies for around 215 million Euros. Luminous which makes inverters and power storage systems targeted at home users as well as small and medium sized businesses generated revenues of 170 million Euros in the fiscal year that ended in March. ◄
► INFRASTRUCTURE Industry. The Delhi government has invested over $1.1 billion to develop three state-of-the-art industrial parks to promote non-polluting industries in the city. The move follows concerns expressed by a section of the government that Delhi was losing out on industries to satelite townships in the vicinity.The proposed facilities will provide viable solutions to entrepreneurs under one roof. The government has decided to invest on a knowledge park in Bapraula, on a multi-floor manufacturing centre in Ranikheda and is developing a modern industrial facility in Kanjhawala. Power. Siemens has won two orders from Power Grid Corporation of India Ltd (PGCIL) worth $86 million for turnkey 765/400kV substations at Angul and Jharsuguda, Orissa. Scheduled for commissioning by October 2012, these projects are expected to strengthen and enhance PGCIL’s transmission network and transmit bulk power over long distances with substantially reduced transmission losses. Solar Power. India is on track to produce 700 megawatts of solar power at a cost of $2.2 billion by December, ahead of an initial target for an ambitious plan that seeks to boost green power generation from near zero to 20 gigawatts (GW) by 2022. India's 20 GW solar plan is likely to attract overall investment of about $70 billion. Issued in 2009, the plan envisages India producing 1,300 megawatts (MW) by 2013, another up to 10 GW by 2017 and the rest by 2022. Space Technology. India has bagged multi-million dollar contracts to launch 12 foreign satellites in the lower orbit from its spaceport over the next two years. Of the 12 satellites, four are from Canada, two each from Indonesia and Germany and one from Luxembourg. The remaining three spacecrafts are from universities in Europe.◄
► INTERNATIONAL India-Germany. India has signed two memoranda of understanding (MoUs) with Germany for promotion of skill development in the country. The first MoU is between National Skill Development Corporation (NSDC) and iMOVE of Germany. The second is between ILF&S Cluster Development Initiative Ltd and Handwerkskammer Rhein-Main (Rhine-Main Chamber of
News/Business June2011Highlights(cont'd) Skilled Crafts). The MoUs were signed by Germany's Federal Minister of Education and Research, Dr Annette Schavan, and the Union Minister of Labour and Employment, Mr Mallikarjun Kharge India-Finnland. The IT department of Kerala and the Finnish government are looking at forging a strong partnership and collaboration to foster innovation and entrepreneurship. This comes in the wake of the bilateral discussion held by Technopark CFO KC Chandrasekharan Nair with Indian Ambassador to Finland Aladiyan Manickam during his visit to Finland. India-Canada. India, Canada eye $15 billion trade in next 5 years. Canada expects to create new business opportunities and partnerships in sectors such as clean technology, media and entertainment, tourism and higher education. The two countries are already negotiating a Comprehensive Economic Partnership Agreement (CEPA),
which would boost twoway trade and investments. India-New Zealand. India and New Zealand stand to gain through cooperation in a number of sectors including post harvest technologies, renewable energy, animation films and education, and the proposed bilateral free trade agreement could help forge business ties. India-Singapore. India and Singapore signed a protocol, amending the existing double tax avoidance pact between the two countries for effective exchange of information on tax matters. India-Uganda. As part of the $5-billion package Prime Minister Manmohan Singh announced for Africa last month, India will support Uganda in building a foreign trade institute at Kampala, the country’s capital. To be named India Africa Institute of Trade, it is slated to function through the aegis of the Indian Institute of Foreign Trade (IIFT)
in the initial years. “The idea will be to develop trade capacities in Africa, for international and intra-Africa trade,” said K Rangarajan, head, IIFT, Kolkata. ◄
► OTHER Cannes Lions. After some bronze and silver Lions, India has struck Gold at Cannes Lions. In the Media Lions category, Lodestar UM won a Gold Lion for Garnier. Maxus India won a Silver Lion for Tata Sky in the same category.◄
QUOTE OF THE MONTH
"In the United States, we aren't just watching India's rise as an economic power, we support it. We encourage it. And we want to help advance it" Treasury Secretary Timothy Geithner US Government
Indiatakesuniquepathtolowercarbonemissions With four times the population of the United States, an economy growing 8-9 percent a year and surging energy demand, India's race to become an economic power has propelled it to No. 3 in the list of top carbon emitters. India's greenhouse gas emissions will keep rising as it tries to lift millions out of poverty and connect nearly half a billion people to electricity grids. But it is also trying to curb emissions growth in a unique way, fearing the impacts of climate change and spiralling energy costs. The government is betting big on two market-based trading schemes to encourage energy efficiency and green power across the country of 1.2 billion people, sidestepping emissions trading schemes that have poisoned political debate in the United States and Australia.
In the world's first such national marketbased mechanism, called Perform, Achieve and Trade (PAT), India is starting a mandatory scheme that sets benchmark efficiency levels for 563 big polluting from power plants to steel mills and cement plants, that account for 54 percent of the country's energy consumption. The scheme allows businesses using more energy than stipulated to buy tradeable energy saving certificates, or Escerts, from those using less energy, creating a market estimated by the government to be worth about $16 billion in 2014 when trading starts. The number of Escerts depends on the amount of energy saved in a target year.
"The policy roadmap India is adopting to curb emissions is innovative -- something that will make industries look at making efficiency the centre-piece rather than some step that follows an ineffective carrot and stick policy," said Srinivas Krishnaswamy, CEO of green policy consultants Vasudha India.
LEARNING CURVE A three-year rollout phase is set to start in September and will help India curb about 100 million tonnes of carbon emissions, the government estimates. The rollout is aimed at working out hiccups in the process for companies to measure and report their energy use. India has already rolled out a renewable energy certificate (REC) trading scheme for wind, solar and biomass power plants. Green power comprises about 8 percent of energy production in India, while coal generates more than 60 percent, leading to a hefty coal import bill. Trading for the REC scheme, which currently occurs once a month, has picked up as more projects participate, underpinning a government plan to ramp up solar power from near zero to 20 gigawatts by 2022, about one eighth of power generation now. On May 25, a total of 14,002 RECs were traded during the REC trading session on the Indian Energy Exchange valued at $4.6 million, compared with 260 units at the previous session in April.◄
BilateralBusinessNewsandTradeReport Miba’s advanced powder metal technology and expertise is now available in India. Miba Sinter Group expands its global network with a manufacturing facility in India. The Joint Venture between Miba and Maxtech Sintered Product Pvt. Ltd. will provide Indian and International Car Manufacturers and Suppliers with high-tech sintered components. “The cooperation in India expands our global network and provides our customers with Miba’s technology and best possible support through local product development and production. With this investment, we want to foster our strength in innovation and competitiveness of our customers,” says Harald Neubert, CEO of the Miba Sinter Group. Miba will transfer its latest powder metal technology to Maxtech Sintered Product and will localize production of components currently imported to India from Europe. The first technology transfer and localization projects are already underway.
cranes. VCE Consult ZT-GmbH in Vienna has designed the 130 m high pylons on both sides of the valley which have to carry the cables for the two cranes capable of carrying a load of 20 tons each. Jochum Andreas Seiltransporte GmbH in Schröcken is responsible with his team for the installation of all cables (58 mm backstays on each side, 54 mm suspension cables and 30 mm traction cables). Finally Hans J. Gmeiner, GEMCO – Gmeiner Export Management & Consulting in Hohenems, is handling communication and all other issues related with this project between Afcons/CBPU, the Austrian companies and the supplier of the cable crane.
Indian interest in KTM increases. Leading motorcycle maker Bajaj Auto has increased its stake in an Upper Austrian company. The Indian company said it upped its interest in Austrian-based KTM Power Sports AG (KTM) by 1.21% to 39.3%.KTM has been cooperating with Bajaj Auto but is rejecting suggestions that the Indian firm could grab a majority interest.
New India-Austria Cooperation established. A cooperation under the leadership of Siemens VAI Metals Technologies GmbH, Austria, received a contract from JSW Projects Ltd. , a group company of JSW Steel Ltd. for the engineering and supply of a Corex gasbased Midrex direct-reduction (DR) dualdischarge plant. This new facility, which will have a nominal production capacity of approximately 1.2 million tons of hot and cold direct-reduced iron per year, will be erected at JSW Steel Ltd., located in Vijayanagar, Toranagallu, Karnataka State, India. The order value is a low three-digit million euro figure. Start-up of the new facility is scheduled for mid-2013.
Austrian Technology in world’s largest railway bridge in India. In Jammu & Kashmir, three Austrian SME’s will participate in the building of the highest railway bridge in the world as subcontractors for the supplier of the cable
La Ric Cosmetics in India. La Ric Kosmetik G.m.b.H. , who offer a unique Spa treatment program with a range of cosmetics and spa treatments developed by our experts with long standing experience in Ayurveda, Color therapy and
Trade Volume Report (in million EUR) India’s Export to Austria India’s Import from Austria
Aromatherapy, have successfully launched their exclusive range of products for the first time in India through their representative Robinville Intech Pvt. Ltd. Siemens VAI to set up new plant in India. Siemens VAI Metals Technologies, a world leader in technology for the iron and steel industry, will set up a new factory to make steel plant equipment in India. The 2.2-billion global major also hopes to rapidly increase its local headcount to 1,000 people and expand its service base in the country. Siemens VAI to deliver rolling mill for stainless-steel long products to India. Siemens VAI Metals Technologies is constructing a new rolling mill for stainless steel bar and light profiles in India for Viraj Profiles Ltd., the second largest producer of stainless steel long products in the world. The scope of the project includes the design, engineering and delivery of mechanical, electrical and automation equipment. Siemens VAI is supplying the complete rolling line as well as auxiliary equipment for the rolling mill. The rolling line consists of a single sliding-stand roughing mill, an eight-stand intermediate mill and a ten-stand finishing mill, including the shearing and transfer systems. All the rolling stands are based on Red Ring technology, and provide twist-free rolling. Quality is assured by the non-contact optical ProScan measuring system. A straightening and finishing area, containing machines for sawing, wrapping and strapping the rolling stock, completes the rolling line. ◄
Change 2010/2011 (%)
In the first quarter of 2011, India’s exports to Austria have recorded an increase by 20.8% y-o-y. This marks a significant jump in comparison to last two year’s marks for the same period, which had remained almost unchanged due to the global financial crisis. More than one fourth of India’s exports to Austria consist of apparel and clothing accessories. Exports for these items marked 25.5% growth yo-y in the first quarter. For the same period, Medical & Pharmaceutical products, which represent about 7% of total exports, have marked an increase by 40.8%. Exports of Electrical Machinery, representing about 8.5% of total exports, have increased by approximately 51%. The results are in line with the trend recorded in the previous months. On the imports side, the jump has been even higher, recording 48.2% increase in comparison to last year’s first quarter. The results indicate considerable recovery in comparison to last two year’s first quarters’ figures. Worth highlighting is the jump in the import of Manufactured Goods, mainly represented by a steep increase in imports of Iron and Steel by 287% in the period. The change might be seasonal and not directly imply a new trend, though.◄ July2011-India-AustriaNewsletter|5
PeterLoescher,GlobalCEO,Siemens 'Indiaisamajordriverforourglobalgrowth.' Peter Loescher, Global CEO of German giant Siemens, in India during Chancellor Angela Merkel’s visit, talks to Katya B Naidu about the company’s plans for India and speculation about the Indian subsidiary’s de -listing. Edited excerpts: Q: Are you happy with the growth of your Indian business? A: India is a major driver for our global growth. And, we expect the country to play a larger role in our global operations in the future. Looking at our last quarter, you can see that Siemens has increased both revenue and order intake in India. Compared to our second quarter in FY2010, our new orders, for example, climbed nearly 60 per cent to more than €800 million. This equals almost four times the growth compared to China or the US. And over the last five years, our order intake has grown over 50 per cent. Those are excellent results, but you can be assured: Siemens will not lean back now! Q: What growth areas are you are looking at? A: The mid-market segment has the strongest growth in India and other emerging countries. We want to benefit from this growth. Therefore, we will further invest in the development and manufacturing of products for this market. India will be a major hub for this. We have already more than 60 products in the pipeline here, and we
are confident that we will increase our business in this segment significantly over the next few years. Q: Does India rank high as an investment destination, too? A: Siemens has been in India for more than 100 years. From the very beginning up to today, we identified India as an important location for investment. This means Siemens looks at a long-term co-operation. We are here to stay! Just last year, we announced investment of €250 million over three years in India to expand our product portfolio for the mid-market segment and upgrade our factories in the country. Q: Siemens has filed an application to set up a non-banking finance company in India. Why do you plan to go into the business? A: As announced in March this year, we will set up a financial services arm in India, Siemens Financial Services. It will focus on developing an asset financing business by offering, for example, loans, leasing and other finance products for our energy, industry, healthcare and city customers. Q: Are you planning to sell your stake in Bangalore airport to GVK? A: We do not comment on speculation. Q: The parent company, Siemens, has been doing an open offer to raise the stake in the Indian operation. What was
the reason? A: We have invested around €1 billion and successfully raised our stake to 75 per cent just recently. This enables us to further develop our business in India. Q: There is also the rumour that you plan to delist Siemens’ Indian operations? A: We have no plans at the moment to delist our Indian operations. Q: Which areas do you see potential growth in India? A: Let me give you some examples. With an annual growth of six per cent, India will be one of the biggest markets for wind energy by 2020. We will be investing €70 million until 2012 to build a wind turbine factory for the Indian market, in Gujarat. Clean energy protects the climate and improves the people’s quality of life. Already today, environmental pollution is responsible for a fourth of all illnesses worldwide. Another solution is a hybrid bus that we have developed with our partner, Agrale, for São Paolo’s public transportation system. It reduces energy costs and CO2 emissions by up to 30 per cent and contributes to clean air. That is good for Siemens but also good for the customer, the environment and the people. (extracted from an Interview published by Business Standard on June 3, 2011)◄
IndiaisTop12ofwealthyinvestors:MerrillLynch-CapgeminiWorldWealthreport Private banks and local wealth management firms will have more affluent clients to serve in the coming years. India's population of HNIs (high-networth individuals) surged 21% to 153,000 in 2010, according to the Merrill LynchCapgemini World Wealth report. This is the second straight year in which India's HNI population growth has been among the top gainers, the report said. India pipped Spain to gain entry into the 'top 12 league' of countries which have highest number of rich people. "Indian HNIs continue to benefit from a robust economy and asset classes like equities and real estate," said Atul Singh, managing director
and head, Merrill Lynch Global Wealth Management-India.
HNWI wealth and population, second only to North America, the report said.
Relatively high GDP growth rates along with higher market capitalisation helped Indian HNIs to generate more wealth, Mr Singh said. While GDP grew over 9%, market capitalisation surged 24% to reach $1,631.8 billion at the end of 2010. Property prices rose 1.9% during the year.
" A s i a -P a c if i c' s co n t i n u e d st ro n g performance cements the region's strategic importance to every wealth management firm with global aspirations," said Pradeep Dokania, chairman, Merrill Lynch Global Wealth. In terms of asset allocation, HNIs have reduced their holdings in deposits and fixed income and switching back to the equities market. Allocation to equity assets have grown 33% in 2010, the report said. Global GDP growth to weaken to 3.2% in 2011 and 2012 due to emerging concerns such as high public debt levels and rising oil prices that are driving global inflation.◄
As per Merrill Lynch-Capgemini report, Asia -Pacific posted the strongest regional rate of HNI population growth in 2010. HNI wealth in Asia-Pacific gained 12.1% to $10.8 trillion, exceeding Europe's HNI wealth of $10.2 trillion in 2010. Asia-Pacific is now the second-largest region for both
Industry Sector Close-up
Pharmaceuticals India is one of the fastest-growing pharmaceutical markets in the world, and its market size has nearly doubled since 2005. The Indian pharmaceutical market is expected to reach US$ 20 billion by 2015, growing at a compound annual growth rate (CAGR) of 11.7 per cent during 2005–2015 and establish its presence among the world’s leading 10 markets. India is also the third-largest market in the world in terms of volume and fourteenth in terms of value. India accounts for 8 per cent of global pharmaceutical production. Indian firms produce about 60,000 generic brands across 60 therapeutic categories. In addition, Indian firms manufacture approximately 500 different active pharmaceutical ingredients (APIs). Manufacturing costs in India are approximately 35 to 40 per cent of those in the US due to low installation and manufacturing costs. Moreover, according to an Ernst & Young and industry body study, the increasing population of the higher-income group in the country, will open a potential US$ 8 billion market for multinational companies selling costly drugs by 2015. Further, IMS Health India, which tracks drug sales in the country through a network of nationwide drug distributors, estimates the healthcare market in India to reach US$ 31.59 billion by 2020.
Growth According to IMS Health, for the full year 2010, the Indian Retail Pharmaceutical Market was valued at US$ 10.2 billion, growing at 16.5 per cent over 2009. The pharmaceutical market has shown a strong growth for the second successive year. As per the estimates of the Ministry of Commerce, Government of India, a whopping amount of US$ 6.31 billion will be invested in the Indian pharmaceutical industry by 2015. Also, the pharmaceutical off-shoring industry is predicted to be a US$ 2.5 billion opportunity by 2012, due to the low cost of R&D in India. According to the All India Organisation of Chemists and Druggists (AIOCD), the pharmaceuticals industry in India will grow by over 100 per cent over the next two years. According to the research published by RNCOS titled 'Indian Diagnostic Market Analysis', the Indian diagnostic services are
projected to grow at a CAGR of more than 20 per cent during 2010-2012. Some of the major Indian pharmaceutical firms, including Sun Pharma, Cadilla Healthcare and Piramal Life Sciences, had applied for conducting clinical trials on at least 12 new drugs in 2010, indicating a growing interest in new drug research.
Government Initiatives 100 per cent foreign direct investment (FDI) is allowed under the automatic route in the drugs and pharmaceuticals sector including those involving use of recombinant technology. The Union Minister of Commerce and Industry and Minister of Trade and Industry, Singapore, have signed a ‘Special Scheme for Registration of Generic Medicinal Products from India’, which seeks to fasttrack the registration process for Indian Generic medicines in Singapore. The Government had also issued an expression of interest (EoI) for technical and financial bids for the selection of a global level consultant (GLC) for the preparation of a detailed project report (DPR) in order to develop India as a drug discovery and pharma innovation hub by 2020. The Drugs and Pharmaceuticals Manufacturers Association has received an in-principle approval for its proposed special economic zone (SEZ) for pharmaceuticals, bulk drugs, active pharmaceutical ingredients (APIs) and formulations to be located at Nakkapallimandal in Visakhapatnam district, according to a government press release. The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. The government plans to open 3,000 Jan Aushadhi stores, which sell unbranded generic drugs at heavy discounts to branded drugs, in the next two years.
Investment The healthcare sector has attracted growing investor support in 2010 with nearly a tenth of the total private equity funding going to this sector. In the third quarter the calendar year 2010, a total of US$ 2,047 million was invested across 88 deals, of which 9 per cent were healthcare deals, according to research firm Venture Intelligence. The potential of the rural pharmaceutical market in India has encouraged many MNCs to enhance their focus on this market. The drugs and pharmaceuticals sector has attracted FDI worth US$ 1,875.48 million between April 2000 and January 2011, according to data published by Department of Industrial Policy and Promotion (DIPP). Some of the major investment developments in the sector include: Chandigarh-based Ind-Swift Laboratories has received approval from the Japanese Government's pharmaceutical and medical devices agency (PMDA) for the supply of Pioglitazone and Risedronate Sodium from its manufacturing facilities at Derabassi in Punjab. Gurgaon will now be home to the country’s first state-of-the-art laboratory that will exclusively work to design an effective vaccine against the deadly human immunodeficiency virus (HIV).The Translational Health Sciences and Technology Institute (THSTI), an autonomous institute under the department of biotechnology (DBT), and the International AIDS Vaccine Initiative (IAVI), have signed an agreement to jointly establish, operate and fund this HIV vaccine design programme. Seven months after pulling out of the race for Singapore’s Parkway, Fortis Healthcare, India’s second-largest hospital chain, announced its first venture in Singapore, with a US$33 million acquisition of an under -construction specialised cancer hospital. Panacea Biotec has signed a non-exclusive marketing agreement with Uruguay's Laboratorios Clausen SA, allowing the Latin American firm to market the Indian company's organ transplant drug, Pangraf, in Europe.◄
Profile Big Players
RanbaxyLaboratoriesLimited(Ranbaxy) Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 46 countries, worldclass manufacturing facilities in 7 countries and serves customers in over 125 countries.
-disciplinary R&D centers at Gurgaon, in India, with dedicated facilities for generics research and innovative research. The R&D environment reflects its commitment to be a leader in the generics space offering value added formulations and development of NDA/ ANDAs, based on its Novel Drug Delivery System (NDDS) research capability. Ranbaxy’s first significant international success using the NDDS technology platform came in September 1999, when the Company out-licensed its first once-a-day formulation to a multinational company.
In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical powerhouse. The combined entity now ranks among the top 20 pharmaceutical companies, globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it will emerge stronger in terms of its global reach and in its capabilities in drug development and manufacturing.
In July 2010, Ranbaxy’s New Drug Discovery Research (NDDR) was transferred to Daiichi Sankyo India Pharma Private Limited as part of the strategy to strengthen the global Research and Development structure of the Daiichi Sankyo Group. While NDDR will now become an integral part of Daiichi Sankyo Life Science Research Center in India, based in Gurgaon, Ranbaxy will continue to independently develop and later commercialise the anti-malarial new drug, Arterolane + PQP, which is currently in Phase III trials. Ranbaxy will also explore the further development of late stage programs developed by NDDR in the last few years, including the development programs in the GSK collaboration. Within Ranbaxy, R&D of Generics will now get a sharper focus, as the Company is increasingly working on more complex and specialist areas. ◄
Ranbaxy was incorporated in 1961 and went public in 1973. For the year 2010, the Company recorded Global Sales of US $ 1868 Mn. The Company has a balanced mix of revenues from emerging and developed markets that contribute 50% and 44% respectively. In 2009, North America, the Company's largest market contributed sales of US $ 660 Mn, followed by Europe garnering US $ 272 Mn and Asia clocking sales of US $ 468 Mn. Ranbaxy views its R&D capabilities as a vital component of its business strategy that will provide a sustainable, long-term competitive advantage. The Company has a pool of over 1,200 R&D personnel engaged in path-breaking research. Ranbaxy is among the few Indian pharmaceutical companies in India to have started its research program in the late 70's, in support of its global ambitions. A first-of-its-kind world class R&D centre was commissioned in 1994. Today, the Company has multi Ranbaxy Laboratories Limited (Ranbaxy)
Address: Corporate Office Plot 90, Sector 32, Gurgaon -122001 (Haryana), INDIA Phone: +91- 124- 4135000 / Fax: +91-124-4135001 / Email: firstname.lastname@example.org / Web: www.ranbaxy.com
AdvancedEnzymeTechnologiesLimited Advanced Enzyme Technologies Limited is a Research driven
etc. Advanced Enzyme Technologies Ltd. aims to replace all
company having global leadership in manufacturing enzymes and
harsh drugs and chemicals used in treating healthcare as well as
probiotics and dedicated to Marketing eco-safe solutions to wide
industrial problems with eco-safe solutions using enzymes and
variety of Industries like Pharmaceuticals, Nutraceuticals, Animal
probiotics. Advanced Enzyme Technologies Limited
Healthcare, Baking, Agriculture, Waste Management, Textile,
awarded the "Emerging India" Award in the Life Sciences
Leather, Distilling, Grain Processing, Brewing, Juice Processing,
Category in 2009/2010.◄
Advanced Enzyme Technologies Limited Address: *Sun-Magnetica, "A" Wing,5th Floor, LIC Service Road,Louiswadi, Thane (W), 400 604 Phone: +91-22-4170 3200 / Fax: +91-22-25835159 / Email: email@example.com / Web: www.enzymeindia.com
TradeShows WHAT Expo on cutting edge research and technologies in the field of electric and plugin hybrid vehicles
WHEN August 10-12, 2011 WHERE New Delhi
MORE INFO www.greenautomobil.com
WHAT Exhibition on Agriculture, Farm Machinery, Equipment and Agri Processing Technology
WHEN September 09-11, 2011 WHERE Bangalore
MORE INFO www.agritechindia.com
WHAT Asia's largest gifts & handicrafts trade fair. 1800 exhibitors in 97,000 m2 of exhibition area
WHEN October 15-18, 2011 WHERE Greater Noida (UP), India
MORE INFO www.epch.in/IHGF
WHAT An International Trade Expo that offers Industry, Entrepreneurs & Corporate to showcase their vast potential.
WHEN December 1-5, 2011 WHERE Amritsar, Punjab
MORE INFO www.pitex.co.in/
ThenewwebportaloftheEmbassyofIndia,Vienna,isonline! Thie online portal is a gateway where you will be able to access the latest information and find links about a dynamic and rising India - its economy, culture and important developments. It shall also work as a tool to strengthen bilateral relations between India and Austria, ensure the welfare of Indians residing in Austria, as well as provide India-related information and services to the Austrian community. Among the many sections of the website, you will find:
Indian Visa Services
India-austria Business center
India-austria economic relations
Events photo galleries
Baggage import/export rules
The embassyâ€˜s chancery
Tourism State Profile
Goa Variously known as "Pearl of the Orient" and a "Tourist Paradise", the state of Goa is located on the western coast of India in the coastal belt known as Konkan. The magnificent scenic beauty and the architectural splendours of its temples, churches and old houses have made Goa a firm favourite with travellers around the world. But then, Goa is much more than just beaches and sea. It has a soul which goes deep into unique history, rich culture and some of the prettiest natural scenery that India has to offer. Much of the real Goa is in its interiors, both inside its buildings and in the hinterland away from the coastal area. Legends from Hindu mythology credit Lord Parshuram, an incarnation of Lord Vishnu with the creation of Goa. Over the centuries various dynasties have ruled Goa. Rashtrakutas, Kadambas, Silaharas, Chalukyas, Bahamani Muslims and most famously the Portuguese have been rulers PalolemBeach,Goa of Goa. Goa was liberated by the Indian Army from Portuguese colonisation on December 19, 1961 and became an Union Territory along with the enclaves of Daman and Diu. On May 30, 1987 Goa was conferred statehood and became the 25th state of the Indian Republic. Having been the meeting point of races, religions and cultures of East and West over the centuries, Goa has a multi-hued and distinctive lifestyle quite different from the rest of India. Hindu and Catholic communities make up almost the entire population with minority representation of Muslims and other religions. All the communities have mutual respect towards one another and their secular outlook has given Goa a long and an unbroken tradition of religious harmony. The warm and tolerant nature of the Goans allows them to celebrate and enjoy the festivals of various religions such as Ganesh Chaturthi, Diwali, Christmas, Easter and Id with equal enthusiasm. The state of Maharashtra borders Goa on the north, the state of Karnataka on the south and east. The vast expanse of the Arabian Sea on the west forms the magnificent coastline for which Goa is justly famous. Terekhol (Tiracol), Mandovi, Zuari, Chapora, Sal and Talpona are the main rivers which weave their way throughout the state forming the inland waterways adding beauty and romance to the land
besides being used to transport Goa's main export commodity of Iron and Manganese ore to Mormugao Harbour. Along the way to the coast these waterways form estuaries, creeks and bays breaking the sandy, palm-fringed coastline behind which lie the fishing villages among the coconut groves. Panaji (Panjim) is the state capital located on the banks of the Mandovi river and Vasco, Margao, Mapusa and Ponda are the other major towns. Goa is serviced by an international/national airport located at Dabolim near Vasco. An intra-state and inter-state bus network also plays an important role in getting locals and visitors alike in and around Goa. The vast green expanse of the Sahyadri mountain range ensures that Goa has an abundance of water. The sea and rivers abound in seafood - prawns, mackerels, sardines, crabs and lobsters are the most popular with the locals and the visitors. Along with English which is widely spoken all over Goa, Konkani and Marathi are the state languages. The national language Hindi is also well understood in most areas around the state. Goan cuisine is a blend of different influences the Goans had to endure during the centuries. The staple food in Goa is fish and rice, both among the Hindus and the Catholics. Unlike the Christian food the Hindu Goan food is not strongly influenced by the Portuguese cuisine. Since the arrival of the Hippies in the sixties, Goa has been a major destination on the itinerary of international and domestic tourists. The tourist season in Goa begins in late September and carries on hrough early March. The weather in these months is usually dry and pleasantly cool. Then the weather gets fairly hot around May and by end of June, Goa receives the full blast of the Indian monsoon with sudden downpours and tropical thunderstorms. However it is also during the monsoon that Goa is probably at its most beautiful, with greenery sprouting all around. Besides the natural beauty, the fabulous beaches and sunshine, travellers to Goa love the laid-back, peaceful, warm and friendly nature of the Goan people. After all, more than anywhere else on planet earth, this is a place where people really know how to relax.â—„ IndiaTourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 / Fax: +49 (69) 242949-77 www.india-tourism.com / firstname.lastname@example.org
India-relatedEventsinAustria BOLLYWOOD@MQ- ImPulsTanz Festival Opening Jul 13, 2011, 21:15 MuseumsQuartier Main Yard Bollywood star-Choreographer Terence Lewis and his company open this years’ ImPulsTanz festival with “Jhoom“. The show combines typical Indian Bollywood pop-choreography with Indian contemporary dance, and deals with extremities within Lewis home country and the culture industry, in which he is a star himself. Free Entrance!
All Kinds of Indian Food Intervention am Jausenexpress in Payerbach Hauptstraße 1, 2650 Payerbach More Info and Tickets at http://www.viertelfestival-noe.at July, 2 - 17:30-24:00 Mixed Vegetable Curry, Mudra Workshop and Film("Water")
July 16 - 17:30-24:00 Dahal Makhani, Vernissage "Made in India“ by Reinhold Kirchmayr and Film ("Magbool") July 23 - 17:30-24:00 Biggis Fashion Show, Muttar Paneer and Film ("Ashoka")
Did you know?Did you know?Did you know? The astronomical observatory at Hanle, Ladakh, has always made Indian scientists proud. The world's highest observatory, at an altitude of 15,000 feet, is remotely operated by the astronomers from Indian institute of astrophysics in Bangalore.◄
India, along with Brazil, has emerged as the most favored investment destination among the emerging markets pack in a survey of 30 bluechip fund managers from Europe. In the survey conducted by London Stock Exchange and Capital MSL, 23% of participants gave India and Brazil the most positive ratings with China in third place with 20%. Moreover, the '9th Annual European Attractiveness Survey' by Ernst & Young said:
India continues to be among the preferred destinations for FDI due to the country's high economic growth, with both Mumbai and Delhi being touted as among the cities likely to produce the next Microsoft or Google.◄
Published by the commercial section at the Embassy of India, Vienna. www.indianembassy.at Contact: email@example.com