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EMBASSY OF INDIA K채rntner Ring 2 A-1010 Vienna, Austria Tel.: +43 (0)1 505 8666 Fax: +43 (0)1 505 9219 Web: Email:


News Economy & Business December/2010 Highlights ► ECONOMY GDP. Encouraged by better than expected economic expansion of 8.9% during the July-September




government is likely to revise upwards its earlier GDP projection of 8.5% for the entire fiscal year. India„s real GDP growth in fiscal

Leather. With rise in exports to the US, the

agreement in January 2011. This shall

overall performance of the leather industry


has shown 17.94% growth in dollar terms

education and healthcare sectors in India.

during the first seven months of this fiscal period. The mark has touched $1.9bil in April-October against $1.65bil in the same period last year.






India-EU. India and the European Union will sign their much-delayed free-trade pact on goods, services and investment by early 2011, with the respective chief negotiators

year 2010-2011 is likely to be at 9.2%

Automotive. Car sales in the rapidly

meeting every month to fast-track the

according to the Centre for Monitoring

growing Indian market rose by 20.8% to


Indian Economy (CMIE) in its latest review.

161497 units in November as demand

Per-capita income. The Indian planning commission said the country„s per capita income would be doubled in nine years with

peaked in the festival season. Sales of trucks and buses, a key indicator of economic health, grew 18.3% y-o-y. Steel. The year 2010 seemed to have

The per-capita income at current prices

ended well for the Indian metals industry,

during 2009-2010 is estimated at $982p.a.

which saw a number of deals being

by 21.3% to $18bil in October over the year -ago period. In November, exports went up by 26.8% on a year-on-year comparison. The boost increases hopes that the $200biltarget for the current fiscal year will not only be met, but exceeded. PMI.




executed. Among others, the so-called historic take over of Ispat by Sajjan Jindalled





boosting economic ties with India in sectors like IT, gems & jewellery, non-conventional energy sources and education.

the economy expanding at current rates.

Exports. India„s merchandize export rose

Belgium. Belgium has evinced interest in


corporation into the largest private sector

Italy. India and Italy have agreed to sign a Memorandum




enhancing bilateral technical cooperation in road




sector Italian




companies in the highways sector in India.

steel manufacturer in India. Apart from big

New Zealand. New Zealand, which does

mergers, a significant among of JV during

business with India mainly in commodity

the year counted for the growth◄

and food export, is now looking to forge






companies in the IT and aviation sectors.

expanded at its fastest pace in six months

Russia. India and Russia have set a target

in November. The HSBC Markit PMI based

of more than quadrupling the bilateral trade

on a survey of 500 companies, rose to 58.4

to $20bil in five years. The two countries

from 57.2 in October.

identified pharmaceuticals, energy, IT &

bilateral trade by 2012, with the two

communication, chemicals & fertilizers and

countries vowing to deepen ties across all

banking & finance as thrust areas on trade

sectors and boost two-way investment.

and investment.

More than 100 French companies have

IMF. IMF„s MD Dominique Strauss-Kahn described India as a "leading power" and an "economic powerhouse" going by the performance of the economy.◄

target to double and achieve €12bil worth of

also comitted to put in €10bil in the next Singapore. India plans to deepen its

couple of years.

economic ties with Singapore as part of its

► INDUSTRY Growth. As many as 72 out of 127 manufacturing sectors are likely to close the April-December

France. India and France have set the





growth compared to just 56 such sectors in the same period last year. Agriculture. Agriculture GDP grows 3.8% in the first six months of the current fiscal year, against 1% in the year-ago period.

„Look East Policy“, with bilateral trade





expected to touch €1.7bil this year.

forward to strengthening its investments relationship with the private sector in the

China. India and Chinese companies have

field of agriculture in India.

signed 48 deals worth $16bil in diverse sectors, including power, during the visit of

Four-nation deal. India, Turkmenistan,

the Chinese Premier, Mr. Wen Jiabao.

Afghanistan and Pakistan signed two pacts on a gas pipeline project linking the four

Indonesia. India and Indonesia are likely to set the ball rolling for a bilateral free-trade

2 | January 2011 - India-Austria Newsletter


News December/2010 Highlights (cont'd ) ► BUSINESS

class facilities suited to the requirements of

Steel. India's largest iron ore producer,

the future economy of India.

NMDC, is set to sign a memorandum of

M&A. This calendar year has so far seen

understanding with Russia's third largest

869 deals (M&A, PE and QIP) in India

Airport. The Navi Mumbai International

valued at $56.4bil. The January-November

Airport (NMIA), when completely built, will

period in 2009 saw 516 deals worth $21bil.

be India's largest green-field airport project in terms of passengers handled, catering

Private Equity. India is likely to get over

annually to 60 million passengers by 2030.

$7bil in private equity investments in 2010, as robust economic growth is making the

Underground. CIDCO and the MMRDA

country an attractive market for fund

plan to build a metro rail connectivity

managers. PE investors may deploy nearly

between Mumbai and Navi Mumbai, the

$1bil in the Indian power sector in the next

eastern suburb of the city. The rail link is

six months. According to Power sector




decongest the growing traffic once the

companies are willing to increase private

proposed airport comes up in Navi Mumbai.




equity funding since most of the banks are close to maximum exposure to the sector.

necessary as










Karnataka. The deal, entailing an initial investment of $1 billion from Severstal, would mark the biggest Russian investment in the non-defence sector as also the first Russian investment in the steel sector. Logistics. State-run Shipping Corporation of India (SCI) is looking to spend around $3bil on expansion activities over the next three years. Green Cities. The government of Gujarat is mulling to take up a pilot project to







Renewable Energy has released $2mil to






pushing up clean and green concepts for


make Chandigarh a solar city. Besides, it

investments by individuals appears set to

has been announced that from 2011, all

cross the $1bil mark during the current

thermal power projects and transmission

Waste Energy. Green Homes Energy, a

financial year. During the first six months of

systems will be awarded on competitive

UK-based firm, along with Bangalore-based


tariff bidding and trading in renewable

Rushe Infratek has evinced interest in

energy certificate is set to start.








remittance by individuals went up by over 18% to around $565mil, compared to $477mil in the same period in 2009. Overseas



Energy. U.S. based renewable energy $2-3






overseas send more money back home

technologies to India during the next five

than any other country, remitting $50bil to


India in 2009. ◄



65 MW from 3,000 tons of garbage. The estimated cost of the project is €500mil and would required 6-10 acres of land. ◄

Energy. Sugar major Bajaj Hindusthan has committed investments to the tune of

► INFRA-STRUCTURE Indian infrastructure. Infrastructure is one of the most promising sectors of India and

€3.5bil in power projects to come up in Uttar Pradesh over the next 4 to 5 years.

with the booming telecom and IT industries,

Housing. Tata Housing has announced

Indian is expecting large growth levels.

expanding its presence in the affordable

Both private and public sectors have played

housing segment with the launch of a new

a very important role. Private companies

project at Vasind under the Smart Value

will have contributed about 36%, or about

Homes brand.The company is coming up

$186bil, to total infrastructure investment by

with 'New Haven' Hill Township project on

the end of the 2008-2012 five-year plan.

33 acres land. The project will offer 1,252

Ports. Major Ports of India have formulated perspective


waste. The company proposes to generate company, Astronfield plans to invest around


50 towns in the state.




transformation of these ports into world

For more economy and business news on India, visit

apartments including 2 BHK and 3 BHK homes starting at €25.000 with minimum size of approx. 60m2.

January 2011 - India-Austria Newsletter | 3

Focus Sector Close-up The Indian Automotive Industry The Indian Automotive Industry, comprising two segments, automobiles and auto components suppliers, is estimated to have ended FY09 with a total turnover of $45bil with automobile manufacturing comprising $36bil and auto component suppliers„ after-markets and exports accounting for $9bil. Almost all the major global players in the passenger vehicle segment are present in India and are expanding their capacities. Global commercial vehicle manufacturers are also entering the Indian market and are forming joint ventures with local players. India is the world„s second-largest two-wheeler market and fourthlargest commercial vehicle market and is expected to be among the top five passenger vehicle-producing countries by 2014. Component sources from India is slated to increase since most global vehicle manufacturers are setting up their purchasing offices in the country. Over the last three years, Indian suppliers have also actively acquired companies overseas to gain access to technology and new customers. India is expected to emerge as the world„s seventhlargest automobile market by 2016 and third-largest by 2030, behind only the US and China◄ Segment

Current State

Passenger Vehicles (PV)

During FY04-09, domestic sales increased at a CAGR of 11% (to 1.5 million units) while exports rose at a CAGR of 21% (to 0.3% million units) India is emerging as a manufacturing hub, especially for small cars (Hyundai Motors and Ford Motor export 36% and 58% of production , respectively). The country is emerging as a destination for automative R&D (Renault-Nissan, Honda, Maruti Suzuki). The sector witnessed the launch of the $2500 PV, Nano (new, ultra-low cost segment)

Commercial Vehicles (CV)

During FY04-09, domestic sales increased at a CAGR of 8% (to 0.4 million units) while exports grew at a CAGR of 20% (to 42.000 units). Sales witnessed steep declines (total sales falling by 22%) in FY09 due to slowdown in industrial activities and global financial crisis. The segment is undergoing a structural shift toward the smaller and light commercial vehicle category.

Sector Drivers Rising disposable income Wider dealer/financiers network Better connectivity by roads across the country Reduction in average ownership period New product launches Growth in the services sector and need to transport employees Growing economic activity Road and infrastructure development Increase in the overall freight and passenger movement, and in the share of road Growing acceptance of Indian CVs in the international market

The market is dominated by domestic players such as Tata, ALL, and M&M. Foreign players are increasingly entering through the JV route (Volvo-Eicher, Nissan-ALL, Mahindra-Navistar) Two-Wheelers

During FY04-09, domestic sales increased at a CAGR of 7% (to 7.4 million units) while exports rose at a CAGR of 31% (to 1 million units) Scooter segment has started to pickup again after two decades on the back of launch of gearless scooters Two wheeler manufacturers are increasingly focusing on rural markets

Rising disposable income Wider dealer/financiers netword Wider choice of offerings Rural markets

Indian leader, Hero Honda is the world„s largest two-wheeler company Over the past few years, there has been a marked shift toward performance driven two-wheelers. Auto Components

During FY04-09, turnover grew at a CAGR of 23% (to $19bil) while exports grew at a CAGR of 24% (to $3.8bil in FY09) Domestic players are increasingly adopting the inorganic route to expand globally. Out of 2500 players, 2000 are part of unorganized sector forming 30% of the total turnover The segment is witnessing an increase in technical/production alliances with global players Global OEMs and suppliers are increasingly outsourcing components (BMW, GM, VW, Volvo, Bosch)

4 | January 2011 - India-Austria Newsletter

Growing domestic automobile market Increasing replacement demand Rising exports/outsourcing demand for various processes by global OEMs

Trade Shows

International Engineering & Technology Fair 2011 IETF (International Engineering & Technology Fair), organised biennially since 1975, is the flagship event of the Confederation of Indian Industry (CII). The forthcoming fair - the 19th IETF 2011, is structured as a comprehensive B2B event, segmented into well-defined technological sections of the engineering & manufacturing industry. These sections are branded and represented by concurrent focused business fairs.The 19th Editon of international Engineering & technology fair is being held from 10th-12th February-2011 at Pragati Maidan, New Delhi, India

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

Focus of the Show: Manufacturing,Stainless Steel,Eco Products,Solid Waste Management,water,Corporate Country/ Pavilions,Part Mart and Auto Care Exhibitior's Profile: Buyer - Seller Meets, International Conferences and Seminars, Business Networking,Technology Assessments,Strategic Partnerships,Vendor Development. Visitior's Profile : CEOs / Decision-Makers, Buyers & Sourcing personnel,Technical Experts,Contractors,Consultants,Ministerial & Trade delegations from India & abroad, Diplomats, Government / PSU departments,Overseas & Indian Media

Companies, Technologists, Entrepreneurs, Project Developers, Renewable Energy Associations, Insurance Companies, 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

January 2011 - India-Austria Newsletter | 5

Article Doing business with 'Tashan' Help is at hand for Western business travellers who are confounded by some Indian words, as also by English words with their peculiar usage in India. from Pravasi Bharatiya, 08/2010

For Western business travellers flummoxed by words like “chalaan” (fine or tax), “tashan” (style), and “ishq” (romance) on a trip to India, help is at hand by way of an updated Indian-English online dictionary. Los Angeles based Amritt, Inc., a consulting firm advising businesses in North America and Europe in expanding into Asian markets, launched a revised and updated version of the popular resource with 64 new words to mark India‟s 64th Independence Day earlier in 2010. The entire dictionary which will now be home to over 700 Indian-English words is a complimentary offering available to the public on the Amritt, Inc. website: Indian words like Ishaq, tashan or challan are not the only words which confound the western “aam aadmi” (the common man, the average Joe), but there are some English words too with a peculiar usage in India. For example: ›

Annexure: appendix to a document

To do the needful: what needs to be done, “will do the needful”

To revert back: to respond, as in a letter or email

Intimate you: inform you

To pre-pone a meeting: move ahead of schedule

Many newly added words are about relationships and salutations like: “shri” (Mr.), “sahib” (boss/person in power), “maa” (mother) and “alvida” (goodbye). “The Indian-English lexicon is thriving on strong trade and commercial relations between the west and India,” said Gunjan Bagla, managing director of Amritt, Inc. “As India„s international trade continue to rise rapidly, we are happy to offer this resource complimentary to professionals and tourists alike”, he said. The dictionary is now the most visited content section of the Amritt, Inc. website, Bagla said. Over the last year traffic to the dictionary has doubled and average time spent by visitors has gone up by 50 percent. Whenever a visitor searches for a word that is not listed, an internal notation is made on the website; if enough people search for a term prevalent in India, it is added during the next update. This process makes the dictionary a living, contemporary resource. The Indian-English dictionary highlights the cultural cues picked mainly by US business people on their travels and phone interactions with the complex textures of India‟s multicultural society, Bagla said. “It also reflects how western businesses have come to appreciate the significance of personal relationships to Indian businesspeople.”◄

6 | January 2011 - India-Austria Newsletter

Profile Big Players Bharat Heavy Electricals Limited (BHEL) BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77 and is reference in more than 70 countries. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight service centres, 18 regional offices and one subsidiary enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres. BHEL has installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users. It supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). It supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. and it also supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network and over one million Valves to Power Plants and other Industries. BHEL has recently adopted a new policy of forming joint ventures and concluding technical tie-ups for venturing into newer areas of business such as nuclear equipment, wind energy, specialised grade steel, transmission, transportation and water treatment.◄ BHEL Contacts Address: BHEL House, Siri Fort, New Delhi, 110049 India. Phone: +91 11 66337000 / Fax: +91 11 26493021 / Web:

Emerging SME GPT Infraprojects Limited GPT Infraprojects Limited provides civil infrastructure construction services. It operates in two divisions: Sleeper and Infrastructure divisions. The Infrastructure division engages in civil construction projects that include railway, road, airport, irrigation, and urban infrastructure projects. The Sleeper division engages in manufacturing concrete sleepers and transferring concrete sleeper technology for railway systems in India and internationally. The company is headquartered in Kolkata, India. The company has received ISO 9001:2000 certification and has been lately awarded the “Most promissing SME - Infrastructure Sector” and “SME with the Global Reach” awards from the Emerging India Awards, India‟s biggest business award.◄ GPT Infraprojects Contacts Address: 'Jeewansatya' DD-6, Sector-I, Salt Lake City, Kolkata, 700064 India Phone: +91 33 40206450 / Fax: +91 33 40206430 / Web:

January 2011 - India-Austria Newsletter | 7

India in Austria Agenda January 2011

Good to know

General Gathering of the AustriaIndia Society January 21st, 2011 - 18:30 Börseplatz 3, 1010 Wien Registration required under, 0676 312 5736 or 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

Zauber der Sitar - Indian New Year‘s Concert January 15th, 2011 - 19:00 with: Alokesh Chandra - Sitar Gerhard Rosner - Tabla Eva Maria - Tanpura For more information:, 0676 312 5736 or

Coming Up

Types of companies Companies in India can be broadly classified as public and private companies. A company can be registered with its liability as limited or unlimited. In the former case, the personal liability of the members is limited to the amount unpaid on their shares, while in the latter case their personal liability is unlimited by a predecided nominated amount. A company can also be registered as a guarantee company. A comparative analysis of private and public companies in India:

Indian Events in Vienna In the second half of the month of March, 2011, the Indian Embassy in Vienna, together with Indian and Austrian partners, will be hosting a series of events in Vienna. Among these, there will be: › Indian Handicrafts Fair › Indian Food Festival › Indian Film Week › Indian Cultural Evenings › Seminars & Symposiums › B2B Meetings The B2B meetings will be focused on the Tourism and Handicrafts sectors. Interested parties should contact the commercial section of the Indian Embassy. Further information about the events shall be released soon.

The Indian Embassy wishes all its friends a prosperous and successful

»» 2011 «« Published by the commercial section at the Embassy of India, Vienna. Contact:

8 | January 2011 - India-Austria Newsletter

Minimum number of shareholders Maximum number of shareholders Minimum number of directors Maximum number of directors Minimum paid-up capital requirement in general (approx)













Managerial remuneration in private companies is payable without central government approval. In public companies, approval of central government required if remuneration is beyond the limits prescribed under the Act. It is important to know that there are certain requirements with regard to the name of an Indian subsidiary. In the event the subsidiary„s name contains the word "India" within its name, the minimum authorized capital needs to be €8500. Similarly there are certain restrictions for some other specific names used to incorporate an Indian subsidiary. The companies Act permit companies to issue two kinds of shares to its shareholders: equity shares (common stock) and preference shares (preferred stock).◄

India Newsletter 01.2011  

India Newsletter published by the commercial section at the Indian Embassy in Vienna.

India Newsletter 01.2011  

India Newsletter published by the commercial section at the Indian Embassy in Vienna.