Best Companies of South India

Biju Mathews biju.mathews@expressindia.com

The Jack of All The economy of the nation has survived turbulent seas, buoyed by the brilliant performance of the industrial sector which recorded consistent growth this year. This has been of great significance for the South, considering the large base of industrial and corporate houses in the region. The economic scenery is getting prettier by the day and the Indian enterprises can look ahead for a concrete foundation to start their financial upswing.

With immense commitment and foresight in their entrepreneurial instincts and management capabilities, the Southern enterprises have always hit the jackpot in business maturity, making the region the Big Jack of corporate India.

Inspired by the optimism and positive developments in the region, we at the Indian Express present this special edition titled “Best Companies of South India”, documenting the success of companies and their growth strategies in the last couple of years, especially when the market was under recession.

We sincerely hope you find this edition to be a resourceful guide that gives you valuable insight into the corporate world of the ‘promised land’ – the South Indian Region.

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Big Jack A Glance at the Jackpot Region of India BEING A POTPOURRI OF CULTURES, THE SOUTHERN REGION OF INDIA HAS PROVED TO BE THE

JACKPOT FOR MANY ESTABLISHED ENTREPRENEURS, START UPS AS WELL AS DIVERSIFYING ENTERPRISES. THE ECONOMIES OF THE

SOUTH INDIAN STATES

HAVE STEADILY GAINED STABILITY AND MOMENTUM OVER THE YEARS, AND MANAGED TO REGISTER HIGHER THAN NATIONAL AVERAGE GROWTH RATE OVER THE LAST FEW DECADES. THE DRASTIC IMPROVEMENTS IN THE SOCIO-ECONOMIC DEVELOPMENT OF

SOUTHERN

STATES HAS BEEN EVIDENT THROUGH THE SUCCESSFUL OPERATIONS OF MANY BUSINESS ENTERPRISES. HERE WE GIVE A GLIMPSE OF THE INDUSTRIAL REVOLUTION BROUGHT ABOUT

BY CORPORATIONS OF

SOUTH INDIA.

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fter gaining independence in 1947, the economy of the nation was put under a socialist framework with the government implementing strict control over private sector participation, foreign trade and foreign direct investments. From the 1960’s through 1990’s, South Indian economies experienced mixed economic growth. In the 1960s, Karnataka and Kerala achieved above average economic growth, while Andhra Pradesh’s economy declined during this period. Similarly, Kerala experienced economic decline in the 1970s while the

economies of Karnataka, Andhra Pradesh and Tamil Nadu consistently exceeded national average growth rates after 1970.

Karnataka experienced the highest positive differential in economic growth after the liberalisation of the Indian economy in 1991, while Andhra Pradesh, Tamil Nadu and Karnataka were noted by some to be more reform-oriented in terms of economic policy when compared to other Indian states. By the end of the millennium, the states of South India had announced their arrival as being the frontrunners of the Indian economy.

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Big Jack’s Advantage The kind of business interest and resulting investment that a state garners depends largely on the available resources, the incentives on offer, the regulatory and clearance system, and the installed infrastructure in the state. “Southern States have stable governments, investment facilitation by the state industries departments, frequent meetings with industry leaders and industry associations to sort out issues and to create new policies, and creation of 2010

industrial parks where land is available for businesses,” elucidates Kris Gopalakrishnan – CEO & MD, Infosys Technologies.

Smooth business operations would require skilled labour which is cost effective and has a market flexibility to go along with adequate raw materials and other resources. Tax exemptions and investment subsidies would attract investments which should be made available with reasonable financing; incentives should also be granted for foreign direct investments to boost the 9

SMOOTH BUSINESS OPERATIONS WOULD REQUIRE SKILLED LABOUR WHICH IS COST EFFECTIVE AND HAS A MARKET FLEXIBILITY TO GO ALONG WITH ADEQUATE RAW MATERIALS AND OTHER RESOURCES.

TAX EXEMPTIONS AND INVESTMENT SUBSIDIES WOULD ATTRACT INVESTMENTS WHICH SHOULD BE MADE AVAILABLE WITH REASONABLE FINANCING; INCENTIVES SHOULD ALSO BE GRANTED FOR FOREIGN DIRECT INVESTMENTS TO BOOST THE PROFITABILITY OF THE INDUSTRY.

profitability of the industry. The regulatory affairs of the state will also decipher the investment quotient of the state; industrial regulations, labour regulations and other government regulations should encourage the industry, while keeping firm rules and regulations through secure law and order.

Infrastructure will play a pivotal role as it will provide the supporting foundation to the industry; the infrastructure should comprise dependable power, water, roads, telecom, educational and medical facilities.

“South India has done much better than the national growth average and this has been a result of varied factors. The level of internal development has been much more focussed in the region. Be it power, infrastructure, education…you name it and the development is a lot focussed and result-oriented. Human resource is another huge asset of the region. The ambition of the parent to provide the best education to their children seems to be much higher. If you look at the demographics of the region, you see that there is more of an analytical bend of mind,” opines Shakti Sagar – Chairman of CII’s Andhra Pradesh chapter.

The states of South India have been successful in attracting business investments over the past decade as they have developed their infrastructure to efficiently utilise the resources that they have available employing good government industrial policies and creating an environment which is conducive for commerce. The key reasons for the emergence of the southern region is a well established strategy for exploiting the existing advantages like strong education base and availability of information technology support as well as developing a new approach to make the sector more competitive.

Industry, Tourism is an important advantage of Kerala and Puducherry is becoming one of the key centres for General Engineering, Auto Ancillary and IT-ITES. The main components of the industrial engine of the South Indian states are mentioned below:

Agriculture Nearly 50 percent of South India’s population is engaged in agriculture, which is largely dependent on seasonal monsoons.

Some of the main crops cultivated in South India include paddy, sorghum, pearl millet, pulses, sugarcane, cotton, chilli, and ragi.

Andhra Pradesh is the largest producer of rice in India, while Karnataka produces 70 percent of India’s coffee.

Since the liberalisation of the Indian economy, though South India had seen a decrease in revenue from agriculture and agriculture related services, the region was and still is the ‘promised land’ as far as spice cultivation is concerned. Areca, coffee, pepper, tapioca, and cardamom are widely cultivated on the Nilgiri Hills and Kodagu.

Education Education is highly valued in the south Indian community, and is seen as a gateway to a better liveli-

Big Jack’s Armoury The southern states have consistently scored high in the country on key economic and social indicators.

Tamil Nadu has a strong Manufacturing base especially in Auto and Auto Components, Karnataka is globally recognized as the Information Technology Hub, Andhra Pradesh’s strength lies in Biotechnology and Pharmaceutical 10

hood. Many of the nation’s most prominent physicists and mathematicians have been South Indians, with South Indian states providing the highest number of 2010

engineering and medical graduates. Kerala, while possessing a literacy rate above 98 percent also has the highest unemployment rates in India – which is probably a case of well-educated citizens not wanting to take up menial jobs.

Information Technology Information Technology is a growing field in South India; Bangalore is India’s Information Technology hub, and is home to over 200 software companies. It is often referred to as the Silicon Valley of India.

Hyderabad, also known as Cyberabad post the IT boom, with its Hitech City is also a key IT hub along with Chennai.

Sagar says, “I would say that the IT industry has definitely played the role of an anchor industry which has driven several other industries towards the growth path.

Multi-product SEZs are doing pretty well in the region and the count of such SEZs is increasing.” Additionally, the growth of information technology (IT) hubs in the region have spurred economic growth and attracted foreign investments and job seekers from other parts of the country.

Hyderabad and Bangalore the IT hubs of India are home to national and international software giants. Owing to the IT development, Tamil Nadu and Karnataka have attracted some of the highest total Foreign Direct Investment approvals in India over the past few years.

However, today, the state of Kerala is also emerging as a future IT centre of India, owing to its high internet connectivity (undersea cable landing points), along with skilled labour. The government has established two IT Parks in the state at Thiruvananthapuram and Kochi. The Technopark at Thiruvananthapuram is the third largest IT Park in Asia, and the largest in India.

The growth of the IT industry in South India was more of a boom and the industry has soared since the early years. The sector overcame industry challenges by investing in quality systems in the 1990’s which improved the predictability and scalability of operations and also created a global brand for the Indian IT services industry.

Biotechnology

“The IT services industry should continue to grow over the next several years” K GOPALAKRISHNAN, CEO AND MD, INFOSYS TECHNOLOGIES, ONE OF THE FOREMOST COMPANIES OF SOUTH INDIA SPEAKS TO AMAL TEWARI ABOUT THE REGION’S SUPERIORITY IN THE COUNTRY AND THE MAJOR FACTORS THAT HAVE CONTRIBUTED TO ITS EMERGENCE AS A STRONG ENTITY FOR NATIONAL DEVELOPMENT.

What factors can the success of South Indian states be attributed to?

Good government support and availability of talent are the two factors that contribute to the success of South Indian States.

According to you, what were the main challeneges faced by companies and how did the industry overcome the same?

The IT industry invested in quality systems in the 90’s. This improved the predictability and scalability of operations. This also created a global brand for Indian IT services industry. Second, the IT services industry adopted global best practices in Finance & Accounting, HR, facilities by creating campuses etc.

After 2000, the industry diversified into other services like consulting, infrastructure management, systems integration, BPO etc. so as to create an end-to-end delivery capability. This also allowed the industry to grow significantly. Simultaneously, the industry also created global delivery capabilities outside India.

Post the economic meltdown, what kind of role does IT play in the near future for companies in South India?

The IT services industry should continue to grow over the next several years. Technologies like cloud computing, sensor networks, and pervasive and mobile computing will require further investments in IT. Many of the large challenges facing man like climate change, sustainability, improving healthcare, providing quality education in remote areas, selling into developing country markets etc. will also require investment in IT. These will drive growth of the IT services industry. ❑

After establishing itself as an IT and BPO hub, Karnataka successfully attracted the Biotechnology industry. Following by ex2010

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THE GROWTH OF THE IT INDUSTRY IN SOUTH INDIA WAS MORE OF A BOOM AND THE INDUSTRY HAS SOARED SINCE THE EARLY YEARS. THE SECTOR OVERCAME INDUSTRY CHALLENGES BY INVESTING IN QUALITY SYSTEMS

1990’S WHICH IMPROVED THE PREDICTIN THE

ABILITY AND SCALABILITY

ample was Andhra Pradesh, with its own IT boom and then an ever growing market for pharmaceuticals and biotechnology.

Accounting for one-third of the national production of bulk drugs, Hyderabad the state capital of Andhra Pradesh, is the hub of the bulk drugs industry. Andhra Pradesh produces a majority of 500 basic drugs produced in the country and is ably supported by government infrastructure.

Life Sciences institutions and Centres of Excellence such as the Indian Institute of Science, National Centre for Biological Science, and Jawaharlal Nehru Centre for Advanced Scientific Research etc are present in Karnataka, creating a rich research base.

OF OPERATIONS AND

Manufacturing Industries

ALSO CREATED A GLOBAL

Chennai houses the automobile manufacturing giants in the country. More than 65 percent of vehicles produced in the country, such as cars, buses, trucks, trains and bicycles, are produced in Chennai, and it is referred to as the ‘Detroit of South Asia’.

BRAND FOR THE INDIAN

IT SERVICES INDUSTRY.

The manufacturing units of BMW, Flextronics, Motorola, Dell, TVS, Mitsubishi, Ford, Hyundai, Nokia and Saint Gobain are some of the international players in Chennai.

Chennai ranks first in producing heavy vehicles.

Madurai region in Tamil Nadu is the source of nearly 35 percent of India’s cotton production. Erode and Tirupur, collectively known as the ‘Textile Valley of India’ are the largest producer of cotton vests in India; it exports much of its production to South East Asian countries. Coimbatore has been termed the ‘Cotton City’ and Erode, the ‘Textile City’ of India; Erode is also known as the ‘Turmeric City’, since it holds Asia’s largest market for Turmeric.

Traditionally, Tamil Nadu and Karnataka have been home to large, public sector industries (referred to as Public Sector Undertakings or PSUs), with both states posting above average growth rates in this sector following economic liberalisation.

Chennai, accounts for about 35 percent of India’s overall automotive components while the registered headquarters of 42 percent of all Central PSUs in South India are located in Karnataka.

Tourism The states of South India are all major tourism hubs in their own rights. The states of Andhra Pradesh, Karnataka, Tamil Nadu and Kerala are rich in heritage, religion, wildlife and nature, and provide tourism aspects of each genre.

Andhra Pradesh tops in India’s domestic tourism arrivals owing mainly to the holy temple town of Tirupati, and Puducherry provides a ‘Goa like’ experience on the east coast. Karnataka and Tamil Nadu offer picturesque beaches and temples, and Kerala’s tag of ‘God’s own Country’ speaks for itself.

Even with its tourism and wellness resources, though Kerala lags behind many of the Indian states in terms of production and per capita income, in terms of Human Development Index and life standard of the people, Kerala is ahead of most other states in India.

Kerala lags behind many of the Indian states in terms of industrialisation; but has got enormous intellectual capital which enables a lion’s share of keralities to be employed overseas and hence in terms of quality of life per capita income and standard of living it ranks first in the country.

This peculiar paradox is often termed as the “Kerala Phenomenon” or Kerala model of development by experts.

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Big Jack’s Performance Though the recent global economic meltdown has had its adverse effects, the region has still held its ground in the Indian industry. Compiled from the CII’s Deccan Despatch, here is a look at the performance of the Southern states region relative to the country.

Information Technology Though the global recession slowed the industry down during 2008-09 as the international markets dried up, especially for information technology, the software exports from around the nation still grew by 21 percent, registering Rs.2,22,360 crore for the period as compared to Rs.1,84,140 crore from 2007-08.

The performance of the Southern states has been exceptional, and since the states are home to most of the IT sector, they contributed a major chunk of the software exports.

Karnataka registered exports worth Rs.74,929 crore in 2008-09, an increase of 23 percent from the Rs.60,800 crore witnessed in 2007-08, and had an overall share of 34 percent in the total software exports of the country.

Andhra Pradesh has recorded steady growth rate of exports achieving 24.5 percent growth over last year’s exports, against the tentative national average growth rate of around 21 percent.

The state has proved to be among the major IT/ITES growth centres in the country. The exports of the IT/ITES industry from the State for the year 2008-09 is Rs.32,509 crore, compared to previous year’s exports of Rs.26,122 crore. For the year 2008-09, Tamil Nadu increased its software exports from Rs.28,426 crore in the previous year to Rs.36,680 crore, managing a growth of over 28 percent.

Pharmaceuticals and Biotechnology The Pharmaceuticals and Biotechnology sector grew by around 7.5 percent in H1 FY 2010 as compared to H1 FY 2009.

For the companies headquartered in the Southern region, the growth rate was around 9.1 percent during this period.

Profit growth was around 37.8 percent for the Southern and 22.3 percent for the 2010

overall industries. Fall in power and fuel costs as well as net interest were the key reasons for the marginal improvement in profitability of the industry. The sales growth in FY 2009 was around 14 percent for overall industry and about 18 percent for the Southern industry.

The Southern region is emerging as a preferred investment hub for the pharmaceutical and biotechnology industries in terms of companies headquartered by region. This investment hub had been traditionally located in the Western and Central regions, and has now shifted base down South. Over the last two decades, Karnataka has established itself as a centre for biotechnology. Tamil Nadu and Puducherry have more traditional pharmaceutical companies, while Kerala is a globally recognised Ayurveda centre. Among all Southern states, Andhra Pradesh leads with a number of well established companies, both large and small scale. The industry mix includes traditional pharmaceuticals and modern biotechnology companies.

State wise investments announcements for the southern region in pharmaceuticals and biotechnology indicate that there are many planned or under construction projects with an estimated cost of at least Rs.43,613 million.

THE PERFORMANCE OF THE SOUTHERN STATES HAS BEEN EXCEPTIONAL, AND SINCE THE STATES ARE HOME TO MOST OF THE

IT SECTOR, THEY

CONTRIBUTED A MAJOR CHUNK OF THE SOFTWARE EXPORTS.

K ARNATAKA

REGISTERED EXPORTS

RS.74,929 CRORE IN 2008-09, AN INCREASE OF 23 WORTH

PERCENT FROM THE

RS.60,800 CRORE WITNESSED IN 200708, AND HAD AN OVERALL SHARE OF 34 PERCENT IN THE TOTAL SOFTWARE EXPORTS OF THE COUNTRY.

Textiles and Cotton The Indian Textile & Cotton industry reported a significant deterioration in financial performance during 2008-09 because of various factors. However, there seems 13

“We had to change mindsets and get people to open up to the idea of biotechnology” DR. KIRAN MAZUMDAR-SHAW, CHAIRMAN & MANAGING DIRECTOR OF BIOCON SPEAKS TO AMAL TEWARI ABOUT THE EMERGENCE OF THE SOUTHERN REGION AND THE FUTURE PROSPECTS THAT IT HOLDS. Please comment on the giant steps taken by South Indian states with regard to corporate and industrial development over the past years.

Southern states have succeeded in creating vibrant industrial hubs around specific knowledge-based and high-technology industries.

Karnataka’s electronics, IT and science-based industries such as biotechnology, defence and aeronautics, Tamil Nadu’s automotive and engineering industry, and Andhra Pradesh’s pharmaceutical industry are the result of focused development plans that have helped foster corporate and industrial growth here.

In your opinion, what have been the cornerstones of success for the South Indian states?

The region has a large number of engineering and medical colleges as well as world-class research facilities. Focused IT and biotechnology policies, seamless communication facilities and, to an extent, a salubrious climate conducive for industrial growth have also helped; not to mention progressive state governments and a relatively stable political environment that have played a prominent role.

to be an improvement from Q4 FY 2009, attributable to a decline in input costs.

During Q2 FY 2010, listed companies with registered offices in the Southern Region reported a 15 percent year-on-year increase in Operating Income. On a quarter-on-quarter basis, Operating Income growth has been positive for the past four quarters, as there were signs of restocking following the sharp decline in sales during late 2008.

Although Operating Income increased 15 percent year-on-year in Q2 FY 2010, raw material costs increased yearly by 16.3 percent in Q2 FY 2010, which was attributable to increases in prices of both natural and synthetic materials.

However, the higher increase in raw material costs has been accompanied by a decline in other costs. The industry reported an operating profit of Rs.1.7 billion in Q1 FY 2010, followed by Rs.2.08 billion in Q2 FY 2010. While operating margins improved from 8.5 percent in Q1 FY 2010 to 10.1 percent in Q2 FY 2010, net margins improved from -3.8 percent to -0.7 percent. For the next few months, sales and profitability could improve as some fabric and garment production units have reported a recent modest pick-up in international demand.

Automobiles During Q2 FY 2010, all India Auto Sector net sales increased 20 percent on year-on-

Being a prominent player in Biotechnology, what were the main challenges faced by you, especially during the recession period?

When we started out more than two decades ago, not many had heard of biotechnology. Therefore, our initial hurdles were typical of the challenges any pioneering company faces. We had to change mindsets and get people to open up to the idea of biotechnology, – that too in the pre-liberalization era. Moreover, we faced severe infrastructural and funding challenges. But we were determined to succeed and built a good team and research facilities.

While export-driven industries like garments have been affected, the recession’s impact on companies like Biocon, is low. This is because the healthcare sector is not typically impacted by economic cycles unless individual companies are highly leveraged. ❑ 14

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year basis, compared with 7 percent y-o-y in Q1 FY 2010.

209 percent on year-on-year basis in Q2 FY 2010.

The decline in sales had led to a sharp fall in the net profit for the auto companies in FY 2009 but these have more than doubled in Q2 FY 2010 compared to Q2 FY 2009. Net profit margin has increased to 10.1 percent in Q2 FY 2010 compared to 8.7 percent in Q1 FY 2010, and 4.7 percent in Q2 FY 2009. For the southern region, net margins have improved from 0.2 percent in Q1 FY 2010 to 3.4 percent in Q2 FY 2010. The lower margins and poorer financial performance for the Southern region is largely because of the dominance of Commercial Vehicle companies in the sample of listed companies.

Net profit margin improved marginally to 6.8 percent in Q2 FY 2010 compared to 6.4 percent in Q1 FY 2010, while the same for the southern region improved to 7.7 percent in Q2 FY 2010 compared to 7.4 percent in Q1 FY 2010.

Auto Ancillaries During FY 2009, the all India Auto Ancillary sector net sales grew by 5.2 percent compared to the previous year, while they have declined from the previous year by 1.4 percent in H1 FY 2010. However, net profits and margins have improved substantially in FY 2010 primarily because of higher operating margins. While all India net profits increased yearly by 208 percent in Q2 FY 2010; net profits for listed companies in the Southern region increased by

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Big Jack’s Support The post-WTO agreement emphasised thrust on innovation and new processes, which the state governments in the South had been able to recognise and implement early on. There has been good cooperation between government and industry, with each supporting the other comprehensively.

The governments have provided for policies that are conducive to doing business, cluster approach and infrastructure support to attract investments. This has resulted in path breaking performances from the Southern region’s industries and has helped in strengthening the foundations of the Indian market – a key factor that helped the Indian economy stay afloat during the global financial meltdown. ❑

DURING Q2 FY 2010, ALL INDIA AUTO SECTOR NET SALES INCREASED 20 PERCENT ON YEARON-YEAR BASIS, COMPARED WITH 7 PERCENT Y-O-Y IN Q1 FY 2010. THE DECLINE IN SALES HAD LED TO A SHARP FALL IN THE NET PROFIT FOR THE AUTO COMPANIES IN

FY 2009 BUT

THESE HAVE MORE THAN DOUBLED IN

Q2

FY 2010 COMPARED TO Q2 FY 2009

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The Southern Stars

Four states form the key business destination of the Southern region of India. Each has its own strengths and weakness. We look at what they form together in terms of economic power.

Andhra Pradesh The state has come a long way from simply being an agrarian society; the infotech and biotech industries have developed rapidly and taken the state’s economy to new levels. Andhra Pradesh provides an environment conducive for the growth of knowledge-based industries and has become a leading IT and biotech hub, with a large number of Multi National and Indian companies in these two sectors having their development and R&D centres in the state. 71 out of 500 top global corporations are present in Andhra Pradesh; the state offers a wide range of ďŹ scal and policy incentives for businesses under the Industrial Investment Promotion Policy 2005–10 along with well drafted sector policies.

Gross Domestic Product The gross state domestic product (GSDP) was USD 42 billion at constant prices for 2007-08. The GSDP at 16

constant prices grew close to 11 percent during the period 2007-08. The growth in GSDP at constant prices averaged 8 percent for the period 2003-08. The state is looking at an annual economic growth rate of 9 percent during the Eleventh Five Year Plan (2007-2012).

The per capita net state domestic product (NSDP) was USD 700 at current price for 2007-08. The per capita NSDP at current price grew close to 15 percent during 2007-08. The growth in the per capita NSDP at current price averaged 11 percent between 2003 and 2008.

The growth rates registered in NSDP were 21 percent in agriculture and allied activities; 12 percent in industry; and 15 percent in services sector for the year 2007-08. The per capita income of the state at current price was USD 890.5 during 2007-08, as compared to USD 826.5 for the country for the same period.

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Industry Sectors Information Technology Andhra Pradesh witnessed a steady growth in IT exports, recording a 24.5 percent growth against the national average of 20.65 percent in 2008-09. Total exports showed a comparable performance with USD 5.06 billion in 2008-09 against USD 5.6 billion in 2007-09; the slight dip owing to the global recession.

Expanding infrastructure saw the number of IT and ITeS companies registered under Software Technology Park (STP) scheme growing to 69 including 9 foreign companies.

The state attracted investments in excess of USD 100 million of which investments from foreign companies were between USD 2-3 million as on July, 2009. Under the SEZ Scheme total investments were to be around USD 800 million as on July 2009, resulting in employment generation by the IT sector growing by 12,768 (STP and SEZ units) in 2008-09.

Despite the economic slowdown, total employment generated by IT and ITeS industry in the state had increased from around 239,000 in 2007-08 to about 251,000 in 2008-09.

Pharmaceuticals and Biotechnology Accounting for one-third of the national production of bulk drugs, the state capital Hyderabad is the hub of the bulk drugs industry. Andhra Pradesh produces a majority of 500 basic drugs produced in the country. The market size of the sector in AP was positioned at over USD 450 million and accounted for 18 percent of the total Indian Biotech industry for the year 2008-09.

Since the year 2002, when the biotechnology industry really took off, Andhra Pradesh has witnessed an investment of over USD 220 million. This investment is justified by the fact that from the total biotech revenue of nearly USD 1100 generated by companies in South India, the biotech industry in AP accounts for over 40 percent. For 2007-08, Nuziveedu Seeds and India Immu were the top two companies in AP and accounted for a quarter of the total revenues of Indian biotech.

The state‘s capital recently became home to two new premier research institutes - Centre for Stem Cells Research and National Animal Resource Facility for Biomedical Research. The first phase of establishing these centres of excellence was carried out with an investment of USD 60 million. The state is also establishing a first of its kind Biotechnology Incubation Centre - as a joint initiative of the Government of Andhra Pradesh and the Government of India with an investment of USD 7 million.

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Textiles and Cotton The state is a leading producer of cotton registering an increase of 8.6 percent over 2007-08, with an annual average production base of about 227 million bales in 2008-09. Medium grade and superior long staple varieties of cotton are predominant in the state, which are processed by over 80 spinning mills including a number of completely export-oriented units with state-ofthe-art machinery, producing cotton, synthetic and blended yarns.

There are over a thousand weaving units with a production capacity in excess of 750 million metres of fabric per annum. The state has, moreover, emerged as a large textile processing centre with over 100 units set up in the state with a processing capacity of nearly 13 million metres of cloth per annum. The number of power looms in the state aggregates to over 40 thousand power looms employing approximately 1 lakh workers.

Andhra Pradesh has identified apparels, fabrics and furnishings as commodities with good growth potential and aims to achieve USD 6 billion in total textile exports and USD 2 billion in handloom exports per annum by the end of 2010. The state aims to increase its domestic contributions for apparels and textile products to almost USD 5 billion. The domestic sales of the state are expected to be around USD 3 billion per annum by 2010 and the expected growth in the sector is slated to generate an additional employment for 1.5 million people by the end of 2010.

ANDHRA PRADESH WITNESSED A STEADY GROWTH IN IT EXPORTS, RECORDING A 24.5 PERCENT GROWTH AGAINST THE NATIONAL AVERAGE OF

20.65 PERCENT IN 2008-

09. TOTAL EXPORTS SHOWED A COMPARABLE PERFORMANCE WITH USD 5.06 BILLION IN 2008-09 AGAINST USD 5.6 BILLION IN 2007-09; THE SLIGHT DIP OWING TO THE GLOBAL RECESSION. EXPANDING INFRASTRUCTURE SAW THE NUMBER OF IT AND ITES COMPANIES REGISTERED UNDER SOFTWARE TECHNOLOGY PARK (STP) SCHEME GROWING TO 69 INCLUDING 9 FOREIGN COMPANIES. 17

Agriculture and Horticulture As a result of the Jalyagnam scheme of the government that has provided irrigation to dry areas of the state, the agricultural sector has witnessed a growth of 7.5 percent over the last five years and the total crop area has been increased to 12 million hectares by 2008-09. A variety of agro-climatic conditions in the state make it conducive for growing a variety of horticulture crops such as fruits, vegetables, spices, tuber crops, plantation crops and floriculture. The state is the largest producer of rice in India and termed ‘the rice bowl’ of the nation. It is a leading producer of cash crops such as tobacco, groundnut, dry chilly, turmeric, oilseeds, cotton, sugar and jute and is the second-largest producer of horticulture products in India; production is expected to reach 22.90 million tonnes by 2020.

state leads in the IT industry and is the science capital of India producing largest number of doctors, engineers and medical technicians in the country, making it a preferred destination for multinational corporations with a presence of more than 150 companies.

The state produces some of the finest varieties of mangoes, grapes, guavas, papayas and bananas. It is the number one producer of sweet lime, lime, papaya, chilly, turmeric and palm oil, and the second largest producer of tomato and coriander, third for pomegranate, fourth for tapioca, lady finger and grapes, and fifth for onions. The state aims to attract investments of around USD 17 billion by 2010 to achieve the growth envisaged for the agricultural sector, with total investment of around USD 39 billion upto the year 2020.

The total GSDP (Gross State Domestic Product) of Karnataka at current prices was about USD 58 billion for the period 2008-09. GSDP growth of 5.5 percent was recorded in the same yearly period. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states, with per capita income being USD 770 during 2007-2008. With a GSDP amounting to USD 31 billion (55 percent of total), the tertiary sector contributed the most, followed by the secondary sector contributing USD 17 billion (29 percent) and the primary sector‘s contribution amounting to USD 9 billion (16 percent) in 2008-09.

Tourism With tourist attractions such as Charminar, Golconda Fort, and Ramoji Film City; Araku Valley and Borra Caves; Tirupati Balaji Temple, and Puttaparthi Saibaba; and the beaches of Vizag, the state offers attractive investment opportunities to developers and investors in the tourism sector. The state ranks first in domestic tourist arrivals owing to the millions of pilgrims visiting Tirupati.

Accounting for a 5 percent share, the state ranks seventh in international tourist arrivals in the country.

The state government has facilitated 68 projects with a total investment of over USD 350 million over the past four years, with the private sector commissioning as many as 88 projects worth nearly USD 200 million. Nine projects have been sanctioned for the State by the Ministry of Tourism during 2008-2009, at a project outlay of USD 20 million.

Karnataka The state that brought about the IT revolution in the country and is also one of the frontrunners in biotechnology has among the highest foreign direct investment (FDI) inflows in the country. The overall investments and conversion ratios in the state have been high owing to skilled workforce for knowledge-based industries and other processing sectors, strongly backed by technical/medical and research institutes with efficient industry interface. The 18

Gross Domestic Product Karnataka’s contribution to the country‘s GDP has been around 5.5 percent, with the state accounting for 70 percent of coffee production and 70 percent of silk production in India. Karnataka also produces over 20 percent of India’s electronic hardware and is a major apparel sourcing centre with exports worth USD 700 million.

Industry Sectors Information Technology Though Bengaluru (Silicon Valley of India) is the Mecca of the Indian IT industry, Karnataka has been developing new information technology destinations and increasing its IT prowess. Mysore now has 49 STPI registered companies which together exported technology worth USD 185 million during 2006-07; a 250 percent growth against the exports in 2004-05. 24 STPI registered companies managed exports of USD 165 million from Mangalore, while Hubli had 13 STPI registered companies with exports of about USD 2 million in the period 2006-07.

Biotechnology With India‘s largest biotech company, Biocon, based in Bengaluru, Karnataka is home to more than 50 percent of all biotechnology related companies in India. Bengaluru‘s biotech companies maintained a 35 percent growth rate with an investment of USD 250 million in 2007-2008.

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Bengaluru‘s bio-cluster alone has 200 diverse companies, and Karnataka has nearly 7000 scientists involved in biotech research.

Life Sciences institutions and Centres of Excellence such as the Indian Institute of Science, National Centre for Biological Science, and Jawaharlal Nehru Centre for Advanced Scientific Research etc are present in the state, creating a favourable institutional framework with a Vision Group on Biotechnology to advise government on policy issues and 17 task forces for biotech related areas.

The Karnataka government plans to set up a 15-acre NanoPark in Bengaluru with investments of USD 25 million in the first phase of a two-phase nano-centre for research in nanotechnology.

Infrastructure development in the state includes Bangalore Helix, a world class Biotech Park being developed under a public private partnership, involving an investment of over USD 20 million. Three SEZs for biotechnology are also being developed – two in Bengaluru and one in Mysore, while one SEZ spread over 700 acres for pharma and biotech is being conceptualised at Hassan.

Engineering Industry The presence of PSUs, large and medium private units and widely dispersed small scale units give Karnataka its strong engineering base. Engineering exports increased from over USD 240 million in 2002 to over USD 500 million in 2005 and constitutes about 4 percent of exports from the state. Bharat Earth Movers Ltd, Hindustan Machine Tools Ltd and Bharat Heavy Electricals Ltd, are among the leading companies in this sector in the state.

WITH AS MANY AS 300 LEADING INTERNATIONAL COMPANIES, K ARNATAKA IS A LEADER AMONG INDIAN STATES IN THE ELECTRONIC AND TELECOMMUNICATIONS INDUSTRY. EXCELLENT TELECOM INFRASTRUCTURE WITH 140 OUT OF 170 TOWNS CONNECTED BY OFC NETWORK, PROVIDES FOR THE SEVERAL PUBLIC SECTOR ELECTRONICS COMPANIES AND DEFENCE RESEARCH INSTITUTIONS BASED IN THE STATE. TO ENHANCE ITS HARDWARE EXPORT MARKET, THE

HARDWARE TECHNOLOGY PARK OF 1,200 ACRES AT DEVENHALLINEAR INTERNATIONAL AIRPORT AND ALSO ONE AT MYSORE. STATE HAS PROPOSED A

2010

Telecommunications and Electronics With as many as 300 leading international companies, Karnataka is a leader among Indian states in the electronic and telecommunications industry. Excellent telecom infrastructure with 140 out of 170 towns connected by OFC network, provides for the several public sector electronics companies and defence research institutions based in the state. To enhance its hardware export market, the state has proposed a Hardware Technology Park of 1,200 acres at Devenhallinear International Airport and also one at Mysore.

Automobile and Auto Components 10 of the 200 auto ancillary firms in India are based in Karnataka, resulting in a lively auto industry with investments of over USD 710 million and annual turnover of about USD 490 million. To boost the sector, the state government has set up Auto Parks at Bidadi, Bengaluru, Shimoga and Dharwar housing automobile ancillary and servicing units.

General Motors has invested USD 20 million to set up a technical centre in Bengaluru. Toyota, Volvo, TVS Motors have set up vehicle manufacturing units in Karnataka, which has led to the growth of ancillary units involved in manufacturing tyres, bearings and other auto spare parts in the Bengaluru – Hosur region.

Textiles and Cotton As a major apparel exporter for the global market and producing 70 percent of India‘s silk, Karnataka is seeing a bright future for the sector with the Apparel Park at Dodaballapur near Bengaluru and other mega Textile Parks being developed in other parts of the state. There are about 2000 textile and garment units in Bengaluru and its nearby textile clusters. In July 2008, the Karnataka Government proposed to establish 11 textile parks to give a boost to the textile industry in the state. Bellary district is an emerging centre for textiles in Karnataka, with a proposed 175 acre apparel park specialising in denim based garments.

Agriculture and Consumer Foods Karnataka on one hand accounts for 70 percent of the nation’s total coffee production and has on the other several leading multinational food companies like Unilever, Britannia, ITC, Nestle, Nissin, Pepsi, Coco-Cola, Heinz, having manufacturing facilities in the state. The varied but suitable climate of the state ranks it second in the production of flowers; and also as one of the leading producers of fruits and vegetables. Horticulture accounts for over 40 percent of the state‘s agricultural income and contributes 17 percent to GSDP. The state promoted a special purpose vehicle, Food Karnataka Ltd (FKL) in 2004 to attract private investments in six proposed food parks across the state; the state had proposed setting up a Spice Park at Byadagi in Haveri district in 2009-10.

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Tamil Nadu

Industry Sectors

Tamil Nadu pioneered the IT revolution by being one of the first states in the country to enact a comprehensive policy for non-exclusive use of the public right of way by organisations in the private/public sectors for laying high bandwidth optic fibre cables throughout the state. Software companies in Tamil Nadu were assured of uninterrupted power supply and did not have to follow pollution control regulations or come under the purview of the Factories Act 1948; the companies were also exempted from certain provisions of the Tamil Nadu Shops & Establishment Act.

Information Technology With nearly 1,600 IT companies operating in the state, Tamil Nadu employs more than 150,000 professionals in the IT industry. Chennai is the second largest software exporter in India, after Bengaluru. In a bid to further promote information technology in the state, the Government of Tamil Nadu initiated the TIDEL Information Technology Park with 1.2 million sq. ft. of space, which has catalysed the development of the Information Technology Corridor of Chennai.

The key projects in Tamil Nadu are the IT Park at Ambattur in Chennai and the IT Park at Coimbatore. Tamil Nadu was one of the first states in the country to announce a separate IT policy.

The state‘s Gross Domestic Product grew by 12.2 percent between 1999-2000 and 2007-08 to reach USD 72.2 billion. Sector wise agriculture and allied activities registered the highest growth in the primary sector, while the share of the secondary sector in GSDP was 31.2 percent in 2007-08, its growth being driven by registered and un-registered manufacturing. The share of the tertiary sector in GSDP was 55.3 percent in 2007-08. Trade and hotels and restaurants, the largest sub-group of the sector, registered a growth of 11.9 percent over the previous year.

The per capita income of Tamil Nadu was USD 1,271.1 in 2008 – 09 with the share of urban households in the educated and self-employed category in Tamil Nadu being comparable with the national average.

Small Scale Manufacturing The index of industrial production in the state registered a growth of 8.1 percent during 2007-08, as compared to 7.9 percent during the previous year. The manufacturing group with the majority of contributions, performed well with a robust growth of 8.2 percent in 2007-08. Micro and small industries account for 95 percent of industrial units, 40 percent of the output of the manufacturing sector and 35 percent of the state‘s exports, with many heavy engineering and manufacturing-based companies located in and around Chennai. A conglomerate of 64 industrial units, Tamil Nadu Small Industries Corporation Ltd. (TANSI), was formed in 1965.

The manufacturing sector of Tamil Nadu has witnessed a strong inflow of investments, with the electricity sector attracting the bulk of the total investment with over USD 35 billion and coming in a close second was the manufacturing sector drawing an investment worth nearly USD 35 billion. USD 121.1 billion were estimated to be the outstanding investments in the state during the December 2008 quarter.

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Tamil Nadu is fast emerging as a destination for IT investments is evident from the fact that software exports from Tamil Nadu amounted to USD 7.9 billion in 2008-09, registering a 32 percent year-on-year growth. The growth rate during 2007-08 was 37 percent over the previous year. The state’s export portfolio consists of application software and system software, which has the highest share of around 70 percent; ITeS and BPO services comprise 13 percent; communication software, VLSI design and Web solutions have a share of 8 percent; IT consultancy with a contribution of 6 percent; and product development with a contribution of 3 percent. In 2008-09, the number of units registered with the Software Technology Parks of India (STPI), Chennai, was above 1,600.

Textiles Accounting for over 45 percent of the country‘s spinning capacity and nearly 60 percent of yarn exports, Tamil Nadu is aptly known as the ‘yarn bowl’ of the country. Tirupur known as the ‘knitting city’ has about 3,000 exporters. Tamil Nadu has a large cotton textile industry cluster that accounts for about 50 percent of India‘s production capacity. In less than a decade spanning the years 2001 thru 2009, the state added 2.3 million spindles. Out of the 1,875 large and medium textile mills in India, more than half are located in Tamil Nadu with 850 mills. Similarly, out of 1,146 small units in India, 904 are located in Tamil Nadu.

The major textile centres in Tamil Nadu are Coimbatore and Tirupur, with Karur, Madurai and Rajapalayam making up for the other textile centres in the state. Chennai is known for the export of woven garments with about 2,400 registered exporters.

Automotives Chennai has been dubbed the ‘Detroit of South Asia’ as it is fast emerging as a major export hub for cars to 2010

south-east Asia. Share of Tamil Nadu in the Indian automotive industry is 30 percent with shares of sub-sectors in the auto industry divided as-auto components accounting for 30 percent, trucks for 17 percent, passenger cars for 20 percent and two wheelers having a 20 percent share.

Skilled manpower, coupled with the state‘s strong engineering industry background are the foundations for Tamil Nadu‘s strong performance in the auto industry. A study conducted by the Confederation of Indian Industry had concluded that the Tamil Nadu auto industry would generate as many as 500,000 additional jobs over the years from 2006 – 2016.

Engineering Concentrated mainly in Chennai, Coimbatore and Salem, Tamil Nadu has a strong engineering base that has proven to be the foundation for its many industry sectors. Exports of engineering products from Tamil Nadu have been a major source of revenues, with the strong engineering base consisting of a network of nearly 3,000 units, employing over 0.25 million skilled workforce, making high-quality inputs such as castings and forgings, and a wide variety of ancillary products.

Cements Ranking fourth in terms of cement production and producing ready-mix concrete on a grand scale, Tamil Nadu is one of the leading cement manufacturers in the country. Tamil Nadu had a cement production capacity of over 18 million tonnes per annum (mtpa) during 2007-08 and registered a growth of 5.5 percent over the previous year. In 2007-08, the cement production in the state had increased from 16.5 mtpa from the previous year to 17.92 mtpa. The state reported a cement consumption of 14.46 mtpa, and cement and clinker exports of 0.01 mtpa in 2007-08.

Kerala Kerala is a traditional blend of tourism economy, Ayurveda and wellness, and industries including handloom, cashew, coir and handicrafts. The state‘s economic performance is driven by the secondary and tertiary sectors.

Since independence, Kerala was managed as a democratic socialist welfare economy, but the liberalisation of the mixed economy during the 1990’s allowed heavy industrial restrictions against capitalism and foreign direct investment to be lightened, leading to economic expansion and job creation.

Kerala’s Human Development Index rating is the highest in India. This apparently paradoxical “Kerala phenomenon” or “Kerala model of development” of high human and low economic development results from the strong service sector. Kerala’s economy depends on emigrants working in foreign countries (mainly in the Persian Gulf countries such as United Arab Emirates or Saudi Arabia) and remittances annually contribute more than a fifth of Gross State Domestic Product.

2010

Gross Domestic Product Kerala‘s GDP grew at a compounded annual growth rate of 13.5 percent between 1999-00 and 2007-08 to reach USD 40 billion. The secondary sector chiefly driven by manufacturing, construction, electricity, gas and water has been the fastest growing sector, with an annual growth of 14.5 percent. The tertiary sector driven by trade, hotels, real estate, transport and communications, was the largest contributor to Kerala‘s economy, growing at a rate of 12.5 percent in 2007-08 over the previous year. Though the primary sector‘s share in the GSDP has been declining, mining and quarrying registered a high growth rate of nearly 40 percent in 2007-08 over the previous year.

The per capita income of Kerala was above USD 1000 in 2007-08, much higher as compared to the all India average of USD 850. Distribution of households by socioeconomic classification shows that Kerala has a higher percentage of urban households with education as compared to the nationwide average; in rural households, too, the level of education is higher than the education level across the country.

Industry Sectors Manufacturing Kerala has been a land of traditional industries including handlooms, cashew, coir and handicrafts. In terms of industrial growth, the state‘s average growth from 19992000 to 2007-08 was nearly 5 percent. As of March 2009, there were 730 large and medium industrial undertakings in Kerala, of which 600 units are in the private sector. The small scale sector contributes 40 percent to industrial production and 35 percent to exports. Back in March of 2008, there were nearly 200,000 working small scale industry (SSI) units registered in Kerala.

KERALA‘S GDP GREW AT A COMPOUNDED ANNUAL GROWTH RATE OF 13.5 PERCENT BETWEEN 1999-00 AND 2007-08 TO REACH USD 40 BILLION. THE SECONDARY SECTOR CHIEFLY DRIVEN BY MANUFACTURING, CONSTRUCTION, ELECTRICITY, GAS AND WATER HAS BEEN THE FASTEST GROWING SECTOR, WITH

14.5 PERCENT. THE TERTIARY SECTOR DRIVEN BY TRADE, HOTELS, REAL ESTATE, TRANSPORT AND COMMUNICATIONS, WAS THE LARGEST CONTRIBUTOR TO KERALA‘S ECONOMY, GROWING AT A RATE OF 12.5 PERCENT IN 2007-08 OVER THE PREVIOUS YEAR. AN ANNUAL GROWTH OF

21

Coir Accounting for more than 90 percent of the total coir and coir products manufactured in India, Kerala holds the market monopoly in the coir industry, providing employment to nearly 4 lakh workers. The Alappuzha district of Kerala contributes around 90 percent to the total coir produced in the state. The Coir Co-operative Marketing Federation (COIRFED) is the apex federation of around 600 coir co-operatives and the state has three coir industrial parks - two at Alappuzha and one at Perumon in Kollam.

The US is the largest importer of coir products from India, followed by the European Union.

Handlooms Handlooms stand second after coir among the traditional industries of Kerala, and provide employment to about 2.5 lakh people. Palakkad, Kozhikode, Thrissur, Ernakulam, Kollam and Kasaragod districts have the majority concentration of the handlooms industry. A small number of the looms in the industry are with industrial entrepreneurs and over 90 percent of the total number of looms is under the co-operative sector. At the end of March 2008, there were over 750 registered primary handloom weaver‘s co-operative societies (PHWCS) consisting of more than 150 factory type societies and about 600 cottage type societies. The overall production of cloth in the co-operative sector of Kerala increased from about 60 million metres in 2006-07 to around 68 million metres in 2007-08.

Information Technology The state has come to be known as the information gateway of the country owing to the harbour town of Kochi being connected by two submarine cables and satellite gateways that directly support cities including Bengaluru, and is emerging as a unique destination for information technology. The state is home to the Technopark at Thiruvananthapuram and Infopark at Kochi, while a Cyberpark at Kozhikode is under construction. The state also has many private IT parks such as Smart City at Kochi, L&T Park, Leela Park, Brigade Park and Muthoot Park.

Electronics Domestic demand for electronic goods went up by over 35 percent back in 2008 and Kerala has held the advantage of the availability of skilled and semi-skilled workers for the electronics industry. The self-contained Electronics Technology Park, Technopark, Thiruvananthapuram, has played a significant role in attracting global electronics manufacturers.

22

Tourism Being one of the top destinations and prime economies of the tourism industry of the country, Kerala’s tourism sector contributes about 8 percent to the Gross Domestic Product of the state. In 2008, the foreign exchange earnings from tourism grew by about 16 percent to USD 750 million; foreign tourist arrivals increased from around 5.15 lakh tourists in 2007 to nearly 6 lakhs in 2008. Kerala Tourism has won many national and international awards and is listed as one of the must-see places in the world, apart from being listed among the 101 strongest brands in India by Super Brands India Private Limited and being awarded Super Brand status in 2006-07.

Some of the popular tourist destinations in Kerala include beautiful beach destinations such as Kovalam, Varkala, Marari, Bekal and Kannur; picturesque backwater destinations such as Kumarakom, Alappuzha, Kollam, Kochi and Kozhikode and scenic hill stations such as Ponmudi, Munnar, Wayanad and Wagamon. Kerala has a number of well known wildlife reserves, including the Periyar Wildlife Sanctuary, Eravikulam National Park, Thattekkad Bird Sanctuary and Parambikulam Wildlife Sanctuary. All tourism destinations in Kerala are strongly supported by traditional medicine and wellness systems of Ayurveda and Panchkarma, which are strong aspects of Kerala’s tourism infrastructure.

Investments The total outstanding investments in the state amounted to USD 29 billion, with the services sector accounting for a major amount of the investments back in December 2008. In nearly a decade, from April 2000 thru June 2009, the collective foreign direct investment in the State was about USD 260 million. Large investments recently made into the state have been into industrial establishments such as The Integrated Infrastructure Development Centre and the International Apparel Park; the Video and Film Park, International Convention Centre, Technocity, Technopark Phase III, and Vizhinjam Deep Water Port.

Industrialisation Kerala Industrial Infrastructure Development Corporation (KINFRA) will continue to develop mega industrial parks for select industrial sectors, including industrial townships planned to be compact industrial areas providing necessary support to industrial entrepreneurs and offering world class facilities.

Product and industry specific Special Economic Zones, including service SEZs, suited to the state‘s economy with industry-specific infrastructure and all basic and supporting facilities will continue to be established. Three industrial zones in the state are slated to be developed as industrial corridors, which will qualify as commercial districts. ❑ 2010

Finding Investment Options in the

Big Jack Territory ACCORDING TO THE PLANNING COMMISSION, INVESTMENTS IN THE COUNTRY’S INFRASTRUCTURE SECTOR HAVE DOUBLED FROM 4 PER CENT TO 8 PER CENT OF THE GROSS DOMESTIC PRODUCT (GDP) OVER THE PAST FIVE YEARS. THE ECONOMY OF THE NATION HAS OVERCOME THE STRAIN OF THE GLOBAL MELTDOWN AND ENTERED INTO A NEW INVESTMENT CYCLE JUDGING BY THE LATEST EXPANSION PLANS ACROSS THE INDUSTRY SECTORS IN THE JACKPOT REGION OF INDIA - SOUTH INDIA. THIS NEW PHASE OF INVESTMENTS WILL IN TURN CREATE MORE JOBS, INCREASE THE DEMAND FOR SUPPORTING INDUSTRIAL INFRASTRUCTURE, AND ADD TO THE MOMENTUM IN INDUSTRIAL GROWTH WHICH WAS CREATED BY INDUSTRIAL SECTORS WITNESSING STRONG DOMESTIC CONSUMER DEMANDS. FEATURE THE COST OF INVESTING IN THE

HERE WE SOUTH INDIAN STATES

WHILE HIGHLIGHTING THE LATEST INVESTMENT PROJECTS FROM EACH STATE.

I

ndia is a fast-growing economy with a dynamic and robust financial system, and has become a preferred destination for investors owing to the competitiveness that the country’s treasure of natural and human resources has to offer. Being a democracy, the nation provides a stable policy environment and its independent institutions guarantee the rule of law. These trends are even more apt when the states of South India are taken into consideration – stable governments, proactive industrial policies and adequate infrastructure, all ably supported by the wealth of natural resources and immense pool of qualified human resources.

The business environment in South India is attractive owing to the size and growth potential of the region; the laws and regulations of the unbound market democracy that encourages market competition, supports entrepreneurship, and provides high profit ratios – all which add that special sparkle to the attractiveness of South India.

By implementing robust policy reforms and undertaking dynamic infrastructure development, the State governments in South India have been proactive in their mission to make India an attractive destination for both domestic and foreign investments. Each state is developing its own long term strategies which are practical in implementation, long-term in concept, flexible to time and remunerative to all. But the main concern that each state has been facing is that of attracting investors who are capable of a dialogue

24

2010

that actually can be put into practice. So what is it that each state has to offer for these investors? What does it take for one to take their entrepreneurial dream and transform it into a reality? Read on to know what it would take for one to set up their dream project in the states of South India.

Andhra Pradesh The state is blessed with good literacy rates and has the presence of good education and vocational training institutions, leading to well qualified human resources.

This has been a major factor enabling the success of Andhra Pradesh in sectors like IT & ITES, pharma and biotechnology. Given its strong base of technical workforce, knowledge intensive industries are gradually taking a lead position in the state.

Based on an assessment of the above factors, some of the industries with potential for investment and growth in the state of Andhra Pradesh are illustrated below: This is the qualitative assessment to highlight relative interest of different sectors. A case by case analysis is necessary

Proactive

Exclusive Policy Special Incentives

Courtesy: India Brand Equity Foundation, Hyderabad

Visakha patnam- Others Vijayawada

Manufacturing Land price (US$/sq m) 100-200 40-100 20-50 Labor(US$/man year) 825-1250 Lease rent (US cents/sq ft) 40.73* 36.59-60.96** NA Services Occupation costs (US cents/sq ft/ 87.550-75 <37.5 month) 125 Employee cost (US$/man year) Entry level professional (<5 years 5,000-25,000 experience) Entry level professional (5-15 years 12,500-75,000 experience) Entry level professional (>5 years 50,000-250,000 experience) Electricity (US cents/unit) Commercial 15.75 Industrial 9.75-10.75 Water (US cents per 1,000 litres) Commercial 50 Industrial 62.5 Residential rent (US cents/sq ft/ 12.5-62.5 12.5month) 37.5 Five-star hotel room (US$/per night) 122-512 73-85 NA*** * Pashamylaram SEZ** Visakhapatnam SEZ*** Few districts have five-Star hotels

www.ibef.org

Special Infrastructure

Parameter

(SEZ, STPI, AEZ etc.)

Opportunities in different industries

Moderate

Tourism

Mineral-based industry

Generic policy incentives

Information Technology

Engineering Industry

Food processing industry

Chemical Industry

Crude oil and natural gas

Apparel and textile

Petrochemicals

Leather Industry

Pharmaceutical and biotechnology

Retail

Agriculture food and agro processing industry

Electronic hardware

Biotech

Infrastructure

Policy Proactiveness

Food Processing

IT & ITES Chemicals/ Pharma

Mineral-based Industry Tourism

Engineering

Doing Business Fiscal and non-fiscal incentives

Sector Attractiveness Drivers Natural Resources Driven Capability Driven

before investment is made.

Source: KPMG analysis Average Cost of doing business in AP Overall Competitiveness of the State 2010

Cost of doing business Availability of Labour Ease of setting up and carrying out business Source: India Brand Equity Foundation, www.ibef.org

High

Medium

Low

25

Parameter Industrial infrastructure - existing and proposed Power Connectivity Industrial estates/areas STP EPIP EPZ IIDC

THE PROPOSED PETROLEUM, CHEMICALS AND PETROCHEMICALS INVESTMENT REGION (PCPIR) BETWEEN VISAKHAPATNAM AND K AKINADA IS LIKELY TO ATTRACT OVER

RS.1,63,000 CRORE IN INVESTMENTS OVER THE NEXT FEW YEARS. THE

PCPIR WOULD PROVIDE DIRECT EMPLOYMENT

500,000 PEOPLE APART FROM 700,000 INDIRECT JOBS. THE FOR

PROJECT WILL ALSO HAVE

300 MW INTEGRATED POWER PLANT. A

Industrial growth centre High Medium Low Latest Investments and Developments The state government has allotted 1,000 acres of land for the Brandix India Apparel City (BIAC) located in the Andhra Pradesh Special Economic Zone in Visakhapatnam, while the Centre has provided Rs.36 crore under the Union textile policy.

BIAC, promoted by Sri Lanka-based Brandix group, will provide employment to 60,000 people and would have 20 apparel manufacturing plants, three fabric mills, eight accessories factories and one finishing plant. The apparel city would attract an investment of around Rs.5,400 crore.

Visakhapatnam is estimated to attract investments worth about Rs.68,000 crore over the next five years and see 71,000 new jobs being created.

Singareni Collieries Company Ltd (SCCL), India’s second-largest coal producer, has plans to invest Rs.5,600 crore over the next four years to set up a 1,200 MW thermal power plant at Adilabad district in Andhra Pradesh. Coal for the pithead project would be sourced from SCCL’s own mines, at a distance of 12 km from the project site.

The proposed Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) between Visakhapatnam and Kakinada is likely to attract over Rs.1,63,000 crore in investments over the next few years. The PCPIR would provide direct employment for 500,000 people apart from 700,000 indirect jobs. The project will also have a 300 MW integrated power plant.

The Rs.500-crore Vibha Seeds Group has invested Rs.200 crore to set up a multi-

26

crop seed processing facility at Janampet in Mahboobnagar district of Andhra Pradesh. The state-of-the-art centre, built on about 106 acres, is one of the biggest of its kind in the world.

Andhra Pradesh Industrial Infrastructure Corporation (APIIC) Formulation SEZ is being setup at Jadcherla in Mahaboobnagar district on 250 acres, and is expected to attract investments to the tune of Rs.500 crore. Aurobindo Pharma, which was allotted 75 acres, has commenced operations and has invested Rs.157.63 crore in the unit that would generate direct employment for about 1,500 people and indirect for 3,000.

The Formulations SEZ is a part of the 955acres Green Industrial Park (GIP), which will also have textile, engineering, service and training and other units.

Private equity majors Citi Ventures, Sequoia Capital and Bessermer Venture Partners have invested $100 million in Hyderabad-based power generation company Ind-Barath Power Infra Ltd. The company is setting up a 450 MW power project in Karnataka. The company, which operates group captive and merchant power projects, plans to put up 2,000 MW in Orissa and Tamil Nadu. Significantly, this deal signals the revival of private equity funding in the power sector, which had dried up in the recent months.

The Andhra Pradesh Gas Infrastructure Corporation (APGIC), a special purpose vehicle, along with its consortium partners, has outlined an investment plan of Rs.1,600 crore for the four blocks it bagged in the NELP VIII bidding process.

These investments will cover all the four blocks and its partners will be ONGC, Oil India, NTPC and British Gas. The APGIC will contribute about Rs.160 crore for exploration over a seven-year time-frame.

Karnataka The state prospers from its well qualified manpower which results from high literacy rates, presence of good research organisations and some leading academic institutions. This has been a major factor enabling the success of Karnataka in sectors like engineering, IT/ITES and biotech. Given its strong base of technical work force, knowledge-intensive industries are gradually taking a lead position in the state.

2010

Based on an assessment of the above factors, some of the industries with potential for investment and growth in the state of Karnataka are illustrated below:

IT/ITES and BPO sectors were approved.

Two projects involving an investment of Rs.207 crore were cleared in the agriculture sector.

This is the qualitative assessment to highlight relative attractiveness of different

Among the projects, the Industrial Finance Corporation of India Limited (IFCI) has proposed to set up a “financial city” at Devanahalli Industrial Area near Bangalore at an investment of Rs.1,000 crore. Just Dial, a search engine, has proposed to set up an IT/ITeS/BPO and Software Development Centre at Devanahalli at an investment of Rs.450 crore. Moser Baer, a maker of solar PV cells, has proposed to invest Rs.1,000 crore to set up a 50 MW solar photovoltaic power project in Chikkaballapur district.

Proactive Exclusive Policy Special Incentives Special Infrastructure (SEZ, STPI, AEZ etc.)

Moderate Generic policy incentives

Policy Proactiveness

Biotech

Food Processing

Infrastructure

IT & ITES

Tourism

Auto

Overall Competitiveness of the State Source: India Brand Equity Foundation,

Parameter Opportunities in Industries Engineering

Chemicals/ Pharma

Karnataka

Tourism IT-based Industries Food processing Industry

Sector Attractiveness Drivers Natural Resources Driven Capability Driven

sectors. A case by case analysis is necessary before investment is made.

Source: KPMG analysis Latest Investments and Developments The State High Level Clearance Committee (SHLCC) chaired by chief minister B S Yeddyurappa, accorded in-principle approval to 34 industrial investment proposals; the government would sign a memorandum of understanding with the project proponents during the Global Investors’ Meet to be held in June in Bangalore. These projects will involve an investment of Rs.94,300 crore, and once commissioned would create employment for 98,300 persons.

Of the 34 projects, nine projects with a combined investment of Rs.74,156 crore are in the iron and steel sector, four in the energy sector with an investment of Rs.10,635 crore, four cement units at Rs.5,121 crore and Rs.1,000 crore in solar power sector. One project each in logistics, 2010

Pharmaceuticals and bio-tech Agro-based industry Minerel-based industry Engineering Industry Chemical Industry Textiles and apparels Handloom and handicrafts sector

Policy incentives Fiscal and non-fiscal incentives Cost of doing business Availability of labour Setting up and carrying out business

Indl. infrastructure-Existing and Proposed Power Connectivity Industrial estates/areas STP/IT park EPIP www.ibef.org

High

Medium

Low

27

The department of tourism, government of Karnataka, has released a master plan for the development of tourism in the state, based on the vision 2020 document prepared and adopted by the Karnataka State Planning Board.

THE DEPARTMENT OF TOURISM, GOVERNMENT OF K ARNATAKA, HAS RELEASED A MASTER PLAN FOR THE DEVELOPMENT OF TOURISM IN THE STATE, BASED ON THE VISION

2020

DOCUMENT PREPARED AND ADOPTED BY THE

K ARNATAKA STATE PLANNING BOARD.

The tourism master plan envisages initiatives to attract private investment ranging from Rs.10,000 crore to Rs.20,000 crore in the next three to five years without straining the budget of the government.

Most of these investments will be through public private participation and special purpose vehicles to be created exclusively for this purpose.

With the release of the master plan, the state government aims to generate 200,000 jobs in the tourism sector in the next five years. Some of the tourism projects envisaged by the master plan include development of heritage centre at Hampi, health and wellness city near Bangalore, marina and maritime city near Mangalore, Disney theme park around Kolar Gold Fields and MICE conference centre near Bangalore international airport, sports city in Gulbarga, education city in Dharwad, knowledge park in Bellary and energy technology park in Chitradurga.

ArcelorMittal, the world’s largest steel company, has received the clearance to set up a mega steel plant in Karnataka with an investment of US$ 6.56 billion.

The plant promises direct employment potential for 10,000 people. A High-Level Committee led by Chief Minister, B S Yeddyurappa has cleared the six million tonne per annum-project recently. This project is in addition to the Orissa and Jharkhand plants, and the company is yet to finalise a site for the Karnataka project, which includes 750MW captive power plant.

Kerala The growth of IT Enabled Services in Kerala is led by excellent infrastructure fa28

cilities having the highest telecom-density and two submarine cable landings, coupled with availability of skilled manpower from some of the best engineering colleges in the country such as the National Institute of Technology, Calicut.

Based on an assessment of the above factors, some of the industries with potential for investment and growth in the state are illustrated below:

Proactive Exclusive Policy Special Incentives Special Infrastructure (SEZ, STPI, AEZ etc.)

Moderate Generic policy incentives Biotech

Infrastructure

Agro-based

Textile

Coir-based

Tourism

IT & ITES Policy Proactiveness

Surya Roshini has proposed to set up CFL bulbs, energy efficient tube light and LED lamps units and GI Pipes and Steel ERW black pipes manufacturing unit in Shimoga.

Gujarat Ambuja Exports Limited will be setting up maize starch plant in Shiggaon taluk of Haveri district at an investment of Rs.100 crore.

Sector Attractiveness Drivers Natural Resources Driven Capability Driven

This is the qualitative assessment to highlight relative interest of different sectors. A case by case analysis is necessary before investment is made.

Source: KPMG analysis Latest Investments and Developments The Kerala government distributed allotment letters to 12 enterprises under the small and medium industries category at the Valiya Velicham Industrial Growth Centre in Kannur district. The Kerala State Industrial Development Corporation (KSIDC) has developed 251 acres of land to set up the growth centre, which will have a 1 lakh sft standard design factory for apparel. A 50 acres industrial park exclusively dedicated for small scale units has also been developed inside the centre. Plots of 25/50 cents and 1 acre would be allotted 2010

to non polluting units across all sectors.

KSIDC has already provided basic infrastructure, including 2 km of developed internal roads, an 11 KV line for power and an effluent waste treatment plant. An administrative block of 1,600 sqm and a multi-storied standard designs factory of 10,000 sqm are already functioning in this growth centre. Other units operating include Rubco Hawai Chappals, Rubco Cycle Tyres & Tubes, NKB Oil Mills, Standard Fibers & Allied Products, Maryan Apparel and Apparel Training & Designing Centre. These units together have generated employment for around 1,500 people.

KSIDC envisages a full fledged apparel park in the centre on 40 acres.

Centre of Excellence in GPU computing as part of its business focus on High performance Computing (HPC). Equipped with the latest products from Nvidia, the centre is staffed by highly qualified and experienced engineers from NeST to develop High Performance Computing solutions for their customers.

THE KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION (KSIDC) HAS DEVELOPED 251 ACRES OF LAND TO SET UP THE GROWTH CENTRE, WHICH WILL HAVE A

1 LAKH SFT

STANDARD DESIGN FACTORY FOR APPAREL.

Nvidia Corporation, the world leader in visual computing initiatives and NeST, a provider of specialised software and engineering services, have announced the setting up of their centre for GPU (graphics processing unit) computing at the NeST premises in Technopark.

NeST has set up the

2010

29

The Kerala State Industrial Development Corporation (KSIDC) and GAIL (India) have signed a bilateral agreement that envisages investments of up to Rs.8,500 crore in gas-based infrastructure in the State. With this, the long-drawn LNG terminal at Kochi, a gas pipeline project for supplying natural gas, and a city gas distribution project are expected to become a reality.

the state has skilled manpower in abundance. These are a few factors that have enabled Tamil Nadu to carve a niche for itself in sectors such as manufacturing, automotive, IT and ITES. Given its strong base of technical workforce, knowledge-intensive industries are gradually taking a lead position in the state.

Based on an assessment of the above

Cost of doing business in Kerala Cost parameter

Cost estimate

Source

Cost of land (per acre)

US$ 335,000 (Kochi)

Inspector General of Registration

Hotel costs

US$ 45-170/room/night

Leading hotels in the state

Cost of office space

60-100 cents/sq ft/month

Property dealers

Cost of Residential space

US$ 150-540 /month for a 2,000 sq ft house

Property dealers

Power cost

Commercial and industrial: 8 cents/kWh

Kerala State Electricity Board

Cost of water

Commercial and Industrial: 26 cents/1,000 liters

Kerala Water Authority

GAIL WILL FACILITATE TWO GAS PIPELINES, VIZ. THE KOCHIK ANJIRAKODE-MANGALORE/BANGALORE PIPELINE AND THE SUB-SEA GAS PIPE-

KOCHI TO NTPC, K AYAMKULAM. THE 1,114-KM KOCHI-BANGALOREMANGALORE PIPELINE FROM

LINE IS ESTIMATED TO COST

RS.3,032

CRORE WHILE THE

KOCHI-K AYAMKULAM SUB-SEA PIPELINE IS ENVISAGED TO COST AROUND CRORE.

RS.1,000

KSIDC and GAIL will jointly conduct Techno Economic Feasibility report in developing the project and related distribution infrastructure. Petronet LNG, a joint venture of GAIL, ONGC, IOC and BPCL, is setting up the LNG terminal at an estimated investment of Rs.4,000 crore.

The project, which will have re-gasification capacity of 2.5 mmtpa initially, will be expanded to 5 mmtpa, and is expected to be commissioned by 2012.

GAIL will facilitate two gas pipelines, viz. the Kochi-Kanjirakode-Mangalore/ Bangalore pipeline and the sub-sea gas pipeline from Kochi to NTPC, Kayamkulam.

The 1,114-km Kochi-Bangalore-Mangalore pipeline is estimated to cost Rs.3,032 crore while the Kochi-Kayamkulam sub-sea pipeline is envisaged to cost around Rs.1,000 crore.

GAIL also envisions setting up gas distribution networks in various regions in the State. In the first stage, it will establish a main transmission network which can facilitate the supply of natural gas for domiciles, automobile CNG stations, commercial customers and also for various small-scale industrial consumers in the region.

Tamil Nadu High rate of literacy and well developed educational infrastructure are two reasons 30

factors, some of the industries with potential for investment and growth in the state are illustrated below:

Proactive Exclusive Policy Special Incentives Special Infrastructure (SEZ, STPI, AEZ ect.)

Moderate Generic policy incentives Biotech Policy Proactiveness

Source: India Brand Equity Foundation, www.ibef.org

Agro-based

Infrastructure

IT & ITES

Auto Textile, Knitwear & Leather Engineering Chemicals/ Pharma

Sector Attractiveness Drivers Natural Resources Driven Capability Driven

This is the qualitative assessment to highlight relative interest of different sectors. A case by case analysis is necessary before investment is made.

Source: KPMG analysis 2010

Cost of doing business in Tamil Nadu

up their capacity and to set up Greenfield projects. The existing manufacturing

Cost parameter

Cost estimate

Source

Cost of land

US$ 10 per sq.mt.

Avarage cost of land at various industrial parks in Tamil Nadu

Hotel costs (per room night)

US$ 50-150

Leading hotels in the state

Office space rent (per sq US$ 0.8 -1.5 ft per month)

Discussions with property dealers

Cost of Residential space US$ 200-550 per month for a 2,000 sq ft (Rates Discussions with property dealers depend on the type of structure and location Power cost

Commercial and industrial use: 10 cents per kWh

Tamil Nadu Electricity Board

Cost of water

Commercial and Industrial: 30 cents per 1,000 liters

Tamil Nadu water supply and Drainage Board

Source: India Brand Equity Foundation, www.ibef.org Latest Investments and Developments International Finance Corporation (IFC), part of the World Bank group, is planning to invest around Rs.110 crore in WEG Industries (India) Pvt Ltd. The proposed investment is to support the company’s upcoming manufacturing unit at Hosur in Tamil Nadu. According to IFC, the project cost is estimated at around Rs.418 crore, half of which is for production machinery and approximately one-quarter for civil works and leasehold; the balance is working capital, information technology, and pre-operational expenses. The unit is located in the Sipcot Industrial Complex, Phase II at Hosur. This will be the first Greenfield plant for WEG outside the Americas and is expected to create around 250 direct jobs.

Madras Cements Ltd is planning to invest around Rs.800 crore to increase the manufacturing capacity of its Ariyalur plant in Tamil Nadu. The company has also proposed to set up a 65 MW coal-based power plant for captive purpose. Madras Cements estimates the capacity at Ariyalur would be increased from 2 million tonnes to 4.5 million tonnes by April 2011. The total investment in the expansion and power plant will be around Rs.800 crore and the project would be funded through debt and internal accruals. Madras Cements, post the expansion, will look at neighbouring states of Karnataka and Kerala.

Cement majors are investing around Rs.3,000 crore in Tamil Nadu to scale 2010

capacity in the state which is estimated to be around 45 million tonnes. Another eight million tonnes is being added. Major players, which are in the process of scaling up and setting up their projects in the state, include Dalmia Cements, Chettinad Cements, India Cements, ACC and Madras Cements.

MADRAS CEMENTS LTD IS PLANNING

US based electronic manufacturing services company Sanmina-SCI inaugurated its new 100 acres manufacturing facility at Oragadam, set up with an investment of Rs.250 crore, making it the company’s 18th facility globally. Sanmina-SCI had signed an MoU with the Tamil Nadu government earmarking an investment of Rs.225 crore, but has already invested over Rs.250 crore.

Sanmina-SCI currently employs 1,500 people, which would be increased to 10,000 in the next five years.

TO INVEST AROUND

BorgWarner Inc, a US based auto component and systems manufacturing company with presence in 18 countries, has established its Indian manufacturing facility at Sipcot industrial park at Sriperambadur near Chennai. Set up on a 6.3 acres campus at a cost of Rs.30 crore, the plant will have an annual capacity of three lakh assemblies.

With the current Indian market at Rs.100 crore and expected to grow at over 10 percent, BorgWarner decided to set up a full fledged plant. It is hoping to clock a turnover of Rs.65 crore this year against Rs.49 crore in 2008-09. It services companies like Tata Motors, Tata Cummins, M & M, ALL, Force Motors, Volvo, Eicher, Asia Motor works and Kirloskar. ❑

BASED POWER PLANT

RS.800 CRORE TO INCREASE THE MANUFACTURING CAPACITY

ARIYALUR PLANT IN TAMIL NADU. THE OF ITS

COMPANY HAS ALSO PROPOSED TO SET UP A

65 MW COAL-

FOR CAPTIVE PURPOSE.

MADRAS CEMENTS ESTIMATES THE CAPACITY AT

ARIYALUR WOULD

BE INCREASED FROM

2 MILLION TONNES TO 4.5 MILLION TONNES

BY APRIL 2011.

31

Big Jack’s Small Worries

KPMG & TIE TEAMED UP TO CONDUCT A RESEARCH TITLED ‘ENTREPRENEURIAL INDIA’ TO WEIGH UP THE ENTREPRENEURIALISM QUOTIENT OF THE INDIAN INDUSTRY. WE PRESENT THE SOUTH INDIAN ASPECTS OF THE RESEARCH.

E

ntrepreneurship (or Enterprise) is often considered as the fourth factor of production, along with land, labour and capital, to produce goods and services. To highlight this fourth essential factor, KPMG teamed up with TiE (The Indus Entrepreneurs ) to conduct a research titled ‘Entrepreneurial India’ to weigh up the entrepreneurialism quotient of the Indian industry. For the purpose of this research, which assesses these factors and their enablers, the research team organised the four factors given as finance, governance issues, infrastructure, local environment & ecosystem, manpower issues and regulatory issues.

The responses from the ‘Entrepreneurial India’ research were further categorised by states surveyed, to arrive at a state-wise score on the current status for each of the parameters. Subsequently, their current status ratings were compared with their respective importance rankings to assess how conducive each state is perceived to be for entrepreneurship.Judging by the report, the going has been a little tough for the South Indian states - affected by the global recession to a large extent, with mixed results in the average scores amongst the country. Andhra Pradesh and Tamil Nadu along with Goa, Rajasthan, Maharashtra, Gujarat and Punjab have weighted average scores higher than the national average; while Karnataka and Kerala have been rated

below the national average score together with Chandigarh, Madhya Pradesh, Uttar Pradesh, Haryana, West Bengal and Delhi. The following are excerpts from the report, concentrating on the South Indian states, and shall present the findings of the study on each South Indian state based on the perception of its entrepreneurs, their experience and expectations.

Andhra Pradesh Entrepreneurs’ perception of their state The entrepreneurs in AP consider finance as the most important factor followed by manpower and infrastructure.

In the research, the state has garnered relatively higher scores on most

State-wise confidence index Parameter

AP

Goa

Raj

Maha

Guj

TN

Punjab

Pan-India Chd

Kar

MP

UP

Infrastructure

4.24

4.55

4.26

3.80

3.68

3.47

3.63

3.59

3.50

3.05

3.63

3.18

Finance

4.29

3.87

3.96

3.77

3.39

3.45

3.53

3.41

3.45

3.19

3.55

3.21

Manpower Issues

4.39

3.88

3.79

3.85

3.80

3.59

3.36

3.40

3.18

3.20

3.20

3.31

& Ecosystem

4.12

3.85

3.71

3.84

3.59

3.40

3.31

3.28

3.29

3.42

2.86

3.31

Regulatory Issues

3.93

3.68

3.72

3.77

3.56

3.35

3.05

3.12

3.16

2.99

2.72

2.84

Governance Issues

3.73

3.68

3.86

3.72

3.55

2.79

3.03

3.01

3.12

2.90

2.63

2.78

Weighted Average

4.14

3.93

3.88

3.79

3.60

3.35

3.32

3.31

3.28

3.13

3.12

3.11

Local Environment

32

2010

Andhra Pradesh Parameters

Imp.

Finance

1

Manpower

2

Infrastructure

3

Local environment & ecosystem

4

Regulatory issues

5

Governance issues

6

Percpt.

Karnataka

Imp.: Importance, Percpt.: Perception

parameters clearly indicating that its entrepreneurs are satisfied with the current status of these factors and growth is likely to be in-line with the expectations. Finance being most critical has been scored at 4.29 while manpower scores the highest with 4.39 on a five point scale. Other factors too, are scored in the good and excellent range.

Karnataka Entrepreneurs’ perception of their state The entrepreneurs in Karnataka seem to score the state near average. With a weighted average score of 3.13 resulting from above average current status scores of most parameters. However, finance and infrastructure being most important still get relatively lower scores of 3.19 and 3.05 respectively. During the research it was observed that there was a need for a more evolved funding framework channeled by angel investors, that go beyond the IT and ITeS industries, as well as banks, with support from the Government. In addition, the entrepreneurs have expressed a need for enhanced mentoring and handholding. The entrepreneurs have ap-

Har

Ker

WB

Delhi

3.32

3.13

3.14

3.10

3.25

2.53

2.38

2.60

2.99

2.66

2.83

2.50

2.81

2.62

2.35

2.14

2.71

2.48

2.27

2.15

2.46

2.45

1.98

1.87

2.94

2.66

2.50

2.40

2010

preciated the Government’s initiatives to steer multi-sector growth and clearly define growth drivers. Entrepreneurs in Karnataka find that regulations there are stifling to industry and many saw the need to conduct a review of regulations – some of which are several decades old. The state’s infrastructure is seen to have lagged

Parameters

Imp.

Finance

1

Infrastructure

2

Local environment & ecosystem

3

Manpower

4

Regulatory issues

5

Governance issues

6

Percpt.

rate, the state’s population lacks the risk taking ability and the social conditioning critical to entrepreneurial growth. Further, labour market rigidities leading to the absence of a favourable investment climate has also created lower interest in entrepreneurship. It appears that the Kerala Government is now making significant efforts to attract entrepreneurs.

Tamil Nadu Entrepreneurs’ perception of their state The state’s entrepreneurs take pride in the various plans and programs that are in place in Tamil Nadu to help grow the state’s economy. The state’s economy is diversified among several industries.

Imp.: Importance, Percpt.: Perception

Tamil Nadu

behind its development. Creating a friendlier environment beyond Bangalore and Mysore was also seen by many as important tasks for the state Government.

Kerala Entrepreneurs’ perception of their state In the research, entrepreneurs in the state peg the state at a weighted average score of 2.66 while infrastructure followed by manpower and Kerala Parameters

Imp.

Infrastructure

1

Manpower

2

Finance

3

Local environment & ecosystem

4

Regulatory issues

5

Governance issues

6

Percpt.

Imp.: Importance, Percpt.: Perception

finance are regarded as the three most important factors to foster entrepreneurship. While infrastructure enjoys a current status score of 3.13, a low score of finance (2.53) and manpower (2.66) defines the areas of improvement for the stakeholders.

During the research, entrepreneurs mentioned that despite the literacy

Parameters

Imp.

Finance

1

Infrastructure

2

Manpower

3

Local environment & ecosystem

4

Regulatory issues

5

Governance issues

6

Percpt.

Imp.: Importance, Percpt.: Perception

In the study, entrepreneurs rated finance and infrastructure as the two most important factors while manpower was the third most important factor. The weighted average score of 3.35 comes from above average scores on manpower (3.59) and infrastructure (3.47). Governance issues remain on below average score of 2.79. The state known for its growth in the recent past, has to continuously work towards meeting high expectations from its entrepreneurs and introduce initiatives to foster growth while streamlining the existing structure. Manpower issues that were brought forward include the lack of world class management training institutes as well as the risk averse approach of the workforce. While infrastructure scored well, the lack of reliable power and connectivity for Tier III towns were also mentioned as areas for improvement. ❑ 33

Anjani Portland Cements Ltd.

Cementing Success “With our focus in building Anjani brand, we would like to be the market leader in A.P. We want to create customer delight, with our existing prospective customers with consistent quality & service.”

GOOD HUMAN RESOURCES AND PRACTICES COUPLED WITH PROFESSIONAL MANAGEMENT, SOCIAL CAUSE AND EMPLOYEES’ SATISFACTION ARE THE MAJOR THRUSTS OF ANJANI PORTLAND CEMENTS LTD; A COMPANY THAT WAS FORMED THROUGH RESCUING AN AILING CEMENT UNIT IN NALGONDA DISTRICT OF ANDHRA PRADESH AND HAS GROWN OVER THE PAST DECADE TO BECOMING ONE OF THE MOST ‘CONCRETE’ MANUFACTURERS OF CEMENT IN SOUTH INDIA.

T

he flagship brand of Anjani Portland Cements Limited - ‘Anjani Super Gold’ with OPC (43 grade and 53 grade) and PPC has captured the market and is most popular and a house hold name in the state of Andhra Pradesh. The success achieved in 43 Grade, 53 Grade and PPC Cement being accepted widely by the market, led to further innovative products being manufactured.

The plant has also launched novel products like Anjani Mix, (a cement and dry sand mixture). An excellent dealer network supports the Company encompassing the majority of the districts in Andhra Pradesh. The company’s dynamic sales team offers complementary support in the form of after-sales services.

History M/s. Anjani Portland Cement Limited (APCL), formerly known as M/s. Shez Cement Limited was set up in the year 1983 at Chintalapalem Village in Nalgonda District of Andhra Pradesh.

The unit was set up in technical collaboration with Nihon Cement Company of Japan. This Rotary Kiln Plant 34

2010

has the distinction of being one of the most modern plants in the mini-cement sector in the country. ‘The State of art’ machinery includes a 5-stage suspension pre-heater rotary kiln with a pre-calcinater.

In the year 1999 K.V. Vishnu Raju, erstwhile Managing Director of M/s. Raasi Cement Limited and now CMD of APCL, along with their associates took over the management control of the ailing Company. Under the new management the plant commenced commercial production within nine months of takeover, on 29th December 1999.

The very first batch of Clinker that was produced attained standard quality, in spite of the machinery being idle for more than 10 years.

The plant faced initial teething problems during the first six months of production. Certain modifications were carried out in the different areas such as kiln feed system, pre-calcinater, secondary firing and cooling system.

Even during the tough times after taking over, the company was able to retain all experienced technical and marketing personnel who supported the company during this critical period.

“After 2005 the cement industry was in uptrend and we were able to debug the plant operations to increase our production capacity and improve our dispatches from 3 lakh tonnes to 5.25 lakh MT annually,” said Raju.

The past track record of the Management who were responsible for building Raasi brand in Andhra Pradesh, the goodwill amongst Cement Dealers, Builders and Construction companies in Andhra Pradesh has helped Anjani establish itself as a superior brand in the State within a short span.

New Cement Plant in Karnataka Anjani Portland Cement Ltd is coming up with another Greenfield project - Anjani Cement Karnataka Ltd, with a production capacity of 1 million tonnes per annum, in Bijapur district of Karnataka.

The government and regulatory clearances for this new project have already been obtained; the project has been floated with main focus on expansion and future growth of Anjani Portland Cement Ltd to increase total production capacity to 5 million tonnes in the next 3 years, with interState presence of its operations. The move to locate in Karnataka is to tap into the cement demands of Karnataka and surrounding states. “With this new location we will be able to cater to Karnataka, Maharashtra and Goa, while our setup in Andhra Pradesh covers Andhra, Orissa and Tamil Nadu,” said Raju.

This move will also help in a regularised market for the Company as the cement industry is very region specific

Thus the company has achieved a phenomenal growth within a short span of 9 years. Raju added, “All this was made possible due to lot of additional investments made for upgrading the plant & technology by adding RABH, Elevators, Deep Pan Conveyer, Dust Collectors, and LNV Separators etc.”

Subsequently the plant stabilized and attained 100% production capacity in the first full year of operations. This has led to substantial reduction in coal and power consumption.

Anjani Cements 1000 T.P.D. Rotary Kiln plant is running above the rated capacity and is producing approximately 5 Lakh tonnes of cement per annum.

Expansion of Cement Plant To meet the growing demand, Anjani started the expansion of its plant with a New Line to increase the production capacity to 1.3MT and completed the expansion programme in a record time of 16 months.

The New LINE-2 commissioned operations in March 2010. Anjani has commissioned the second line with clinker capacity 1500 T.P.D. and cement capacity of 7 Lakh tonnes.

“At present the total capacity of Anjani Cement is 1.2 Million tonnes per annum and with this our turnover for the year 2010 -11 will be around Rs. 450 crores,” said Raju.

2010

K.V. Vishnu Raju, CMD, APCL

35

with prices adjusted to demand and supply in the region.

APCL Subsidiaries Vennar Ceramics Limited (VCL) was established in the year 1998 and became a wholly owned subsidiary of Anjani Portland Cement Limited in the year 2001. The company has the distinction of being the first Gas- Based Power Generating Plant in India with a capacity of 2.7 Megawatts. VCL believes in green technology and therefore by generating power from gas will not pollute the environment as other conventional sources do. The company caters to about 55% of the power requirement of the parent plant. “We are also in the process of setting up a thermal power plant of 18-20 MW for our cement factory in Nalgonda,” said Raju.

Incorporated in the year 1986, Hitech Print Systems Ltd., (HPS) has been in the business of providing high quality secure printing solutions. The Company had been acquired by Anjani Portland Cement Limited in the financial year 2007 as a wholly owned subsidiary.

The Company’s primary business has been, printing Business Forms, Security Documents, Onserts, OMR & ICR Forms, etc. Hitech is ISO 9000 certified and is approved by I.B.A. for security printing for the last 19 years. Hitech has the distinction of being the First Company to Introduce Variable Data Printing in 1997 and is targeting turnover of Rs.100 crore by 2012.

Apart from the industries the Management runs a host of educational institutions on philanthropic lines under Sri Vishnu Educational Society. The society runs 2 campuses, one in Bhimavaram West Godavari District and another in Narsapur in Hyderabad for providing Quality Education in professional courses like Engineering, Pharmacy, Dental, MCA, MBA etc.

Unique Initiatives Anjani Powder Research Centre has been a major initiative by Anjani Cement Group as part of its continuous innovations.

Raju shared, “The centre was established on November 4th, 2009 and is fully equipped with state-of-theart research 36

and testing facilities to carry out the complete physical and chemical analysis of the cement quality of Anjani Cement Brand vis-à-vis other cement brands on regular basis to continuously innovate and improve our product quality.”

Anjani Powder Research Centre also caters to the needs of other powder based manufacturing companies like Pharmaceuticals, Paints, Ceramics, Glass etc. to test and analyze their Quality Standards.

Dr. B.V. Raju Institute of Cement Technology APCL is also setting up a technical manpower training institute as a tribute to Padmasri Dr. BV Raju, who is considered to be the Doyen of the cement industry in India. Raju said, “He was the promoter of the first cement company – Raasi Cement in Nalgonda cluster, which was a trendsetter and led to many more cement companies being set up in South India.”

The institute is named BVRICT – BV Raju Institute of Cement Technology, training 30 people with skilled expertise to be employable for the cement industry, apart from conducting short term refresher courses on the latest trends in cement industry. Anjani’s ultimate aim is to transform this institute into a Centre of Excellence.

Anjani Mobile Concrete Solutions Van The mobile solutions concept was developed to offer technical solutions at the place of construction where Anjani cement is used to test the quality standards etc. with fully equipped mobile testing facilities in the van.

Anjani Cement Studio Another one of Anjani’s unique initiative has been to setup a Cement Studio in the Corporate Office to show case the cement products, online bookings, display of manufacturing processes etc.

2010

Awards APCL was ranked No.1 as the Fastest Growing Cement Company by Construction World during the 7th Construction World annual awards 2009. Inc India awarded APCL the certificate of achievement for demonstrating exceptional innovation and perseverance in attaining 225th position among India’s 500 best performing mid-size enterprises. Anjani Portland Cement Limited received the Supply Chain Leader award in cement segment in March 2010 from 9.9 Media. APCL has been continuously receiving awards from APPCD for environment protection.

Financials Year Ended (In Lakh Rupees) 31.03.2009

31.03.2008

31.30.2007

Gross Sales

16599.51

13553.16

8892.70

Net Sales

12916.74

16306.80

6724.70

Profit Before Tax

2534.42

2304.89

1253.78

Profit After Tax

1667.26

1631.12

1250

E.P.S

9.07

8.87

6.80

The Company’s projected turnover for the year 201011 with the addition of the new capacity would be around 450 crores. Raju said, “For the last 3 years Anjani Portland Cement Ltd has announced respectable dividends and would continue to enhance our share holders’ value in the coming days.”

Future Vision The present production capacity of Indian Cement Industry is 232 million tonnes and the capacity additions will be 40 million tonnes every year for the coming next 2 years. At present India is the second largest cement producer in the world. The growth of cement industry for

the past 3 years has been excellent, growing at more than 10% per annum and it is expected to continue the same way for the next one decade. Due to the focus of Government in building of infrastructure (ports, airports, four lane highways, power plants, reservoirs etc) and also due to boom in the economy, growth in residential housing will also increase. Raju stated, “With our focus in building Anjani brand, we would like to be the market leader in A.P. We want to create customer delight, with our existing prospective customers with consistent quality & service.”

With the abundance of limestone deposits in the state, Andhra Pradesh in the near future will supply cement to all over the country. Raju said, “Andhra Pradesh is producing the maximum number of cement brands, ranging from small players to the biggest in the market. We focussed on a few districts initially and built our brand image; now we are supplying to states outside of Andhra also.” Anjani group of companies had estimated a turnover of Rs.180 crores for 2009-10, and is now looking at doubling that for 2010-11.

Corporate Social Responsibility Raju said, “We have taken up lot of Corporate Social Responsibility activities in and around the plant which has given tremendous goodwill to the company and the brand.”

Anjani cement has been in the forefront and highly committed for its neighbourhood and community developments ensuring a clean and healthy environment in and around the plant. The company has so far spent nearly Rs. 10 Crores on social and community development for providing education and running an English Medium High School up to 10th standard for the neighbourhood, building ‘pucca’ houses for the poor, laying of roads in villages, providing public health and nutrition, providing drinking water, conducting health camps, old age pensions, renovation of temples churches, mosques etc. ❑

SVS Shetty(L), CEO, Anjani Portland Cement Ltd receives the Fastest Growing Cement company from Kamal Nath, Union Minister for Road, Transport & Highways.

2010

37

Aurobindo Pharma Limited

The

Skilled Healer “APL is poised to emerge as one among the top generic pharmaceutical companies in the world”

INDIA’S AUROBINDO PHARMA LIMITED (APL), ONE OF ASIA’S BIGGEST PHARMA COMPANIES, HAS TARGETED TO CROSS $2 BILLION IN REVENUES BY 2014. EMERGING FROM A PHASE OF TRANSITION, APL HAS BEEN REGISTERING SIGNIFICANT GROWTH OVER THE PAST SEVERAL QUARTERS. THE COMPANY OFFERS A PROMISING BUSINESS MODEL IN MANUFACTURING GENERIC FINISHED DOSE PRODUCTS, ACTIVE PHARMACEUTICAL INGREDIENTS (APIS) AND CONTRACT RESEARCH & MANUFACTURING.

O

ver the years, the company has organically transformed itself from a low-margin API manufacturer to a high margin formulations player and has emerged as a leading integrated pharmaceutical manufacturer from India. APL’s core strengths lie in its wide diversified basket of more than 300 products encompassing many key therapeutics such as CardioVascular, Neurological, Gastroenterological, Anti-Diabetic, Anti-Retroviral, Antibiotics and AntiAllergic. These products are manufactured in its own large state-of-art manufacturing facilities, which are approved by USFDA, UKMHRA, WHO, MCC-SA, ANVISA-Brazil, TGA-Australia for both Formulations and APIs. It has a strong pipeline of abbreviated new drug applications (ANDAs) and dossiers for generic formulations and drug master files (DMFs) for APIs in the US, Europe and Rest of World countries. The company is also a niche

38

player in Anti-retrovirals (ARV) with the biggest basket including number of combination and paediatrics products and leveraging its strength by actively participating in global tenders floated by PEPFAR (President’s Emergency Plan for Aids Relief), Clinton Foundation, WHO and various country specific agencies among others.

The company has been exporting to over 125 countries with more than 70 percent of revenues coming from international operations. Recently it has received the “Outstanding Export Performance Award” for the year 2008–09 from Pharmaceuticals Export Promotion Council of India (Pharmexcil) set up by Ministry of Commerce & Industry, Government of India, in recognition of commendable performance in the exports of pharmaceuticals in the category of Formulations from India.

APL has one of the biggest R & D base in India focused on developing

intellectual properties in non-infringing processes and resolving complex chemistry challenges. The company has technological expertise in complex chemistry, products development and bio-studies. It has attained specialty formulations know-how for sustained release, paediatrics and fixed dose combination products and a competitive edge in sterile injectables.

The company with its employee base of over 8000 including a large pool of over 700 scientists has laid a strong foundation for sustained organic growth. In terms of revenues the company is looking to deliver revenues of USD 2 billion by 2014.

The company though young in its presence in the US market has been gaining critical mass with commercialization of new products and growing market share of launched products. Within a short span of time it has established strong relationships with different distribution channels such as wholesalers, warehousing chains, retailers and mail orders. In US it has developed and filed more than 170 ANDAs (Abbreviated New Drug Application) out of which over 116 products have been approved by the USFDA as on date. The company 2010

has commenced its manufacturing facility located in New Jersey, which will cater to the need of local market through institutional sales and also will manufacture controlled substance products.

APL has also been ramping up its European presence in key generics markets such as UK, Netherlands, Italy, Germany and Portugal. The company has forayed into the European market having acquired Milpharm in UK, Phar-

macin in Netherlands and TAD in Italy, in its effort to penetrate in these markets. These companies’, large basket of marketing authorizations with local distribution network, has enabled APL to establish its footprints in the European market. The company is augmenting European operations through Malta in dossier licensing operations, Quality Control /Quality Assurance, packaging and centralized warehousing for Formulations distribution pan Europe.

With the expiry of patent protection, the slowdown in innovator product pipeline to replace such off patent products has been driving generics growth. APL leveraging on its huge IPR depth, manufacturing width, quality focus and low cost advantage has provided an opportunity to enter into strategic partnerships with Big Pharma MNCs by licensing its products and entering into long term supply arrangements for the same for generics and branded markets such as US, Europe, Australia, New Zealand, Canada and over 100 other emerging markets. APL has struck the biggest licensing deal to distribute generic and 2010

branded products across the globe with Pfizer, world’s largest manufacturer of pharmaceutical products.

cycle. This division of the Hyderabad based company is uniquely poised to deliver:

APL over a period has emerged as large injectable player in the pharmaceutical market. It has its own dedicated Cephs and SSPs Injectable plants. Recently APL has acquired non-betalactum high value injectable plant from Trident life sciences limited, which has been merged into its operations. The facility specializes in manufacture of general injectable range of formulation products including glass vials for

Fully consolidated or customized manufacturing solutions for Active Pharmaceutical Ingredients (APIs), Intermediates, Pre-Formulations and Formulations across each stage of the pharmaceutical life cycle;

lyophilized sterile powder, ampoules, pre-filled syringes and blow-filled seals. The acquisition provides APL an opportunity to strengthen itself in the high growth injectables space and further enhance its capabilities in providing comprehensive Pharma manufacturing, distribution, services and solutions to its clients.

The injectable business will provide a strong growth driver for the company.

Giving the details of the company’s ongoing expansion plans, K Nithyananda Reddy, Managing Director, APL said, “The major capex phase of the company is over as we have already built up a huge capacity to cater to the potential growth in generic market”.

Regulatory, Research and Development Expertise from the pre-clinical stage through the post patent expiry phase in drug development;

Premium solutions for product life cycle management including life cycle extensions and line extensions.

AuroSource is setting up a modern R&D facility at Pashamylaram with investments of Rs 75 Crores. This facility will focus on Chemical Research initially and will be offering services in fields such as medicinal chemistry and other discovery services. The facility will commence in a year and will be housing another 200 to 220 scientists.

APL recently unveiled AuroSource, a service oriented and customer-centric division within the company that will provide Custom R&D and Manufacturing Services (CRAMS) for large, mid-sized and emerging biotech and pharmaceutical entities globally.

“AuroSource is uniquely positioned to smoothly transition our competence in drug development to customers within this market segment.

We stand to become an invaluable partner in enabling them to streamline and simplify their development and manufacturing processes so they can focus primarily on creating life-saving, low-cost products and contribute to making global healthcare more affordable,” says Reddy.

AuroSource will partner with these companies and cultivate opportunities to research, manufacture and develop compounds across the entire drug life

AuroSource officials recognise that this is a critical time to enter this market. Impending reforms in the U.S. healthcare market have exposed

New Initiatives – AuroSource

39

Penams is a high end subclass of the broader ß-lactam family of antibiotics and related compounds. Major players from the Indian market are Ranbaxy and Orchid.

a need for contract manufacturing services. Large pharmaceutical manufacturers are reducing their capabilities and consolidating their outsourcing needs for pharmaceutical intermediates and formulated API’s (Active Pharmaceutical Ingredients).

The growth of consolidated trustworthy suppliers creates an untapped market for contract manufacturing services as AuroSource will provide.

The AuroSource team will be in an advantageous position as APL has commercialized more than 200 APIs and 120 Finished Drug Products which sets the stage for a successful contract service provider.

New Initiatives – Oral Contraceptives and Penams APL’s goal is to emerge as one of the top pharmaceutical companies in the country and also secure a prominent place among the top generic players in the world in a span of 3-5 years.

In its new initiatives, APL is focussing on niche business segments.

At present, APL is constructing additional self contained block for production of oral contraceptives for highly regulated markets at cost of Rs 40 crore in the SEZ near Jadcherla, about 60 km from Hyderabad Airport.

The company is also setting up on its existing land and building situated at Bhiwadi ( ~ 70 Kms from Delhi by road) Generic Formulation Manufacturing Unit

K Nithyananda Reddy, MD, APL 40

backed by dedicated API –sterile block to produce 4th generation high end antibiotics – Penams Powder Injectables dosage forms in vials initially for emerging export markets and domestic markets.

The project is expected to commence by 3rd quarter FY11. The plant needs about 50 persons. Additional investment is about Rs 35 Crores funded through internal accruals.

Penam range of products includes Imipenam, Mereopenam.

By next year APL would not have any significant borrowings other than its normal working capital loan. All outstanding FCCBs would be either converted into shares or redeemed. Now outstanding FCCBs are to the tune of $160 million in 3 tranches.

The company has bought back USD 62 million and the first tranche of the FCCBs stands converted. Some of the FCCBs are in money and some tranches have maturity to next year. Company is confident of its performances and in the eventuality of shortfall, if any, the company is uniquely positioned with its strong balance sheet.

APL is likely to enter the Canadian market by this year-end when Health Canada, a department of the Canadian government with responsibility for national public health, is expected to approve at least 25 of the 80 products the company has filed for approval. “So far, Health Canada has approved 12 of our products. We want to have a basket of at least 25 approved products to launch our operations in Canada,” Reddy added. ❑ 2010

Bharathi Cement

Cementing Tall “BHARATHI CEMENT HAS A WIDE RANGE NETWORK IN SOUTH INDIA WITH 1185 DEALERS AND OVER 2000 SUB-DEALERS.”

BHARATHI CEMENT, HEADQUARTERED IN HYDERABAD, ANDHRA PRADESH SET UP A CEMENT PLANT USING STATE OF ART TECHNOLOGY FROM

FLSMIDTH

& LOESCHE AT NALLALINGAYAPALLI (VILLAGE), K AMALAPURAM (MANDAL), K ADAPA (DIST), ANDHRA PRADESH IN SEPTEMBER. 2009. BHARATHI CEMENT SUPPLIES CEMENT TO SIX STATES IN

SOUTHERN INDIA - ANDHRA PRADESH, TAMIL NADU, K ARNATAKA, KERALA, MAHARASHTRA AND GOA.

B

harathi Cement is a company that has been promoted by the Sakshi Group, which has interests in media and power.

It is controlled by Y.S. Jagan Mohan Reddy, the Member of Parliament (MP) from Kadapa and son of former Andhra Pradesh chief minister Y.S. Rajasekhara Reddy. Apart from the Sakshi group, Bharathi Cement has been co-promoted by India Cements Ltd., Dalmia Cement (Bharat) Ltd. and N. Prasad, vice-chairman and founder

42

of Matrix Laboratories Ltd. The Sakshi group bought Raghuram Cements in 2007 and renamed it Bharathi Cement.

Recently, French cement biggie Vicat was planning to acquire a 51% stake in Bharathi Cement Company Ltd. Bharathi Cement has already invested Rs 700 crore in setting up a cement manufacturing capacity of two lines with 2.5 million tonnes per annum (mtpa) in Kadapa district of Andhra Pradesh, with plans to increase this to 5 mtpa by the end of 2010.

“Bharathi Cement set up its 1st Production Line with a capacity of 2.50 Million Tonnes Per Annum at Nallalingayapally Village, Kamalapuram Mandal, Kadapa District of Andhra Pradesh and started operations from September 2009. The 2nd Line of 2.50 Million Tonnes Capacity will be ready by end of 2010. The total capacity would be 5.00 Million Tonnes Per Annum. Bharathi Cement

has implemented latest technology in the world. Kiln and Cooler is supplied

by FLSmidth Finland, VRM Raw Mill and VRM Cement Mill supplied by LOESCHE, Germany. The VRM cement mill is 360 TPH, which is largest cement mill in the world,” said Harish C Kamarthy, Executive Director, Bharathi Cement.

Facility Bharathi cement corporation Limited has set up a modern cement plant with state-of-the-art technology at Nallalingayapalli, Kamalapuram mandal, Kadapa district of Andhra pradesh.

“This area is known for its superior quality Narzi lime stone deposits, possessing high lime content that gives high early strength and ultimate long term strength. Another characteristic feature of this lime stone is low alkali, magnesia and low chloride contents which are highly desirable parameters for concrete durability.

2010

The state of the art technology adopted at the plant consists of Vertical Roller mill of LOESCHE, Germany for grinding of cement to achieve the optimum fineness, and controlled particle size distribution of cement particles,” said Kamarthy.

Robotic Labs

German Technology

QCX/RoboLab

The Bharathi Cement plant has the most advanced Vertical Roller Mill (Type 63.3) from LOESCHE, Germany.

This mill has a capacity of producing 360 tonnes per hour and is equipped with a 6,700 KW gear box.

A typical QCX/RoboLab configuration consists of a standard industrial robot placed in the centre of a circular arrangement of sample preparation and analytical equipment. Samples normally arrive automatically from the connected automatic sample transport system, but may also be entered via operator sample conveyors or special input/output magazines.

The mill is designed to produce a range of high quality cements such as Ordinary Portland Cement (OPC), Portland Pozzolona Cement (PPC),Pozzolona Slag Cement (PSC) and Ground slag at varying fineness. It has a rated capacity of 360tph OPC at 3000 Blaine and 300tph of ground slag at 4000 Blaine.

VRM Cement mill-The largest in the world Loesche vertical roller mills are the most efficient mills in the world and achieve very high throughputs. They are extremely maintenance friendly.

Service tasks can be carried out quickly. Downtimes are reduced to a minimum.

The Loesche grinding principle combines a horizontal grinding table with large tapered roller under hydropneumatic loading- the best possible compromise between output and wear. The product quality can be enhanced by altering the classifier speed. All Loesche mills can be started with grinding rollers raised. Metal to metal contact between grinding parts does not occur. Their quiet, smooth operation is appreciated.

“Bharathi Cement has got abundant mining land at Nallalingayapally and its infrastructure is the best in the industry. We have also created facility of Railway Siding inside the Plant. Facilities are created to dispatch cement by Rail/Road. We can dispatch cement by bulk and also varieties of packed cement,” said Kamarthy.

2010

Bharathi Cement has also established a Robotic Lab at the Factory, which tests all Raw Materials, Clinker and Finished Product of Cement at regular intervals. This facility is first of its kind in India.

QCX/RoboLab offers a very high flexibility in terms of the number and types of equipment handled by the robot. Supported, fully automated preparation & analysis disciplines relevant to the cement industry include powder or fused bead preparation for X-ray analysis, particle sizing by laser or by conventional sieving, colour analysis, Carbon/Sulphur/Moisture combustion analysis, physical testing and collection of shift/daily composites.

For the typical cement lab project a throughput capacity of 10-20 samples will apply; but higher numbers in one robot cell are achievable.

The QCX computer integrates the system components.

THE BHARATHI CEMENT PLANT HAS THE MOST AD-

VERTICAL ROLLER MILL (TYPE 63.3) FROM LOESCHE, GERMANY. THIS MILL HAS A CAPACITY OF PRODUCING 360 TONNES VANCED

PER HOUR AND IS EQUIPPED WITH A

6,700 KW GEAR

BOX. THE MILL IS DESIGNED TO PRODUCE A RANGE OF HIGH QUALITY CEMENTS.

It identifies incoming samples, downloads the relevant sample-handling specification and controls all intelligent devices in the configuration.

Sequence control includes priority handling, intelligent handling of equipment failure situations and much more. QCX/RoboLab (and QCX/AutoPrep) provides high quality in sample preparation p p and analysis. Quality not only meets the performance o o of ‘the very best lab techniccian’, but is highly consistent o over time. Thus, there are n no fluctuations from shift to shift in analytical levels due to small differences in the practical procedures undertaken by human operators.

Harish C Kamarthy, ED, Bharathi Cement.

43

Tamper-Proof Packing When cement bags are dumped on the ground, the impact causes cement to spill out of the bag. This causes considerable loss, considering that some projects require thousands of bags, but you incur no such loss with Bharathi Cement.

Bharathi Cement is packed in fully imported, tamper-proof PP laminated bags, which do not allow the minutest of cement particles to spill. This ensures accurate weight and also eliminates any possibility of pilferage.

This technique of packaging is also eco-friendly.

“This is tamper proof packing where customer is getting 100% good quality cement and there is no chance of adulteration. The Austrian Technology is used for packing material. Normally cement bags are packed in stitched PP Bags, where there is a chance of adulteration by removing stitches and again they can be restitched. This is not possible with PP Laminated bags,” said Kamarthy.

Plans Bharathi Cement which launched in Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and Pondicherry Markets now has plans to enter Maharashtra and Goa. “Bharathi Cement has got wide range network in South India. At present we have 1185 Dealers and over 2000 Sub-dealers. We have 12 Branches in South India. All the major cities and important Towns have Stock Points to arrange quick delivery to customers. We also have 105 members of dynamic Marketing Team to give services to customers and dealers. At present we are producing OPC 43 Grade, OPC 53 Grade 44

and PPC. We are going to start PSC production shortly to cater all market segments,” said Kamarthy.

Bharathi Cement also gives Technical Support and Customer Service to many Customers. The company has deployed Mobile Vans to reach customer points and provide knowledge on best construction practices from the globe, like testing of cement and training of Masons etc.

“Within a short period we could reach 80% of the capacity utilisation in the month of March 2010. We have launched our products in a premium segment of “A” Category Brand.

In view of good quality and innovative tamper proof packing, we could establish in the market in a premium segment. Bharathi Cement is also providing direct employment to 600700 people and also indirect employment to more than 2000 persons,” said Kamarthy.

“

AT PRESENT WE HAVE 1185 DEALERS AND OVER 2000 SUB-DEALERS. WE HAVE 12 BRANCHES IN SOUTH INDIA. ALL THE MAJOR CITIES AND IMPORTANT

TOWNS HAVE STOCK POINTS TO ARRANGE QUICK DELIVERY TO CUSTOMERS.

WE ALSO

105 MEMBERS OF MARKETING TEAM TO GIVE HAVE

SERVICES TO CUSTOMERS AND DEALERS.

CSR

”

Bharathi Cement is also extending Accidental Insurance facility for Masons @ Rs.1.00 Lac Per Mason purely on humanitarian grounds and also to discharge social responsibility of business.

To accord impetus to Corporate Social Responsibility, Bharathi Cement also adopted Nallalingayapalli Village and provided Street Lights, School Building, Cement Roads and other basic amenities to the people of the village.

“At Bharathi Cements, our commitment to quality makes us go beyond. We at Bharathi Cement have Mobile Construction Advisers.

With a full-fledged technical team, this service brings you best construction practices from the globe.

The Mobile Construction Adviser further offers concrete lab services, concrete cube testing, training for masons and site supervisors,” said Kamarthy. ❑ 2010

Catholic Syrian Bank

Smart Banker “The bank aims to attain a business target of Rs.30000 crore

by March 2012”

C

atholic Syrian bank (CSB), the oldest private sector bank in Kerala has over the last 9 decades transformed itself into a pan India financial supermarket. CSB was one of the first banks to start computerisation way back in 1975. The Bank has developed a Centralised Banking Solution jointly with a reputed software company and all the branches of CSB are under CBS platform. For providing doorstep banking facility to customers, mobile ATMs have been introduced at 7 major locations in south India. The Catholic Syrian Bank Ltd. was formed at Thrissur, the cultural capital of Kerala in the year 1920. During the last 9 decades, CSB became a Scheduled Bank in the year 1969. In 1972 it came out of its traditional bastion and opened its first branch in Chembur, Mumbai.

“A Class” Scheduled Bank status was attained by the Bank in the year 1975 and it entered the field of International Banking in the same year. For development of its human resources and equipping the staff to adapt to the fast changing environment a staff training college was also set up during the year.

“With nearly 80 percent of branches situated in rural and semi urban areas, CSB enjoys unstinted support and confidence of its customers. We have been privileged to serve more than 3 generations from the same family as our customers. CSB believes in providing customised banking solutions to our clients. Accordingly we have designed various tailor made products like CSB Students Support, CSB Women Support, CSB Farmer support, CSB Social Support etc for catering to the specific needs of various sections of society. With products ranging from students support to health care and pension, CSB now covers the entire financial needs of an individual during his life cycle,” said V.P Iswardas, Managing Director and Chief Executive of Catholic Syrian Bank.

46

Thrust areas Since 80 percent of the branches of CSB are in rural and semi urban areas, retail banking has been the major business driver for CSB. Recently the bank came out with a gold loan scheme - CSB Ezee Gold - under which advance at a higher rate per gram at a lower rate of interest was granted to customers. “The intention of launching such a scheme is to liberate the public, especially rural people from the clutches of private money lenders. Agricultural advances and advances to SHGs also would be our thrust area,” said Iswardas.

On the deposit side, increasing the client base and CASA portfolio is the bank’s top priority. “We also plan to implement the business correspondent model for providing financial facilities for the economically under privileged people of the society,” said Iswardas.

Presence Currently the bank has presence in 364 locations spread across 16 states. The bank is not yet in any foreign location.

Latest activities The Bank has developed a Centralised Banking Solution jointly with a reputed software company. To cater to the needs of its customers, CSB is providing seven-day Banking facility at select centers.

The Bank has recently introduced ‘CSB…Any Time SMS’, an interactive real time SMS alerts facility to have the information regarding the account readily available on the fingertips at any time for the customers. The bank has also introduced ‘CSB…Upahaar’ – VISA enabled Gift cards .

2010

The bank is acting as the Corporate Agent for Birla Sun Life Insurance Company Ltd. for life insurance and New India Assurance Company Ltd. and Export Credit Guarantee Corporation of India Ltd.(ECGC) for general Insurance.

“The Bank has associated with MoneyGram Inc.,USA and Wall Street Finance &UAE Exchange Centre & Financial Services for providing International money transfer service.

Tie- ups have been made with leading Asset management Companies, to distribute their Mutual Fund products. The Bank has launched an International Debit–cum-Shopping Card viz. ‘CSB..Global Support’, in association with VISA International, the world’s largest bankers card organization.

The Card holders can transfer funds to any VISA card holder in India, through Bank’s ATM, irrespective of the bank where the beneficiary is maintaining account,” said Iswardas. CSB already has a range of competitive products in Forex front and are upbeat on forex business. The bank has drawing arrangement with one Bank and 17 Exchange Houses. The bank has also introduced ‘NRI …Quick Remit Support’, which will enable relatives of NRIs to receive remittances from the relatives near to real time from abroad and the bank will be sending SMS message to the beneficiary about the remittance.

Recent achievements During 2009, the bank achieved 100% CBS connectivity.

The bank has installed two coin vending machines at the Railway Stations of Ernakulam and Thrissur.

Rs.1,200/- per gram at a very low interest rates. CSB… Swarna Nidhi is a new scheme, wherein the customer can approach bank for purchasing gold ornaments,” said Iswardas. As a helping hand to farmers, the bank has introduced a scheme called “CSB…Kisan Raksha Scheme” to provide financial assistance to the farmers who require funds for meeting their farming needs including repaying of high cost loans availed from non-institutional lenders for farming purpose. The features of the scheme include the following: Low Interest rates.

No margin is required.

Simple and hassle-free Flexibility in availing the facility.

Free accidental insurance cover for the principal borrower for the first year.

Latest financials During the Financial Year 2009-10 the total business of the bank grew by 14.26% and attained a level of 11500 crores. Deposits grew by 10.19% ( to Rs.7000 crore) and advances by 21.26% ( to Rs.4500 crore). Credit Deposit Ratio improved from 58.17% to 64.28% during the Financial Year. The CRAR of the bank as on 31st March 2010 stands by 10.82%. The gross NPA percentage and Net NPA percentage have been reduced and provision coverage rate has been increased to 71%. “The bank aims to attain a business target of Rs.30000 crore by March 2012,” said Iswardas. ❑

The bank has introduced Mobile ATMs at 7 centres, viz.

Thiruvananthapuram, Ernakulam Thrissur, Kozhikode, Coimbatore, Tirupur and Chennai.

The bank could mobilise more than 100000 fresh customers through the campaigns, which were held during 2009-10.

Latest schemes On the deposit front, the bank recently launched two Employee Group Savings Bank Accounts viz. Employee Suvidha Account and Employee Suvidha Plus Account, wherein employees can open group savings bank accounts with zero balance. A lot of freebies are also attached to the scheme.

“The bank has recently entered into tie up with UTI Technology and Services Limited for acting as PAN Service Agent for the distribution of PAN Cards to customers as well as to public. As per the arrangement, bank will collect applications from customers and general public and after processing the PAN cards will be delivered by UTITSL directly to the applicants. On the advance front, two new gold loan schemes viz. CSB…Easy Gold Cash was introduced and CSB…Swarna Nidhi was introduced. As per CSB…Easy Gold Cash Scheme, the customer could get upto 2010

Mr. V.P Iswardas MD & CEO, Catholic Syrian Bank.

47

Corporation Bank Limited

Banking Perfection â&#x20AC;&#x153;The bank has more than doubled its size in the last 3 years and its total business crossed Rs.1,50,000 crore as on March 2010â&#x20AC;?

48

2010

CORPORATION BANK’S PURSUIT OF VARIOUS

The Bank has continuously expanded its products/services to meet the surging customer expectations and changing market realities to emerge as a well-accepted brand catering to the needs of diverse segments of the society.

NATIONAL PRIORITIES HAS MADE IT ONE OF

Major Milestones & Achievements

THE FRONT-RUNNERS IN NATION BUILDING.

Corporation Bank was established in 1906 with an initial capital of just Rs.5000/-

SPANNING OVER 104 YEARS SERVICE, THE BANK HAS GROWN IN SIZE AND STATURE WITH 3500 SERVICE OUTLETS (1155 BRANCHES, 1145 ATMS & 1200 BRANCHLESS BANKING UNITS) SPREAD ACROSS THE COUNTRY.

O

ver the years, the Bank has been able to participate in nation building by empowering the rural and urban population alike and has taken several initiatives for the welfare of the society at large.

“Today, we are proud that we are significant contributors to the growth of the country’s economy. The Bank has set high standards in several thrust areas, including farming sector, MSMEs, infrastructure sector, education, professionals, traders and general public at large. Corporation Bank’s commitment as a responsible corporate citizen well reflected in its rural upliftment programmes and its priority sector operations. Corporation Bank was the first Public Sector Bank, which introduced the branchless banking concept in the remote corners of the country where normal banking facilities are not available to the rural folk. Apart from this the Bank has also taken several social welfare schemes and government sponsored programmes to support the weaker and backward sections of the community. Priority Sector lending of the Bank grew by 30.5% during 200910 and its share in adjusted net bank credit stood at 43.4% at the end of Mar’10 as against the mandated 40%,” said J M Garg, Chairman & Managing Director, Corporation Bank.

The Bank is having international presence through its Representative Offices in Dubai and Hong Kong. The Bank has an enviable track record in its financials and the Bank has been making profits since inception.

2010

The first branch of the Bank was opened at Kundapur in 1923.

In 1937 the Bank was included in the second schedule of Reserve Bank of India Act, 1934.

CORPORATION BANK WAS THE FIRST PUBLIC SECTOR BANK, WHICH INTRODUCED THE BRANCHLESS BANKING CONCEPT IN THE REMOTE CORNERS OF THE COUNTRY WHERE NORMAL BANKING FACILITIES ARE NOT AVAILABLE TO THE RURAL FOLK.

APART FROM THIS THE BANK HAS ALSO TAKEN

In 1980, the Bank was nationalized.

SEVERAL SOCIAL WELFARE

The Bank crossed Rs 1000 croredeposit mark in the year 1985 and launched into the 1990s with focus on high quality growth by embracing newer technology.

SCHEMES AND GOV-

In 1997, it became the Second Public Sector Bank in the country to enter capital market, the IPO of which was over-subscribed by 13 times.

BACKWARD SECTIONS OF

ERNMENT SPONSORED PROGRAMMES TO SUPPORT THE WEAKER AND THE COMMUNITY.

In 2006, Corporation Bank completed its 100 years of successful service, marking a memorable achievement in the history of the bank.

The Bank has many “firsts” to its credit - Cash Management Services, Gold Banking, m-Commerce, “Online” approvals for Educational loans, 100% CBS Compli-

J M Garg, CMD, Corporation Bank

49

ance and more recently, its pioneering efforts to take the technology to the rural masses in remotest villages through low-cost branchless banking - Business Correspondent model all of which symbolise Bank’s unswerving commitment to its customers to provide convenience banking.

The Bank has also marked its international presence by opening Representative Office at Dubai in Aug’2008 and Hong Kong in Feb’2009.

As on March 2010, the Bank has crossed the milestone figure of Rs 1,50,000 crore in total business and a customer base of over 10 million.

THE BANK PLANS TO CONTINUE AT THE SAME BRISK PACE AS IN THE NEAR PAST.

BANK’S TOTAL BUSINESS HAS CROSSED

RS. 1,56,000 CRORE AS AT MAR’10 AND IT IS MOVING STEADILY TOWARDS A BUSINESS FIGURE OF

RS 2 LAKH CR BY THE END OF FY 201011.

50

Technology is another area, where the Bank has made significant progress.

Bank’s customers can now avail latest tech products like net banking, SMS banking, fund transfer & Income Tax payment through ATMs, Cash card & travel card services etc.

“Corporation bank has done exceedingly well in the last financial year ending March 2010. The bank has more than doubled its size in the last 3 years and its total business crossed Rs.1,50,000 crore as on Mar’10, joining the league of strong mid sized banks in the country. The Bank registered a business growth of more than 27% during the last financial year. As on the last Friday of FY 2009-10, aggregate deposits of the bank registered a growth of more than 19%, as against the Scheduled Commercial Banks’ (SCBs) growth of 17%. The advances of the Bank grew by more than 36% against the SCBs growth of only 16.7%,” said Garg.

The Bank has also improved its delivery channels to reach over 3500 service outlets (including branches, ATMs & branchless banking units) spread across the country.

The Bank has adopted technology for aiding its Financial Inclusion initiatives, by introducing branchless banking concept through smart cards & other hand-held devices besides appointing Business Correspondents

(BCs) in the remote and far-flung corners of the country where normal banking facilities are not available to the rural folk. Moreover, with advanced use of technology like net banking, SMS banking, fund transfer & Income Tax payment through ATMs, Credit, Debit & travel card services etc., the Bank has witnessed unprecedented changes, all of which have resulted in heightened customer convenience. Befitting the occasion, the Bank won the “Best Bank Mid-Size 2009 Award” by Business World and PricewaterhouseCoopers Survey.

Future plans The Bank plans to continue at the same brisk pace as in the near past. Bank’s total business has crossed Rs. 1,56,000 crore as at Mar’10 and it is moving steadily towards a business figure of Rs 2 lakh Cr by the end of FY 2010-11.

“The Bank will give a major thrust to financial inclusion, financing of mSMEs, agriculture, and retail lending in the coming future. Marketing of various products will be intensified to acquire more customers as well as increasing cross selling of various products. The Bank is targeting women and the younger population to come into its fold in a big way. Customer centric and IT oriented products/services are some other areas, where the Bank is looking to increase its presence. Besides, we shall continue to focus on the infrastructure sectors for enlarging our business portfolio,” said Garg.

The Bank plans to open 200 branches (mostly in rural and semi-urban centres) as well as 200 ATMs in the next year. Branchless banking units will be increased from 1200 to 2000. ❑ 2010

ECIL

The Czar of Electronics

“In addition to valuable contributions to Strategic sectors, ECIL is in the forefront of crafting technology solutions to rural India”

ELECTRONICS CORPORATION OF INDIA LIMITED (ECIL) WAS SETUP UNDER THE DEPARTMENT OF ATOMIC ENERGY ON 11TH APRIL, 1967 WITH A VIEW TO GENERATING A STRONG INDIGENOUS CAPABILITY IN THE FIELD OF PROFESSIONAL GRADE ELECTRONICS. THE INITIAL ACCENT WAS ON TOTAL SELF-RELIANCE AND

ECIL WAS ENGAGED IN THE DESIGN, DEVELOPMENT, MANUFACTURE AND MARKETING OF SEVERAL PRODUCTS WITH EMPHASIS ON THREE TECHNOLOGY AREAS VIZ.

COMPUTERS, CONTROL SYSTEMS AND COMMUNICATIONS. OVER THE YEARS, ECIL PIONEERED THE DEVELOPMENT OF VARIOUS COMPLEX ELECTRONICS SYSTEMS AND PRODUCTS WITHOUT ANY EXTERNAL TECHNOLOGICAL HELP.

E

CIL has been a pioneer in the field of Electronics since its inception and scored several ‘firsts’ in its specialized areas of functioning. Prominent among them are the country’s first Digital 52

Computer, first OS with compilers, first Solid State TV, first Control & Instrumentation for Nuclear Power Plants, first Earth Station Antenna, first Computerized Operator Information System, first Radiation Monitoring & Detection Systems, first Automatic Message Switching Systems, first Operation & Maintenance Center For E-108 Exchange, first Programmable Logic Controller, first Solid State Cockpit Voice Recorder, and the country’s first Electronic Voting Machines.

“Spanning miniature components to mammoth systems and encompassing control, communication & computer technologies as thrust areas, today, ECIL is a multi-product, multi-disciplinary and multi-technology organization providing cutting-edge technology solutions in the strategic areas of Defence, Atomic Energy & process Control, Space and Astronomy, Electronic Security, IT & e-Governance etc.,” shared Y S Mayya, CMD, ECIL.

Defence For the last 40 years, ECIL has been supplying a wide range of professional grade components, equipment and integrated strategic systems to all the three wings of Armed Forces.

The contributions of ECIL in Defence Sector span from Secure and Jamresistant communications, Electronic Warfare Systems, Simulators, COMINT & Interception Systems, Antenna, SATCOM Systems and Networks, Stabilized platforms for air-borne Radars, C4I & Missile Support Systems, Encryption and Secrecy Systems, Electronic Fuses for battle field, Precision Electro-Mechanical Components, Sensors & Inertial Navigation Systems etc.

Atomic Energy & Process Control ECIL’s contributions in the Atomic Energy Sector date back to 1970 and ever since, ECIL has been supplying Control & Instrumentation, Radiation Monitoring and Detection Systems and several Safety and Process Con2010

trol Systems for Nuclear Power Plants.

“Today, all the Nuclear Power Plants across the country have the vital Instrumentation and Control systems engineered & manufactured by ECIL for their safe and reliable operation.

Several real time and on-line process control & SCADA systems have been supplied for Oil and Gas pipelines and also for Power plant Management,” said Mayya.

Space, Astronomy From suitcase terminals to mammoth 300-ton structure of 32M dia ISDN Antenna commissioned for the prestigious Chandrayaan Project of ISRO, ECIL is India’s preferred supplier of Antenna Products and SATCOM Systems for use on land, sea and air.

Backed by a vibrant R&D program, ECIL has built-up valuable product development and manufacturing capability covering Civil, Mechanical, Control, RF and Network domains.

Security Systems and Solutions ECIL is India’s premier security systems integrator and solutions’ architect. Systems designed and engineered by ECIL protect vital installations and premises all around the country. ECIL has been producing worldclass Radiation Detectors of state-of-the art technology that are

Y S Mayya, CMD, ECIL 2010

deployed in CBRN based security Solutions.

ECIL has been selected for providing integrated and comprehensive security solution for the Common Wealth Games to be held in New Delhi during Oct 2010. Some of the prestigious ISS projects successfully implemented

by ECIL include: securing the market places and the border check posts in New Delhi; Delhi secretariat; UP Vidhan Sabha; several strategic & sensitive locations like Parliament House, VVIPs’ office and residential premises; State Assemblies and secretariats; Nuclear Power plants; Reserve Bank of India offices; Advanced Systems Labs and DRDO etc.

IT, Telecom & e-Governance “In addition to valuable contributions to Strategic sectors ECIL is in the forefront of crafting technology solutions to rural India. Medical Vans equipped with latest digital X-ray and medical diagnostic equipments help to bring expert medical advice to villagers by facilitating on-line, satellite based communication of voice, video and data. ECIL has carried the benefits of IT to the door-steps of farming community by installing Kiosk based Farmer Information Systems in several Agricultural Market Yards. ECIL has provided end-to-end IT & eGovernance solutions in Banking, Commercial Taxes, Road Transport Authority, Municipal Corporations, Public Transport utilities, Healthcare & Hospital Management etc.,” said Mayya.

ECIL’s Electronic Voting Machines with their field proven simplicity, integrity and ruggedness have helped simplify the electoral process and strengthened democracy, setting a bench mark around the world.

ECIL is a Con-

sortium Partner in implementing the prestigious program, National Population Register.

Infrastructure As a supplier of equipment to the strategic sectors of the country such as defence, nuclear and space applications, the Company has modern infrastructure for Design, Manufacture, assembly, testing and qualification of instruments and systems with robust and rigorous quality systems aligned with the needs of specific sectors.

The Infrastructural facilities include CAD, ASIC/VLSI design; Hybrid Microcircuits and PCB manufacture, Automatic SMD Insertion Machines, On-line PCB Test Equipment, Antenna Test Range, Environmental Testing and Calibration Laboratories and Corporate Intranet.

Under XI plan funding by DAE, ECIL is establishing four major infrastructure facilities which include EMI/ EMC test facility, Compact Antenna Test facility, High-density PCB interconnect facility and a facility for calibration & characterization of Radiation Instruments & detectors.

The company has a human resource pool of over 4,800 personnel with a turnover of Rs. 1000+ Crores for the last few years with consistent profits.

While the turnover achieved during 2009-10 was about Rs. 1200 Crores, with a target of Rs. 1400 Crores for 2010-11, the company is poised for consolidation and rapid growth, capitalizing on the upsurge in the strategic sectors in the Country.

Award and Accolades: In recognition of the performance, ECIL had the proud privilege of receiving three Awards from the hands of Honorable Prime Minister of India on 15th October, 2009 viz. ‘MOU Excellence Awards for the year 2006-07 and 2007-08’ in the ‘Electronics and Communication Sector’ from Department of Public Enterprises and the SCOPE Award for ‘Excellence and Outstanding Contribution to the Public Sector Management 2007-08’ in the Medium PSE Category. ❑ 53

The India Cements Ltd.

Cementing itself Globally “The production target envisaged by India Cements for the year 2012 is around 13 million tonnes”

THE INDIA CEMENTS LTD. IS THE LARGEST PLAYER IN THE

SOUTH WITH 14 MILLION TONNES CAPACITY, 16% MARKET SHARE AND SEVEN COMPOSITE CEMENT PLANTS SPREAD OVER TAMIL

NADU ANDHRA PRADESH AND TWO CEMENT GRINDING UNITS – ONE EACH IN TAMIL NADU AND MAHARASHTRA. AN EIGHTH AND

COMPOSITE CEMENT PLANT OF

1.5 MT. CAPACITY IS ON R AJASTHAN

THE ANVIL IN

WHICH IS EXPECTED TO COMMENCE COMMERCIAL PRODUCTION DURING THE MIDDLE OF THE YEAR. THE

I

ndia Cements began its tryst with destiny in 1946 with the establishment of a Cement factory in Thalaiyuthu, an almost unmapped hamlet in Tirunelveli district of Tamil Nadu. From modest beginnings in 1949, when Sankar Cement made its first appearance in the market, it has grown hugely in size and reputation into a multifaceted organization whose activities span Cement, Power, Sugar, Trading and Finance.

Capacity Addition Over the last few years, The India Cements Ltd. have added 5 mt. capacity at various locations taking its total capacity to 14 mt.

The Company is also adding capacity of 1.5 mt. through its plant at Banswara, Rajasthan which is expected to be operational later this year. The total capacity would thus rise to 15.5 mt. by the fourth quarter of F.Y 2011-12.

GROSS TURNOVER OF THE

Future Business Dynamics

2008-09 WAS RS.3954.53 CRORES WHILE THE NET PROFIT RE-

“With expectations of a 7% GDP growth in 2009-10 and even better growth in 201011, the growth trajectory of the Cement industry is estimated to increase to 10 to 12% over the next few years. Economic

COMPANY IN

CORDED WAS OF THE ORDER OF 54

RS.432.18 CRORES.

growth and progress in the near future is expected to be fuelled by increased cement consumption driven by Government’s intense thrust on infrastructure spending and the demand for housing especially rural / mass housing,” said N Srinivasan, Vice Chairman & Managing Director, The India Cements Ltd. An investment of Rs.20,56,150/- crore is proposed in the XI Plan on infrastructure.

The Government is focusing on increased urbanization, road connectivity, ports, airports, railways and metros which augur well for the cement industry. In fact per capita cement consumption in India (150 kg.) including urban areas is less than what it is even in countries like Thailand and Vietnam (400 kg.). Thus there is a vast gap to fill and therein lies the opportunity.

“With the bunching up of capacity addition that has taken place in the recent years and also in pipeline, despite the double digit growth in demand, there is likely to be a surplus situation in FY 2011. However, this may vary from region to region depending on the demand from the region and the additional capacity coming up. The performance of the industry during FY 2011 de2010

pends on the likely availability of cement in the market. The capacity utilization of the industry is likely to be affected because of the infrastructural and other bottlenecks faced by the industry – like shortage of coal, power disruption and wagon shortage. From FY 2012, cement demand-supply situation is likely to balance, resulting in significantly improved performance of the industry,” said Srinivasan.

Recent Initiatives India Cements has recently raised $ 65 million through Quality Institutional Placement to meet the funding needs including for capital expenditure for ongoing expansion – a green field project in Rajasthan and two 50 MW power projects in Tamil Nadu and Andhra Pradesh and for reduction of debt. For its greenfield project of 1.5 mt in Rajasthan, the company has acquired about 61% stake in Indo Zinc Ltd. This project is expected to be commissioned during JulySeptember, 2010.

The Company is in the process of setting up two 50 MW power projects one each in Tamil Nadu and Andhra Pradesh. Power generated from these projects will be used for captive purposes, which in turn will reduce operational costs.

With the proposed addition of 100 MW, the company will have 200 MW of Captive Power.

“The company is also actively pursuing the possibility of acquiring a Coalmine in Indonesia to meet its coal requirements. The deal is expected to be finalised in the very near future.

This

coupled with the two ships already acquired by the company is expected to protect it from fluctuation in energy prices and shipping freight rates. The company would be raising funds to the extent of Rs.1200 crores in FY 2011 and FY 2012 to meet its expansion programme, setting up of power plants and retiring some debts,” said Srinivasan.

Financials 2008-09 After two years of record production and capacity utilization of 105%, the Company’s performance in terms of production at its plants suffered a marginal set back on account of unscheduled breakdowns at some plants, planned stoppage of one of the kilns at Vishnupuram for upgradation, delay in some of the upgradation projects and restriction in power availability from the grid both in Tamil Nadu and Andhra Pradesh. Cement production during 200809 was 91.11 lakh tonnes while the gross turnover of the Company was Rs.3954.53 crores up by 10% against Rs.3595.48 crores. The operating profit was lower at Rs.1043.20 crores as compared to Rs.1120.13 crores while the Net profit after providing for interest, depreciation and tax dipped to Rs.432.18 crores as against Rs.637.54 crores in the previous fiscal.

Financials 2009-10 The sale of cement for the period nine months ended December 2009 was at 75.50 lakh tonnes as compared to 67.93 lakh tonnes, an increase of 11%. The company was able to achieve a sale of clinker of 4.62 lakh tonnes during the period under review as compared to 0.02 lakh

INDIA CEMENTS HAS RECENTLY RAISED $ 65 MILLION THROUGH QUALITY INSTITUTIONAL PLACEMENT TO MEET THE FUNDING NEEDS INCLUDING FOR CAPITAL EXPENDITURE FOR ONGOING EXPAN-

– A GREEN FIELD PROJECT IN R AJASTHAN AND TWO 50 MW POWER PROJECTS IN TAMIL NADU AND ANDHRA PRADESH SION

AND FOR REDUCTION OF DEBT

N Srinivasan, VCMD, The India Cements Ltd

2010

55

THE FUTURE PLANS OF THE COMPANY INCLUDE THE COMMISSIONING OF THE CEMENT PLANT AT

RAJASTHAN, SET-

TING UP POWER PLANTS IN TAMIL

NADU AND ANDHRA PRADESH AND THE ACQUISITION OF A COALMINE IN INDONESIA. THE PRODUCTION TARGET ENVISAGED BY THE COMPANY FOR THE YEAR

2012 IS AROUND

13 MILLION TONNES

tonnes in the relevant period of the previous year and the overall sales was smartly up by 18% at 80.12 lakh tonnes as compared to 67.95 lakh tonnes. The operating profit before interest and depreciation for the nine months ended December 2009, was lower at Rs.724.68 Crores (804.60 Crores). The depreciation charges were higher at Rs.171.55 Crores (150.02 Crores) while the interest charges were up at Rs.105.77 Crores (Rs.77.16 Crores) consequently the net profit was at Rs.447.36 Crores as compared to Rs.577.42 Crores in the same period of the previous year.

“The company registered 38% increase in sale of cement and clinker during the quarter ended 31st December, 2009 as compared to the corresponding quarter of the previous year and this additional volume arising out of the company’s expansions and upgrades have enabled the company to combat the effects of crashing cement prices. However, due to a steep fall in cement prices in southern region, the net realization registered a substantial reduction which resulted in lower profitability of the company for the quarter under review,” said Srinivasan.

Future Plans & Production “The future plans of the company include the commissioning of the cement plant at Rajasthan, setting up power plants in Tamil Nadu and Andhra Pradesh and the acquisition of a coalmine in Indonesia. The production target envisaged by the company for the year 2012 is around 13 million tonnes,” said Srinivasan.

Corporate Social Responsibility The Company has over the past five decades been playing a significant role in enhancing the quality of life of people in the areas surrounding its cement plants.

The areas of Corporate Social Responsibility covered by the Company comprise Education, Health Care, Sports, Community welfare, renovation of Temples / Churches Mosques and calamity relief. The Company in 1996, in order to widen its educational vistas promoted TS Narayanaswami College of Arts and Science at Navalur on the outskirts of Chennai. The College which offers a plethora of Arts and Science courses provides affordable education to around 1000 students, most of them hailing from the lower strata of society.

56

Milestones since 1946 The commissioning of the second Cement Plant at Sankari, Salem in 1963 The modernization and conversion of the Sankarnagar Plant to Dry Process in 1990.

The aggressive and bold take over of the One Million Tonnes Cement Plant of Coromandel Fertilizers in 1991, resulting in ICL becoming the largest producer of Cement in the South.

The successful floating of the US$ 49.5 MGDR issue in 1994.

The obtention of ISO 9002 Certification for the Sankarnagar Plant.

The entry into the field of Non-Conventional Electric Power Generation in 1995 with the harnessing of wind energy to produce 9.9 MW of power in Palladam, Coimbatore.

The commissioning of a One Million Tonnes green field Cement Plant in the verdant village of Dalavoi, Tiruchirapalli in 1997.

The spate of acquisitions in 1997-98 beginning with Visaka Cement Industry in Tandur, AP in 1997, the Yerraguntla Plant of the Cement Corporation of India in Cuddapah in early 1998 and the Raasi Cement Plant in Nalgonda, AP in December, 1998.

The commissioning of ICL Sugars, a 2500 TCD Sugar Plant with a co-generation plant at Krishnarajendrapet, Karnataka in August, 1999.

The setting up of three RMC plants – two in Chennai and one in Bangalore.

The installation of a unique Waste Heat Recovery Plant – an Indo Japanese Collaboration at Vishnupuram Plant in AP The inauguration of a 17.5 MW Gas Power Plant in Ramanathapuram, Madurai in October, 2004.

The modernization and conversion of the Sankari plant to dry process in 2007.

The commissioning of Cement Grinding Units in Chennai, Tamil Nadu and Parli in Maharashtra ❑ 2010

Mishra Dhatu Nigam Limited

Where Metals & Alloys Shape Up “MIDHANI has made components which were denied by Indian forging companies as well as Imports” THE DREAM OF MISHRA DHATU NIGAM LIMITED (MIDHANI), WHICH IS MOVING TO THE PRODUCTION SCALE FROM A PILOT SCALE, IS TO HAVE A STRONG PRESENCE IN THE

INTERNATIONAL MARKET, WHICH MAY SOON MATERIALISE LOOKING AT THE VARIOUS STRATEGIC ALLIANCES IT HAS BEEN PLANNING. THE COMPANY IS CONFIDENT THAT IT WILL CROSS

RS

1000 CRORE MARK SALES TURNOVER IN 3 – 4 YEARS. EFFORTS ARE ALSO IN PLACE TO RE-ORIENT R&D EFFORTS OF THE COMPANY TO ALIGN MORE TOWARDS MARKET DRIVEN STRATEGIES.

S

oon after Independence, India embarked on an ambitious programme of industrialisation. Self-reliance in hi-tech special metals and alloys became essential for meaningful growth of Space, Atomic Energy, Aeronautical, Steel and Hydro-electric power & Defence sectors heralding the change. Conceived by eminent metallurgists, MIDHANI was set up to fulfil this need. For MIDHANI, it has been an unparalleled experiment and a challenge undertaken to create the technological ability for manufacture of ,perhaps ,the widest range of advanced metals and alloys anywhere in the world, under one roof.

Expansion Plan Going by a futuristic strategy, the company prepared a corporate plan up to 2020 and submitted to the Ministry. It was prepared after integrating the future plans of strategic sectors of the country. The aim is to increase the existing plant capacity of around 2000 MT to around 6000 MT in 3 to 4 years time.

“The last two years have seen good progress particularly; we had a turnover of Rs 255 crores in 2007-08; in 2008-9, it touched Rs 309 crores and last year(200910) we went up to Rs 370 crores which

58

amounts to compounded annual growth rate (CAGR) of 24.5%. We had lot of project expansion activities taken up in the last two years. The confidence built in the supply of critical materials to all the strategic sectors - be it defence, space or atomic energy – has ensured that MIDHANI is able to deliver goods to all. We have put up a corporate plan to the ministry and it has taken up the issue. The ministry came out with Rs 100 crore equity & loan support out of the Rs 200 crore investment for our expansion,” said Narayana Rao, CMD, MIDHANI.

Three-Phase strategy MIDHANI planned a three-phase strategy of growth for the next five years. The first phase of the plan entails an investment of Rs 200 crore out of which Rs 100 crore comes from the ministry and the other Rs 100 crore comes from the reserves of MIDHANI till last year. “The strategy is to follow the rule: ‘you make a turnover, get the profits, get the reserve and reinvest’. Out of the eight defence PSUs we are the smallest and have minimum reserve and we live on our own operational profits; we don’t have any fixed deposits. So I have to plan accordingly and so we planned the three-phase expansion,” said Rao.

2010

The Phase II will be of about Rs 480 crores investment for a rolling mill and a melting furnace and the Phase III will be reserved for new avenues where MIDHANI can get in.

“Phase III is something which I have to leave for the next generation. There are two lines on which we have to think; one, we have to think in terms of increasing the present capacity of whatever material we are making; second when we are expanding, naturally our product range also needs to widen. So the first line of thinking for Phase III would be - what is the best that I can do with same equipment? The next line would be - what new alloys can we develop or which new products that we can try to take up?” said Rao.

New Product - Fasteners In new products, MIDHANI plans to go into wider range like investment castings. Another product that it has taken up strategically is Fasteners. The company is manufacturing Superalloy, Special Steels and Titanium alloy fasteners because MIDHANI is already producing the raw rod material(input material) in the factory, which was till now being supplied to Naval and Space bodies who were in turn converting them into fasteners or they were just importing the material.

Revolutionary strides “The expansion programme that we started two years back - from a pilot expansion to a major expansion plan - had problems with the delivery of the equipment. To import an equipment is a long process. It takes about 14-18 months to supply and 6 months for commissioning.

The time taken is huge. So we took a drastic decision of making our own furnaces, which came to be realised in a short time.

The furnace is now in place,” said Rao. The Electro Slag refining (ESR) Furnace was made by MIDHANI– a combination of electrical, mechanical, electronics and melting crucibles in the design. It is a 10ton furnace, stretchable to 15-ton. The furnace will be ready and commissioned by May 2010. MIDHANI now plans to go to the next level of 20-ton furnace.

“Many of the components which we have made were those which were denied by Indian forging companies as well as Imports,” said Rao. ❑

“

WE HAVE

SANCTIONED ABOUT

RS 7 ½ CRORES FOR THE FASTENER PLANT. THE IDEA IS TO START THE PLANT BY NEXT YEAR

MARCH.

ANOTHER LINE OF EXPANSION IS BIOMEDICAL IMPLANTS.

ONCE FASTENERS GET INTO THE PICTURE, THEN WE WILL START GETTING INTO BIOMEDICAL IMPLANTS

”

“There is a lot of difficulty that the customer faces in finding a good fastener.

While it is a small part of the big picture, every fastener is crucial. So the manufacturer of the fastener is important. In my case, I melt, roll and finish my own material and that is how I make my fastener. And we in the government cannot compromise on quality,” said Rao. MIDHANI is now starting a fastener plant. It strategically wants to start an all women fastener plant as it is easy to handle with some skill sets.

“We have sanctioned about Rs 7 ½ crores for the fastener plant. The idea is to start the plant by next year March. Another line of expansion is biomedical implants.

Once fasteners get into the picture, then we will start getting into biomedical implants,” said Rao.

Narayana Rao, CMD, MIDHANI.

2010

59

Neyveli Lignite Corporation Limited

The Brown Coal Mogul “NLC’s mining capacity (Lignite & Coal) is expected to be more than double its present capacity and the power generation will be at least three fold of its present generation”

NEYVELI LIGNITE CORPORATION LIMITED (NLC), AN INTEGRATED MINING CUM POWER GENERATING ORGANIZATION, REGISTERED AS A COMPANY IN 1956. A MINI-R ATNA PSU, NLC IS A PIONEER IN THE EXCAVATION OF LIGNITE AND GENERATION OF POWER AT PITHEAD THERMAL POWER STATIONS. ITS TARGET IS TO COMPLETE 10,000 MW OF POWER GENERATION BY THE END OF XIITH PLAN. 60

O

ne of the public sector undertakings, the company is wholly owned by the Union Government (49 percent) and administered through the Ministry of Coal. NLC operates the largest open-pit lignite mines in India and mines some 24 million tonnes of lignite per year for fuel, with an installed capacity of 2490 MW of electricity per year. Of this, the origin state of Tamil Nadu consumes 1167 MW, with the neighboring states (Kerala, Karnataka, and Andhra Pradesh) consuming most of the rest.

2010

The company’s operations are in Neyveli, 197 km south of Chennai and 70 km west of Chokecherries. NLC has now expanded its mining and thermal stations to Rajasthan. It has proposals to set up coal-based thermal power plants in Madhya Pradesh, Jharkhand, and Chhattisgarh in joint venture subsidiary companies of Coal India Limited.

The authorized share capital of the company is Rs.2000 crores against which the paid up share capital is Rs.1677.71 crores, major portion of which is held by Government of India. NLC is a Category-I MiniRatna public sector undertaking.

The main constituent units of the Company which are in operation today are:

NLC‘S TOTAL INVESTMENT AS ON DATE IS AROUND

RS.8600 CRORES AND TURNOVER INCLUDING OTHER INCOME EXCEEDS

RS.3500 CRORES. NLC HAS BEEN EARNING PROFIT RIGHT FROM

1976-

77 AND IT HAS ACHIEVED A PROFIT

(BEFORE TAX) OF RS.1046.01 CRORES IN 20082009.

NLC‘s total investment as on date is around Rs.8600 crores and turnover including other income exceeds Rs.3500 crores. NLC has been earning profit right from 1976-77 and it has achieved a profit (before tax) of Rs.1046.01 crores in 2008-2009. NLC started paying dividend since 1997-98 and paid a dividend of 20 % on paid up capital for the year 2008-09 and paid an interim dividend of 10% for the year 2009-10.

2010

Lignite

Power

Unit

Capacity

Mine I

10.5 mtpa

Mine I A

3.0 mtpa

Mine II

10.5 mtpa

Total

24.0 mtpa

TPS I

600 MW

TPS II

1470 MW

TPS I Expansion

420 MW

Total

2490 MW 61

Financial Performance - 2009-10 The Financial performance of the company has also scaled new heights. Net sales upto III quarter of 2009-10 stands at Rs.3017.58 Crs against Rs.2589.24 Crs in the previous year. Profit after tax up to III quarter of 2009-10 stands at Rs.902.34 Crs as compared to Rs.698.47 Crs in the same period of the previous year.

Growth Drivers The key growth driver on the demand side is exponential rise in power demand in the country. On the supply side, the key drivers are:

In the last financial year NLC’s achievements soared to new high over previous years and are indicated below.

Total overburden removal of 1594.25 LM3 from all the Mines put together

NET SALES UPTO III QUARTER OF 2009-10 STANDS AT RS.3017.58 CRS AGAINST RS.2589.24 CRS IN THE PREVIOUS YEAR. PROFIT AFTER TAX UP TO

III QUARTER OF 2009-10 STANDS AT RS.902.34 CRS

Total Lignite production of 223.383 LT from all the Mines put together Power Generation of 10560.05 MU from TPS-II Total Power Generation of 17657.94 MU from all the thermal power stations put together and Export of Power from all the thermal power stations put together at 14827.50 MU are the highest for any year since inception.

Expertise of NLC in the field of open cast mining and pit head power generation from the past 50 years Experienced team of professionals and workforce with cordial industrial relation Cost efficient methods Expansion programmes already under implementation & expansion programmes under pipeline with massive capital outlays and Strong fundamentals of the organization with continued support from Union Government of India, Ministry of Coal and State Governments.

New power projects “Government of India had sanctioned the Mine-II Expansion raising the capacity of Mine-II from 10.5 to 15.0 MTPA and a

Physical

Actual in 2009-2010

Actual in 2008-2009

Growth in %

Lignite (MT)

22.34

21.31

4.84

15767.98

11.99

Power Generation (MU) 17657.94

AS COMPARED TO

RS.698.47 CRS IN THE SAME PERIOD OF THE PREVIOUS YEAR.

62

“A growth of 4.84% in lignite production and 11.99 % in Power Generation has been achieved during the year 2009-10 when compared to 2008-09. The improvement materialized through maximizing the availability of the equipments through regular maintenance and by dedicated work force.

Land acquisition which was a hurdle in the yester years has been gradually solved to a greater extent by enhancing the compensation through conciliation talks with the land owners with the help of state machinery,” said A R Ansari, Chairman & Managing Director, Neyveli Lignite Corporation Limited.

linked TPS-II Expansion -2 X 250 MW at a cost of Rs.4192.06 crores in October 2004; and Rajasthan Lignite Mine (2.1 MT of Lignite per annum) and Power Project (2 X 125 MW) at a cost of Rs.1368.25 crores in December 2004. GOI has sanctioned a 1000 MW (2 x 500 MW) coal based Thermal power plant at Tuticorin at an estimated cost of Rs.4909.54 crore in May 2008,” said Ansari.

Barsingsar Lignite Mine attained full production capacity in January 2010. Mine II Expansion has attained full production 2010

capacity on 12th March 2010, thus completing the project.

The mine was dedicated to the Nation

by Sriprakash Jaiswal, Union Minister of State for Coal & Statistics and Programme Implementation on 5th April 2010 at Neyveli.

The power projects of TPS-II Expansion (2x250 MW) at Neyveli and Barsingsar thermal power plant at Rajasthan are in advanced stage of implementation. These power stations are expected to be commissioned during 2010/2011. Construction activities have been commenced in respect of Tuticorin Thermal Power project.

Extension with 2.5 MTPA Hadla & Palana lignite mines.

1000 MW Lignite based Power Project with 8.0 MTPA linked lignite mine in South Gujarat.

2000 MW Coal based Thermal Power Plant at Orissa & a joint Venture Talabira Mine Project (20 MTPA) with MCL & HIL. 1000 MW Coal based Thermal Power Plant in Madhya Pradesh as a Joint Venture Project with linked Block ’B’ Coal Mine.

A GROWTH OF 4.84% IN LIGNITE PRODUCTION

11.99 % IN POWER GENERATION

AND

HAS BEEN ACHIEVED DURING THE YEAR

In addition, the following projects are in pipe line:

A Joint Venture coal based 2000MW power project in western Uttar Pradesh

by UPRVUNL and NLC.

Bithnok Mine (2.25 MTPA) cum Power project (250 MW)

1000 MW TPS-III at Neyveli and linked 8.0 MTPA Mine-III at Neyveli.

2008-09. THE

Thermal project at Neyveli (1000 MW) for which proposals have been submitted for obtaining Government of India sanction.

Integrated Coal Mine cum Power Project at Chhattisgarh State as a joint venture with M/s. South Eastern Coalfields Ltd. (SECL)

TERIALIZED THROUGH

Also the following new projects are proposed to be implemented in future: 1600 MW Thermal Power Plant with 13.5 MTPA capacity lignite Mine at Jayamkondam.

250 MW Thermal Power Project at Barsingsar

Coal based power plant at Kolar New Ventures for Power generation & Mining. a. b.

2009-10 WHEN COMPARED TO IMPROVEMENT MAMAXIMIZING THE AVAILABILITY OF THE EQUIPMENTS THROUGH REGULAR MAINTENANCE AND BY DEDICATED WORK FORCE.

Wind Power Hydro Power

“On completion of the above O On-Going projects already approved, and with New Projects on the anvil, NLC’s mining capacity (Lignite & Coal) is expected to tthan double its presbe more ent capacity and the p power generation will be at least tthree folds of ts presits

A R Ansari, Chairman & Managing Director, Neyveli Lignite Corporation Limited.

2010

63

ent generation. With a determined and dedicated workforce NLC will continue its march in the path of development to become a ‘Power behind Power’,” said Ansari.

Diversification Lignite reserves in India as on 01.04.2009 are estimated at 39074 Million Tonnes of which 81% of deposits are available in Tamil Nadu, 12% in Rajasthan and about 7% available in Gujarat. However, only 5363 Million Tonnes of lignite has been available in the proved category.

The lignite deposits were accrued in the above states since they do not have coal reserves and are also away from coal deposits. Most of the lignite deposits are associated with aquifer and requires control measures during mining involving additional expenditure and depletion of ground water potential inviting restrictions from Central / State Ground Water Board Authorities.

Lignite occurs mostly as thin and multiple seams. Due to soft overburden cover, only opencast mining is possible. Maximum depth of mining worked is 120 mtrs with present technology. The lignite deposits available within 150 mtrs depth is esti-

mated as 8915 Million Tonnes which is approximately 23% of the lignite deposits in the country.

“The lignite blocks in Tamil Nadu and Gujarat States are mostly under fertile and cultivable lands posing serious land acquisition problems. With the above constraints, NLC is operating three lignite mines at Neyveli at 24 Million Tonnes for the last 50 years. And 2.1 MTPA lignite at Rajasthan and 4.5 MTPA in Mine-II Expansion at Neyveli since January/March 10. When NLC expands its activities in other parts 64

of the country including Tamil Nadu, the lignite reserves available are in the range of 200 – 500 mtrs. depth, which are deep seated and the present method of excavation is not possible; alternate technology viz. Underground Coal Gasification (UCG) and Coal Bed Methane (CBM) are being explored. Also the potential blocks from the lignite exploration could not be expedited since most of the virgin areas were already allotted to firms / parties. Hence, to sustain the growth for a long time and on a continuous basis, capacity additions are required based on other fuels as constraints are there for lignite exploitation,” said Ansari.

In the first step, NLC entered into coal based power plant at Tuticorin under joint venture with Tamil Nadu Electricity Board.

Similarly, NLC plans to put up coal based power plant in other parts of the country independently / under joint venture. In addition to the above, NLC proposes to put up a wind energy based power plant in Tamil Nadu and solar power plant at Neyveli. NLC proposes the following new ventures in power generation and mining; To go for exploitation of coal reserves

both in India and abroad and to utilize them for generation of power.

Participating in development of coal blocks allotted to State Govt. or power generation based on coal mined from such blocks or both under Public Private Partnership with State Govt. Undertakings / Private Firms.

Participating in the tariff based competitive bidding process for taking up Ultra Mega Power Projects to be floated

by Ministry of power.

2010

Venturing into renewable energy such as Wind Power Plants, solar power plants and Hydro power plants.

Physical Targets for the next five years By end of XI plan period (i.e. at terminal year of XI plan 2011-12), NLC will have the lignite Mining capacity of 30.6 MTPA and power generating capacity at (2490+250+500+1000) 4240 MW. During XII Plan period it is proposed to add 2.5MTPA lignite Mine linked to 250MW power plant at Rajasthan and a new thermal power plant of 1000 MW capacity in lieu of existing TPS-I. By end of XII Plan period the lignite Mining capacity will be increased to (30.6+2.5) 33.1MTPA and power generating capacity to (4240+250+1000-550) 4940 MW. “NLC is poised for a rapid growth in terms of the mining and power generation during the XI Plan period. NLC has proposed to meet the fund requirements out of internal accruals and market borrowing,” said Ansari.

Other activities Corporate Social Responsibility “One of the Missions of NLC is ‘Play an active role in society and be sensitive to environmental issues’. NLC’s Corporate Social Responsibility is manifested in the form of safety, welfare, environmental Conservation and peripheral development. NLC’s CSR policy is that of continued improvements in management of environment along with improving quality of work life and community life with in Neyveli as well as in peripheral villages,” said Ansari.

NLC’s CSR activities broadly include the following; Maintaining high environmental standards through massive afforestation and lowest emission levels.

Ensuring a foolproof onsite and offsite emergency plan.

Huge investments in provision of ash dykes in order to avoid depositing of un-burnt ash, slag, etc. and not to spoil vegetation around the project.

2010

A liberal Rehabilitation and Resettlement scheme for Project Affected Persons.

Continuous supply of water for irrigating over 23000 acres in surrounding villages.

Maintaining bore wells and supply of drinking water for around 70 villages.

Providing quality education to more than 80% of the student population from neighboring villages in NLC schools.

Provision of noon meal to such children in coordination with State Government.

Arranging annual book fair to kindle the fire in children in the quest of knowledge.

Providing out patient treatment for more than 1 Lakh rural population every year.

Providing the best sports infrastructure facilitating coaching as well as conducting of major tournaments at District, State and National levels.

Providing Kendriya Vidyalaya Standard Education through Jawahar Schools in CBSE as well as Metric patterns.

Managing ancient places of worships in an appreciable manner in the project locality thereby satisfying the religious sentiments of the native population.

Providing transport facility to the public at subsidized fares applicable to employees.

NLC IS POISED FOR A RAPID GROWTH IN TERMS OF THE MINING AND POWER GENERATION DURING THE

XI PLAN PERIOD. NLC HAS PROPOSED TO MEET THE FUND REQUIREMENTS OUT OF INTERNAL ACCRUALS AND MARKET BORROWING

Maintaining lawns, gardens and parks, thereby adding the environmental value.

Permitting more than 20000 students of schools and colleges every year to visit the Industrial complex and giving them an opportunity to enrich their knowledge on mining and power generation.

Permitting more than 1000 graduate / post graduate students in professional and management disciplines to undergo plant training / project work under voluntary guidance from executives. ❑

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66

2010

Nuziveedu Seeds Limited

Seeds of Affluence “Today, about 1,00,000 farmers across India partner with NSL in producing world-class seeds” NSL IS THE PIONEER IN R&D, PRODUCTION AND MARKETING OF VARIOUS KINDS OF COTTON HYBRID SEEDS AND OTHER FIELD CROPS LIKE CORN, RICE, SUNFLOWER, SORGHUM, PEARL MILLET AND A NUMBER OF VEGETABLE CROPS. NSL IS ALSO INVOLVED IN R&D TO DEVELOP HIGH YIELDING VARIETIES AND HYBRIDS IN WHEAT AND MUSTARD. NSL IS THE FIRST INDIAN SEED COMPANY TO ACHIEVE A TURNOVER OF RS 500 CRORES. ITS AIM IS TO ATTAIN SALES REVENUE OF RS. 1,125 CRORES BY 2012 AND MAINTAIN PRESENT LEADERSHIP POSITION. THIS YEAR, 2010-11, THE TURNOVER OF THE COMPANY IS EXPECTED TO BE AROUND RS 800 CRORES AND RS 1000 CRORES BY 2011-12.

N

SL commenced operation in 1973 with the sole objective to develop and provide world-class cotton seeds to farmers at prices they can afford. Today, NSL is the country’s premier supplier of quality seeds. Thanks to the visionary behind NSL - M. Venkatramaiah.

Today, NSL has garnered a lion’s share in the hybrid cotton seed market with two high yielding hybrid seeds, viz. - Bunny BT and Mallika BT. NSL is a household name among 10 million farmers in India. The “Subeej” brand of high yielding seeds has captured the hearts of every Indian farmer.

“NSL’s core strength lies in its R&D. The company is developing area-specific hybrids and high yielding varieties that cater to the local needs in terms of biotic and abiotic stress tolerances, output quality, duration, etc. NSL’s dedicated field staff make regular visits to address the needs of the farmers and gather feedback and suggestions to further improve the genetics of seeds. Our supply chain system is second to none with 100,000 loyal seed growers, state-of-the-art infrastructure for seed conditioning and high capacity conditioned storage facilities. When it comes to quality, we’re the most trusted seed producer in the country with ISTA accredited seed testing laboratories and over 650 acres of farm land exclusively to test the genetic purity of our seeds,” said M. Prabhakara Rao, Chairman, Nuziveedu Seeds Pvt. Ltd. 2010

The company is further strengthened by a strong marketing framework in 16 states with more than 3000 distributors and 50000 retailers supported by 8 regional offices serving 10 million farmers. With growing strengths in Product Development, Supply Chain Management, Marketing and Extension, NSL is poised to grow, while maintaining its leadership position in the lndian seed industry.

“Nuziveedu’s dominance is in cotton and since 1975, we have been working on cotton. Today, we hold about 37% share in the market. Our next focus is to go strong in rice and corn. These two crops are on the upswing. We are No.1 in the rice varieties – new or proprietary variety. But we had to create certain amount of awareness among farmers in terms of their usage of seeds. A farmer is utilizing about 30 Kg of seeds for one acre to grow rice, but we have spent a lot of time and money to educate farmers to prove that only 10 kg is enough for one acre! In a country where you have 44 million hectares of rice, if you save 20 kg per acre without producing, 22 million tonnes of rice is saved for consumption. Last year, we sold 8000 tonnes, which means that almost about 16000 tonnes of grain was saved by Nuziveedu for the country,” said S V R Rao, Sr. Vice President (Coordination & Strategic Planning), Nuziveedu Seeds Pvt. Ltd. In hybrid rice, the problem that Nuziveedu faced was in the quality wherein

“

NUZIVEEDU’S

DOMINANCE IS IN COTTON AND SINCE

1975, WE HAVE

BEEN WORKING ON COTTON. TODAY, WE

37% SHARE IN THE MARKET. OUR NEXT FOHOLD ABOUT

CUS IS TO GO STRONG IN RICE AND CORN.

THESE TWO CROPS ARE ON THE UPSWING.

WE ARE NO.1 IN THE RICE VARIETIES

– NEW OR PROPRIETARY VARIETY. BUT WE HAD TO CREATE CERTAIN AMOUNT OF AWARENESS AMONG FARMERS IN TERMS OF THEIR USAGE OF SEEDS.

”

67

it was not enjoyed by Indians, especially South Indians. They want something akin to Sona Masuri. So the company introduced a hybrid rice with same qualities of Sona Masuri and extensive test marketing is going on.

“

NSL HAS A STATE-OF-THE-ART BIOTECHNOLOGY LAB NEAR HYDERABAD WITH CUTTING-EDGE FACILITIES FOR DNA FINGERPRINTING, MOLECULAR MARKERS, TISSUE CULTURE AND TRANSFORMATION SYSTEM, CONTAINMENT GREEN HOUSE, ETC.

NSL

LEVERAGES THE POWER

“In corn, we have plenty of single cross hybrids, where the production cost is high, but they are generally more vigorous and also more uniform than the double-cross hybrids. One of the problems is that we have to make them disease resistant, and we have been able to overcome that problem. In single-cross hybrids, we can put more plants per unit area so we can get high yields,” said SVR.

Presence NSL, the No.1 seed company in India, is headquartered in Hyderabad and has a strong foothold in 16 major agricultureheavy states in India. NSL has full-fledged offices in Delhi, Guntur, Ahmedabad, Akola, Indore, Davangere, Bangalore, Hissar, Bhatinda, Lucknow, Jaipur, Kolkata, Raipur, Patna and Trichy.

OF BIOTECHNOLOGY NOT ONLY FOR TRANSGENIC DEVELOPMENT, BUT ALSO FOR FASTER PRODUCT TESTING AND EVALUATION. TO AVOID LONG GESTATION PERIOD,

NSL USES TOOLS LIKE AFLP (AMPLIFIED FRAGMENT LENGTH POLYMORPHISM), DNA MARKERS, MOLECULAR BREEDING, ETC, TO TEST GENETIC PURITY OF HYBRIDS

”

zones to evaluate the adaptability of various products and also to screen them against biotic and abiotic stresses. “To ensure consistent quality, NSL tests its products at reputed international institutes such as, IRRl Philippines, ICRISAT Patancheru, India and other national and state Agricultural Universities,” said Rao.

Advances in Biotech In addition to conventional breeding programmes, NSL also depends heavily on biotechnology to improve the quality of seeds.

“NSL has a state-of-the-art Biotechnology Lab near Hyderabad with cutting-edge facilities for DNA fingerprinting, molecular markers, tissue culture and transformation system, containment green house, etc. NSL leverages the power of biotechnology not only for transgenic development, but also for faster product testing and evaluation.

To avoid long gestation period, NSL uses tools like AFLP (Amplified fragment length polymorphism), po DNA markers, molecular breeding, etc, to t test genetic purity of hybrids,” said Rao. h

R&D NSL banks heavily on research to develop various world-class hybrids. The main centre is located near Hyderabad. Spread over 600 acres, in the states of Andhra Pradesh, Maharashtra, Gujarat, Punjab, Haryana, Uttar Pradesh and Tamil Nadu, these research centers are doing world-class research work in developing breakthrough seeds with superior yield. In addition to this, multi-location trial centers are set up in different agroclimatic

S V R Rao, Sr. Vice President (Coordination & Strategic Planning), Nuziveedu Seeds Pvt. Ltd.

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2010

Marketing and product development NSL has invested considerable time and resources in its marketing infrastructure.

The marketing team constitutes 32% of the total company’s workforce. “NSL’s marketing network comprises 8 regional offices, 8 C&F agents, 3,000 distributors, and over 50,000 dealers and sub-dealers spread across 16 states in India. NSL’s dedicated field staff makes routine visits to address the needs of farmers and gather feedback and suggestions to further improve the quality of seeds. In addition to this, NSL conducts extensive programmes under Subeej Krishi Vignan to empower farmers with the latest developments in farming. NSL employees regularly carry out farmer educational programmes, field days, Krishimela, etc. to impart farmers with knowledge relating to the latest practices in agriculture, pest and disease management, fertilizer application, etc,” said Rao.

Production

Research Collaboration

NSL is the country’s largest seed producer with annual output of over 6 lakh quintals of quality seeds spread over 89, 000 acres. “Today, about 1,00,000 farmers across India partner with NSL in producing world-class seeds. NSL maintains a symbiotic relationship with farmers by helping them produce high-yielding seeds using scientific methods,” said Rao.

International Plant Research International, Netherlands

Processing, Packing and Storage Total processing machinery capacity of 70 TPH State-of-the-art processing plants in Kompally, Kottur, Nandigam, Kalikal, Tukkulur, Chinakondrupadu, Gadchiroli, Akola, Rudrapur, ldar and Bargarh 3,70,000 sft, of storage space at various locations in India 28 seed storage godowns in 14 states 10 completely automated packing lines with an output capacity of 20 packets/ min/line 18,000 tons storage capacity of conditioned storage godowns 250 TPD capacity cob drying unit at Kottur 2010

NDSU (North Dakota State University), USA AWE, Taiwan IRRI (International Rice Research Institute), Philippines CAMBIA, Australia ICGEB (International Centre for Genetic Engineering & Biotechnology), New Delhi ICRISAT (International Crop Research Institute for Semi-Arid Tropics), Hyderabad National ICAR (Indian Council of Agricultural Research) IARI (Indian Agricultural Research Institute) CICR (Central Institute for Cotton Research)

“

TODAY, ABOUT 1,00,000 FARMERS ACROSS

INDIA PARTNER WITH NSL IN PRODUCING WORLD-CLASS SEEDS. NSL MAINTAINS A SYMBIOTIC RELATIONSHIP WITH FARMERS BY HELPING THEM PRODUCE HIGH-YIELDING SEEDS USING SCIEN-

”

TIFIC METHODS

DMR (Directorate of Maize Research), DRR (Directorate of Rice Research) IIT, Kharagpur 69

NSL Group The growth of NSL from a seed company to a multimillion conglomerate with diverse business interests is a classic business case study. It’s the business acumen, perseverance and far sighted vision of the founder that helped NSL become what it is today.

NSL Seeds The flagship company of the NSL group.

Established in 1973, Nuziveedu seeds is a pioneer and leader in the Indian Seed Industry, with over 35% market share in hybrid cotton seeds.

NSL Cotton Corporation

NSL LNFRATECH PVT. LTD. IS IMPLEMENTING FIVE SEZ PROJECTS IN HYDERABAD, DELHI AND CHENNAI. THE COMPANY PLANS TO UNDERTAKE DEVELOPMENT OF

14.50

MILLION SQUARE FEET OF

IT AND RESIDENTIAL

SPACE IN A PHASED MANNER OVER THE NEXT

70

5-6 YEARS.

NSL Cotton Corporation (NCC) is incorporated to carry on the business of managing cotton cultivation, procurement, processing and marketing high-quality contamination-free cotton.

NSL Textiles NSL Group has established a textile business with the concept of “Cotton to Clothing”.

The present capacity of

2,40,000 spindles is integrated with about 600 high speed looms and a processing capacity, of 2,00,000 meters per day with a total capital outlay of Rs. 1133 Cr!

NSL Power NSL Power Limited was formed for faster implementation of Power projects based on thermal and renewable resources like Hydro, Wind and Biomass. The company currently has 100 MW of operating capacity, and has projects in pipeline for additional capacity of 1675 MW.

REGEN Powertech Regen Powertech, the new name to drive wind energy in India is committed to providing an alternative source of energy that is sustainable. Regen Powertech established its state-of-the-art plant near Tada, Andhra Pradesh to manufacture 1.5 MW gearless wind turbines in technical collaboration with Vensys Energy AG, Germany.

NSL lnfratech NSL lnfratech Pvt. Ltd. is implementing five SEZ projects in Hyderabad, Delhi and Chennai. The company plans to undertake development of 14.50 million square feet of IT and residential space in a phased manner over the next 5-6 years.

NSL Sugars NSL Sugars Ltd., was established as an associate company of NSL Group. NSL Sugars runs a 4500 tons capacity Sugar Mill with 26 MW Cogen and 60 KLD Ethanol Plant with a capital outlay of about Rs. 300 Crores. Three more Sugar Mills are being implemented with a capital outlay of Rs. 850 Crores. The turnover of NSL Sugars is estimated to be Rs. 650 Crores by 2010. ❑

2010

Motoring India “We are targeting sales of over 2 million two wheelers in the current financial year “ WITH A WIDE SPECTRUM OF EXPERTISE RANGING FROM AUTO COMPONENTS TO MANUFACTURING OF TWO AND THREE WHEELERS, THE TVS GROUP TODAY IS A 5 BILLION DOLLAR CONGLOMERATE FAST APPROACHING ITS CENTENARY YEAR,

2011. QUALITY AND

INTEGRITY BACKED WITH A STRONG FOCUS ON EMPLOYEE AND CUSTOMER ARE SOME OF THE FUNDAMENTAL CHARACTERISTICS THAT

TVS

MOTOR COMPANY, THE FLAGSHIP COMPANY OF THE TVS GROUP, HAS INHERITED. THE BASIC FOUNDATION OF TVS MOTOR COMPANY IS BUILT ON TOTAL EMPLOYEE INVOLVEMENT (TEI), WHICH FORMS AN INTEGRAL PART OF OUR PHILOSOPHY, TOTAL QUALITY MANAGEMENT (TQM).

72

T

VS has been encouring participative management among its employees which has led to a strongly conscious and committed workforce. Over the last 30 years, TVS Motor Company has been driven by innovation and the impulse to engineer futuristic technologies, based on customer insights.

“The comapny has a strong passion for quality and commitment to achieve total customer satisfaction through excellence in quality and our TQM philosophy ensures that quality awareness percolates through the entire organisation, right from new product development to after sales service. Our penchant for quality and innovation is evident in the fact that, over the years, several prominent awards have been conferred on TVS Motor Company, includ2010

ing the prestigious Deming Award. TVS is the only two wheeler manufacturer in India to have won this award. Our strategy to constantly invest significantly in R&D has paid rich dividends with TVS Motor Company being privileged with many firsts in the country from India’s first 100cc motorcycle to the country’s first motorcycle with an auto-clutch,”said K. N. Radhakrishnan, President & CEO, TVS Motor Company

TVS CURRENTLY HAS THREE MANUFACTURING PLANTS IN

INDIA, INCLUDING HOSUR IN TAMILNADU, MYSORE IN K ARNATAKA AND NALAGARH IN HIMACHAL PRADESH WITH A TOTAL PRODUCTION CAPACITY OF AROUND 2.4 MILLION VEHICLES. THE COMPANY ALSO HAS A PLANT IN INDONESIA

Current capacity TVS currently has three manufacturing plants in India, including Hosur in Tamilnadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh with a total production capacity of around 2.4 million vehicles.

The company also has a plant in Indonesia that manufactures products specific to the ASEAN region. In addition to this, it has a dedicated one lakh capacity plant for its three-wheelers.

“We will spend about 175 crore rupees in the current financial year on capacity expansion and new products.

This capital expenditure includes investment behind R&D, new products as well as capacity expansion.

The fresh investment will go into our existing plants to increase two-wheeler capacity from 2.4 million units to around 2.8 million units,” said Radhakrishnan.

over the years, incorporating features that correspond to customer demands.

Thrust Areas “Our customer first approach is manifest in all our products being based on customer needs. This is apparent in the way the moped has evolved

TVS Motor Company identified the need for mobility for women and young girls and brought out TVS Scooty to bridge that gap. Another example of customer feedback would be the racing enthusiast who was looking to satiate his thirst for adrenalin rush.

TVS Motor Company introduced the TVS Apache for him. Over the years TVS StaR has also undergone makeovers incorporating suggestions from customers. TVS King,

WE WILL SPEND ABOUT 175 CRORE RUPEES IN THE CURRENT FINANCIAL YEAR ON CAPACITY EXPANSION AND NEW PRODUCTS. THIS CAPITAL EXPENDITURE INCLUDES INVESTMENT BEHIND

R&D, NEW PRODUCTS AS WELL AS CAPACITY EXPANSION. THE FRESH INVESTMENT WILL GO INTO OUR EXISTING PLANTS TO INCREASE TWO-WHEELER CAPACITY

2.4 MILLION UNITS TO AROUND 2.8 MILLION FROM UNITS

K. N. Radhakrishnan, President & CEO, TVS Motors 2010

73

TVS CURRENTLY HAS AROUND 16% MARKETSHARE IN THE TWOWHEELER INDUSTRY AND ARE TARGETING

20%

DURING THE CURRENT FINANCIAL YEAR. IT HAS STRONG PRODUCTS IN ALL THE DIFFERENT SEGMENTS AND HAS RECENTLY ADDED TWO NEW PRODUCTS TO ITS PORTFOLIO.

WITH THE LAUNCH OF ITS NEW MODEL, TVS JIVE, THE COMPANY EXPECTS A SIZABLE CHUNK OF THE EXECUTIVE CLASS BIKERS.

WITH THE INTRODUCTION OF WEGO, IT NOW HAS A PRODUCT IN THE METAL BODY SCOOTER MARKET AS WELL.

“WE

our three wheeler offering is yet another example of a product that has been built keeping customer requirements in mind.

Our recently launched products, TVS Jive, India’s first auto-clutch motorcycle and TVS Wego, the first metal bodied scooter from TVS Motor Company, both focus primarily on convenience and ease of use.

TVS RockZ the latest step thru bike for the Indonesian market is yet another example of a product based on customer requirement, the product being the first step thru to feature a music system among other features. As part of our customer first focus, we have invested in 3S (Sales, Service & Spares) with a strong concentration on quality.

Our overall strategy will be, to continue to bring out products that are differentia-

ARE TARGETING SALES OF

2 MILLION TWO WHEELERS IN THE CURRENT FINANCIAL YEAR,” SAID R ADHAKRISHNAN. OVER

THE PROFIT BEFORE TAX AFTER EXCEPTIONAL ITEM IS STILL

RS. 76 CRORES COMPARED TO RS. 31 CRORES REPORTED IN THE PREVIOUS YEAR. PROFIT AFTER TAX DURING THE YEAR ENDED MARCH 2010 STOOD AT RS. 86.50 CRORES AS AGAINST RS. 31.1 CRORES REGISTERED SUBSTANTIALLY HIGHER AT

IN THE CORRESPONDING PERIOD IN

74

2008-09.

tors and those that will take a given segment to the next level,” said Radhakrishnan.

Current Market Share TVS currently has around 16% marketshare in the two-wheeler industry and are targeting 20% during the current financial year. It has strong products in all the different segments and has recently added two new products to its portfolio. With the launch of its new model, TVS Jive, the company expects a sizable chunk of the executive class bikers. With the introduction of Wego, it now has a product in the metal body scooter market as well. “We are targeting sales of over 2 million two wheelers in the current financial year,” said Radhakrishnan.

Latest activities “Until recently, we were not offering a complete product portfolio, as in we were absent in the executive segment of the motorcycle market and also did not have any product in the unisex scooter segment. With TVS Jive, we wanted to give the efficiency of a motorcycle with an ease and hassle free riding of a scooter, so with that we will make an impact in the market.

We also noticed that young girls from high school and young women from university or college were buying our Streak and Pep but when they went on in life they bought other people’s scooters, full metal bodied scooters, so we introduced TVS Wego to bridge that deficit. Apart from products, TVS Motor Company has successfully created a huge employment opportunity for both skilled and unskilled labour in not only South India, at its plants in Hosur and Mysore, but also at its Nalagarh plant in HP. Another notable area would be the company’s contribution to social responsibility.

2010

TVS Motor Company has reached out to thousands of lives through its CSR arm, Srinivasan Services Trust (SST) focusing on five key areas including economic development, education, health, environment and infrastructure development. Till date SST has adopted more than 475 villages in Tamilnadu, Himachal Pradesh and even in Indonesia,” said Radhakrishnan.

Future Plans TVS is currently concentrating on the two recent launches TVS Jive and TVS Wego and hope to make inroads into those markets. With regard to new launches, besides upgrades and refreshed models, it plans to introduce new models at an appropriate time.

“In terms of exports, we have international presence in more than 55 countries in Asian, African and Latin American Continents and will enter more international markets in due course. With the effects of the global economic slowdown, slowly wearing away, we are looking at positive growth in exports to the tune of 50%.

TVS Motor Company also has a wholly owned subsidiary - PT TVS Motor Indonesia, manufactures TVS Neo & TVS Rockz, the new generation of bebeks, to cater to ASEAN markets,” said Radhakrishnan.

Recent achievements

Launch of India’s first autoclutch motorcycle Launch of full metal bodied unisex styled scooter TVS Apache RTR 180 won the Motorcycle of the year (up to 200cc) at NDTV Profit Car and Bike Awards 2010 while Apollo Auto India Best Brand Awards 2010 bestowed TVS Motor Company with the Best Customer Service Award.

Financials During the year ended March 2010, TVS registered a growth of 13.3% in sales with overall two-wheeler sales growing from 13.4 lakh units in the previous financial year to 15.2 lakh units. While motorcycle sales during the fiscal was static at 6.4 lakh units, scooters grew at 19.7% from 2.59 lakh units in the previous year to 3.1 lakh units in the current fiscal.

2010

DURING THE YEAR ENDED MARCH 2010, TVS REGISTERED A GROWTH OF 13.3% IN SALES WITH OVERALL TWO-WHEELER SALES. WHILE MOTORCYCLE SALES DURING THE FISCAL WAS STATIC AT

6.4 LAKH UNITS, SCOOTERS GREW AT 19.7% FROM 2.59 LAKH UNITS IN THE PREVIOUS YEAR TO

3.1 LAKH UNITS IN THE CURRENT FISCAL.

Three wheeler sales of the company grew substantially from 4613 units in the year ended March 2009 to 14,730 units in the current year. The company’s total revenue grew from Rs. 3737 crores in the year ended March 2009 to Rs. 4424 crores in March 2010. As mentioned in the company press release dated 6th March 2010, the company has transferred its investment in TVS Finance & Services Limited to another fellow subsidiary at a nominal price.

The company has also disposed of certain surplus property at a profit. Along with accelerated amortization of tools and dyes of slow moving models of Rs. 11.77 crores, the net impact of Rs. 46.19 crores is shown as “exceptional item”.

Operating Profit Before Tax and exceptional item during the year ended March 2010 stood at Rs. 122.28 crores as against 34.37 crores recorded in the corresponding period in 2008-09.

The Profit Before Tax after exceptional item is still substantially higher at Rs. 76 crores compared to Rs. 31 crores reported in the previous year. Profit After Tax during the year ended March 2010 stood at Rs. 86.50 crores as against Rs. 31.1 crores registered in the corresponding period in 2008-09. ❑

TVS IS CURRENTLY CONCENTRATING ON THE TWO RECENT LAUNCHES

TVS

JIVE AND TVS WEGO AND HOPE TO MAKE INROADS INTO THOSE MARKETS.

WITH REGARD TO NEW LAUNCHES, BESIDES UPGRADES AND REFRESHED MODELS, IT PLANS TO INTRODUCE NEW MODELS AT AN APPROPRIATE TIME.

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Amara Raja Batteries

The King In-Charge AMARA R AJA BELIEVES IN INFLUENCING AND IMPROVING THE QUALITY OF LIFE BY BUILDING INSTITUTIONS THAT PROVIDE BETTER ACCESS TO BETTER OPPORTUNITIES, GOODS AND SERVICES TO PEOPLE ALL THE TIME. WITH INNOVATIVE ENGINEERING, RESEARCH AND DESIGN, AMARA R AJA HAS GROWN WITH PARTNERSHIPS AND INFORMATION SHARING WITH WORLD LEADERS.

76

2010

M

ission, mantra, way of thinking or philosophy, call it what you want, the way the Amara Raja Batteries Company thinks is, “To transform their spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities, goods and services to more people… all the time.”

Amara Raja commits itself to realise this mission by introducing latest generation technologies and adapting these technologies to suit the operating environment; developing and manufacturing globally competitive, customer-focused products of worldclass quality, responsibly introduce these products into relevant markets and provide world-class customer support to ensure the products’ success.

Achievements Amaron is the preferred supplier to Daimler Chrysler, Ford and General Motors Automotive Product of the year 2000 by Overdrive

Controls Inc., USA Largest manufacturer of standby VRLA batteries in South Asia Pioneered the widely used VRLA batteries for industrial application in India Largest & dominant market leader of standby batteries in Railways, Telecom, Power Generating stations in India One of the largest (designed for producing 3.64million batteries p.a.) and most modern automotive battery plants in Asia Highly automated (oxide preparation to finishing; all processes and operations are automated) Part of Amara Raja’s highly integrated battery complex (most components are built in-house)

Facilities and Infrastructure World-class integrated facility with Oxide manufacture to finished battery dispatch in one complex Automation at every possible process and in all critical areas

Excellence in Environmental Management in 2002 by AP Pollution Control Board

Fully furnished in-house plastic injection moulding

Creative Advertiser of the year ‘02

by ABBY

Ultra modern Sheet metal fabrication facility with CNC machines robotic welding equipment

Ford “World Excellence Award” Ford Q1 Award

Govt. approved R&D Centre for battery

ISO-9001 in 1997 by RWTUV GERMANY

Test facilities to check the raw material to Parts per Billion Level

QS 9000 in 1999 by RWTUV GERMANY

Full fledged calibration & chemical labs to correct instruments & check material purity

ISO/TS 16949 in 2004 by RWTUV GERMANY

Quality benchmarks Best Business Practices as per JCI

SPC & SQC techniques for every process PPAP & APQP procedures for product development

ISO 14001 in 2002 by RWTUV GERMANY

Only Industrial Battery Plant to get certified for QS-9000

Part of the world’s largest battery manufacturing alliance - Johnson

Catia Software for Modelling

2010

Solid works for Sheet Metal Design Autocad for Sheet Metal Design Protel for PCB artwork and Electrical Schematic diagrams Compilers and programmers for Intel, Microchip and Atmel micro controllers HP/Fluke make Power Analyzers, Digital Storage Oscilloscopes for prototype modelling Vibration Test facility up to 3G Environment chambers to test the systems at sub zero and elevated temperatures Futuristic ambience; State-of-theart technology; Value added ARBS; Diagnostic service Collection centre for used batteries

Research and Development To cater to ever changing customer needs, Amara Raja has also built a Battery Excellence Centre - the first of its kind in Asia. This research and engineering centre has been conceived as a completely self-sufficient facility with a full range of testing equipment. The centre incorporates all the latest gadgetry for battery performance evaluation, design and life testing and also has capabilities for application engineering, vehicle systems study, simulations and computer-aided design including a full calibration laboratory on site.

AMARA RAJA IS THE LARGEST MANUFACTURER OF

VRLA BATTERIES IN SOUTH ASIA AND IT HAS BEEN THE LARGEST & STANDBY

DOMINANT MARKET LEADER OF STANDBY BATTERIES

RAILWAYS, TELECOM, POWER GENERATING STATIONS IN INDIA IN

77

As a result, Amara Raja is uniquely placed to offer substantial benefits on sizing of batteries and electrical systems to its industrial and OEM customers and will be able to effect valuable improvements in product performance and manufacturing techniques. Furthermore, this centre will not only serve the needs of the domestic market, but also be a resource for alliance research and development projects.

Amara Raja’s plant is located in Karakambadi, a village 12 km from the temple town of Tirupati. The existing facility is ISO9001, QS9000 and TS 16949 certified by RWTUV Germany. The plant is part of the most completely integrated battery manufacturing facility in India with all critical components, including plastics sourced in-house from existing facilities on-site. This gives Amara Raja complete control over inventory and product quality.

Corporate Social Responsibility Amara Raja believes that a company is known by the society it keeps. They believe in taking responsibility for whatever they do; within and without the company. It’s what responsible leaders are expected to do. Their vision is to create communities that are economically and socially vibrant enough to stimulate growth and selfreliance; within and without the company.

Education To ensure their people have a better quality of life, Amara Raja provides primary schooling facilities for the children of their employees. They also provide their employees with facilities in the form of free memberships to education enhancement trusts and organizations like the library for employees on site, the Rajanna Trust for intellectual enhancement, the Krishna Deva Raya Trust and Cultural Association, Vinayashramam, Thapovanam and the Rashtriya Seva Samithi.

Infrastructure Some of the infrastructure requirements of daily living that Amara Raja takes responsibility for include a bank for employees and the public, residential complexes for employees, medical and other facilities like a post office, subsidised transportation and recreational clubs for everyone who works with the Company.

proud to have invested time and resources on all the ongoing and longterm initiatives.

Environment Respect for environment is a core business value that is reflected in all the comprehensive, proactive environment programmes of Amara Raja like the development of green belts, energy conservation and water harvesting, to name a few.

Financials Amara Raja Batteries Limited earned a net profit of Rs.399 million for the third quarter(Q3) ended December 31, 2009, recording a growth of 113% over Q3 of 2008-09. Net Income for Q3 of 2009-10 stood at Rs.3,674 million (Net Sales: Rs.3,668 million + other income: Rs 6 million).

For the nine months period ended December 31,2009, the Company earned Profit Before Tax (PBT) of Rs.1,986 million and Profit After Tax

Village Development Mahatma Gandhi said, “India lives in her villages.” It’s why Amara Raja focuses a great deal on developing the same by helping in the building of roads, street lighting, rainwater storage plants and check dams. Under the banner of ‘Grameena Vikasam’ they’re

In keeping with this commitment, Amara Raja is active in social activities in the following four areas: Education; Infrastructure; Village development; and Environment.

78

2010

(PAT) of Rs.1,303 million, resulting in a growth of more than 146% and 148% respectively as compared to the corresponding period ended December 31,2008.

The industrial battery division continued its growth momentum aided by telecom and UPS segments. During the year, the manufacturing capacity of Large VRLA battery (Powerstack) has been doubled to 900 Million Ah. Also, the project to enhance Medium VRLA battery (Quanta) capacity by 50% has been initiated. The Company continues to enjoy preferred supplier status with leading telecom operators and UPS manufacturers. The division clocked a compounded growth rate of 50% over the last 4 years.

The automotive battery division’s growth was in line with the industry growth. The division has maintained the market share in both the segments -- OEM and After Market.

During the year the Company tied up with Maruti Suzuki India Ltd for retailing Amaron MGB (Maruti Genuine Battery) through Maruti Authorized Service Centres. Further, the division had also finalised an agreement with Tata International Ltd for export of automotive batteries to select African Countries under Amaron brand name.

During the year the Company introduced motor cycle batteries (with VRLA technology) under the brand Amaron Pro Bike Rider, which has been well accepted by the customers.

The existing motorcycle & small VRLA battery capacity of 1.8 million will be enhanced to 2.40 million in FY10 to cater to the growing demand.

The Company expanded its Amaron franchisee & retail network to 189 nos and 18,000 nos respectively, and consolidated its presence through 600 PowerZone outlets in semi-urban and rural locations.

Brand building initiatives through motor sport sponsorships helped the Amaron brand to reach the youth.

Despite a slowdown in automotive industry in recent times, the Automotive Battery Division continues to 2010

progress ahead, enabled by its focus on channel building and realigned portfolio of product offerings.

Group Companies Galla Foods Inaugurated on 4th May, 2005 at Chittoor, in AP, with an investment of US$ 4.6 million, as a 100% Export Oriented Unit.

Amara Raja Electronics Ltd PCB Assembly (Through hole and SMT), located at Diguvamagham near Chittoor, in AP, for electronic products Assembly and Testing and currently manufacturing Battery chargers, Digital inverters and Trickle chargers.

Amara Raja Power Systems Limited Design and development of Power Electronic products; Power electronics Systems Integration and testing; and Magnetics Manufacturing.

Mangal Precision Products Limited Situated at Petamitta in Chittoor district in AP, for fabrication of advanced sheet metal products and fasteners, plastic component and compounds, with technological support of Nedschroef, Belgium. ❑

AMARA RAJA BATTERIES LIMITED EARNED A NET PROFIT OF RS.399 MILLION FOR THE THIRD QUARTER(Q3) ENDED

DECEMBER 31, 2009, RECORDING A GROWTH

113% OVER Q3 OF 2008-09.NET INCOME FOR Q3 OF 2009-10 STOOD AT RS.3,674 MILLION (NET SALES: RS.3,668 MILLION + OTHER INCOME: RS 6 MILLION).

OF

History Dec 1985 – Foundation of Amara Raja May 1992 – Designed and implemented the most advanced battery manufacturing facility in India Feb 1997 – Received ISO 9001 certification Dec 1997 – Commissioned own plastics and tool room sections; Signed JV with Johnson Controls May 1999 – Received QS 9000 certification Jan 2000 – Launched Amaron automotive batteries Sep 2001 – Awarded ISO 14001 certification May 2002 – Commissioned phase 1 of new automotive battery plant, with capacity of 2 million batteries Jul 2002 – Launched Quanta UPS batteries Aug 2002 – Launched Amaron Hiway and Harvest batteries Mar 2004 – Received Ford World Excellence Award Sep 2004 – Launched Amaron PRO, GO and Fresh automotive batteries Oct 2004 – OE agreement with Maruti Udyog Ltd Jun 2005 – OE agreement with Hyundai Motors Aug 2005 – NK series limited edition batteries launched Dec 2007 – Launched Power Zone and new look Amaron range with Black and Flo batteries

79

Ashok Leyland

Carrying the Nation FROM 18 SEATER TO 82 SEATER DOUBLE-DECKER BUSES, FROM 7.5 TONNE TO 49 TONNE IN HAULAGE VEHICLES, FROM NUMEROUS SPECIAL APPLICATION VEHICLES TO DIESEL ENGINES FOR INDUSTRIAL, MARINE AND GENSET APPLICATIONS,

ASHOK

LEYLAND OFFERS A WIDE EIGHT

RANGE OF PRODUCTS.

OUT OF TEN METRO STATE TRANSPORT BUSES IN INDIA ARE FROM

ASHOK LEYLAND.

or over five decades, Ashok Leyland has been the technology leader in India’s commercial vehicle industry, moulding the country’s commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms.

F

tation in independent India. In the populous Indian metros, four out of five State Transport Undertaking (STU) buses come from Ashok Leyland. Some of them like the double-decker and vestibule buses are unique models from Ashok Leyland, tailormade for high-density routes.

Access to international technology enabled the Company to set a tradition to be first with technology. Be it full air brakes, power steering or rear engine buses, Ashok Leyland pioneered all these concepts.

Responding to the operating conditions and practices in the country, the Company made its vehicles strong, over-engineering them with extra metallic muscles. “Designing durable products that make economic sense to the consumer, using appropriate technology”, became the design philosophy of the Company, which in turn has moulded consumer attitudes and the brand personality.

History

Ashok Leyland vehicles have built a reputation for reliability and ruggedness.

The 5,00,000 vehicles they have put on the roads have considerably eased the additional pressure placed on road transpor-

80

The origin of Ashok Leyland can be traced back to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India’s first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars.

The Company’s destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. Since then Ashok Leyland has been a major presence in India’s commercial vehicle industry with a tradition of technological leadership, achieved through tie-ups with international technology leaders and through vigorous in-house R&D. In 1987, the overseas holding by Land

2010

Rover Leyland International Holdings Limited (LRLIH) was taken over by a joint venture between the Hinduja Group, the Non-Resident Indian trans-national group and IVECO. (Since July 2006, the Hinduja Group is 100% holder of LRLIH).

The blueprint prepared for the future reflected the global ambitions of the company, captured in four words: Global Standards, Global Markets. This was at a time when liberalisation and globalisation were not yet in the air. Ashok Leyland embarked on a major product and process upgradation to match world-class standards of technology.

In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India’s automobile history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. It has also become the first Indian auto company to receive the latest ISO/TS 16949 Corporate Certification (in July 2006) which is specific to the auto industry.

Manufacturing Engaged in producing Buses, Trucks, Engines, Defence and Special Vehicles, Ashok Leyland has seven manufacturing plants - the mother plant at Ennore near Chennai, three plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at Alwar, Bhandara and state-of-the-art facility at Pantnagar. The total covered space at these seven plants exceeds 650,000 sq m and together employs over 11,500 personnel.

Spread over 135 acres, Ashok Leyland Ennore is a highly integrated Mother Plant accounting for over 40% of all production. The plant manufactures a wide range of vehicles and houses production facilities for important aggregates such as Engines, Gear Box, Axles and other key in-house components.

Network Five Regional Offices and Eleven Area Offices More than 140 Dealer outlets for ve2010

hicles Upwards of 75 Authorised Service Centres with more on the anvil Close to 100 Dealer outlets for industrial & marine engines Around 200 Highway Repair Centres dotting even remote highway stretches

IN THE JOURNEY TOWARDS GLOBAL STANDARDS OF QUAL-

As many as 2800 plus outlets for Leyparts, genuine spares for Ashok Leyland products, serviced by 13 Warehouses of the company.

ITY,

Research and Development

WHEN IT BECAME THE

World-class Technology To offer world-class technology that is relevant and affordable to the Indian customer is the philosophy that drives R&D at Ashok Leyland. Over the years, this philosophy has been translated time and again into products that seamlessly integrate international technology with local needs.

The role of R&D is central in fulfilling the company-wide commitment to total customer satisfaction and the increased infrastructural and financial support expresses the company’s determination to become self-reliant in R&D. Value to the Customer The immediate R&D priorities are to proactively address safety and environmental issues, harness and adopt technologies that provide value to the customer in an atmosphere enabling creativity and innovation.

Powering those who “engineer tomorrows” with an enabling infrastructure has been top priority for the company.

But their R&D is not confined within walls. It extends to the test tracks as well.

Rigorous tests are carried out under stringent simulated conditions that replicate the most treacherous landscapes.

ASHOK LEYLAND

REACHED A MAJOR MILESTONE IN

1993

FIRST IN INDIA’S AUTOMOBILE HISTORY TO

ISO 9002 CERTIFICATION. THE WIN THE

MORE COMPREHENSIVE

ISO 9001 CERTIFICATION CAME IN

1994, QS 9000 IN 1998 AND ISO 14001 CERTIFICATION FOR ALL VEHICLE MANUFACTURING UNITS IN

2002. IT HAS

ALSO BECOME THE FIRST INDIAN AUTO COMPANY TO RECEIVE THE LATEST

ISO/TS

16949 CORPORATE CERTIFICATION (IN JULY 2006) WHICH IS SPECIFIC TO THE AUTO INDUSTRY.

Vehicle ruggedness and longevity are a prime customer concern, as they directly impact earnings.

Ever conscious of this, Ashok Leyland makes extensive use of a modern CAD set-up, a comprehensive test track facility (where cobble-stones are calibrated and reset periodically), accelerated fatigue testing rigs and rigorous durability testing facilities.

81

Together they ensure that there is a constant improvement in the life and on-road performance of every make of Ashok Leyland vehicle to hit the roads. The company strives for safety and durability through their R&D efforts.

Associate Companies

THE IMMEDIATE R&D PRIORITIES ARE TO PRO-ACTIVELY ADDRESS SAFETY AND ENVIRONMENTAL ISSUES,

Automotive Coaches and Components Ltd (ACCL) ACCL was promoted by Ashok Leyland and the Tamil Nadu Industrial Development Corporation (TIDCO) in the 1980’s.

ACCL is the largest Tipper Body manufacturer in the organised sector in India, with its plant at Gummidipoondi, Tamil Nadu.

HARNESS AND ADOPT TECHNOLOGIES THAT PROVIDE VALUE TO THE CUSTOMER IN AN ATMOSPHERE ENABLING CREATIVITY AND INNOVATION.

POWERING THOSE WHO “ENGINEER TOMORROWS” WITH AN ENABLING INFRASTRUCTURE HAS BEEN TOP PRIORITY FOR THE COMPANY.

Since 1987, ACCL has been offering its customer in India and abroad, well engineered after-chassis solutions: bus bodies, front-end structures (FES), tankers, aluminium containers, OB vans, energy vans and the like, apart from tippers.

Over the years, through timely technology induction, ACCL has perfected the art and science of high quality body building.

ACCL has built over 18,000 tippers and 24,000 FES. Hinduja Foundries Established in 1959, Ennore Foundries is India’s largest automotive jobbing foundry with production capacity of 45,000 MT in Grey Iron and 3000 MT in aluminium gravity die castings per annum.

Certified to ISO - 9001 and QS 9000 Quality systems, Ennore Foundries is also the largest manufacturer of Cylinder Block and Cylinder Head castings in India catering to different segment like automobiles, tractors, industrial engines and power generators; products ranging from 10 kg to 300 kg in Grey Iron casting and up to 16.5 kg in Aluminium gravity die casting.

IRIZAR TVS Started in 2001, IRIZAR-TVS is a joint venture between Ashok Leyland, TVS & Sons Ltd and IRIZAR, the internationally reputed bus body builder from Spain.

This joint venture addresses the growing demand for luxury coaches in the country.

As a preferred supplier to Ashok Leyland, IRIZAR-TVS provides a platform for Ashok Leyland to introduce new bus body con-

82

cepts and designs even as it heralds the pioneering concept of fully built buses of international luxury standards from an Indian vehicle manufacturer.

Ashok Leyland Project Services Limited (ALPS) ALPS spearheads the project development activities of the Hinduja Group in India. Apart from assisting the investment entities of the Group to identify and successfully implement projects in India, ALPS also provides professional services to help international companies interested in projects in India.

Through its pool of multi-sector professionals (in areas such as power, telecommunications and surface transport infrastructure), ALPS adds the Indian element to the multinational company.

This company provides specialised services for undertaking pre-investment, project development which includes feasibility studies, appraisals, development of joint ventures, company formation and other professional services that are designated to deliver project opportunities from concept to commissioning.

Joint Ventures Nissan Motors A Joint Venture to develop, manufacture and co-operate for the manufacture and distribution of Light Commercial Vehicles under both the Ashok Leyland and Nissan brands. The Joint Venture has three separate companies with different shareholding structures: A vehicle manufacturing company in which the shareholding is Ashok Leyland: 51% and Nissan: 49% A power-train manufacturing company in which Nissan has 51% and Ashok Leyland 49% A technology development company which is owned 50:50 by both partners John Deere & Company A 50:50 Joint Venture to manufacture and market construction equipment under both the Ashok Leyland and John Deere brands.

The JV will commence production by 2010 and will initially roll out Backhoes and 2010

by another 75,000; with the tax concessions available in Uttarakhand, the Company will have a cost advantage to the extent of Rs.40,000 – Rs.50,000 per vehicle.

Corporate Social Responsibility Ashok Leyland defines CSR as: “A commitment to improving the quality of life of their employees, their families, the driver and the local communities around their units, and the society.”

Production and Sales Figures April 2010

Four-wheeldrive Loaders.

MDV Passenger

Financials Ashok Leyland has registered a sales turnover of Rs.7,244.71 crores during 2009-10 compared to Rs.5,981.07 crores in the previous fiscal. Net profit also rose by 123% to touch Rs.423.67 crores.

The Company effectively contained the increase in raw material prices especially steel and rubber reflected in the rise in consumption of raw material by just 17% at Rs.5,217.52 crores.

Ashok Leyland closed the year ended 31st March 2010 with an annual sales volume of 63,926 vehicles, up 17.4%.

The domestic market accounted for 57,947 vehicles - up 21.7%, and exports stood at 5,979 vehicles. Sales during March 2010 were 10,067 vehicles, up 97.4%.

Domestic sales were at 9,299 vehicles reflecting an increase of 110% while exports also showed an increase of 14% at 768 vehicles. Total production for the year was 64,673 vehicles.

Ashok Leyland’s new, modern, technologically world-class manufacturing facility was inaugurated at Pantnagar in Uttarakhand. The plant will be the Company’s largest and combines the latest manufacturing technologies with best in class industrial architecture bound together in an ecologically sensitive environment. It will eventually augment Ashok Leyland’s present installed capacity of 100,000 vehicles 2010

Production

1,614

2,034

1,497

Domestic Sales

1,176

2,263

596

272

281

36

Production

5,281

7,293

1,369

Domestic Sales

Export Sales MDV Goods

LCV Goods

4,774

6,959

1,369

Export Sales

227

475

99

Production

115

120

90

40

77

24

Domestic Sales Export Sales Total

March 2010 April 2009

11

12

0

Production

7,010

9,447

2,956

Domestic Sales

5,990

9,299

1,615

510

768

135

Export Sales

Ashok Leyland has always been socially responsible. The massive HIV/AIDS awareness campaign covering all its employees, the driver community and the immediate community around its units; the medical and blood donation camps it conducts in the immediate community around its units; the green initiatives; its revenue-neutral driver training school in Namakkal (Tamil Nadu) and Burari (near New Delhi) to train drivers “on and off the road”; all its measures at driver welfare; its initiatives at setting up and hand-holding women self-help groups around its units to sustain themselves economically; its road safety drive on highways around its units; its emphasis on green supply chain management; and its research efforts at conserving resources are some of the initiatives that are ongoing. Ashok Leyland encourages employee involvement, engaging the families of the employees, and involving local, experienced and credible resources in all its CSR activities. ❑

ASHOK LEYLAND HAS REGISTERED A SALES TURNOVER OF

RS.7,244.71 CRORES DURING 200910 COMPARED TO RS.5,981.07 CRORES IN THE PREVIOUS FISCAL. NET PROFIT ALSO ROSE BY 123% TO TOUCH RS.423.67 CRORES.

83

Biocon

The

Queen B OVER THE YEARS, BIOCON HAS EVOLVED FROM AN ENZYME-MANUFACTURING COMPANY INTO A FULLY INTEGRATED BIOPHARMACEUTICAL ENTERPRISE.

FROM DISCOVERY TO DEVELOPMENT AND COMMERCIALISATION, THEY HAVE THE DEFINING SCIENCE, COST-EFFECTIVE DRUG DEVELOPMENT CAPABILITIES AND SIGNIFICANT MANUFACTURING CAPACITY TO MOVE IDEAS TO MARKET. TODAY, THEY LEVERAGE A FORMIDABLE COMBINATION OF PROPRIETARY FERMENTATION TECHNOLOGIES AND RESEARCH SKILLS TO DEVELOP AFFORDABLE THERAPY FOR UNMET MEDICAL NEEDS.

B

iocon has rapidly developed a robust drug pipeline, led by monoclonal antibodies and several other molecules at exciting stages in the biopharmaceutical value chain. With the successful commercial launch of their first anticancer drug and several promising discovery partnerships in the clinic, they remain committed to scaling new heights in frontier science and achieving new milestones in affordable medicine.

To navigate the challenges of innovation in the next decade they have adopted a well-defined strategic framework that will transform scientific discoveries into advances in human healthcare and generate incremental value for their shareholders.

Leveraging India’s globally competitive cost base and exceptional scientific people resource, they are advancing their in-house R&D programs, while also providing custom and clinical research services to inter84

national pharmaceutical and biotechnology majors through their subsidiary companies, Syngene and Clinigene.

Biocon’s Innovation Matrix is a fourdimensional endeavour which extends into the realms of the known and the unknown. Creativity in the known realm builds on existing knowledge and can result in two types of innovation: Incremental and Evolutionary.

Creativity that challenges unknown boundaries and creates new knowledge is Experimental and Transformational in its impact. A portfolio that covers all four spheres enables Biocon to sustain innovation in the short, medium and long terms.

Biocon’s biosimilar insulin, an outcome of incremental innovation, is one of the world’s most affordable therapies for insulin dependent diabetes. Bio-generic monoclonal antibodies are forming the core of their evolutionary innovation strategy. In the more challenging area of experimental innovation, Biocon is at the cutting edge. They are developing conjugated antibodies with a US Biotech startup, IATRICa Inc. to potentially deliver therapeutic cancer vaccines. They are also pursuing a path of breakthrough innovation through phase III human clinical trials to develop the world’s first Oral Insulin. Biocon is thus rapidly moving towards commercialising novel biologics with a “Made in India” label.

Businesses Biocon’s fully integrated business model spans the entire drug value chain, from pre-clinical discovery to clinical development and through to commercialisation. Their businesses in custom research (Syngene), clinical 2010

development (Clinigene) and biopharmaceuticals (Biocon) provide multiple revenue streams to balance risk, drive innovation, deliver products and accelerate growth. As they increase the complexity and scope of their own R&D and manufacturing operations, especially in new product discovery and development, they believe their custom and clinical research services will continue to offer important synergies.

Syngene: Pre-Clinical Discovery Biocon’s custom research organisation, Syngene, offers high value discovery and development services, from target identification and validation to small molecule and library synthesis. With their reputation for meticulous IPR protection, they provide pharmaceutical and biotechnology majors customised solutions in the areas of synthetic chemistry and molecular biology.

Clinigene: Clinical Development Biocon’s clinical research organisation, Clinigene, specialises in Phase I-IV clinical trials and studies, using well-characterised clinical databases in diabetes, oncology, lipidemia and cardiovascular diseases. They offer these services at their CAP and NABL accredited Central Reference Laboratory and a state-of-the-art Bioavailability and Bioequivalence (BA/BE) Centre.

Biocon: Commercialisation Biocon has an impressive track record of commercialisation capabilities. They have brought to market a considerable portfolio of biopharmaceuticals, led by their blockbuster Statins. The commercialisation

2010

of Insulin, Immuno-suppressants and a range of Biogenerics demonstrates their highly advanced process development and manufacturing expertise.

Under rapid progress are two challenging collaborative projects for the development of novel medicine, including Oral Insulin and T1h. Biocon also markets a basket of branded formulations in India, including INSUGEN, BIOMAb EGFR and EPO.

Facility Approvals USFDA approved facilities; Biocon Campus (2000, 2003, 2006) and Biocon Park (2006). Recent USFDA inspection in January 2009 for both facilities. Customers received their ANDA approval referring to these sites.

EUGMP Certification for Biocon Campus (2004, 2005, 2006) and Biocon Park (2006). Recent EUGMP inspection for Biocon Campus in 2008.

Mexican Health Authority approval for both Biocon Campus and Biocon Park facilities in 2006.

Cuban approval for both Biocon Campus and Biocon Park facilities in 2007.

Jordan FDA approval for both Biocon Campus and Biocon Park facilities in 2008.

Anvisa (Brazil) approval for both Biocon Campus and Biocon Park facilities in 2008.

The Iran Ministry of Health inspected and approved oral formulations of Immunosuppressant category.

Nepal Health Authority inspected and approved BioMab facility.

UAE ministry of Health granted facility approval for both Biocon Campus and Biocon park facilities in 2007 National Agency of Food and Drug Control, Indonesia inspected both facilities.

Received a number of CoPP (Certificate of a Pharmaceutical Product) certificates as per WHO norms.

Schedule – M GMP Certification for both Biocon Campus and Biocon Park facilities as per D&C act, India

Financials Biocon has posted a 224% growth in net profit at Rs.81 crore in the quarter ended March 31, 2010, up from Rs.25 crore in the corresponding quarter of the previous year. This was partly the result of improved performance and a more buoyant economy, but also a reflection of the Forex losses it suffered in the same quarter last year. Revenues for the quarter stood at Rs.666 crore, a growth of 37% as compared to Rs.487 crore in the year-ago period. For the financial year ended March 31, 2010, the company’s revenues went past the half-a-billion dollar mark at Rs 2,405 crore, a 44% growth over the previous fiscal. The company’s biopharmaceutical vertical saw a 28% growth during the year, the statins business grew 26% and branded formulations grew 35%. The insulin and immunosuppressants businesses saw annual growth of 20%. All segments of Biocon’s business have demonstrated robust growth.

They are confident of sustaining good growth momentum in the years ahead given their increasingly differentiated profile, enhanced by key global partnerships. ❑ 85

Dr. Reddy’s

Global Expertise,

Local Care ESTABLISHED IN 1984, DR. REDDY’S LABORATORIES IS AN EMERGING GLOBAL PHARMACEUTICAL COMPANY COMMITTED

AFFORDABLE AND INNOVATIVE MEDICINES FOR HEALTHIER LIVES. THEIR STRONG PORTFOLIO OF BUSINESSES, GEOGRAPHIES AND PRODUCTS GIVES THEM AN EDGE IN AN INCREASTO PROVIDING

INGLY COMPETITIVE GLOBAL MARKET AND ALLOWS THEM TO PROVIDE AFFORDABLE MEDICATION TO PEOPLE ACROSS THE WORLD, REGARDLESS OF GEOGRAPHIC AND SOCIO-ECONOMIC BARRIERS.

A

s a fully integrated pharmaceutical company, Dr. Reddy’s have set their purpose to provide affordable and innovative medicines through three core businesses: Pharmaceutical Services and Active Ingredients, comprising their Active Pharmaceuticals and Custom Pharmaceuticals businesses; Global Generics, which includes branded and unbranded generics; and Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated Formulations, and Generic Biopharmaceuticals.

Their products are marketed globally, with a focus on India, US, Europe and Russia. Dr. Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-infectives and inflammation.

Affordability The high cost of many medicines puts them out of the reach of millions of people who desperately need them. As a global pharmaceutical company, Dr. Reddy’s take their responsibility very seriously to help alleviate the burden of disease on individuals and on the world. Through their Global Generics business, they provide high quality, lower-cost alternatives to innovator drugs. Their wide range of generic medicines brings hope and health to people around the globe.

Innovation Despite the great advances of medical science, there are still far too many diseases for which there are no cures or no satisfactory treatments.

Dr. Reddy’s believe that innovation – in research, processes and technologies – holds the key to finding solutions for unmet or inadequately met medical needs. Their Proprietary Products business is dedicated to discovering new or better treatments than currently exist. In addition, their Custom Pharmaceutical Services business works with Innovator companies and emerging biotech firms to accelerate the development of new molecules, while lowering research costs.

Deep Manufacturing Expertise Dr. Reddy’s has 16 world-class

86

manufacturing facilities of which 9 have a long history of regular USFDA inspections. With an annual capacity of nine billion tablets/ capsules a year, dedicated to servicing the more regulated markets, one of their finished dosages facilities is among the largest in Asia. Their facilities are designed to respond to a wide range of technologies - oral solids, injectibles, topicals, inhalers, cytotoxic, hormonals and other dosage forms.

Likewise their API facilities offer lean manufacturing, adhere to stringent regulatory guidelines and continually drive cost competitiveness. Such manufacturing capabilities and the Company’s inherent expertise to navigate intellectual property road blocks make them a preferred partner for some of the world’s leading pharmaceutical companies.

2010

Globally Synchronized Supply Chain

1 FDA-inspected plant in Mirfield, UK

Dr. Reddy’s put the needs of their partners and customers first. Their globally synchronized supply chain and a comprehensive information technology platform help them assure customers of timely delivery and superior inventory turns. The uninterrupted success of their customers’ business is their promise.

3 Technology development centres (2 in Hyderabad; 1 in Cambridge, UK)

Regulatory Performance Over the years Dr. Reddy’s have built an expertise in understanding the regulatory frameworks of the various countries in which they operate. This has given them a distinctive edge, for themselves and their customers.

The Company has built a successful track record of timely and extensive approvals. As an example, they are among the leaders in terms of DMFs and ANDAs in the US itself, with more than half of these being Para IV possibilities.

Quality & Product Responsibility At Dr Reddy’s, they strictly follow quality control and quality assurance systems as specified by regulatory requirements in each of the geographies in which they operate. For them, product responsibility extends through the life cycle of the product – from product development to manufacture to product release to post-launch. They comply with the internationally accepted International Conference on Harmonization (ICH) guidelines in product development and they have independent quality control and quality assurance teams to ensure multi-stage quality compliance.

Infrastructure Pharma Services & Active Ingredients 6 FDA-inspected plants in India 1 Cytotoxic facility 1 FDA-inspected plant in Mexico

2010

Product Development Integrated Product development Capabilities that includes API development, Formulations development and analytical development skills.

One Integrated Product development facility in Hyderabad.

Global Generics 6 Formulation plants in India (1 USFDA inspected) 1 USFDA inspected plant in USA New Chemical Entities Conducts research in the areas of metabolic disorders, cardiovascular indications and Cancer.

Biologics Biologics development centre GMP production E coli and mammalian cell platforms

Other awards in Dr. Reddy’s kitty include: Americares Spirit of Humanity Awards Special Award for Haiti Earthquake Relief; Sponsored by AmeriCares India Foundation Arcil - Global HR Excellence Awards 2009-10 Organization with Innovative HR Practices; Outstanding Contribution to Cause of Education Dr. M Venkateswarlu Memorial Award 2009 The Indian Foundation for Pharmaceutical Reference Standard Substances (IFPRESS) Golden Peacock Award 2009 For excellence in Corporate Governance NASSCOM CNBC IT User Award 2009 Pharmaceutical vertical Corporate Social Responsibility Award

Accolades Dr. Reddy’s has, for the second consecutive year, been ranked the Best Workplace in the biotech/ pharmaceutical industry in India in a survey conducted by The Economic Times and the Great Place to Work Institute.

The industry-wise best employers list is drawn from the Top 50 in the Best Workplaces list.

The 2009 Best Workplaces study, covering 373 organizations, is the largest Best Employer study in India.

This study uses an employee-centric methodology which measures the levels of trust, pride and camaraderie in an organization. Great Place to Work institute, a US based institute that ranks Best Workplaces globally, carried out the study together with The Economic Times, India’s top business newspaper.

OVER THE YEARS DR. REDDY’S HAVE BUILT AN EXPERTISE IN UNDERSTANDING THE REGULATORY FRAMEWORKS OF THE VARIOUS COUNTRIES IN WHICH THEY OPERATE.

THIS HAS GIVEN THEM A DISTINCTIVE EDGE, FOR THEMSELVES AND THEIR CUSTOMERS. THE

COMPANY HAS BUILT A SUCCESSFUL TRACK RECORD OF TIMELY AND EXTENSIVE APPROVALS.

87

CNBC - India Business Leader Awards (IBLA) 2009 SAFA Best Presented Accounts Awards 2008 Manufacturing Sector AIF Annual Spring Award 2009 American India Foundation Best Workplace Biotech/ Pharma Industry

CONSOLIDATED REVENUES FOR DR. REDDY’S ARE AT RS.70.3 BILLION IN FY10 VERSUS RS.69.4 BILLION IN FY09 WITH A YEAR-ON-YEAR GROWTH OF 1%. EXCLUDING THE REVENUES FROM AUTHO-

The Economic Times & Great Places to Work Institute

RIZED GENERIC SALES OF

ICT Platinum Award

ENUE GROWTH IS

Institute of Chemical Technology, Pune Corporate Collateral Awards Public Relations Council of India

SUMATRIPTAN, THE REV-

9%.

THIS IS LARGELY DRIVEN

BY THE BRANDED GENERICS SEGMENT OF GLOBAL GENERICS.

In-House Communications Excellence Awards Shailaja Nair Foundation Global HR Excellence Awards 2008-09 Asia Pacific HR Congress

Quality Management At Dr. Reddy’s, Quality and Compliance are the main business goals – and these are the responsibility of every employee. A number of processes in manufacturing have been automated to reduce the chances of human error in their functioning. They also have stringent procedures to assess the impact of errors and to take steps to prevent these from happening again.

has gone wrong. For this reason, they place a great emphasis on the induction programs and on-the-job training for their people, so that they are well-equipped with the right skills and knowledge to follow the correct procedures.

Another recent development at Dr. Reddy’s is the introduction of Focused Teams that concentrate on doing only one job at a time. This has resulted in better prioritisation during the development stage itself, and has helped reduce the scope for errors. All the teams are encouraged to report any non–conformances, which in turn, get addressed by written systems and procedures that are in place.

They have processes to ensure continuous improvement, a few of which are: a corrective action and preventive action process (CAPA), which is triggered in the event of any incident or audit findings learning from experience gathered through routinely conducted external training by experts in the field, like machine manufacturers and industry experts The Quality function at Dr. Reddy’s also constantly reviews and improves vendor management processes, to ensure consistent quality of inputs and raw materials.

Financials Consolidated revenues for Dr. Reddy’s are at Rs.70.3 billion ($1.6 billion) in FY10 versus Rs.69.4 billion ($1.5 billion) in FY09 with a year-on-year growth of 1%. Excluding the revenues from authorized generic sales of sumatriptan, the revenue growth is 9%.

This is largely driven by the Branded Generics segment of Global Generics.

Revenues for Q4 FY10 are at Rs. 16.4 billion ($365 million).

Revenues from Global Generics for FY10 are at Rs.48.6 billion ($1.1 billion) representing a marginal decline of 2% over the previous year. Excluding the revenues from authorized generic sales of sumatriptan, the growth is 8%. Revenues for Q4 FY10 are at Rs.11.2 billion ($109 million).

They have in-process checks at critical stages to ensure that product manufacturing is heading in the right direction; Dr. Reddy’s aims to ensure that every step in their processes is done ‘first time right’. This is why they have independent Doers and Checkers at various stages. Doers hold greater accountability as only they can get the job done right the first time, while, equally important, the Checkers have to detect if anything 88

2010

Revenues from PSAI are at Rs.20.4 billion ($454 million) in FY10 with a growth of 9%. Revenues for Q4 FY10 are at Rs.4.9 billion ($109 million).

There was an impairment charge in FY10 amounting to Rs.8.6 billion ($191 million) recorded in Q3 FY10, significantly on account of a non-cash write-down of intangible assets, ‘beta’ brand and goodwill of betapharm.

in fact, caring for communities has always been an essential part of its DNA. The Company reached out to its neighbours when it first started off, through cleanliness drives in areas near its manufacturing units. Over time, efforts were stepped up to build long-term value for individuals and society as a whole.

Adjusted EBITDA at Rs.15.8 billion ($352 million) in FY10 with a year-onyear growth of 4%. Adjusted EBITDA for Q4 FY10 is at Rs.3.5 billion ($78 million). Adjusted Net Profit after Tax for FY10 is at Rs.9.2 billion ($205 million) with a year-on-year growth of 10%. Adjusted Net Profit after Tax for Q4 FY10 is at Rs.1.9 billion ($43 million).

The company met its guidance on RoCE with an Adjusted RoCE at 17% for FY10. During the year, the company launched 103 new generic products, filed 121 new product registrations and filed 36 DMFs globally.

Corporate Social Responsibility Environment In their efforts to promote Sustainability with regard to their impact on the Planet, at Dr. Reddy’s they look at two aspects: On one hand, they need to design products, processes and plants in such a way that they have a sensible environmental footprint from Day

THE COMPANY MET ITS GUIDANCE ON ROCE WITH AN ADJUSTED ROCE AT 17% FOR FY10. DURING THE YEAR, THE COMPANY LAUNCHED 103 NEW GENERIC PRODUCTS, FILED 121 NEW PRODUCT REGISTRATIONS AND FILED 36 DMFS GLOBALLY. 2010

Through Dr. Reddy’s Foundation, the Company has launched a number of social initiatives ranging from

education to livelihoods and micro-enterprises.

One. On the other hand, they need to minimize and manage the adverse impacts of their existing environmental footprint through treatment, recycling and safe disposal.

At another level, Dr. Reddy’s Sustainability efforts are manifested in two ways: First, they comply with the laws and regulations; second, they go beyond what the law mandates in order to keep their planet safe for all future generations to come.

Their “License to Operate” is linked mainly to successfully minimizing the adverse impacts of their existing environmental footprint through treatment and recycling, and ensuring that they comply with the law of the land.

However, their “Responsibility to the future generations” is mostly linked to the way they design their products, processes and plants to have a sensible environmental footprint, as they strive to go beyond mere compliance.

Community Giving back to the community that supports them, is the mission of many a forward-thinking organization. Dr. Reddy’s implemented this long ago;

Dr Reddy’s Foundation Set up in 1996, Dr. Reddy’s Foundation (DRF) is a non-profit partner of Dr. Reddy’s Laboratories. Driven by its belief in the inherent motivation and capacity of the human being for progress – given the appropriate and adequate environment – DRF innovates and tries out novel concepts that are continuously refined and scaled up to cover larger groups of disadvantaged populations.

Seeing the possibilities rather than the problems created by change, DRF plays the role of a change agent in the social sector, by recognizing and pursuing new opportunities to serve that mission, and by engaging in a process of continuous innovation, adaptation and learning.

Livelihoods - Through a wide array of vocational training programs, DRF addresses the issues of employability, income generation and consequent improvement in quality of life.

Education - DRF strives to provide various opportunities for learning to those who have never been to school, or have dropped out of it; it also works to improve the quality of education in schools. ❑ 89

GMR Varalakshmi Foundation (GMRVF). GMRVF works with the underprivileged sections of the community in all the locations where the Group has business interests. With its foray into the Airports sector, the Group has established itself as a front runner and pioneer in the core infrastructure areas of the country.

Going forward, the Group will actively seek opportunities in core areas of the country’s infrastructure development including Transportation and Property Development. All these would be driven by a single minded path of translating the vision of the Group by building entrepreneurial organisations that make a difference to society through creation of value.

Agri Business

GMR Group

Developing

Excellence GMR GROUP IS ONE OF THE FASTEST GROWING INFRASTRUCTURE ORGANISATIONS IN THE COUNTRY WITH INTERESTS IN AIRPORTS, ENERGY, HIGHWAYS AND URBAN INFRASTRUCTURE (INCLUDING SEZ); EMPLOYING THE PUBLIC PRIVATE PARTNERSHIP MODEL, THE GROUP HAS SUCCESSFULLY IMPLEMENTED SEVERAL INFRASTRUCTURE PROJECTS IN INDIA.

G

MR Group is a Bangalore headquartered global infrastructure major with interests in the Airports, Energy, Highways and Urban infrastructure (including SEZ). In addition,

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the other focus area of the Group is the Agri-business with Sugar as its main product-line. The Group is also actively engaged in the areas of Education, Health, Hygiene and Sanitation, Empowerment & Livelihoods and Community-Based Programmes under its Foundation wing, reaffirming its grass root presence as change agents of society in the field of Corporate Social Responsibility. A dedicated division, the GMR Varalakshmi Foundation, manned by committed professionals, oversees and manages these projects across India.

The Group’s commitment to inclusive growth is achieved through the

Sankili Sugar Plant The Group’s Sugar business started production in 1997. It has since set new standards in forward integration by initiating down stream production of plantation Sugar and co-generated power, ethanol, rectified spirit, biocomposted organics manure and biofertiliser CO2 gas in its distillery units.

Ramdurg Sugar Complex The integrated sugar complex located in Ramdurg, in the cane rich Belgaum district of Karnataka has a crushing capacity of 2500 TCD scalable to 4000 TCD and a captive power generation capacity of 6 MW, which is being expanded to 15 MW. Climate Change Mitigation GMR Industries Limited has set up a “Methane Recovery and Power Generation Plant” at its integrated sugar complex at Sankili in a pioneering effort towards climate change mitigation. The project activity is one of its kind in the world.

Cane Development Program GMR Industries Sugar business has implemented several innovative measures in backward integration.

The cane development programme being one of several initiatives has transformed the socio-economic face of the region.

2010

Airports Delhi International Airport Limited (DIAL) DIAL is a joint venture consortium of GMR Group (54%), Airports Authority of India (26%), Fraport & Eraman Malaysia (10% each). GMR is the lead member of the consortium; Fraport AG is the airport operator, Eraman Malaysia - the retail advisors.

Besides upgrading the existing terminals, DIAL has already commissioned a new runway 11-29 at IGI Airport. It has also inaugurated the new domestic departure terminal 1D (T1D). T1D will increase the capacity of domestic departures to 10 million passengers per annum.

The new terminal has a modern 4 level in-line baggage handling system to eliminate baggage X-ray prior to check in, spacious security hold area with extensive F&B and retail facilities, special contact zone for passengers with special needs and baggage handling area on a separate level allowing greater space for passenger amenities.

DIAL has also constructed an integrated passenger terminal (Terminal 3). The first phase of the airport is designed to handle 60 million passengers per annum (mppa). This phase will be completed by mid 2010.

GMR Hyderabad International Airport Limited GMR Hyderabad International Airport Limited (GHIAL) is a joint venture company promoted by the GMR Group (63%) in partnership with government of India (13%), government of Andhra Pradesh (13%) and Malaysia Airports Holdings Berhad (11%). The Company was incorporated to design, finance, build, operate and maintain a world class Greenfield airport at Shamshabad, Hyderabad.

The project is based on the Public Private Partnership (PPP) model and is structured on a Build, Own, Operate and Transfer (BOOT) basis.

The airport which was commissioned in a record time of 31 months 2010

has an initial capacity of 12 million passengers per annum (MPPA) and 100,000 tonnes of cargo handling capacity per annum. The Project has the flexibility to increase capacity to accommodate over 40 MPPA and shall be developed in a phased manner.

The airport provides world-class facilities and infrastructure, in accordance with ICAO standards and practices to handle large aircraft and international traffic. Its integrated domestic and international terminals are equipped with 12 contact boarding bridges, 30 remote stands, Common User Terminal Equipment (CUTE), self check-in kiosks (Common User Self Service- CUSS) and 46 immigration counters. It also incorporates modern IT systems including Flight Information Display Screens, Baggage Handling System (BHS), and Airport Operational Database (AODB) technology for the first time in India.

RGIA is the first Indian airport to have the Airport Operations Control Centre which acts as the nerve centre for all coordination within the airport.

THE GROUP IS ACTIVELY ENGAGED IN THE AREAS OF

EDUCATION, HEALTH, HYGIENE AND SANITATION, EMPOWERMENT & LIVELIHOODS AND COMMUNITY-BASED PROGRAMMES UNDER ITS FOUNDATION WING, REAFFIRMING ITS GRASS ROOT PRESENCE AS CHANGE AGENTS OF SOCIETY

CORPORATE SOCIAL RESPONSIBILITY. A DEDICATED DIVISION, THE GMR VARALAKSHMI FOUNDATION, MANNED BY COMMITTED PROFESSIONALS, OVERSEES AND MANAGES THESE PROJECTS ACROSS INDIA. IN THE FIELD OF

Energy GMR Energy Trading Limited GMR’s Barge mounted power plant is an environment friendly, Naphtha based plant. For its compliance with internationally- benchmarked environmental standards, the plant received the ISO 14001 and OHSAS 18001 certifications from Det Norske Veritas. GMR Energy was commissioned in November 2001.

GMR Power Corporation Pvt Ltd The 200 MW power plant in Chennai was commissioned in 1998. The entire power generated at this plant is supplied to the Tamil Nadu State Electricity Board.

A distinguishing feature of this plant is a sophisticated sewage treatment unit, the first and only one of its kind in India. The plant treats 7200 cubic metres of raw sewage per day from Chennai Metropolitan & Sewerage Board to produce 5400 cubic metres of clean water for its own use. As an appreciation for its efforts toward conserving the environment, the plant has received the renowned Dr. M.S. Swaminathan Award for Environmental Protection.

Furthermore, the plant releases clean water and is therefore more eco-friendly. This project has received ISO 14001 and OHSAS 18001 certifications from Det Norske Veritas.

GMR Vemagiri Power Generation Ltd The GMR Group’s third power generation project is a natural gas based thermal power plant with an installed capacity of 388.5 MW. It is located at Vemagiri, 12 kilometres away from Rajahmundry in Andhra Pradesh. The plant commenced commercial operation in February 2008.

Highways GMR Group has six highway projects across India measuring a total length of 424 km of which the toll based projects constitute 260 km and the annuity based projects total 164 km.

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Tambaram – Tindivanam The strengthening and widening of the 93 km stretch was carried out by a Special Purpose Vehicle (SPV) Tuni – Anakapalli Implemented through a Special Purpose Vehicle (SPV), this 60 km stretch of highway has been completed as per schedule

Foundation (GMRVF) is to develop social infrastructure and enhance the quality of life of communities around the locations where the Group has a presence. The Foundation is a Section 25 (not-for-profit) company. It has its own professional staff drawn from top academic and social work institutions.

Farukhnagar – Jadcherla Four lane expansion of existing 58 km two lane stretch (toll based) on NH-7 in Andhra Pradesh

The Foundation has built and is maintaining 8 public toilets in villages and slums. These clean and hygienic toilets are made available to families of the communities for a nominal fee of Rs.10 per family per month.

These toilets have improved the sanitary condition in the areas and are of great help especially to the women of these communities.

Adloor – Gundla Pochanpalli Four lane expansion of existing two lane 107 km stretch (annuity based) on NH-7 in Andhra Pradesh

GMR Aviation GMR Aviation operates and owns one of the youngest fleets in the country. The fleet is rapidly growing with a range of both fixed and rotary wing aircrafts to cater to varying travel distances, passenger capacity and comfort levels. GMR Aviation was formed in 2006 to offer aircraft charter services and consultancy for business aviation. Apart from owning and managing its own fleet, GMR Aviation also manages aircrafts of other business groups.

Corporate Social Responsibility The mandate of GMR Varalakshmi 92

Health, Hygiene & Sanitation GMRVF, in collaboration with HelpAge India, is running 3 Mobile Medical Units dedicated to taking healthcare to the doorsteps of the elderly.

The units provide free medical checks and medicines to those over 60 years of age. These medical units cover over 90 villages visiting each of them every week.

Over 4500 elderly people benefit from this initiative.

Ambala – Chandigarh Four lane expansion of existing two lane 35 km stretch (toll based) on NH-21 and NH-22 in Haryana - Punjab

Tindivanam – Ulunderpet Four lane expansion of existing 71 km two lane stretch (toll based) on NH-45 in Tamil Nadu

ships and educational loans to ensure that deserving students, irrespective of their financial backgrounds, have access to these institutions

Education GMRVF runs educational institutions with the aim of bringing quality education to the under-served areas and sections of the community.

Currently the Foundation is involved in the following educational institutions GMR Institute of Technology (GMRIT) Sri GCSR College GMR Varalakshmi DAV School Seethamahalakshmi DAV Public School (SMLDAV)

Empowerment & Livelihoods The Foundation has set up and is running several institutes of Entrepreneurship Development. Three of these are in partnership with Andhra Bank, and two are being run independently.

These Institutes train unemployed youth in a variety of skills like plumbing, tailoring, two-wheeler repairs, photography and videography The Foundation is currently facilitating 80 SHGs through motivation, training, workshops etc. These SHGs have managed to raise loan of upwards of Rs.20 lakh and are engaged in a variety of income generation activities that has contributed to family income. ❑

St. Ann’s Varalakshmi Vidyashram GMR Chinmaya Vidyalaya Foundation also facilitates scholar2010

GVK Group

Bridging Distances O

GVK IS A DIVERSIFIED BUSINESS ENTITY WITH

A PREDOMINANT FOCUS ON INFRASTRUCTURE AND

URBAN INFRA-

STRUCTURE PROJECTS.

AMONG THE PIONEERS TO ENVISION THE

INDIA GROWTH SAGA, GVK REALIZED THE POTENTIAL NEEDS OF A RAPIDLY DEVELOPING ECONOMY, PARTICULARLY IN THE AREA OF INFRASTRUCTURE DEVELOPMENT. IT ALSO HAS A SIGNIFICANT

HOSSERVICES AND

PRESENCE IN THE PITALITY,

MANUFACTURING SECTOR.

ne of the challenges facing the fast paced economic development in India is to create world-class infrastructure which will further boost the growth and provide people with a better quality of life. GVK has responded to the challenge by taking a lead in developing projects of national importance in diverse areas ranging from power, airports, and roads. It also consolidated its position of strength in hospitality and manufacturing.

India today is a growing nation with growing needs. The need for more power, world-class airports, roads and robust urban infrastructure, the need for

worldclass facilities in hospitality, for newer horizons in science and research and so much more. The endeavours of GVK have always been to go beyond just catering to these needs. They look at India’s economic growth as an opportunity to empower people and enrich their lives and further contribute to the nation’s growth and success.

94

GVK has set many benchmarks in the infrastructure sector. Over the years they have developed expertise in executing challenging and complex infrastructure projects. GVK is now making rapid forays in the areas of Infrastructure, Hospitality, Manufacturing and Services.

They continue working towards building a bet-

ter India for the generation of today and the future generations of tomorrow and will continue to make it happen.

People make a company and GVK is no exception. Every member of GVK strives to achieve a common goal and shares a common vision inspired by the strength of unity of action. Having an asset base of close to Rs.50 Billion (1,220 Million USD), GVK boasts of prestigious projects on hand worth of about Rs.50 Billion (3,658 Million USD). Backed by the strength of 7,000 professionals with the required capabilities and technical acumen, GVK is surging 2010

ahead, building on its achievements and exploring newer avenues for growth.

GVK PIL As a pioneer in infrastructure development in India, GVK has established a strong presence in areas such as Power, Airports and Roads. It is also exploring newer opportunities in the sector. Till date GVK has invested over Rs.5,000 crore into Infrastructure Projects and has on hand projects in the pipeline of over Rs.13,000 crore.

Power GVK Power frastructure (GVKPIL) ated power

and InLimited has initiprojects that will

sector, setting up India’s first Independent Power Project (IPP), the 216 MW Jegurupadu combined cycle power plant (CCPP) with an investment of Rs.1,025 crore in 1997. The project is one of its kind and has been lauded as the ‘horticulture project that also produces power’. GVK’s commitment to the environment is evident from the extensive green belt area created in and around the project that has also won international appreciation. The plant is designed to enable enhancement of operational efficiencies and minimizing environmental impact.

IFC Washington has noted the plant as a ‘Model Power Plant’ taking into consideration its performance in Environment, Health and Safety.

The Energy Resources

manage and develop CSIA. At present, CSIA caters to 22.25 million passengers and handles around 480,000 tonnes of cargo annually. The modernisation of CSIA assumes great significance given Mumbai’s status as India’s financial capital and its aspirations to become a key business centre in Asia.

MIAL’s vision is to make CSIA a truly world–class airport and equip it with the best possible facilities, infrastructure and management.

In the next 5 years, MIAL plans to transform CSIA into an international landmark benchmarked on global standards of airport operations. As part of the master plan, a brand new terminal equipped with latest systems and technology has been proposed at Sahar.

MIAL also plans to significantly improve the cargo facilities at CSIA. A new integrated cargo complex is being planned, which will be equipped to cater to all kind of goods including perishables and agri-produce.

With the up-gradation of the infrastructure, CSIA will be

cross over 2000 MW capacity once operational. While Jegurupadu Combined Cycle Power Plant is operational, several ambitious power projects are under development.

GVK is developing power projects that are based on coal, gas and hydel resources. The projects are being developed across several States in the country including Andhra Pradesh, Punjab and Uttarakhand.

Jegurupadu Combined Cycle Power Plant – I GVK has been the pioneer in power 2010

Institute (TERI) awarded Eco-Rating ‘A’ Gold Star, its highest ranking followed by a thorough audit.

Airports MIAL Mumbai International Airport Pvt. Ltd. (MIAL), a joint venture company owned by the GVK led consortium (74%) and Airports Authority of India (26%) was formed in March 2006 to

able to cater to passenger traffic of 40 million passengers per year and handle cargo traffic of 1 million tonnes per year.

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BIAL A public limited company, Bangalore International Airport Limited (BIAL), under the Companies Act was constituted to build, own and operate the new International Airport at Bengaluru. In July 2004, BIAL and Government of India entered into a Concession Agreement for the development of a new Greenfield Airport at Bengaluru. 74% of the equity in BIAL is held by the private promoters and the remaining 26% is owned by the Airport Authority of India (AAI) and the Karnataka State Industrial Investment and Development Corporation Limited (KSIIDCL) equally.

At present Bengaluru International Airport handles annually 10 Million passengers and a cargo load of 170000 Metric tonnes. 31 Airlines currently operate from the airport, of which 22 are international airlines and 9 are domestic carriers. BIAL has ambitious expansion plans for the development of Bengaluru International Airport. As a first step in this direction, design and layout for increasing the capacity of the existing Terminal T1 to 17 million passengers per annum have been finalised and work on the ground has commenced. The airport premises will be spruced up with a completely revamped landscaping improving the visual experience

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Roads

GVK HAS SET MANY BENCHMARKS IN THE INFRASTRUCTURE SECTOR.

OVER THE YEARS THEY HAVE DEVELOPED EXPERTISE IN EXECUTING CHALLENGING AND COMPLEX INFRASTRUCTURE PROJECTS.

GVK IS

NOW MAKING RAPID FORAYS IN THE AREAS OF INFRASTRUCTURE,

HOSPITALITY,

MANUFACTURING AND SERVICES.

from the Interchange on the National Highway 7 to right up to the Terminal building. Further plans have already been initiated to construct the New Terminal building T2 with an initial capacity of 15 million passengers per annum, with a provision to expand it to 36 Million in due course. Airside infrastructure would be strengthened simultaneously to cater to the increased passenger volumes as part of the expansion program.

The Jaipur - Kishangarh BOT project, a segment of the Golden Quadrilateral National Highways Development Project of the Government of India, is yet another instance where GVK has won a concession in a highly competitive context.

The Project, with a value of Rs.7,060 Million (157 Million USD) including a grant of Rs.2,110 Million (47 Million USD) from the National Highways Authority of India, involves conversion of existing two lanes to six lanes from the KM 273/500 to KM 364/886 stretch of the Jaipur - Kishangarh section of National Highway 8 in Rajasthan State, India. As part of the agreement, GVK has a concession period of 20 years, including construction period, for operating and charging tolls. GVK will operate the Highway and have the technology for tolling.

Special Economic Zone GVK has entered into a joint collaboration with Tamil Nadu Industrial Development Corporation Limited (TIDCO), an undertaking of the Government of Tamil Nadu to develop a multi-product Special Economic Zone (SEZ) in Perambalur district. The SEZ will spread over an area of 3,000 acres and will cater to industries

2010

such as Textiles / Garments, Leather, Engineering goods, Pharmaceuticals, Power, IT / ITES, Iron & Steel, Fertilizers, Chemicals, Petrochemicals, Floriculture, Horticulture, Electronics & Communication etc. The project is being implemented through a Special Purpose Vehicle (SPV) company, GVK Infratech Pvt. Ltd., a wholly owned subsidiary of GVK Power & Infrastructure Ltd (GVKPIL).

TAJ GVK Hotels & Resorts TAJ GVK has built on its strengths and has earned a reputation for offering a chain of world-class hotels on par with international standards. TAJ GVK currently operates Taj Krishna, Taj Banjara, Taj Deccan in Hyderabad and Taj Chandigarh in Chandigarh.

The growth in the hospitality industry is pegged at about 15% growth every year and with more than one lakh rooms needed in the country, the hotel industry is poised for a substantial growth. TAJ GVK is set to reap the benefits of this growing demand. In addition to expanding their existing properties, they are also planning to set up new hotels in potential locations. As part of the series of new hotels that will come up in near future, Taj Chennai will be operational soon.

GVK BIO GVK BIO provides contract research services to a rapidly growing base of global pharmaceutical and biotechnology companies. It combines Science, Innovation and People to help clients address their drug development challenges. Customers at GVK BIO benefit not just from lower costs and boosted efficiencies, but also from the infusion of fresh ideas and thinking.

GVK Biosciences (GVK BIO) is Asia’s leading research services organization. GVK BIO provides a broad spectrum of services, stand-alone and integrated, across the R&D value chain. GVK BIO’s diverse portfolio of more than 100 customers includes Big Pharma companies, Agri & Lifesciences companies, leading biotechs and academic institutions. Spread across four locations in India, GVK 2010

BIO is headquartered at Hyderabad and employs 1500+ people to assist clients accelerate their research and success.

In line with its Vision to be a “Global Leader in Life-sciences Services”, GVK BIO has built capacities and capabilities across the R&D Value Chain. GVK BIO is one of the very few CROs to provide an integrated service platform ranging from services in Discovery Research (Medicinal Chemistry, Analytical Services, Discovery Biology, Structural Biology and Computational Chemistry) to Clinical Development (Clinical Research, Medical Writing, Pharmacovigilance, Clinical Data Management and Clinical Pharmacology) as well as Chemical Development (Process R&D, Scale-Up, and Custom

AT PRESENT BENGALURU INTERNATIONAL AIRPORT HANDLES ANNUALLY 10 MILLION PASSENGERS AND A CARGO LOAD OF 170000 METRIC TONNES. 31 AIRLINES CURRENTLY OPERATE FROM THE AIRPORT, OF WHICH 22 ARE INTERNATIONAL AIRLINES AND 9 ARE DOMESTIC CARRIERS.

Synthesis). The service offering is aimed at accelerating the Time To Market (TTM) of the customer’s products by ensuring scientific delivery that is complemented with strong interdisciplinary project management across business units.

Financials GVK Power & Infrastructure Ltd posted a rise in its profit after tax (PAT) to Rs.27.43 crore for the quarter ended March 2010, compared to Rs.9.64 crore of the same quarter from previous financial year. Net sales of the company rose to Rs.488.62 crore during the latest quarter of financial year 2009-10 from Rs.166.96 crore from the quarter of FY’09, an increase of 193 percent. On a year-on-year basis, Net Sales rose to Rs.1786.64 crore for FY2009-10 from Rs.513.78 crore from FY200809, an increase of 248%.

Taj Gvk Hotels & Resorts’ profit from ordinary activities after tax rose by 54.05 percent to Rs.12.17 crore for the fourth quarter ended March 31, over the same period corresponding from previous fiscal.

Net sales rose to Rs.63.34 crore for the fourth quarter ended March, compared to Rs.56.94 crore during the same period previous fiscal.

For the year ended March, 2010, the company posted a net profit of Rs.36.26 crore, compared to Rs.52.76 crore in the last fiscal. ❑ 97

Himalaya Drug Company

Nature’s Healing EIGHTY YEARS AGO, ON A VISIT TO BURMA, HIMALAYA’S FOUNDER, MR. M. MANAL, SAW RESTLESS ELEPHANTS BEING FED WITH A ROOT TO PACIFY THEM. THE PLANT FROM WHICH THIS WAS TAKEN IS

R AUWOLFIA SERPENTINA. FASCINATED

BY THE PLANT’S EFFECT ON ELEPHANTS, HE HAD IT SCIENTIFICALLY EVALUATED. AFTER EXTENSIVE RESEARCH, SERPINA, THE WORLD’S FIRST ANTI-HYPERTENSIVE DRUG, WAS LAUNCHED IN 1934.

T

he Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine.

This included referring to ancient Ayurveda texts, selecting indigenous herbs and subjecting the formulations to modern pharmacological, toxicological and safety tests to create new drugs and therapies. Eighty years ago, on a visit to Burma,

98

Mr. Manal saw restless elephants being fed with a root to pacify them.

The plant from which this was taken is Rauwolfia serpentina. Fascinated by the plant’s effect on elephants, he had it scientifically evaluated. After extensive research, Serpina, the world’s first anti-hypertensive drug, was launched in 1934.

The legacy of researching nature forms the foundation of Himalaya’s operations. Himalaya has pioneered the use of modern science to rediscover and validate ayurveda’s secrets. Cutting edge technology is employed to create pharmaceutical-grade ayurvedic products. Their research has converted Ayurve-

da’s herbal tradition into a complete range of proprietary formulations dedicated to healthy living and longevity. Today, these products have found acceptance with medical fraternities and serve the health and personal care needs of consumers in 67 countries. As a confirmation that Himalaya is dedicated to providing the highest quality and consistency in herbal care, the Company was awarded an ISO 9001:2000 certification in 2003.

Since its inception, the company has focused on developing safe, natural and innovative remedies that will help people lead richer, healthier lives.

Today, Himalaya products have been endorsed by 300,000 doctors around the globe and consumers worldwide rely on Himalaya for their health and personal care needs.

Brand Identity The Himalaya brand has much in common with the mountain range from which it draws its name.

For centuries, the Hima-

2010

layas have been an icon of aspiration, of man’s quest to unlock Nature’s secrets. They represent purity and lofty ideals. The fact that the Himalayas are the source of many of the herbs that are used in their products makes their brand name all the more appropriate.

The Himalaya logo is a visual definition of its brand identity. The leaf that forms the crossbar of the letter H evokes the company’s focus on herbal healthcare. The teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring. The Himalaya brand carries with it the promise of good health and well-being.

Location Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility in Makali, Bangalore, which today houses the corporate headquarters. In 1991, the company relocated its R&D facility to Bangalore.

Research & Development Himalaya has a well-defined Research and Development policy. Their policy states that no investment is too much when it comes to scientifically creating safe drugs and therapies; each Himalaya product undergoes years of primary research and clinical trials before it reaches the market.

Himalaya’s history is one of innovation through research. The company believes that the ideal healthcare system lies in the synergy between Ayurveda and modern science.

Himalaya’s constant endeavour is to create innovative products that satisfy the health and personal care requirements of contemporary living. Himalaya prides itself on being a completely research-oriented company. Indeed, it is this emphasis on R&D that allows Himalaya to produce safe, efficacious and consistent remedies using Ayurveda principles.

The R&D department is focused on product development, quality control 2010

and standardisation. All products are derived through rigorous research and produced in state-of-the art facilities.

The products represent commitment to continuous investment in the best people, practices and technology.

Himalaya does not support “Borrowed Science” or the practice of using published literature to substantiate efficacy claims.

Pharmaceutical Range The medicinal range of products carries the Himalayan hallmark, of researching Ayurveda and capturing its benefits in formulations. Using modern research methodology and manufacturing practice, Himalaya has made available to people all over the world, an alternate method of treatment, which has no known side effects.

Prominent among Himalaya brands is Liv.52, a liver formulation, which is also the flagship brand of the company. Every one-third of a second, one unit of Liv.52 is bought somewhere in the world. It is ranked number one in the hepato - protective - lipotropic segment and number four among all pharmaceutical products in India.

Liv.52 celebrated fifty years in 2005.

In 1972, continuing its tradition of introducing safe and natural remedies, Himalaya launched Bonnisan, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a baby’s growing up. After extensive work on the formulations and related clinical research, Himalaya introduced Menosan, an herbal non-hormonal product for menopausal women; Reosto, a comprehensive therapy for osteoporosis; and Himplasia, a unique product for benign prostatic hyperplasia, a new dimension in BPH management.

Personal Care Himalaya has used its wealth of knowledge and research, in natural herbal remedies, to formulate a range of personal care products that cater

SINCE ITS INCEPTION, THE COMPANY HAS FOCUSED ON DEVELOPING SAFE, NATURAL AND INNOVATIVE REMEDIES THAT WILL HELP PEOPLE LEAD RICHER, HEALTHIER LIVES.

TODAY, HIMALAYA PRODUCTS HAVE BEEN ENDORSED BY

300,000 DOCTORS

AROUND THE GLOBE AND CONSUMERS WORLDWIDE RELY ON

HIMALAYA.

to daily health needs. This range offers the goodness of natural solutions for daily use by the complete family.

The use of natural ingredients in personal care products has been practiced since time immemorial, leading to increased use of herbs with a curative value. Modern research proves that herbs while being effective are also mild and soothing.

Launched in 1999, Himalaya Herbals is a range of natural herbal personal care products spanning Health Care, Oral Care, Hair Care, Skin Care and Baby Care. The range comprises of fairness cream, soap-free face washes, facial cleansers, face toners, moisturisers, soap-free shampoos, conditioners, hair-loss control, weight control, pimple control, foot care, multi-purpose creams, skin nutrients, dandruff control, anti-stress, digestive health, pain relievers, cough & cold relievers, oral care and baby care products.

Pure Herbs, Chyavanaprasha and Forest Honey Pure Herbs, the pure and concentrated strength of a single herb in the right measure, stimulate & improve body functions. Himalaya Pure Herbs is a range of individual herb extracts.

Each Pure Herb is the result of strict monitoring from the farm to the lab.

At the lab, Himalaya’s proprietary techniques are used to extract the optimum value of each herb. This is 99

followed by rigorous tests by R&D team for potency and consistency.

The actions of these extracts benefit the body, irrespective of the individual’s body constitution, state of health and metabolic functions. Everyone can benefit from the goodness of these herbs, irrespective of age, sex, body type or other health related factors.

Himalaya Chyavanaprasha is a unique combination of ancient wisdom and modern science. Its natural ingredients are tested to ensure the highest levels of purity. Pure unadulterated Himalaya Forest Honey is sourced from India’s untouched forests.

Animal Health The Himalaya legacy extends to animal health also. The Company offers well-researched, safe, animal health products, harnessed from nature’s wealth to alleviate the suffering of animals, to improve their health and to increase

100

their productivity.

GMP certification in the country.

World-wide there is a growing concern about the presence of chemical contaminants in dairy, meat and poultry products. Taking a cue, The Himalaya Drug Company has extended its expertise to create Ayurvedic drugs and therapies for animal health care.

They are the only phyto-pharmaceutical company whose ayurvedic product, Liv.52, a hepato-protective formula, is registered as a ‘pharmaceutical specialty’ in Switzerland.

Their R&D wing has been recognized as a Research Centre by the Rajiv Gandhi University of Health Sciences, Karnataka, India.

Concern for animal welfare prompted Himalaya to launch the Animal Health Range of products for commercial livestock in July 1998. The products in this range alleviate the suffering of animals and improve their health. This results in healthy livestock whose animal products are safe for human consumption. Realising the importance of companion animals in today’s life, Himalaya launched the Companion Animal Care Range of products in 2000.

Quality Assurance At Himalaya, Quality covers two areas - Quality Assurance and Quality Control. Pharmaceutical products are designed and developed with the following requirements GMP (Good Manufacturing Practices) GLP (Good Laboratory Practice)

Recognition

GCP (Good Clinical Practice)

In March Drug granted turing

Himalaya produces quality polyherbal formulations. To monitor quality, many endangered herbs are grown by the Company on its farmland. The principles of Good Manufacturing Practices (GMP) are rigorously followed in the plant and the Company prides itself on being environment friendly. As part of the environment control system, it had installed a modern effluent treatment plant long before regulations mandated it.

High stress on quality, several quality circles and special project teams working on Total Quality Management (TQM) projects, make Quality a way of life in Himalaya. The manufacturing plant uses automatic, high-speed punching, coating and filling machines.

The tablet coating facility is one of the largest in India. The plant can produce nearly 5 billion tablets and 60 million bottles of liquids annually. This enables Himalaya to produce phytopharmaceuticals with uniform levels of batch-to-batch consistency. This ensures that the customer gets the same high quality product regardless of where it is purchased. ❑

2001, Himalaya Company was a “Good ManufacPractices (GMP)” Certificate, issued by the Licensing Authority, Directorate of Indian Systems of Medicine, Bangalore. Himalaya is the first Ayurvedic facility to get

2010

2010

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Infosys

In Tech

INFOSYS TECHNOLOGIES LTD DELIVERS IT-ENABLED BUSINESS SOLUTIONS TO ENABLE GLOBAL 2000 COMPANIES WIN IN A FLAT WORLD. THEIR SOLUTIONS FOCUS ON PROVIDING STRATEGIC

DIFFERENTIATION AND OPERATIONAL SUPERIORITY TO CLIENTS, LEVERAGING THEIR DOMAIN AND BUSINESS EXPERTISE ALONG WITH A COMPLETE RANGE OF SERVICES.

I

nfosys Technologies Ltd. was started in 1981 by seven people with US$ 250. Today, they are a global leader in the ‘next generation’ of Information Technology and consulting with revenues of over US$ 4.8 billion (FY10). Infosys defines, designs, and delivers technology-enabled business solutions that help

Global 2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging their domain and business expertise and strategic alliances with leading technology providers.

Infosys’ offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing. Infosys pioneered the Global Delivery Model

(GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys has a global footprint with over 50 offices and development centres in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its subsidiaries have 113,796 employees as on March 31, 2010. The Company takes pride in building strategic long-term client relationships, with over 97% of their revenues coming from existing customers. With Infosys, clients are assured of a transparent business partner, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model.

Quality Focus ‘In God they trust, everyone else must come with data’ is an oft-heard phrase at Infosys. They constantly benchmark their services and processes against globally recognized quality standards. Their certifications include SEI-CMMI Level 5, CMM Level 5, PCMM Level 5, TL 9000 and ISO 9001-2000. In February 2007, Infosys BPO was certified for eSCM level 4.0, the eSourcing Capability Model for Service Providers developed by a consortium led by Carnegie Mellon University’s Information Technology Services Qualification Centre.

Innovation, Speed and Excellence in Execution Infosys was one of the first companies to develop and deploy a global delivery model and attain SEI-CMMI Level 5 certification for their offshore and onsite operations. They manage growth by investing in infrastructure and by rapidly recruiting, training and deploying new professionals. Infosys has 44 global development centres, the majority of which are located in India. They also have development centres in Australia, Canada, China, Japan, Mauritius, and at multiple locations in the United States and Europe.

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2010

Industry Leadership Infosys was the first Indian company to list on a US stock exchange and the first Indian company to do a POWL in Japan. In December 2006, they became the first Indian company to be added to the NASDAQ100 index and became the only Indian company to be part of any of the major global indices. They were recently listed on The Global Dow. Infosys was also ranked No. 14 among the most respected companies in the world by Reputation Institute’s Global Pulse 2008. They were also listed on Forbes’ Asian Fabulous 50 for the fourth consecutive year. Infosys is also a five-time Global MAKE Winner and one of only two Indian companies amongst global leaders to have won the award in 2008.

Targeted Research Infosys SETLabs undertake targeted R&D to address business problems.

Their researchers are engaged in cutting-edge research to share insights with clients and focus on research areas such as Malleable Architecture, Pervasive Access, Flexible Processes and Personalized Information. These areas constitute the fundamental business technology components of a progressive, information-centred enterprise.

Campus Connect Launched by Infosys in May 2004, Campus Connect is a unique academia-industry initiative to ‘architect the education experience’. Their goal is to build a sustainable partnership with engineering education institutions in India and abroad for mutual benefit - producing ‘industry ready’ recruits. Infosys’ objective in launching the CC programme is to enhance the quality and quantity of the IT talent-pool; sustain the growth of the IT industry itself. They don’t want to increase the number of engineering colleges, or the number of graduates.

They intend to increase the employability of students and want to have a consistent output, irrespective of all variables involved. It doesn’t matter where the college is located (big city 2010

or remote town), the kind of faculty, or students. However the conditions may be, with the help of their partners, Infosys wants to achieve a highquality, constant product.

Currently Infosys has more than 300 engineering colleges under their wing, and the numbers are growing steadily. They align the college curriculum with the industry’s requirements, and work with educational bodies towards implementing it. They organize seminars and training sessions for the faculty to give them an industry perspective, enabling them to train the students accordingly. They design industry-oriented topics, and provide the courseware to students; they give them projects to do, and also provide sabbaticals for the faculty. The Infosys courseware is published on their portal, to be viewed by member colleges.

Awards Infosys has consistently been honoured by customers, industry bodies, media and other influencers. The following are among the recognitions they received over the past year: Infosys was ranked among the top 50 most respected companies in the world by Reputation Institute’s Global Reputation Pulse 2009. They have been voted the ‘Most Admired Indian Company’ in The Wall Street Journal Asia 200 for 10 years in a row since 2000. They won Sears Holding Corporation’s Partners in Progress award for the second consecutive year. They also won HDS’ Diamond Award for ‘Best Virtualization Strategy’ and Platinum Award for ‘Best Green Strategy for a Data Centre’.

Infosys was also listed in the Most Admired Knowledge Enterprises (MAKE) 2008 study and Forbes’ Asian Fabulous 50 for the fourth consecutive year. They were ranked among the ‘Best Companies for Leaders’ in a survey by Bloomberg BusinessWeek and Hay Group in 2009, ‘India’s Best Companies to Work For – 2009’ in a survey by the Great Place to Work Institute and conferred with the NASSCOM gender inclusion award.

Asset magazine acclaimed their Corporate Governance, acknowledging their corporate policies and practices as among the best in the industry.

Sustainability At Infosys, they believe that they must develop trust with the communities in which they operate to achieve longevity as a corporation. Through the Infosys Foundation, which receives a grant every year from Infosys (the last year’s grant was US$ 3 million) they contribute to betterment of healthcare, education and skills.

Infosys emphasizes its commitment to investors through stringent corporate governance. Infosys was also among the first Indian companies to voluntarily comply with the US Generally Accepted Accounting Principles (GAAP) and now provides financial results in the GAAP of six countries.

Financials Infosys’ Net Income for the year ended 31st March 2010 was Rs.21140 crore with Net Profit of Rs.5803 crore; Net Income and Net Profit for the previous year were at Rs.20264 crore and Rs.5819 crore.

Q4 Revenues for 31st March 2010 were Rs.5500 crore with Net Profit of Rs.1430 crore.

Infosys Foundation Since its inception in 1996, the Infosys Foundation has worked to support the underprivileged in society and enrich their lives. Promoted by Infosys Technologies Limited, the Foundation began its work in Karnataka, gradually extending its activities to the states of Tamil Nadu, Andhra Pradesh, Maharashtra, Orissa and Punjab. It has successfully implemented projects in four key focus areas: Healthcare; Rural development and social rehabilitation; Learning and education; and Art and culture. The Foundation has received accolades in the form of the ‘Computer World Award – 2001’ – International Level and the ‘The Economic Times Corporate Citizenship Award,’ on behalf of the Infosys Foundation, for outstanding philanthropic work – National Level. ❑ 103

MRF Tyres

Wheeling a Nation AN ENTERPRISE THAT STARTED AS A TOY BALLOON MAKER IN 1946 IN SOUTH INDIA QUICKLY GREW TO BECOME ONE OF INDIA’S BIGGEST AND RESPECTED COMPANIES. RENOWNED FOR PRODUCT SUPERIORITY AND INNOVATION, MRF CONTINUES TO BE THE LEADING TYRE-MAKER IN INDIA.

M

RF is the

leading manufacturer of tyres in almost all segments.

Being driven by technology and product innovation, every tyre that comes out is of the highest standards and tested to weather the toughest conditions on any road. MRF has diverse business interests which also include Pretreads, Paint and Coats and Toys.

A leader in the tyres category, MRF holds the No.1 position in India for the last 21 years. Established as a toy-balloon manufacturing company in 1946 by KM Mammen Mappillai, MRF quickly emerged as the leading maker of tread rubber. Since then, the company hasn’t looked back. The fact that it is the first tyre company in India to reach a turnover of Rs.5000 Crores is testament to its dominance of the industry. MRF is also the first

104

company to export tyres to the US; its global presence is now spread across 65 countries around the world.

Backed by a superior R&D, MRF tyres are rolled out of six interdependent facilities, which are built over 450 acres and employ over 15,000 dedicated people. MRF has over 3000 strong dealer network with 180 offices.

What this means is that the company boasts of the largest range of tyres in India - from heavy duty truck tyres to two wheeler tyres.

The company’s penchant for quality has earned it the distinguished Q1 certification from Ford - an achievement that qualifies MRF to supply tyres to any of the Ford plants worldwide. This has also translated in the company winning the prestigious JD Power award five times.

The company’s love for sports, especially Cricket, is well known. The MRF Pace Foundation is synonymous with training and teaching the world’s best fast bowlers. MRF’s involvement in motor sports in India is no less fervent. Its rallying team has won the prestigious FIA Asia Pacific Rally Championships twice. Even in inter2010

national championships MRF karting tyres, homologated by FIA, is the preferred choice.

The MRF Design Process The Design process at MRF starts from the customer; inputs from individual customers are compiled by marketing and given to Corporate Technical MRF’s R&D and Product Development Division or vehicle specific requirements are received from the OE customer.

MRF HOLDS THE NO.1 POSITION IN INDIA FOR THE LAST 21 YEARS. ESTABLISHED AS A TOY-BALLOON MANUFACTURING COMPANY

1946 BY KM MAMMEN MAPPILLAI, MRF IN

QUICKLY EMERGED AS THE

MRF’s team of 300 engineers and scientists gives MRF its enormous strength in product design. Requirements received, a team then works on converting the customer input into a Design Concept. MRF uses cutting - edge technologies in predictive testing and design validation before it leaves the drawing board. These advances have significantly brought down the time to market for new designs.

Advanced raw materials are tested and approved in their NABL accredited laboratories. MRF works closely with global suppliers in using the latest developments in materials across the globe. MRF laboratories which have the very latest in testing equipment closely monitor the quality of the material going into their tyres at the time of approval and regularly even after that.

LEADING MAKER OF TREAD RUBBER.

the vehicle. These tests are done at the test track in a series of manoeuvres at various speeds, pushing the tyres to the limits of their capabilities.

MRF also tests tyres on fleets across the country to ensure that the tyres have endured successfully all the types of roads on which their customers travel daily. Race Tracks and Indian Roads are like laboratories for MRF.

Only after this do they give any tyres to the customer - all global players manufacturing a global class of vehicles. MRF has been designing tyres for all classes of vehicles for more than a decade now. MRF tyres have met the demanding requirements of these vehicles, backed by an R&D team which is completely in-house and self reliant.

Financials For the quarter ended March 31st 2010, MRF’s Net Sales and other Operating Income had increased to Rs.1773.71 crores as compared to Rs.1405.82 from the same quarter in 2009. Net Profit after Tax in Q4 2010 stood at Rs.95.82 crores, compared to Rs.68.69 crores from corresponding quarter of 2009. For the financial year 2009-10, Total Income of MRF was Rs.6176.34 crores and Net Profit after Tax was Rs.253.03 crores; total income and net profit was Rs.5756.35 crores and Rs.144.56 crores respectively in 2008-09 fiscal. ❑

The prototypes for verification and validation testing are manufactured in one of MRF’s six factories all of which are TS 16949/ISO 9001 certified. The tyres then go through testing for confirming the architecture and a series of indoor testing to ensure that they meet MRF’s tight standards and also those required by the OEM or by any of the national standards like BIS/JIS/ ETRTO/T&RA. Tyres are now handed over to the Vehicle Dynamics Group, who then validates the design on 2010

105

United Breweries Group

In Spirit IT WAS THE LATE 19TH CENTURY. BEER WAS DELIVERED IN BULLOCK CARTS IN CASKS CALLED “HOGSHEADS”.

CONSUM-

ERS WERE MOSTLY DEFENCE PERSONNEL.

OVER HUNDRED YEARS HAVE PASSED. BEER FROM UNITED BREWERIES IS NOW DELIVERED ALL OVER THE WORLD, CATERING TO THE NEEDS OF CONSUMERS ACROSS GENERATIONS AND CONTINENTS.

FROM MODEST, LOCAL BEGINNINGS, THE UB GROUP HAS TRANSFORMED INTO A GLOBAL CONGLOMERATE.

I

t all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to 1857. United Breweries, as these breweries were named in 1915 have come a very long way. Soon afterwards, the sight of bull-

ock carts carrying huge barrels or ‘Hogsheads’ containing beer became a household sight. These carts wheeled their way to the customers, including British troops, living in and around Madras, Bangalore and the Nilgiris. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history of Beer in India, and the history of Beer Division of United Breweries.

The company was bought by late Mr. Vittal Mallya in 1947, and since then has never looked back. Today each one of the beer outlets in India sells one brand or the other from United Breweries.

The UB Group is one of India’s largest conglomerates with annual sales of over US$ 4 billion and a market capitalization of approximately US$ 12 billion. The Group has diverse interests in brewing, distilling, real estate, engineering, fertilizers, biotech-

nology, information technology and aviation. It is also the largest Indian manufacturer of beverage alcohol (beer and spirits). Dr. Vijay Mallya is the Chairman of the Group.

Also included in the Group were activities such as pharmaceuticals, agrochemicals, paints, petrochemicals and plastics, the manufacture of electro-mechanical batteries, the manufacture of food products and carbonated beverages, a fast-food pizza chain and several medium and small scale industrial units.

In 2007, United Spirits Limited, the flagship of The UB Group, acquired a hundred percent of premium scotch distillers Whyte & Mackay and Liquidity Inc, a United States-based maker of specialty vodkas. The Delawarebased Liquidity Inc produces speciality brands like Pinky Vodka and Marakesh.

The UB Group’s Brewing Division has also assumed undisputed market leadership with a national market share in excess of 48 percent.

Through a process of aggressive acquisition and market penetration, The UB Group today controls 60 percent of the total manufacturing capacity for beer in India.

The flagship brand, Kingfisher, is now sold in over 50 countries worldwide having received many accolades for its quality.

Kingfisher, one of the flagship brands of The UB Group, has partnered with NDTV, India’s leading broadcast group in a first-of-its-kind media alliance for the promotion of TV channel NDTV Good Times.

History The Castle Brewery which dates back to 1857 (the year of the Indian mutiny) was set up for the European planters scattered over the Nilgiris. So was the Nilgiris Brewery Company. The British 106

2010

Brewing Corporation set up in Madras (1902) catered to the elite of the port town of Madras while the Bangalore Brewery Company had been supplying beer for the troops stationed at Pune and Bangalore since 1885.

United Breweries Limited (UBL) was founded on March 15, 1915, in Madras by Thomas Leishman, a Scotsman, also its first Managing Director.

UBL manufactured and sold only bulk beer for troops of both the world wars. It was a classic case of role reversal – India being introduced to this ‘exotic’ brew and in turn becoming its major exporter.

The Company’s brewing tradition has a legacy of nearly 130 eventful years. Along its journey through the global Alcoholic Beverages landscape, UBL has consistently influenced business paradigms, beer-drinking habits and conventional mindsets. One man played a pivotal role in the Group’s growth – Vittal Mallya who was elected to the Board of Directors of UBL in 1947 at the age of 22 and a year later became its Chairman.

Bangalore has been at the core of UBL’s existence. The Registered Office of UBL was shifted to Bangalore in June 1952, into the spacious 22-acre factory of the Bangalore Brewery Company. The Bangalore Brewery buildings, dating as far back as 1885, have since given way to newer construction. The only relic that still stands is the present godown adjacent to the UB Towers building, which earlier housed the bottling cellars, pasteurizing and packing departments. The five acres of land across the road donated to the Jesuit Society now forms the campus of St Joseph’s Indian High School.

In 1951, United Breweries Limited added liquor to its product cabinet when McDowells became its first subsidiary. Under the dynamic guidance of Vittal Mallya, the Company became the first to manufacture Indian substitutes of foreign liquor.

This gave rise to a new term – IMFL (Indian Made Foreign Liquor). McDowell has since then been the undis2010

puted market leader and one of the largest and fastest moving consumer goods companies in the country. Vittal Mallya was not a man to rest on his laurels. He continued to pursue opportunities in the Alcoholic Beverages business and at the same time diversified into Polymers and Batteries in addition to Pharmaceuticals and Foods that the Company had been making till then.

McDowell - Spanning Centuries of Change The name McDowell evokes the celebrated Scottish tradition of distilling quality spirits. In the late nineteenth century, Angus McDowell set out from the scenic Northern lands of Gaelic Britannica to realise his dream.

He wanted the best products (including wines and spirits) of his homeland to reach thousands of expatriate Britons in various corners of the Empire. It was thus that the McDowell Company came into being.

It had its origins in a warehouse near Fort St. George in Chennai, which in those days was a major trading centre of the British Empire. In 1898, McDowell was incorporated as a Company with Messrs A.M. Hooper, G.D. Coleman and G.A. Ruppell as its principal shareholders. Its initial capital, comprising 4,000 Preference Shares of Rs.100 each and 4,000 Ordinary Shares of Rs.100 each, was Rs.8,00,000.

vours, ranging from the Mondial to International Wine and Spirit Competition (IWSC) to International Taste and Quality Institute (ITQI); a total of 108 awards and certificates (as of June 2009). The company is known to be an innovator in the industry and has several firsts to its credit such as the first pre-mixed gin, the first Tetrapack in the spirits industry in India, the first single malt manufactured in Asia and the first diet whisky in the world.

United Breweries Limited The beginning of what is today The UB Group, is rooted in the flagship company, United Breweries Limited, (UBL) also referred to as the Beer Division of the UB Group. Led by Mr. Kalyan Ganguly, President & Managing Director, it has around 48 percent market share in the country.

Kingfisher Airlines Kingfisher Airlines Limited is India’s largest airline operating more than 400 flights a day and having a wide network of destinations, with regional and long-haul international services.

Kingfisher is one of six airlines in the world to have a five-star rating from Skytrax. In May 2009, Kingfisher Airlines carried more than a million passengers, giving it the highest market share among airlines in India.

THE NAME MCDOWELL EVOKES THE CELEBRATED

United Spirits Limited

SCOTTISH TRADITION OF

United Spirits Limited (USL) - the INR 5700 crore spirits arm of the UB Group – is India’s largest and the world’s 2nd largest spirits company.

USL was earlier McDowell and Company Limited. USL has a portfolio of more than 140 brands, of which 19 are millionaire brands (selling more than a million cases a year) and enjoys a strong 59 percent market share for its first line brands in India. United Spirits recorded global sales of 90 million cases for the fiscal year that ended on March 31, 2009.

DISTILLING QUALITY SPIRITS. IN

United Spirits’ brands have won the most prestigious of awards across fla-

THE LATE NINETEENTH CENTURY,

ANGUS MCDOWELL

SET OUT FROM THE SCENIC

NORTHERN LANDS OF GAELIC BRITANNICA TO REALISE HIS DREAM. HE WANTED THE BEST PRODUCTS OF HIS HOMELAND TO REACH THOUSANDS OF EX-

BRITONS IN VARIOUS CORNERS OF THE EMPIRE. PATRIATE

107

ITS KEEN PURSUIT OF ACTIVITIES IN THE FIELD OF LIFE SCIENCES HAS LED TO THE SETTING UP OF A SUPER SPECIALTY HOSPITAL - MALLYA HOSPITAL AT BANGALORE. IN JUNE 1991, THE MALLYA HOSPITAL WAS INAUGURATED IN THE CENTRAL BUSINESS DISTRICT OF

BANGALORE IN

A MULTI-STORIED COMPLEX WITH EXCELLENT MEDICAL EQUIPMENT AND BEST MEDICAL CONSULTANTS.

Mangalore Chemicals & Fertilisers Limited Mangalore Chemicals and Fertilisers Limited (MCF), with a turnover of over Rs.2,470 Crore (FY 20082009), is the only manufacturer of chemical fertilisers in the state of Karnataka. The factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates MCF from the New Mangalore Port.

UB Engineering UB Engineering - the UB Group’s Engineering Division - is one of the foremost Indian engineering companies in the field of installation of industrial plants. UB Engineering’s activities are strongly focused on the Turnkey Division for projects in Power, Fertilisers, Oil & Gas, Fire Fighting, Effluent Treatment, Agrotech and other sectors like concept to commissioning, on-site fabrication, installation, overhauling and maintenance. The range of its operations and concept to commissioning services combined with excellent track record in industrial construction worldwide 108

has allowed UB Engineering to cut across geographical and political boundaries.

Financials United Breweries Ltd Total Income for quarter ended 31st March 2010 was Rs.381.60 crores; for corresponding quarter of 2009 Total Income was Rs.354.37 crores.

Net Profit for quarter ending 31st March 2010 was Rs.103.71 crores, while it was Rs.40.80 crores for the same quarter from 2009.

United Spirits Ltd Total Income for quarter ended 31st March 2010 was Rs.4959.89 crores; for corresponding quarter of 2009 Total Income was Rs.4319.68 crores.

Net Profit for quarter ending 31st March 2010 was Rs.400.89 crores, while it was Rs.296.65 crores for the same quarter from 2009.

Mangalore Chemicals and Fertilisers Ltd Total Income for quarter ended 31st March 2010 was Rs.2090.39 crores; for corresponding quarter of 2009 Total Income was Rs.2484.72 crores.

Net Profit for quarter ending 31st March 2010 was Rs.55.65 crores, while it was Rs.28.17 crores for the same quarter from 2009.

billion corporate conglomerate with business interests ranging from spirits, beer, engineering, fertilisers and civil aviation to pharmaceuticals.

Few, however, are aware that UB is a silent crusader in the field of community services in its own committed way. The Group has over the years emerged as a socially responsible corporate citizen.

Its keen pursuit of activities in the field of Life Sciences has led to the setting up of a super specialty hospital - Mallya Hospital at Bangalore. In June 1991, the Mallya Hospital was inaugurated in the central business district of Bangalore in a multi-storied complex with excellent medical equipment and best medical consultants. It was initially a 150 bed hospital, which has grown into a 450 bed hospital of which approximately 50 beds are for critical care. The hospital boasts of multi-specialty disciplines and is the first such hospital in India to be awarded the ISO 9002 certification. Subsidised health care is given to the under privileged class of society by providing a general ward which is reserved for them. ❑

UB Engineering Total Income for quarter ended 31st March 2010 was Rs.527.44 crores; for corresponding quarter of 2009 Total Income was Rs.454.73 crores. Net Profit for quarter ending 31st March 2010 was Rs.30.86 crores, while it was Rs.21.14 crores for the same quarter from 2009.

Corporate Social Responsibility The UB Group is known as a large US$ 2.2 2010

2010

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2010

Wipro

Transforming

Operations

WIPRO INFOTECH IS THE LEADING STRATEGIC IT PARTNER FOR COMPANIES ACROSS INDIA AND MIDDLE EAST - OFFERING INTEGRATED IT SOLUTIONS. THEY PLAN, DEPLOY, SUSTAIN AND MAINTAIN IT LIFECYCLES THROUGH THEIR TOTAL OUTSOURCING, CONSULTING SERVICES, BUSINESS SOLUTIONS AND PROFESSIONAL SERVICES. WIPRO INFOTECH HELPS DRIVE MOMENTUM IN ORGANISATIONS - NO MATTER WHAT DOMAIN THEY ARE IN.

W

ipro Infotech is a part of USD 5 billion Wipro Limited with a market capitalization of USD 24 billion. The various accreditations that they have achieved for every service they offer reflect their commitment towards quality assurance. Wipro Infotech was the first global software company to achieve Level 5 SEI-CMM, the world’s first IT company to achieve Six Sigma, as well as the world’s first company to attain Level 5 PCMM. Currently, they have 13 regional offices in India besides offices in the UAE, Bahrain, Egypt and KSA. Backed by their strong quality processes and rich experience managing global clients across various business verticals, they align IT strategies to clients’ business goals.

Along with their best of breed technology partners, Wipro Infotech also helps with hardware and IT infrastructure needs.

At Wipro Infotech they also offer consulting services as part of their advisory expertise across various domains. Their various consulting practices enable you to achieve execution excellence to help drive business momentum despite challenges arising from globalisation and the dynamics of customer loyalty. Optimising IT resources through their services, they build a strong base to empower technology operations. This includes identifying pain areas, deploying the right resources to upgrade or solve them, implementing strategic business and IT tools, as well as managing the project lifecycle. All of these are achieved through their focused quality that complies with ISO 9000, Six Sigma, SEI CMM & PCMM level 5 standards and processes.

2010

Wipro Technologies Wipro Technologies is the global IT services business division of Wipro Limited.

With over 20 offices around the world, Wipro Technologies is the No.1 provider of integrated business, technology and process solutions on a global delivery platform.

Wipro Infotech Wipro Infotech is the leading strategic IT partner for companies across India, the Middle East and Asia-Pacific - offering integrated IT solutions. They plan, deploy, sustain and maintain IT lifecycles through their total outsourcing, consulting services, business solutions and professional services. Wipro Infotech helps drive momentum in organisations – no matter what domain they are in.

With over two decades of experience Wipro Infotech has a commanding lead in leveraging critical IT services for clients in India and Middle East. Their services are further backed with strategic partnerships with some of the top global technology corporations - Oracle, Microsoft, SAP, IBM among others and the service offerings include: Consulting: Strategic Cost Reduction, Business Transformation, Security Governance, Strategy, and e-Governance Business Solutions: Enterprise Applications, Solutions for Fast Emerging Businesses, Application Development and Portals, Application Maintenance, Third Party Testing, Data Warehousing/Business Intelligence, Point Solutions

WIPRO TECHNOLOGIES IS

IT SERVICES BUSITHE GLOBAL

NESS DIVISION OF

WIPRO LIMITED. WITH OVER 20 OFFICES AROUND THE WORLD,

WIPRO TECHNOLOGIES IS THE NO.1 PROVIDER OF INTEGRATED BUSINESS, TECHNOLOGY AND PROCESS SOLUTIONS ON A GLOBAL DELIVERY PLATFORM. 111

WIPRO CARES IS AN INITIATIVE BY

WIPROITES,

ALONG WITH THEIR FAMILY MEMBERS AND FRIENDS TO CONTRIBUTE IN THE AREAS OF EDUCATION, COMMUNITY AND SOCIAL DEVELOPMENT.

BASED ON THE NEED TO PROVIDE MORE THAN JUST FINANCIAL SUPPORT,

WIPRO

CARES WAS ESTABLISHED TO UTILISE THE COLLECTIVE WISDOM OF VOLUNTEERS IN ORDER TO OFFER LONG-TERM BENEFITS TO SOCIETY.

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Professional Services: System Integration, Availability Services, Managed Services

and Truck Tippers.

Total Outsourcing

Wipro GE Medical Systems is a joint venture between Wipro and General Electric Company. As a part of GE Medical Systems South Asia, it caters to customer and patient needs with a commitment to uncompromising quality. Wipro GE is India’s largest exporter of medical systems, with unmatched distribution and service reach in South Asia. Wipro GE pioneered the manufacture of Ultrasound and Computed Tomography systems in India and is a supplier for all GE Medical Systems products and services in South Asia.

With dedicated industry experts, Wipro Infotech has the capability to function as a complete strategic IT partner with premium total outsourcing services. Their service offerings range from consulting services, business solutions to professional services.

Their products range (both hardware and software) too are geared to achieve domain-specific functionality, guaranteeing a smooth drive towards business targets.

Wipro Consumer Care and Lighting Wipro Consumer Care and Lighting, a business unit of Wipro Limited, has a profitable presence in the branded retail market of toilet soaps, hair care soaps, baby care products and lighting products. It is also a leader in institutional lighting in specified segments like software, pharma and retail.

Wipro Infrastructure Engineering Wipro Infrastructure Engineering was Wipro Limited’s first diversification in 1975, which addressed the hydraulic equipment requirements of mobile original equipment manufacturers in India. Over the past 25 years, the Wipro Infrastructure Engineering business unit has become a leader in the Hydraulic Cylinders and Truck Tipping Systems markets in India, and intends growing its business to serve the global manufacturing requirements of Hydraulic Cylinders

Wipro GE Medical Systems

Financials IT Services business reported revenues of Rs.52.60 billion for the quarter ended March 31, 2010, a growth of 7% YoY. EBIT for this segment was Rs.12.72 billion for the quarter ended March 31, 2010, a growth of 20% YoY. Operating income to revenue for the quarter was 24.2%. IT Services business added 27 new clients during the quarter. Infosys had 108,071 employees as of March 31, 2010, an increase of 5,325 employees for the quarter. IT Services business revenues was Rs 202.49 billion for the year ended March 31, 2010, a YoY growth of 6%. PBIT for the year was Rs 47.41 billion for the year ended March 31, 2010, a YoY growth of 18%.

Wipro has signed a multi-year, strategic partnership with consumer electronics re-

2010

tailer Best Buy Co., Inc. As part of the deal Wipro will provide a comprehensive range of technology and business services to the retailer across the globe.

Awards Partner of the Year Award for Systems Integration, Applications and Middleware from Oracle APAC Emerging Markets SI Partner Award from Teradata Outstanding Partner of the year Award from Radware Leadership Award in the Solution Partners Category by RSA, India Indus Towers Customer Award for Excellence in Delivery Bharat Gaurav Award, 2010 for Nagarajan A, VP, Business Operations, Wipro Arabia for excellence in keeping Indian Flag high in other countries NCPEDP Shell Helen Keller Award for equal opportunity efforts for people with disabilities Global, Asian and Indian MAKE Award 2009 for creating an environment for collaborative knowledge management India’s No.1 Network Integrator for the 6th consecutive year; Wipro reclaimed the No.1 Network Management Services Provider for the year Platinum Partner Award from Hitachi Data Systems for 2008-2009 Gold Certified Partner of HP, Middle East for 2008-2009 Enterprise Partner of the Year Award, 2008-2009 by Websense Declared Top Growth partner by Fortinet for 2008-2009 Wipro’s innovative application services model, CIGMA (Centre for Integrated Global Management of Applications) won the NASSCOM IT Innovation Award in the Process Innovation category for the year.

Wipro Awarded Two 2010 SAP Pinnacle Award; Recognized for Delivering Operational Transformation to its Clients; 2010

Wins Pinnacle Awards in “IT Outsourcing Partner of the Year” and “Run SAP Partner of the Year” Categories

Wipro Cares Wipro Cares is an initiative by Wiproites, along with their family members and friends to contribute in the areas of education, community and social development.

Based on the need to provide more than just financial support, Wipro Cares was established to utilise the collective wisdom of volunteers in order to offer long-term benefits to society.

Wipro Cares also collects and directs the contributions of Wiproites (and matched

by Wipro), in association with its volunteer work, to help make a greater impact where it is most needed.

Wipro Cares contributes through a twopronged strategy: providing rehabilitation to survivors of natural calamities and enhancing learning abilities of children from the under privileged sections of society.

Disaster rehabilitation After mobilising funds, Wipro Cares sets up a team to evaluate the damage during calamities. Their rehabilitation work begins after detailed discussions with the survivors and analysing their needs.

WIPRO HAS SIGNED A MULTIYEAR, STRATEGIC PARTNERSHIP WITH CONSUMER ELECTRONICS RETAILER

BEST BUY CO., INC. AS PART OF THE DEAL WIPRO WILL PROVIDE A COMPREHENSIVE RANGE OF TECH-

Learning Enhancement

NOLOGY AND

Wipro Cares has initiated Learning Enhancement Programmes at schools catering to the children from the under privileged sections of society.

BUSINESS SERVICES

The main objectives of this programme are to improve the standards of learning, build confidence, ignite curiosity, broaden their awareness levels, improve their communication skills in English and help them break through self imposed limits to achieve their greatest potential.

TO THE RETAILER ACROSS THE GLOBE.

In line with its focus, these programmes have been successfully implemented in Olcott Memorial School in Besant Nagar, Chennai and Government Secondary School in Vivek Nagar, Bangalore. Wipro Cares also inaugurated a Learning Centre for children from under privileged sections of Bangalore, in association with Makkala Jagriti. ❑

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