India Business Insight articles from March 2002

India Business Insight archives from March 2002

BEST WESTERN ENTERS GOA (acquires Resorte Marinha Dourada at Baga beach, renames it Best Western Resorte Marinha Dourada).
March 31, 2002... The Resorte Marinha Dourada at Baga beach in Goa has joined the Best Western international chain and is now known as Best Western Resorte Marinha Dourada. It is largest resort property in North Goa with 185 rooms, multi-cuisine...

ROYAL RETREAT-THE LEELA PALACE BANGALORE (Leela Palace Bangalore has been adjudged as one of the Best New Business Hotels of 2001).
March 31, 2002... The 254-room Leela Palace Bangalore is the newest hotel in Bangalore. Leela Palace Bangalore is on the Airport Road and is close to the business district of Bangalore and to the International Technology Park at Whitefield. The seven...

FOREIGN DIRECT INVESTMENT-INFLOWS (India has witnessed total FDI inflows of Rs77,103 crore from 1991 to 2001).
March 31, 2002... India has witnessed total foreign direct investment (FDI) inflows of Rs8,727 crore (provisional) during 2000-2001 as against Rs6,904 crore in 1999-2000. Mauritius accounted for the highest inflows at Rs3,853 crore in 2000-2001 as...

NDTV: END OF NEWS (positioning itself as an independent television software house).
March 31, 2002... New Delhi Television (NDTV) is on the lookout for takers for its news programming after the fate of its relationship with Star news, which comes up for review in 2003, becomes clearer. The company has also identified new genres of...

MAX INDIA (Max Ateev earned revenues of Rs96 crore on investments of Rs30 crore).
March 31, 2002... Max Ateev, the IT services arm of Max India, is foraying into the areas of enterprise software solutions and offshore product development. Ateev intends to take a route that is a little different from that adopted by Indian software...

ELECTROLUX: SEEKING CURE FOR FROST-FREE BITES (it is setting up a facility at Varora to produce frost-free refrigerators).
March 31, 2002... Electrolux Kelvinator, which is wholly owned by Electrolux AB of Sweden, has decided to reduce its reliance on the direct cool refrigerator segment and concentrate more on the fast-growing frost-free segment. Data collated by ORG shows that...

THE RIGHT DOSE (Ranbaxy expect a significant increase in its share of the market for Enalapril).
March 31, 2002... Ranbaxy Laboratories and Wockhardt have entered into an alliance to leverage on each other's strengths. Ranbaxy has a strong distribution network in the US, but cannot produce enough to meet the demand for Enalapril and Ranitidine tablets....

KMFL: GOODBYE NBFC, HELLO BANK (KMFL can reduce its cost of funds to less than seven percent as a bank).
March 31, 2002... Kotak Mahindra Finance Ltd (KMFL), a non-banking finance companies (NBFC), has received approval from the Reserve Bank of India (RBI) in Feb 2002 to convert itself into a bank. The company's cost of funds will reduce substantially by...

DISINVESTMENT: PROVING ITS METTLE (Nalco is one of the lowest cost producers of aluminium in the world).
March 31, 2002... The Government of India has taken a decision to chart out a phased disinvestment programme for National Aluminium Company (Nalco), the second largest producer of aluminium and the largest producer of alumina in the country. The government,...

IBM: PATENTS TO PROFITABILITY (IBM Research Labs India applied for 40 patents in 2001).
March 31, 2002... IBM Research Labs India, a development centre established by IBM in the Indian Institute of Technology campus in Delhi, accounted for five of the 3,411 patents issued to its parent in 2001. Most of the patents credited to the Indian centre...

TATA TRANSFORMED (the group plans to invest up to Rs11,000 crore in new businesses over the next seven years).
March 31, 2002... The Tata Group has acquired a 25 percent stake in Videsh Sanchar Nigam Ltd for a consideration of Rs1,439 crore. This gives the group a significant presence in the international long distance market and a leading share in the Internet...

TATA'S TELECOM PLAN (the group intends to have over six million telecom customers by 2006).
March 31, 2002... The Tata Group has decided that it wants to be present in all aspects of the telecom business-basic, cellular, national long distance (NLD), international long distance (ILD), Internet and value-added services. The group is prepared to invest...

DOTCOMS ON DRIP (promoters of Indian portals refuse to let the dream die).
March 31, 2002... A clutch of failed dotcom companies in India are still hanging on in the hope that their day will come. Portals like purushetra.com, p4punjab.com, pitara.com, tnagar.com, cpmall.com, allindia.com, batchmates.com and buckleyourshoes.com...

RIL-RPL MERGER: THE INSIDE STORY (the merged entity will have a turnover of Rs58,000 crore).
March 31, 2002... The merger of Reliance Petroleum Ltd with Reliance Industries Ltd, which is already the largest company in India's private sector, will push the merged entity into the Fortune 500 list. The merged entity will have a turnover of Rs58,000 crore...

TECH SURVIVOR (Microland's Indya.com has been acquired by the Star Group).
March 31, 2002... The Microland group was ranked among the top 10 IT companies in India by Dataquest in 1997 with revenues for the year at Rs182 crore. Today, Microland and all its divisions and subsidiaries are estimated to earn revenues of just Rs54 crore....

THE TROUBLE WITH TEA (demand for Indian tea in the export markets has been declining).
March 31, 2002... The Indian tea industry is going through one of its most critical periods. Demand in the 673 million kg domestic market has been growing at just 2.1 percent annually. Demand for Indian tea in the export markets, currently at 180...

SUMMER OF THE VINTNER (Maharashtra is preparing to license exclusive wine bars).
March 31, 2002... Wine consumption in India has been rising at the rate of 15-20 percent per annum since economic liberalisation in 1991. Sales of wines in the country are still low at 550,000 cases, which is less than one percent of the entire alcohol trade,...

DEUTSCHE TELEKOM TO OFFER NET TELEPHONY (proposes to join hands with VocalTech to source voice- related solutions).
March 31, 2002... Deutsche Telekom (DT) is planning to launch Internet telephony services in India, as the Government has allowed net telephony in the country from 1 Apr 2002. DT had considered foraying Indian market in 1995. But plans did not come through as...

GMDC: RAKING IN MONEY. [1 TABLE, 1 FIGURE] (the company entered into mining of lignite).
March 31, 2002... Gujarat Mineral Development Corp (GMDC), which was incorporated in 1963, began mining operations of fluorspar and in 1970 set up a beneficiation plant of fluospar with the assistance of National Metallurgical Laboratory. The company...

UPGRADING TECHNOLOGY: FLUORSPAR PROJECT KADIPANI (cumulative loss till Mar 2001 was Rs580 M).
March 31, 2002... The mining and beneficiation project at Kadipani for 500 tons/day fluorspar set up by GMDC with assistance from National Metallurgical Laboratory in 1970, reported profits initially. But, since 1992, the project is reporting losses....

ALL THAT GLITTERS IS 'AGEE GOLD'. [1 TABLE, 1 FIGURE] (the refinery is the youngest in the world).
March 31, 2002... India's first gold refinery named Agee Gold Refinery (Agee Gold) was set up in Mar 2001 at a cost of Rs2.9 bn at Shirpur near Nashik in Maharashtra. The refinery is located in an area where it is entitled to sales tax benefits. The...

BIOTECHNOLOGY IN GOLD EXTRACTION: THE HUTTI EXPERIENCE (the company proposes to expand its mining activities to increase gold production).
March 31, 2002... Hutti Gold Mines Co Ltd (Hutti) in Karnataka has adopted the use of micro-organisms in gold processing. The company proposes to expand its mining activities to increase gold production. The company plans to adopt an integrated...

IBM ROLLS OUT CHANNEL INITIATIVES FOR PC BUSINESS (125 channel partners already appointed).
March 31, 2002... IBM India's personal computer division has appointed 125 channel partners in Jan-Feb 2002 and will appoint another 125 by the end of Mar 2002 in 18 cities. IBM will appoint about 40 authorised service providers to support its resellers...

NAVISION TO APPOINT 30 SOLUTION CENTRES IN INDIA (it is from Denmark).
March 31, 2002... Navision of Denmark is appointing 30 solution centres (channel partners) in India for its e-CRM solutions. Some of the partners are Kashyap Radiant, Deltatec, Indus Object, Sharptech and Cerebra Integrated Technology. Navision will...

RED HAT APPOINTS TECHNOLOGY PARTNERS (for the rapid adoption of Linux).
March 31, 2002... Red Hat India has appointed Neptune Information Solutions, Winfoware Technologies and Dynacon Systems and Solutions to provide unparalleled support services in a large number of Indian cities. The new partners will help Red Hat to lead to...

CORAL'S IRIS INTEGRATES VOICE AND IP SWITCHING (it is truly cost-effective).
March 31, 2002... Coral Telecom developed Iris, a solution for seamless flow of voice and data through the existing telephone cable network, in its Delhi research facility. It was developed on GLite platform. It can route voice over Internet protocol...

ADVANTAGE TO EXPAND REACH TO NORTH-EAST (networking products under Adcom brand).
March 31, 2002... Advantage Computers of Delhi already has presence in Chennai, Hyderabad and Bangalore for its networking products under Adcom brand. It has a presence now in eight places in all. It is expanding Adcom brand networking products in the...

FROM TYPEWRITERS TO NETWORKING (but it was not a smooth transition).
March 31, 2002... Advantage Computers was earlier selling typewriters. It decided to step into hardware business in 1996, but faced some transitional problems, as it had to depend on one particular supplier. Then it persuaded Taiwanese suppliers to supply...

"WE WANT TO CREATE A STRONG PRESENCE IN THE MNC OEM SEGMENT" (Samtel now is an Indian multi-national company).
March 31, 2002... Having acquired Thomson in Ulm in Germany, Samtel is now considered an Indian multi-national company. Its four pillars of business are (1) channel profitability, (2) price- competitiveness, (3) service and (4) product quality. Its...

PACKAGED SOFTWARE: WHEN WOULD INDIA CATCH UP? (India's strength is also the reason for its weakness in packaged software).
March 31, 2002... While products and packages constitute about 42 percent of Indian domestic software industry, India has no focus on packaged software and pays attention only to services. Lack of a developed domestic market for packaged software has limited...

GO, GO, FOR SERVICES (without creating over-competition).
March 31, 2002... Indian channel partners now find software a profitable field, if not a more profitable field, than depending on hardware sales. Some of them, who are doing well in software, are Vikas Microchip (100 percent growth in three years), Aladin...

ANTI-VIRUS PACKAGES: DEMAND RAMPS UP (IDC estimates a global turnover of $17 billion by 2005).
March 31, 2002... There has been no methodical study of the Indian market for security (anti-virus) software. International Data Corporation (IDC) estimates a global turnover of $17 billion by 2005, including firewalls and intrusion detection. IDC also...

THE SERVICES SPECIALIST (Arsharth is just about a year old).
March 31, 2002... KGP Pillai was working with Team Computers of Delhi for seven years. In 1997, he was transferred on promotion to Bangalore, where the electronics and communications engineer got an opportunity to meet every business challenge by solving them...

FINANCE MINISTRY MULLS MRP-BASED EXCISE DUTY ON DRUGS (an abatement of 40% in the new maximum retail price based central excise duty planned that may raise prices by 5-8%).
March 31, 2002... The Ministry of Finance, Government of India, intends to effect an abatement of 40 percent central excise duty in the new maximum retail price (MRP) of medicines. This is expected to increase the prices of medicines by 5-8 percent. It...

INDIA SEEDS BUYS 74% IN HLL SEEDS SUBSIDIARY (of Paras Extra Growth Seeds Ltd for addition of value to the products through technology, know-how and marketing).
March 31, 2002... India Seeds Holdings Ltd (ISHL) of Mauritius has bought 74 percent stake in Paras Extra Growth Seeds Ltd (PEGSL). This has been done for addition of value to the products through technology, know-how, marketing and development. PEGSL, a...

ITDC TO SELL 7 MORE JOINT VENTURE HOTELS (in Puri, Ranchi, Bhopal, Guwahati, Pondicherry, Itanagar and Anandpur Sahib).
March 31, 2002... The Ministry of Disinvestments, Government of India, is to sell 7 assets of the India Tourism Development Corporation (ITDC). These properties are at Puri, Ranchi, Bhopal, Guwahati, Pondicherry, Itanagar and Anandpur Sahib. The ITDC has...

KARNATAKA PLANS MORE SOFTWARE EXPORT CENTRES (a 2,70,000-square-foot information technology park opened in Hubli; IT parks at Mysore and Gulbarga too contemplated).
March 31, 2002... The Government of Karnataka has set up an information technology (IT) park at Hubli in the northern part of the State. It offers 2,70,000 square feet of space. Since 25-30 percent of software professionals employed in Bangalore come from...

INDUSTRIAL OUTPUT MAY MISS NINTH PLAN TARGET (as the growth rate ranges from 4.1% to 6.7% only during 1996/1997-2000/2001).
March 31, 2002... According to the annual report of the Department of Industrial Policy and Promotion, Government of India, for 2001-2002, the growth rate of industrial production is not likely to achieve the 8.2 percent target set for the Ninth Five-year Plan...

MCET-A MISSION WITH A GLOBAL VISION (the Mahalingam College of Engineering and Technology at Pollachi has ultra-modern facilities for education).
March 31, 2002... The Mahalingam College of Engineering and Technology (MCET) of Pollachi in Coimbatore District of Tamil Nadu, a self-financing educational institution, was set up in 1998. It is affiliated to the Anna University of Chennai. MCET offers...

INDIAN FOOD MARKETS: THE TOMORROW (India is one among the top five agri commodity producing nations in the world).
March 31, 2002... The demand for processed/convenience foods in India is constantly increasing and the vast opportunity in the processed food industry has prompted many corporates to enter this segment. The country is one among the top five agri commodity...

MTR FOODS LTD (it has a portfolio of over 25 instant mix products).
March 31, 2002... MTR Foods Ltd, which entered the ready mix food industry in 1976, has been successful in defining the concept of ready mix and ready-to-eat (RTE) food in India. It presently has a portfolio of over 25 instant mix products and more than 15 RTE...

GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD (Amul is now the market leader in cheese in India).
March 31, 2002... Gujarat Co-operative Milk Marketing Federation Ltd (GCMMFL) identified the opportunity for ready-to-eat (RTE) foods in the 1980s when it launched Amul Shrikhand. This was followed by Amul Ice-cream, Gulab Jamun, Paneer, Masti Dahi,...

COMMODITY BUZZ: COFFEE (small coffee growers to be given a five percent subsidy on loans).
March 31, 2002... The Coffee Board of India has sanctioned an amount of over Rs4 crore for providing small coffee growers with a five percent subsidy on the principal amount taken as working capital and crop loans for the 2001-2002 season. The scheme is...

COMMODITY BUZZ: OILSEEDS (online trading of oil and oilseeds from Apr 2002).
March 31, 2002... The Bombay Oil and Oilseeds Exchange (BOOE) has decided to shift from open outcry system to an Internet-based online system of trading from Apr 2002. The project, being implemented with an investment of Rs4.5 crore, will enable online...

COMMODITY BUZZ: RICE (the MEP for Category 1 of brown Basmati rice has been fixed at $515 per tonne).
March 31, 2002... The Government of India fixed the minimum export price (MEP) for brown basmati rice on 5 Feb 2002. The MEP for Category 1 of brown Basmati rice has been fixed at $515 per tonne while the MEP for Category 2 has been fixed at $465 per tonne....

COMMODITY BUZZ: TEA (workers agree to an 11 percent cut in wages).
March 31, 2002... The Nilgiri Plantation Workers Association, which has over two lakh members, has agreed to an 11 percent cut in wages, along with a productivity pact, with planters and plantation companies. According to the agreement, workers have agreed to...

CASH WOES HIT CASHEW (Indian cashew kernel is currently being traded at $1.70-1.80 per pound).
March 31, 2002... The cashew industry in India was adversely affected in 2000-2001 by the decline in global kernel prices, which fell to a 16-year low. Indian cashew kernel is currently being traded at $1.70-1.80 per pound, which is 50 percent less than the...

COTTON PRICES: DOWNWARD SAGA CONTINUES (average cotton prices have declined by 25-30 percent during Feb 2002).
March 31, 2002... Cotton prices in India have fallen by 10-20 percent during the past five months. Prices for the medium staple variety V797 fell by seven percent in Feb 2002, Shankar 6/4 variety by about three percent and extra long staple variety DCH-32...

POLICY CHANGES AND INDIAN EDIBLE OIL INDUSTRY (the country produces 5-6 million tonnes of edible oils).
March 31, 2002... India is the largest importer of edible oils in the world, occupying fourth place in the global edible oil economy. The country produces 5-6 million tonnes of edible oils, but also imports 4-5 million tonnes of edible oils to meet it ever...

MINOR EDIBLE OILS: AMAZING POTENTIAL UNEARTHED (India has the potential to produce 1.5 million tonnes of rice bran oil annually).
March 31, 2002... India has emerged as the largest importer of vegetable oils in the world. The country's edible oil consumption is expected to increase by at least 5-6 percent per annum over the next 5-10 years. This would translate into an additional...

EXPORT PROSPECTS FOR INDIAN AGRICULTURAL COMMODITIES: SESAME SEED (Taiwan and the US have emerged as major buyers of Indian sesame seed).
March 31, 2002... India has improved its exports of sesame seeds at an annual rate of 5.15 percent from 0.084 million tonnes in 1997-1998 to almost 0.1 million tonnes in 2000-2001. This is despite the fact that production of sesame seed in the country has...

SAKTHI SOYAS HIRES OUT OIL REFINING UNIT (the company had not been using this refinery to its maximum levels).
March 31, 2002... Sakthi Soyas, a subsidiary of Sakthi Sugars, has signed a deal with a crude edible oil importer in South India to hire out its 3000 tonnes per month oil refinery to utilise its optimal capacity. The company had not been using this refinery to...

ITC-IBD PLANS TO EXPAND BUSINESS FOR BETTER REALISATION (it has targeted 14 more states for its e-chaupal initiative within the next two years).
March 31, 2002... ITC-IBD, the International Business Division of ITC Ltd, has decided to expand its export business in a bid to improve its realisations. The division plans to expand e-chaupal projects for wheat and basmati rice from Uttar Pradesh, Haryana,...

SYNGENTA, VASANTH DADA TO PRODUCE SUGAR BEET SEED (a solution for the paucity of sugarcane crop in India).
March 31, 2002... Syngenta of Switzerland has entered into an alliance with the Vasanth Dada Sugar Institute at Pune to produce hybrid variety of sugar beet seed. This is expected to be a solution for the paucity of sugarcane crop in India since the...

DUNCANS TO SET UP CHAIN OF TEA BOUTIQUES IN INDIA (they are to be set up under the Duncans brand name and logo).
March 31, 2002... Duncans Industries Ltd of the GP Goenka Group intends to set up a chain of tea boutiques in India at select areas within the next four months. The boutiques are to be set up under the Duncans brand name and logo. The first of the boutiques is...

ABC LAUNCHES DARK FOREST (it plans to export Dark Forest to Europe and the US).
March 31, 2002... The Amalgamated Bean Coffee Trading Company Ltd, which owns the Cafe Coffee Day chain, has unveiled India's first speciality coffee, Dark Forest, through its chain of outlets in the country. The Rs250 crore Cafe Coffee Day chain, which...

TATA COFFEE LTD (it is one among the top five coffee exporters in India).
March 31, 2002... Tata Coffee Ltd, a pioneer in India's branded coffee sector, is present in all the segments of the branded coffee market. The company owns over 19,728 acres of coffee plantations with an annual output of 10,000 tonnes. It is also one...

EXPORTS N IMPORTS: EDIBLE OILS (India may import less than 2.1 lakh tonnes of palm oil in Feb 2002).
March 31, 2002... India is expected to import less than 3.1 lakh tonnes of edible oil during Feb-mar 2002 and less than 3.2 lakh tonnes in Apr 2002. It is also expected to import less than 2.1 lakh tonnes of palm oil in Feb 2002, 1.8 lakh tonnes in Mar 2002...

EXPORTS N IMPORTS: OIL MEALS (India's exports of oilmeal stood at 4,08,900 tonnes during Jan 2002).
March 31, 2002... Oilmeal exports from India are reported to have declined during Jan 2002 when compared to the increasing trend during the past three months. Data released by the Solvent Extractors' Association of India shows that exports of oilmeal stood at...

EXPORTS N IMPORTS: GRAINS (exports of about 16.50 lakh tonnes of wheat from India in 2001-2002).
March 31, 2002... India is estimated to have exported about 16.50 lakh tonnes of wheat and 14.34 lakh tonnes of rice during 2001-2002 from the stocks held in the Central pool. The major destinations for wheat and rice exports were Bangladesh, Philippines,...

EXPORTS N IMPORTS: TEA (India's tea exports stood at 15.59 million kgs in Dec 2001).
March 31, 2002... The Tea Board says that tea exports from India declined by 13 percent to 179.79 million kgs during 2001 from 206.82 million kgs in 2000. This is much below the initial estimate of the Indian Tea Association at 210 million kgs and its revised...

BSNL MAKES CALLING OVERSEAS CHEAPER (new rates will enable customers to speak for longer duration at the same cost).
March 31, 2002... Bharat Sanchar Nigam Ltd (BSNL) has increased the pulse rates for domestic and international long distance telephony with effect from 1 Apr 2002. This will enable customers to speak for longer duration at the same cost. In the ISD...

GTB SACKS 7 HONCHOS, INCREASES PROVISIONING IN CLEAN-UP DRIVE (gross violation of prudential norms related to lending to sensitive sectors).
March 31, 2002... Global Trust Bank has terminated the services of seven senior officials, including executive director MR Sridhar Subasri, a close aide of the bank's former chief Mr Ramesh Gelli. The other sacked officials include the bank's president Mr KA...

HLL SELLS SEEDS BIZ TO PARAS EXTRA GROWTH SEEDS (the transfer is expected to bring in a profit before tax of Rs72 crore).
March 31, 2002... Hindustan Lever Ltd (HLL) has sold its seeds business as a going concern to Paras Extra Growth Seeds Ltd (PEGSL) for a consideration of Rs115 crore with effect from 30 Mar 2002. The company's seeds business had a turnover of Rs100 crore. The...

FOREX RESERVES UP BY A RECORD $1.13 BILLION (entire growth in reserves was on account of foreign currency assets).
March 31, 2002... India's foreign exchange reserves increased by $1.13 billion to $53.32 billion during the week ended 22 Mar 2002, which is the highest accretion in a week in recent times. The Reserve Bank of India says that entire growth in forex reserves...

IT COS WAKE UP TO POTENTIAL OF CONSULTING SERVICES (I-Flex Solutions has established a technology deployment and management services unit).
March 31, 2002... Indian technology companies are increasingly focussing on offering technology and strategy consulting services to clients, in addition to providing services and products. Cognizant Technology Solutions says that its technology...

INSURANCE FIRMS MAY HAVE TO FLOAT ARMS FOR PENSION PRODUCTS (the fund manager of a pension fund has to abide by various norms on solvency).
March 31, 2002... The Insurance Regulatory and Development Authority has recommended that insurance companies may have to float subsidiary companies and obtain clearance to sell pension products in India. It says that the fund manager of a pension fund has to...

MURUGAPPA GROUP SHUFFLES DIRECTORS IN COMPANY BOARDS (MV Subbiah has replaced MA Alagappan as chairman of Parry Agro Industries).
March 31, 2002... The Murugappa group of Chennai has shuffled the directorship of family members on the statutory boards of group companies. It has also shuffled the functional roles of a few of them as mentor directors. The group has decided to adopt a...

SURANA TO OFFER VoIP SERVICES ON APRIL 1 (Surana's netFONE does not require a personal computer or logging on to any website).
March 31, 2002... Surana Telecom is slated to become one of the first Internet service providers in India to launch voice over Internet protocol products. The netFONE division of Surana Telecom will formally launch its customer premises equipment on 1 Apr...

PRIVATE LIFE INSURANCE COS BRINGING IN FRESH CAPITAL (expenses are turning out to be higher than envisaged).
March 31, 2002... Several private insurance companies are bringing in additional capital to boost their balance sheets before the end of 2001- 2002. Tata AIG Life Insurance Company has received additional equity capital of Rs60 crore from its two promoters....

ONGC, GAIL TO SUPPLY GAS TO IPCL AT GLOBAL PRICES (domestic gas prices are currently linked to 75 percent of a basket of international fuel oil prices).
March 31, 2002... Oil and Natural Gas Corporation (ONGC) and Gas Authority of India Ltd (GAIL) have decided to supply gas to Indian Petrochemicals Corporation Ltd (IPCL) based on a pricing formula linked to international gas prices. ONGC's gas supply...

GESCO LOOKS NORTH FOR COMMERCIAL, RESIDENTIAL PROJECTS (to bid for lands that are released for real estate development in Delhi).
March 31, 2002... Gesco, one of the largest listed real estate companies in India, is looking at Delhi, Greater Noida, Gurgaon and Mohali in North India as potential locations for both commercial and residential projects. The company has been a strong player...

CUSTOMS MOVES TO SPRUCE UP FACILITIES AT NHAVA SHEVA (Nhava Sheva processes nearly 1,500 shipping bills for exports daily).
March 31, 2002... The Customs Department, Government of India, has decided to upgrade its facilities at Jawaharlal Nehru Port, the largest and busiest container port in the country. It plans to spruce up computer infrastructure and deploy more manpower at...

GOVERNMENT CUTS SDS TO 9%; PF RATE REDUCTION ON ANVIL (the Government has also reduced the interest rate on General Provident Fund by 50 basis points to 9%).
March 31, 2002... The Government of India has reduced the interest rate on the Special Deposit Scheme (SDS) by 50 basis points to 9 percent, with effect from 1 Apr 2002. The Central Board of Trustees of the Employees Provident Fund (EPF) may also have to bring...

BSNL CUTS ISD RATES (by 14-17% with effect from 1 Apr 2002, increasing the pulse rate of all 3 different country slabs).
March 31, 2002... Bharat Sanchar Nigam Ltd (BSNL) has reduced the international subscriber dialling (ISD) telephony call charges by 14-17 percent with effect from 1 Apr 2002. The ISD rate for SAARC and neighbouring countries has come down from Rs25.70 per...

MURUGAPPA GROUP PLANS NEW COMPANY FOR IT SERVICES (considering 3 specific areas to start the enterprise).
March 31, 2002... The Murugappa group of Chennai intends to start a new company in the information technology (IT) sector. The group is considering the sectors of legal support services, insurance-related services and engineering-related services for the new...

IAF GETS NEW HAL HELICOPTER (the Defence Ministry surrenders Rs5,000 crore unspent during 2001-2002).
March 31, 2002... Hindustan Aeronautics Ltd (HAL) has handed over the Advanced Light Helicopter (ALH) to the Indian Air Force (IAF) on 30 Mar 2002. The Ministry of Defence (MoD) of the Government of India is surrendering to the Government Rs5,000 crore that...

TRADITIONAL EXPORT ITEMS UNDER-PERFORM (overall exports from India declined by 1.7% to $28,239.06 million during Apr-Nov 2001).
March 31, 2002... Traditional export items from India, like textiles, chemicals, engineering items and gems and jewellery, continued to slide during Apr-Nov 2001. The plantations sector registered a growth of 7.52 percent at $430.86 million during the period,...

DABUR SETS UP MOLECULAR DIAGNOSTIC LABORATORY (at the Rajiv Gandhi Cancer Institute).
March 31, 2002... Dabur India Ltd recently set up a molecular diagnostic laboratory in India at the Rajiv Gandhi Cancer Institute. The institute intends to use new diagnostic methods to customise treatment. The company has developed a number of latest...

APRIL-DECEMBER BALANCE OF PAYMENTS SURPLUS $5.569 BILLION (during Apr-Dec 2001 as against $2.735 billion during Apr-Dec 2000).
March 31, 2002... The balance of payments (BoP) surplus of India was $5.569 billion during Apr-Dec 2001 compared to $2.735 billion during Apr-Dec 2000. The trade deficit of the country declined from $12.045 billion to $9.482 billion during the period. The...

INDIAN BANK SEES OPERATING PROFIT TOUCHING Rs120 CRORE (in 2001-2002; made an operating profit of Rs61.59 crore in 2000-2001).
March 31, 2002... Indian Bank expects to make an operating profit of more than Rs120 crore during 2001-2002. It had posted an operating profit of Rs61.59 crore in 2000-2001. The Government of India has promised Rs1,300 crore to the bank for...

TRYING TO MOVE UP VALUE CHAIN (frontline Indian software companies plan to focus on high- margin segments).
March 31, 2002... Indian software companies are likely to register a growth of 30 percent in exports in rupee terms and 26 percent in dollar terms in 2001-2002. The industry expects to record revenues of Rs37,000 crore during 2001-2002 compared to Rs28,350...

BIG FIGHT FOR THE LONG HAUL (frontline Indian software companies shift focus to maintaining and enhancing long-term competitiveness).
March 31, 2002... Frontline Indian software companies registered negligible growth during Jan-Mar 2002. The recovery in the US is not likely to bring in revenue growth for Indian software companies in the immediate future. There is slackness in the demand...

CHINA: THE HIDDEN DRAGON (China is likely to pose a major threat to Indian software industry in the long run).
March 31, 2002... China is expected to pose a major threat to Indian software industry in the long run due to the accession to the World Trade Organisation. Now, India has a lead of nearly 5 years over China in offshore outsourcing. China has a superior...