New Delhi: Despite challenging economic conditions, the enterprise software market in India is projected to reach $3.92 billion in 2013, a 13.9% growth over 2012 revenue of $3.45 billion, according to analyst firm Gartner. In 2013, India will be the fourth largest enterprise software market in Asia-Pacific region.
"Growing maturity of Indian users is an important driver for overall growth. Compounding the demand is the ongoing tendency for greater customer services, drive for IT cost savings, as well as the incorporation of emerging technologies such as mobility, social, cloud and business process management," said Asheesh Raina, principal research analyst at Gartner, in a release.
India also enjoys a rich presence of international software and hardware vendors, including HP, dell, Microsoft, IBM backed by an ecosystem of system integrators, service providers and business partners. The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (Gartner defines it as the convergence of new mobile, social, cloud and information computing environments) are the key drivers for high sustainable growth for India.
India is forecast to account for 11.6% of the region's total revenue of $33.73 billion in 2013, the equivalent to 1.32% of the total worldwide software market of $296 billion. By 2017, India's share of the software market in Asia-Pacific is expected to reach 13.11%, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion.
"End users in Asia-Pacific are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore," said Mr. Raina. "Increased budgets in India are expected because of the growing economy, increased globalization, foreign direct investment ( FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination."
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
Success in my Habit
Tuesday, June 11, 2013
India offers US$ 150 million for SEZ in Sittwe
Indian Banks Make Inroads in Myanmar
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
India’s Oil Companies Get Big Projects in the Oil Rich Myanmar
Road Projects in Myanmar to Help India’s Land Locked Northeast
Anand Sharma Meets President U Thein Sein of Myanmar
India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyer’s Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmar’s appreciation of India’s contribution to the country’s development. “Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey”, Shri Sharma told the President.
Talking about cooperation in banking sector Shri Sharma conveyes India’s appreciation for the Myanmar Government’s approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma.
The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09.
Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh.
India is involved in improving road connectivity with ASEAN country which will create new opportunities for India’s north eastern region. Shri Sharma informed of the significant progress in the area . India has extended assistance for road development projects which include upgradation of the Tamu-Kalewa-Kalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to India’s land locked North East.
BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the Kyigone- Kalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector.
Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday.
Saturday, June 8, 2013
GAIL, SCI sign MoU for LNG transportation
New Delhi: Gail India and the Shipping of Corporation India (SCI) today signed a memorandum of understanding (MOU) to cooperate for transportation of LNG sourced by Gail from the United States.
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
Under the MoU, both Gail and SCI shall cooperate for transportation of 5.8 million tonne per annum of LNG being sourced by Gail from Sabine Pass and Cove Point terminals in the US.
The co-operation would include SCI assisting Gail in the charter hiring of LNG ships and Gail assigning step-in right to SCI in the ownership of LNG Ships.
Gail has signed an LNG sales and purchase agreement with Cheniere Energy Partners, LP(Cheniere) to procure 3.5 MMTPA of LNG from the latter's Sabine Pass Terminal in Louisiana, in the US for a period of 20 years.
Gail has also signed a Terminal Service Agreement with Dominion through Gail Global (USA) LNG LLC for booking 2.3 MMTPA liquefaction capacity in the Cove Point LNG liquefaction terminal project located at Lusby in the state of Maryland.
As the agreements are on FOB basis, Gail is required to make its own arrangements for transportation of LNG from these terminals. The transportation of LNG is expected to begin from mid-2017.
B C Tripathi, chairman and managing director of Gail said, "We expect that this partnership will enable faster development of in-house fleet operations capabilities for the Company."
RIL will invest Rs1.5 lakh crore in next 3 years
Mumbai: Reliance Industries (RIL) has lined up an investment of Rs 1.5 lakh crore over the next three years across its business from oil and gas to petrochemicals and from retail to telecommunications, making it the largest capital investment in India by any enterprise.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
Although the RIL chairman did not give a break-up of the proposed investments, RIL will, on an average, invest Rs 50,000 crore each year, Rs 4,166 crore a month and Rs 139 crore everyday for the next three years against its earlier investment commitment of Rs 20,000 crore each year for five years. In its AGM last year, RIL chairman Mukesh Ambani had proposed an investment of Rs 1 lakh crore over the next five years.
To put things in perspective, the amount of this proposed investment is equivalent to the Rs 1,50,000 crore worth projects stuck in the road and steel sector alone and is 30% of the Rs 5 lakh crore of projects that are languishing in the power sector.
Unveiling the capital investment outlay at RIL's 39th annual general meeting (AGM) in Mumbai on Thursday, Ambani said, "RIL is making huge investments at a time of global economic slowdown. Investment in manufacturing and retail will spur growth. The most important need for India today is employment creation through investments in manufacturing, infrastructure, energy, services, agriculture and the rural economy. Based on our strong faith in the potential of India, we are currently making investments in excess of Rs 1,50,000 crore over the next 3 years."
However, the stock market didn't share the same excitement on its investment plans as RIL shares closed 1% down at Rs 792 in a weak Mumbai market.
"Most economies are faced with slowdown, high unemployment and the lack of visible growth triggers," Ambani said, adding that the company had the conviction to look beyond the cycle and make investments at this time. He also said it was their belief that new projects will come on-stream as the global economy recovered and margins in its core businesses were on the upswing.
Not all analysts are impressed though. "Assuming that RIL cash flows are Rs 25,000 crore for this year, Rs 30,000 crore for next year and Rs 40,000 crore the year after, it will still have to borrow Rs 55,000 crore for this capex. Then how can you say that you are free of debt on net basis? Also, if you take a debt of Rs 55,000 crore, RIL's interest income will reduce considerably," said investment advisor S P Tulsian.
According to analysts' estimates, RIL is investing $12 billion (Rs 68,400 crore) in its mega petrochemicals complex in Jamnagar, $5.2 billion (Rs 29,600 crore) in exploration with BP Plc. RIL has already invested over $3 billion in Reliance Jio and will spend a similar amount for its full-fledged roll out. The balance of about $4 billion is expected to be put into Reliance Retail and international ventures like shale gas in US among others.
India leads among BRIC nations: HSBC survey
New Delhi: India expanded at a better rate than the three BRIC peers China, Russia and Brazil in May 2013, according to a survey by HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
The HSBC composite index for India, which records manufacturing and services sector, stood at 52 in May 2013, whereas it was 50.9 for China, 51.2 for Brazil and 51 for Russia.
An index measure of above 50 indicates expansion.
“India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia,” said Mr Andre Loes, Chief Economist for LATAM, HSBC.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, remained unchanged from April 2013 at 51.4 in May 2013.
Growth accelerated in India on the back of a stronger services sector performance.
Employment grew marginally in May 2013. This was despite goods producers registering a fractional cut in staffing, highlighted HSBC survey.
The HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the services sector, as manufacturing output expectations were the weakest in five months, according to HSBC.
India, S. Africa may sign preferential trade pact this year
Hyderabad:India and South Africa may conclude a Preferential Trade Agreement by the end of this year, which would significantly boost bi-lateral trade, according to Moketsa Ramasodi, Chief Director, Department of Agriculture, Republic of South Africa.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
The current bilateral trade between India and South Africa was over $14 billion, he said at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry here today.
Exports from India to South Africa include vehicles and components, transport equipment, drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, he said, adding that there was substantial potential for trade growth between the two countries.
“We are sure, the India-SACU (South African Customs Union) PTA would enhance economic ties by reducing tariffs on several key products,” he said.
Devendra Surana, Faapci President, said significant investment opportunities could be tapped in the manufacturing sector, including food processing, floriculture, agro processing, petrochemicals, metals, textiles, leather, mining and transport.
India committed to be a steadfast partner of Myanmar: Anand Sharma
New Delhi:The Union Minister of Commerce, Industry & Textiles Shri Anand Sharma today asserted that with democracy tightening its grip in Myanmar, which has provided a right enabling environment to inspire investors’ confidence, India remains committed "to be a steadfast partner of Myanmar as it charters its path to growth and progress." Speaking during a session entitled "The Long-Term View" at the World Economic Forum on East Asia 2013 in Nay Pyi Taw, Myanmar today, Shri Sharma highlighted that India’s engagement with Myanmar is premised on a strong development partnership and that India would like to align its cooperation with the economic priorities of Myanmar.
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with countries of the region including Myanmar. “India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it… we are half-way there and am sure that by 2015-2016, this should be fully operational,” announced Shri Sharma.
Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500.
Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. “With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India,” said Shri Sharma.
Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that “India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.”
Friday, June 7, 2013
Ruchi Soya partners Japan cos for edible oil
Mumbai:To introduce a super premium edible oil brand which Indian consumers have never witnessed, Ruchi Soya Industries, India’s leading food and agro-based FMCG player, has inked a joint venture with J-Oil Mills Inc and Toyota Tsusho Corporation (TTC), both from Japan.
Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC.
“This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network,” said Dinesh Shahra, Founder and Managing Director, Ruchi Soya.
In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the company’s existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore.
The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said.
The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014.
Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.”
"Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field,” said Yoshiki Miura, Managing Director, TTC.
Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC.
“This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network,” said Dinesh Shahra, Founder and Managing Director, Ruchi Soya.
In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the company’s existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore.
The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said.
The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014.
Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.”
"Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field,” said Yoshiki Miura, Managing Director, TTC.
Amazon clicks into Indian online marketplace
New Delhi: Amazon, the world’s largest online retail company, has entered the Indian e-commerce space, promising low price for users and a better platform for sellers. India is the tenth market where Amazon has launched a country-specific retail Web site.
But unlike Amazon sites in other countries, the Indian venture is limited to third-party sellers. Amazon will not sell its own inventory due to foreign direct investment (FDI) regulations prohibiting foreign retailers from selling their own products online.
To start with, consumers will be able to buy books, movies and TV shows. Amazon.in will introduce additional categories including mobile phones and cameras in the coming weeks. On Day 1, the book store featured over seven million print books across 200 plus categories while the video store featured a collection of over 12,000 titles in English and Hindi.
While Amazon has not previously had a branded presence in India, in February 2012, it made its foray into the Indian market with the launch of Junglee.com, which connects buyers with online and offline retailers but with no sales transactions.
Real challenges
The launch of Amazon.in comes at a time when other e-commerce sites in the country have not been doing well. There are challenges including customer suspicion towards the quality of products sold online and lack of trust in payment mechanism.
Amit Agarwal, Vice-President, International Expansion, Amazon.com, told Business Line that while these challenges are real, other markets have shown similar trends at the nascent stage. “When you make your investment decision with a timeframe of 10 years then these things do not matter,” he said. From the consumer point of view, Amazon offers a platform that is aimed at offering a low price on any product by allowing sellers to compete.
For the seller, Amazon is offering unlimited shelf space with no listing fees. “From packaging to taxation to delivery logistics we are offering all of it in a simple package to sellers,” said Agarwal.
Pan-INDIA REACH
“Selling on Amazon presents an exciting opportunity as it opens up a new sales channel with pan-India reach at virtually no investment,” said M. S. Jaya Prakash, Proprietor, EducationSupplies. “Prior to this, I did not sell online and was apprehensive about how to fulfil online orders in a timely manner, handle customer service and manage returns.”
But unlike Amazon sites in other countries, the Indian venture is limited to third-party sellers. Amazon will not sell its own inventory due to foreign direct investment (FDI) regulations prohibiting foreign retailers from selling their own products online.
To start with, consumers will be able to buy books, movies and TV shows. Amazon.in will introduce additional categories including mobile phones and cameras in the coming weeks. On Day 1, the book store featured over seven million print books across 200 plus categories while the video store featured a collection of over 12,000 titles in English and Hindi.
While Amazon has not previously had a branded presence in India, in February 2012, it made its foray into the Indian market with the launch of Junglee.com, which connects buyers with online and offline retailers but with no sales transactions.
Real challenges
The launch of Amazon.in comes at a time when other e-commerce sites in the country have not been doing well. There are challenges including customer suspicion towards the quality of products sold online and lack of trust in payment mechanism.
Amit Agarwal, Vice-President, International Expansion, Amazon.com, told Business Line that while these challenges are real, other markets have shown similar trends at the nascent stage. “When you make your investment decision with a timeframe of 10 years then these things do not matter,” he said. From the consumer point of view, Amazon offers a platform that is aimed at offering a low price on any product by allowing sellers to compete.
For the seller, Amazon is offering unlimited shelf space with no listing fees. “From packaging to taxation to delivery logistics we are offering all of it in a simple package to sellers,” said Agarwal.
Pan-INDIA REACH
“Selling on Amazon presents an exciting opportunity as it opens up a new sales channel with pan-India reach at virtually no investment,” said M. S. Jaya Prakash, Proprietor, EducationSupplies. “Prior to this, I did not sell online and was apprehensive about how to fulfil online orders in a timely manner, handle customer service and manage returns.”
TCS, Cognizant bag mega deal from UK Rail
Mumbai:UK's Network Rail has given out IT outsourcing deals worth £360 million to Tata Consultancy Services (TCS), Cognizant Technology Solutions and three other multinational companies as it prepares to work with a smaller set of technology vendors.
The five ‘framework agreements’ will enable Network Rail, which owns and operates Britain's railway infrastructure, in ‘simplifying its computing relationships’ with over 270 individual IT suppliers, according to a press statement from the London-headquartered company.
The five ‘framework agreements’ will enable Network Rail, which owns and operates Britain's railway infrastructure, in ‘simplifying its computing relationships’ with over 270 individual IT suppliers, according to a press statement from the London-headquartered company.
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