Industries

China’s FAW Interested in Manufacturing Cars in India

Nov. 6 – Even as the dust settles on what would have been the Tata Nano plant in Singur, the West Bengal government reportedly offered the land to First Automobile Works Limited (FAW), a Chinese automobile manufacturer. Reports by the Hindu said a 12-member delegation from Chinese automobile company FAW Group Corporation met West Bengal Chief Minister Buddhadeb Bhattacharjee and Industry Minister Nirupam Sen expressing interest in setting up a joint venture automobile unit on about 600 acres – about the same size that is ‘undisputed’ in Singur — to set up a small car factory in Bengal.

Technology Companies Feel the Heat of the Financial Crisis

Oct. 24 – India's technology companies are feeling the heat from the global economic meltdown. "Our outlook is cautious in the near term given the extent of strain on the global economy," Azim Premji, chairman of Wipro Ltd. told the Wall Street Journal. Premji is pessimistic despite a sharp weakening of the Indian rupee, which helps tech companies that earn most of their revenue overseas.

A far cry from the 40 percent growth in revenues technology companies saw in the past few years, Tata Consultancy Services, India's largest IT company by revenue said revenue growth fell to 25 percent. Wipro's revenue on the other hand rose 36 percent on a year to your basis.

US$ 470 million Invested in India to Upgrade and Expand Telecom Network Equipment

Oct. 17 – With over 344 million telecom connections India is the third largest telecom market in the world and second largest telecom market within emerging economies. India's urban teledensity has been increasing by approximately 30 percent, the rural teledensity has also seen double digit growth.

In order to keep up with demand, the telecom network providers have been pouring money into India to upgrade and expand the country's telecom network. Telecom network maker Nokia Siemens Networks recently said they would invest US$70 million over three years in a new Indian factory that will make and distribute mobile communication equipment.

Kingfisher Airlines-Jet Airways announce operational alliance

Oct. 15 – Its a marriage of convenience. When oil costs are soaring, and air fares are low two of India's largest private airlines have no choice but to form an operational alliance. While Vijay Mallya controlled Kingfisher Airlines and Naresh Goyal owned Jet Airways have not yet decided to merge, the two companies jointly announced that they would form an alliance to cut costs and shore up their bottomline.

The two airlines have a combined fleet size of 186 aircrafts and a control 60 percent of the Indian skies. Indian frequent fliers expect the operational alliance to create a monopoly in the Indian skies, leading to increased air fares. While Jet Aiways has already spread its wings internationally, Kingfisher is yet to do so. Both airlines are mired in losses of several million US dollars, but expect to break even in the next two years.

India To Launch Unmanned Mission to the Moon

Oct. 9 – In a 21st-century Asian version of the space race between the United States and Soviet Union, India will compete with China by launching her own first unmanned mission to the Moon. Scheduled for launch on October 22, weather permitting, the Chandrayaan-1, India's locally made rocket will be fired from southeastern India. The estimated Rs3.86 billion (US$80.8 million) project involves six foreign countries, including the United States.

It aims to map a three-dimensional atlas of the moon through high-resolution remote sensing and map the surface's chemical and mineral composition.

Nano Drives into Gujarat

Oct. 8 – Orphaned by the state of West Bengal, Tata Motor's found a new home for the Rs 1 lakh (US$2,100) car in India's Western State of Gujarat. The states' connectivity by both road and sea as well as vendour proximity make Gujarat an ideal state for the Nano.

Gujarat chief minister Narendra Modi, a Hindu nationalist who has promoted his state as an investment destination, wooed the project with an offer of 1,000 acres (440 hectares) of land and a promise of no labour strikes.

"The Nano project was conceived as something that would provide affordable transport to a vast number of Indian families. I want the plant built in the shortest period of time", Tata Motors Chairman Ratan Tata said while signing the deal in Gujarat.

No official date has been set for the roll-out of the first Nano car but its makers were originally aiming for this month or December at the latest.

The Great Indian Bazaar

Sept. 26 – India's retail sector is estimated to grow to US$450billion by 2015, boosting the market share of organised retail from the current five percent to 14-18 per cent. A government-commissioned report valued the retail market at US$322bn last year. India's indegenious mom and pop stores, which have been battling for customers with the walmarts of the world, will be transformed during the next seven years, according to the McKinsey retail report entitled 'The Great Indian Bazaar'.

India to increase domestic oil and gas production by 40 percent

Sept. 22 – Reliance Industries, India's largest privately held company will start pumping oil and natural gas off India's East Coast from early next year. Although pulling oil from 2,400 metres beneath the cyclone-prone, choppy waters of the Bay of Bengal will be a technological feat for Reliance Industries, the company claims that this is India's ticket to energy independence and Reliance's entry into the club of global energy majors.

Within 18 months, oil and gas production from block D6 of the Krishna Godavari basin will increase India's domestic production by 40 per cent, potentially shaving about US$20 billion from the nation's US$77 billion oil import bill, Reliance officials told the Canadian Press. Canada's Niko Resources Ltd.has a 10 per cent stake in the project. A total investment of US$8.7 billion was spent in developing the block.