India is the second best country for business investment, a new survey of American corporate executives shows.
Conducted by Development Counsellors International every three years, the "Winning Strategies in Economic Development Marketing" survey has tracked trends in economic development since its inception in 1996.
This is the first year respondents were asked to rank the business favourablity of the world's 25 largest countries (based on GDP).
Of the 281 corporate executives who responded, 53.1 per cent named China as the most favouable country followed by India (45.1 per cent), Mexico (30.1 per cent), Britain (25.4 per cent) and Canada (22 per cent).
The corporate decision-makers who named India as the best for investment cited the country's labour force - including its supply, skill level and cost 65 per cent of the time as the reason for their positive perceptions.
India's "growing economy/business opportunities" and "low overall/operating costs" were named 38 per cent and 18 per cent of the time, respectively. The survey also polled the executives about the best US states for business.
Thursday, July 31, 2008
Wednesday, July 23, 2008
Renault may revise Indian strategy
A year after its joint venture with Mahindra & Mahindra got off the ground, French car maker Renault has decided to revise its sales strategy for India following the Logan's lacklustre performance.
The JV begun selling the mid-sized sedan in April-May last year through M&M's dealerships across the country.
Patrick Blain, executive VP (sales and marketing) Renault, who was quoted in a report, said, "The (mid-size) segment has turned out to be smaller than we thought and we may need to revise our product strategy for the Indian market."
Renault had earlier targeted sales of 50,000 units in the local market by 2008-end. The company sold 12,715 cars in the first six months of this year, falling way below the target of 25,000-30,000 units.
Blain further said that it is unlikely that the targeted sales will be achieved by the joint company, Mahindra Renault Private Limited (MRPL), this year. The company produced less than 1,100 cars in June, a sharp decline from the earlier monthly production tally of more than 2,500 cars. Sales, too, fell by 11 per cent in the last quarter.
The fall in expectation of sales is generally due to the fact that the Indian market has been dominated by compact and fuel efficient cars, which constitute about 70 per cent of the total vehicle sales.
Nalin Mehta, VP (sales and marketing), MRPL, said, "The automobile sector is facing difficult times; the situation begun to tighten four months ago. No vehicle manufacturing company, including us, is thinking of expanding operations currently. The slowdown has impacted our sales as well."
Last year, the company planned to have 100 Logan dealers across the country but managed only 94. The target for the year is to have 150 dealers in place and company officials say that the dealer expansion programe will move ahead as planned despite the slowdown.
Accentuating the slowdown worries, the company doesn't expect the entry level mid-size segment to grow as planned, which, according to some analysts, should have been in the range of 12-14 per cent. The small car segment, meanwhile, grew by nearly 15 per cent in the April-June quarter.
The Logan, an entry level midsizer priced at Rs 4.25 lakh (ex-showroom Mumbai), is pegged against the Maruti Suzuki DZire, the Ford Ikon, the Hyundai Accent and the Tata Indigo. MRPL claims to have garnered a market share of 12 per cent in the segment through the Logan.
The company is also planning to introduce the Sandero, which is based on the Logan platform. However, these plans have been pushed to next year as the focus currently is fully on consolidating the Logan in the local market, added Mehta.
The JV is a 51:49 partnership between Mahindra and Renault, which has already infused about Rs 700 crore in setting up a greenfield facility in Nashik that has a production capacity of 50,000 units per annum. The facility has a stamping and a paint shop with a pre-treatment and an assembly line.
The JV begun selling the mid-sized sedan in April-May last year through M&M's dealerships across the country.
Patrick Blain, executive VP (sales and marketing) Renault, who was quoted in a report, said, "The (mid-size) segment has turned out to be smaller than we thought and we may need to revise our product strategy for the Indian market."
Renault had earlier targeted sales of 50,000 units in the local market by 2008-end. The company sold 12,715 cars in the first six months of this year, falling way below the target of 25,000-30,000 units.
Blain further said that it is unlikely that the targeted sales will be achieved by the joint company, Mahindra Renault Private Limited (MRPL), this year. The company produced less than 1,100 cars in June, a sharp decline from the earlier monthly production tally of more than 2,500 cars. Sales, too, fell by 11 per cent in the last quarter.
The fall in expectation of sales is generally due to the fact that the Indian market has been dominated by compact and fuel efficient cars, which constitute about 70 per cent of the total vehicle sales.
Nalin Mehta, VP (sales and marketing), MRPL, said, "The automobile sector is facing difficult times; the situation begun to tighten four months ago. No vehicle manufacturing company, including us, is thinking of expanding operations currently. The slowdown has impacted our sales as well."
Last year, the company planned to have 100 Logan dealers across the country but managed only 94. The target for the year is to have 150 dealers in place and company officials say that the dealer expansion programe will move ahead as planned despite the slowdown.
Accentuating the slowdown worries, the company doesn't expect the entry level mid-size segment to grow as planned, which, according to some analysts, should have been in the range of 12-14 per cent. The small car segment, meanwhile, grew by nearly 15 per cent in the April-June quarter.
The Logan, an entry level midsizer priced at Rs 4.25 lakh (ex-showroom Mumbai), is pegged against the Maruti Suzuki DZire, the Ford Ikon, the Hyundai Accent and the Tata Indigo. MRPL claims to have garnered a market share of 12 per cent in the segment through the Logan.
The company is also planning to introduce the Sandero, which is based on the Logan platform. However, these plans have been pushed to next year as the focus currently is fully on consolidating the Logan in the local market, added Mehta.
The JV is a 51:49 partnership between Mahindra and Renault, which has already infused about Rs 700 crore in setting up a greenfield facility in Nashik that has a production capacity of 50,000 units per annum. The facility has a stamping and a paint shop with a pre-treatment and an assembly line.
Thursday, July 17, 2008
TCS plans to reduce costs through HR
Tata Consultancy Services (TCS) which is on a cost control drive is planning to optimise cost through hiring mix with inducting more number of trainees compared to professionals.
The expenditure on human resources works out to 50 to 55 per cent of the reveneus of the company and it expects to optimise its cost through a proper mix of hiring trainees and profesionals.
Ajoyendra Mukherjee, Vice-President and Head, Global HR of TCS said here today in the first quarter last year, the company had a hiring mix of 62 per cent professionals and 38 per cent trainees. Whereas in the first quarter of this year, out of every 100 employees hired, 61 were trainees and 39 were professionals.
He said the trend will continue in the rest of the year as well with at least 60 per cent of new recruits being trainees.
He said the company is also plaaning to use employee referral system to reduce cost while hiring new people. He also informed the attrition in the company is leveling out with the company focussing on retaining high performers.
Meanwhile, the number of foreign nationals working with TCS has crossed the 10,000 mark which is a record for any Indian IT company.
The company which had only 3,691 employees in the year 1990-91 today has over 1,16,000 employees on its roll making it the largest employer in the IT industry in the country, according to a handout released by the company.
The expenditure on human resources works out to 50 to 55 per cent of the reveneus of the company and it expects to optimise its cost through a proper mix of hiring trainees and profesionals.
Ajoyendra Mukherjee, Vice-President and Head, Global HR of TCS said here today in the first quarter last year, the company had a hiring mix of 62 per cent professionals and 38 per cent trainees. Whereas in the first quarter of this year, out of every 100 employees hired, 61 were trainees and 39 were professionals.
He said the trend will continue in the rest of the year as well with at least 60 per cent of new recruits being trainees.
He said the company is also plaaning to use employee referral system to reduce cost while hiring new people. He also informed the attrition in the company is leveling out with the company focussing on retaining high performers.
Meanwhile, the number of foreign nationals working with TCS has crossed the 10,000 mark which is a record for any Indian IT company.
The company which had only 3,691 employees in the year 1990-91 today has over 1,16,000 employees on its roll making it the largest employer in the IT industry in the country, according to a handout released by the company.
VW`s Indian car soon
The story about India enticing world auto majors will add another feather in European giant Volkswagen's (VW) cap as it prepares for its first fully-original Indian Volkswagen car, made with the help of expertise provided by Indian engineers and designers.
The company, which is also Europe's largest car maker, will follow in the footsteps of Maruti Suzuki, India's biggest passenger vehicle maker, which is also preparing to launch a similar car in the next three to four years.
Makham Dhalivaal, managing director, Volkswagen (passenger cars), said, "This Volkswagen car will be made in India from scratch. However, the plans are at a developmental stage and it's too early too talk about it."
A number of characteristics ranging from the basic design of the car on paper to the end product will be done in India.
As seven out of every ten cars sold in India are compact vehicles, industry experts suggest that VW will look at the small car category, like Maruti Suzuki, to tap the volume segment of the Indian car market, which swelled to 1.5 million units last year.
Maruti Suzuki (MSIL) has already begun work on the India car and aims to launch the automobile by 2011-12.
Maruti's car, too, will be developed from scratch. The company aims to double the number of engineers to 1,000 from 480 by 2010.
Meanwhile, VW has reiterated that it is on course to launch the Indian version of the Polo hatchback, its international best selling small car. The car, which is currently under development, will be tailored to suit buyer preferences here and will be launched in 2010.
VW's aggressive India plans are based on the country's expertise in low cost of vehicle manufacturing, which has led a number of international automotive giants, including Renault, Nissan, Hyundai, Honda, Toyota, General Motors and Ford, to exploit manufacturing opportunities here and make India their international export base.
The company today launched the Jetta, its second product in the country, pegged in the premium D segment of cars. The Jetta, which will compete with Honda Civic, Hyundai Sonata, Toyota Corolla and Skoda Octavia, will be priced in the range of Rs 12.97-Rs 16.67 lakh (Ex-showroom Delhi). The car will available in three variants with a diesel option.
VW currently sells the Passat luxury car, which is slated against the Mercedes C Class and BMW 3 Series, and also the Touareg sports utility vehicle.
Both brands together sold a total of 340 cars in the first 6 months of this year. The Passat and Jetta are locally assembled at Skoda Auto's facility in Aurangabad. The company is targetting sales of 20,000 units by the end of this year from the VW, Audi and Skoda brands.
VW's plant in Chakan, Pune is one year ahead of schedule, said company officials today. The company will inject more than Rs 3,500 crore into the plant which will have an initial production capacity of 110,000 units initially. The plant is expected to go on stream in the first half of next year.
Furthermore, a team of experts will visit India next week to study market analysis for the company's proposed foray into the commercial vehicle (CV) industry.
The company has said in the past that it is exploring the option of launching CV's in the Indian market.
The company, which is also Europe's largest car maker, will follow in the footsteps of Maruti Suzuki, India's biggest passenger vehicle maker, which is also preparing to launch a similar car in the next three to four years.
Makham Dhalivaal, managing director, Volkswagen (passenger cars), said, "This Volkswagen car will be made in India from scratch. However, the plans are at a developmental stage and it's too early too talk about it."
A number of characteristics ranging from the basic design of the car on paper to the end product will be done in India.
As seven out of every ten cars sold in India are compact vehicles, industry experts suggest that VW will look at the small car category, like Maruti Suzuki, to tap the volume segment of the Indian car market, which swelled to 1.5 million units last year.
Maruti Suzuki (MSIL) has already begun work on the India car and aims to launch the automobile by 2011-12.
Maruti's car, too, will be developed from scratch. The company aims to double the number of engineers to 1,000 from 480 by 2010.
Meanwhile, VW has reiterated that it is on course to launch the Indian version of the Polo hatchback, its international best selling small car. The car, which is currently under development, will be tailored to suit buyer preferences here and will be launched in 2010.
VW's aggressive India plans are based on the country's expertise in low cost of vehicle manufacturing, which has led a number of international automotive giants, including Renault, Nissan, Hyundai, Honda, Toyota, General Motors and Ford, to exploit manufacturing opportunities here and make India their international export base.
The company today launched the Jetta, its second product in the country, pegged in the premium D segment of cars. The Jetta, which will compete with Honda Civic, Hyundai Sonata, Toyota Corolla and Skoda Octavia, will be priced in the range of Rs 12.97-Rs 16.67 lakh (Ex-showroom Delhi). The car will available in three variants with a diesel option.
VW currently sells the Passat luxury car, which is slated against the Mercedes C Class and BMW 3 Series, and also the Touareg sports utility vehicle.
Both brands together sold a total of 340 cars in the first 6 months of this year. The Passat and Jetta are locally assembled at Skoda Auto's facility in Aurangabad. The company is targetting sales of 20,000 units by the end of this year from the VW, Audi and Skoda brands.
VW's plant in Chakan, Pune is one year ahead of schedule, said company officials today. The company will inject more than Rs 3,500 crore into the plant which will have an initial production capacity of 110,000 units initially. The plant is expected to go on stream in the first half of next year.
Furthermore, a team of experts will visit India next week to study market analysis for the company's proposed foray into the commercial vehicle (CV) industry.
The company has said in the past that it is exploring the option of launching CV's in the Indian market.
Bosch makes open offer for 20% in Indian entity
German firm Robert Bosch GmbH today made a open offer to the shareholders of Bosch Chassis Systems India for acquiring 20 per cent stake in the company at a maximum price of Rs 600 per share.
As per the open offer Robert Bosch GmbH would acquire up to 4,158,906 equity shares of Rs 10 each representing 20 per cent of the fully paid-up equity share capital of its Indian entity, auto ancillary firm Bosch Chassis said in a filing to the Bombay Stock Exchange.
The offer is scheduled to open on August 4 and would close on August 8.
The Germany-based firm is the holding company of Robert Bosch LLC and Robert Bosch Investment Nederland B V, the promoters of Bosch Chassis Systems India.
The promoter holding in Bosch Chassis Systems India is 80 per cent of the total issued equity share capital of the company.
Pursuant to the open offer the promoter shareholding in Bosch Chassis Systems India would increase to 100 per cent and would entail the delisting of fully paid up equity shares of the company from the Bombay Stock Exchange and the National Stock Exchange.
The German firm would make the voluntary delisting offer to the public shareholders of Bosch Chassis Systems in accordance with the delisting guidelines.
The delisting offer would enhance operating flexibility of the company and would provide a second exit opportunity to the public shareholders of the company.
The price for the offer would be determined after the reverse book building process, the company said.
As per the open offer Robert Bosch GmbH would acquire up to 4,158,906 equity shares of Rs 10 each representing 20 per cent of the fully paid-up equity share capital of its Indian entity, auto ancillary firm Bosch Chassis said in a filing to the Bombay Stock Exchange.
The offer is scheduled to open on August 4 and would close on August 8.
The Germany-based firm is the holding company of Robert Bosch LLC and Robert Bosch Investment Nederland B V, the promoters of Bosch Chassis Systems India.
The promoter holding in Bosch Chassis Systems India is 80 per cent of the total issued equity share capital of the company.
Pursuant to the open offer the promoter shareholding in Bosch Chassis Systems India would increase to 100 per cent and would entail the delisting of fully paid up equity shares of the company from the Bombay Stock Exchange and the National Stock Exchange.
The German firm would make the voluntary delisting offer to the public shareholders of Bosch Chassis Systems in accordance with the delisting guidelines.
The delisting offer would enhance operating flexibility of the company and would provide a second exit opportunity to the public shareholders of the company.
The price for the offer would be determined after the reverse book building process, the company said.
Thursday, July 10, 2008
Off-shoring to India creates jobs in UK: Experts
Outsourcing work by British companies to India does not cause job losses but boosts employment, according to a research by economists at the University of Nottingham.
Scores of major UK companies have been involved in off-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (GEP) at the University of Nottingham says the efficiencies it has brought has actually boosted business and led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far more complex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer."
The GEP research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth about off-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lower wage economies like China and India, but that's not the case.
Scores of major UK companies have been involved in off-shoring, which has often been opposed by unions.
But the research by the Globalisation and Economic Policy centre (GEP) at the University of Nottingham says the efficiencies it has brought has actually boosted business and led to them employing more people in the UK, not less.
David Greenaway, Director of the centre, said: "People fear their jobs are being exported to countries like India and China where labour is cheaper, but the picture is far more complex than that and much more positive.
"It would seem that firms that off-shore part of their production process or service provision overseas become more efficient. This boosts productivity and turnover and as a result these firms grow and end up employing more people at home, not fewer."
The GEP research says there are losers when off- shoring takes place through higher job turnover and people are unable to adapt to new skills. Richard Kneller, who co-wrote the research, says it also explodes another myth about off-shoring.
He said: "The common perception of off-shoring is that it's largely low-paid call centre jobs being exported to lower wage economies like China and India, but that's not the case.
Wednesday, July 9, 2008
Ratan Tata to be conferred with Doctorate degree
Ratan Tata, chairman, Tata group of companies, Mumbai would be among the three eminent persons to be conferred with Degree of Doctor of Science (Honoris Causa), during the 29th Convocation of Tamil Nadu Agricultural University (TNAU) to be held here on July 25.
M Ramasami, managing director, Rasi Seeds (P) Ltd, Attur and Bhavarlal Hiralal Jain, chairman, Jain Irrigationl systems Ltd, Jalgoan, Maharashtra, would be the other two to be conferred with the degrees, a TNAU release said today.
Tamil Nadu Governor, Surjit Singh Barnala, in his capacity as the chancellor would preside over the convocation, while Pro-chancellor and state agriculture minister, Veerapandi S Arumugam would announce the endowment of prizes and release TN AU publications, it said.
Abhijit Sen, member, planning commission, New Delhi, would be the chief guest and deliver the convocation address.
A total of 996 candidates (52 boys and 494 girls) would receive the degrees, which includes undergraduates, masters an doctorate degrees on the occasion.
M Ramasami, managing director, Rasi Seeds (P) Ltd, Attur and Bhavarlal Hiralal Jain, chairman, Jain Irrigationl systems Ltd, Jalgoan, Maharashtra, would be the other two to be conferred with the degrees, a TNAU release said today.
Tamil Nadu Governor, Surjit Singh Barnala, in his capacity as the chancellor would preside over the convocation, while Pro-chancellor and state agriculture minister, Veerapandi S Arumugam would announce the endowment of prizes and release TN AU publications, it said.
Abhijit Sen, member, planning commission, New Delhi, would be the chief guest and deliver the convocation address.
A total of 996 candidates (52 boys and 494 girls) would receive the degrees, which includes undergraduates, masters an doctorate degrees on the occasion.
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