| COVER
STORY India
Inc.: On a Roll
- - Amit Singh Sisodiya,
Kavitha Putta and Madhuparna Chakraborthy
A
glance at The 500 clearly affirms India Inc. is on the fast track of growth.
If Tatas' big bang dealsincluding now the audacious bid for Anglo- Dutch steel
giant Corus, ranked among the top 10 steelmakers, globallyalong with a host of
other overseas acquisition deals made by other Indian companies seem incredible
to you, there is more up the sleeve of India Inc. to fascinate you. India Inc.'s
series of big-ticket acquisitions indeed suggest that domestic entrepreneurs are
ready to prove their mettle on the global business firmament. India Inc.'s newly
found confidence stems from the sterling performances churned out and sustained
over the last few years. A glance at The 500 shows it clearly: India Inc.
is indeed on a roll.
© 2006 IUP . All Rights Reserved
INDUSTRY
Indian
Oil and Gas Industry: Consolidating its Position
- - D Satish and Y Bala Bharathi
Indian
oil companies are going global to consolidate their positions and emerge as major
players. India is not only the fourth largest economy in the world, but has also
emerged as the third largest oil consumer in Asia. This has been putting immense
pressure on India to reduce its crude oil imports, which amount to 70% of the
total oil and gas consumption. According to the World Energy Outlook, India's
crude import dependency is projected to rise up to 94% in 2030 provided the current
trend continues.
© 2006 IUP . All Rights Reserved
INDUSTRY
Indian
Automotive Industry: A Global Hub in the Making
- - N Janardhan Rao and Ravi Babu Adusumilli The
large consumer base coupled with low factor costs is driving the Indian automotive
industry to new heights. The country is fast emerging as a hub for the global
auto industry. The Indian automobile industry has been growing at 14% a year since
the last five years. The industry has crossed an important milestone in 2005-06
by achieving a production of 10 million vehicles, including the tractors. The
2005-06 results were encouraging in all the segments with the industry recording
13% growth in sales volume over 2004-05. Passenger vehicle sales have posted 8%
growth due to delayed purchases by consumers as a result of budget announcements.
However, the exact trend is yet to be seen in subsequent quarters of FY2007.
© 2006 IUP . All Rights Reserved
INDUSTRY
Steel
Industry : Thriving on Domestic Boom
- - N Janardhan Rao and Ravi Babu Adusumilli Though
the steel production has increased rising input costs, declining steel prices
have been hitting the performance of steel companies. The global steel industry
has seen robust demand growth during 2005-06, though the decreased steel prices
and increased iron ore prices have put pressure on margins for Indian steel players
in the last fiscal. The demand-supply imbalances are already daunting the industry
with peaking imports. Moreover, the industry is banking on domestic demand rather
than export demand with surplus capacities and declining steel prices.
© 2006 IUP . All Rights Reserved
INDUSTRY
Cement
Industry : Concrete Growth
- - Amit Singh Sisodiya and Sanjoy De The
unprecedented growth in the infrastructure and housing sector coupled with rising
exports is driving the cement industry forward. It is action time now for the
Indian cement industry which was plagued by fragmentation and overcapacity. A
booming infrastructure sector coupled with a vibrant housing sector has injected
a new lease of life into the sector, which had almost become moribund just a couple
of years ago. However, as a result of consolidation over the last five years,
the players have not only been able to achieve economies of scale but also have
improved their efficiency.
© 2006 IUP . All Rights Reserved
INDUSTRY
Media
and Entertainment Industry: The Show Goes On
- - Amit Singh Sisodiya and Sanjoy De
The
action never stops at one of the most happening industries in the country thanks
to a buoyant economy, rising disposable incomes, and changing lifestyles. It's
been lights, camera, and action time, literally, for India's media and entertainment
industry. With box office cash registers ringing, thanks partially to rapid proliferation
of multiplexes, animation segment booming, and changing lifestyle of consumers,
the industry would not have asked for more. And with several global consultancy
firms painting a brighter picture for the industry, it's party time indeed.
© 2006 IUP . All Rights Reserved
INDUSTRY
Airline
Industry : Rush Hour!
- - Amit Singh Sisodiya and Sanjoy De While
the surge of low-cost carriers on India's aviation scene has literally pushed
the traffic sky high, it has not resulted in healthy bottom lines for the domestic
air carriers, though. Indian aviation sector has wit- nessed a sea change in the
last couple of years. From being a niche service that only a few privileged could
afford, it is now gradually reaching out to the Indian middle-class. The domestic
sector is expanding at the rate of 45% per annum and is expected to continue bulging
at around 20% for the next 4-5 years. Overall passenger traffic has soared by
19.9% from 43.47 million in 2004-05 to 52.12 million in 2005-06, whereas domestic
passenger traffic has grown by a whopping 28% from 39.86 million to 50.98 million
during the same period.
© 2006 IUP . All Rights Reserved
INDUSTRY
IT
Industry: IT's Happening
- - Amit Singh Sisodiya and Sanghamitra Dhara Driven
by strong export and acquisitive led growth strategy, IT companies are churning
good performance. The Indian IT industry continues to maintain its growth momentum.
It was no surprise when the industry came out with sound performances in FY2006
as well. Indeed, FY2006 was yet another year of triumph and excitement, holding
encouraging prospects for the years to come. The industry clocked a growth of
23%. s suggest that if the current momentum continues to hold pace, the
industry would be very much on its way to touch the Rs. 247,000 cr (US$53.2 bn)
mark by 2008. Already, the industry has emerged as the fourth largest in Asia-Pacific
region.
© 2006 IUP . All Rights Reserved
INDUSTRY
Indian
Real Estate Industry : Witnessing Unprecedented Boom
- - D Satish and Y Bala Bharathi Real
estate in India has been witnessing robust growth with the increasing demand for
real estate space. Investors who have missed the soft- ware boom have not missed
it all they are all set to capitalize on the real estate boom. The real estate
boom is apparently spreading unabated across the length and breadth of the country.
Of late, investment in this sector has been vindicated to be the best and the
most fruitful option in India.
© 2006 IUP . All Rights Reserved
M
& AS Global
Takeovers: India Inc.'s Day Out!
- - Amit Singh Sisodiya and Reshma George
When
L N Mittal, the undisputed king of the global steel industry, launched the hostile
bid to takeover Arcelor, it raised fears among corporates and political circles
in the western world about the impending attack from the emerging economies, especially,
China and India. As more and more Indian firms go on the prowl for overseas assets,
the protectionist's worst fears might be coming true.
© 2006 IUP . All Rights Reserved
M
& AS Tata
Steel - Corus : Twist in Consolidation Tale
- - Amit Singh Sisodiya and Sanghamitra Dhara
When
Mittal Steel, owned by the steel magnate L N Mittal, made the hostile bid to acquire
rival Arcelor, it was a clarion call for the rest of the industry players. Tata's
friendly bid for the UK-based Corus may be termed as a response to that. For Tatas,
who have emerged as one among the new group of "attackers", identified from emerging
economies, it is another deal to push their global gambit; in fact, various Tata
group firms have already made 27 acquisitions so far since 2000, when Tata Tea
acquired UK-based Tetley.
© 2006 IUP . All Rights Reserved
M
& AS Dr.
Reddy's - betapharm : Doctor's Prescription!
- - Amit Singh Sisodiya and Kavitha Putta
Dr.
Reddy's Laboratories, India's second largest phar- maceutical company, created
waves when it acquired the Germany-based betapharm in February 2006, in the largest
ever cross-border acquisition by any Indian drug maker. The deal valued at 480
mn ($576 mn) was an all-cash deal. betapharm has, over the years, emerged as the
fourth largest generics company in Germany after Hexal, Ratiopharm and Stada,
and commands almost 3.5% of the market share.
© 2006 IUP . All Rights Reserved
BUSINESS
ENVIRONMENT India
Inc. : The Great Surge
- - N Janardhan Rao From
being hunted to becoming the one on the prowl, it has been a great transformation
for India Inc. Yet, it is a long way before corporate India can takeover the world.
Buoyed by a booming economy, the success of knowledge-based industries, the easy
availability of credit and a new self-confidence to achieve global scale, India
Inc. is finally coming of age. Indian companies no longer fear competition and
don't need to depend on cheap labor and lower costs to take on rivals elsewhere
in the world. They are competitive despite not being the cheapest in the world.
They are the best in their field as the successes of Tata Steel, Dr. Reddy's and
Bharat Forge suggest.
© 2006 IUP . All Rights Reserved
APOLITICAL
Chinese
are Coming! : To Welcome with FTA?
- - grk The
Chinese President Mr. H U Jintao landed in India with an entourage that consisted
of top executives of many companies, besides political heavyweights. Reports indicate
that the visit is meant for unveiling several new initiatives, notable among them
could be forming an "energy-investment alliance" to jointly explore overseas oil
fields and give a boost to their bargaining power to buy foreign energy assets,
work out a strategy to strengthen negotiation-leverage at the World Trade Organization,
besides framing more robust commercial relationships.
© 2006 IUP . All Rights Reserved
ART
AND ARTISTS Milton
Friedman: The Iconoclastic Seeker of Freedom
- - GRK Murty
The
economist par excellence who sought "Positive Scientific Knowledge that enables
mankind to predict the consequences of a possible course of action" passed away
on 16th November, leaving a gaping vacuum behind. Prof. Milton Friedmanthe winner
of the Nobel Prize in Economics, "for his achievements in the field of consumption
analysis, monetary history and theory, and his demonstration of the complexity
of stabilization policy," is the best-known and most respected free market economist
in the world. His interest in, and advocacy of free market can well be traced
back to his very formative years as an economist when, at the young age of 33,
he co-authored the article"Income from Independent Professional Practice" with
Simon Kuznets, arguing that "the state licensing procedures limited entry into
the medical profession, thereby allowing doctors to charge higher fees to the
detriment of patients than if competition were more open."
© 2006 IUP . All Rights Reserved | 
