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India has emerged

If one single statement of President Obamacaptures his trip to India signifying astrategic shift in Indo- US relations, it is this:India is not simply emerging: India hasalready emerged.The question is: what prompted Obamato make this pithy statement? In recent

years, India has slowly but steadilymoved on to the high table of globalengagement. Our role in G20 inmediating on conflicting positionsbetween major nations and taking an

independent position on the emerging global architecture have been acknowledged.

Another manifestation of Indias rising power has been the increase in Indiasquota share in IMF. As for the WTO, India has steadily become a decidingvoice. On climate change, Copenhagen had a defining moment when India becamethe fulcrum in negotiating between major pressure groups to save the conferencefrom falling apart.

Now there is talk of India becoming a part of an expanding G8 , while Indiasleadership is being sought in APEC, OECD and International Energy Agency. Thereis even talk of Indias inclusion in the Five Eyes, a five-country groupingwhich currently share sensitive counter-terrorism information withinteroperability.

Obamas statement reflects a culmination of all of these multidimensional globaldevelopments vis--vis India. Also significant is President Obamas avoidance of

the controversial O word outsourcing, during his visit. In fact, poignantly hesaid: I did not make outsourcing a bogey man during my trip.

He is aware, as elucidated in the FICCI-Maryland University study, that Indiancorporates acquired as many as 372 American firms and created 127 newcompanies (Greenfield) during 2004-09. Of these, 85 companies alonesupported 40,000 jobs for the US workforce. It is little known that the aerospacegiant, Boeing, alone will be selling $28 billion worth of aircraft to Air India, Spice Jetand jet Airways, which will create 280,000 jobs in the US.

This, aside from the 50,000 jobs talked about in the media from deals worth $10

billion signed during his visit. Obviously, the table is turning. From the days of PL480,when our food security depended on wheat production in Nebraska, we have arrivedat the point where Indian corporates are playing the role of white knights in shiningarmour for the US economy.

NSIDE THIS

SSUE:

ORPORATE watch

NDUSTRY watch

CONOMY watch

ACT OF WEEK

NTERVIEW

ARGONOMICS

PEN HOUSE

SCUSSION (VOL.

NTREPRENEUR

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THE NEWS LINE

CORPORATE WATCH

Google, Dell may keep $60 Bn. Tech acquisition spree alive

SAN FRANCISCO: Google and Dell plan to push ahead with more acquisitions, helping maintain atakeover spree thats boosted the value of US technology mergers to more than $60 bn. thisyear.Google is likely to buy more companies about the size of YouTube and Double Click, its twolargest deals, to help offer more online services, the companys head of mergers and acquisitionssaid in an interview last week. Dell plans more takeovers in its drive to double the size of its data-centre business to $30 bn in sales, a company executive said. Internet and computer companies areincreasingly relying on acquisitions to gain new technology and customers. Amazon.com is near anagreement to spend $540 mn. for Quidsi, owner of Diapers.com, two people familiar with the mattersaid on Sunday. For Google, the largest Internet search company, absorbing more start-ups couldprovide fresh ways to sell ads and compete with social-networking sites such as Facebook.

How Eureka Forbes uses Indian Parliamentary model to connect with its staffWhat can India Inc learn from India? A lot, it turns out. When Eureka Forbes (EFL) was searching for

a way to connect with all its employees, it found a model right in its backyard, in the Indian

Parliament. Three years ago, EFL decided to create a Senate, a sort of a parallel governing body,

which would have representatives from all Eureka Forbes centres across the country.

The idea was to make sure each and every one of our employees has a voice, says Marzin R

Shroff, CEO, direct sales. We want to tell them that they will be heard. The senate, as we see it, is

an important empowerment initiative.

At the heart of the set-up is the EuroSenate , a 14-member body of elected representatives one

each from Eureka Forbes 14 strategic business units, or geographic zones. The representatives,

called senators, are assisted by a three-member council, also elected from the SBU or the

constituency. The 42 councillors and the 14 senators report in to six governors, regional heads of

the company. There is also a president, speaker and a Senate Administration Committee.PepsiCo Indian innovations go to other global markets

Global soft drinks and snacks major PepsiCo today said its innovations in India are being adapted forthe firm's other international markets with the products gaining interest from overseas. Snacks likeKurkure and Aliva, and lemon-flavoured drink Nimbooz are some of the successful innovations inIndia that have attracted attention from outside.

"Other geographies have shown interest in some of the innovations done in India and have taken thelearnings from Indian experiences," a Pepsico India spokesperson told PTI.

While Pepsico India said these "products are not being exported to other countries", company

insiders said 'Nimbooz' and 'Aliva' are finding their way to Middle-Eastern and Western markets.However, these products are not launched in the same brand abroad till date considering the use of

specific Indian words as the locals there might not be able to relate with it.

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THE NEWS LINE

INDUSTRY WATCH

Glenmark moves closer to HIV drug launch

NEW DELHI/MUMBAI: Glenmark Pharmaceuticals has completed the third phase of human trials ofCrofelemer, a new drug to treat HIV-related diarrhoea that could rake in over $80 million.

The company has the right to launch the product in 140 countries, excluding the US, Europe, Japanand China, where its partners have marketing rights, Glenmark said in a statement.

We are encouraged by these results as we could now prepare for the launch of Crofelemer and thiswill be our first novel product, said Glenn Saldanha, CEO & MD , Glenmark Pharmaceuticals. Glenmarks partners Napo Pharmaceuticals and Salix Pharmaceuticals have announced the

completion of the trials, the company said in a filing to the Bombay Stock Exchange , where its shareprice closed at Rs 376.9, up 3.56%, after hitting a 52-week high of Rs 379.9 in the morning.

Indian IT to battle IBM, Accenture, Hewitt over $12 bn. deals

Indian technology vendors will lock horns with multinational rivals IBM , Accenture and Hewitt to gain

a share of the back-office outsourcing contracts worth $12.2 billion, set to expire next year.

According to Jens Butler, principal analyst at Ovum , Microsofts $200 million cred IT and collection

services deal with Accenture and Canadian brewer Molsons over $60-million BPO contract with H-P

are among the top contracts where existing vendors will face a bidding war from challengers in 2011.

While recovery from recession is likely to continue at a slow pace, the way the BPO market will

address the changing needs and desires of potential customers will be more rapid, said PatrickOBrien, principal analyst at Ovum.

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Outsourcing back-office processes were once seen as radical, aggressive move based entirely on

Indian labour arbitrage. But the market has become more complex and nuanced, he says.

Indian IT industry hails Obama's outsourcing stand

The resilient Indian IT industry honoured US President Barack Obama for terming those against

outsourcing as holding onto old stereotypes and for committing to do away with economic policy.

"Obama did a great job for our industry by terming them (anti-outsourcing lobbies) as stereotypes. I

think his administration will also do a great job in terms of changing those stereotypes," IT industry

lobby Nasscom president Som Mittal told reporters.

For positioning India as the market for US businesses and declaring that India was no longer

emerging but had emerged, the US administration's efforts to change the stereotypes would get

support of the industry, Mittal said.

Admitting that the rhetoric against outsourcing was a sentiment, driven because of high job losses in

the US, Mittal said both the governments had assured the industry that its perspectives were

understood.

"We hope this message is carried back to the US people by its administration and the media. We also

hope that the US Congress will understand our industry's business model. It is a different matter that

those job losses happened to be in manufacturing, retail and construction. In fact, there is net hiring

going on in the services if we go by the US labour statistics," Mittal added.

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THE NEWS LINE

ECONOMY WATCH

Gujarat tops in pace of urbanisation

The latest National Sample Survey Organisation (NSSO) report, Migration in India, has foundGujarat to have the highest rate of urbanisation among all other states in the country.

Based on a survey carried out by NSSO across India in 2007 and 2008, the report significantlysuggests that fast pace of urbanisation in Gujarat is mainly due to intra-state migration with largesections of rural people migrating to urban areas within the state instead of going out.

The report has found that 6.5% of all urban households in Gujarat are of migrants from within thestate, which is the highest in the country. This is followed by Kerala (6.4%) and others. Maharashtra

is on the lower side at 2.9 %.

Again, 90.6% of Gujarats rural migrants refuse to go outside the state, finding the state a better place

to live in, which is the main reason for the rapid pace of urbanization. Of these, 60.7% go to another

district and 29.8% shift to another place in the same district.

US Deficit Panel Proposes Curbs on Social Security

President barrack obamas proposed about two-way deficit commission of reducing the annual cost

of living increased in social security up to $1 trillion-plus. Rather the target is very tough for controllingthe growth of Medicare but they are looking to eliminate the popular tax break. Like interest deduction

mortgage. But at the same time Chairman Erskine Bowles and former Sen. Alan Simpson, R-Wyo.,

doesn't look like it can win support from 14 of the commission's 18 members to force a debate in

Congress.

As well Bowles is a Democrat and was former President Bill Clinton's White House chief of staff. Cuts

to Social Security and Medicare are making some liberals on the panel recoil. And conservative

Republicans are having difficulty with options on how to raise tax revenue. The plan also calls for cuts

in farm subsidies, foreign aid and the Pentagon's budget.

The Social Security proposal would change the inflation measurement used to calculate cost of living

adjustments for program benefits, reducing annual cost-of-living increases. It will almost certainly

draw opposition from advocates for seniors, who are already upset that there will be no increase for

2011, the second straight year without a raise. The release of the proposal comes just a week after

midterm elections that gave Republicans the House majority and increased their numbers in the

U.S.Senate.

China knocks US plan to pump money into system

The US Federal Reserves move to pump hundreds of billions of dollars into the financial system will

bring greater volatility to markets worldwide. The step will create new waves of cash sloshing in and

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out of countries in search of short-term profits. The US decision does not recognize, as a country

that issues one of the worlds major reserve currencies, its obligation to stabilizecapital markets. Nor

does it take into consideration the impact of this excessive fluidity on the financial markets of

emerging countries.

The Finance minister last week announced plans to buy $600 billion of long-term government bonds

by mid-2011 in an attempt to boost lending. That will increase the supply of dollars held by banks,

hopefully spurring more lending. The move is also expected to force down bond yields, taking with

them interest rates for homeowners, consumers and businesses. By weakening the US dollar it

should also help make US goods more competitive overseas and keep alive a stock market rally thatbegan in August.

Global recovery on track but debt unsustainable: OECD

Paris: A fragile global economic rebound is set to gather momentum next year but debt in leading

industrialised nations is expected to soar to record levels, the Organisation for Economic Cooperation

and Development (OECD) said on Wednesday. The OECD raised the outlook by three quarters of a

percentage point to 2.5% at the end of next year. Average quarterly growth in OECD members

should pick up from 1.75% at present to 2.5% in the latter half of next year and 3.0% in the second

half of 2012, the OECD said in its latest economic outlook.

The global economic recovery remains fragile but is broadly on track, the OECD said in a report

published ahead of a summit of Group of 20 nations in Seoul later this month. But it warned that the

economic crisis of the last two years had pushed public deficits and debt to unsustainable levels.

Simply stabilising debt relative to gross domestic product in most countries will require a historical

consolidation effort of anywhere from 6.0 to 9.0% of GDP, said OECD secretary general Angel

Gurria. But in fact even more is needed to bring debt back to sustainable levels.

Obamas India visit may be more style than substance

New Delhi: A weakened US President Barack Obama visits India last week to counter perceptions he

has relegated the Asian power behind rivals China and Pakistan, but he may struggle to seal deals to

help usher in billions of dollars of business.

Economic ties are booming but Obamas visit from Saturday to Monday may fail to live up to former

US President Bill Clintons 2000 trip that helped break the diplomatic ice, or former President George

W. Bushs visit in 2006 when a civil nuclear deal was hailed as a landmark in ties.

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THE NEWS LINE

FACTS OF THE WEEK

US computer-maker Dell made its entry into the highly competitive Indian smartphone market

with the launch of two high-end 3G-enabled handsets, priced at Rs 10,999 and 16,990

respectively. The company is targetting both high and low-end users with the two

smartphones, dubbed XCD28 (Rs 10,999) and XCD35 (Rs 16,990), it said here.

Nationalist Congress Party (NCP) leader Ajit Pawar , nephew of party chief Sharad Pawar and

a state minister, was chosen the next deputy chief minister of Maharashtra after Chhagan

Bhujbal. Pawar was elected as deputy to Prithviraj Chavan, who was selected the Congress to

replace Ashok Chavan as chief minister, by NCP legislators. The state is ruled by a Congress-

NCP coalition.

HCL Info systems has entered into an agreement with Mercator, the IT division of the EmiratesGroup , to manage IT enabled infrastructure for low-cost airline fly dubai.

Microsoft launched a unique campaign to dent Apple's iPhone and Google Android system by

playing up their 'faulty' design.

The software giant is taking its "Really" commercial on YouTube to the street by roping in TV

stars to tell how badly designed smart phones by its competitors have spawned a bad phone

behaviour among users.

Auto maker Volvo Auto India said it will launch its luxury sports utility vehicle (SUV) VolvoXC60 towards the last week of this month.

The Czech car maker Skoda Auto will launch its sports utility vehicle, or SUV, Yeti, on

November 15 at a price of around Rs 17 lakh, in Delhi.

The compact SUV that would take on the likes of Ford Endeavour, Mitsubishi Outlander and

Maruti Grand Vitara in the price band of Rs15-20 lakh would be assembled at Skodas

Aurangabad plant in Maharashtra.

Bharti Airtel, Indias largest mobile-phone operator, reported a bigger-than-expected 27% dropin quarterly profit weighed down by its loss-making Africa operations and hyper-competition in

its fast-growing home market.

SUN TV Group promoter Kalanithi Maran will take over as chairman of the budget airline

SpiceJet, and an announcement to this effect is likely to be made in a board meeting in Delhi

15 November 2010. The open offer of SpiceJet and the number of shares acquired by Mr

Maran, subsequent to the closure of the open offer on November 6, will also be taken up.

Tata International announced a new brands entry into the footwear market through anexclusive store as the brand name of Tashi. Tashi is derived from Tata and ashi (Japanese for

footsteps).

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THE NEWS LINE

INTERVIEW

Visit opens up more biz for both sides: DINESH KESKAR

US President Barack Obamas visit to India will provide

a big thrust to business ties between the two countries

and create a win-win situation for companies from both

countries, says Dinesh Keskar, head of aircraft giant

Boeing in India.He said Indian companies will now get

access to high-end technologies from the US while

American companies can look forward to more exportsto India. The trust factor will now go up several notches

and more American companies will land up here, feels

Mr Keskar who is also the chairman of American Chamber of Commerce in India.

What does the visit of Obama mean to India-US business relations?

The US is known for innovation and India is known for talent, especially in sectors like information

technology. What I expect to see now is the two combining to create benefits for both sides.

Liberalisation of export controls will enable India to get access to top-end American technology which

will help in various sectors, including defence and energy. American companies will get to do more

technology business with India and this will create jobs in the US.

The technology transfer and off-set business will create more opportunities for companies like

Hindustan Aeronautics and Bharat Electronics in the public sector and big corporate players like the

Tatas, Infosys,Wipro and HCL. The US President wants to double American exports in five years and

incremental exports to India will be a key part of that. When the relaxation in technology export curbs

enables American companies to provide more military equipment to India, there will be a new cycle of

business creation in both countries.

What is your view on issues like protectionism that Indian corporates are complaining about?

Indian IT companies have been doing good business in the US. There is an understanding that

Indian engineers bring skills which are important for American companies, especially at a price that

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enables US industry to stay competitive. Enhanced business ties between the two countries will

result in bilateral issues getting resolved over a period of time. Obamas visit is extra -ordinary and

unprecedented if you look at the large delegation which has come with him and also the fact that this

is his longest overseas visit. I have no doubt that the Presidents visit will add new momentum to

bilateral business relations.

For a large American company like Boeing, how will the outlook on India shape up afterObamas visit?

The $2.7-billion order from SpiceJet to buy 30 Boeing 737 aircraft was announced in the presence of

the President. We see it as a key landmark since this is the first big aircraft order from India, post

slowdown. We see the Indian aviation industry growing at 15% per annum, which is a strong recovery

from the slowdown.

This is a sign of the Indian economys resilience which makes American companies understand how

important it is to do business with India. The strong growth in Indias aviation means that the country

will require a large number aircraft and engines which American companies can provide. The

business window for American companies will open wider when more orders for defence equipment

materialise in India.

BOEING-737

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THE NEWS LINE

ZARGONOMY

Vulture capitalist: A venture capitalist who structures deals on behalf of an entrepreneur in such a

way that the investors benefit rather than the entrepreneur

Vertical market: A market that is oriented to one particular specialty, for example, plastics

manufacturing or transportation engineering

Waiver of premium: A provision of an insurance policy that suspends payment of premiums, for

example, if the insured suffers disabling injury

Walk: To resign from a job

Wallet technology: A software package providing digital wallets or purses on the computers of

merchants and customers to facilitate payment by digital cash

Waste management: A sustainable process for reducing the environmental impact of the disposal of

all types of materials used by businesses

Web marketing: The process of creating, developing, and enhancing a Web site in order to increase

the number of visits by potential customers

Whistle blowing: Speaking out to the media or the public on malpractice, misconduct, corruption, or

mismanagement witnessed in an organization

Withholding tax: The money that an employer pays directly to the U.S. government as a payment of

the income tax on the employee

Word of mouse: Word-of-mouth publicity on the Internet. Owing to the fast-paced and interactive

nature of online markets, word of mouse can spread much faster than its offline counterpart.

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SYNAPZGeneral management club

Please Mis-use your brain

IN

OPEN HOUSE DISCUSSION (VOL. 4)

Why Barack Obama came to

India?

Contact: +91-9876840519

[email protected] management club@ Lovely Professional University

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ENTREPRENEUR

KARSANBHAI PATEL

Dr. Karsanbhai Khodidas Patel (b. 1945, Rupper,Mehsana,

Gujrat is anIndian industrialist, founder of the Rs. 2500 crore

(USD 500 mn) Nirma group with major interests in detergents,

soaps and cosmetics. In 2005 Forbes listed his net worth as

USD $640 million. He has interests in education, and founded

a leading engineering college, the Nirma Institute of

Technology. He is sometimes referred to as Dr. K.K. Patel.

Early Life

Born into a farmer family from north Gujarat, Karsanbhai finished his B.Sc. in Chemistry at age 21

and worked as a lab technician, first in the New Cotton Mills, Ahmedabad, of the Lalbhai Group and

then at the Geology and Mining Department of the state Government.

NIRMA

In 1969, Karsanbhai set up Nirma, (named after daughter Nirupama) selling detergent powder. Thiswas an after-office business - the one-man company would bicycle through the neighbourhoods

selling handmade detergent packets door to door. At a price of Rs. 3 per kg, (one third the price of

leading detergents), it was an instant success.

Karsanbhai set up shop at small workshop in an Ahmedabad suburb. The Nirma brand quickly

established itself in Gujarat and maharashtra.

The high quality and low price of the detergent made for great value. Fueled by housewife-friendly

advertisement jingles, Nirma revolutionized the detergent market, creating an entirely new segment in

for economy detergent powder. At the time, detergent and soap manufacture was dominated by

MNCs with products like Surf by Hindustan Lever, priced around Rs. 13 per kg. Within a decade,

Nirma was the largest selling detergent in India. Since production was labour intensive, Nirma also

became a leading employer (employing 14,000 people 2004). Made without some phosphates, Nirma

was also somewhat more environment friendly.

After establishing its leadership in economy-priced detergents, Nirma entered the premium segment,

launching toilet soaps Nirma bath and Nirma beauty soap, and premium detergent Super Nirma

detergent. Ventures into shampoo and toothpaste were not as successful, but the edible salt Shudh

is doing well. Nirma beauty soap is one of the leading toilet soaps, behind Lifeboy and Lux. Overall

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Nirma has a 20% market share in soap cakes and about 35% in detergents. Nirma also has

successful operations in neighbouring countries.

In 1995, Karsanbhai started the Nirma Institute of Technology in Ahmedabad, which grew into a

leading engineering college in Gujarat. An Institute of Management followed, with the entire structure

being consolidated under the Nirma University of Science and Technology in 2003, overseen by the

Nirma Education and Research Foundation. The Nirmalabs education project, aimed at training and

incubating entrepreneurs, was launched 2004.

Karsanbhai's two sons and son-in-law are now at leading positions in the Nirma organization Rakesh

K Patel (MBA) looks after procurement and logistics, Hiren K Patel, chemical engineer and MBA,

heads marketing and finance, while Kalpesh Patel is in human resources and Healthcare Industry

(Nirlife healthcare).

Awards

In 2001, Karsanbhai was awarded an honorary doctorate by Florida Atlantic University, recognizing

his exceptional entrepreneurial and philanthropic accomplishments.

In 1990, the Federation of Association of Small Scale Industries of India (FASII), New Delhi, awarded

him the 'Udyog Ratna' award. The Gujarat Chamber of Commerce felicitated him as an 'Outstanding

Industrialist of the Eighties'. He has served twice as Chairman of the Development Council for Oils,

Soaps and Detergents.

Dr. Karsanbhai Khodidas Patel has been conferred with Padma Shri Award for the year 2010.The

award will be formally conferred by the President of India Mrs Pratibha Patil.

If you have any feedback, suggestions then mail us [email protected]: Derrick does not have own reporters. These are the news collected from different sources.