Rajiv Kumar, the new secretary-general of Ficci (Federation of Indian Chamber and Commerce & Industry), is well aware that he will be constantly compared with his predecessor Amit Mitra, who has moved on to set right West Bengal's barren exchequer. For more than a decade-and-a-half, Mitra was synonymous with Ficci. He was more than just its public face. He was Mr Ficci.So how does he actually compare with Mitra? Kumar has impressive credentials. He was handpicked by Mitra as director-general-Ficci in October 2010 from Icrier (Indian Council for Research on International Economic Relations) where he served as director and CEO. Yet a year is too short a time to learn the (rope) tricks of the art of lobbying. A Ficci insider describes Kumar's job correctly: "It will be a different ball game altogether." THE REFORMIST NAMERajiv Kumar, 59 CAREER Secretary general, Ficci (May 2011) director-general, Ficci (October 2010) director and CEO, Icrier chief economist, CII (2004) Asian Development Bank (1995) Economic advisor, Ministry of Finance (1989) Indian Institute of Foreign Trade (1987) EDUCATIONDPhil in economics from Oxford University and PhD from Lucknow University LATEST BOOKMany Futures of India (April 2011) He comes in at a time when big business's nexus with the political order is under the scanner. Kumar has to repair the image. It is also tough times for the economy — inflation, oil prices, and a jolted India Inc. His new corner office at New Delhi's Mandi House will be a lonely place. It will call for many hard hours at the desk. Concedes Kumar: "The sacrifices and devotion of Mitra cannot be replicated. But let me assure you, he also knows that I am his co-traveller and a fellow reformist".Mitra chiselled a new profile for the industry body. "Ficci embraced a bright future under Mitra. It saw exceptional growth and became Indian industry's voice for policy change," says Harsh Mariwala, president of Ficci and chairman and managing director of Marico. When Mitra stepped into Ficci, it had an annual income of just Rs 7 crore; when he demitted office, it was at more than Rs 100 crore. It now has offices across the world — in the US, UK, Italy, Malaysia and China. It plays the role of a catalyst — driving investments between India and these countries. Mitra also saw to it that Ficci found its place under the sun — it held its own against its more flamboyant arch rival, the Confederation of Indian Industry. Mitra got the powers-that-be to shift two prominent events to Ficci — the India Brand Equity Fund and UK Investments from CII. He was India Inc.'s point man in New Delhi. Can Kumar do a Mitra?Kumar is quite a scholar. He has a DPhil. in economics from Oxford University and a PhD from Lucknow University. He serves on the board of the State Bank of India; is part of advisors group for the G-20; and also sits on the expert committee on National Small Saving Funds. He sets out his priorities: "I am a reformist. I want to work for the integrated domestic markets. I jokingly say to my peers that before India signs an FTA (free trade agreement) with any country, it should have it amongst its states first! This would include issues related to free movement of products, and reforms in indirect taxes". He adds that globally, India has sold the ‘Incredible India' story. Now it is the time for selling credible India. "We must maximise India's advantage". His immediate focus is on employment generation. "This should be the only and exclusive focus at this moment. Inclusive growth is only possible if you can provide employment to the youth."Kumar's biggest challenge will be, though, to see that the powers in the government pay as much attention to him as they did to Mitra.(This story was published in Businessworld Issue Dated 06-06-2011)
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India's first official forecast for the 2011 monsoon on Tuesday is likely to match other outlooks for normal rains, which if met would bring relief to Asia's third-largest economy in its battle with high food prices.Hopes for normal rains have grown following a favourable forecast for South Asia by global weather experts last week.Good rainfall would boost food output in India, one of the world's top consumers and producers of a range of agricultural commodities, and also help governments throughout Asia to battle food inflation.A failed monsoon can force India into the international markets as a buyer, as happened in 2009, a year when initial forecasts were calling for normal rains.A normal monsoon means the country receives rainfall between 96-104 per cent of a 50-year average of 89 centimetres during the four-month rainy season, according to the India's weather office classification.The government, which is struggling with not only inflation but also a massive subsidy bill for fuel, grains and fertilisers, would hope for some price relief from a good monsoon at a time when it is facing key state elections."We should expect a normal monsoon," Food Minister K.V. Thomas was quoted as saying in Hindustan Times newspaper on Tuesday.The deputy head of the main state-run agriculture research organisation also said a normal monsoon was expected."Initial expectation of good rains over southern and central areas boosts output prospects for rice and soybean crops, but lower rainfall in western region would impact reservoirs," A.K. Singh told Reuters."Below normal rainfall in northwestern region could be duly compensated as the region has developed irrigation facilities."While India is mostly self-sufficient in staples like wheat and rice for its 1.2 billion population, drought can push the country into international markets as it did in 2009 when India had to import sugar -- sending global prices to record highs.Monsoon PoliticsMonsoon forecasting in India is carried out by government-run organisations and has significant political implications in a country where more than 60 percent of voters are in rural communities and form the bulk of the government's support base.Prime Minister Manmohan Singh's Congress party is fighting key state elections now, and analysts say an unfavourable forecast was unlikely because of its impact on the confidence of rural voters."At this juncture (when elections are being held), the government has limited choice in announcing a bad monsoon which may also lead to a spike in food prices," said S. Raghuraman, a New Delhi-based independent commodities analyst.Bad rainfall results put political pressure on the government, as farmers demand higher rates for their produce and ask bureaucrats to waive loan repayment and electricity charges, impacting public finances.Singh's ruling Congress government, mired in a slew of corruption charges, has struggled with double-digit food inflation for most of its second term in office since 2009 when it won an election partly by boosting farm incomes.Agriculture accounts for 14.6 percent of India's GDP and with about 60 percent of crop land dependent on monsoon rains, the impact of the annual June-September southwest monsoons is significant on the nation's economy.The government subsidises the price of key crops to contain inflation and ensure half a billion poor -- many of whom spend up to 60 percent of their incomes on food -- can afford to eat.Monsoons also impact demand for gold in India, the world's top consumer of the metal, as purchases get a boost when farming incomes rise amid high crop output. Rural areas account for about 70 per cent of India's annual gold consumption.The monsoon impacts other sectors of the trillion-dollar economy, as farmers spend their cash on cars, motorcycles and consumer goods. Good rainfall reduces demand for diesel, used to pump water from wells for irrigation when rainfall is scant. (Reuters)
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This is going to be one of the toughest assignments to take on. Ushering in the goods and services tax (GST) regime — it will replace a complex system of indirect state and federal taxes with a single tax — is going to be a difficult task to accomplish.Asim Dasgupta, outgoing chairman and West Bengal's erstwhile finance minister, would have seen it through; he played a key role in ushering in the controversial value-added tax regime in 2005, which success got him the job of producing the same result with the GST.His successor will probably have a torrid time. Many states (mainly those governed by the Bhartiya Janata Party) opposed the tax. The GST requires a constitutional amendment, so two-thirds of the states will have to ratify it.Bihar's deputy chief minister Sushil Modi, deputy chairman of the group, is the frontrunner so far; he is with the BJP (the chairman is traditionally from one of the opposition parties in Parliament). He is likely to represent the concerns of the BJP-ruled states; given the BJP's ongoing battle with the UPA government, Congress-ruled states may make things hard for Modi. People are worried that no matter who takes over, it could delay GST's introduction.Amit Mitra, Dasgupta's successor in West Bengal, is a former secretary general of the Federation of Indian Chambers of Commerce and Industry; he understands the GST's impact on the corporate sector, but may be less familiar with the political sensitivities.Can Mitra and Modi work together? Both were active in the Akhil Bhartiya Vidyarthi Parishad in their college days. Ah, nostalgia.(This story was published in Businessworld Issue Dated 06-06-2011)
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The deal is likely to come through within the next two weeks, a source with direct knowledge of the matter said on Tuesday."Pipavav is talking to a large international player. It would take about one or two weeks for the deal," the source said.India's largest shipyard by market capitalisation hopes to sell the shares at a 20 per cent premium to its current market price, the source, who declined to be identified ahead of a public announcement, told Reuters.At the current market price, this would come to more than 100 rupees a share.Earlier on Tuesday, Pipavav shares rose nearly 10 per cent after a television channel reported the firm was in talks to sell a stake. At 2:30 pm the shares were up 8.64 per cent at 88.65 rupees in the Mumbai market.Pipavav Shipyard's promoters currently hold about 45 per cent in the firm, data from the stock exchange showed.(Reuters)
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There are many stereotypes about the French. And most of them aren't true. French people don't all wear a beret and sport a curly moustache, and walk around with a baguette in one hand and a cigarette in the other. But some of these stereotypes stick for a good reason. French people love cheese. Cheese is to the French, what rice is to South Indians: it comes with every meal. And French people don't just eat cheese. They eat 246 different varieties of cheese - though that figure is the subject of a much-heated debate in France. Charles de Gaulle, the famous French general and statesman who led the Free Forces during World War II, once famously asked: "How can anyone govern a nation that has 246 different kind of cheese?"Almost every region in France has its own cheese - made from cow or goat milk, soft or hard, mild or stinky - produced according to different traditions and techniques. One could tour France for a year and still not find time to discover them all. Here are some suggestions:Every voyage to France starts with Paris. Because Paris is one of the most mesmerising cities in the world, but also simply because wherever you are from, chances are that you will be landing at Charles de Gaulle airport, about 25 km outside Paris.While you will find a great variety of cheese in Paris's bustling markets, which spring up on every street corner on Sunday mornings, few are actually made locally. Brie is, however, one of them, and one of the country's most popular cheese. It's also a good way to dive in for the faint hearted who may not be used to the good old French cheese with a strong taste and smell. Le Brie - pronounce "bri" and not "bry", or nobody in Paris will have the faintest clue what you are talking about - is a soft cheese made from cow milk, pale in colour with a slight greyish tinge under a rind of white mold. Like most French cheese, it is named after the region from which it originated - la Brie - now known as Seine-et-Marne, a province close to Paris. It is best appreciated with a good piece of 'baguette' just out of the oven of one of the city's many 'boulangeries'. You can find a pasteurised version - this processing is mandatory in the US and Australia - of it in supermarkets, though it is frowned upon by most Parisians who prefer to buy it directly from producers.By now, your taste buds should be ready for something a bit stronger, so hop on a train to Normandy. A picturesque region north to Paris, it is known for one of the country's most famous cheese: le Camembert. Its reputation and its strong pungent smell precedes it, although it is somewhat exaggerated. According to how old the cheese is, its taste will vary greatly. So if you cannot handle that strong taste, make sure to buy your Camembert young and firm. The longer you keep it, the stronger the taste and smell will become. Whichever way you like it, Camembert is a classic French cheese, and one that you just must try out. CHEESY AFFAIR: (Clockwise from top left) Brie, Comté, Rocamadour and le Camembert are some of the celebrated cheese break-page-breakAlthough not as well known as Camembert, Munster - not to be confused with America's Muenster - made in Lorraine, a region close to the German border, is for true cheese enthusiasts. The name Munster comes from the little town of Munster, where, among Vosgian abbeys and monasteries, the cheese was traditionally conserved and matured in monks' cellars. It tastes strong and powerful, especially if you let it mature for a few days. A glass of strong red wine - like Côte-Rôties, Corton, Haut-Médoc, or Pinot rouge d'Alsace - goes well with it. If the cheese is young, opt instead for a late harvest Gewürztraminer, a white wine from Alsace with floral notes. From there, travel south to Franche-Comté. That's the region where the famous Comté, a hard cheese with a dusty brown and a pale creamy yellow paste rind, is made. After the Camembert and the Munster, this may come as a welcome break. While the Comté is also fairly strong in taste, it is slightly sweet, so usually fares well even with those who may not be die-hard cheese lovers. It is only made of milk from Montbeliarde cattle - a red and white cow from the region. Fresh from the farm, milk is poured into huge copper vats where it is warmed. Rennet is added causing the milk to coagulate. The curds are cut into tiny white grains that are then stirred before being heated again. The preparation is then placed into moulds, the whey pressed out, and finally left to mature in cellars for months. Travel 300 km south west and you will hit the mountains of Auvergne, once well known as a fierce bastion of the French resistance during World War II. Today, it is better known for its blue cheese: le Bleu d'Auvergne. It may not be for everyone: its appearance is somewhat unappetising and it has a strong smell. Le Bleu d'Auvergne is moist and its texture slightly sticky, shot through with blue veins against an ivory coloured paste. But if you are adventurous enough to take a bite, you won't regret it, especially if you pair it up with a sweet wine like a Sauternes. If you can handle le Bleu d'Auvergne, then you should also try its more famous counterpart, the Roquefort, made in the Midi-Pyrénées region, just south of Auvergne. Though fairly similar in appearance and taste, the Roquefort - also a blue cheese - is usually a bit more salty and tangy. Another famous cheese in the region is the Rocamadour, a small round goat cheese, named after a beautiful historical French village, set in a gorge above a tributary of the Dordogne river, in the French province, le Lot. It is best enjoyed on a slice of 'pain de campagne' (country bread) - a large round loaf made from a natural leavening, and a glass of Cahors - a local red wine. If you are really fond of goat cheese, better head for the Centre region, the largest producer of cheese made from goat milk. The Crottin de Chavignol, a small cylindrical cheese, is made in the area around the village of Chavignol in the Loire Valley - a region referred to as the Garden of France because of its many vineyards, orchards and cherry fields that line the banks of the river, and known for its more than 300 Renaissance-era castles. The Selles-sur-Cher, a goat cheese with a persistent after-taste, is another favourite in the Centre region, as well as the Pouligny-Saint-Pierre, a golden brown cheese with speckles of grey-blue mould, distinctive because of its pyramidal shape and sometimes called Eiffel tower. Before making your way back to Paris, make sure to eat to your heart's content. Cheese does not travel well. Nor will your neighbour in the flight, if you elect to bring some home with you. BON APPETIT (Clockwise From top left) le Bleu d'Auvergne, Crottin de Chavignol and Saint Félicie
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Let us begin by understanding what has been done for Small and Medium Enterprises in the central budget 2011-12.The honourable FM devoted two paragraphs of the entire budget to the developmental schemes for SME's• For SIDBI, the finance minister allocated 5000cr for refinancing incremental lending by banks to MSME enterprises This has been raised from R4,000 crore in 2010-11.• R3,000 crore has been allocated for Nabard to benefit 15,000 weaver cooperative societies and 3 lakh handloom weavers.• The khadi and village industries segment, which receives around half the funds allocated for the ministry, saw an increase in their outlay • The MSME segment, which gets less than a third of the ministry's allocations, saw its budget allocation grow by a respectable 12.9%• Marginal increase in the allocation for coir industries has also been provided in this budget• The allocation for the northeastern region increased by 12.3%. • The National Small Industries Corporation saw its allocation surge by 110.4% to a substantial R705 crore.A single glance would suggest that a lot of sectors have been addresses but going deeper into the layers would expose the truth.Allocations has been focused on sector-focussed institutions like SIDBI and NABARDFor the Khadi and Village industries the allocation has increased by a paltry amount of 3.3% only. Similarly the allocation increase for the coir industry is 1.7% which has been also been loaded with export cess. This would more than nullify the miniscule increase in allocation.Few of the gainers were The north-eastern sector which saw close to a tenth of the total budget allocation. This would be a great boost to provide impetus to a region which needs that extra push to come at par into the mainstream.The NSIC which got a substantial increase of more than 100% in its budget allocation would surely help micro and small enterprises. The marketing assistance schemes on NSIC would further ensure support to market the products in the domestic and international markets. Not only this, the corporations performance and credit rating scheme ensures that the micro and small enterprises are subsidised by the government to the extent of 75% (up to a maximum of R40,000) for getting themselves rated for performance and creditworthiness by empanelled accredited credit rating agencies.However there is a lot that needs to be done and mere scratching of the surface reveals that. The often heard slogans like "Power to SMEs", providing "real help when businesses need it most" seem to be mere slogans. Being on the side of "go-getters" may be a rousing rhetoric from our current government but there are no concrete and sizable actions supporting it.Whether it is the moving of the service tax from cash to accrual basis or providing a solution for bad debts in SME enterprises, none has not been addressed by the FM. This would directly impact the liquidity crunch in organisations which do not have much liquid assets anyway. And to top it all the FM had nothing to offer in terms of cheaper loans either. The highest employment generator does not get any rebate on interest rates. If the agricultural sector can get impetus by getting loans at 4%, the SME sector should have at least seen some decline in the interest rates. Access to finance is, in some instances, harder than ever to obtain — especially if you are starting up. In addition, the cost of employing staff is due to increase in April this year and the full effects of the spending cuts are still on the waySetting up of a special fund for the micro enterprises for exclusive lending to this sub-sector; introduction of a public procurement policy that mandates government and public sector units to reach, in a stipulated time period, a target of at least 20% of their annual volume of purchases from micro and small enterprises and the need for earmarking additional public spending of around Rs 5,500 crore over a five-year period, to specifically target deficiencies in the existing infrastructure and institutional setup do not seem to have got the attention they deserveThe budget, it appears to be just a weak attempt to somehow balance instead of boldly taking the lead to address the imbalances. There is a crucial need to develop a think tank, composing a good balance representation from various sectors within the MSME's to suggest a road map to the FM. The government has to act quickly, decisively and significantly by introducing hard and fast measures that will assist the globally referred ‘fuel to an economy' organisations. The scope is more…much more..
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The winter chill is here, so stop warming your chairs and move it! Get going and get away for a while, it'll do your system a lot of good. Okay, so you can't jump and run right away, but you can start planning, right? This time, we say, go somewhere where it's really COLD, such as ski resorts. There's nothing more exhilarating than tearing down icy slopes against the onrushing, bitter-cold wind. And the fun is greater if you went to a place that is less celebrated, but no less exquisite than the world's best known ski resorts. So, here's a delectable menu of unusual options.Among the most spectacular ski experiences is one in the land of the midnight sun — Riksgränsen, the northernmost ski resort in the world (in Sweden), 300 miles north of the Arctic Circle. Locally, it is called heaven and hell; heaven because of the sheer variety of terrain available (though top elevation is just 909 metres); and hell because the weather could turn vicious in a moment. The resort is open from February to early July. Between mid-May and July, the sun doesn't set on Riksgränsen, meaning you can put on your skiing shoes or snowboard even at midnight. If you're lucky, you'll have the Aurora Borealis for company. While there are several pistes (marked or groomed ski trails) for the conventional skier, Riksgränsen is off-piste heaven (think of it as the skiing equivalent of offroading). What has Vladimir Putin been in the news for lately? Hmm… let's see… racing an F1 car, hunting, fishing, driving cross country, um… Alina Kabaeva... the list is long. But what we're getting at are pictures splashed all over of him skiing at Krasnaya Polyana, in the midst of the breathtaking West Caucasian mountains. Located in the European part of Russia, it takes just a two-and-a-half hour flight to reach Krasnaya Polyana from Moscow. The place is gentle compared to Riksgränsen, with more inhabitants, and lots of well-maintained pistes. Its best slopes are on the northern slopes of the Aibga Ridge, with the longest being 4 km in length. Heli-skiing (the helicopter drops you off at a remote, off-piste place) can lengthen the trail to 7 km and provide a vertical of more than 2,000 metre. Best time to visit is December-March, but the mild climate is a bother; so it's best to check the snow levels (on the resort's website) before booking the tickets.Down Under, Thredbo is thunder! Pardon the borrowed punchline, but Thredbo, in New South Wales, Australia, is truly the southern hemisphere's most sought after skiing destination. A relatively upmarket resort 500 km south of Sydney, Thredbo provides Australia's longest ski runs and the most vertical alpine terrain. Seasoned skiers could check out the Funnel Web, the steepest run on the mountain. When not skiing, one can indulge in a variety of self-guided bush walks or a joyride on the 700-metre Thredbo bobsled on a fun track full of wild straights, twists and turns. To unwind, there's the Schuss Bar or the Keller Nightclub. Best time to visit is now.From the land of the midnight sun to the land of the rising sun. Yes, Japan too has plenty of snow, and some cool ski resorts as well. One such resort, Hakuba Valley, is just a three-hour train ride from Tokyo. It has 10 resort areas and more than 200 runs for both skiers and snowboarders of all ability levels. Plus, a base snow cover of more than 10 metres every season makes Hakuba an ideal location for the regular skier. There is also a collection of natural hot springs that help you unwind after a tough day on the slopes. The resort is open from December until the beginning of May. And the best time to visit is mid-December to mid-March.This one's slightly on the eerie side. The Balkans, or more precisely, Transylvania, home to Bran Castle of Dracula fame, is a fast emerging hotspot for skiing enthusiasts. The amenities, though, aren't worth shouting about; what you can be sure to get is inexpensive, hearty food, uncrowded slopes and stunning scenery. Skiing, rather cross-country skiing is more popular here than snowboarding. The best known ski resort in the region is Brasov-Poiana. It is perfect for beginners with 15 km of slopes marked blue, red and black according to difficulty level. And don't worry, Count Dracula isn't among the hosts.(This story was published in Businessworld Issue Dated 22-11-2010)
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What is it that you crave for the most after a long, stressful day at work — a cup of tea; relaxing at home in front of the TV; a massage; or all of the above? If it's ‘all of the above', then a therapeutic massage chair is just the thing. Plonk yourself on it, sip a cup of tea, switch on the tele and relax while the high-tech gadget kneads and taps away the stress. A good quality therapeutic massage chair can help reduce or eliminate the discomfort caused by strained or overworked muscles while increasing blood flow. It is also effective for relieving sport injuries and can provide great relief to back and neck stiffness and pain, often caused by sitting at a desk for hours on end. Here's our selection of the latest and the most high-tech recliners to choose from.Our first pick is the AcuTouch 9500 from Human Touch. This luxurious piece of furniture claims to be the world's first iOS device-controlled massage chair, which means you can choose and store your desired routines and even download custom massages designed by doctors and sports stars — via the free HT-Connect app — on your iPhone, iPod touch or iPad. The chair, which comes with retractable foot and calf massager, dual-lumbar back heat and eight-point pulsating seat massage system, can be turned on or off using your Apple device. Price on request. The consumer electronics association picked Inada's two massage chair models — a low cost, multi-purpose, portable mini massage chair, the FML-3000A Inada Cube and a robust and feature-rich premium chair, the HCP-9101A Inada Doctor's Choice Massage Chair as the best innovations in the home appliances and health and wellness categories respectively, earlier this year. Both chairs use a technology that simulates shiatsu massage therapy by kneading key pressure points with air cells to alleviate pain and discomfort. While the Cube, priced at an affordable $999 (Rs 44,555), relieves tension through foot reflexology and lower back massage with a small, space-conscious unit, the Doctor's Choice, priced at $6,499 (Rs 2.89 lakh) is designed to fit the human form like a glove and uses infrared body scanning, rollers and air-cell compression systems for a full body shiatsu massage.If you are looking for a firmer, effective and intense roller massage for those tighter muscles, try the Singapore-based OSIM's uDream. Priced at a whopping Rs 4.49 lakh, the uDream comes loaded with eight healthcare programmes and an extensive suite of manual options to relieve aches and stress. The recliner uses optical acupressure-point sensors to target the body's meridians, which help relieve pain, improve blood circulation, reduce tension and stress, and strengthen immunity.If all you want at the end of a long day at work is to stretch, try the Pure Therapy PT500 reclining massage chair. The chair can be reclined up to 160 degrees and assists in relieving stress from your spine, lower leg and calf. It offers a wide range of massage techniques — shiatsu, tap, knead and tap, press and knock. The lower leg and calf massager can relax your calves, and increase circulation. At $1,599, (Rs 71,000) it is lighter on your pocket than many others in the market with similar features.
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India supported France's Christine Lagarde as the International Monetary Fund's next leader because it wanted to be part of the consensus that was forming around her, Finance Minster Pranab Mukherjee said on Tuesday.Mukherjee told Reuters in an interview that he thought the IMF's selection mechanism should have been more transparent, but he believed that Lagarde, France's finance minister, was a worthy candidate."Of course she has merit. Otherwise, why should I be supporting her?" Mukherjee said.Mukherjee kept his cards close to the vest, waiting until after the IMF board elected Lagarde as managing director on Tuesday, to reveal his country's support.The decision kept the IMF's top job in the hands of a European, hewing to a tradition detested by many emerging market countries, which have been seeking a greater voice at the global rescue lender.But Lagarde won the support of several large emerging market countries, including Brazil and China, over rival candidate, Mexican central bank chief Agustin Carstens."We knew both of them, but we wanted to be part of the consensus, and the consensus emerged ... around Christine Lagarde. So naturally we became a part of it," Mukherjee said.Mukherjee said he met with both candidates, but he noted that Lagarde did not promise to make any reforms on behalf of emerging market countries."We didn't discuss any such thing when she met with us because it was not a quid pro quo. There was no question of that," Mukherjee said.Asked if he would insist that the IMF choose its next leader from an emerging market country five years from now, he said it was too soon to predict anything, adding: "The world may undergo many other changes; therefore, let us wait for that."Mukherjee was in Washington for annual economic talks with US Treasury Secretary Timothy Geithner. Both sides pledged to deepen cooperation, but did not announce any concrete actions that would boost access to India's growing market for US firms.Mukherjee said the lack of specific actions was due to the need for legislation that is taking time to win the support of multiple parties. Major legislation for pensions, banking and insurance reforms are still pending."I told the secretary and other members (of the U.S. delegation), in India we consider reforms as a continuing process," Mukherjee said in reference to Geithner."We do not have a simple, single-party majority in legislature and in parliament. We shall have to carry other people with us and we are exactly trying to do that," he added.Praise For Central BankerMukherjee, an influential cabinet member, declined to say whether RBI chief Duvvuri Subbarao would be appointed to another term as governor of the Reserve Bank of India when his term ends in September."He's a good governor," Mukherjee said, but added that it was too soon for Prime Minister Manmohan Singh to decide on another term for Subbarao.In addition, Mukherjee said India should be able to maintain its fiscal deficit targets despite a cut in customs and excise duties that will result in a revenue loss of 490 billion rupees ($10.9 billion) this year.The government has been banking on strong growth to meet its deficit target of 4.6 percent of gross domestic product for the 2011/12 fiscal year."We will be able to maintain the fiscal deficit target," Mukherjee said. "Partly we will try to make up (losses) through revenue buoyancy, better compliance and we will also have some sort of expenditure controls." (Reuters)
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New Jersey-based Becton, Dickinson and Company (BD), the century-old medical device giant, is not new to India. Its first office in the country was set up in 1995. BD's India revenues, which topped $100 million in the past year, come from selling syringes, diagnostic kits, lab equipment and related gear used in healthcare. As growth prospects get bleaker at home, the company is looking for new growth avenues in emerging markets, and India, with its Rs 5,750- crore medical technology market, looks attractive. Now the $7.1-billion giant wants to ramp up its development and manufacturing operations in India — it is shifting production from Sweden to India. Company chairman and CEO Edward J. Ludwig speaks to BW's Noemie Bisserbe about the company's strategy and plans for India.The medical technology market in India is growing fast. But its needs are very different from that of the West. How are you addressing these needs?Let me go back. We have been in India since 1995, and our first efforts, frankly, were not that successful. I don't think we had a good sense of what the market needed. The need for safe injection, safe blood collection and evidence-based therapy are universal. But the way these are delivered here — through a combination of external forces such as NGOs, a federal policy level and a state policy level —is unique.We initially had one basic product — a two-piece syringe that was successful in southern parts of Europe. We moved manufacturing from Spain to India and started selling it here. But it turned out that the market here wasn't really a two-piece market, but rather a three-piece market. The two-piece doesn't have the rubber stopper and many markets prefer that for whatever reasons; but not this market.So, first we had the wrong product. Secondly, we exported a lot of expensive equipment that we paid duties on. So, it was not cost competitive. We can look back now and say we should have known better, but sometimes you just have to move in and learn from experience. FAST FACTS Established1897CEOEdward J. LudwigHeadquartersNew JerseyRevenues$7.1 billionEmployees29,100BusinessThree divisions: BDMedical, BD Diagnostics and BDBiosciencesKey ProductsNeedles, syringes, other medical devices and diagnostic systems, and reagents We are now developing products that are lower priced. Though they are still of very high quality, they may have a few features less and are easier to use. We are going to take a couple of years to fill in the pipeline of products here. We do not do any research and development yet in India. This situation will change in the next five years, and we will be doing more development in India. We will also expand our plant. It has some spare capacity, so we are moving some manufac-turing lines from Sweden to India. We will then export the products back to Europe.Is there a larger plan to make India a manufacturing hub?Not immediately. But over time, we will continue to expand. So, maybe over a period of 10 years, we will call India a hub for certain products.What is your pricing strategy for India?The simple thing is that we do not determine our prices. This is a very competitive place, and the market determines prices. We just have to make sure that our cost structure and value proposition is appropriate, so that we can get acceptable returns.Indian companies have now started developing indigenous devices at an affordable cost. How do you look at this new competition?There is a lot that we can learn in India. If you look in this building, you will find that most people who work here are generalists. When we start thinking about developing products here, we will have to start getting people with a medical background who understand technology. They will scan the market and look for such companies. Most innovations come from smaller companies. So we can partner with them or at some point, think about making acquisitions.Clearly, this is a threat. But I like to think of it as more of an opportunity too. We have always been very big on partnering with small entrepreneurs and licensing. What we have to offer is a global standard. Very often a small company has a great idea, but it does not have the resources to scale manufacturing or hire 200 sales executives. That is where synergies come in. We could acquire these companies or may partner with them for production and sales.What role can mobile and rapid diagnostic tools play to improve quality of care in India?Rapid diagnostic has been applied successfully in a number of settings, so I do not see why it could not be applied here as well. Probably, the only rapid test in India today is for pregnancy, although there are some tests for flu. We don't yet have adequate tests for diseases such as TB. Technology is struggling to keep up with the need.How important a market is India for you?The absolute size is not great. We are under $100 million revenues, but going forward, emerging markets will gain more importance, mainly India and China. Until two or three years ago, India was part of what we called Asia Pacific. Today, it reports directly to the head of international operations. We think of India as a region all by itself. India has the same status in our company as Europe. Our Indian business is growing at 20 per cent a year. In many parts of the world, including the US, we are holding our expenses flat because of economic realities. But in India, we are adding 100 people a year. We have a team of 450 people in India — twice the number of people we had three years ago. We are putting resources where we think the greatest opportunities are.(This story was published in Businessworld Issue Dated 12-04-2010)
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