Indian Economy - News & Updates - Archive

[Bushroda]

Racing ahead
4 Aug, 2007, 1437 hrs IST,

MUMBAI: Mumbai’s population is multiplying every day and this has led to the creation of 'Navi Mumbai' to support the burgeoning numbers; Panvel forms a small part of this twin city. From being a quiet rural sylvan retreat decades ago to now becoming one of the strongly emerging towns in Mumbai, Panvel has witnessed a remarkable transformation.

Originally known by a single name, Panvel today has branched out into Panvel (old), Panvel (new) and Khandeshwar with the former coming under the jurisdiction of Panvel Municipal Council and the latter two under CIDCO.

One can see a clear dichotomy, as Old Panvel even today remains quite unplanned as against New Panvel and Khandeshwar which are well planned and maintained by CIDCO. Nevertheless , Old Panvel still enjoys unperturbed loyalty of people who have been staying here for ages. New Panvel and Khandeshwar have more influx of outsiders as they are newly developed areas. All three, despite their individual differences, are racing ahead on the growth charts.

Reveals Ms. Vidya Pradhan, a teacher and an Old Panvel resident for last 22 years, "When I came to Panvel, it was very sparsely populated, almost a jungle with less civilization and lot of fields around. The scenario has completely changed. There is more construction happening, more buildings, more shops, showrooms and theatres. The service class is emerging and money is pouring in. Who would imagine a Nike or Adidas coming to Panvel, but today we have it all!”

Panvel has become a rewarding destination for builders too. Says an enthusiastic Vilas Kothari, proprietor of Neel Group, "When I entered the construction line in 1992-93, there were only CIDCO type constructions in New Panvel which were either low quality or had problems with actual possession. There was need for private construction by industrial areas like Taloja, Nagothane, JNPT and ONGC. Being born and brought up here I had first-hand knowledge about the situation which helped in creating a product catering to actual customer demands."

"Also after Vashi, Nerul, CBD and Kharghar, people were thinking what would be the next big thing? The answer was Panvel. To rates which once ranged from Rs. 500 to Rs. 700 ten years back, Panvel in the last year has seen a tremendous gallop in property prices which now range between Rs. 2000 to Rs. 2500 for Old Panvel and Rs. 2500 to Rs 3000 for New Panvel."

With upcoming premium projects like Neel Splendour in Khandeshwar and Neel Park in Old Panvel, Kothari remains bullish on Panvel’s potential.

Property consultants too are happy with the way the city is growing. Explains Mr Sameer Kelkar of Prashanti Consultants, "In the last year, prices have seen a three-fold increase. The reason is a lot of related development. The Reliance SEZ, Panvel Railway Terminus and the much-awaited International Airport have led to the property price escalation."

"Panvel has become a central place. Both Mumbai and Pune enjoy flawless connectivity with Panvel. The Konkan Railway connects South India to Panvel. So a lot of South Indians prefer living in Panvel. Panvel also serves as a major junction for many outstation trains. Basic infrastructure like educational institutions, hospitals and markets is well in place. And when compared to Vashi or Nerul, Panvel still seems quite affordable to the buying class. So the demand is soaring," he adds.

Tarun Raina, a resident, shifted to New Panvel five years ago and is quite happy with his decision. He shares, "After Dad's retirement we decided to shift from Khopoli. Panvel was near and also rapidly developing. We chose New Panvel because we found it more planned as against Old Panvel, which looked saturated. Panvel has good business potential and we wanted to start a business, so we finally settled with a house in New Panvel which we got for a price three times cheaper than today. And ever since, Panvel has been flourishing both in social development and on the business front."

Mr. Rajesh Prajapati of Prajapati Builders shares his experience. He says, "Earlier , mostly outsiders preferred buying here for investment reasons. The user -investor ratio was 40:60. Initially financial parameters were of paramount importance and the in-house buyer would not readily spend on classy apartments. Today the ratio has reversed, income levels have risen and so Panvel from a destination of economy has turned into a destination of choice, resulting in better returns."

He makes a striking revelation saying that Old Panvel should be renamed as the word 'Old ' conveys a passive meaning and this affects the demand. "To sell a product today, one needs to be more careful with the packaging. The moment one says Old Panvel, the buyer feels resentful. The ‘feel good’ factor is missing here which restrains the buyer at times from buying a place. And so it's self explanatory why New Panvel is doing better than its counterpart."

The areas around the railway station and 'Takka' area are gaining demand due to proximity to the station. Also many builders are coming up with new projects. The concern today is that fresh land is no more available in Panvel. Builders are now acquiring old plots from owners and converting them into apartments as the demand is increasing.

While most are piggybacking on soaring property prices, there are a few who choose to differ. Say Mr. Ramesh Majethia of Milkat Estate Consultants, "The last time Panvel saw a similar price hike was in 1995 when private construction was newly entering the market. Today prices have hiked again but the rise in interest rates has lead to reversal in prices. Prices have already fallen by Rs.200 to 300 in the last two months now standing at Rs.1800 to Rs.2200. While on the commercial side, prices are high at Rs.10,000 to Rs. 12,000 on the main street and Rs. 3,000 to Rs. 4,000 for shops in bylanes."

And Panvel is up for more. The builder fraternity collectively highlighted the upcoming Township Projects around the periphery of Panvel within a radius of ten kilometers. Builders like Akruti, Hiranandani, DLF will jointly handle these projects, which would be spread over more than 100 acres. Kalpataru Builders is already building a miniature version of a township project at Old Panvel, the first of its kind.

Speaking on future projects, Mr Prakash Patil, administrative officer, Panvel Municipal Council (PMC),revealed, "We are developing a new 'Waste Plant' along with CIDCO at a village called 'Chad ' near Taloja. This will be the dumping ground for garbage wherein the garbage will be segregated and put to use accordingly."

Development brings in many side effects . One hopes that in the pursuit of a technically prudent environment, the quality of life is not compromised.

 

[Bushroda]

Monsoon mania draws Arabs
5 Aug, 2007, 0457 hrs IST,Ranjeni A Singh, TNN

NEW DELHI: Roll out the red carpet even if it’s raining hard. And don’t forget to put away the umbrellas as more Arabs are coming to enjoy the Indian monsoon. In fact, their fascination for rains has resulted in tourist arrivals from the Middle East region clocking 18 to 20% growth every year. In 2006, the growth was 18%, while this year looks positive and set to break this figure.

Hordes of tourists come from Middle East countries come to witness the drenching monsoon rain in India, a phenomenon never seen in desert climates. The UAE has consistently been India’s largest market from the region, with over 50,000 arrivals last year. Iran contributed over 20,000 visitors, followed by Oman and Saudi Arabia with just over 18,000 each. Other strong markets were Turkey, Bahrain and Kuwait. And we are not talking about the expat Indians but native Arabs.

“The Middle East is very important to India’s tourism industry and according to the latest statistics, tourism flow from the region has been increasing every year,” says K L Das, India Tourism Office regional director in Dubai.

So what’s attracting the tourists to India? Actually, the holiday season in Middle East coincides with the monsoon hitting Indian shores.

Moreover, India is the closest rain destination and it’s easier to come here “as the West’s obsession with security makes it difficult for these tourists to go there,” says Radhika Shastry, MD, Group RCI, a timeshare vacation company. Besides “cultural similarity and food act as motivators,” says Das, adding “the time-spend by Arabs is also the longest compared to other inbound tourists.”

Taking advantage of the Arab penchant for the monsoon rains and Ayurvedic treatment, India aggressively marketed itself as a monsoon destination in the Arab Travel Mart held in May this year. Many Indian states took part in the four-day event, including Kerala, J&K, Goa, Uttarakhand, Assam, UP and Madhya Pradesh.

In fact, India expects to receive more than 20% tourists from the UAE this yearLast year, 149,568 people from Arab countries visited India — an increase of 18% from 2005, say tourism ministry officials, adding “we had about 55,000 visitors from the UAE in 2006. The arrivals from other countries in the region also look optimistic.”

Seeing the response, the Indian tourist industry has created tours and activities aimed at rain-starved Arab visitors.

“Over the years, the number of international tourists visiting India during the monsoons has increased almost two-fold,” says Sachin Ramphal, senior manager, Thomas Cook. Says Arup Sen, executive director, Cox & Kings: “West Asia doesn’t have snow-capped mountains, lush valleys, sparkling streams of rivers and the wonder that is monsoon.

Many of them see this for the first time in their lives when visiting India.” Interestingly, the average spend of a West Asian tourist is twice as much of a South-East Asian, at $ 150 per person per day in the high-end category. “Tourists from West Asia travel in families and that too large extended families.

They comprise rich customers as there is hardly any concept of middle class in West Asia. They prefer staying in luxury hotels, says Sen.

Seeing the lucrative market, even the states are getting aggressive. Besides Kerala and Goa, Madhya Pradesh, Sikkim and Meghalaya are also drawing up plans to woo the Arabs. UP has already picked up the ‘Chasing the Monsoons’ campaign to woo tourists from the Arab countries.

 

[Bushroda]

Indian abroad tourists to double.
Saturday, 4th August 2007
Olivier Hofmann / Euromonitor International, Hong Kong

By 2010 the number of tourists travelling from India is expected to more than double, therefore tour operators are preparing to take advantage of this boom in the Indian travel market.

The total number of outbound travellers is set to reach 16.3 million in 2011 alone.

This dramatic rise in the number Indians travelling abroad, 132% over 2006 to 2011 according to Euromonitor International's latest research, is being driven by rising disposable incomes, more affordable holiday options and the growth of low cost carriers, enabling more Indians to travel abroad.

Budget airlines drive outbound travel

The growing strength of low cost carriers in India is one of the key factors boosting the Indian outbound travel market. Clement Wong, Travel and Tourism Account Manager comments, “Indian tourists now have more choice and options for travel outside the country, thanks to the continued growth in low cost carriers. At times, it is even for cheaper to travel to other countries in South East Asia than to other regions within India”.

Air Deccan, the first low cost carrier to operate in India, is currently the most prominent in the market. However, SpiceJet and Go Air have also joined the scene and the number of players looks set to rise.

With departures by air accounting for more than 98% of all departures from India, the air travel market is clearly on a high. In 2006, sales for low cost airlines grew by 115% in India, storming ahead of the industry average growth of 19.5%.

Singapore is currently benefiting from the bulk of Indian outbound tourism; however, as foreign travel becomes more affordable many Indian holidaymakers will set their sights further afield.

Countries fight for the Indian traveller

The US is predicted to be the most preferred destination for Indian travellers by 2011, according to Euromonitor International, receiving 10.2% of outbound tourists from India. The strengthening of business ties and a large number of Indians residing in the US will be the main drivers behind this trend.

The growing number of Indian tourists is now being more widely recognised and countries across the globe are increasingly trying to attract Indian tourists. A number of countries, including Ireland, the Netherlands, Spain, Poland and South Korea, have already opened tourist offices in India to directly target Indians who want to holiday abroad. Euromonitor's Clement Wong comments, “Indian tourists are big spenders and as such are a boost to the tourism revenues of any country”.

Brand new forecasts from Euromonitor International show that outgoing tourism expenditure from India will grow by over 25.7% between 2006 and 2011 to reach a value of US$21 billion by 2011.

 

[Bushroda]

Aperto Named #1 WiMAX Company in India by Voice&Data Magazine
Written by EditorsChoice
Friday, 03 August 2007

Aperto® Networks, builder of the world’s most advanced WiMAX solutions for fixed, portable, and mobile applications, today announced that it has been named as the Top WiMAX Company in India by Voice&Data magazine. The honor was awarded at the 8th Annual Voice & Data 100 Awards on July 18 in New Delhi.

New Delhi, India (Vocus) July 19, 2007 -– Aperto® Networks, builder of the world’s most advanced WiMAX solutions for fixed, portable, and mobile applications, today announced that it has been named as the Top WiMAX Company in India by Voice&Data magazine. The honor was awarded at the 8th Annual Voice & Data 100 Awards on July 18 in New Delhi.

“This is a tremendous honor for Aperto and our WiMAX Forum® Certified PacketMAXÔ solution,” said Manish Gupta, Vice President of Marketing & Alliances for Aperto Networks and WiMAX Forum Board Member. “It recognizes how broadly our award-winning technology is being adopted in India, one of the top WiMAX markets in the world. Aperto takes this market very seriously and has successfully deployed its solutions with several large service providers across India. Earlier this year we expanded operations in India, opened a new office in Bangalore, and set up two subsidiaries employing teams in engineering, marketing, product management, sales, and sales support.”

V&D 100 is the most comprehensive survey on Indian communications industry. It covers both equipment as well as services industry. It is the most trusted and widely used survey for those seeking statistics on Indian communications. It is also the most comprehensive, as it covers a wide range of segments including A/V conferencing, fixed phones, mobile phones, GSM handsets, broadband, fixed wireless phones, CDMA handsets, modem, network integration, network management services, structured cabling, network storage, router, switch, WLAN, T&M, telecom cables, transmission, telecom software, telecom turnkey, voice solutions, fixed services, NLD, ISP, cellular, VSAT, wireless infrastructure, ILD, radio trunking, independent infrastructure provider, enterprise equipment, telecom services, VAS, and telecom equipment.

"WiMAX could do for Internet connectivity what mobile phones did for voice, though WiMAX is currently less about mobility than about rapid deployment and penetration," said Prasanto K. Roy, Chief Editor at CyberMedia Publications.

"With the growing demand for broadband connectivity from urban homes and small/midsize businesses, WiMAX deployment is beginning to take off in India. The country could become one of the largest WiMAX markets in the world and we expect more investments in the sector.”

The Aperto family of products delivers the critical elements required to extend wireless broadband services to a wide range of users—ranging from large enterprises and public-sector organizations to multi-tenet buildings and residences—using a single, standards-based platform. The company’s flagship product, the PacketMAX 5000 base station, is also the only carrier-grade base station that can support and operate both the IEEE802.16-2004 and IEEE802.16-2005 WiMAX standards simultaneously.

About Aperto Networks:

Aperto Networks helps service providers worldwide profitably deliver affordable wireless voice and broadband services by building the world’s most advanced fixed and mobile WiMAX Forum Certified base stations and subscriber units. Aperto fundamentally changes the economics of delivering voice and broadband services through IP-rich, point-to-point and point-to-multipoint networks, allowing carriers to offer a wider variety of services to more customers using less equipment. Its carrier-class WiMAX technology offers industry-leading subscriber density, quality of service, ease of use, and reliability. Aperto is a founding board member of the WiMAX Forum, as well as a founder and lead contributor to IEEE 802.16 and the ETSI-BRAN standards. Serving more than 400 customers in 90 countries, Aperto Networks is based in Milpitas, California. For more information, visit us at www.apertonet.com.

About CyberMedia:

CyberMedia is South Asia's first and largest specialty media house, with thirteen publications (including BioSpectrum, Dataquest, PCQuest, Voice&Data and Global Services) in the infotech, telecom, consumer electronics and biotech areas, and is a media value chain including Internet (www.ciol.com), events and television. The group's media services include market research (IDC India), job board (CyberMedia Dice), content management and multimedia, and media education. Voice&Data is CyberMedia’s flagship magazine for the telecom sector.

“Aperto Networks” is a registered trademark of Aperto Networks. The Aperto Logo and “PacketMAX” are trademarks of Aperto Networks. All other trademarks are the properties of their respective owners.

 

[Bushroda]

`Unbranded` brands
Madhukar Sabnavis / New Delhi August 3, 2007

There is something to learn from the 'non-product' brands around us.

What is common to Himesh Reshamiya, Harry Potter, the Wimbledon and the Taj Mahal? An odd collection, isn’t it?

Himesh Reshamiya—the man with the cap and the nasal voice. He has been the butt of jokes for many music connoisseurs but his film Aap Ka Saroor, released a few weeks ago, has been one of the few box office hits of the year. His music plays over and over again across radio channels—a quiet acceptance that there is an audience for him—and that’s beyond ‘rickshaw’ drivers. His hits have come from singing for stars and in movies that are not top notch in the industry. While the debate may rage on whether he will survive the test of time—the fact remains for the last two years he has been the star in the industry. His presence at talent hunts, as a judge, on television and his latest invitation to a chat show that boasts of only ‘A’ grade stars are further affirmation of this status.

The Taj was recently voted as one of the seven wonders of the world. It is a fact that we are a country of one billion people, where English is widely spoken and awareness of issues is high. The media played an active role in garnering the required votes. However it cannot be denied there is something enigmatic about the Taj. Besides it’s marble splendour, it has its own look in different light—which makes it an architectural wonder. And add to it, centuries ago, it was a monument built to a universal emotion—love—making it even more enigmatic. Not surprisingly, even as the image of India has changed from one of “elephants and snake charmers” to “infotech and knowledge”, the Taj as a symbol of India stood the test of time. No foreign tourist’s visit to India is complete without a “darshan” of the Taj!

Is the game bigger or the players bigger? Who makes whom? It remains a chicken and egg question. While golfer, tennis stars and cricketers rebelled in the 60s and 70s to get their pound of flesh, the fact remains that today it is stars that draw audiences and the money. However, the Wimbledon has managed to be different. The finals in the first week of July—an annual event—the only one staged at the Wimbledon courts every year—continues to be the Mecca of tennis. Tickets are still sold for the day—for a court—and people throng to it hoping to see the top seeds but satisfied with watching a final even if a lesser player reaches the final. The Venus Williams-Bartoli final was in true competitive spirit a shadow of a fight, but the match has not diminished the charm of the tournament. Next year, there will be the same crowds, the same wait, the same premium pricing and same energy—not to forget the strawberries and creams.

Potter mania seized the world in July. And this is particularly fascinating. The world has moved to the Internet and people are already talking about the third screen—TV, computer and now the mobile. Kids and technology go hand in hand—and in this context the printed word seems archaic. Yet writer J K Rowling could create such hysteria with her character Harry Potter (and his friend Ron and Hermione) that across continents her seven edition of story generated such excitement that kids booked their copies in advance, stood in queues to be the first to get their copy and sat and read it religiously without demanding a Net version or a film production! During this period, one began to wonder whether reading was dead or dying.

So what’s common to these four phenomena besides the fact that they were in the news in July? Deep down they manage to find connects with specific target groups, which makes them newsworthy. Whether it is Himesh Reshamiya with the youth or Potter with kids or the Taj with foreign tourists or the Wimbledon with tennis fans, these are brands in their own right. The Taj’s reputation has been built over centuries, the Wimbledon’s over the last 125 years, Potter’s over the last decade and Himesh’s over the last couple of years. There is something about them that can be inspiration or learning for “product” brand builders—because none have been overtly advertised. Consciously built, maybe! They are “unbranded” brands.

What interesting lessons can we draw from these for branding?

First, there is a need to be different and stand out—especially in a cluttered market. Like him or hate him, Himesh Reshamiya has a voice distinctly different—add to it his look and small town roots, these make him a “character”. Harry Potter is a school kid with a difference—it’s about spirits and ghosts and a mystical dark era that makes him vulnerable and daring together—a character so different from what one has seen in kid stories to date.

Second, there is a need to build myths and stories to create enigma. The Taj has its myth in its origins and it has been guarded. Yet over the years new stories have developed—some true and some not so true—”Was it a Rajput creation?”—these have added to its mystique and charm.

Third, the need to invest time: strong brands don’t happen overnight. The Taj and the Wimbledon have gone through the test, the jury is perhaps still out on Potter and Reshamiya. Even the story of Potter began to emerge post Rowling’s third novel and seems to have reached a crescendo in the seventh.

Fourth, brand custodians need to hold something dear and inseparable to a brand. The Wimbledon is what it is today because some champion has decided quite doggedly to safeguard some rituals—while evolving in others—no coloured clothing, play on grass, the timing in June/July, calling the fairer sex “ladies” not women and of course the strawberries and cream—that keeps it special for tennis. Retaining the purity is critical.

Finally, the biggest creator of a brand is its consumers. Not so much in their consumption of the brand but in valuing the intangibles of it and keeping the “legend” going. The challenge is to uncover and understand what those intangibles are to fuel it to keep it going. The Taj and Wimbledon are prime examples of this—expectation of “consumers” year after year are met and often exceeded that get them to become spokespersons and champions.

Something worth thinking about.

 

[Bushroda]

A launch pad for lucrative career
Special Correspondent

KOCHI: Kochi, by hosting The Hindu Opportunities Job Fair on August 18 and 19, is joining the big league of other metro cities in providing a platform for ambitious youngsters to launch their career dreams, especially in the Informa tion Technology sector.

In recent years, The Hindu Opportunities Fair has provided a ready platform not just for first-time job seekers but also for those looking for better prospects. For companies that recruit in large numbers, the fair is the right plac e as many hopefuls can try their luck at the stalls during the two-day event.

This is the first time The Hindu Opportunities Fair is coming to Kochi. The fair is going to be held under the aegis of The Hindu with Cognizant as presenting sponsor, SFO Technologies as associate sponsor, and AP TECH as training sponsor. The Raymond Shop, Kochi, is the grooming partner and TMI First, the technology partner.

Some of the participating companies are Allianz Cornhill Information Services P. Ltd, Allsec Technologies Ltd, Aryans Infoway P. Ltd, Assyst International P. Ltd, Calpine Technologies P. Ltd, Cordiant Technologies, Citigroup Information Technology Operations, Genpact, Hages Business Solutions Pvt. Ltd., IDSi Technologies India Pvt. Ltd., Ind Sigma Infotech Pvt Ltd., Intelenet Global Services Pvt. Ltd., KGISL, Larsen & Toubro Ltd., Outsource Partners International, Qfirst, SlashSupport India P. Ltd, Sutherland Global Services, Tata Elxsi Ltd, Visual Graphics Computing Services, Wipro Technologies, Wrench Solutions P. Ltd, Zerone Consulting P.Ltd..

They will be looking for the right candidates for their requirement. The fair will be held at Assisi Vidyaniketan Public School, Chembumukku, Kakkanad, Kochi , from 10 a.m. to 4 p.m. on August 18 and 19.

 

[Bushroda]

Challenging first quarter, managed well
http://imageshack.us
Srividhya Sivakumar

Allaying market fears of a reversal in fortunes, India Inc has put out a robust earnings card for the June quarter. Despite last year’s bigger base, Corporate India scored a 17 per cent increase in revenues, while earnings grew about 36 per cent, year-on-year (inclusive of the ‘other income’ component, which was up a substantial 39 per cent).

While there has been a perceptible slowdown in sales growth, largely due to base effect, growth in earnings has remained stable, thanks to the improving operating efficiencies of India Inc. On a sector-wise break-up, while usual high-performers — construction, telecom and banks — continued their winning streak, sectors such as automobiles and engineering and technology recorded a slowdown in earnings’ growth (because of the rupee effect).

Among other sectors, while power companies posted firm numbers, sugar companies slipped into the red. The findings in this article are based on the numbers reported by about 1,400 companies for the June 2007 quarter. Here is a brief overview of sector-wise performance for April-June.

Double-digit growth for banks: Banks had a good quarter, with public sector banks (PSB)faring better than their private counterparts. While PSBs reported a near 48 per cent growth in earnings, private banks witnessed a 35 per cent incr ease. Given the robust loan growth over the year, it was no surprise to see the interest income component of most banks swell.

While interest income grew 50 per cent for private banks, public banks, on an average, recorded a growth of about 34 per cent. Among the private banks, Yes Bank and South Indian Bank more than doubled their profits. Interestingly, while all the banks recorded double-digit growth in earnings, IDBI reported flat earnings growth.

State Bank of India, the country’s largest bank, reported 78 per cent earnings growth, backed by a 28 per cent increase in total income. While the impressive performance could be due to last year’s low base, the overall earnings card was marked by stable net interest margins and an improvement in asset quality. The write-back of provisions in the AFS (Available for Sale) category also spurred earnings.

ICICI Bank, on the other hand, reported a modest 16 per cent increase in net interest income, a result of the contraction in net interest margins. While the bank’s earnings were up 25 per cent, the increase in non-performing loans rekindled concerns on asset quality.

Margin pressures in engineering: Engineering and capital goods companies continued to chip in with firm revenue numbers on the back of buoyant demand trends from user industries, but margin pressures remained. The sector reported a 25 per cent growth in revenues, but higher input costs and the subsequent contraction in operating margins led to a slowdown in earnings growth. Future performance, however, may rest on the timely commissioning of capacity expansion plans by companies in this sector.

L&T reported 140 per cent growth in earnings (helped by forex gains on overseas loans) on the back of a 30 per cent growth in revenues. Among other companies that put up a laudable performance were Praj Industries, Bharat Bijlee, HEG and Texmaco.

Construction and realty companies, despite slower growth in revenues, almost doubled their earnings. The lower revenue growth could be attributed to a sharp increase in interest rates (for real estate companies). Most real estate companies recognise revenues on a percentage completion basis of their projects. Earnings, therefore, got a boost from the booking of revenues from projects sold in earlier quarters at higher prices. Earnings volatility for companies in this industry is inevitable given the accounting system followed. Positive signals from telecom: Led by strong subscriber growth, telecom companies yet again notched up a good score, despite pressure on realisations.

The last quarter was marked by cuts in international call rates and roaming charges, reduction in cost of pre-paid lifetime schemes and introduction of low-cost handsets; as mobile operators stepped up efforts to deepen the market.

These efforts translated into healthy monthly additions in customers. For June 2007 monthly additions reached a high of 7.6 million, with key players gaining significant market share.

Bharti Airtel, driven by 54 per cent increase in revenues, saw earnings surge by about 71 per cent. Reliance Communication, backed by a 33 per cent growth in revenue, more than doubled its profits.

Subscriber churn and declining average revenue per user (ARPU) marred the growth picture for MTNL.

Mixed bag from cement: Cement companies reported a lower level of earnings growth, at 50 per cent, on the back of a 25 per cent rise in revenues. On a sequential basis, however, earnings grew by about 30 per cent, with improved realis ations leading to a rise in growth percentage.

Mysore Cements, helped by a high ‘other income’ component and zero debt status, reported a seven-fold increase in earnings. India Cements and Ambuja Cements reported healthy growth in profits, while ACC witnessed a slowdown in earnings growth.

Going forward, while the short-term scenario appears promising, given the firming prices and buoyant demand, the outlook for the sector over a two-year time-frame is uncertain.

Incremental capacities being installed in the next three years create concerns about pricing power. This apart, with the MRTPC (Monopolies and Restrictive Trade Practices Commission) probing the sector for price collusion and cartelisation, regulatory risk may remain a key concern for the sector.

Tough quarter for software: Software companies disappointed as a sharp appreciation in the rupee trimmed revenues as well as margins. Contraction in operating margins dented earnings growth, which was up just about 30 per cent. This is almost half the growth rates of the industry last year.

Top-tier companies such as Infosys, TCS and Wipro saw their operating margins come down by about 2-4 percentage points, quarter-on-quarter. However, given that most companies are now actively hedging their forex exposures, other margin levers such as billing and utilisation rates could offset the rupee effect.

This apart, strength in demand, improving offshore revenue contribution and subsidiaries’ profitability may cushion the firms, to some extent, against any further impact from rupee appreciation. While profitability for Tier 2 companies was under pressure, companies such as KPIT Cummins, 3i Infotech and Rolta India registered impressive numbers.

Headwinds put brakes on automobiles: A hardening interest rate scenario trimmed sales for auto companies — the commercial vehicles and passenger vehicles segment witnessed a modest growth in domestic sales while three-wheeler sal es reported lower growth.

Maruti Udyog scored high, with about 26 per cent rise in revenues and 35 per cent growth in earnings, backed by higher realisations and stable margins. Tata Motors reported just about 5 per cent rise in revenues.

The two-wheeler industry, however, seemed to be hit hard by interest rate headwinds. Lower motorcycle volumes led to a decline in revenues of TVS Motor and Bajaj Auto.

Hero Honda, however, managed a revenue growth of about 4 per cent backed by higher realisation and improvement in its product mix.

Powering ahead: Companies in power generation and supply had an impressive first quarter, driven partly by higher tariffs, partly by an increase in power generation and consumption and to some extent by “other income”.

This apart, growth in earnings may also have been driven by increased load factors in the quarter, resulting in a higher contribution to earnings. The sector recorded 44 per cent increase in earnings on the back of a 20 per cent rise in revenues and a 39 per cent increase in other income.

Reliance Energy recorded a 41 per cent rise in revenues on the back of higher electricity tariffs. Earnings, however, got a lift from the 103 per cent rise in ‘other income’ component. Other companies, such as Tata Power, NTPC and CESC, also reported firm numbers.

The big picture

Despite areas of concern surrounding the rupee’s effect on technology companies and the impact of interest rate hikes on asset purchases, India Inc largely managed to better consensus expectations on earnings this quarter.

Import-intensive businesses received help on their margins from a rising rupee; but the three-month period also brought to light the ability of large and the emerging large-cap companies to build on a high base and actively manage challenges to their margins from firm input prices and interest costs.

The quarter was however, not without its grey areas. One, with a significant proportion of companies registering a surge in “other income” (in many cases, from forex gains), the quality of earnings witnessed some deterioration. Further, mid-cap companies witnessed a stark divergence in performance, even within the same sector.

All this underscores the increasing role that stock selection will play in the performance of individual portfolios in the days ahead.

 

[Bushroda]

Tata Motors set to drive in world's largest bus plant
4 Aug, 2007, 0122 hrs IST,Chanchal Pal Chauhan, TNN

NEW DELHI: Tata Motors is setting up the largest fully-built bus plant in the world, which will make it one of the leading global bus manufacturers. The company is currently scouting for a location in southern India.

Tata Motors managing director Ravi Kant said, “We are in the process of setting up an integrated bus-making facility, which will perhaps be the largest of its kind in the world. The proposed plant will come up somewhere in south India shortly.”

According to a source in the automobile industry, Tata Motors has identified Karnataka and Goa as possible locations for the proposed facility, but is yet to finalise the location. The proposed plant is likely to come up in 2008.

The company will initially have an annual capacity of 7,000 fully-built buses and luxury coaches, for which the Tatas have entered into a joint venture with Brazil-based Marcopolo—the largest mass manufacturer of fully-built buses in the world. The joint-venture controlled by Tata Motors will entail an initial investment of Rs 200 crore.

The second phase of expansion will see the entry of Europe’s largest super-luxury bus manufacturing company—Hispano Carrocera of Spain—where Tata Motors will hold 21% stake with an option to acquire 100% in future. Tata Motors will use Hispano Carrocera’s expertise to manufacture ultra-luxury buses targeting Europe, the US and other developed markets.

Both ventures will tap the growing demand of fully-built luxury buses and coaches in the domestic as well as global markets. The scaleable facility will complement the current bus-making capacity of Tata Motors, which sold around 28,000 units in the last fiscal year.

“We will be offering a complete range of fully-built passenger vehicles, right from the 7-seater Magic to the 54-seater fully-built buses. Marcopolo is a mass-volume maker of fully-built buses while Hispano Carrocera is Europe’s best luxury bus maker. This strategic alliance (with Marcopolo and Hispano Carrocera) will give us access to their design and technological capabilities to fully tap the growing potential of this segment in domestic and export markets,” said the Tata Motors spokesperson.

The company is chasing a sales target of 50,000-60,000 passenger carriers in the next few years to emerge the largest player in terms of units, ahead of leading bus manufacturers like DailmerChrysler and Volvo.
Tata Motors has already launched fully-built small passenger vehicles—Magic and Winger—based on the one-tonne Ace platform in June this year.

It also has a 10% stake in Automobile Corporation of Goa, which manufactures bus bodies. Tata Motors, with a 49% marketshare, is a leader in the 54,000-unit domestic bus market.

 

[Bushroda]

'Seeds of India's rise as IT giant were sown in 1947'
S Ramadorai

The seeds of India's rise as a global powerhouse in information technology were sown way back in 1947, as Independence nudged education into the spotlight and led to the establishment of new universities, engineering colleges and research and higher education institutions.

These initiatives resulted in the availability of skilled technology and engineering professionals, many of whom went overseas in search of green pastures and some of whom came back to clear the forest to create new and greener pastures within the country.

In the global arena, the IT sector has been a catalyst to re-engineer India's image from one built on past clich�s like palaces and poverty. It has been the ambassador of emerging India and helped create a new brand image for the country associated with skilled and hard-working professionals.

With hindsight, looking back at the early days of the IT industry in the late 1960s and early 1970s, it seems a near miracle that the industry even took root, given the complete absence of demand for technology in India and strong foreign currency regulations that forbade import of computers and software.

Indeed, our economic past, characterised by scarcity, has been the driver for today's success. It forced us to be more efficient and do more with less. Not only did we get free lessons in optimising our resources, but it also challenged us to find creative solutions, and then test these in a tough operating environment. It was virtually like getting a free MBA!

What started with small programming jobs in the US, moved to larger projects being done out of India, until an entire ecosystem of talent, academia, training developed into a $30 billion industry. One of many engineers who left California for India and then came back to sell an idea was yours truly. I set up TCS's [Get Quote] US operations in 1979, having returned after my masters at UCLA in 1972.

Now, 'Made in India' has become the benchmark for software and services in the 21st century, just like 'Made in Japan' was the success story in manufacturing, automobiles and consumer electronics in the late 20th century. It is now a brand that epitomises efficiency and innovation that not only our manufacturing sector hopes to emulate but also has attributes that our dominant agriculture sector can ride on as it begins to supply flowers, fruit and grains to global kitchens.

If Indian IT learnt to walk in the West, it is now learning to run in India. Technology is helping bridge the rich-poor divide; distance education, telemedicine and micro-finance are helping achieve this.

Less surprising, perhaps, is that India is creating innovative products aimed at the bottom of the economic pyramid. So products like a Rs 10,000 PC, a refrigerator built to survive voltage fluctuations and, of course, the Rs 100,000 car are all unique, indigenous, cost-effective solutions that could be exported.

We are also deploying technology to ensure that citizens can avail of government services remotely without having to deal with India's mammoth bureaucracy; the current government's new employment initiative for families living below the poverty line uses TCS technology to ensure that the poor get the benefits of public spending rather than corrupt middlemen, and for one of India's leading children's NGOs we have devised and set up a nationwide database and communication system that allows help to get to children in need, in the quickest time possible.

Innovation in technology is helping India. It boasts of the cheapest mobile phones and call rates of just Re 1 a minute and public transportation that runs on non-polluting gas. To top it all, it has a young population bursting with energy and aspirations - probably the only big market where first-time telephone users are cellular phone users that have bypassed landlines.

All this has given Indian IT a seat on the global head table, with intellectual competencies to serve an array of offerings in several domains, technologies, with processes to deliver complex solutions, and to sell and support these in all parts of the world. We are transitioning from simple outsourcing to global sourcing - driving the next phase of evolution in process quality frameworks and practices.

We have a headstart on competing countries in terms of process, track record, relationship management, and technology management. We are building our domain abilities and expressing our value to customers visibly. We have played a globally significant role in the information technology and knowledge based services area.

The fact that our multinational competitors are setting up shop in India is proof of India's competitiveness and the success of our business model. Another proof-point of this success is that Indian IT companies like TCS are being requested to establish operations in countries like Uruguay, Mexico, Brazil, China and Morocco.

At 60, India is at a new inflection point. In the years after Independence, it was the government that invested in capacity building for education and research. Today, industry has to come forward to rebuild the capacity to suit the needs of the future.

Our industry has the responsibility to find ways to collaborate with academic and research institutions in India and abroad so that we can stay at the leading edge of the technology domain and process innovation. Technology as an enabler to address all fields continues to be a critical challenge.

While the increasing numbers of universities and educational institutions in India is heartening, the emphasis on examinations (rather than on understanding, learning or knowledge) falls short of inculcating the intellectual leaning required to prosper.

We need to emphasise the need to innovate, to build intellectual property and maintain the pace of transition, whether it is domain consulting, domain products, shrink-wrapped products, high-quality software services or business process outsourcing.

Our ability to anticipate and, indeed, create successive "waves of innovation" will be crucial as we straddle technologies, domains and processes - and create a self-sustaining process to do so continually.

For many critics, India remains a late bloomer. But it must be remembered that nations are not individuals, and while individuals may look to take the foot off the gas pedal at 60, India remains a young nation, which, at 60, is ready to take its place on the global stage on an equal footing with developed economies.

For the IT-ITeS industry, this means a transition from the technical software services of today to knowledge domain based services enabled by IT tomorrow.

But I am confident that IT will not remain the only global leader in the coming years and decades. If we can continue to build our knowledge skills, the manufacturing and agro sectors will soon be up on the global podium alongside the software giants.

 

[Bushroda]

Maruti offers discounts to boost car sales
August 5, 2007

MUMBAI (Reuters) - India's top car maker, Maruti Udyog Ltd., is offering discounts of up to 30,000 rupees on many of its vehicles to shore up sales, newspaper advertisements at the weekend showed.

Maruti, which has nearly half of India's market for mostly small cars, has said it would be hard to match its record domestic sales of 2006/07 because of firm interest rates that have slowed demand for vehicles.

Maruti, in which Suzuki Motor Corp. owns 54.2 percent, has said it would limit the impact of high interest rates with dealer incentives and customer discounts. It ran a discount offer in June.

The "Smile India Smile" offer, which runs from Aug. 1-15, offers discounts ranging from 7,000-30,000 rupees on several models, including its best-selling Alto and the Esteem sedan, the advertisements showed.

The scheme was being offered countrywide, a spokesman said.

Other vehicle makers, including No. 2 car maker Tata Motors Ltd., have scaled back production on the softer demand. A senior banker said on Friday the slowdown would persist until interest rates fell by at least 100-150 basis points.

Maruti, which is seeking shareholder approval to change its name to Maruti Suzuki India Ltd., is trying to shift consumers to bigger, more high-margin cars and launched the SX4 sedan in May and the Grand Vitara sport utility in July.

Maruti has sold 227,578 units in the four months to end-July, up 19 percent from the same period a year earlier.

 

[Bushroda]

Avoid India, UK tells patients
Mumbai, August 03, 2007
4/8/2007

More than two lakh foreigners visited India for treatment last year. But not everybody is pleased.

Medical organisations in the UK and the US have cautioned their citizens against this growing trend of health tourism to countries like India, Malaysia and Thailand. Long flights, they have said, can cause more harm than good to a patient.

A study by the Confederation of Indian Industry and McKinsey estimates that the industry will be Rs 100 billion in India by 2012.If you heed the UK Department of Health’s advice, for instance, you would not look at any country that takes more than a three-hour flight to reach for those bypass and hip surgeries, breast implants and liposuctions.

Certain Asian countries have started offering world-class treatment far cheaper than the West, seriously challenging the old-world notion of going to the ‘friendly neighbourhood doctor’.

A study by the Confederation of Indian Industry and McKinsey estimates that the industry will be Rs 100 billion in India by 2012. With its wealth of talented doctors, India’s healthcare industry may soon rival its software sector.

But with growth has come resistance. “Flying can place a great deal of stress on the body and patients travelling to distant nations for medical attention should check their fitness to fly and factor in appropriate recuperation time before flying home,” a British Medical Association spokesperson told HT.

The US Department of Health raised concerns that seeking treatment abroad can add to health risks. “There are destination-associated risks to medical tourists like heat-related illnesses or malaria,” said Christie Reed of the Center for Disease Control. “This may be complicated if a patient travels in ill health.”

The British National Health Service did consider a tie-up with Wockhardt in 2004. However, concerns over the safety of patients flying to India, combined with falling waiting times for operations in the UK, caused them to cancel the plan.

“We send patients to European countries with a maximum flight time of three hours but not beyond that,” a UK Department of Health spokesperson said.

The Indian Healthcare Federation (IHF) has reacted saying that patients are coming here because they are not being given appropriate healthcare in their own countries.

“Patients are not coming here because they are enamoured by India’s tigers,” said IHF President Dr Naresh Trehan. “They are here to seek the best healthcare treatment they can afford.”

 

[Bushroda]

Docs in demand
31 Jul 2007, 0000 hrs IST
SUMANTHA RATHORE,TNN

Destination India has enticed filmmakers and culture lovers for decades. But now, with India excelling in medical facilities, it has become a paradise for the foreign patients who are either tired of the long queues at the hospitals or wish to receive quality treatment without having to shell out lots of money. Because of its medical infrastructure, Pune is rapidly becoming a preferred destination for such individuals.

The city is cashing on its increased popularity for its outstanding quality of service. Rajiv Yerawadekar, Director, Symbiosis Health Sciences, says, "There are many hospitals in the city that are catering to the nationals of other countries. They are coming here for treatment, since we have better quality manpower and are affordable as well. Moreover, there is no waiting list, unlike the West, where one has to wait for months to get a surgery done."

Pune's proximity to Mumbai has been working in its favour. "Since Pune is very close to Mumbai, we have an edge over other cities. In the last two years, we have grown tremendously as far as health tourism is concerned. We have a dedicated reception cell to look after these patients so that they have a pleasant stay here. Moreover, instead of just focusing on their ailment, we offer a package deal and make sure that they enjoy the nature in and around the city," says Dr Pandurang Vinayak Bokil, medical administrator of a city-based hospital.

Many feel that our country has an advantage over Thailand that pioneered the concept of health tourism. "We have four S's - sunshine (scenery), stethoscope (skilled doctors), surgery (medical facilities ) and sambhar (Indian cuisine) - that give us an edge over other countries. India has always been famous for its hospitality and we just need to capitalise on it. With support from health and tourism ministries , we can go places," adds Dr Rajiv.

Specialised treatments like transplantation of vital organs, cancer treatment, neurosurgery, cardiac surgery, urology and orthopedics are most sought after by foreigners. With health spas coming up, the process of recuperation has acquired a more inviting feel as well.

When it comes to health tourism, there appears to be a win-win situation for both tourists and us. Indeed, here is a blessing in disguise.

 

[Bushroda]

Air India to lease planes for international routes
New Delhi, PTI:

With shortage of aircraft affecting its services on long haul routes, Air India has charted out plans to induct leased planes to maintain its international schedules and launch new routes.

The current fleet was short by one aircraft and the airline was operating without a standby plane, severely affecting its punctuality and schedule integrity, official sources said.

To handle the situation, Air India has recently held negotiations to lease planes after it received offers for wet- lease of two Boeing 747-400s and two Airbus A340-300s.

The two Boeing jets would replace similar planes to maintain the present daily Mumbai-Chicago flight, while the Airbus aircraft would be deployed on Dhaka-Kolkata-London and Mumbai-London routes.

Two A330s are also being leased for deployment on the new India-Hong Kong route from November one and on India-Mauritius -Johannesburg route from December 15.

The aircraft - Boeing-767 and A-310s - would be released due to the deployment of the leased planes. These jets would be utilised for enhancing operations to the Middle East, Saudi Arabia and Hong Kong, for which the carrier has got new bilateral entitlements.

As the national carrier starts inducting aircraft from Boeing, it has started the non-stop Mumbai-New York flight on August 1 and will launch the direct Delhi-New York (JFK Airport) flight from January 7 next year. A direct thrice-a- week Bangalore-San Fransisco flight will start in May next year.

From this winter schedule, Air India plans to start a Delhi-Frankfurt-San Fransisco flight from October 27, besides the existing one to Los Angeles, the sources said.

It would also have a flight from Mumbai to these two American cities via Frankfurt, thereby delinking the earlier service to Los Angeles touching both Mumbai and Delhi.

With the induction of its fifth B 777-200 (Long Range), the airline would launch a non-stop flight between Bangalore and San Fransisco would be launched by May next year.

For long-haul international routes, AI would receive three new Boeing 777-300 (Extended Range) planes by the end of this month and four more in September, October, November and January.

For its short and medium haul network, the airline would receive six Airbus A-321s and five A-319s up to March next year. Of these, three would be used for replacement and eight for expanding its domestic and global routes, they said.

These planes would be utilised to enhance operations to Dubai, Kathmandu, Singapore, Muscat, Sharjah and Bangkok on the international sector.

Its low-cost arm, AI Express, would operate three additional B 737-800s of which, one would be deployed on international routes and two on the domestic sector.

 

[Bushroda]

Egypt seeks Indian help to develop IT
CALLING NEW DEHLI: Cairo sent a delegation to India to convince companies there to sub-outsource contracts. It also hopes to learn to avoid problems facing Indian firms

AFP, CAIRO
Monday, Aug 06, 2007
Taipei Times

Egypt has set its sights on grabbing a share of the multi billion dollar Indian-dominated call center market and is looking to an unexpected corner for a helping hand -- India.

As it makes its pitch to the world, touting a multilingual workforce over India's English-speakers, a time zone shared with Europe and proximity to the US, Egypt is marketing its edge over India to India itself.

The government has sent a high-level delegation to India to convince the IT behemoth to sub-outsource its outsourcing to Egypt.

Several cooperation agreements and memoranda of understanding were signed between the two countries, and Indian giants such as Wipro and Satyam have also signed agreements to set up support centers in Egypt.

According to the Yankee Group, a US-based technology research and consulting firm in IT outsourcing, Egypt is 15 to 20 years behind India, which has boomed to dominate 60 percent of the overall offshore market.

But the south Asian giant struggles to maintain an adequate supply of skilled workers, and handing some of the pie to Egypt could be mutually beneficial, Egypt says.

The Information Technology Industry Development Agency (ITIDA) was set up by the government of technocrat Prime Minister Ahmed Nazif in 2004 to guide Egypt's burgeoning IT industry and propel it onto the world stage.

The government hopes to entice major IT players to set up their call centers, accounting and payroll management -- known as business process outsourcing (BPO) -- in Egypt, pumping resources into an industry it hopes will elevate the national economy.

"This sector will lead to a renaissance in Egypt," ITIDA CEO Mohamed Omran said.

So will Egypt become the new India?

"Absolutely not," Omran said. "We cannot compete with India, we don't want to compete with India, we want to cooperate with India."

"It's what makes the most sense," said Mai Farouk, an independent IT analyst researching Egypt's outsourcing industry.

"It would help the industry grow and elevate its standard," said Farouk, but she fears that the lack of a formal analysis of Egypt's IT experience so far could send the country down the wrong path.

"There has been no thorough analysis of the Egyptian experience," she said. "In Egypt, if a type of business is successful, everyone jumps into it. It is an individual and business trend here.

"We need to study and learn from other's mistakes," she said.

One problem facing India is the country's poorly planned roads making it difficult for staff to reach some of the outsourcing centers, something Egypt has picked up on.

Far from the clutter of Cairo, the government has allocated a vast expanse of desert to the highly marketed "Smart Village," a gated compound built with state-of-the-art technological services.

The lush techno park already houses Microsoft, Vodafone, Ericsson and Alcatel, among others.

At the high-tech Vodafone Egypt offices, employees have already tasted some of that renaissance -- they have access to their own restaurant, cafe and gym.

Sherif Bakir, head of retail at Vodafone Egypt, says the Smart Village has been very enticing for investors as well as new recruits.

"Young graduates in Egypt are attracted by so many factors in the IT industry: the prospects of a career, the salaries [four times that of an average starting salary] and the opportunity to work somewhere like Smart Village with all its benefits," he said.

"And in Egypt, being a call center agent is not seen like being a telephone operator. It's not a dead end job, it's seen as a stepping stone to a career in the IT industry," he said.

But critics say Egypt's outsourcing "boom" won't develop into more than a boutique industry, with the much-touted multilingual and skilled human resource pool amounting to a tiny percentage of Egypt's 76 million population.

A high level of illiteracy, dire poverty and a very large rural population mean that most won't touch the benefits of a booming IT industry.

Omran said the figures speak for themselves.

"A tiny percentage of a huge population is a lot of people," he said. "We're talking millions. And IT is like blood, it gets into the veins of all industries and sectors."

He is eager to showcase his agency's pride and joy: Xceed, one of the largest contact centers in North Africa and the IT arm of the government-owned Telecom Egypt.

At the 16,000m2 space equipped with "cutting edge fault tolerant IT infrastructure," 1,200 agents offer customer and technical support to General Motors, Microsoft and Oracle among others, in eight languages including English, French, German and Hebrew.

According to Xceed, in 2005, nearly 70 percent of total outsourced Egyptian workstations were supporting local customers.

"However, by 2010 this will be nearly completely reversed with 65 percent of Egyptian outsourced workstations servicing foreign end-users," Xceed said.

 

[Bushroda]

Welfare centre for Gulf Indians
By SOMAN BABY
MANAMA, Bahrain

A WELFARE centre for Indians working in Bahrain and other Gulf countries is to be opened in Dubai later this year. The centre will provide financial, legal and medical help for Indians who fall into difficult times, a Ministry of Overseas Indian Affairs spokesman (MOIA) said in New Delhi yesterday.

"Initially, there will be three such centres in Dubai, Washington and Kuala Lumpur and these will come into operation by October this year," he said.

The spokesman said that the Cabinet approval had been granted for the centre in Dubai, which would be a full-fledged one under the jurisdiction of the Indian ambassador to the UAE. The centre will serve Indians living in the UAE, Bahrain, Oman, Qatar, Kuwait and Saudi Arabia.

There are around five million Indians in the region, and many of them work as contract workers, said the official.

A Washington centre will cover the US and Canada, and one in Kuala Lampur will cater to Southeast Asia.

Each of these centres would be headed by a consular level officer under the jurisdiction of the Indian envoy in that country.

However, the officer would report to MOIA.

Legal, financial and medical counsellors will assist the officers.

"These counsellors will be taken preferably from Indians settled in that country but we are not averse to taking local citizens of the country concerned," said the spokesman.

"The Dubai centre will have all the three counsellors.

"The legal counsellor will basically work on workers' rights. The medical or health counsellor will render psychiatric help to traumatised workers, especially domestic maids.

"The financial counsellor will help workers make investments from their small savings instead of sending all their earnings as remittances to India."

At the Washington centre, the legal counsellor's work will be mainly concentrated on resolving problems arising out of marriages between Indian citizens and overseas Indians.

There have been numerous reports of Indian brides being abandoned, abused or betrayed after getting married to Indians in those countries and the MOIA has been taking several steps to stop this trend.

The MOIA spokesman said the role of the financial counsellor would be to primarily aid Indians there who are interested in investing in the booming Indian economy.

"In the Kuala Lumpur centre, which will cover Southeast Asia, the role of the legal and medical counsellors will be similar to those in Dubai," he added.