A CEO at 16, now a millionaire!

Innovation is the secret of their success. They believe a simple idea can transform lives. They dream big and are passionate about their goals... Meet the young, ambitious, intelligent and enterprising architects of India. Here's a special series on India's best innovators and entrepreneurs, winners of the latest Nasscom Innovation Award 2008.

A gaming success mantra

It has been games, games and more games for 31-year-old millionaire entrepreneur Vishal Gondal. He flunked his BCom exams as he was devoted to games, a passion he pursued from the age of 13. Later, this passion led to a serious business when people offered him money to develop games.

In fact, Vishal was amused to see that people were ready to pay him for doing what he liked the most.

At the age of 16, he started his first company, FACT. Later, he received seed capital from Infinity and IL&FS. With an initial investment of Rs 3.25 crore (Rs 32.5 million), Indiagames was born in 1999.

The initial years were tough, especially during the dot-com bust, but they remained focussed and never gave up. Indiagames's products are now distributed to over 75 countries through partnerships with mobile operators.

From a humble beginning in a garage with just five employees, Indiagames has come a long way. Today, Vishal leads a team of over 300 employees and has offices in Mumbai, London, Los Angeles and Beijing. In 2006, UTV acquired 51 per cent stake in Indiagames.

Thinking 'out of the box' has kept Vishal Gondal ahead in this space. He believes that gaming will grow bigger than cricket and Bollywood in India.

"Entrepreneurs must have a clear focus. One must keep focusing on a single thing than trying to do many things at the same time. And copy cat ideas will not survive. One needs to be innovative and do unique things," he points out. However, he laments over the dismal state of innovation in India. "Indian companies had it very easy till now he says. They will be forced to innovate and do things differently."

Network Marketing Success- What’s the Secret?

Network Marketing Success, Many Have Tried, Many Have Failed. So What’s the Secret?

Network marketing success: Why are some able to soar to greater heights while others fall, crash to the ground, and burn to a blackened crisp? Is it destiny or fate? Is there really a secret formula or are some just lucky?

I have talked to many people with these questions. The reason they are asking is because they want to achieve network marketing success but are unwilling to step out and test the waters. They are waiting until someone guarantees them internet success.

This is something I am unwilling to do. If someone guarantees you that you won’t fail, probably you should run away as fast as you can in the opposite direction. Success will only come to those who are willing to pay the price. The only person who knows that for sure is you.

Getting back to some of the questions that were asked, is there a secret? Well, I think the answer to that is yes. Probably there is more than one. I’m not sure how secret the secrets are anymore, but there are things you need to know.

If you want network marketing success, your greatest asset will be you. The number one reason most people in network marketing fail is a lack of action. YOU have to act. YOU will need to do the work involved. Of course, there are many other factors as well.

Money is another factor. If you don’t learn how to monetize, you will end up spending more money than you ever make each month. I’m not saying you need to have tons of money in order to succeed, but to say you will not need any would be a falsehood on my part.

Those who succeed are those who are willing to pay the price. There may be many paths to reach your goal, but the ones who will stay on their path and not be swayed will be the ones to reach their goal.

The awesome thing about this business is the amount of useful information available through the internet. Many experts in the field are willing to share their network marketing success.

They have paid a huge price to accumulate valuable information through years of experience. In turn, they now give it away to you free.

When someone looks at it from that angle, it gives them a responsibility to make sure they don’t squander what they have been given. Sometimes, if we obtain something free of charge, we forget its value.

I believe part of our network marketing success has to do with our attitude. Not only does this affect you personally, it also affects those with whom you come in contact. I can tell almost immediately when I am talking to a negative person.

Our words will give us away. No matter what the subject is, the negative person always finds a way to point out why something won’t work. A positive person is always looking for a solution to the problem.

In order to have network marketing success, make sure you not only follow all the guidelines found on this hub, but begin to have a positive outlook. This will go a long way toward helping you succeed.

Google executive Tim Armstrong moves to AOL

Tim Armstrong, the executive of Google is soon going to adopt a new role of AOL’s chief executive. This has fueled the rumors regarding the separation of AOL from the parent Time Warner Inc. The idea of an independent AOL has been supported by Google also for some time now.

Google on the basis of its investment in AOL which was $ 1 billion, requested Time Warner for their money either as a refund or spin the unit out to shareholders.

The appointment of Tim Armstrong as the AOL chief executive has created positive vibes on Wall Street. It is believed by Richard Greenfield of Pali Research that Armstrong probably has agreed to join AOL because he knows he will get a chance to manage a public company soon which was highly unlikely while he was at Google.

It is visible by efforts like spin off of AOL by Time Warner that the parent company is trying to streamline operations. AOL has bought Bebo Inc and also focused on its “Platform” which is an online advertising network. Nielsen Online has ranked AOL 4th in February for US Internet audience. AOL had 83 million users while Google has 134 million. AOL search is also used by many in US.

But looking at current conditions, an AOL IPO isn’t commented soon. A lot of analysts and investors are in the favor of Time Warner to spin off AOL. Many see the step of AOL and Time Warner joining hand in 2000 as a misstep.

FDI shoots up 90% this fiscal to Rs 85,700 cr

Foreign investment inflows into India grew 90% in the first eight months of the current fiscal year, indicating that the country continues to be an attractive destination for investors despite a fall in economic growth rates.

Foreign direct investment (FDI) inflows during the April-November period stood at Rs 85,700 crore compared with Rs 45,000 crore in the corresponding period of the previous fiscal, despite most of the developed world reeling under the impact of a global recession. According to the FDI data compiled by the commerce and industry ministry, investments from three Asian countries — Mauritius, Singapore and Japan — contributed more than 55% of the total inflows during the period.

Economists see nothing unusual in the situation. “Today, India and China are the warm spots in the global economy. We expect high growth in India as there is huge unmet demand. India is growing faster than the more mature economies of the world, and this is luring investors into India,” Boston Consultancy Group chairman Arun Maira said.

Mauritius remained the largest source of foreign investment, with the island nation contributing Rs 35,000 crore in FDI inflows during the April- November period, almost doubling its contribution from Rs 19,000 crore in the same period of the last fiscal.

Singapore replaced the US as the second-largest source of long-term investments into India. Singapore, which was placed fifth last year, saw its investments growing to Rs 8,500 crore during the period from Rs 3,500 crore in the same period last year.

Increased investment from Singapore came from the investment arms of the government: GIC and Temasek. Temasek Holdings Advisors India made a Rs 2,500-crore investment in Bharti Infratel while GIC affiliate Indivest Pte invested Rs 900 crore in Reid & Taylor, a clothing company promoted by S Kumars. Japanese investment into the country received a major boost when Daiichi Sankyo invested Rs 20,000 crore to pick up 63% stake in Ranbaxy.

However, the FDI figures captured by government statistics may not necessarily reflect the actual origin of investment. For instance, tax havens like Mauritius are used by investors from across the world to invest in India.

While Mauritius remains the No. 1 source of such FDI routed into India, other tax havens are also catching up. European hub Cyprus is gaining ground as a favoured route for channelling FDI into the country. Investments from Cyprus doubled to Rs 4,486 crore in the April-November period this fiscal from Rs 2,000 crore in the same period last year.

Inflation falls to over six-yr low of 2.43%

Inflation fell to a six-year-low of 2.43% for the week ended February 28 from 3.03% in the previous week, raising possibilities of further rate cuts. Analysts expect it to reach 0% by the end of this month. Lower prices of food items and manufactured products resulted in a fall in the inflation.

“Wholesale price index (WPI)-based inflation is now at its lowest level since June 2002, This is on the expected lines. It was during last February and March that inflation increased. The prices of commodities, primarily oil and foodgrains, have moderated,” said Pronab Sen, chief statistician of India and secretary, ministry of statistics & programme implementation.

Inflation is now below Reserve Bank of India (RBI’s) target of 3% by this fiscal-end. The fall in inflation has also raised hopes of further rate cuts by the Reserve Bank of India to spur the economy as industrial output contracted to 0.5%, for the second month in a row in January 2009. The RBI could cut policy rates by 50 basis points ahead of the general elections starting in mid-April, HSBC said in a note on Thursday. With a decline in the commodity prices, fiscal policies eased resulting in interest rate cuts, domestic activity should remain resilient, HSBC said. The RBI slashed its short-term lending and borrowing rates by 50 basis points each last week.

Inflation for the week ended January 3, 2009, was revised upward to 5.33% from 5.24% in the provisional estimates.

The 30-share BSE Sensex ended up 2.25% at 8,343.75 points and the 50-share NSE Nifty ended up 1.72% at 2,617.45 points, as investors tried to catch up with the upward movement on Wall Street on Tuesday and Wednesday. The 10-year bond yield ended at 7.17%, above Monday’s close of 6.84% as investors braced up for heavy supplies of government debt. The rupee ended at 51.88/90 per dollar, from Monday’s close of 51.85/87, and off an intra-day peak of 51.525, as a rise in share prices was offset by renewed dollar buying by crude refiners after a rebound in global oil prices.

Primary articles’ prices decreased to 5.8% for the week ended February 28 from 6% in the earlier week, the finance ministry said in a statement. In food articles, inflation remained stable at 8.3% in the current and previous weeks, but sub-groups such as fruits and vegetables, condiments and spices and other food articles have recorded an increase in prices compared to last week.

In non-food articles, inflation fell to 1.3% compared to 1.7% in the previous week. Fuel and power group prices continued to decline at 5.1% vis-à-vis 4% last week. Manufactured products’ inflation rate decreased to 4% in the current week, from 4.5% last week.

GE adds green 'Odyssey' to its India centre

Company’s investment in India R&D totals $175 mn.

At a time when most of the global companies are going slow on their expansion plans in India, GE, the American technology and services conglomerate, has expanded its research and development capabilities in India. The company has opened a new facility at the John F Welch Technology Centre (JFWTC) in Bangalore, GE’s largest integrated multidisciplinary R&D centre outside of the US.

Spread over 3,85,000 sq. ft., the new building Odyssey which has bagged Leadership in Energy and Environmental Design (LEED) gold certification, will house 2000 scientists and engineers. Officially opened on March 6, the green building fits in with GE’s ecomagination initiative, which represents the company’s commitment to solve the world’s toughest environmental challenges, the company said in a statement.

Dr Mark Little, senior vice president, GE Global Research said, “GE greatly values the well developed intellectual capital that India has to offer. The Odyssey building illustrates the increasing role our center in Bangalore has in GE’s global innovation strategy and for local technology development here in India.”

Since its inception in 2000, the JFWTC has grown from 200 scientists and engineers to close to 4,200 people now. GE has its other research centers located in New York, Shanghai (China) and Munich (Germany). With the opening of the new building, GE’s investment in the JFWTC has now totalled $175 million.

As part of GE’s ecomagination commitment, the company has set targets to reduce both its greenhouse gas emissions and water usage, and improve the energy efficiency of its own operations. GE has committed to reducing its absolute greenhouse gas emissions by one percent by 2012.

The company also has set a target of achieving a 20 per cent reduction in water use by 2012. When compared to a standard building, the Odyssey building will offer a 30 to 40 per cent reduction in operating costs, according to the company.

GE is doubling its investment in clean technologies from $700 million in 2005 to over $1.5 billion by 2010 as part of the company’s ecomagination initiative. The company said that the scientists working with JFWTC are playing a significant role in this campaign, supporting global research endeavours in wind and solar power, gas turbine technologies, locomotives and aircraft engines.

India can cut interest rates further, says ADB study

India has room to cut interest rates further, and it should quickly disburse funds related to the fiscal stimulus packages announced recently to cushion economic growth from the impact of the global economic turmoil, Asian Development Bank (ADB) said in a new study published today.

“There is further room for interest rate reductions, particularly in India and Sri Lanka. While most countries have little scope for large stimulus packages, given deficit constraints, India, which has introduced two of them, should disburse the funds swiftly for maximum impact,” the study said.

Titled ‘The Impact of the Global Economic Slowdown on South Asia’, the study also noted that the sub-region had been hit by capital outflows and weaker commodity prices, and faced a sharp slowdown in exports and remittances as global troubles worsened.

“Governments could consider incentives to encourage overseas workers to remit money home, such as special savings instruments, and they should also discuss currency swap arrangements and other measures to keep their financial systems stable,” it added.

A number of short-term measures have been taken to cushion the impact of the crisis, including monetary easing and fiscal stimulus packages. India had announced a Rs 20,000-crore additional planned expenditure in the current fiscal, refund of certain service taxes, interest subsidy to labour-intensive sectors and extended finance support to various sectors, including infrastructure.

Additionally, the Reserve Bank of India had cut repo rate, the rate at which the central bank lends to banks, for the fifth time since October 20, and the overall cut effected since the global credit crisis intensified added up to 400 basis points. Since September, the central bank had also lowered cash reserve ratio requirements, or the proportion of deposits that banks set aside, by another 400 basis points to inject Rs 1,60,000 crore into the system.

“South Asian countries can weather the global financial crisis by taking both short- and long-term measures to stimulate their economies,” the study said.

“In the long term, South Asian countries need to reduce their fiscal deficits, diversify their economies, step up infrastructure investment and boost intra-regional trade to take up the slack of lower demand from G7 nations,” it added.

“While some countries in South Asia have had relatively less exposure to the crisis from the adverse impacts of capital flows, more than half of the 900 million people in developing Asia who survive on US$1.25 a day live in the sub-region, so any tempering of growth is a serious cause for concern,” said ADB President Haruhiko Kuroda.

The study is being presented as a discussion paper at the South Asia Forum on Impact of the Global Economic and Financial Crisis, a two-day forum being held at ADB headquarters at Manila on March 9 and 10.

The global financial crisis slashed the value of financial assets worldwide by $50 trillion in 2008, said an ADB study on the global financial turmoil. Financial asset losses in developing Asia, which suffered more than other emerging markets, totalled $9.6 trillion, or just over one year’s worth of developing Asia’s gross domestic product, the ADB report said.

10 Reasons to Use Online Dating Sites

There are many more reasons than just ten that I would like to mention, but in this article I have focussed on the primary ten reasons why I believe on-line dating is here to stay. It is now understood that the industry has even further to grow as more and more service suppliers in this segment realize the many niches yet to be serviced and explored. If you are concerned about your time, privacy or safety, while using On-line Dating, then this is a 'must read'.

1.Most people are pretty busy these days. You can imagine how many times you would have to go out and socialize before finding the right partner. Then consider how much you end up spending week after week. You may meet the right person the first time you go out, but you and I know that this is highly unlikely. This procedure more often than not ends up in a lot of wasted time and a lot of wasted money too. However, dating sites(in general) cost nothing to register and or search.

2.Dating sites (the good ones) are in the main, free to join. Only costing you money when you have linked up with someone and intend on meeting with them or communicating further. This is a great feature because it means you will be aware of the basic geography, the hobbies, nuances, hobbies, and other interests before you meet. This is so much less time consuming than dating different people over and over before you find that 'right' person or even just the essential pieces of information.

3.From time to time you can also place advertisements on these sites which stimulates response and gives you a wider field to choose from.

4.You can remain anonymous (recommended) and protect your identity until you're ready and comfortable enough to disclose who you reallly are. If you decide the other person is not for you, you can easily and tactfully end communication without any animosity or even further contact.

5.Some people moving to a new location like to establish relationships and friend before they arrive at their new abode, allowing settling in to be that much easier. This is very often relevant to single parents. There are sites out there that are specific to single parents dating which make the job of meeting that much easier.

6.You may be having difficulty meeting people of the same faith or religion. In this case, there are niche dating sites that service this need in almost every major religion or faith.

7.Equally important is the need to service alternative dating requirements for those who seek pursuits outside the mainstream world of dating. There are many sites to choose from in this category to a point where choosing a good alternative dating service can become confusing and almost frustrating. Look for a Dating Site Review Service to assist you with this. Most of these service sites will have carried out some reviews in addition to weeding out the good from the not so good. If you don't find a particular site on a dating site review service it usually means the owners were uncomfortable with the site and will not include it in their pages or they haven't got around to reviewing it as yet - If the latter is the case, send them an email asking them to review that particular site. Most will follow through and you will find a review in as little as a few days in some cases. If it does not turn up on their pages, there could be something wrong with it.

8.Adult dating also falls into the above category due to its large following. Fortunately, the same solution applies. Just find a dating site review service that has done the 'hard yards' on your behalf and click away. The good review sites are free and will guide you to the better service suppliers.

9.On the subject of Dating Site Review Services, some of them supply newsletters which keep you informed and up to date on new services, promotions (ie.Romance Tours, Dating Events and Speed Dating etc.) and of course other exciting freebies. It is always worth subscribing because you can always unsubscribe if you want to. Just make sure they mention that in their 'sign up box'. Some independent sites have their own newsletters but common sense tells you that you are more likely to receive a more diverse range of information and promotions from the Dating Site Review Service than from just one independent dating site. This occurs because they will screen a whole swag of offers from a host of sites rather than just one before they onsend them to you.

10.Another cool free service from responsible dating sites and review services are the articles which frequently guide you in the right direction with dating trends and tips for successful dating and romance.

I hope this article has opened you eyes to just a few of the many benefits and features that can be obtained when using dating sites to help you.

India drives up StanChart profit

Standard Chartered Bank’s (StanChart) Indian branches have posted a 71 per cent increase in operating profit to $690 million in 2007 from $403 million in 2006.

India, is now the second largest contributor to the bank’s global operating profit with a 17 per cent share after Hong Kong’s 34 per cent. India not only is the bank’s biggest business, but is the only market that saw accelerated growth in 2007.

“The rise in profits is largely driven by growth in the wholesale and consumer banking businesses. The wholesale and consumer banking businesses contribute around 65 per cent and 35 per cent respectively to the bank’s revenues. The bank’s middle market business has seen a 131 per cent increase in revenue. The small and medium enterprises, with a client base of around 10,000, wealth management and personal loan business have also seen healthy growth,’’ said Neeraj Swaroop, regional chief operating officer, India and South Asia, Standard Chartered Bank.

StanChart India’s wholesale banking business contributed the biggest change in global profits. Wholesale banking in India saw a 91 per cent rise in profits to $626 million on an 82 per cent increase in income. The bank has added more than 1,000 clients over the last three years and has more than 100 clients generating income of more than $1 million.

The consumer banking business in India crossed $1 billion income for the first time in 2007, growing 60 per cent to $1.3 billion. Operating profit in the consumer banking business was down to $63 million in 2007 against $76 million in the previous year.

Loan impairment in this business was up to $77 million against $46 million. Loan impairment for the bank has risen to $90 million in 2007 as against $39 million due to a wider deterioration in the unsecured consumer lending environment and increased portfolio impairment provision in unsecured lending and credit cards as the portfolio size increased.

The bank’s mortgage business increased to $1,638 million in 2007 from $1,492 million in 2006 and the small and medium enterprises business increased to $920 million as against $567 million.

Expenses increased to $528 million as against $375 million. Investment in people, premises and private banking increased expenses. Other significant costs included investments in branches, service centre centralisation, ATMs and technology. The bank has applied for 40 new branches and 300 ATMs.

Shop till you drop and then check in

Until now, you have shopped in five-star hotels' premium retail outlets. Now what about doing some shopping in a mall and enjoy the hospitality of a good hotel in the same complex? A successful business in countries such as Dubai, Singapore and Thailand, the mall-hotel concept is all set to script its India story.

The model goes like this-retail outlets on the first two floors, upper floors are eatery- the hotel comes up on the top floors. The aim is optimum utilisation of available space in complex, given the escalating real estate prices and lack of good locations at affordable prices. Moreover, with Commonwealth Games in 2010, when there will be a surge in hotel demand, the concept makes sense.

Developers in not only Tier-I cities, but also in Tier-II and Tier-III cities are going all ga-ga over malls-hotels. Parsvanth Developers Ltd has plans to set up mall-hotels in Hyderabad, Ahmedabad, Mohali, Lucknow and Seelampur. It has already begun construction work in Mohali, Hyderabad and Ahemdabad.

While Ambience Group eyes Delhi and NCR and Vizag, Ansal API will complete its project in Greater Noida this year and Lucknow in 2-3 years. The target customers are domestic, international and business travellers.

Mostly, it is the one developer that develops both the mall and the hotel, but the operations and management rights lie with the hospitality partner. Emaar MGF has tied-up with partners Formule I, Premier Inn and Marriott. While DLF has joined hands with Hilton International Company, Ambience Group has tied up with Leela Group.

"It is a worldwide phenomenon, however, it is a relatively new concept in India. Until now, almost all the hotels have a floor or area dedicated to retail, which has been limited to a few luxury boutiques. But this concept allows an optimum usage of FSI complementing the components (commercial plus hotel), which may be unviable for a stand-alone project," said a source in DLF.

These hotels within malls are a mix of five-stars, four-stars, three-stars and budget hotels. Privacy is the biggest factor while planning the structure of the hotel and the mall. According to BP Dhaka, spokesperson & COO (MP), Parsvanth Developers Ltd, "While the mall and hotel will be interconnected, the entry exit and safety privacy of hotels occupants will be of utmost importance to us."

India, China to drive auto growth in 2008

Daimler predicted on Thursday that India, China and Russia would provide the main impulse for growth in the automotive sector in 2008, in the face of flat demand in Europe and a depressed North American market as a result of falling house prices.

Posting net profits of 3.985 billion euros ($5.8 billion) for 2007, up from 3.783 billion euros ($5.52 billion) in 2006, Daimler said it expected a moderate increase in revenue from the 99.4 billion ($145 billion) euros recorded in 2007.

"From today's perspective, all operations should contribute to this growth. The regional focus of expansion is likely to be mainly in the growth markets of Asia and Eastern Europe," it said.

The company announced an increase in its dividend to 2 euros from 1.50 euros currently.

Operating profit, measured as earnings before interest and tax (EBIT), rose sharply to 8.7 billion euros ($12.7 billion) from 5 billion euros ($7.3 billion). A charge of 2.2 billion was booked to selling off the Chrysler division during the year.

Daimler said it anticipated margins in its core Mercedes-Benz Cars division to rise to 10 per cent by 2010, from 9 per cent currently. The division accounted for 4.75 billion euros in EBIT in 2007.

Margins in the Daimler Trucks division were expected to rise to 8 per cent by 2010, from 7 per cent currently. The division accounted for 2.12 billion euros in EBIT last year.

The company's share price rose on the news to hit a high of 55.85 euros, before falling back to 54.28, one per cent up on the opening.

Like other German auto manufacturers, Daimler has suffered from the rise of the euro against other major currencies, which makes its vehicles more expensive in foreign markets, and from a general economic slowdown worldwide.

Daimler's bus division could likely see sales stagnate however, the company acknowledged.

Auto part firms thrive on sourcing deals

The multi-billion dollar auto component sourcing industry in India has brought relief to many domestic component suppliers in the form of improved margins and long-term supply contracts.

Global auto majors such as Daimler, General Motors, Ford, Volkswagen, Renault, Nissan and Honda have been buying higher quantities of components from India, which has resulted in the margins of component firms improving 8-10 per cent.

As of the last financial year, auto component sourcing has touched $3 billion in India and is expected to double by next financial year-end. Many such auto majors have set up an India purchase office, which buys inexpensive Indian components to cater to their huge overseas plants.

Such sourcing has provided Indian players with the opportunity to charge a premium that varies between 5 and 10 per cent. Many foreign car makers prefer to make engineering changes to the components before incorporating them in their engines and other parts.

Some of the more common components sourced include axle bar, propeller shaft, crank shaft, cylinder heads, bearings and cylinder blocks. Foreign firms get a 25-30 per cent cost advantage through such deals.

M Radhakrishnan, joint managing director, Autoline Industries, said, “We are supplying original equipment makers (OEM) such as GM, Ford, Nissan and Honda. Not only have the margins improved due to premium pricing, but volumes have grown significantly, too. These players get a benefit of 20 per cent cost reduction for our products.”

According to projections made by the Auto Components Manufacturers Association, global sourcing from India will increase to $20 billion by 2014.

Daimler India sourced components worth $2.2 billion from India last year and this year the figure is expected to swell by 20 per cent or $440 million.

Many component manufacturers say that though there are servicing (fabrication) costs involved, which tend to raise the overall cost, it is compensated through premium settlements by OEMs.

Praveen Gupta, chief executive, auto and engineering business, Yash Birla Group, said, “Direct supplies to tier I players do involve high margins, stable demand and volume. We are looking to expand our reach beyond our tier II customers such as Cummins.”

Experts believe that strong negotiations on component prices by Tata Motors for the Nano, which lead to a squeeze on margins for suppliers, will be tackled through sourcing deals.

Indian PC shipments grow 20 per cent

The desktop and notebook market grew 20 per cent year-on-year, with 6.5 million units shipped into the country in 2007, as compared with 5.4 million units in 2006, according IDC’s latest India quarterly PC tracker.

Notebook shipments accounted for more than 27 per cent of the total PC shipments for the first time in a calendar year.

Notebook PC shipments touched 1.8 million units, as against 0.98 million units in 2006, which show acceptance of laptops as the preferred choice for first-time PC buyers, according to Kapil Dev Singh, country manager, IDC India.

Piyush Pushkal, manager, PC research, IDC India, said: “With consumer desktop shipments reporting flat growth, the higher overall growth of the consumer client PC segment signals maturing of the market. The consumer PC category is shifting from desktop-centric to being notebook-centric.”

While the notebook PC market grew 81 per cent in 2007 year-on-year, the desktop PC market grew by 7 per cent as it shipped 4.7 million units in 2007 as against 4.4 million units in 2006.

The study said there was a need to encourage development and widespread adoption of communication and convergence to spur future growth.

“These low-end notebook PC-type gadgets are not likely to increase PC penetration in India significantly. To increase PC penetration, the ecosystem needs to offer an affordable internet infrastructure, local applications, Indian language content, e-commerce and education. The PC-type gadgets are likely to function only as secondary computing devices in existing PC-owning households,”

Carmakers on expansion drive in smaller cities

Improved road connectivity and high penetration of retail finance has triggered car makers to go on an expansion drive of increased dealerships in smaller cities. The car financing industry reckons the number of dealerships to be opened in tier 2 and 3 cities to be around 300 in the next one year.

Honda Siel Cars India in the next one year would open its outlets in 39 newer cities where it has not had a presence. “We see a huge potential in these markets. We are adding 40 new cities to our map by 2009 from the present 51,” said Mr Jnaneshwar Sen, Senior General Manager, Honda Siel Cars India. Comparing fiscal 2007-08 to 2006-07, he said that the company has expanded its share from 15-22 per cent in Ludhiana, 26-33 per cent in Karnal, 44-57 per cent in Ghaziabad for its model Honda City. In the case of Civic, the market share in Agra increased from 62 to 81 per cent; in Indore from 23 to 38 per cent.

Led mainly by its small car Spark, in case of General Motors too, the maximum growth occurred in the smaller towns and cities where it witnessed an over 100 per cent growth in 2007.

“In the last calendar year we grew by 74 per cent, of which the C and D category of cities contributed 120 per cent. Our sales outlets, which increased from 89 by the end of 2006 to 107 dealers in 2007, were largely in these cities,” said Mr Ankush Arora, General Manager, Marketing, General Motors. By the end of 2008, the company plans to expand its dealership network to 190.

The Maruti Suzuki General Manager - Marketing, Mr Mayank Pareek, said the company stepped into smaller villages and cities through a focused marketing campaign targeted at panchayats, and teachers with a good disposable income. He attributed the growth to increased road connectivity thanks to the development of the Golden Quadrilateral and the availability of finance.

“On an increasing portfolio, the contribution of the C and D category of cities has increased from 10 per cent to 35 per cent in the last two-three years. We expect the ratio between the metros and non-metros to be 60-40 respectively in the coming years,” said Mr Rajan Pental, Senior Vice-President, Auto Loans, HDFC Bank.

General Insurance sector logs growth of 12 per cent in January

The General Insurance industry grew by about 12 per cent during January with robust performance by private players like Reliance General and Cholamandalam. The 16 non-life insurers collected Rs 2,520 crore premium in January 2008, against Rs 2,253 crore in the same month last year, according to industry data. During the month, nine private sector general insurance companies garnered Rs 990 crore against Rs 811 crore in the same month a year-ago.

Reliance General increased its premium by 47.5 per cent to Rs 149 crore, Cholamandalam MS General Insurance premium grew by 65 per cent to Rs 48 crore in January. The largest player in the segment, ICICI Lombard collected Rs 278 crore against Rs 275 crore in January 2007. At the same time, four public sector non-life insurance companies collected Rs 1,467 crore against Rs 1,391 crore in the corresponding month a year ago.

In percentage terms, while the public sector could increase their premiums by just 5.4 per cent, nine private sector players clocked premium growth of 22 per cent. During the month, market leader New India Assurance premium collection grew by 6.7 per cent to Rs 451 crore as compared to Rs 422 crore in the year-ago period. However, Oriental Insurance posted a negative growth of 1.9 per cent to Rs 327 crore against Rs 333 crore in the same month last year. Private sector players' market share stood at 40 per cent as compared to the public sector's share of 60 per cent in the month.

Indian apparel brands eyeing Chinese mart

After sourcing from China, the Indian apparel brands are set to design a retail road map in the dragon nation.

The brands like Koutons, Lilliput and Spykar are exploring joint venture and inorganic growth opportunities to tap the Chinese market.

The kidswear brand Lilliput is entering China through a newly formed joint venture firm Lilliput Kidswear China.

Sanjeev Narula, managing director, Lilliput said, “ The company has identified West Asia and China as focused markets for international expansion. We already source 20 per cent of the merchandise from China and now plans to open 6 stores through the joint venture.”

The move is a part of the industry initiative to not only look at China as a sourcing hub but also a potential apparel market.

Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI) said,” Indian firms have never thought of China as an export market but we have realised that there is a good scope for Indian brands to compete in the Chinese market. CMAI intends to take a delegation of at least 10-12 brands to China in order to explore the market.”

The Indian companies are spotting opportunity in China’s vast manufacturing capability and the equally strong purchasing power. For instance, Koutons has hinted at acquiring manufacturing units to gain production scale for its Chinese operations.

D P S Kohli, chairman, Koutons said, “Unlike the common perception of China manufacturing cheap goods, there are some good volume producers as well.

Apart from setting up a sourcing office, the company is also looking for a manufacturing base for cost efficiency and drive synergy between India and China.”

While Lilliput will position the brand at a higher retail price than in India. The brand’s average retail price in India is $13 (about Rs 520) but it will price Lilliput at $22 (Rs 880) in China.

AAI lines up US$ 3.13 billion airport revamp

The country's aviation infrastructure will get a massive investment dose over the next five years. Airports Authority of India (AAI) has planned to set aside Rs 12,434 crore for the upgradation and modernisation process.

For the three metro airports in Kolkata, Chennai and Trivandrum, AAI has earmarked 43% of its planned outlay, while the rest will go into upgrading other non-metro airports and modernising the existing aeronautical facilities.

Of the Rs 5,332.13 crore earmarked for the three metro airports, Chennai has got the highest share — Rs 2,462 crore — for revamping the existing airport while the Kolkata airport will be modernised with a total outlay of Rs 2,417 crore.

Another Rs 452 crore will be spent on the Trivandrum airport. AAI has floated tenders for the modernisation of these metro projects, which are likely to be at par with India’s busiest Mumbai and Delhi airports, which are currently being re-developed by major private players.

Sources in AAI said the process to scale up two of India’s most profitable airports — Kolkata and Chennai — to world standards has already started with adequate funds put in place for the next five years.

“A major portion of the funds will go into starting new facilities like integrated passenger terminals, constructing new runways and launching hi-tech communication services. These services will be developed to global standards and several foreign partners will be roped in by AAI for construction and on turn-key basis,” said an AAI official.

It’s not just about new terminals and cargo facilities; AAI will be investing a substantial part of Rs 1,743 crore into modernisation of aeronautical communication systems at more than 125 airports managed by the authority.

The outlay will be spent installing new communication navigational systems for air traffic control (ATC) in inland and oceanic areas using satellite mode of communication at these airports for faster transfer of aircraft and cargo.

A part of the investment will also be made at the Delhi and Mumbai airports where AAI is providing ATC services.

With the upgradation of infrastructure, AAI will be able to cater to passenger traffic of 10 crore passengers per year and will be capable of handling cargo traffic of over 50 lakh tonnes annually.

Beverage firms to flood market with health drinks

This summer, the beverages market will move a little more away from its carbonated drinks. Stretching the health and wellness plank, beverage makers have lined up five-six new health drinks in the coming months, more than in any other category.

Health drinks such as Ribena, Lucozade and X-35 Body fuel may soon become the household names, as PepsiCo, Coca-Cola, Amul and GlaxoSmithkline are planning to introduce these drinks.

"The penetration levels of aerated drinks in India are quite low compared with other developing and developed markets. Carbonates are expected to register relatively moderate volume and value growth as consumers are increasingly opting for healthier beverages such as fruit juices and fruit-based drinks, and even bottled water," said Harminder Sahni, managing director of Technopak Advisors, a retail consultancy.

Thus, the Rs 7,200-crore carbonated drinks category are expected to face the heat of the rising competition this summer from categories falling under the health umbrella. At present, these categories are juice and juice-based drinks, energy and sports drinks, malted beverages, probiotic drinks and bottled water.

PepsiCo India is eyeing a larger share of the Rs 1,200-crore juice and juice-based drinks market. "These drinks are the fastest-growing category in the beverages market and over 50 per cent of the volume is to come from the category this year," said Sanjiv Chadha, chief executive officer, PepsiCo India.

The company is also planning to expand its juice drink Tropicana Twister in three more flavours this year. It is also working towards increasing its share of the drinking water market.

Coca-Cola too is widening its portfolio. "Our entire brand portfolio has been designed to satisfy the various needs of the consumers -- be it hydration, energy, enjoyment or simply having fun. As part of the same endeavor, we are exploring a wide variety of beverage opportunities such as juice and juice-based drinks, energy and sports drinks, flavored water," said Atul Singh, president & CEO, Coca-Cola India.

According to an industry analyst, the gross margin in the fruit beverages and the bottled water categories are high, which is incentive enough for beverage makers to strengthen their portfolios.

GlaxoSmithKline Consumer Health Care is tempted to enter the category. Zubair Ahmed, managing director, said: "We plan to bring in Lucozade Sport for athletes and Ribena - a Vitamin C-based fruit drink into the market soon. However, there are regulatory challenges at present and the stability of products is to be tested."

Home-grown FMCG company Dabur has launched a malted food drink, Chyawan Junior, and plans to expand its Real juices and Real Twist portfolio.

Yakult Danone India is busy nurturing the newest kid on the beverage block, probiotic drinks. The nascent category has already struck a chord with the Indian consumer to become a Rs 200-crore market. Dairy company such as Amul and Mother dairy too have entered this segment with probiotic lassi.

New Seven Wonders : Official announcement (Youtubemix)

New Seven Wonders : Official announcement