India Economic News Weekly Report, July 27-August 2, 2007

The main business news item of the week is the stock market crash brought about by the sub-prime disaster in the USA.  Consensus is emerging, however, that India's markets will be largely unaffected by this global meltdown.  Another interesting item is that Dell finally rolled out its very first "Made in India" computer after Michael Dell once said he would never manufacture in India.

ChrysCapital sets up $1.25 bln India fund
Citigroup, Blackstone and 3i have already announced financing for major infrastructure projects.

India's Star City to build 200 managed apartments in Australia
In 2005, there were about 14,000 students from India and this year it has crossed 37,000

Reliance Mart set to open 1.65 lakh sq ft hypermart in Ahmedabad
Reliance already operates 11 Reliance Fresh outlets in Ahmedabad.

Globus Spirits plans Rs 100-cr investment; launching new brands
It is also setting up captive power unit in the next one year

Hamleys of Iceland to invest Rs 500 crore in India
This company is one of the world’s largest toy shops owned by Iceland-based investment company the Baugur Group

Somfy India expanding to 12 tier-II cities in the next six months
This is a subsidiary of a French company secializing in energy-saving solutions and green building concepts

Maersk India initiatives to tap $4.7 bn global banana market
The company will facilitate research in banana production, harvesting, warehousing and packaging and providing end-to-end logistics support, in addition to arranging for training to local exporters in cold chain management and marketing support in foreign countries.

Cognizant plans to invest $100 m more in India
This is in adition to the previously-announced $200 million infrastructure expansion programme across the country announced last month

India: TCS & Cognizant expand to Hyderabad outskirts
TCS to invest Rs.4 billion and accommodate 15,000 employees by 2013. Cognizant to invest Rs.3.3 billion and hire 12,000 employees by 2012.

New career options for visually challenged in India
Four batches have passed out since the course was started in 2004, and while some 15 visually impaired students are working independently, several have opened their own massage parlours, providing jobs to others, says Rampal Singh, who is working as an instructor.

India: Nvidia Open New Design Center in Hyderabad
This is the third such center in India since 2005

Nokia Opens First Satellite Design Studio in India
Clear indication of the increasing impact that India is having on the development of mobile phones worldwide.

Brocade sets up R&D center in India
The company expects India to ultimately account for about 40 percent of it's worldwide development resources

Black Wednesday: India's Sensex tanks 615 points
Market analysts said the current crash in the indices was attributed to worries over the sub-prime loan industry in the US

Thermo Fisher Scientific of USA Extends Reach in India
Over the past few years, the company has steadily increased its presence throughout India

India's GTL in final talks to buy two companies in UK, Far East
No figures available. Both companies are in network engineering services and the deals should close within three months.

PepsiCo to double its India investment in three years
No numbers available. A significant part of this is expected to go into R&D and to scale up its business of health drinks.

India's JSW Steel set to acquire US firm for $1.2b
Final stages of negotiations to acquire a steel plate mill in North America.

Dell delivers first "Made in India" computer
Made at Dell's plant near Chennai, production capacity 400,000. Finally, Dell sees the light.

World Bank to grant Rs 15,252 cr loan to UP
Mayawati delivers a major win for U.P. This is a debt swap, paying off a 11.5% loan with a 6.25% loan. Huge savings for U.P.

India's Sobha Developers plans hospitality projects in South
To set up luxury hotels with a total of 600 rooms in Bangalore, Mysore, Kochi and Thrissur

Taiwan’s Dogetech plans textile machinery plant in Coimbatore, India
This is in addition to the $3-million investment in a Kolhapur assembling plant

Berger Paints India plans Rs 50-cr plant in Pune
This is in addition to setting up a new manufacturing unit in Russia

India Has a Million Less AIDS Cases Than Believed: Study
Survey was financed by the Bill and Melinda Gates Foundation and carried out under international supervision

India becoming an attractive solar market
Firms such as Moser Baer ($880 million) and US-based Signet Solar ($150 million for 3 photovoltaic module manufacturing facilities) are investing heavily in India.

India: After Brahmins, Mayawati set to woo Muslims
Just as she had success with a section of the Brahmins, I believe Mayawati will get some support from Muslims too

India's Jagson Airlines to construct Rs 8 Cr ropeway to Shimla top
This is a bit of a diversification into tourism for Jagson. The ropeway would rise to an eight story level structure and would go over the tree line.

India's Biocon in Dubai joint venture to tap $5 bn market
To provide affordable drugs for cancer, diabetes, autoimmune disorders, cardiac diseases and obesity.

India's Cooch Behar airport to be opened next month
Trial flight will be on Aug 10, first commercial flight by Air Deccan on August 15.

India: Amritsar Int airport to get ready by March 2008
First up will be direct flights from the U.K.

Lakshmi Mittal makes new $2.3 billion investment in Poland
The rich get richer. L.N. Mittal, who acquired 69 percent of the shares of Polskie Huty Stali in 2004 will buy the rest of the small change for $2.3 billion

PepsiCo replaces potato seeds to contract farmers
This item is newsworthy because it shows how market competition can sometimes lead to compassionate capitalism.

India's Sensex recovers 112 points on global cues, Infosys up
Tracking global markets, it recovered by more than 112 points

India's Reliance plans $2.5 bn fertilizer plant
For a 4 million tons-a-year fertilizer plant at either Kakinada in Andhra Pradesh or Jamnagar in Gujarat. Key will be availability of natural gas.

India's packaged water industry —set for massive growth
Major players like Tata who recently bought stake in Mount Everest brand of packaged drinking water, will lead the surge.

Global private equity firm Carlyle Group invests $41.1 million in India's Great Offshore
Great Offshore seen as a leader in its chosen field globally

Baring India to invest $35 m in JRG Securities
Money will be used to set up another 59 branches in the current year

International Diamond Laboratories launches operations in India
Underscores the importance of India to the global diamond industry

India's SpiceJet to start Delhi-Kochi service
More inter-city airline connectivity, growing almost on a daily basis.

India: Bhatinda refinery finalizes financing of Rs 7,793 cr
Work can now begin and will offer employment to several thousands just in the construction phase until 2011

India: New Holland Tractors to ramp up capacity to 25,000 units
Also exporting tractors out of India, a testimony to the company's global quality standards

Malaysian restaurant chain Awana sets up multi-cuisine centre in India
This one is at Hyderabad and eight more within three years including two in Mumbai and Delhi shortly.

India's Elder Pharma picks up 20% in UK’s Neutra for £5.63 million
Elder will manufacture in India and Neutra will market in the West.

India: Gayatri Projects to raise $30 m
Yet another company raising decent money for expansion

India's share of global textile trade to go from $51 billion to $110 billion by 2012
Textiles is the next big wave in India.

INDIA: Spentex completes 25 million euro Czech firm acquisition
Enhances the company’s presence in the European market, improves revenues by 55 million Euro and adds another six million euro per year in cash flows.

Air India to offer direct US flights starting Aug 1.
Becomes the first India-based operator to offer direct, non stop flights between the US and India.

Seafood exports from India increase by over 15%
Despite new duties in the U.S. which decreased exports to that country

India: General Atlantic LLC investing $60 million in IBS
General Atlantic is a top 20 private equity investor & seeks to grow in IBS' speciality in IT solutions to the travel, transportation and logistics industries.

Indian IT companies step up overseas hiring
This is not a surprise. As the Indian Rupee continues to strengthen, Indian IT companies will find it more affordable to hire overseas talent.

China's Lenovo plans $11-million plant in Himachal, India
And likely to start production in November

India: TeamLease plans to hire 80,000 people
TeamLease is not really hiring, merely building up its database of candidates.

India: Global Hospitals launching Bangalore unit in August
This is a 500-bed, Rs 150-crore located on 50 acrs of land. Offers a specialised liver transplant facility

Mitsui, Marubeni of Japan seeking to invest in India
Mitsui would focus on the development of logistics and infrastructure at Greater Noida and Rajasthan. Marubeni has set up a study group to identify projects and Indian partners.