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I BEFINDIA BRAND EQUITY FOUNDATIONANNUALREPORT2004-05

The India Brand Equity Foundation is a public-privatepartnership between the Ministry of Commerce &Industry, Government of India and the Confederationof Indian Industry. The Foundation's primary objective isto build positive economic perceptions of India globally.

India Brand Equity Foundationc/o Confederation of Indian Industry249-F Sector 18, Udyog Vihar Phase IVGurgaon 122 015, Haryana, INDIA

Tel +91 124 501 4087, 4060 - 67

Fax +91 124 501 3873

E-mail [email protected]

Web www.ibef.org

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The India Brand Equity Foundation is a unique idea. This idea has taken solid shape over the last two years.

The experiment of a public-private partnership in the area of nation branding aims to do things differently,

unfettered by the past and always looking towards the future with optimism.

As the Foundation moves into its third year of operations, it becomes increasingly relevant in a globalising world

where India assumes centrestage on economic and diplomatic issues. It is perhaps true that perception lags reality,

and though over the past few years, increased interest in India has prompted business leaders and policy makers

to develop a deeper understanding of this complex nation, there is much more to be done to educate the world

about India. This has been the area where the Foundation has focused its efforts over the past year.

The pace of change is rapid. The IBEF has kept up with the pace, and attempted to assist global businesses and

media in keeping up as well. However, the very nature of the organisation is built on the presumption that as IBEF

deploys its energies behind the development of an India Resource Centre, more Indian organisations will come

forward to make use of it. IBEF has proactively expanded its partnership networks across government, industry

and media. IBEF's website www.ibef.org has emerged as a one-stop shop for those seeking information on India,

both for global and domestic audiences.

Yet, there is an uphill task ahead of us. In the coming months and years, there will be a greater demand for

information. More importantly, in this period of transition, there will be a demand from discerning consumers,

global business leaders, opinion leaders, policy makers and decision takers. The IBEF is gearing up to serve

this community.

I am confident that the IBEF is an idea whose time is now. It is an idea that must be nurtured and developed.

The IBEF has served as a facilitator for the past two years. It has facilitated the flow of information between India

and the world. It has also facilitated dissemination of t he experience of influencers and leaders and helped shape

positive opinion about India in the world.

Now, while it continues to serve as a facilitator, it must emerge as an enabler. An enabler for business andgovernment alike to build bridges and networks with the world around us. An enabler for every Indian around

the world to feel genuine pride in India and an abiding faith in its great future. Most importantly, an enabler for

taking a common message to the rest of the world. The message is simple. India the fastest growing free market

democracy is an economic powerhouse of the 21st century, and nothing is going to stop its progress.

S N Menon

Chairman, IBEF &

Commerce Secretary

THE YEARIN REVIEW

...IBEF is an idea

whose time is now...

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The Year in Review 06

IBEF Vision 22

C O N T E N T S

The IBEF is a successful model of a public-private partnership between CII & t he Ministry of Commerce and

Industry. As we close our second year of operations, we report back with a string of projects, conducted in close

engagement with the Ministry of Commerce and Industry, Ministry of External Affairs and other agencies within the

Government. Chief among them was the 1st India-ASEAN Car Rally held in Nov-Dec 2004, flagged off by the Prime

Minister of India Dr. Manmohan Singh in Guwahati, India.

An enormously challenging logistical exercise, the Rally involved taking 60 cars from India to Indonesia traveling

across 8 of the 10 ASEAN countries, and bringing the regions peoples and economies closer than ever before.

The IBEF sponsored this mega project and also ran a campaign titled Opportunity India in the ASEAN as the

rally charted its 8000 km journey across the ASEAN, showcasing emergent opportunities for business engagement

between India and ASEAN. The Rally was the single biggest brand building exercise for India in the ASEAN.

In 2004, IBEF also escalated its research activities, launched its India Resource Centre (www.ibef.org) and published

a series of sectoral reports and success stories. The IBEF website received 3 million hits in the first quarter of 2005.IBEFs original research assisted global media and business in understanding India, in greater depth and facilitated the

growth of posi t ive publ ic opinion worldwide. IBEF a lso launched the " e" under which i t

organised and supported visits by senior policy makers, decision takers and journalists. Recently, IBEF has started

to work closely with the newly constituted Investment Commission led by Mr. Ratan N Tata.

Over the past few years, Brand India has caught the attention of global media like never before. IBEFs research

and analysis confirms this. A visit to the news stands and a quick flip-through of the worlds leading magazines and

dailies reconfirms this! We have been working hard to ensure that this is a sustainable shift. A shift in perception

towards a more realistic and enduring brand image that is truly representative of the great things happening in India.

Now, we want to raise the bar. Both, in terms of how we measure success internally, and in the scale of our

operations. Building on t he first two years, we will now deploy resources and energies in building a global network

of Brand Ambassadors that can serve as an effective outreach arm of the IBEF, and also move closer to our target

markets by launching a series of direct marketing efforts like roadshows and conferences. We will also continue

to engage organisations in partnership to build consensus about the kind of messages that India sends out to the

global community. And in this manner, it is our firm belief that we will continue to improve economic perceptions

of India, globally.

This report captures IBEF's progress from January 2004 through March 2005, reflecting a change in our reporting

cycle which will now follow the fiscal year i.e. April-March. The work completed by IBEF in these 15 months would

not have been possible without t he leadership of some key individuals. I would like to t hank Mr. Dipak Chatterjee,

former Commerce Secretary, Mr. S N Menon, the current Commerce Secretary and Chairman IBEF and their team

for their guidance in facilitating IBEF's transition into what it is today.

Ajay KhannaCEO, IBEF &Dy. Director General, CII

Experience India Programm

...Now, we want

to raise the bar...

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THE YEARIN REVIEW

Since its rechristening as the India Brand Equity

Foundation in late 2003, IBEF's endeavour has

been to build positive economic perceptions

of India globally. While most of our work is

international, IBEF serves the domestic market

by providing resources to key stakeholders,

thus, ensuring coherence and consistency in

building Brand India.

To achieve its charter, the IBEF has identified

four broad roles for itself:

A to facilitate continual development

and refinement of the Brand Vision

A on India

A fo r g lo ba l i nst itu ti on s,

organisations and individuals wanting to

deepen their understanding of India

A of Strategic Marketing

initiatives

In 2003, IBEF worked as a Forum for developing

the Brand Vision for India. It conducted

Forum

Resource Centre

Facilitator

Co-ordinator

FORUM

workshops across the country with the

assistance of the Boston Consulting Group,

to gather data and opinion on how to build

a globally relevant Brand India.

IBEF further analysed media perceptions

through secondary research and facilitated

discussions with government and industry

to establish a common vision for the brand.

In 2004, IBEF built on these discussions, but

focused energies on foreign investment, and

how investors both domestic and internationalperceived Brand India.

IBEF also works closely with the Investment

Commission, appointed by the Ministry of

Finance, under the leadership of Mr. Ratan

N Tata. IBEF was invited to present its view on

how the partnership could be structured, to all

the members of the Investment Commission in

February 2005, and has since been actively

engaged in acting as a Resource Centre for the

Commission.

INDIA RESOURCE CENTRE

www.ibef.org

IBEF launched its India Resource Centre

www.ibef.org in 2004. The website has steadily

gained popularity both in India and abroad.

Today, it serves as a "one-stop shop" for

business information on India. The website

offers in-depth and accurate information,

analysis, news and resources across industrialsectors and the economy in general. It has 200

articles on varying topics in its research section

and is continually updated with new features and

data in line with policy announcements, industry

trends and growing investor interest in India.

In the first quarter of 2005, the IBEF website had

over 3 million hits with maximum number

of visitors from the US followed by India, Saudi

Arabia and Singapore.

The IBEF website also features a section on

"Brand India" (www.ibef.org/brand India), whichcomprises

multimedia presentations

downloadable India posters

India Brochure

India Presentations

India Film

Articles, images and sectoral papers.

All these can be used as a complete package

for pitching the "India Story".

The India Resource Centre initiative's aim has

been to proactively publish original research

and present success stories, trends and

highlights of key events taking place in the

country such as the Economic Survey, Budget

Announcement, India Economic Summit, etc.

The research is targeted at industry analysts,

international and domestic media and policy

makers and also caters to specific requests

from industry and media.

The range and depth of the research prompted

several organisations and individuals to tap into

this service. Now, nearly a third of our originalresearch is content-on-demand.

ANNUALREPORT2004-05 07

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In fact, IBEF has assisted several global

organisations including Bloomberg News, CBS

News 60 Minutes, US-based National Journal,

Boston Consulting Group, Germany-based

Managr magazine, and many more India-based

organisations including Times of India, Indian

Express, CNBC-TV18, CNN and others, with

relevant, timely and meaningful research.

The research is disseminated through the IBEF

website as weekly highlights that focus on key

articles written, a weekly e-newsletter, press

releases and focused direct mailing to media and

industry.

A compilation of our most widely used research

has been published as a single volume to serve

as a reference guide.

Brand India Pack

In 2004, IBEF completed the design and

development of the Brand India Information

Pack. A customisable pack available both as a

binder and a CD, the pack serves as an effective

tool for disseminating packaged information

about the India Business Experience to diverse

audiences at conferences, seminars, booths and

stalls, by mail and during one-on-one meetings.

This pack is continually updated and can be

downloaded from the website.

The pack that has been branded under the IBEF-

promoted business brand titled "India-World's

Fastest Growing Free Market Democracy" has

the ability to suit the needs of different

organisations engaged in marketing India.


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It serves as a ready reckoner on India and offers

a quick look through of the best that India has

to offer. It also provides facts and figures on

Indian industry and economy along with an

analysis and testimonials of India as an ideal

business destination. The pack, which is

distributed at domestic and international

forums, has proved to be extremely popular

with Indian mission abroad.

Quick facts and figures on Indian industry &

economy: "WHY India?"

Provides brief analysis and testimonials

of India as an ideal business destination

Distributed at domestic and international

forums

Set of 12 posters

India story depicted through pictures,

not words

Available in booklet from

Freely available for download on IBEF

website

Put up at India Booths organised by IBEF

at domestic and international events

India Brochure

India Posters


India CD/DVD

Publications

Showcase

Highlight

Promote

Project

Create

Soft copies of all reports, power-point

presentations and other resources part

of the Brand India Pack

Distributed at international and domestic

forums

Being extensively used by Indian missions

abroad

IBEF, in partnership with leading global agencies,

published a series of sectoral reports, along with

several other topical brochures and reports on

wide-ranging subjects that may be of interest to

global businesses and media.

The broad focus of these publications is to:

India as an investment destination

and the opportunities within

the rapidly improving Indian

business environment

the fast-growing and diverse

Indian marketplace both as export and

consumer markets

the dynamic growth demonstrated

by Indian players and achievements globally

a closer-to-reality and accurate

perception about the changing Indian market

to whet interests of potential investors

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The reports already published include

:

Automotive Biotechnology

Healthcare Pharmaceuticals

:

ITES IT Power Oil & Gas

:

US Companies in India: Success Stories

:Deming Prize Winners from India

IBEF employs facilitation as a key strategy

to proactively build positive opinion about

India. Through a combination of sponsored

programmes supporting visits of international

journalists, and timely intervention in

Ernst & Young

PricewaterhouseCoopers

KPMG

CII

FACILITATOR

programmes of planned visits, IBEF has managed

to facilitate and enhance the India brand

experience of visiting journalists and key

policy makers.

IBEF hosted a number of key influencers from

across the world including visitors from the US,

Singapore, Thailand, Mexico, Sweden, Germany,

UK, Cambodia among others. Some of these

included Robert Blackwill, President, Barbour

Griffith & Rogers International, USA; Andre

Tamaris, Editor in Chief, Negocios, Mexico;

Bruce Stokes, Sr. Correspondent, The National

Journal, USA; Peter Mandelson, Commissioner

for Trade, European Commission; Arthur Segel,

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Head of Real Estate Department, Harvard

Business School; Martin Wolf, Associate Editor

& Chief Economics Commentator, Financial

Times, London; Stephen Roach, Managing

Director & Chief Economist, Morgan Stanley.

IBEF also participated in the visit of a high

profile media delegation from the US, organisedby the Johns Hopkins University under the

International Reporting Project.

IBEF continued to evolve its strategy to partner

leading Business Schools by facilitating their

inward visits into India. In 2004, IBEF partnered

Wharton, Harvard and MIT Sloan among other

schools, which brought in delegations ranging

from 50 to 100 people.

Such immersion programmes enable studentsfrom these schools meet a slew of Indian policy

makers, industry captains and ordinary people

giving them insights into the emergence of the

Indian economy on the global scene.

In September 2004, 80 students from Wharton's

executive MBA programme came to India.

IBEF frequently assists global events in India.

It was one of the main organisers of the

Organisation for Economic Cooperation

and Development (OECD) Global International

Investment Forum (GFII) held in New Delhi inOctober 2004.

The core agenda of the OCED-GFII event

was to initiate dialogue between policy makers,

business and industry from OECD and

non-OECD countries on the role of

international co-operation to enhance the

business environment and maximise the benefits

of investment in developing countries, with

a focus on India.

Following the spate of

successes of these

programmes and events,

IBEF has designed a

formal programme titled Experience Indiathat

will provide a better understanding

of the change and transformation in India.

The programme will be marketed aggressively

to global business and media communities and

will include facilitating visits by policy makers,

venture capitalists, journalists, business

delegations and business school students.

IBEF expects exponential growth in 2005, both

in terms of the number of visitors as well as

events in India and is engaged with several

organisations to ensure a managed experience in

India. It will do so by organising meetings with

business leaders, policy makers, opinion leaders

and news makers. It will organise visits to

company sites, factories and BPO facilities to

expose visitors to diverse aspects of the society

and culture of both urban and rural India. Special

visits to heritage sites like the Taj Mahal in Agra

and tourist destinations such as Goa will be very

much a part of the agenda.

IBEF's approach has been to use a combination

of communication and marketing strategies to

engage global business and media communities.

This has also helped identify successful

strategies that will be scaled up in 2005.

IBEF leveraged its participation in several global

events, to promote Brand India through

placement of promotional material at stalls,

STRATEGIC MARKETING

Tactical Promotion


EXPERIENCE

INDIAPROGRAMME

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section, the Business Standard's Strategist

section, the Financial Express, The Hindu

Business Line and in leading business magazines

such as Business Today, Business World, WEF's

Global Agenda, CII Communique, India NOW.

magazine and the IETF 2005 Catalogue.

The online campaign was focused on popular

Indian websites such as www.ndtv.com ,

www.rediffmail.com, www.economictimes.com,

www.sify.com, www.indiainfoline.com. The

initiatives resulted in a visible increase in the

popularity of the website.

In the coming year, IBEF plans to roll out

a campaign titled Served from India across

global markets. This flagship initiative is

expected to provide a major boost to the

countrys exports as well as inward investments

in key sectors by highlighting the quality and

cost advantages of sourcing a variety of services

from India.

In 2004, IBEF successfully launched two different

e-Newsletters, both of which can be subscribed

to, free of cost, by signing up on the IBEF

website. The first, titled India NOW, is a

weekly focused on providing a wrap up of all

the positive developments in the economy and

industry. The newsletter already has over

10,000 subscribers. The second newsletter,

titled India-Invest NOW, is focused on directforeign investment in India and goes out

fortnightly to a global database. Launched in

January 2005, this newsletter focuses on

providing information on FDI specific trends,

the investment climate in Indian states, projects

available for FDI, the latest on investment

commitments across sectors, case studies of

MNC experiences in India and analysis on

investments in India.

The IBEF website also has a daily news alert

service that covers daily news and success

stories. The alert currently has over 5000

subscribers.

Direct Marketing

IBEF launched a monthly magazine targeted at

global business and media communities at the

World Economic Forum, Davos 2005. Titled

India Now A Perspective, the publication is a

free, subscription-based magazine. It attempts to

communicate the India Story in a powerful and

lucid way by capturing current trends andopportunities across sectors.

With a print run of 10,000 copies, India Now:

A Perspective, reaches out to senior business

managers in India and overseas, foreign

institutional investors, policy and decision

makers, international trade and business

promotion agencies, international and domestic

media, Indian missions abroad and foreign

missions in India.

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FINANCIAL UPDATE

Monitoring of Loans

IBEF Fixed Deposits

IBEF was granted exemption u/s 12 A of the

Income Tax Act. This enables IBEF to

continue to get Income Tax exemption on its

income subject to fulfilling the conditions of

the Act.

The Management Team continued to monitor

the loans given to the five companies, with the

assistance of M/s B R Maheshwari. Only two

companies, M/s HMT (International) Ltd and

M/s K G Denim, have been regular with their

repayments of Principal and Interest amount.

The other three companies have huge

outstandings towards IBEF and on the advice of

the IBEF Board of Trustees litigation processes

have been initiated against them. The companies

are M/s Visudhdha Rasayanee Pvt Ltd, M/s

International Creative Foods Ltd and M/s Clutch

Auto Ltd.

The legal proceedings with the assistance of

IBEFs lawyers, M/s Amarchand Mangaldas are at

different stages.

The corpus of the Trust continues to be

invested based on the decisions of the

Finance Committee of IBEF comprising of

Asha Swarup, Chairperson of the Committee

and Additional Secretary & Financial Advisor;

S S Kapur, Joint Secretary, Ministry of

Commerce; and Ajay Khanna, Chief Executive

Officer, IBEF, and Dy. Director General, CII.

The CII Finance department manages the IBEF

investments.

Are the efforts paying returns? The answer is

affirmative. IBEF has been undertaking an

international media tracking exercise wherein it

regularly analyses India content in leading

international journals. The analysis reveals that

there has been a sustained increase in overall

coverage on India and on the performance of

Indian economy and industry. More important,

the coverage has been more positive than

negative, with successful Indians and Indian

companies regularly highlighted.

The more intangible benefit is the sustained

increase in curiosity and interest by global

business and media communities in India.

The IBEF will continue to build and convert this

interest into engagement, towards the goal of

ensuring Indias position as the worlds fastest

growing free market democracy.

The Pay off

Next IBEF plans to undertake a series of

roadshows to global markets with the objective

of proactively seeking out investment and

building the business brand of India. In 2005,

IBEF will partner CII-led missions, to several

global markets including the USA, UK, Latin

America etc.

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This is India in the 21st century...

Rapid all round growthGlobalisation

Leading on the Strength of Intellectual Capital

and the unbridled Spirit of Entrepreneurship...

Democracy the Permission and Right

to be Different the Synthesis of Structure

and Non-linearity that together fuel the Quest

for Knowledge and provide the Impetus to Growth.

4

4

4

4

4

4

Over 6.5% average annual GDP growth over the past decade

Foreign exchange reserves of over US$ 140 billion

Fastest growing population of workers and consumers

Fastest growing telecom market

Huge investments in infrastructure development

Leadership in knowledge based industries

www.ibef.org

IBEF Vision

How India Won The 2020 Olympic Games

Dateline: September 2014

India began the 21 century with

more concern than hope.

International Olympic Committee voted unanimously

Many international personalities lobbied for Indias bid,

global board meetings in India.

World Economic Forum of 2008, held in Srinagar,

single-mindedness with which various organisations and government

departments,

such stories about India have been one pleasant surprise after another

From many quarters over the last decade we have heard similar stories.

It was a surprise to many that India would ever host the Olympic Games. With a population growing

out of control, development stalled, and reforms spotty at best,

How India won the Games is a story of the countrys journey.

The in accepting Indias bid to host the

Games. Unanimity in the IOC is a rarity.

from ex-President Mr. Bill Clinton and PepsiCo chairperson Ms. Indra Nooyi to Oscar-winner Mr. Aamir

Khan and UN Secretary-General Ms. Kripalani Sen. Their voices were added to the leaders of over 400

Fortune 500 companies who have held their

The Olympic idea was first mooted at the

India, a recognition of the countrys emerging economic position. Delegations from around the world

were surprised at the ultra-modern airport, the connecting arteries, the urban organisation, and most

importantly the

both state and central, came together to host the event. It was, according to many, the

best organised and most fruitful meeting in recent memory.

In the last decade, .

India has become the centre of quality leather and garments with designs that lead the fashion world.

Its unquestioned strength in Information Technology became the backbone of a services economy,

which, despite lower-cost competitors, grew at a torrid pace. Today, many core functions such as R&D,

Prototyping, and CRM are done in India. This proven intellectual ability quickly spilled over into other

sectors, such as legal services, health care, and education. Many Indian corporates have become global

giants and many Indian leaders have become contributors to the worlds intellectual capital.

None of this is news.

What may be not so well known is the story of how India came to this place. That story is also the story

of the India Brand Equity Foundation (IBEF) ...

st

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www.ibef.org

IBEFs logo seeks to symbolise India in the 21st centuryrisingto challenges, tirelessly striving and transcending new frontiers.India - an idea unbounda bird without a cageits only canvas

is the skylimitless and expanding

The spirit of IBEF is akin to that of a bird, forever seeking greaterheightsaltitude, symbolising progressit mirrors the achievementsand aspirations of a generation of Indians that is alive to globalopportunities and aware of its abilities

Blending skill with an indomitable spirit of enterprise, Indiansbreathe life into India - the fastest growing free market democracyin the world.

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