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Index Contents

Index

President’s Message ............................................................................................................................... 5

From the Secretary General’s Desk ......................................................................................................... 7

Happenings at IACC ................................................................................................................................ 8

US investments in India ........................................................................................................................ 23

U.S. based real estate development & Investment Company Portman plans to raise $300 million in India realty fund23

New York based WFA Global invests in Hyderabad-based personal financial services start-up .................................... 23

Blackstone offers to buy Vijay Mallya's office, retail blocks in UB City for Rs 550 crore ................................................ 24

Pittsburgh based Mylan Labs to buy SMS Indian manufacturing unit for $33 million ................................................... 25

GE to invest Rs 331 lakh in research & engineering ....................................................................................................... 25

Blackstone Capital Partners to buy 12.5% stake in International Tractors Limited for Rs 520 crore ............................. 26

Agilent Technologies ties up with Vizag Company ......................................................................................................... 27

Bharti Walmart opens 2nd store in Bhopal ...................................................................................................................... 27

Autodesk acquires Pramati's Qontext ............................................................................................................................ 28

Virginia Tech research center to open in 2013 in India .................................................................................................. 28

U.S based PE firm Blackstone inks India’s biggest commercial real estate acquisition deal .......................................... 29

Amway to set up R&D Centre for health, beauty segments ........................................................................................... 30

Harley Davidson eyes smaller Indian towns to expand footprint ................................................................................... 30

Private equity firm GE Capital pays Rs 125 crore for 7.7% stake in Biocon Syngene ..................................................... 31

Harman to set up manufacturing facility in Pune ........................................................................................................... 32

GM to expand capacity at Halol ...................................................................................................................................... 32

Mayfield invests in Indian incubator AngelPrime ........................................................................................................... 32

India’s Investments in U.S ..................................................................................................................... 34

Hinduja firm Gulf Oil Corp buys US-based Houghton International for $1 billion .......................................................... 34

Sun Pharma inks pact to buy DUSA for $230 million ...................................................................................................... 34

MphasiS buys US mortgage management firm for $175 million ................................................................................................... 35

Persistent Systems Acquires Innovative Cloud Platform Business from Washington based Doyenz, Inc. ..................... 35

Sahara buys 2 iconic NY hotels - New York Plaza, Dream New York .............................................................................. 36

MindTree opens development centre in Florida ............................................................................................................ 37

Infosys unit to buy unit of Marsh & McLennan .............................................................................................................. 37

IBS Software Services Acquired US Hotel Booking Solution ........................................................................................... 38

Jindal Poly Films to acquire ExxonMobil unit .................................................................................................................. 38

Indo-US Corporate News ...................................................................................................................... 39

Subway plans 1,000 stores in 5 years ............................................................................................................................. 39

Bharti Walmart opens outlet in Rajahmundry ................................................................................................................ 39

India's Ranbaxy launches acne drug in US ...................................................................................................................... 40

Punjab asks Monsanto to set up a R&D center for maize crop in state ......................................................................... 40

MWV Will Acquire Ruby Macons Ltd. to Accelerate India Growth Strategy .................................................................. 40

Domino's India aims to be largest franchise outside US in 2 years ................................................................................ 41

Voltech, NanoPV venture to build solar module plant near Chennai ............................................................................. 42

Intel looks to modernize PDS retailing in Gujarat ........................................................................................................... 43

Citi Expands Express Wire Asia Program with India Desk ............................................................................................... 43

DuPont expanding Hyderabad knowledge centre .......................................................................................................... 44

Special Report ...................................................................................................................................... 45

India’s coffee market competition is ferocious: Howard Schultz, Starbucks.................................................................. 45

OVL (ONGC VIDESH's) wishes to have an integrated presence in the US ....................................................................... 46

In the News: ......................................................................................................................................... 49

Indian companies created 50,000 jobs in US, says Deputy Secretary of State William Burns ....................................... 49

US immigration reforms: Indians want Obama to cut long wait for green cards ........................................................... 50

US Working With India for Increased Defense Cooperation .......................................................................................... 51

India, US discuss ways to lower barriers to trade, investment ....................................................................................... 52

State’s Burns Cites Strategic, Economic, People Ties with India .................................................................................... 53

Gujarat IT companies diversify operations in US ............................................................................................................ 54

US-based investor plans start-up school in Kochi ........................................................................................................... 54

US explores treaty to nail US tax defaulters in India ...................................................................................................... 55

Indian-American professor appointed as the first director of digital learning at MIT ................................................... 57

India big part of his plans, Barack Obama tells Manmohan Singh ................................................................................. 57

US department of agriculture pegs India's coffee exports at 5.51 million bags ............................................................. 58

Norms relating Indian defense technologies need reform: Powell ................................................................................ 58

US strongly values strategic partnership with India, says State Department spokesman ............................................. 59

US fiscal cliff won't impact Indian IT sector: Nasscom .................................................................................................... 59

Visa interview waived for four more categories, says US envoy .................................................................................... 60

India's Bold Solution to the U.S. College Crisis: Federal Universities ............................................................................. 61

India an important strategic partner of US: Ami Bera .................................................................................................... 62

FDI in retail will benefit consumers in India: Nancy Powell ............................................................................................ 63

After Atlanta, India now working to open Consulate in Seattle ..................................................................................... 63

Stanford B-school to start course in India ...................................................................................................................... 64

The Shale Gas Revolution in America: An Opportunity for India .................................................................................... 66

Calendar of IACC Events for 2012 .......................................................................................................... 68

Indo-US Trade Statistics ........................................................................................................................ 69

2012: U.S. Trade in Merchandise goods with India ........................................................................................................ 69

2011: U.S. Trade in Merchandise goods with India ........................................................................................................ 69

India – US Trade Analysis ...................................................................................................................... 70

International Trade shows .................................................................................................................... 71

US Department of Commerce Certified Trade shows in U.S.A ....................................................................................... 71

International Buyer Program, 2013 Trade shows ................................................................................... 74

US Department of Commerce Certified Trade shows in India ........................................................................................ 76

Major Trade shows in India ............................................................................................................................................. 78

Major Trade shows in U.S.A ............................................................................................................................................ 80

How to reach us: .................................................................................................................................. 84

Get Social with the Only Bilateral Chamber of Commerce for Indo-US Business, IACC ................................................. 84

President’s Message

Dear Members, The convincing re-election of President Obama signifies the continuity of policies and programs. Equally lauded was his assurance given to Indian Prime Minister Dr. Manmohan Singh that India -focus of the US Administration will be guided by pragmatism and the important roles both countries play in the global arena. One can expect that the economic partnership between the two countries will be heightened in the light of many positive developments that are taking place in both countries. Let me touch on some unconventional segments that the US-India engagement will be beneficial. Urban transport, railways, particularly movement of freight traffic and housing and townships are major sectors that can draw considerable US investment into India. Urban transport in India needs to be toned up to ease the pressure on the existing networks. Overcrowded buses choked up roads, over-aged vehicles etc. are some of the banes of Indian transport landscape and such problems are more crucial in towns and cities. Foreign investment is allowed in the sector but not many have come forward to invest in this sector. Lack of policy clarity, bureaucratic delays, inadequate protection to the assets and rolling stocks etc. are perceived to be reasons that are holding back not only FDI but also investment from the Indian private sector. Metro or mass rapid transport systems are the order of the day to de-congest the cities and to ensure quality transport systems. We have world- class metro systems in Delhi, Kolkata and the projects in cities like Mumbai, Chennai and Bangalore are at various stages of implementation. There is considerable scope for private- public partnership in building these networks. The US presence in the implementation and in providing rolling stocks to metro networks is virtually nil. Japan is providing funds and the rolling stocks are procured from Korea and Germany. This is an area where there can be focused attention of the US corporations, since such projects are not only implemented in time, but also even before time. Dedicated freight corridors are going to redefine the goods movements in India. Eastern and western corridors will be completed by 2016 and the feasibility study for the next four corridors will be completed by the end 2013. Several billions of dollars have already been invested in the corridors where the works have already started. World Bank and Japanese development agency, JAICO are funding the projects which provide excellent opportunities for private investment. For instance, in the eastern and western corridors, around 150 kms of land will be developed along the side lines of the track, which will ensure world class logistics to manufacturing units that will come up there. US firms can take advantage of these emerging opportunities. Finally, in the realty sector, the US investment is mostly in terms of PE investment. But Indian laws allow investment in the development of townships and satellite towns subject to certain area restrictions. Since the cities are becoming

saturated, people and offices are relocated to areas that are less populated but closer to the cities and townships. There will be huge demand for houses and office space in such townships. Economists predict that key players, which can help bottoming out the slowdown and pave the way for recovery and consolidation are the US, India and China, because of their continental market, strong industrial base and command and dependence on technology. That also presupposes newer paradigms of co-operation and engagement among these countries. Therefore, as President Obama enters a new term in office, we hope that India and U.S can take its relationship to greater heights for mutual benefit. Shourya Mandal National President, IACC

From the Secretary General’s Desk

Dear Members, According to the recent statistics released by the US Department of Commerce, the total Indo-US Trade in Merchandise goods for the first nine months of Calendar year 2012 (January-September) is US$ 47.53 billion with balance of trade surplus of US$ 15 billion in favor of India. This is an increase of 9.54 % over the same period last year. US Exports to India have gone up by 2.54 % from US$ 15.86 billion to US$ 16.27 billion and US Imports from India have gone up by 13.59 % from US$ 27.52 billion to US$ 31.27 billion during the same period. IACC officials met with Mr. Sumit Bose, Revenue Secretary, Ministry of Finance, GOI along with his team on November 30, 2012 to present IACC’s Pre-Budget Memorandum 2013 with recommendations on Direct and Indirect Taxes. The IACC team was led by Mr. S.K. Sarkar, Chairman, Economic & Finance Committee of IACC for the year 2012-13 other members who joined the IACC delegation included Mr. Naveen Aggarwal and Mr. Naveen Gupta, Partners KPMG, Mr. Atul Vyas, Regional Director, NIC and Myself. The GOI officials from the ministry were very receptive in the interactive meeting which lasted for one and half hour. We are very pleased that many of the recommendations submitted by IACC are being considered and hopeful that it will be accepted and implemented. We thank all the members who have contributed by providing their inputs and sent their recommendations and also KPMG for preparing a consolidated document and joining the meeting. We are pleased to announce the release of IACC membership Directory 2012 which is available with our regional and branch offices. This issue covers regular features like Indo-US Corporate News, Happenings at IACC, International Buyer Program- 2013 Trade shows, Indo-US Trade Statistics, IACC’s upcoming events, International trade fairs in USA & India amongst others. This newsletter is an attempt to further the cause of increasing trade between Indo-US Business Houses. If you have any success stories of your company with US partners on joint ventures, mergers & acquisition etc., please do let us know. We will be happy to carry a case study on your company’s success in the newsletter. Hope you will find this issue informative and useful. With regards, R.K. Chopra Secretary General, IACC

Happenings at IACC Head Office Breakfast Meeting with Washington State Governor Ms. Christine Gregorie on October 8, 2012 at Taj Lands’

End, Mumbai The Indo-American Chamber of Commerce (IACC) organized a breakfast meeting with Washington State Governor Christine Gregoire and the accompanying business delegation on Monday, October 8, 2012 at Garden View Room, Taj Land’s End, Mumbai. Self-introduction was done by IACC members followed by the delegates. Mr. R.K. Chopra, Secretary General (IACC) briefed about IACC and the business opportunities in Education and Biotechnology sectors, which were of interest to the visiting delegation. Dr. L S. Kanodia, Regional President – WIC gave his welcome remarks and spoke about the political and economic climate in India. He also spoke about the opportunities for enhancing INDO-US Trade.

Governor Gregorie said that the two-way commerce is low between the two sides. "We find that India is the 24th largest trading partner with our state. We think it is way too low, it should be at least in the top five. My visit here is to make sure that we can make that happen." She said that businessmen of both the sides can increase cooperation in areas like IT, pharmaceuticals, aviation, life sciences, biotechnology and agriculture. "We have one of the vibrant IT and software sector in the world. This is an opportunity for India," she added. She also said that Seattle-based coffee chain Starbucks will open its first store in India by end of this month. "Now it (Starbucks) is located everywhere around the globe and it will open its first Starbucks here in Mumbai at the end of the month."

This was followed by Q&A sessions on various matters relating to various industry sectors, taxation, visas, etc. Mr. Anand Trivedi, Regional Director WIC, proposed the vote of thanks and Dr. Kanodia presented a memento to Governor Gregoire on behalf of the Chamber.

Mr. Anand Trivedi, Regional Director, IACC-WIC, Washington State Governor, Christine Gregoire and Dr. L. S. Kanodia, Regional President , IACC-WIC

(L- R) Mr. Robert Holland, Commissioner, Port of Seattle; Mr. Anand Trivedi; Mr. R. K. Chopra, Secretary General – IACC; Ms. Christine Gregoire & Dr. L. S. Kanodia

Mr. R. K. Chopra(Center) & Dr. L. S. Kanodia (Right) handing over the

memento to Ms. Christine Gregoire Governor Christine Gregoire addressing the audience

West India Council IACC Supports "Media & Entertainment Law Forum 2012" organized by the Legal Era on October 06, 2012 at

JW Marriott Hotel, Mumbai

Mr. Anand Desai (Extreme Left), Immediate Past National President, IACC & Managing Partner, DSK Legal moderating a session on copyright issues and their widespread impact, also present on the forum among other panelists is Mr. Lalit Bhasin (Second from

Right), Regional President, IACC-NIC & President, Inter Pacific Bar Association(IPBA) & Society of Indian Law Firms(SILF)

The Guest of Honor Mr. Lalit Bhasin, Regional President, IACC-NIC & President, Inter Pacific Bar Association (IPBA) and Society of Indian Law Firms (SILF) presenting a special address at the forum, also present on stage are special guests Mr. Anil Kapoor (Third

from Right), Film Actor and Mr. Mukesh Bhatt (Extreme Right), Indian Film Producer

IACC hosted its 7th “Breakfast Meeting” on October 11, 2012 at Hotel Marine Plaza After having completed 6 Breakfast Meetings successfully, there were several prolific speakers who provided us with interesting insights on varied topics across various industries. The 7th meeting bore witness to an enlightening discussion about the dawn of the software industry in India. The meeting was addressed by a pioneer of this field who was both directly and indirectly responsible for the establishment and development of the IT sector in India today - The Founding CEO of TCS and the Chairman of Datamatics Global Services Ltd.; he was none other than Dr. L.S. Kanodia himself. Dr. L.S. Kanodia was introduced by Mr. Naushad Panjwani (IACC Committee Member-WIC). He shared precise figures with respect to the contribution of the IT sector to the Indian economy, employment statistics and even exports revenues. He shared several personal experiences and discussed the evolution of the IT industry from 1965 till date. It was fascinating to hear him elaborate on how TCS grew over the years along with details about the pivotal role that he himself played in the progress of the IT industry as a whole. Dr. Kanodia also shed some light on the barriers that the IT sector faced along with solutions which included the liberalization of our economy in 1991, the formation of Nasscom, rules, regulations and procedures of the Indian government. After a detailed, comprehensive and informative discussion Dr. Kanodia stressed on the fact that India’s IT sector has indeed grown substantially, but there is still a long journey ahead. The meeting was concluded after an interactive discussion with the guests who had several questions for the IT stalwart.

Dr. L. S. Kanodia presenting an overview to the attendees on India’s software journey and the road going forward.

Dr. Kanodia receiving a memento from Mr. Naushad Panjwani, Committee Member, IACC-WIC & Executive Director, Knight Frank India on behalf of IACC.

IACC hosted the 3rd Commemorative Dinner in celebration of 4 years of civil nuclear co-operation between the United States of America & India at the US Consulate (BKC), Mumbai on October 11, 2012.

(L-R) Mr. Anand Trivedi, Regional Director, IACC-WIC; Dr. L.S. Kanodia, Former Regional President, IACC- WIC; Dr. S.K. Bannerjee, Former Chairman - Atomic Energy Commission of India & the Secretary of Department of Atomic Energy - DAE and Mr. Donald

Hoffman, Vice President, American Nuclear Society.

IACC Supports, 2nd Indo-US Nuclear Energy Safety Summit 2012 on October 11-12, 2012 at IIT Powai, Mumbai

The American Nuclear Society and the India Section of the American Nuclear Society along with their partners had organized the 2nd Indo-U.S. Nuclear Energy Safety Summit 2012, The summit included 5 TRACKS for student, companies, public affairs, radiation training, and public awareness. The Summit also included the 3rd U.S. Nuclear Infrastructure Pavilion as well as an exhibition for Indian and international companies. The Summit had been timed to coincide with the 4th anniversary of the transformational Indo-U.S. Civil Nuclear Agreement, which was 3rd commemorated at a dinner hosted by IACC at the US Consulate.

Dr. Alok Mishra, Deputy Director of Westinghouse addresses the audience

Pune Branch Innovation@Breakfast” Session – 11 on “Visual Thinking as an Innovation Tool”

Innovation@Breakfast conducted the 11th Session of the Series on Tuesday, October 23, 2012 at Hotel Deccan Rendezvous, Pune. The topic for the Session was “Visual Thinking as an Innovation Tool”, & presented by Mr. Dhruv Agarwal & Mr. Kush Agarwal. The session was an interactive Session & revolved around Innovation which requires creativity, imagination and design thinking, and visual thinking techniques as an essential tool for that kind of work.

Speaker – Mr. Kush Agarwal is an Airline Pilot with Jet Airways. He covered the following topics at the Session.

• Why Innovation is important in today's Business Environment • What is Innovation - A breakdown of what it really means today? • What is Whole Brain Thinking - Why is it essential for Innovation • The Power of Visual Thinking explained • Visual Thinking Methods and Tools for Innovation

Speaker: Mr. Dhruv Agarwal, Director at Autopress India Pvt. Ltd & is a ThinkBuzan Licensed Instructor for Mind Map®s. He covered the following topic at the Session.

• "Most Important Graph in the World" - A graph on how we learn and behave and its impact on Productivity, Leadership and Innovation

North India Council IACC-Citi Bank Knowledge Series on October 19, 2012 in New Delhi

The Indo-American Chamber of Commerce organized an IACC- Citi Bank Knowledge Series on October 19, 2012 in, New Delhi. Mr. Kumud Gandhi, Assistant Vice President, Commercial Banking, Citi Bank made a presentation “Commercial Bank – Banking Solutions for SMEs Update on Regulatory Framework and FEMA Guidelines” Topics covered Citi India: Snapshot

Foot print: Present in India since 1902 Introducing innovative / New Products & Services Citi India - Industry Leadership

Export Import – FEMA Update & Foreign Exchange Risk Management Update on Regulatory Framework and FEMA - 2012 Foreign Exchange Markets – Forecast Hedging – Factors Considered

Citi Commercial Bank Full Services Banking Product Suite – Comprehensive Banking Solutions

Citi Commercial Bank Products: Key Features Transaction Banking: Cash Management Trade Services and Trade Finance Foreign Exchange Services Citi FX Pulse Commercial Lending Citi India : Credentials

Mr. Kumud Gandhi, Assistant Vice President, Commercial Banking, Citi Bank making a presentation on “Commercial Bank – Banking

Solutions for SMEs Update on Regulatory Framework and FEMA Guidelines”.

South India Council Tamil Nadu Branch

IACC-TN Branch Organized an Interactive session on “Compete and grow, globally” held on October 08, 2012, at Hyatt Regency, Chennai

IACC – TN Branch in partnership with Microsoft & Nokia organized an Interactive session on Compete and grows, globally. Ms. Jennifer A McIntyre, US Consul General, Chennai inaugurated and delivered the Chief Guest address. In her address Ms. Jennifer said that 39 states in the US have signed a strong resolution to combat unfair trade practices in manufacturing by preventing usage of illegal or stolen Information Technology by using their existing state unfair competition laws. She further said that US wanted to help India have a strong system of Intellectual Property Protection, especially in the IT sector.

Ms. Jennifer quoted by saying a report from the Organization of Economic Cooperation and Development (OECD) estimated that trade in counterfeit and pirated goods across national borders may have totaled around $200 bn. She said that the enforcement of Intellectual Property Rights (IPR) strengthened the investment climate to attract and retain innovative companies and creative artists that were the engines of economic growth.

The technical session was presented by Mr. Sunil Singh, Senior Consul-Sai Krishna & Associates on Unfair Competitions Act and doing business the right way, which was followed by a presentation on Competing and growing globally using the right technology by Mr. Anish Roy, Regional Head-NOKIA Business Enterprises & Mr. Ashish Uchil, Business development Manager-Microsoft Corporation. The programme provided a platform for participants to learn about IPR, patent rights, mobile application Integration and the need for anti-piracy law from the presentation. Overall the session was informative and valuable as it gave an insight on using the right technology at the right time for best practices.

Ms. Jennifer A McIntyre, US Consul General, Chennai addressing the gathering. Also seen (L-R) Mr. T N Venkatanarayanan, Chairman & Mr. C Suresh Reddy Vice-Chairman, IACC Tamil Nadu

Presentation on Unfair Competitions Act and doing business the right way in U.S. by Mr. Sunil Singh Senior Consul, Saikrishna & Associates.

Breakfast meeting in honor of the visiting delegation of the U.S Architecture Services Trade Mission to India

on October 15, 2012

From (L-R)- Mr. Abdul Azeez Vice Chairman, IACC-TN; Ms. Jude Reinka, Senior Commercial Officer,U.S Embassy -New Delhi; Mr. T N

Venkatanarayanan Chairman, IACC-TN; PadmaSri. C. N. Raghavendran Partner, C.R.Narayana Rao Architects

Talk on Overview of Architecture Scenario in India by Padma Shri C N Raghavendran, Partner, C.R.Narayana Rao Architects & Engineers. Also seen (L-R) Ms. Jude Reinka, Senior Commercial Officer, U.S Embassy -New

Delhi, Mr. T. N Venkatanarayanan Chairman, IACC (TN) and Mr. R Murari, Senior Attorney, Chennai

Breakfast Meeting with Mr. K. Srinivasan, MD, Prime International India Pvt. Ltd. on October 16, 2012

Mr.K .Srinivasan,Managing Director-Prime International is addressing the gathering at the Breakfast meeting- Meet Success First

Hand. Also seen are Mr. T. N Venkatanarayanan, Chairman and Mr. Abdul Azeez Vice Chairman, IACC – Tamil Nadu

Memento presented to Mr. Srinivasan.

Karnataka Branch IACC Organized a Session on Talent Management - Myths & Insights on October 19, 2012 at Club Lounge

Fortune, Bangalore. Indo American Chamber of Commerce organized a successful session on Talent Management at the Club Lounge Fortune, Select J.P. Cosmos, Off Cunningham Road, Bangalore on October 19, 2012. The event was a great success and it was extremely well received by the participants who expressed great enthusiasm in regards to the myths of talent management. There was a good turnout for the session, like Avasarala Technologies Ltd., Crown Relocations, Datascribe InfoTech Pvt. Ltd., Moog India Technology Centre Pvt. Ltd. and Indolox Services Pvt. Ltd., etc. to name a few. Mr. V Srinivasan, Director, SJS Enterprises Pvt. Ltd. and Chairman of IACC introduced the speaker. The objective of the seminar was twofold. The first was to focus on the myths of talent management and the second objective was to provide some insights of talent management. In Mr. Ramesh Dasary’s opening address, he explained about talent management that it has become top-of-mind for most corporate executives and organizational leaders today. Talent management—or components thereof—has been one of the most popular cover stories for trade and business publications, from Harvard Business Review to the daily business newspapers, in recent times. The participants gained knowledge from Mr. Dasary’s presentations on various kinds of myths related to talent management, such as; talent management is non-strategic, people make organization smart, size matters, people are born with all the natural talent and the abilities, the south pole theory (hire those who performed at the top of their academic classes), managers do what they are expected to do, your business's future leaders will come from your existing pool of high-performing managers, high performers are always high potential, people grow most in their weakest area, you decide the CTC and performance motivator is money. At the event, everyone seemed to really enjoy themselves with the informative session of Mr. Dasary which also included an animated video clip from Dan Pink's talk at the RSA, which illustrated the hidden truths behind what really motivates a person at home and in the workplace. Ramesh Dasary is the Consultant and Founder of Improwise, an endeavor he started, with a view to help the MSME scale up, through transformational Talent Management initiatives in the organizations, having held leadership roles in large MNCs for over 20 years.

Mr. Ramesh Dasary, Consultant and Founder, Improwise delivering the presentation.

Mr. Ramesh Dasary being facilitated by Mr. V Srinivasan, Chairman of IACC Karnataka Branch & Director, SJS Enterprises Pvt. Ltd.

US investments in India

U.S. based real estate development & Investment Company Portman plans to raise $300 million in India realty fund

US-based real estate development and investment company Portman Holdings is looking to raise up to $300 million (over 1,600 crore) worth of third-party capital to invest in Indian property markets, said a top company official. The company will raise these fundsin overseas markets beginning first half of 2013 and deploy the entire corpus in the next 30 months once the fund raising is concluded. Apart from these third-party funds, Portman will also continue to invest its own capital into Indian real estate. "We are bullish on India apart from US and China. Even at 6% growth, India will be the second-fastest growing economy amongst the larger ones. Our existing two investments here that we made since 2009 have been performing well with positive returns," said Ambrish Baisiwala, CEO, Portman. So far, Portman has invested $160 million (860 crore) in Pune-based Kolte-Patil Developers' two projects. Both are residential projects with total development of 1.8 million sq. ft. in Pune.

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New York based WFA Global invests in Hyderabad-based personal financial services start-up

ArthaYantra, a Hyderabad-based integrated personal financial services start-up, on Tuesday said it has raised seed capital from US-based investment firm WFA Global Investments. However it did not disclose either the quantum of funds raised or the stake picked up by the US firm. The company, which has been founded by a group of ISB Hyderabad alumni, uses its unique proprietary framework, trademarked as Personal Financial Lifecycle Management (PFLM), and employs patented processes that help individuals achieve their financial goals. The company plans to further develop its proprietary technology and also expand its team that currently stands at over two dozen people. The company also plans to expand operations across six major cities of Hyderabad, Bangalore, Delhi, Chennai, Mumbai and Pune. According to the company, it was focused on launching its new solutions and was currently engaged in increasing its financial research capabilities by building systems and processes based on existing patents that it holds and is now piloting its innovative personal finance solution in beta with select group of customers. ArthaYantra's clientele includes individuals from India, US, Europe and Middle East. Commenting on the development, ArthaYantra founder and CEO Nitin B Vyakaranam said that the current round of investment was a testament to the global appeal that its solutions carry. "In India, we plan to take personal financial services to a greater cross-section of the population by coming out with unique and thought provoking services. We believe that a vast majority of India's middle income population does not have access to formal personal financial services, and our solutions would fill this gap." New York-based WFA Global Investments managing director Dr. Ravi Bhagavatula said: "With the backbone of patented and scalable personal finance solutions along with its disruptive business model, ArthaYantra has the potential to achieve global scale. The Indian market has a promising 'middle of pyramid' opportunity and ArthaYantra could prove to be a game changer in the personal finance industry."


Blackstone offers to buy Vijay Mallya's office, retail blocks in UB City for Rs 550 crore

Blackstone's offer for the 3.7 lakh square feet of UB City's commercial space and 75,000 square feet of luxury retail space comes at around Rs 550 crore

Private equity giant Blackstone has made an offer to Vijay Mallya's investment holding company UB Holdings to buy out the prime office and retail real estate blocks in its flagship UB City, the biggest commercial property project in the heart of Bangalore, said two people familiar with the developments. Blackstone's offer for the 3.7 lakh square feet of commercial space - home to many MNC offices such as Apple, Citibank, Ernst & Young, 3M, Vodafone, Uninor, Jones Lang LaSalle - and 75,000 square feet of luxury retail space comes at around Rs 550 crore, less than what was initially estimated, said one of the sources mentioned above. However, the offer does not include the iconic UB Tower - the group's headquarters that are also part of the UB City Complex. The talks are still going on as some local builders and real estate funds have also shown interest. The matter is expected to be taken up shortly by senior UB Group management and even the UB Group lenders. With the Diageo-United Spirits deal in the bottle, the focus is now once again on the value-unlocking opportunity that lies with Mallya's real estate portfolio. Blackstone did not wish to comment on market speculation and a UB Group spokesperson did not respond to an email questionnaire on the issue. However, senior UB Group officials said even though the group has received offers from funds like Blackstone, the final decision will be taken by Mallya himself. "I do not think we have reached a firm decision yet. A couple of offers, some unsolicited, have come, but I do not think we are actively discussing with anybody," said a senior group official who did not wish to be identified.

Built on a 13-acre plot, UB City is a joint venture between Mallya's investment holding company UB Holdings and Prestige Developers. It has a total of 1.6 million sq. ft. mixed-use development comprising office spaces, luxury retail and hospitality. MUCH SOUGHT AFTER BY LUXURY BRANDS UB City has four towers - UB Tower (with 19 floors), Comet (11 floors), Canberra (17 floors) and Concorde (19 floors). Within the complex, the 1.25 lakh sq. ft. luxury retail space - The Collection -is the city's premier destination for high-end international and Indian luxury brands like Louis Vuitton, Mont Blanc, Gucci, Rolex and Kimaya, across categories such as apparel, jewelry, accessories and electronics. It will also house food and beverage outlets and the Kingfisher Sports Bar. Mallya owns the UB Tower while the 200,000 sq ft luxury hotel, Oakwood Service Residences, is owned by Prestige. The rest of the property is split between the two partners. Real estate analysts say Mallya's share of UB City is around 905,000 sq. ft., with UB Tower alone being 300,000 sq. ft.


Pittsburgh based Mylan Labs to buy SMS Indian manufacturing unit for $33

million Mylan Laboratories has agreed to purchase SMS Pharmaceuticals' manufacturing unit-VI in Visakhapatnam, Andhra Pradesh, India, for a total sum of INR1.73bn ($33 million). The manufacturing unit was designed for the production of cancer medications and the active ingredients for cancer drugs. SMS will use the proceeds to clear some of its existing debts, cut overhead costs, reported. In addition, SMS will use the finance to strengthen its existing production facilities and working capital. SMS Pharma, which is involved in active pharmaceutical intermediaries manufacturing, said the legal process would take a couple of months.


GE to invest Rs 331 lakh in research & engineering GE, adding 400 people every year for 10 years at the John F Welch Technology Center (JFWTC), will be expanding the capabilities of the center at an investment of Rs 331 lakh ($60 million). The investment, which is focused on expanding the technology center here, includes setting up experimental labs and its infrastructure includes leading-edge research and engineering in areas of critical importance, the company said.

The center would conduct research and engineering in cancer treatment and radiochemistry and other technology applications in healthcare, locomotive engines, heavy earth moving equipment and equipment for the energy sector, said Gopichand Katragadda , MD, GE India Technology Center (John F Welch Technology Centre). The center, established in September, 2000 here, is GE's first and largest integrated multi-disciplinary R&D and engineering center outside the US. Investing heavily in advanced IT-enabled laboratories, the center is among the leading engineering innovation across GE's diverse businesses. The GE's John F Welch Technology Centre is set to touch 5,000 employees by the end of the year, according to Katragadda. Meanwhile, over the last decade, the Centre alone has contributed to over 1,850 patents being filed by GE, the parent company. GE has been trying to get to 15-20 per cent savings in many of the devices it has been manufacturing. According to industry sources, the cost savings on many of the products through defeaturing has been to the tune of 50 per cent or more in many products. The company has particularly been aggressive in the healthcare sector. It has been able to remove two-thirds on the costs in the case of many devices. Meanwhile, the company is investing about $200 million in a manufacturing facility in Pune.


Blackstone Capital Partners to buy 12.5% stake in International Tractors Limited for Rs 520 crore

The Blackstone Group on Monday announced that its affiliate, Blackstone Capital Partners (Singapore) VI, has signed an agreement to acquire 12.5% of International Tractors Limited (ITL) in a structured transaction for up to Rs 520 crore, or $100 million. The flagship company of the Sonalika Group, ITL is a leading manufacturer of tractors under the brand name 'Sonalika'. It manufactures tractors from a power range of below 20 HP to over 90 HP. "There is significant amount of potential for Sonalika to grow in market share. In the last one year too, the company had increased its share," Akhil Gupta, Senior Managing Director and Chairman of Blackstone India told ET over phone. This deal is in line with Blackstone's past investments in the Indian agri sector. The private equity firm has invested in Nuziveedu Seeds and FINO, a micro-finance firm - companies that are adding value to the lives of the Indian rural population. India currently has one of the lowest agricultural yields in the world. Mechanized farming using tractors will enable huge improvement in India's agriculture productivity which is the private equity firm's rationale for investment in the firm. Incorporated in 1995, ITL has an annual turnover of $500 million. It currently has about 10% share in the domestic tractor market. In addition, ITL exports tractors to over 70 countries. "We believe in fundamentals, farm incomes are rising, minimum support prices are going up and with the shortage of labor, and there is a need for modernization. We expect the tractor market to grow by 10% CAGR over the next five years," Gupta reasoned on why Blackstone picked up a stake in a tractor manufacturer. Blackstone's MD said the company intends to stay invested for the next 5-7 years, a typical time frame for private equity firms to stay invested in a firm. Blackstone has been an aggressive investor in India, having acquired sizeable stakes in Gokaldas Exports, All Cargo and CMS Info Systems etc. "Blackstone has identified rural and agro-based companies as a key area of growth, and the investment in International Tractors is a step in that direction," Gupta said. ITL, founded by LD Mittal (Chairman), AS Mittal (Vice-Chairman) & Deepak Mittal (MD), is headquartered in Delhi while its core manufacturing plant is in Hoshiarpur in Punjab. "In addition to helping us scale up our operations, this deal will provide us access to Blackstone's global best practices," Chairman LD Mittal said. Over the last six months, when the overall growth rates of the industry has remained flat to negative, International Tractor Limited has posted a growth of 17% by selling approximately 25,000 units in domestic market, increasing its domestic market share by 1.5%, said the company. By November, the company also intends to enter UK,

France and Germany. It has already entered into a tie-up with a company in Turkey. "Blackstone is a globally renowned company. With their astute management support and global know-how, we would aim at faster growth in the future. This fiscal we are likely to close sales at around 60,000 units. Within the next couple of years, we intend to sell 1, 00,000 units," said Vice- Chairman AS Mittal. Mittal is eyeing a domestic market share of 15% in the next two years with an eye on a little over a billion dollars in revenue and $130 million in profits. Umesh Karne, auto analyst with BRICS Securities estimates the tractor market to decline by 4% in the short term and expects the market to remain sluggish in first half of next fiscal. He is however bullish on long-term prospects. "The fundamental for long-term growth remains intact. Despite the current slowdown, we expect the tractor market to grow by 10-12% CAGR on account of paucity of labor, rising minimum support price for farmers and lower tractor penetration in the country," said Karne.


Agilent Technologies ties up with Vizag Company Agilent Technologies, a US company which markets high-precision test and measurement solutions in the electronics field, has tied up with a local company, RKe Technologies to expand its reach in Andhra Pradesh and the southern markets. At a press meet here on Monday, country manager Sudhir Tangri said RKe Tech was a local company with two decades of experience in the field and “it will open up new avenues for Agilent, especially in the defence sector. The state-of-the-art technological solutions of Agilent coupled with the understanding of the local market provided by RKe will be mutually beneficial.” He said Agilent Technologies was the world's premier measurement company and a technology leader in chemical analysis, life sciences, diagnostics, electronics and communications. Worldwide, the company was employing 20,000 persons in more than 100 countries. Its net revenues amounted to $ 6.6 billion. Country General Manager Parmeet S. Ahuja said Agilent had set up a R&D facility at Manesar. There was no plan to set up manufacturing facilities in India right now, he added. C.V.S Prakash Rao, Managing Partner of RKe Technologies, said his company had a vast portfolio in embedded solutions, calibration solutions and micro wave test solutions. The tie-up would be of benefit to both companies and the clients would get better products and services. General Manager (Marketing) Gautam Awasthi also spoke.


Bharti Walmart opens 2nd store in Bhopal Bharti Walmart today opened its second wholesale store in Bhopal, making the Madhya Pradesh capital the only city in the

country where the group has set up two stores, its top official said.

Leading retail chain Bharti Walmart today opened its second wholesale store in Bhopal, making the Madhya Pradesh capital the only city in the country where the group has set up two stores, its top official said. "Encouraged by the huge response that we have got in Bhopal after setting our first store, the company has decided to open second wholesale store in Bhopal, thus making the state capital the only city in the country, where two such stores exist," Bharti Walmart COO Arvind Mehndiratta told reporters after inaugurating the store. The cost of setting up one such store is Rs 35 crore and the company has already established three wholesale units in the state, including one at Indore. The company has opened 20 stores in the country and is planning to open another four wholesale outlets in the current financial year, including in Jabalpur in Madhya Pradesh, he said. Welcoming the Centre's decision to permit FDI in retail, Mehndiratta said that it will further strengthen the retail business in the country as the traders will get quality products for their shops under one roof on actual rates and not have to depend on number of wholesalers for their requirements.


Autodesk acquires Pramati's Qontext The acquisition is expected to accelerate its ongoing move to the cloud and expansion of social capabilities in the Autodesk 360 cloud-based service. Nasdaq-listed Autodesk Inc. has acquired Qontext, enterprise social collaboration software, and its 25-member development team from Hyderabad-based Pramati Technologies for an undisclosed amount. The $1.95-billion Autodesk is a leader in professional and personal 3D design, engineering and entertainment software. The acquisition is expected to accelerate its ongoing move to the cloud and expansion of social capabilities in the Autodesk 360 cloud-based service. The Qontext team will operate from Hyderabad, a new development centre for Autodesk. “This transaction is a significant milestone in our ongoing efforts to incubate and build companies that address the rapidly changing needs of business,” Pramati president, Vijay Pullur, said. Autodesk director, Soren Abildgaard, said the team in Hyderabad was expected to grow significantly over a period of time.


Virginia Tech research center to open in 2013 in India Virginia Tech is poised to open its largest research center outside the United States next year in Chennai, India. The Virginia Tech ICTAS Innovation Center will be overseen by Tech's growing Institute for Critical Technology and Applied Science and a 6,000-square-foot facility is expected to open in spring 2013 in Chennai, said Guru Ghosh, associate vice president for outreach and international affairs. The university will provide up to $1.5 million in startup funds for operations, and industry partner MARG Ltd. will outfit the high-tech labs and provide other equipment. "For every one dollar Virginia Tech invests, our industry partners will invest five dollars," Ghosh said. The MARG Group develops and engineers industrial and government infrastructure projects in India, Singapore and China, according to the company's website. None of the startup money for the center will come from state funding, nor will it come from tuition or fees charged to students, Ghosh said. The center will focus on three major areas of research that will serve the needs of developing nations, as well as rural areas in the U.S., said Roop Mahajan, director of ICTAS. In the beginning, one researcher/professor will be assigned to the Chennai center to work with Indian doctoral students, with plans to eventually bring Tech students and other faculty there. Partnerships with major Indian universities and other private corporations are also planned. The initial research focus will be developing and testing low-cost energy technologies, such as small-scale, flexible solar panels and wind turbines that operate at low wind speeds. These may bring sustainable energy to people living in isolated areas in the developing world, as well as in the U.S., Mahajan said. Eventually, research will expand to advanced communications and "smart" radio systems that may have implications for cloud computing, geographical positioning systems, wireless networks and the like, Mahajan said. Another area of research planned at the center is nanotechnology, a major focus of ICTAS research in Blacksburg. Already ICTAS researchers are working on nanofibers that can be used in high-tech water and air filters, as well as the targeted application of agricultural fertilizers and pesticides, Mahajan said. Because Chennai is a major area for automobile engineering and manufacturing, nanosensors under development by ICTAS scientists are expected to become a major part of work at the India center, Mahajan said. Tech chose Chennai, India's fifth-largest city, because of its high literacy and education rates, and because it is a national center of engineering, science and technology, Ghosh said. Tech also has historical ties to India going back about 70 years to the first known Indian student to enroll at the Blacksburg campus. It's estimated that about 500 Tech alumni live in and around Chennai, which is situated in the

southern state of Tamil Nadu. Tech's India center is expected to be financially self-sufficient by its fourth year of operations, and any intellectual property developed there will contribute to research revenues, Ghosh said. As state subsidy of Virginia students has declined from 70 percent to 30 percent over two decades, Tech President Charles Steger has encouraged research and patenting of technologies as new sources of revenue. The India center is a kind of consolation prize for the university, allowing Tech to gain a foothold in one of the world's largest emerging economies. India, with its 1.2 billion people, is second only to China, with 1.3 billion residents, as an expected area of economic and technological growth. Tech had hoped to open a full-fledged graduate university in India, but that effort has been stymied by the Indian Parliament's reluctance to allow foreign universities to operate independently in the country. A reform bill that would have allowed Tech and other U.S. institutions to open campuses in India has stalled, with no timetable for a vote. But U.S.-sponsored research centers are allowed under Indian law, so the ICTAS center can open now. Officials hope the center eventually will expand to up to 40,000 square feet. Tech currently operates major educational and research centers in Chile, the Dominican Republic, Switzerland and Egypt. The university has grants, projects, study abroad programs and other initiatives in more than 50 countries around the world.

Click here for index U.S based PE firm Blackstone inks India’s biggest commercial real estate

acquisition deal

US private equity firm Blackstone has inked India's biggest commercial real estate acquisition deal, which will give it 50% stake in a Bangalore builder-owned portfolio of three business parks for $200 million (over Rs 1,000 crore). The deal beats Citigroup's acquisition of a Mumbai office building earlier this year for Rs 985 crore, which was bigger than Maple Tree's Rs 800-crore buyout of 2 million sq. ft. from Assetz Global Technology Park and Baring PE Partners' Rs 500-crore investment in RMZ Corp for 6 million sq. ft. space. A person familiar with the matter told ET that Blackstone, which invests in realty firms, has bought stake in an SPV comprising three commercial properties totaling over 10 million sq. ft. — Embassy Golf link and Manyata Embassy Business Park in Bangalore and Embassy Tech Zone in Pune. "Blackstone and Embassy Property Developments signed the transaction earlier this month. The deal was followed by the October 4 order of the Competition Commission of India, which gave clearance for the transaction," said the person, who did not wish to be named. "It is an equity-level investment, where a holding company was floated with three commercial assets under it. However, the deal finally cascaded down to the SPV level." A detailed email sent to Embassy did not elicit a response while Blackstone in an email reply said, "We would not like to comment on this story. Our communication protocol does not allow us to speak on market speculation." Experts said the deal is in line with this year's trend. "Given the uncertainties in political and economic environment, investors are risk-averse and are investing in pre-leased commercial assets. Around 70% of the transaction closed this year are in pre-leased assets," says Rajeev Bairathi, director-investment advisory at DTZ India. As per the transaction, Blackstone will get compulsorily convertible debentures of Pune Dynasty Projects (PDP), which is currently into the development of the non-SEZ part of Embassy TechZone in Pune. Once converted, Blackstone will hold 50% stake in the SPV. Additionally, Embassy, which owns 51% stake in PDP, will acquire 49% from Alta Vista, a Mauritius-based financial institution, making it a subsidiary of Embassy Property Developments (EPD). "Post this acquisition, EPD will transfer its shareholding of 35.77%, 51.01% and 48.75% in the three SPVs in Pune and Bangalore that are developing business parks along with some other assets in the form of advance paid for the purchase of land and for acquiring joint development rights to PDP.

Herein after, all the three SPVs will become the investee company," said a CCI order. Embassy Golf link is a 5-million-sq.ft., or 65-acre, business park while Manyata Embassy Business Park is a 100-acre integrated mixed-use development Business Park, which has a developable area of 18.29 million sq. ft. Embassy TechZone in Pune is spread over 70 acre with 52 acre designated for a special economic zone. Some of Embassy's big tenants at its commercial properties in Bangalore and Pune include IBM, Capgemini, Mercedes Benz, Atos Origin and Accenture. "Blackstone and Embassy will jointly control and manage the entity in which the fund has invested. The deal has very complicated structure with multiple cross-holdings. Embassy will be responsible for completion of the project," the person said. The Bangalore-based builder, which has delayed its Rs 2,400-crore IPO, has been on a fundraising spree. Embassy has received Rs 135-crore funding in an SPV from Blackstone to develop residential-cum-retail on the 14-acre land parcel in Hebbal. The fund also has an exposure of Rs 540 crore in Manyata Embassy Business Park, the country's largest operational tech SEZ, which it had bought from Ventures and the land developer. Embassy has developed nearly 25 million sq. ft. with a high degree of focus on business parks, whose valuation is pegged at Rs 8,000-10,000 crore. The company is also increasing its presence in the residential segment and has eight residential projects totaling 10.56 million sq. ft. under construction. It has a total debt of Rs 1,200 crore, of which 85% is linked to rentals. The company has a total land bank of 1,300 acre in Bangalore.


Amway to set up R&D Centre for health, beauty segments Direct selling major Amway India today said it will open research and development center soon for making India specific products, including Ayurvedic, organic in health and beauty segments. "We will open R&D center in India. The focus of (R&D) will be on opportunities in India and on exactly types of things, whether on Ayurvedic products or organic products or other products that work for India. "Our focus is on India and globally is on health and beauty categories...we see there is a lot of potential for these categories," Amway India MD and CEO William S Pinckney told reporters here on the sidelines of opening of company's touch point here. "A team from US will visit India February next year which will see where to open R&D center and how big it will be," he added. The company's healthcare and beauty segment out of four segments have grown sharply on the back of product's growing acceptability in the country as these segments alone contributes 55 per cent of company's total sales which is expected to touch Rs 2,400 crore by 2012. The company's upcoming new plant at Tamilnadu will also primarily manufacture healthcare and beauty products to cater to the growing demand, he said. "After setting up of new facility, health, wellness and beauty products will shift down to Tamilnadu while our contract manufacturers will produce homecare and personal care products," he said. Amway India will set up its own manufacturing facility at Tamilnadu with an outlay of Rs 550 crore and it will be commissioned by 2015. He said the company hopes to achieve sales of Rs 2,400 crore by 2012 with a growth rate of 10 per cent over turnover of last fiscal. "The growth in sales is migrating across the country. At present east and west are high growth rates for the company," he said.


Harley Davidson eyes smaller Indian towns to expand footprint US-based iconic cult bike maker Harley Davidson is targeting smaller towns in India as it looks to enhance presence in the country. The company, which launched its 'Fat Bob' model in India priced at Rs 12.8 lakh, also said it will consider increasing the number of models assembled in India to offer its products at "affordable rate" for the customers here. "We are looking to expand our dealer network. Currently, we have nine showrooms and by the end of the year we will have our tenth and next year we will add three more in Jaipur, Indore and Pune," Harley Davidson India Managing Director Anoop Prakash told reporters here.

He said the company has taken a conscious decision to spread presence in the tier II towns as there is a latent demand for Harley Davidson bikes. "We are getting a good pull in smaller towns. There are a lot of people who have the same key attributes as we have, in wanting personal freedom. The kind of enthusiasm we had received in a place like Kochi was the same as in any metro," Prakash said. There was a tremendous response when the company held the Harley Rock Riders concert in places like Shillong and Guwahati, he added. Sounding bullish on the Indian market, he said the company will clock over 2,000 units by the end of 2012 as cumulative sales since it started selling its bikes in India in July 2010. When asked if Harley Davidson will assemble more models in India to bring down the price, he said: "Although there is no immediate plan for adding to our CKD line up, we will keep the option open for future in order to make our products affordable to customers." The company will continue to adopt and invest in strategies that make its "products and ownership experience accessible to more enthusiasts and customers in India," Prakash said. The latest model Fat Bob, which is powered by a 1,600 cc engine, is the sixth model assembled in the company's plant at Bawal in Haryana. It presently sells 13 models from its 2013 line up in India.


Private equity firm GE Capital pays Rs 125 crore for 7.7% stake in Biocon Syngene GE Capital, the private equity arm of GE, on Wednesday picked up 7.69% in Syngene, the research services subsidiary of biotech firm Biocon, for Rs 125 crore. With this investment, the total valuation of Syngene stands at Rs 1,600 crore. The Bangalore-based Biocon, which was keen to list its arm Syngene through an initial public offering, has finally found an investor after two years. "This is not just a financial deal. GE will bring its vast expertise in biologics and life sciences with this deal, which will allow Syngene to look at new research opportunities," said Kiran Mazumdar-Shaw, managing director of Biocon. Shaw said Biocon will still explore the possibility of listing Syngene on the bourses. "We were not getting the right valuation for Syngene, it was always undervalued. However, this deal has unlocked the valuation of the company." Biocon also announced that its recombinant insulin, Insugen, had positive results in phase-3 trials, showing safety and efficacy similar to the original innovator product. The company also stressed that it is in talks to bring in a partner for Insugen. Biocon expects the trial to run for one more year, before it is ready with the final product. The company also reported robust Q2 numbers, surpassing estimates by posting a 19% increase in revenue to 640 crore. Its net profit rose to 90 crore as against 86 crore in the same quarter last year. Net profit jumped 4.6% to Rs 89.65 crore. "We have seen growth in all our verticals and there has been a sharp increase in research and development, which we take as an investment rather than expense," said CMD Kiran Mazumdar Shaw. The company incurred a 40% increase in its R&D on a like-to-like basis. Contract research services revenue posted a 39% growth to clock in Rs 129 crore, compared to Rs 93 crore on a like-to-like basis. In the second quarter, Biocon exited from its alliance with Amylin Pharmaceuticals, after the latter was bought over by BMS. AC165198, Amylin's proprietary molecule was jointly developed along with Biocon for diabetes treatment "A change in control at Amylin provides Biocon with an exit option which it has exercised. This will enable Biocon to focus on its resources to other advancing programs, the company stated. In March, Biocon had severed ties with global drug-maker Pfizer, stating difference in priorities. The company had entered into a $350-million agreement with Pfizer for commercializing its biosimilar insulin products. Biocon had received $200 million upfront for the deal, and was supposed to receive milestone payment worth $150 million besides the royalty from the sale of the products.


Harman to set up manufacturing facility in Pune Harman, global provider of audio and infotainment solutions, is setting up a manufacturing facility and acoustic systems engineering centre in Pune. Situated on a 4-acre expanse in Chakan, Pune, the manufacturing facility, the ground-breaking for which was done today, will have the capacity to support over 400,000 car sets annually, and entail SMT and infotainment manufacturing capabilities. It is slated to be operational by the end of 2013. The Harman Acoustic Systems Engineering Centre, equipped to global standards, will be fully operational by April 2013. Michael Mauser, Executive Vice-President and Co-President, Infotainment and Lifestyle Divisions, said Pune will serve in Harman’s recently announced strategic multi-year relationship to develop and supply branded audio and infotainment solutions for leading players such as Tata Motors. “Our growth plan in India is intensive. We will invest $10 million in the first phase with 100 employees. With its huge base of automotive OEMs, Pune is an ideal location. The input costs will be lower and to start with we will also conduct local sourcing to the tune of 30 per cent. Our products and systems will be specially customized for the Indian market,” he said. “We will start with manufacturing of infotainment products like radio and navigation units and then scale up our operations by bringing in lifestyle products. Over a period of time, we will bring in our entire product portfolio into India. This manufacturing facility can also be looked at for exports at a later stage,” he added.


GM to expand capacity at Halol Gearing up to launch a new multi-purpose vehicle (MPV), Enjoy, U.S. carmaker General Motors, said it would shortly have 1.10 lakh units annual commissioned capacity at its Halol plant in Gujarat. At present, the plant has an annual capacity of 85,000 units, with the company planning to launch the new eight-seater MPV from its Shanghai Automotive Industries Corp (SAIC) platform. “Shortly, we would have 1.10 lakh unit commissioned capacity annually at Halol because Enjoy is proposed to be rolled out from this plant in next couple of months,” Vice-President (Corporate Communication) P. Balendran GM had recently raised its shareholding in an equal joint venture with SAIC to 91 per cent, regaining complete control. The company had invested over $1 billion in India till date, a company statement said. “Halol capacity was short...so it is being expanded. With the inauguration of a press shop at Halol, it is now an integrated manufacturing plant,” Mr. Balendran said. The company has phased out its models such as Chervolet Optra and Aveo. “After the launch of Chevrolet Sail U-VA, a hatchback, we plan to roll out a new sedan model of Sail by next month,” he said. The new sedan will be the company’s sixth launch this year. As compared to sales of 1, 11,510 units last year, GM sold nearly 78,100 units till October-end in India this year. “In Gujarat, we had sold 11,500 units last year, and hope to sell 10,000 units by this year-end,” Mr. Balendran said.


Mayfield invests in Indian incubator AngelPrime Does not disclose exact amount, but says overall fund run by AngelPrime will total less than $10 mn

One of Silicon Valley's most established venture funds is seeking to ferret out startup talent in India at the very earliest stages by investing in AngelPrime, a Bangalore-based incubator programme to foster young companies. The Mayfield Fund said it would take a majority investment in AngelPrime, bringing its India investment expertise to younger companies, and more technology companies, than in the past. It did not disclose the exact amount, but said the overall fund run by AngelPrime would total less than $10 million. With the investment, Mayfield can foster early-stage technology in India, while keeping an eye on the start-up scene there, said managing director Navin Chaddha. The fund will also be able to work with entrepreneurs it knows well.

AngelPrime's founding partners are Bala Parthasarathy, Shripati Acharya and Sanjay Swamy, three of the co-founders of online photo company Snapfish, a former Mayfield portfolio company bought by Hewlett Packard in 2005. The partners will act as co-founders in the companies they support, Chaddha said, and will take larger stakes than most incubators, though he did not say how large. In the United States incubators generally take stakes ranging from about 6 percent to 10 percent. AngelPrime provides seed capital in the $200,000-$600,000 range to about three companies a year and aims to nurture them for about 12-18 months. By contrast, the well-known U.S. incubator Y Combinator invests about $18,000 per company, and its program runs three months. Its last class numbered more than 80 startups. Many venture firms are establishing relationships with U.S. incubators. Andreessen Horowitz and General Catalyst, for example, are among those offering each Y Combinator company a total of $150,000 in convertible debt via the Start Fund. "From a strategic perspective, it is a similar thing to what Andreessen Horowitz has done," said Chaddha, comparing the benefits of Mayfield's AngelPrime investment with Andreessen's relationship with Y Combinator. India has long held promise for venture capitalists, with many comparing it to China in the 1990s when it comes to new companies. It has a few incubators, but none has yet achieved the type of traction programs such as Y Combinator has in the United States. Mayfield currently invests in India through a dedicated $111 million fund for companies that are already generating revenue. In July, it announced Mayfield XIV, a $365 million U.S.-focused technology fund.


India’s Investments in U.S

Hinduja firm Gulf Oil Corp buys US-based Houghton International for $1 billion

Hinduja Group firm Gulf Oil Corp said it will acquire US-based specialty chemicals maker Houghton International Inc. for USD 1.05 billion (about Rs 5,670 crore). In the second-biggest acquisition by an Indian company this year, Gulf Oil will buy 100 per cent stake in Houghton, whose chemicals and lubricants are used in the metalworking and automotive industries, from a US-based private equity fund, which it did not name. New York-based private-equity firm AEA Investors LP had bought Houghton in 2007. Gulf Oil, which sells lubricants and industrial explosives in India and offshore, said it, will make the acquisition through its UK subsidiary. The USD 1.045 billion deal is subject to certain conditions and Houghton will operate as a separate company, it said in a statement. Lubricant maker Gulf Oil's planned acquisition is second only to Indian Hotels Company’s USD 1.86 billion offer last month to buy Hamilton, Bermuda-based Orient-Express Hotels Ltd. Houghton, a maker of fluids used for metal processing applications including cutting and stamping, has 12 manufacturing facilities in 10 countries and reported an operating profit of USD 132 million in the year to September 30 on sales of USD 858 million. Gulf Oil said it will be able to offer Houghton's industrial clients "a complete end-to-end range of lubricants," following the acquisition. Houghton will give the company access to customers in more than 75 nations. Besides Indian Hotels, Rain Commodities reached an agreement this year to buy Belgium-based specialty chemicals group Rutgers in a USD 918 million deal. Also, state-owned Oil and Natural Gas Corp (ONGC) bought stake in a group of oil fields in Azerbaijan for about USD 1 billion. “An agreement was signed for the acquisition by its wholly-owned subsidiary in the UK on November 6, 2012, with the sellers, a US-based private equity fund," Gulf Oil said. Gulf Oil Corp Ltd will operate Houghton as a separate company and the rest of Gulf's operations will be able to leverage Houghton's extensive base of industrial customers to offer them a complete en-to-end range of lubricants, it said. In addition there are various synergies that can be achieved in manufacturing, strategic sourcing and distribution," it said. "The acquisition fits extremely well with Gulf's Lubricant portfolio. Houghton has a very strong industrial portfolio, which perfectly complements Gulf's very strong presence in the automotive lubricant sector," GOCL said. GOCL scrip closed at Rs 85.90 on the BSE, down 1.94 per cent from the previous close.


Sun Pharma inks pact to buy DUSA for $230 million Sun Pharmaceutical Industries, said it had inked a pact to acquire U.S.-based DUSA Pharmaceuticals for around $230 million (about Rs.1,250 crore). Sun Pharma and DUSA Pharmaceuticals have entered into a definitive agreement under which Sun Pharma will acquire DUSA, a dermatology company focused on developing and marketing its Levulan photo-dynamic therapy platform, Sun Pharma said in a statement. Under the terms of the agreement, a 100 per cent subsidiary of Sun Pharma will commence a tender offer for all of the outstanding common stock of DUSA at a price of $8 per share in cash, a 38 per cent premium to the closing price of DUSA’s common stock on November 7, it added.

“The transaction has a total cash value of about $230 million,” it said. The transaction has been unanimously approved by the boards of directors of both companies and DUSA’s board has recommended that the company’s shareholders tender their shares pursuant to the tender offer, it added. PROVEN CAPABILITIES “DUSA has proven technical capabilities in photo-dynamic skin treatments with USFDA-approved manufacturing. DUSA’s business brings us an entry into dermatological treatment devices, where we see good growth opportunities,” Sun Pharma Managing Director Dilip Shanghvi said. Commenting on the deal, DUSA Pharmaceuticals Inc. President and CEO Robert Doman said the company was confident that Sun Pharma would build upon the solid foundation DUSA had established in the U.S. dermatology market. DUSA’s Levulan combination therapy is approved by the Food and Drug Administration for treatment of non-hyperkeratotic actinic keratoses of the face or scalp. Leerink Swann LLC acted as exclusive financial advisor, and Reed Smith LLP acted as legal advisor to DUSA Pharmaceuticals, the company said. Shares of Sun Pharma, on Thursday, closed at Rs.696.15 on the BSE, down 0.76 per cent from its previous close.


MphasiS buys US mortgage management firm for $175 million Bangalore-based MphasiS expects the all-cash deal to buy US-based Digital Risk to conclude by 31 Jan

MphasiS CEO, Mr. Ganesh Ayyar

MphasiS Ltd, an Indian IT services and back-office support provider and a unit of Hewlett-Packard Co., has agreed to buy US-based Digital Risk LLC, a mortgage management specialist, for $175 million. The purchase furthers MphasiS’ strategy of focusing on financial services clients, a shift the company started in 2010, CEO Ganesh Ayyar said in a statement. Florida-based Digital Risk sells software, analytics and forensics solutions that mortgage providers and insurers can employ to reduce risk of default and ensure regulatory compliance, according to the statement. Bangalore-headquartered MphasiS expects the all-cash deal to conclude by 31 January, subject to regulatory approvals. Privately held Digital Risk has 1,500 staff and expects $127 million in revenue for the year ending December 2012. Avendus Capital acted as financial adviser and Goodwin Procter LLP acted as legal adviser to MphasiS. Portico Capital Securities LLC served as financial adviser to Digital Risk.


Persistent Systems Acquires Innovative Cloud Platform Business from Washington based Doyenz, Inc.

Persistent Systems, the global leader in software product and technology services, today announced it has entered into a definitive agreement through its US subsidiary to acquire ‘rCloud’, an innovative cloud platform business from privately held Doyenz, Inc. Doyenz’s rCloud, an innovative business continuity cloud platform, provides backup and

disaster recovery for physical and virtual servers on the cloud for SMBs. Persistent Systems will continue to serve rCloud customers under the Doyenz brand. The Company will develop and enhance the rCloud service, maintaining employees and channel partnerships instrumental to its business. Terms of the definitive agreement were not disclosed. This acquisition furthers Persistent Systems’ objectives in growing its IP-led business, and strengthens the Company’s cloud computing and SMB offerings. Doyenz’s team of seasoned cloud experts and its rCloud service will enable Persistent Systems to extend its cloud expertise and to provide a complete end-to-end solution to existing and new customers, delivered through the channel. According to a recent Forrester Research report entitled “An Infrastructure and Operations Pro’s Guide To Cloud-Based Disaster Recovery Services,” 70% of SMBs interviewed said they considered DR (disaster recovery) to be of high or critical importance in the decision to adopt cloud services. “We are committed to delivering the most advanced solutions in cloud computing and this acquisition will further expand our IP led solutions in the cloud and SMB space,” said Nara Rajagopalan, Chief Product Officer, Persistent Systems, Inc. “With hundreds of partners representing over 3500 customers, Doyenz’s proven rCloud disaster recovery solution is meeting a critical need in the global SMB marketplace. We are delighted to welcome Ashutosh Tiwary, CEO of Doyenz and the Doyenz team of cloud platform experts to Persistent.” “Our vision was to make recovery of IT applications and data faster, simpler, and more accessible to companies of all sizes,” said Ashutosh Tiwary, CEO of Doyenz Inc. “Persistent’s acquisition of Doyenz’s market leading disaster recovery cloud platform will allow us to grow and deliver even more enterprise-class, affordable, cloud-based disaster recovery services to Managed Service Providers, serving the SMB community. The team and I are excited to join Persistent Systems and work together to further develop innovative disaster recovery and cloud services for our customers.” "Doyenz’s rCloud is a critical component to our business, providing innovative cloud-based disaster recovery services to our partners" said Alex Rogers, CEO of CharTec. "Persistent Systems brings strong financial backing and top notch software professionals to rapidly develop innovative disaster recovery services for the channel." About Doyenz: Doyenz provides an innovative cloud platform that meets the business continuity needs of small and medium-sized businesses. Doyenz rCloud provides backup and disaster recovery for VMware environments allowing IT professionals to restore virtual environments in under fifteen minutes, providing quick access to business critical applications. Doyenz is a privately held company headquartered in Bellevue, Washington with additional facilities in Boston, Massachusetts and London, England.


Sahara buys 2 iconic NY hotels - New York Plaza, Dream New York Now looking at picking up some other landmark properties in New York to build up a portfolio of luxury hotels

Subrata Roy-promoted real estate-to-financial services major Sahara Group has completed the acquisition of two iconic New York hotels—New York Plaza and Dream New York-—both based near Manhattan's Central Park, a century-old destination for socialites and celebrities, for around $800 million (about Rs 4,400 crore). The Sahara Group, which had acquired Grosvenor House in London in 2010, is said to be now looking at picking up some other landmark properties in New York to build up a portfolio of luxury hotels. According to sources, the Sahara Group will acquire a 75% stake in Plaza Hotel for $570 million, while Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25% stake after a complex transaction. Similarly, Sahara has bought Dream Downtown, owned by celebrated New York hotelier Vikram Chatwal for $220 million. Both the deals were signed recently.

Dream Downtown, featuring 315 loft-style rooms and Suites is a prized property of the Chatwals. Dream Downtown is within walking distance of shopping and art galleries and the famous neighborhoods of So-Ho, Chelsea, and the West Village. Both Plaza and Dream Downtown would continue to be looked after by the existing management. It could not be immediately ascertained as to how Sahara would finance the two deals. It may be pointed out that it had earlier pledged the Grosvenor House to raise 250 million pounds, a part of which may be used to fund the New York purchases. Sahara officials did not comment on the development. The deal comes at a time when Indian Hotels, part of the Tata group, has made a bid for acquiring a controlling stake in the Bermuda-based hospitality firm, Orient Express Hotels for $1.86 billion. The 105-year-old storied New York Plaza, overlooking New York's Central Park, is known for its rich legacy and was designed by Henry Janeway Hardenbergh , who also designed the historic Fort Garry Hotel in Winnipeg. Alfred Gwynne Vanderbilt, heir to the Vanderbilt industrial empire, was understood to have been the first guest of the hotel when it opened to the public in October 1, 1907. The hotel, struggling in recent years, was accorded a landmark status by the New York City Landmarks Preservation Commission in 1969 and was designated a National Historic Landmark (NHL) in 1986. It has been the site for famous performers and guests and has also been frequented by US presidents. It also featured in more than two dozen Hollywood movies, including North by Northwest (1959), Scent of a Woman (1991) and Home Alone 2 (1992), besides some TV serials such as Friends, Ugly Betty and Sex and the City. The hotel was also the setting of various literary works. Sahara's agreement to purchase the two New York based hotels come on the back of a Supreme Court order directing it to refund over $3 billion worth of bonds raised by selling optionally fully convertible debentures. Sebi last year said the debt issue didn't comply with rules. According to the group's website, it has assets worth $26 billion. Apart from the two New York hotels and Grosvenor House, Subrata Roy owns Sahara Star, a 223-room five star hotel near the Mumbai domestic airport. Besides, it also owns a resort-cum-township for the uber rich at Amby Valley in Maharashtra.


MindTree opens development centre in Florida As part of its efforts to reach out to clients in the US, IT solutions company MindTree Ltd opened a delivery centre in Gainesville, Florida. It is the first delivery center outside India for MindTree. The company said that it would create 400 new jobs over the next five years and a $2.925 million investment has been planned, of which more than $1.6 million had been invested in the project. It had also hired 47 people since the Florida Governor Rick Scott announced the project in March. MindTree said that its new US delivery center was the first outside India for it and was “part of the company’s strategy” to expand IT and software services to its US clients. It said that Gainesville was chosen over places in Alabama and South Carolina with many local organisations joining to impress on MindTree as how the location “fits Mindtree’s culture”. Governor Rick Scott and MindTree’s co-founders Krishnakumar Natarajan and Scott Staples, among others, were present at the ribbon cutting ceremony of Mindtree Delivery Centre on November 13, MindTree said in a communication to the stock exchanges.


Infosys unit to buy unit of Marsh & McLennan A unit of India's Infosys Ltd. is buying the claims processing, call center and accounting unit of U.S.-based insurance brokerage Marsh & McLennan Cos. for an undisclosed amount. Marsh BPO has seven insurance-company clients with more than 600,000 policy holders, Infosys BPO Ltd. said in a statement recently. All 87 Marsh BPO staff will be absorbed by Infosys BPO. The acquisition will expand Infosys BPO's presence in voluntary group life insurance, the statement added without giving any other details. Infosys Ltd. is India's second-largest outsourcing company by sales. Infosys BPO posted $495 million in revenue in the fiscal year ended March 31.

In December Infosys BPO bought Australia's Portland Group Pty. Ltd. for 37 million Australian dollars ($38.2 million). It bought privately held U.S. insurance company Mc. Camish Systems for about $58 million in 2009.


IBS Software Services Acquired US Hotel Booking Solution Kerala based IBS Software Services on 24 October 2012 announced the acquisition of Atlanta-based Hotel Booking Solutions (HBSi) through a multi-million dollar deal. The acquisition of HBSi by IBS’ was made by buying over the entire shareholding of Crosslink Capital, which is San Francisco-based leading private equity and venture capital firm. Crosslinks Capital has over $1.8 billion in assets with investments in around 100 companies. With the acquisition of Hotel Booking Solution almost hundred major players in the hospitality industry including Starwood, Harrahs, Raffles, Ramada, Fairmont and Kerzner on the supply partner side as well as Expedia Orbitz and Travelocity on the distribution side will join the IBS stable. Hotel Booking Solution is a travel technology and services firm that provides distribution services to leading hotel companies and travel suppliers by linking their computer reservation systems to distribution channels for instant transmission of room availability, rates, and inventory and reservation confirmations.


Jindal Poly Films to acquire ExxonMobil unit Jindal Poly Films Ltd, part of the B C Jindal Group, has entered into an agreement with ExxonMobil Chemical to acquire its biaxially oriented polypropylene (BOPP) global films business. The purchase agreement was signed on Friday, but Jindal Poly Films did not disclose the deal size. The shares of Jindal Poly Films ended 4.67 per cent lower to close at Rs 212.50 on the BSE recently. The transaction remains subject to necessary approvals from the regulatory authorities, the company said in a statement. ExxonMobil’s BOPP has five manufacturing units in the US and Europe and has about 1,500 employees. The transaction also includes a technology center and sales office in Rochester, New York and an office in Luxembourg. “We are excited to buy this business due to its excellent portfolio of premium products along with industry leading technology and R&D. We are confident that, in combination with our existing Indian operations, we will be able to deliver long-term solutions to our customers globally,” Hemant Sharma, CEO, Jindal Poly Films, said in a statement.


Indo-US Corporate News

Subway plans 1,000 stores in 5 years Subway has encouraged developing opportunities in non-traditional locales such as airports, hospitals, college and university campuses. Quick service restaurant brand Subway has opened its 300th restaurant in India, at Terminal 2 of the Mumbai International Airport. Fred DeLuca, President and Co-founder of Subway, is bullish on India and plans to open 1,000 stores in India in the coming five years through the franchise route. The Connecticut-headquartered brand is present in 50 Indian cities with 263 franchisee-run restaurants. Globally, the Subway brand has more than 37,000 restaurants spread throughout 100 countries. Robby Gulri, Area Development Manager, said, “Mumbai figures prominently in Subway’s growth plans. The rising inclination of people towards healthy eating has also given an added impetus to Subway’s performance.” Mumbai International Airport, which sees the highest density of travelers in transit, now has its own Subway store. “Subway, as a global brand, has always encouraged developing opportunities in non-traditional locales such as airports, hospitals, college and university campuses,” said Chetan Arora, Development Agent for Subway Mumbai and Maharashtra. The chain is now focusing on tier-II and tier- III cities. Subway has adapted its menu to appeal to the Indian consumer. No beef or pork products are served, and in addition to products available at its locations throughout the world, the restaurants in India offer a wide range of local favorites such as Chicken Tandoori and Paneer Tikka. Though the company has only two vegetarian products in its American and European menus, recently, it rolled out its first ever all-vegetarian outlet at Jalandhar-based Lovely Professional University (LPU). The latter is run by a strict Hindu Mittal family and promotes only vegetarian meals on the campus. India is a small part of Subway's business contributing 2.5 per cent to overall revenue.


Bharti Walmart opens outlet in Rajahmundry It’s Rajahmundry in coastal Andhra Pradesh now for Bharti Walmart. The joint venture between Bharti Enterprises and Walmart Stores Inc. in India opened its fourth ‘Best Price’ wholesale store in Rajahmundry. The outlet will create 170 direct jobs. The joint venture already has stores in Vijayawada, Guntur and Hyderabad. Its plan is to open 19 stores across India this year. Arvind Mediratta, Chief Operating Officer, Bharti Walmart, inaugurated the store, which is spread over 53,000 square feet next to the ONGC Base Complex. Wide range The store will stock over 5,000 items, including a wide range of fresh, frozen and chilled foods, fruits and vegetables, dry groceries, personal and home care items, electronic goods, and other general merchandise items. In a press release the company said several products available have been locally sourced from Rajahmundry and surrounding areas including paper, snacks and confectionaries, dairy, frozen and bakery, personal care, tobacco. Also, some of the private label items available in the store that are sourced locally includes pickles, rice, stationery, maida, besan, idli and dosa mix, atta, pulses, spices and ghee.


India's Ranbaxy launches acne drug in US Ranbaxy Laboratories Ltd, India's top drug maker by sales, said it has launched Absorica, a drug used to treat recalcitrant acne, in the United States. The drug is in-licensed from Cipher Pharmaceuticals Inc., said Ranbaxy, controlled by Japan's Daiichi Sankyo Co.


Punjab asks Monsanto to set up a R&D center for maize crop in state In a bid to put the agriculture diversification on fast track, the Punjab Chief Minister Parkash Singh Badal has asked the US-based Monsanto hybrid seed company to establish its research centre to undertake extensive R&D for the production of high yielding hybrid seeds of the Maize in the state. A high level delegation of the company led by Vice President, Global Vegetables and Asia Commercial, Consuelo E Madere recently called on the chief minister. During the deliberations, D Narain CEO Monsanto's India Region apprised the chief minister that the company had developed heat tolerant hybrid maize varieties for the northern region especially Punjab adding that the company had focused to develop maize varieties for the kharif season in order to provide a viable alternative to paddy in the state. He also assured Mr. Badal that company would also make all out efforts to develop high yielding soya bean seeds in its endeavor to boost diversification of agriculture in the state. Assuring all possible assistance to the company, the Chief Minister directed the Vice Chancellor (VC) Punjab Agricultural University (PAU) to provide technical data and logistic support to enable them to produce quality hybrid seeds best suited to the climatic conditions of the state. Mr. Badal also constituted a high level committee headed by the chairman of Punjab Farmers Commission Dr. GS Kalkat with Financial Commissioner Development (FCD) Mr. GS Sandhu, advisor to agriculture Dr. Balwinder Singh Sidhu and director agriculture Dr. Mangal Singh Sandhu as members to work out the modalities for developing high yielding varieties and maize seed in tandem with the Monsanto Company besides in aiding them to set up research cum seed testing center at the earliest. The Committee has also been mandated to suggest self-sustaining marketing mechanism to ensure hassle free marketing of Maize to the farmers. The Punjab government has planned to reduce the shift the area under paddy from 28 to 16 lakh hectares in a phased manner over a period of six years.


MWV Will Acquire Ruby Macons Ltd. to Accelerate India Growth Strategy

Virginia based MeadWestvaco Corporation, a global leader in packaging and packaging solutions today announced a definitive agreement with Mr. Alibhai Nathani and family to purchase Ruby Macons Limited (“Ruby Macons”), India’s top producer of corrugated packaging materials and a leader in the country’s growing industrial packaging industry. Terms of the transaction were not disclosed. “The acquisition of Ruby Macons extends our participation in India, strengthening our presence in a market that we have targeted for profitable growth,” said John A. Luke, Jr., chairman and chief executive officer, MWV. “The Nathani family and the Ruby Macons leadership team have built a very successful business and established a best-in-class operation that boasts advantaged operational and technical leadership, strong brand awareness and reputation among converters and brand owners, a highly efficient capital model and an advantaged geographic location within India in Vapi, Gujarat. The addition of Ruby Macons boosts our ability to grow profitably in India by bringing their leading local position and capabilities in packaging materials together with our global expertise and innovation capabilities.”

"We’ve built a significant and highly-profitable industrial packaging business in Brazil over the last 60 years, and we will leverage this experience to serve the rapidly-evolving retail sector and fast-growing middle class in India. Through

Ruby Macons and its converting customers, in addition to our own box plant in Pune, MWV will offer a wide range of packaging solutions that address market and consumer needs in India, including innovative solutions similar to those we've developed in Brazil for fresh produce, industrial products and consumer goods markets.” “We are pleased to welcome Ruby Macons to the MWV family and are very excited about the profitable growth opportunities this acquisition creates,” concluded Luke.

Ruby Macons is the market leader in corrugated packaging materials in India, producing greater than 150, 000 tons annually with significant capacity expansion underway. Founded and managed by the Nathani family since 1986, Ruby Macons’ revenues were approximately $80 million over the last 12 months with double digit operating margins and strong return on capital. The company has achieved greater than 20 percent average growth over the last several years and is poised for significant future profitable growth through the expansion plans underway.

“From the beginning, the Nathani family and Ruby Macons’ management has built a strong business delivering high quality products to customers and value to all our stakeholders,” said Mr. Alibhai Nathani, chairman of Ruby Macons. “After extensive conversations with MWV, through which we came to understand their global leadership, outstanding technical capabilities and strong long-term commitment, we chose them as the right partner to take Ruby Macons to the next level. Our single-most focus while making this decision was to ensure that the business we’ve built with passion over the last two decades will be in the right hands to ensure long term sustainability for all our stakeholders. Our family will continue to be involved in the business, and we are excited about partnering with MWV.” Ruby Macons’ offices and manufacturing facilities, including its two mills containing three paper machines, are located in and around the industrial city of Vapi, Gujarat, 180 kilometers north of Mumbai. These assets will remain in full operation and become an important part of MWV’s industrial packaging and global manufacturing platform. All Ruby Macons employees will become MWV India employees and the Ruby Macons management team will remain in place, including Mr. Ashraf Nathani, managing director, Ruby Macons, who will become vice chairman and president of the business. Mr. Ashraf Nathani said, “I am excited about leading MWV’s paperboard operations in India, and I know that we will build a very strong presence in the market. The products, relationships and quality leadership of Ruby Macons will be leveraged together with the strong MWV technical and management teams. I am convinced that together we will have the vision, resources and ability to succeed in a market like India.”

The acquisition of Ruby Macons expands MWV’s presence in industrial packaging in India, which today includes a manufacturing facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals. Upon closing, the combined business will report through MWV’s Industrial packaging segment. MWV has a broader packaging business in India - led by managing director Gautam Sircar and headquartered in Pune, India - delivering innovative packaging solutions for a variety of consumer goods markets, including Healthcare, Beauty & Personal Care, Home & Garden, and Beverage. It also markets specialty chemicals for asphalt paving and other markets.

“Our plan is to continue to drive aggressive growth in this business as part of our broader India and global growth plans,” said Peter C. Durette, senior vice president and chief strategy officer for MWV, who oversees the company’s business and growth in India. “We see significant potential for high quality, innovative solutions in India, from corrugated and consumer packaging to specialty chemicals that can help solve significant challenges in India and improve the lives of consumers. We are developing insights into the unique unmet needs in the local marketplace and bringing solutions that will benefit customers and consumers in India.”


Domino's India aims to be largest franchise outside US in 2 years Jubilant Foodworks, which operates Domino's Pizza chains in the country, has said it plans to become the largest franchise for the US brand outside its home market in the next two years. "We are already the fourth largest Domino's franchise outside the US now, but growing at the fastest rate in the past five years. In the next two years we will be the

single largest outside of the US. "Currently Domino's India is 5 per cent of global stores and we believe in the next five years it will be 10 per cent of global stores," Jubilant Foodworks chief executive Ajay Kaul has said. Globally, the pizza chain operates close to 10,000 stores. Kaul further said the company will continue to open about 100 stores each over the next six years and will hire over 3,000 people each year. The company will be opening a total of 110 Domino's Pizza stores in FY13 instead of 100 stores as planned earlier. Out of the targeted number of stores, the company has already opened 50 pizza stores this financial year. The company has earmarked a capex of Rs 150 crore for growth across verticals as part of its expansion plans. The company is planning to hike its prices by 2-3 per cent this month to beat inflation. "We had increased prices in August last year, then one in November and the recent one in this June. Our next price hike will be this month and it will be 2-3 per cent increase," he said. The company had launched Dunkin' Donuts in the country this April in Delhi. It currently has five Dunkin' Donuts restaurants and plans to take it to 10 outlets by the end of the fiscal. It also plans to open its next Dunkin' Donuts outlets in Mumbai and Bangalore in the next six months. "We are looking at cities. On our radar, we are looking at Mumbai and Bangalore next. It will happen in the next six months or so. Already we are doing some research, looking at customers, looking at spaces. It will take its time. We are in no tearing hurry to get a full footprint just because we are in a rush. We want to get it right and then scale it up," he said.


Voltech, NanoPV venture to build solar module plant near Chennai The Voltech group of Chennai and the US-based NanoPV have joined hands to put up a 100 MW solar module manufacturing plant near Chennai and a solar park near Tuticorin. Voltech is a medium-sized group that is into the manufacture of transformers. Setting up a cell and module manufacturing plant may appear foolhardy at a time when global majors are being toppled by the Chinese companies’ onslaught and the slowdown in the European economy. But NanoPV’s President and CTO, Dr Anna Selvan John, says that the company has unique and patented technology that enables it to be competitive even in this market. “NanoPV has unique technology based on amorphous and nano-crystalline silicon and proprietary light-trapping and ‘transparent conductive light-trapping oxide’ technologies,” says the company’s Web site. Because of this, compared with conventional solar cells, NanoPV’s cell manufacturing involves one-third the process and takes one-third the cost, and “300 times less amount of material consumption.” Voltech’s Managing Director, M. Umapathi, said that the group has near Chennai a factory building where it once produced textiles. NanoPV intends to bring in plant and machinery from the US and set up a production line here. The initial capacity would be 10 MW and would gradually be ramped up. Umapathi estimates the cost of the project to be Rs 100 crore. Solar farm near Tuticorin Another joint venture of Voltech and NanoPV is putting up a 100 MW solar farm near Tuticorin. The project will be implemented in phases, and work has begun on the first 10 MW. In this venture, a UAE-based company called Arab Gulf Pearl Trading is also participating. It has taken 50 per cent of the equity. This project too would cost Rs 100 crore. Work has commenced on the first 2 MW, which will be completed by March 2013. The other 8 MW will be ready to produce power by the end of 2013, Umapathi said. NanoPV says that its modules can generate 1.8 million units of electricity per MW each year. The joint venture intends to enter into power purchase agreements with industrial consumers in the state, forming a ‘group-captive’ structure.


Intel looks to modernize PDS retailing in Gujarat Company to bring initiatives like biometric transactions

Information technology solutions provider, Intel is looking to modernize retail outlets under public distribution system (PDS) in Gujarat. The company is eyeing to replicate its Karnataka's next-generation point of sale scale system project in Gujarat. Intel has set its eyes on modernizing retailing through PDS mechanism by combining three functions of weighing scale, point-of-sale and biometric, which would also supports the local language. "We have observed that many states in India including Gujarat are putting their efforts to use technology to improve the public distribution system. There are also directions from Central Government to guide these efforts. We expect the PDS system in the country to see some good changes in near future," said S Natarajan, country business manager – Embedded Markets, South Asia-Intel. The company looks to bring automation, which would improves efficiency of the PDS supply chain and enables transparency in the overall process. This is believed to bring down malpractices and eliminate irregularities. Food is one of the three fundamental needs of society, and the Karnataka project demonstrates how technology can help the cause of the common man. It can serve as an example for other States in the country. We would like to discuss in detail on how technology can help PDS in Gujarat. "Computerization of PDS in the state can help eliminate bogus or duplicate cards, minimize exclusion or inclusion errors and diversion or leakages, capture transactions accurately and maintain updated records," said Natarajan. "It can improve efficiency of logistics in the storage and movement of food grain. Computerization will bring accountability at all levels and transparency across the supply and delivery chain," he said. At the time the Supreme Court issued its directive, there were 16,557 Fair Price Shops in Gujarat spread across 26 districts. "Technology and solutions are scalable, as we have demonstrated in the Karnataka, where we are working through our ecosystem on a project with the Government to computerize more than 20,000 Fair Price Shops," added Natarajan. The company is willing for a state support for the project. "Given the opportunity, we’ll be happy to work with the Governments of different states on projects where we can better the life of the common man by means of our technology," he said.


Citi Expands Express Wire Asia Program with India Desk Citi Expands Express Wire Asia Program with India Desk

Citi has expanded its Express Wire for Asia capabilities, with a dedicated India Desk. Citi, one of the premier providers of cross-border payments, announced today that it is further extending its US Dollar Express Wire for Asia services by launching Express Wire India Desk. Citi’s Express Wire for Asia Service helps streamline the execution of US Dollar payments by sending transactions to the beneficiary bank in Asia expediently. If a payment order requires repair, Citi’s experienced operations professionals are available to correct formatting errors on a timely basis. Express Wire also provides additional liquidity to banks that need to process their payments within Asia morning business hours, as well as direct linkages into local US Dollar Clearing systems. Citi launched a dedicated China Desk to expedite Asian payments in 2010. Given expanding trade relationships between India and the rest of the world, the need for more effective payment solutions into India has increased. Complex banking systems and infrastructures can be challenging for counterparties who are seeking to do business in new and unfamiliar markets. Citi’s new Express Wire India Desk provides local expertise and improved access, to help expedite payments into India. “Citi has an unparalleled global network. We are able to harness the local knowledge and expertise found with colleagues who operate in more than 100 countries around the world and bring that value to our clients with programs

such as Express Wire, and specialized ‘desks’ that offer services relevant to a particular market. Our clients can leverage Citi’s in-depth knowledge and understanding of how to do business most efficiently in foreign markets,” said Vanessa Lin, Head of USD Clearing at Citi Transaction Services. By using Citi’s Express Wire for Asia Program, Citi’s clients have access to a larger network of local and regional clearing channels, with the added ability to request that payments be routed through a specific clearing system. In addition, local support enables foreign banks to conduct their business seamlessly, with direct access to the experts on the ground. Citi Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi’s Transaction Services supports over 65,000 clients. As of the third quarter of 2012, it held on average $415 billion in liability balances and $12.8 trillion in assets under custody.


DuPont expanding Hyderabad knowledge centre Science-based products and services company DuPont's $50 million Knowledge Centre in Hyderabad will soon become the company's largest R&D facility outside of the United States. The $38-billion company has finalized plans to expand the four-year-old facility to develop products and services in diverse fields not only to suit the Indian market but to provide a platform for its global products. The company spends about $2 billion on R&D annually, out of which a significant slice will be utilized by the Hyderabad facility and its other laboratories in South East Asia. It provides science-based products and services to a diverse set of industries ranging from food, agriculture to energy and protection. Rajeev Vaidya, President (South Asia), said the expansion would support the company's global seed trait discovery research. It will undertake research on developing new traits on a variety of crops such as corn and maize that enhances yields and are more resistant to pests, he told newspersons here today. The facility will also for the first time undertake a variety of application development work such as developing light-weight auto components. With India growing as a hub for small cars, the company feels that the need for replacing heavy metal components with lighter polymer parts would increase, he said. Vaidya said the center would also work on titanium technologies that will use its expertise in particle technology and polymer processing for applications in plastics. Apart from this, it will also work on applications in food packaging, fabric care and grain processing segments.


Special Report India’s coffee market competition is ferocious: Howard Schultz, Starbucks

Interviewed by Ms. Sonali Krishna, Anchor & Editor of Brand Equity, Economics Times NOW

Mr. Howard Schultz, Chairman and CEO, Starbucks

Sonali Krishna: India has got its first Starbucks and we can all enjoy a lovely cup of coffee, but why has it taken you so long? Howard Schultz: Everyone has asked me the same question. I like to know the answer myself. The truth is, this (India) is a very complex market to enter. At one point we thought we could come here alone and we overestimated the complexity. But once we met the people from Tata, we realized overnight that the assets were so complementary between Tata and Starbucks that together we could co-author a very unique strategy - bring Starbucks in India and over a time build a very substantial significant business together. Sonali Krishna: Why did you decide to come into India with a partner? We do not have any restrictions in FDI in single brand retail. Why did not you just do it on your own? Howard Schultz: India is like no other market in the world. Tata's position in India is very unique. It is a company that has unique capabilities in terms of infrastructure. But mostly their values were so consistent with ours, building a company with a conscience, treating people well, taking care of the communities and we thought this was an opportunity to do something together that we just could not do ourselves. Sonali Krishna: No doubt Tata is one of the biggest corporate houses in India. It is their second coming in the coffee space. They ventured into the coffee retail space with Barista by holding a minority stake and that really did not go very well. How did they sell themselves to you to? Howard Schultz: The coffee market here is ferocious in terms of competition. There are so many players trying to do what we think we can do better. What Tata brings is a unique perspective in terms of real estate acquisition capabilities, the opportunity to integrate Starbucks into Taj Hotels, the ability to bring food from the Taj into Starbucks stores and the capability that we just could not do on our own just in terms of the infrastructure and distribution. Their previous experience had no bearing whatsoever on what we thought would be a fantastic partnership. We are here to build a major business and when I say major business, we think over time India will be one of the largest markets in the world for Starbucks. We also think that the competition has done us a favour. They have educated the market and created lots of consumers. Our own research suggests that this market is perhaps like no other. The awareness of Starbucks is so large here and there is so much pent-up demand that we think that over time this is going to be one of the best markets in the world for Starbucks. I do not think we could have done it without Tata.

Special Report

Sonali Krishna: I believe your India expansion plans are in tandem with your APAC expansion plans. You are looking at 400 outlets, 200 of which are in China. So my question is why so aggressive in China and why so passive in India? Would it be in admission of sorts by you that India is in fact the most challenging, complex and bureaucratic markets? Howard Schultz: We have not said how many stores we are going to open in India. People keep asking for how many, how soon. Let us open up one store. We are going to open up two next week and let us see. Our history as a company is to accelerate growth. We have opened 700 stores in mainland China in 13 years, but we had educated their market unlike here. The size of the price here is large. We got to go as fast as we can, but this is going to be thoughtful, disciplined and the leader in India in our view is not going to be how many stores you have, it is going to be the reputation of the company, the company experience and that is we do best. Sonali Krishna: Earlier we were given to believe that you had a 50 outlet target for Starbucks in India by the end of 2012. Do you have a revised plan now on how you are going to be expanding? Howard Schultz: I do not know where that number originally came from, but I am not here to say how many stores or how soon. I will tell you we are going to build a very large successful business here. Sonali Krishna: This really comes from a deeper philosophy I believe Starbucks is practicing globally where you believe growth going forward is not going to be simply by expanding your outlets, but really by looking at a diversification in your portfolio in your product offering which is why you are looking at possibly even alcoholic drinks. So if you can talk to me about that strategy and is that what we are going to see in India as well? Howard Schultz: Well, let us frame the Starbucks business today. We have 18,000 stores in 60 countries. India will be 61. We are serving about 70 million customers a week and we employ over 200,000 people. The brand equity of Starbucks around the world is one of the most recognized and respected of any consumer brand. Over the last few years, we have developed multiple channels of distribution primarily in grocery stores, mostly in North America, although we are now looking at other places. We do not generally move to those channels of distribution until we have established the brand within our retail stores. We do think there are multiple channel opportunities within India, but only after we establish the brand. But the market here is large and robust. We will have a business in India that will go beyond our retail stores overtime.


OVL (ONGC VIDESH's) wishes to have an integrated presence in the US Q&A with DK Sharraf, MD, ONGC Videsh D K Sarraf has been at ONGC VIDESH's (OVL) helm for the last 14 months. His tenure so far has been challenging as the company faced its first drop in output due to geo-political problems in Sudan and Syria. He is hopeful of a recovery from next year as new fields are expected to start production. Ending a lull, the company is back in an acquisition mode after recent stake buy in an Azerbaijan field and is eyeing assets in the US and Canada. Sarraf speaks to Ajay Modi on the impact of geo-politics on business, the new challenges and company's plans. Of late, geopolitical developments have been impacting the oil and gas business in some overseas countries. How do you see things panning out in future? Oil and gas prospects are generally available only in difficult territories - either in terms of environment or geo-politics. If they are not difficult on either, they will be difficult on competition with low returns. Geo-politics has been and will continue to play an important role in oil and gas exploration and exploitation. It needs to be handled on a case to case basis, and there is no general prescription to deal with the same. This ultimately zeroes down to political risk which is factored into while evaluation of any opportunity. Has acquiring assets become more difficult in past one year due to competition? Acquiring oil and gas assets has been competitive for many years and I would not say that something has changed in the past one year. In fact, in the recent times, many opportunities for acquisition have come up due to the strategic

portfolio shift of many western companies which are now concentrating on geographies like North America. However, the expectations of the sellers in terms of desired price have become higher. ONGC has set a Perspective Plan 2030. What role will OVL play in it? OVL produces little less than 9 million tons of oil and gas in FY12. Our vision is to produce 20 million tons by 2017-18 and 60 million tons by 2030. If we are able to achieve the same, OVL’s contribution would be 46% of ONGC group production by 2030, against existing 15%. What is the near-term outlook for OVL’s production? Production had decreased last fiscal mainly due to problems in Sudan and Syria. This year the problems are still continuing leading to further decline in production. In addition, some fields are on a declining phase. Consequently, we could produce 3.488 million tons in the first six months which is lower by over 23%. However, going forward, production would start looking up from the existing assets from 2013-14 as production would start from the blocks A-1 & A-3 in Myanmar, Carabobo Project in Venezuela and the second phase of Block BC-10 in Brazil. Also, our recently-acquired 2.72% stake in ACG fields in Azerbaijan will add to the number. How is OVL’s financial health? Any plans to list the company? OVL’s financial health continues to be robust. We have been having profit after tax of more than Rs 2,500 crore during last 2-3 years. Our profits for the first half of the current fiscal are also at Rs 1,649 crore. The Debt-Equity Ratio has decreased from 10 in 2003-04 to less than 1 now. We have been financing about 70% of our investments from internal resources. At the same time, being a wholly-owned subsidiary of ONGC, we get more strength from the financials of ONGC. ONGC has been the highest profit making company of India and continues to be debt free. We get full financial support from ONGC. So far as listing of OVL is concerned, this is a decision to be taken by ONGC. What I believe is, it makes more sense for ONGC is to support OVL like at present, create more value and only then list it to get maximum out of divestment. Tell us about the progress in restoring output in South Sudan? Production at 50,000 barrels per day is almost normal in North Sudan. But most of it is getting consumed in their domestic refineries and little is being exported. Once we resume production from South, most of it will be available for export. Production from South is expected to be restored in next 3 to 6 months. Is OVL looking at North America and Canada? Very large hydrocarbon resources are available in North America. Canada is among top nations in terms of oil resources. These resources are accessible to investors, unlike certain West Asian countries where only crude oil can be bought but oil reserves can’t be owned. Canada is very transparent and investor friendly country. With increase in production of shale gas, US now has exportable gas surplus. Due to over-supply, gas prices are towards their historical lows. Gas import terminal facilities created in the past are being converted to export facilities. There are immense opportunities in the US for participating in its upstream business. US have a good network of pipelines. However, the challenge here is that India does not have a free trade agreement with the US. Therefore, export of gas from US to India requires approvals by US authorities on a case by case basis. Several applications are under consideration with the US government. We wish to have an integrated presence in the US where we may produce gas, transport it to shore through pipelines and have it converted into LNG for export to India. Are you also look at investing in a terminal in US? Yes, we are. Also, one can invest in a terminal or preferably book capacity in an upcoming terminal. What are the other geographies that excite OVL in addition to US and North America? In addition to other parts of Africa, East Africa has good opportunities in Mozambique and Kenya. Brazil, Venezuela, Colombia etc. in Latin America is interesting. Central Asian countries and Russia also provide good opportunities. Several new areas of interest are emerging.

Tell us about OVL’s plans of acquisitions? We are looking to make couple of big-size acquisitions. Last three years there had not been any major acquisitions but now the ball has been set rolling with the purchase of stake in ACG fields in Az erbaijan and BTC pipeline recently. Some more would put us back on track. What challenges you may face in your vision? We have a vision to produce 60 million tons by 2030, but it is easier said than done. By 2030, most of the existing fields would be depleted. So, we have the challenge of creating afresh producing capacity of most of 60 million tons. For acquisitions of this magnitude, we need to streamline the organization systems, personnel and organize finance. Challenge remains on deciding which areas to focus, how to select a partner, manage geo-politics, and so on. We have already addressed some of these issues while others are getting sorted out. Other than normal business uncertainties, the oil and gas sector has uncertainties of geology, crude oil price, regulatory regime, etc. There are different schools of thought related to oil price and there is no right answer to oil price in future and deciding on crude oil price for valuation becomes difficult.


In the News:

Indian companies created 50,000 jobs in US, says Deputy Secretary of State William Burns

Burns praised the recent Indian decisions with regard to next phase of economic reforms. At a time when unemployment is a major issue in the US due to its poor economic status, Indian companies through its massive investments in America have created 50,000 jobs in the country, a top US diplomat said. "Our economic relationship is very much a two way street. Both of us are focused on attracting growth and investment to our shores. Indian owned Tata factory in Ohio puts thousands of Americans to work, part of the over 50,000 jobs Indian firms have created in the US. Opportunities for small, medium and large American businesses in India are staggering," US Deputy Secretary of State William Burns said. Burns added that India is being projected as world's third largest economy by 2025. But 90 per cent of India is still without broadband, 80 per cent of India's infrastructure for 2030 hasn't yet been built, according to McKinsey, India plans to invest one trillion dollars on infrastructure in the next five years alone. Burns praised the recent Indian decisions with regard to next phase of economic reforms. "Of course, for our companies to provide the technology and expertise to help India prosper, India's government must create an environment that encourages growth," he said. He added that India's recent easing of some restrictions on Foreign Direct Investment is promising. Indian multi-brand retail, aviation, power grid and broadcasting companies and markets will be more open to investment, technologies and best practices from all around the world. It will be easier to bring food to market. He emphasized that greater economic openness is not a concession to the US. It is one of the most powerful tools India has to maintain and expand its growth. Burn Observe that India has no more important partner than US. Total direct investment of US in India in 2000 was USD 2.4 billion which in 2010 get to USD 27 billion. During the same period Indian direct investment in America grew over USD 200 million to nearly USD 5 billion, which is more than a twenty fold increase. So we have never invested in each other's country to such extent. "Maryland Governor Martin O'Malley gets USD 60 million in two way businesses from his India visit. Kentucky Governor Steve Beshear visited India three times and brings about USD 7 billion private sector energy deal. Norfolk has a sister city alliance with Kochi in Kerala that has helped Virginia export nearly USD 300 million in goods to India each year," he said. Burns last week in New Delhi, has urged his Indian counterparts to address non-tariff barriers, favoritism for local companies, restrictions on foreign investment and intellectual property protection because progress and predictability will only shore up India's economic foundations. "We are aiming for a high quality agreement that expands on recent reforms to provide still greater openness to investment, strong rules to protect investors and guarantee transparency and effective means for resolving disputes should they arise", he said. He added that consortium of Indian and American corporations and banks have created Infrastructure Debt Fund to finance India's massive investment in roads, grids, seaports, airports and all the necessary building blocks of a modern economy. He said that Civil Nuclear Initiative still holds promise for the people of India and US. "Without diminishing the real and frustrating challenges we have faced, both governments are now engaged in realizing practical benefits of the civil nuclear agreement, especially reliable electricity for India's homes and businesses," he said. Burns argued that our companies are making good headway in negotiations with their Indian counterpart to complete works agreements by the end of this year.

In June, Westinghouse and India's Nuclear Power Corporation took important steps that will lead to Westinghouse nuclear reactors in Gujarat. We hope General Electric can follow suit. He said, "Indian government has clearly indicated that nuclear energy will remain important part of India's energy equation and we are equally committed to expanding cooperation in other areas, from wind and solar energy to natural gas and bio fuels".


US immigration reforms: Indians want Obama to cut long wait for green cards Obama’s decision in June 2012 is to stop deportation of young illegal immigrants, who arrived in America with their parents and

graduated from US schools.

Every US presidential election throws up its share of surprises — and this time it was the Latino voters. The fact that over 70% of them voted for Barack Obama has turned the spotlight on immigration reforms, which have been largely on hold in the run-up to the elections. No surprises that President Obama highlighted immigration reform policy in his first press meet after re-election on Wednesday. The roadmap for immigration reforms are likely to address the issue of illegal immigrants but at the same time attracts and retains highly skilled manpower from overseas. "When I say comprehensive immigration reform, it is very similar to the outlines of previous efforts at comprehensive immigration reform," Obama said. He is hopeful of bipartisan support on immigration issues. And while immigration reforms may be top of the mind, even for the Republicans right now, the reforms that Indians in the US are looking at are very different from what the largest immigrant community — the Latinos — have on their wish list. Focus on Immigration Policy Sanjay Puri, chairman, US India Political Action Committee, believes that immigration reforms will now be on the fast track. "One of the things that President Obama has said consistently in public and private is that he will try to get immigration reform done in his second term. Given the challenges the Republicans faced in states such as Nevada, Florida, Colorado and New Mexico, they are likely to realize that they need to take into account a fast-growing Hispanic population, which is turning to the Democrats in a big way. To make inroads into the community and to ensure that they don't become a permanent minority, the Republicans will need to be at the table on fixing immigration reforms. It would mean that H-1B and skill-based visas, the main concern of Indian immigrants, would also become part of the discussion, along with the need to retain Indian students with degrees in sciences from US universities and giving them green cards," he said. Obama's decision in June 2012 to stop the deportation of young illegal immigrants, who arrived in America with their parents and graduated from US schools, has found huge support among the Hispanic community. This category of immigrants has been allowed to receive work authorization and their numbers are believed to be about 1.4 million. Concerns of Indians For Indians and Indian Americans, issues such as the proposed STEM legislation, which would fast-track green card for foreign students with advanced degrees in science, technology, engineering and mathematics (STEM), are far more important. So far, Republicans and Democrats have failed to reach an agreement on the proposed STEM law or the bill that will eliminate country-specific green card quotas. This law called the Fairness for High-Skilled Immigrants Act HR 3012 too is being watched very closely by Indians in America, many of whom are waiting in long green card queues. Experts now feel that there's a greater chance of the stalemate on immigration reforms ending and the process moving forward. "Given how poorly the Republicans did with Hispanic voters, there is a greater chance that the current stalemate on immigration policy will be broken. President Obama has said immigration reform is a priority and

Republicans will be more inclined to cut a deal with him to get the issue off the table for future elections. For Indian businesses, however, any immigration deal could be a double-edged sword. There may be some increase in H-1B guest worker quotas but that is likely to be coupled with more stringent rules," says Ron Hira, professor of public policy, Rochester Institute of Technology. There are major concerns over H-1B and L1 work permit visas too among Indian companies. Over the past year, it is believed that refusal rates for work permit visas have gone up sharply, which hit Indian IT companies hard. Purnima Voria, national adviser to the Obama administration, minority business development agency, United States department of commerce, says, "This is the time to raise H-1B visa issues and to tackle them. The Indian American business community is playing an important role in highlighting such issues with the US departments of commerce, immigration and labour." Immigration Laws on Hold STEM Legislation It has broad bipartisan support and is aimed at creating a new green card category for foreign students holding US master's degree or PhD in science, technology, engineering or maths. The area of disagreement between Republicans and Democrats is on whether to create 50,000 new immigrant visas or to reallocate from another category. Elimination of Country-Specific Green Card Quotas Also called the Fairness for High-Skilled Immigrants Act HR 3012, it will eliminate country-specific quotas in the allocation of employment-based green cards. For Indians facing a huge green card backlog, with some even waiting for over a decade to be granted permanent residence in the US, this will be a big advantage. DREAM Act This is a bipartisan legislation that will provide undocumented young people with a path to citizenship on completion of college. While Obama signed an executive order preventing the deportation of undocumented immigrants under 30 who meet the requirements of the act, legislative action is yet to be taken on it.


US Working With India for Increased Defense Cooperation

US Defense Secretary, Mr. Leon Panetta

As the Obama Administration moves towards strategic re-balance in the Asia-Pacific region, the US today it was working with India to develop increased defense co-operation. "We are working with India to develop increased defense cooperation," US Defense Secretary Leon Panetta told reporters travelling with him on his 4th trip to the Asia Pacific region. Early this year during his trip to India, Panetta had entrusted one of his top officials to work on reducing bureaucratic hurdles to increase India-US defense trade. "My deputy at the Defense Department is working very closely with India to try to advance that progress," Panetta said.

During his current week-long trip Panetta is travelling to Australia, Cambodia and Thailand for regional and bi-lateral consultations, which comes ahead of the South East Asia trip of US President Barack Obama. "The rebalancing to this region is a very important part of the new Defense strategy that we announced and that the effort to rebalance is real. It's going to be long-term. I mean part of this is long-term strategy and in which we'll continue to work at this. But we've also made some very tangible progress at rebalancing just in this past year," he said. Panetta said the US has made good progress with China. "As you all know, on China trip, we made good progress in trying to improve our mil-to-mil relationship and to try to develop a strategic dialogue into some very key areas that are extremely important if we really are going to advance peace and prosperity in the region," he said.

Click here for index India, US discuss ways to lower barriers to trade, investment

Committed to strengthening bilateral economic ties, India and the US today discussed ways to lower trade and investment barriers further. In a joint statement after the India-US Economic and Financial Partnership meeting, Finance Minister P Chidambaram and US Treasury Secretary Timothy Geithner said the two sides will also strengthen co-operation to combat money laundering and terror financing. They said India and the US are committed to exploring new areas to deepen and broaden economic and financial ties. "Both countries recognize the great potential benefit from working together to meet the challenges of a shared future to generate jobs, sustain growth and help ensure macroeconomic stability... "We discussed ways we can further lower barriers to trade and investment to facilitate stronger growth and job creation," the statement said. "Our work continues on infrastructure financing." At the meeting, the two sides discussed economic and financial developments in their economies and in the world. We agreed to deepen our cooperation bilaterally and in multilateral fora, including the G-20 to contribute towards steering the global economy out of uncertainties and achieving strong, sustainable and balanced growth going forward," the statement said. The two sides agreed to expand cooperation to deepen capital markets and strengthen financial regulations. The third partnership meeting was attended by RBI Governor D Subbarao and US Federal Reserve Chairman Ben Bernanke, among others. "The Partnership (launched in 2010) meetings have served as the forum for the highest level of engagement between India and the United States," the statement added. The growing bilateral trade and investment across products, services and technology "is a sign of our commitment to build our relationship on a solid foundation that utilizes our mutual strengths", it said.


State’s Burns Cites Strategic, Economic, People Ties with India

Deputy Secretary of State William Burns

The United States and India, linked by “a steady convergence of interests and values,” have created a vitally important partnership based on strategic cooperation and economic and people-to-people ties, according to Deputy Secretary of State William Burns. “The essence of the vital partnership that we’re building lies in a simple truth. For the first time, for both of us, our individual success at home and abroad depends significantly on our cooperation,” Burns said in Washington recently. STRATEGIC COOPERATION Burns said that the United States and India have a strong interest in a peaceful future for Afghanistan and share a long-term commitment to sustainable growth for Afghanistan's economy, strong democratic institutions in Afghanistan and an Afghan-led peace and reconciliation process. “Afghanistan will need massive private investment and far greater economic linkages to its neighbors,” he said. The deputy secretary praised India for committing more than $2 billion in development assistance to Afghanistan since 2001, and noted that Afghanistan already sends one-quarter of its exports to India despite not having direct access to India’s markets. India is engaged in negotiations with Turkmenistan, Pakistan and Afghanistan to build a gas pipeline that will contribute to the creation of a New Silk Road, he added. The deputy secretary said the United States and India are “united by our experience of tragedy and terror, shared threats in Afghanistan and a shared vision for a peaceful and open Asia-Pacific.” Cooperation in counterterrorism, which did not exist until a few years ago, is now robust and extends to all levels of policy and law enforcement, he said. India has bought billions of dollars of U.S. defense equipment in the past four years, even as the defense relationship evolves toward co-production and joint research, Burns said. To keep pace with India’s rising global importance, the United States supports India’s push to become a permanent member of the United Nations Security Council, he said. The deputy secretary said India already is exercising global leadership in anti-terrorism efforts, sanctions against Iran, supporting elections in Egypt and staffing peacekeeping operations. SHARED PROSPERITY Burns said the United States' and India's long-term economic interests are mutually reinforcing. He pointed out that the United States is India’s most important partner in its modernization, which is lifting hundreds of millions of its citizens out of poverty. U.S. investment in India increased more than tenfold between 2000 and 2010, to $27 billion. During that period, India’s investment in the United States grew from $200 million to nearly $5 billion. “We have, literally, never been so invested in each other’s success,” he said. The United States wants to conclude an investment treaty with India that will expand on recent reforms, offer strong rules to protect investors and guarantee transparency, and provide effective means to resolve disputes. He said the United States is eager to partner with India to build civil nuclear energy plants, roads, power grids, seaports and airports.

“If we do not seize these economic opportunities, others will,” he said. PEOPLE-TO-PEOPLE EXCHANGES India’s greatest resource, Burns said, is its people, and the United States wants to increase interactions between Americans and Indians in science and technology, educational exchanges, civil society engagement and innovation. “The organic growth of people-to-people ties is what has set the pace in our relationship for many years, and our governments are only now catching up,” Burns said. He cautioned that continued progress in the U.S.-Indian relationship cannot be taken for granted. “It’s a little like riding a bike; either you keep peddling ahead, or you tend to fall over,” he said.


Gujarat IT companies diversify operations in US

Barack Obama's return to the White house and his strong views against outsourcing jobs overseas may be bad news for the Indian outsourcing industry. However, IT companies in Gujarat have found a way to retain their clients in the US by branching out to other segments. IT companies in Gujarat, which relied highly on North American companies, have either started focusing on other countries in Europe and Asia in the last 12 months or have diversified into smaller operations of consulting and providing enterprise solutions to American companies. Azure Knowledge Corporation opened an office in Philadelphia in July to run a project for the US Department of Education. The Ahmedabad-based knowledge processing outsourcing company checks and ranks the quality of US-based call centers which work for the education department in the US. Jay Ruparel, co-founder, Azure, "During the presidential campaigning, Obama was pretty serious about keeping jobs in the US, which is why we thought of expanding our services and running quality control projects there. Although the operations are quite small, it will help us deal with any allegation that we are snatching jobs by taking them offshore. Besides, we can retain clients and it will give us a cushion amid slowdown." In December 2011, the Obama administration tabled the US Call Centre Bill to put aggressive mandates on all overseas call centre operations. Sunil Kakkad, president, Gujarat Electronics & Software Industries Association, said, "Several small companies from Gujarat have opened office in the US and are diversifying into other segments in IT to be safe against new anti-outsourcing policies." Kakkad, who is the chairman and managing director of Sai InfoSystem (SIS), recently started the company's mobile commerce operations in Chicago out of fear that the Obama government may bring out a policy against outsourcing. "The precise reason we started operations in the US is the fear that the government may go against outsourcing anytime," said Kakkad. According to the industry's apex body Nasscom, Indian IT firms have recently increased their investment by ten times in US-based centers. This has created around 175,000 jobs in the US, which was facing high unemployment rates at one time. Despite the strong anti-outsourcing views, some Gujarat companies are optimistic about the growth of the industry in the US market. Pratul Shroff, founder, eInfochips, said, "Visa rejections soared under Obama's administration and our company also experienced it. But, almost 96 per cent of our revenue comes from the US. It means that whenever there is a crisis, there is potential. Once customers see the value of outsourcing offshore, they will come to Indian companies."


US-based investor plans start-up school in Kochi Freeman Murray, an investor and mentor based in the US, would set up a start-up school for young entrepreneurs in collaboration with the Start-up Village, Kochi, India’s first telecom incubator.

The school will come up at the Start-up Village in partnership with Jaaga.in, a hub of digital creativity in Bengaluru supporting designers, start-ups, and digital freelancers. Jaaga.in has been set up by Murray. Addressing a press conference here, Freeman said the school would enroll 100 students initially for a 6-month course of which 4 months would be devoted to residential classes. Brighter ones with better ideas and entrepreneurship skills would be selected for the final two-month course. Preference would be given to those with better communication skill. The school would help young first time entrepreneurs to launch successful Internet companies. Startup Village CEO, Sijo Kuruvilla said the engineering colleges in the state had started to encourage their students to set up their own ventures and the results were showing in the growing number of applications reaching the Startup Village. Around 20 students were applying every week, he added. The Kerala government recently announced a policy to encourage student entrepreneurs. The policy ensures grace mark and relaxation in attendance for students who start new ventures.


US explores treaty to nail US tax defaulters in India The US has said it is working on an inter-government engagement with India and other countries to check non-compliance by American taxpayers using foreign bank accounts in their jurisdictions. Through these engagements with more than 50 countries, the US is looking to implement information reporting and withholding tax provisions, commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted in 2010, FATCA aims at checking non-compliance by US taxpayers using foreign accounts. It requires foreign financial institutions to report to the US tax department information about accounts held by US taxpayers, or by foreign entities in which they hold a substantial ownership interest. Concerns have been raised in the past by various foreign banks and other financial institutions about the FATCA provisions, as it is feared that they might lead to increased compliance costs and might infringe upon the local financial secrecy laws of the jurisdictions concerned. An agreement with India will allow the US tax department to seek information from the financial institutions operating in that country about their clients who are liable to pay tax in the US. In a statement, the US Treasury Department said last night it has engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and to implement FATCA provisions. “The jurisdictions with which Treasury is working to explore options for inter-governmental engagement include Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania, Russia, Seychelles, Sint Maarten, Slovenia, and South Africa,” it said. The US Treasury has already concluded pacts with the UK. The jurisdictions with which it is in process of finalizing an agreement or it hopes to conclude negotiations by year-end include: France, Germany, Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, the Netherlands, and Norway. “Jurisdictions with which Treasury is actively engaged in a dialogue towards concluding an intergovernmental agreement include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden,” the Treasury said. Negotiations with many of these jurisdictions are expected to be concluded by the year-end, it said. “By working cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion while minimizing burdens on financial institutions,” Treasury Assistant Secretary for Tax Policy Mark Mazur said.

(L-R) Josh Wolfe of Lux Captial, John Kao of Institute for Large Scale Innovation, and Vivek Wadhwa at the fifth Annual Blouin Creative Leadership in New York City.

The U.S. presidential election is less than two weeks away, and immigration hasn’t figured very prominently in the last-mile campaigning of U.S. President Barack Obama and his rival, Republican candidate Mitt Romney. Instead, issues like jobs, the economy, and relations with China have dominated. India hasn’t come up either, apart from in a few attack ads on outsourcing aimed at Mr. Romney. But with a new book that looks at data on entrepreneurship and immigration in the U.S., Vivek Wadhwa, an adviser to students and University’s engineering management program, hopes to return high-skilled visa policy to the agenda. In “The Immigrant Exodus,” Mr. Wadhwa argues that Americans should be very concerned by the increasing difficulties that foreign information technology workers and scientists face in getting green cards. It’s a tricky argument to make in the U.S. at the moment. Even if Mr. Romney did say, in the second debate, that foreigners graduating with science and math degrees should get a “green card stapled to their diploma,” anti-immigration sentiment tends to prevail. Mr. Wadhwa’s book, while eliciting praise from some quarters, was dubbed a “shill for India, Inc.” by one reader who reviewed, while another called it a “paid advertisement for Indian IT.” “The Immigrant Exodus,” which came out earlier this month, focuses on entrepreneurship and the jobs this creates to make its case, and is based on research on start-ups carried out over several years with other academics who focus on globalization and economic activity. The research showed that between 1995 and 2005, a quarter of engineering and tech start-ups in the U.S. had at least one immigrant founder. Follow-up research, released this month, found a one percentage point drop in the number of such start-ups set up by immigrants between 2007 and 2012. (Indian immigrants were founders in a third of all immigrant-led start-ups in the last seven years.) Within Silicon Valley the change was starker. There was an 8.5% drop in start-ups founded by immigrants there since 2005. Mr. Wadhwa is particularly concerned about restrictions on the employment-based permanent residency visas, or green cards, which are capped at 140,000 per year and pave the way to citizenship. These visas make it possible for immigrants to commit to living in the U.S. and start a business there, he argues. He spoke to The Wall Street Journal about immigrant entrepreneurship, the green card backlog and which presidential candidate will be better for tech immigrants.


Indian-American professor appointed as the first director of digital learning at MIT

Sanjay Sarma, an Indian-American professor of mechanical engineering and alumni of IIT, has been appointed as the first director of digital learning of the prestigious Massachusetts Institute of Technology (MIT). In the new role, Sarma will work closely with the Institute's faculty, staff and students to consider how new models of online instruction might become integral parts of MIT students' on-campus education. Sarma, 1989 IIT alumni, has long worked to develop new instructional techniques for mechanical engineering students. The announcement of Sarma’s appointment was made by MIT's President L Rafael Reif. "He will explore, collect and build on the wisdom and experience of individuals and groups across our community, and lead us in shaping a coherent vision...On the subject of blending online learning and residential education, he will also serve as experimenter-in- chief, assessing what is working best in MIT's current educational model, what we could do more effectively and what kind of changes we should pursue, from the way course content is delivered to the way we shape the campus itself," said Reif. Sarma, who is a member of the Institute's mechanical engineering faculty since 1996, has received multiple MIT awards for excellence in teaching, including the Den Hertog Teaching Excellence Award, in 2001, and the Joseph H Keenan Award for Innovation in Undergraduate Education, in 2002. He was also named a MacVicar Fellow in 2008, an MIT honour reflecting outstanding undergraduate teaching, mentoring and educational innovation.


India big part of his plans, Barack Obama tells Manmohan Singh

“India is a big part of my plans,” US President Barack Obama said on Tuesday as Prime Minister Manmohan Singh congratulated him in person on his re-election. Singh, who came face-to-face with Obama on three occasions here for the first time after he was re-elected President in the November 6 polls in the US, told him: “Congratulations on your re-election.” The two leaders, who attended the East Asia Summit and the retreat in the Cambodian capital, shook hands and exchanged pleasantries. 51-year-old Democrat Obama had defeated his Republican rival Mitt Romney in the Presidential polls to secure a second four-year term. After Obama's re-election, Singh had said he looked forward to continuing their “friendship” and “rewarding association” as much more can be done together to further strengthen the bilateral partnership. In his congratulatory message to Obama, Singh had referred to the association between the two leaders over the past four years and recalled that cooperation between the two countries had not only been advanced across the full spectrum of ties but engagement had been deepened.

“Dear Mr. President, it gives me great pleasure to convey to you my warmest congratulations on your re-election as the President of the United States,” Singh's letter had said. Meanwhile, National Security Advisor Shivshankar Menon held a 90-minute meeting with his US counterpart Tom Donilon here and discussed bilateral relations and other issues of mutual interest. Sources said it was a very fruitful interaction on several issues of mutual interest.


US department of agriculture pegs India's coffee exports at 5.51 million bags India’s coffee exports are expected to decline by 5 per cent to 5.51 million bags (about 3.30 lakh tons) in the current marketing year due to an expected larger global supply of the brew, a USDA report said. Coffee exports from India stood at 5.81 million bags of 60 kg each (about 3.49 lakh tons) in 2011-12 marketing year (October-September), the United States Department of Agriculture (USDA) said in its latest report. “Exports for marketing year (2012-13) are forecast at 5.5 million bags, down just 3,00,000 bags from last year’s record level due to expected larger global supplies,” it added. While global Arabica prices have dropped significantly, prices for Robusta, which comprises the bulk of Indian exports, have been relatively steady, lending support to the expectation that exports will again be near record, it said. According to the government-run Coffee Board, the exports from India, the world’s 6th largest exporter, dropped by 8 per cent to 3.21 lakh tons in the 2011-12 coffee marketing year. On domestic consumption of the brew, the US agency on the farm sector said that despite a rise in demand in the domestic markets, exports still constitute a majority of the trade in the brew. “There are signs that popularity of coffee is increasing with the spread of both foreign and home-grown coffee shops. However, exports continue to siphon large amounts of coffee away from the domestic market and consumption estimates are largely unchanged,” it said. The bulk of India’s coffee production is exported and the domestic industry focuses much of its marketing effort on export promotion, the USDA added. According to Coffee Board, domestic consumption of the brew rose by 6 per cent to 1.08 lakh tons in 2010 from 1.02 lakh tons in 2009.


Norms relating Indian defense technologies need reform: Powell The US recently stressed the need for review of norms regulating defense technologies in India. "We each have very complicated procedures that govern development of technologies; sharing of technologies, export and import of technologies...trying to look at those...some of our regulations has not been revised since 1950s and 1960s. They don't reflect current role of India. And American companies are very interested in this market." We are hoping that both of us can look at trade piece of that...our side looks at export...India will continue to look at its acquisition process and see how it can be streamlined given complexities of these issues; it is not going to be overnight effort. I see it as part of the continuity with the second Obama administration," US ambassador Nancy Powell said at the World Economic Forum in Gurgaon. Asked about deputy secretary of defense Ashton Carter's remark about the US involvement in developing India's indigenous defense technologies, she said US companies are very interested in it and suggested the need for revising certain regulations to make it possible.

Asked how she was looking at Indo-US relationship in the next six months, the ambassador said it is likely to be reviewed so that the cooperation can be further expanded. "I think both of us have new leaderships and foreign ministries. I think there will be a review of our relations. Current dialogues, trade interactions and see what we can strengthen ....I think the bilateral investment treaty have provided a new model. India is also developing a new model. Discussions which have gone on for the last two years can make some progress," she said. Asked about the US position on Pakistan sticking to the Kashmir issue, she evaded a direct reply and said the US was "encouraged" to see the new visa regime and initiative for better economic ties between the two neighbors.


US strongly values strategic partnership with India, says State Department

spokesman

Mr. Salman Khurshid, Cabinet Minister of the Ministry of External Affairs, India

Valuing its "strategic partnership" with India, Washington has expressed the hope that new External Affairs Minister Salman Khurshid would be a valued partner in carrying forward their strategic dialogue. "We highly value our strong strategic partnership with India," State Department spokesman Mark Toner told reporters when asked about Sunday's Cabinet reshuffle when Mr. Khurshid replaced S. M. Krishna. "Certainly we've had an especially productive relationship with Minister Khurshid in his prior service at the Ministry of External Affairs as well as other positions in the Government of India," he said. "And we believe he'll be a valued partner in carrying forward the strategic dialogue that Secretary (of State Hillary) Clinton has co-chaired and in building what President Obama has called a defining partnership with India," Mr. Toner said. "His experience and his expertise in the business community or on business issues are also important to our bilateral relationship and are particularly welcome." "And certainly Secretary Clinton, enjoyed a very productive, constructive relationship with Minister Krishna and she looks forward to working closely now with Minister Khurshid," Mr Toner said. Asked if Ms. Clinton had invited Mr. Khurshid to visit the US, he said: "I'm not aware that they've spoken yet, and so I don't know."


US fiscal cliff won't impact Indian IT sector: Nasscom Despite fears the fiscal cliff in the US would lead to that country cutting budgets next year, the National Association of Software and Services Companies (Nasscom) feels it is unlikely this would have an adverse impact on the $100-billion Indian information technology (IT) sector. A fiscal cliff refers to the simultaneous expiry of tax breaks and the introduction of spending cuts. Nasscom, which recently scaled down its estimate of growth in India’s software services for FY13 from 11-14 per cent to 9-11 per cent, said with the election in the US over, “the worst may be behind us”.

“Our business depends on our customers. This time, the focus of the Obama administration would be more on economic growth. The priority would be on creating jobs. To achieve that, they need to support business,” said Nasscom president Som Mittal. He added the trend in the quarter ended September showed businesses would see growth. Recently, international trade expert Jagdish Bhagwati had expressed concern on US President Barack Obama’s second term. He alleged Obama had stifled outsourcing and termed him the worst US president. Analysts feel as the fiscal scenario in the US turns grim, there would be some impact on the Indian outsourcing industry. “There could be automatic spending cuts and tax increases. To gauge the impact, we need to see who the key clients of Indian IT companies are. If corporate tax rates increase, it wouldn’t augur well for the Indian IT industry. There may be some impact, but it needs to be seen what the extent would be,” said Harit Shah, senior research analyst, Nirmal Bang Institutional Equities. When asked if Nasscom would want to move to quarterly estimates, as business visibility was becoming difficult, Mittal said, “We might come out with six-month guidance. But as of now, we do not see a reason to do so. We will come out with our annual guidance in April next year.” He added though the industry’s pricing environment had not improved, it had managed to remain profitable. “Over the last four to five years, billing rates haven’t gone up drastically; neither have they come down. But wage inflation has been there and companies have expanded. This shows Indian companies have sharpened their business focus, innovated, added employees and have still managed to maintain margins,” he said.

Click here for index Visa interview waived for four more categories, says US envoy

More jobs for both Indians and Americans, energy security, women entrepreneurship and greater bilateral ties between the two countries were some of the issues before the US Ambassador to India, Nancy J Powell. Announcing visa interview waiver for four categories of work visa including H1-B and L1-B, she told the members of the Indian Women’s Press Corp that ideal situation would be more jobs for both the US and India. A diplomat who is also a Libran she was true to her character, doing a balancing act while fielding questions. Gentle but firm she said that the second stint of Obama Government, while bringing in continuity, would also reflect some changes. Tactfully, pre-empting any questions on visa, she said taking forward the Interview Waiver Program (IWP) launched in March, it has been decided to expand it to four more categories now. The following Indian applicants may also be considered for streamlined processing: children applying before their 14th birthday travelling on any visa class, students returning to attend the same school and same program, temporary workers on H1-B visas, and temporary workers on Individual L1-A or Individual L1-B visas. The renewal application must be within the same classification as the previous visa. If the previous visa is annotated with the words “clearance received,” that applicant is not eligible for a waiver of a personal interview, a US Embassy statement said. Not all applications will be accepted for streamlined processing, the statement further said adding that “As always, consular officers may interview any visa applicant in any category. Applicants who are renewing their visas may still need to make an appointment for biometrics (fingerprint and photograph) collection, and all applicants must submit all required fees and the DS-160 application form.” N-DEAL On a question regarding the Indo-US Civil Nuclear Agreement, Powell said that there were some issues which need to be sorted out. Powell said that India is yet to join some international agreements on trade in nuclear technology. A high-level team from the US will be in India to discuss on the issue soon. Powell hoped for an early resolution of all the contentious issues on the subject. The private US companies were not comfortable with the way the current legislation imposed liability in the case of accidents.

As regards to the free trade agreement (FTA) with India to allow export of shale gas from the US, she said that at present a study is being undertaken by the US Government on how much shale gas the country has, what is the gas demand, and the benefit and costs involved if exports were allowed. “By end of the year a clearer picture should emerge,” she said adding that Indian companies will have to wait for the report before any deliberations on trade begins. At present only one project that of Indian company GAIL (India) for gas exports has been allowed. There are other two projects which are pending approvals, and their fate is dependent on the outcome of the study.

Click here for index India's Bold Solution to the U.S. College Crisis: Federal Universities

A system of national universities would fight the rise in tuition, accommodate millions of low-income and immigrant students, and boost national research spending

What if we could attack three major national challenges with one government program? That would be a major coup. And in fact, I have an idea for exactly such a program: A system of federal universities.

Much has been written about the explosion in tuition at American universities. Actually, this rise has been exaggerated; much of the increase has been in the "sticker price" of college rather than the "net price," which is what students actually pay (need-based financial aid and merit-based scholarships make up the rest). Still, according to the College Board, the inflation-adjusted net price of public universities has gone up by over 30% in the last 15 years, while for private universities it has gone up by 22%. Those are not the enormous rises that have been advertised in the press, but they are substantial. And much more worrying is the rise in student debt. Increasingly, students are paying for college with debt instead of with their parents' money or with their own earnings. As a result, student debt increased by over 500% from 1999 to 2011. If there is anything that recent economic history should teach us, it is that household debt is a very dangerous thing.

So the price of college is high. And attendance has been growing, especially among Hispanics. When you have increasing price and increasing quantity sold, Econ 101 tells you that what you're seeing is a shift in the demand curve. Lots more people want to go to college, and they are willing to pay more. The reason for the increase is not surprising -- it's the college wage premium, combined with low unemployment among people with a college degree. No wonder everyone wants to hop on that gravy train, even if it means shelling out big bucks up front.

And we can only expect demand to increase, especially if we do what we ought to do and let in a lot more high-skilled immigrants. Those immigrants will be great for the economy, but their kids are going to be competing with native-born kids for college spots. Unless we do something, that competition could cause a xenophobic backlash among the high-skilled native-born, as well as driving up tuition even further. What do you do when you have a big increase in demand for a product? Well, if you're a company, you probably ramp up supply. That will increase quantity sold, and bring prices down. But how can the supply of college seats are increased?

The private sector has had a devil of a time providing quality college education. Sorry, University of Phoenix, but you haven't managed to command the prestige of the University of Arizona. It may be that college is just something that nonprofits are better positioned to provide than for-profit firms. Another effort to bring college to the masses is online education. This is more promising. But while online courses can be great for transferring specific skills (like coding), they inherently can't provide many of the essential kinds of "human capital" offered by real, in-person college -- human networks, career ideas and perspective, one-on-one mentoring, and of course personal growth. It is no coincidence that "college" comes from the word for "community."

So here's my idea for increasing the supply of college: A system of federal universities. Currently, we have no such system, but it is not unconstitutional. After all, the federal government runs the United States Military Academy at West Point. My idea is simple: The federal government provides start-up funding for a large number of new universities, offering attractive salaries to professors.

Why federal universities instead of state universities? State spending is likely to focus on the existing state university systems. But that will have a limited impact on total college availability, for two reasons. First, increased state funding for existing universities may simply displace alumni funding or tuition funding. That could lower the net price of college,

but would have a limited impact on enrollment. Second, there are many geographic areas that don't yet have elite universities, or only have a few (Ohio comes to mind, as well as much of the Southwest and the Pacific Northwest). Federal universities could fill these gaps. Finally, it's very difficult to coordinate policy between states, and if we want to create new universities on a large scale, only federal government can do it.

WHERE FEDERAL UNIVERSITIES HAVE WORKED: INDIA AND JAPAN Federal university systems have been very successful in other countries. One prime example is the Indian Institutes of Technology (IIT), a system of 16 engineering schools that have produced a startling number of superb graduates in technical fields. The best IITs rival MIT and Caltech in quality. Another example is Japan's federal university system. Top federal universities such as Tokyo University, Osaka University, and Kyoto University rival the Ivy League in quality. The "proof of concept" is there. A system of national universities would (1) fight the rise in tuition, and (2) accommodate all those smart second-generation kids whose parents we should be recruiting to our country in droves. But it will also help the nation in a 3rd way by giving us an outlet for higher research spending. The U.S. has been spending less and less on R&D as a percentage of our GDP, even as R&D becomes more and more important. In part because of this, there are legions of PhDs being forced to take private-sector jobs in which they have no expertise. These trends need to be reversed in order to maintain America's status as the leading technological nation. And a system of federal universities is the perfect vehicle to increase research spending and provide an outlet for all those PhDs. At this point, some of you may be rolling your eyes: "Another budget-busting federal program?" Well, as any chief executive will tell you, it takes money to make money, and higher education is what America does best. A federal university system is an investment in a key public good. But also, comfort yourself in the knowledge that federal universities will rely less and less on federal funding as time goes on - as they build up prestige and alumni networks, the federal universities will eventually become self-funding nonprofits, much as our state universities are becoming. Federal universities are an idea whose time has come.

Click here for index India an important strategic partner of US: Ami Bera

Mr. Amerish B. "Ami" Bera is an American physician and the congressman-elect for California's 7th congressional district.

California-based physician Ami Bera, who created history by becoming only the third Indian-American to get elected to the US House of Representatives, has termed India as an important strategic partner of the US. “I travelled to India. India is the world's largest democracy, and one of the world's largest economies. It's an important strategic partner to the US and the two countries have a history of collaboration on many regional and global issues,” the Congressman-elect said in an interview.

Bera asserted that New Delhi should continue with its strategic partnership with Washington and the country should remain a market destination for US goods and services. On the state of affairs in his own country and the debate over outsourcing of jobs to countries like India, Bera said lawmakers in Congress must first focus on rebuilding America, restoring economic foundation and sparking development of industries and good jobs that are not easily outsourced. “Next, we must strengthen our workforce, and eliminate tax loopholes that reward companies for sending jobs overseas. Most critically, we must revamp our trade strategy. We need trade rules that help facilitate moving American products into new markets, creating jobs here. If done correctly, strengthening our trade relationship with India will create jobs here in America,” he said. 47-year-old Bera is only the third Indian-American to have been elected to the US House of Representatives after Dalip Singh Saundh in 1950 and Bobby Jindal in 2005.


FDI in retail will benefit consumers in India: Nancy Powell Allowing FDI in India's retail market will benefit the Indian consumers and farmers, American Ambassador to India Nancy Powell said. "We see benefits for consumers in India, a much bigger impact will come to the producers, the farmers in particular, to those who handle produce as they come out of the farms," Powell told journalists during an interaction at the Indian Women's Press Corps. Explaining the benefits of multi-brand retail, Powell said: "An incredibly high percentage, 40 percent of food, is lost in India due to the lack of cold storage, the lack of quick transportation. This is one of the very important benefits of multi-brand retail that they have brought across the world in improving the supply chain." "It has meant better prices for many of the producers, higher return as they do not lose as much between the farm and the store," said Powell, who is the first woman US ambassador to India. On the controversy over foreign direct investment (FDI) in retail in India, Powell said: "Obviously it is a political issue here... how you work with the kiranas, the smaller traders but, it is also a recognition that not everybody is going to a big store, you will continue to have variety of retail outlets partially due to transportation. This will continue to be part of your political debate but we are very pleased to see it coming to India." "I think multi-brand retail is something which has been very controversial in my part of the US. When Wal-Mart came, we saw some very familiar debates which I now read in the Indian newspapers," she said. "As we worked at the impact of multi-brand retail on consumers, we found it provides consumers more selections of goods and services to choose from and at lower prices and fresher products," she added. The Left parties want a debate and vote on FDI in the winter session of parliament starting November 22. The Bharatiya Janata Party (BJP) has also said that the party will oppose FDI and coordinate with the National Democratic Alliance (NDA) constituents and other opposition parties on the issue.


After Atlanta, India now working to open Consulate in Seattle India has renewed its bid to establish a consulate in the US city of Seattle - the home of Boeing and Microsoft -- now that it’s latest diplomatic post in Atlanta is operational. The Indian Embassy in Washington while floating its tender for outsourcing of visa and passport services has told prospective bidders to be ready to set up their facilitating centers in Seattle (when notified) along with other Indian diplomatic missions in the US - Washington DC (where the Embassy is located) and five Consulates in New York, Chicago, San Francisco, Houston and Atlanta.

It is understood that while the State Department has given the approval in principal, necessary clearance for establishing the Seattle Consulate is yet to come. Indian officials would not comment as to when they expect the Seattle Consulate to start functioning, but the US has termed it as a positive sign in the growing partnership between the two countries. "The Department of State considers the Government of India's desire to open new consular posts in the United States as a positive sign in the growing partnership between our countries," Emily Horne, spokesperson of the Bureau of South and Central Asian Affairs of the State Department, told recently. The decision to establish Indian Consulate in Atlanta and Seattle was taken in October 2008 during the meeting of the then US President George Bush and Prime Minister Manmohan Singh. According to a State Department statement issued in January this year, on August 20, 2010, the Department informed the Government of India that it could open a consulate in either Atlanta or Seattle. "On February 25, 2011, the Government of India informed the Department that it had chosen Atlanta as the site of its new consulate. The opening of consulates is governed by principles of reciprocity," it said. The State Department said it continues to review the necessity of additional diplomatic missions in India given the increase in relationship between the two countries. "The State Department constantly evaluates our diplomatic presence and footprint around the world. As the number of American citizens, business, and visa applicants keeps growing abroad we are of course examining how best we can furnish services to them," Horne said. "In view of India's rise and our burgeoning strategic and economic partnership, we recognize India's growth into one of the top three global economies, further necessitating ongoing, careful review of this kind," she said.

Click here for index Stanford B-school to start course in India

The part-time certificate programme for entrepreneurs will be launched from July 2013 Stanford Graduate School of Business is looking to kindle the innovative mindset of students by launching new courses for entrepreneurs across the world, with support from Silicon Valley experts. The institute will soon launch Stanford Ignite, a part-time certificate programme for Indian entrepreneurs in Bangalore. To be launched in 2013, the theme of the course will be entrepreneurship and innovation.

The highlight is that Silicon Valley professionals would be a part of this endeavor, guiding prospective start-up entrepreneurs in their endeavors.

Stanford Ignite is an eight-week, part-time programme that teaches innovators how to formulate, develop, and commercialize their ideas. Participants will learn core business skills and experience working with a team to evaluate and develop ideas into a business plan.

INDIA ON RADAR

• Stanford Ignite, a part-time certificate programme for Indian entrepreneurs, would be launched in Bangalore

• To be launched in 2013, the theme of the course will be ‘entrepreneurship and innovation’

• Silicon Valley professionals would be a part of this endeavor, guiding prospective start-up entrepreneurs in their endeavors

• Online application will be available January 2013 • The fee for the course would be approximately Rs 4.5

lakh ($8,350) • Stanford has also launched an online Innovation and

Entrepreneurship Certificate Programme • Professionals in India and around the world will be able to

access Stanford faculty and Silicon Valley experts as they learn essential skills and effective strategies for working in and managing innovative organizations

Online application will be available from January 2013. Candidates should either be enrolled in masters, post-doctorate students studying non-business fields or professionals with a bachelor’s or equivalent degree from an accredited institution. The programme is intended for those who don’t have a graduate business training. Apart from Stanford Graduate School of Business faculty, prominent executives and corporate, venture, and angel investors would participate as guest speakers, expert panelists and business mentors to provide candid feedback on team projects. Slated to begin from July 2013, the fee for the course would be approximately Rs 4.5 lakh ($8,350). Stanford has also launched an online Innovation and Entrepreneurship Certificate Programme. Professionals in India and around the world will be able to access Stanford faculty and Silicon Valley experts as they learn essential skills and effective strategies for working in and managing innovative organizations. An engaging digital experience has been developed by the Stanford Center for Professional Development at the School of Engineering and the Graduate School of Business to deliver the course content. Registration is now open for the first two courses, Marketing Innovations and Leading Innovation. The fee for each course would be approximately Rs 54,000 ($995). Additional courses will be launched throughout 2012 and 2013. Participants may enroll in just a single course or earn the professional certificate from Stanford by completing any eight of 12 courses on topics including prototyping, marketing, social media, innovation strategy, and entrepreneurship. The programme is led by faculty directors Robert Sutton, a professor of management science and engineering at the School of Engineering, and Hayagreeva Rao, professor of organizational behavior and human resources at the Graduate School of Business. Courses will be taught by Stanford faculty, drawing on instructors from the graduate school of business, the engineering school, the Hasso Plattner Institute of Design, as well as Silicon Valley industry leaders, using interactive methods. Garth Saloner, dean, Stanford Graduate School of Business, said, “Online education is a big aspect for us. Though it cannot be a substitute for classroom learning, it is a good opportunity for people who cannot come to Stanford for their education.” Going forward, Stanford Graduate School of Business will look at offering blended programmes, with online components being a part of it. According to Saloner, innovation and entrepreneurship will be an essential component of the courses. Entrepreneurial mindset is evident among students with about one in six students opting to start his/her venture, rather than joining a company. According to the dean, Stanford Graduate School of Business, students stand to gain as the innovation moves into Silicon Valley. “We help students take their ideas into the Valley,” he said. Indian students opting for the online course and the offline course in Bangalore will receive the expertise from Silicon Valley, he added. Then, there is the Stanford Venture Studio for entrepreneurs. Built as a pilot during the summer, and launched in September, it is a collaboration space where entrepreneurial Stanford graduate students practice the skills and concepts they are learning in the classroom. In addition to a robust work and collaboration space, the Studio provides a place for a number of programmes that complement classroom learning and help students practice supporting each other in designing and leading new ventures. Talking about the entrepreneurial ventures in India, Saloner said that India could improve its entrepreneurial aspirations by improving institutional elements like legal efficacy, infrastructure growth and fund availability. "The key is also having a culture that permits acceptance of failure,” he said. Stanford Graduate School of Business also has links with corporate alumni in India, who partner the institute in various initiatives. Executive education is offered to Indian corporates by Stanford, both at their US campus and in offices of corporates in India. Reliance Industries Limited (RIL) has an initiative to fund students going to Stanford Graduate School of Business. RIL created the Reliance Dhirubhai Fellowship to support Indians with financial need in obtaining an MBA at Stanford, which may award up to five fellowships. The fellows will receive full financial support for the two-year MBA programme.

Within two years of completing their Stanford MBA studies, Reliance Dhirubhai Fellows are required to return to India for a period of at least two years employment in the public or private sector. “We look to strengthen the existing partnerships with corporates like RIL and also forge new ones,” the dean said. Saloner said Stanford Graduate School of Business was looking at opening up a branch office in India. Stanford Graduate School of Business has students from 54 nations.


The Shale Gas Revolution in America: An Opportunity for India Good news is seldom expected in the world's hydrocarbon economy and the shale gas boom in North America follows that trend. The rise of this unconventional source of natural gas has created a situation whereby the United States (US) may become a net exporter of the same by 2016 thereby opening up a hitherto unexpected source of supply for gas-hungry countries such India. India, which is increasingly dependent on liquefied natural gas (LNG) imports to bridge the domestic demand-supply gap, needs to diversify imports away from volatile regions and oil indexed contracts. However at the moment the US allows permit-less exports of domestic natural gas to only those countries with which it has a free trade agreement (FTA) and this is proving to be a significant hurdle for Indian majors looking to source from the US market. The changed scenario can be gauged by the fact that till even 2006 most analysts were predicting that the US would have to continue to depend on imports till at least 2030. Accordingly some 10 LNG re-gasification terminals (import) came up mainly along the eastern seaboard of the US. Circa 2012 however, the Energy Information Administration (EIA) projects that US domestic production ( which already covers 94 per cent of consumption) will rise some 29 per cent by 2035 with more than half of the projected increase coming from shale gas plays which already account for a quarter of annual output. Shale output currently accounts for around 25 per cent of total natural gas production in the US and has created a situation where US working reserves are at a five year high with storage having become an issue. This greatly increased availability of natural gas from unconventional sources in the US has of course led to a dip in gas prices. The Henry Hub, which is the main US gas benchmark traded on NYMEX has consistently recorded around the $3 per million British thermal units (mmbtu) for the past few months. To put this in perspective, Asian LNG cargoes ex-ship has been delivered at up to $18 per mmbtu after the nuclear shutdown in Japan post-Fukushima. Clearly a time has arrived where suppliers in the US will be increasingly looking at global markets to take advantage of arbitrage opportunities. Even today, 67 per cent of the LNG imported by the terminals at Cameron, Sabine Pass and Freeport are being re-exported (re-exports to non FTA countries require US Federal Energy Regulatory Commission approval) by them in 2011. However, LNG import terminal operators in the US are now looking beyond merely the right to re-export and want to secure approval for exporting domestic LNG to non-FTA countries. Ten such proposals are currently pending with the FERC with only Sabine Pass having been approved in April this year. These approvals are essentially for siting liquefaction facilities at existing import terminals and would require substantial investment (typically over 1000 dollars per tons per annum) as well as producer commitments. Now even as the US turns a net exporter of natural gas, the situation is unfortunately not as rosy for India. Lacklustre production from highly touted estates such as the Krishna Godavari (KG-D6) field means that India has to increasingly turn towards LNG imports. Demand by 2014-15 will touch 356.16 million mmscmd and will rise further to 473 mmscmd in 2017-18 at a compounded annual growth rate of 19.5 per cent for the next five years. Domestic production will unfortunately only yield about 240 mmscmd by that time. Anticipating this, heavy investment is being made into LNG re-gasification terminals and India's total LNG re-gasification capacity seems poised to rise from 13.5 million tonnes per annum (mtpa) currently to 48 mtpa by 2017-18. Naturally given the projected import requirements India is now on the lookout for cheaper gas. Unfortunately in the absence of a true worldwide liquid spot market for natural gas its price varies across regions typically being indexed to the price of crude in long term contracts. For instance India's current LNG suppliers such as Qatar's RasGas charge 12.67 per cent of Japan Customs-Cleared Crude (JCC) and Petronet LNG pays a further 0.26 US dollars per mmbtu for shipping

and that translates into 12.93 US dollars per mmbtu at current JCC prices. What is more RasGas is apparently demanding that the indexation be increased to 14 percent. It is not surprising therefore that Indian majors such as GAIL are increasingly attracted to the US where Henry Hub linked supplies are becoming available. GAIL has for instance sewn up a contract with Houston-based Cheniere Energy Partners LP (CQP)'s to source 3.5 million tons of LNG a year for twenty years from Sabine Pass - the only terminal approved to export LNG to non-FTA countries. GAIL will pay a capacity charge between 2.5 dollars-3 dollars + 115 per cent markup on Henry Hub per mmbtu. So if we assume 3 dollars as the Henry Hub price this means that GAIL will pay 8.95 dollars - 9.45 dollars per mmbtu under this deal and that is better than what any Indian importer is paying at the moment. This deal involves gas being made available from GAIL's upstream investment in Eagle ford shale where it has a 20 per cent stake bought from Carizzo Oil & Gas Inc thereby ensuring that Indian investment in shale fields actually leads to that gas reaching Indian shores. Unfortunately as GAIL and other Indian majors such as ONGC look to pursue similar deals with other LNG terminal operators in the US they are thwarted by the fact that FERC approval for non-FTA exports is still pending for most of these terminals as pointed out above. Getting an approval for setting up liquefaction facilities at an LNG import hub is an arduous process and requires public hearings conducted by the FERC under Section 3 of the US natural gas act and must be deemed to be in the 'national interest' of the US. Such approvals can take up to three years judging by the example of Texas Freeport and if you add another three and half years as the typical lead time for building a liquefaction train one begins to understand that more LNG import deals with US companies are some distance away. Japan has already indicated that it can't wait that long and wants a FTA waiver now given that most of its reactors are still shutdown post Fukushima and it needs gas for substitute power generation. India should demand the same given that Indian companies have demonstrated that they are willing to make substantial investments both upstream and downstream in the US gas sector- something that US producers clearly need, to keep riding this boom. Today, we are faced with a lopsided situation where LNG hungry but non-FTA countries such as India and Japan are unable to automatically source domestic US LNG while, gas rich countries many of whom already have an FTA in place with the US can actually use this fact to lock in future US supplies for greater cartelization in natural gas markets! Meanwhile another option that can be pursued is to route gas via Canada (which already has an FTA with the US) by investing in the LNG import terminal at Saint John, New Brunswick and add liquefaction facilities. Saint John is rather close to the giant Marcellus shale play in the north-eastern US with two gas pipelines crossing the US-Canada border in the vicinity. Such a move would also require clearance from Canada's National Energy Board although this could probably be secured relatively quicker. Be that as it may a recent study by the EIA projects only a 54 per cent rise in US wellhead gas prices over a 20 year timeframe beginning 2015 in a worst case scenario of rapidly growing exports and lower than expected reserves coupled with a strong US economic rebound. Even in this unlikely situation Henry Hub linked LNG imports from America will probably be cheaper than Asian LNG contracts and US policy makers could realize that a win-win US-India energy partnership in gas might just be in the offing.

Calendar of IACC Events for 2012

Date/ Time Event/Topic Hotel/City/Information

November 23, 2012 “Members Networking Nite” Register Now or Read more

Sheraton Park Hotel & Towers, TTK Road, Alwarpet, Chennai, India

November 24, 2012 IACC Thanksgiving The Taj West End, Bangalore, India

December 05, 2012 IACC in Association with IMC & NASSCOM Present an Interactive Session on B1/B2 (Business and Tourism) and GSS (new visa processing system) Read more

Walchand Hirachand Hall, 4th Floor, Indian Merchants Chambers ( IMC), Churchgate ,Mumbai, India

December 06-08, 2012 IACC Supports International Taxation Conference 2012 Read more

ITC Maratha Hotel, Mumbai, India

December 06, 2012 IACC-Kerala jointly with The Malabar Chamber of Commerce will be organizes an Interactive Session on ‘US Visa’ addressed by Mr. Gaetan W. Damberg-Ott and Mr. Benjamin S. Embury, Consular Officers from the U.S. Consulate, Chennai

P.V. Samy Memorial Hall, The Malabar Chamber of Commerce, Calicut, India

December 10-11, 2012 IACC supports Global Aerospace Industry Meet in Bangalore Read more

Hotel Chancery Pavillion, 135, Residency Road, Bangalore, India

December 11, 2012 A Joint program on ‘U.S. Visa Procedures’ by Ms. Heather M. Smith, Chief of the Consular Information Unit, U.S. Consulate, Chennai in association with Infopark-Kochi.

MP Hall, Infopark, Kochi , India

December 14, 2012 IACC-Gujarat Branch jointly organizes a programme on “SME SUMMIT 2012” followed by Cocktail & Dinner

Cambay Grand, Hall - Royal Tulip, Near PERD Centre, Ahmedabad, India

December 18 , 2012 Breakfast meeting “Meet Success First Hand”

Hotel Vivanta by Taj-Connemara, Binny Road, Chennai, India


Forthcoming Events

https://www.iaccindia.com/event.asp?id=152




Indo-US Trade Statistics

2012: U.S. Trade in Merchandise goods with India Month U.S Exports to India U.S Imports from India Balance of Trade

January 2012 1,524.60 3,109.80 -1,585.20

February 2012 1,503.70 3,027.60 -1,523.90

March 2012 1,715.80 3,364.40 -1,648.60

April 2012 1,792.20 3,335.50 -1,543.20

May 2012 1,832.30 3,571.80 -1,739.50

June 2012 1,809.00 3,466.60 -1,657.60

July 2012 1,785.90 4,132.20 -2,346.30

August 2012 2,082.80 3,929.40 -1,846.60

September 2012 2,220.40 3,327.70 -1,107.30

Total 2012 16,266.7 31,265.00 -14,998.2

2011: U.S. Trade in Merchandise goods with India Month U.S Exports to India U.S Imports from India Balance of Trade

January 2011 1,352.6 2,524.4 -1,171.7

February 2011 1,440.7 2,229.4 -788.7

March 2011 1,735.8 3,164.6 -1,428.8

April 2011 1,875.8 3,253.4 -1,377.5

May 2011 1,996.4 3,468.8 -1,472.4

June 2011 2,076.0 3,295.5 -1,219.5

July 2011 1,812.7 3,116.9 -1,304.2

August 2011 1,847.8 3,362.0 -1,514.2

September 2011 1,726.0 3,108.5 -1,382.5

Total 2011 15,863.80 27,523.50 -11,659.50

October 2011 1,716.4 3,289.3 -1,572.8

November 2011 1,953.6 2,721.8 -768.2

December 2011 1,967.4 2,618.4 -651.0

Total 2011 21,627.6 36,167.4 -14,539.8


India – US Trade Analysis Trade and commerce form a crucial component of the rapidly expanding and multi-faceted relations between India and US. From a modest $ 5.6 billion in 1990, the bilateral trade in merchandise goods has increased to $ 57.8 billion in 2011 representing an impressive 932.14% growth in a span of 21 years. India’s merchandise exports to the U.S. grew by 13.59% from $ 27.52 billion during the period January- September 2011 to $ 31.26 billion in January- September 2012. US exports of merchandise to India grew by 2.54% from $ 15.86 billion during the period January – September 2011to $ 16.27 billion in January –September 2012. India – U.S. bilateral merchandise trade stands at $ 47.53 billion during this period.

Trade during the period January – September 2012 i) Major items of export from India to US Select major items with their percentage shares, are given below a) Textiles (15.2%) b) Precious stones & metals (16.9%) c) Pharmaceutical products (9.9%) d) Mineral Fuel, Oil (8.2%) e) Lac, Gums, Resins (10.1%) f) Organic chemicals (5.4%) g) Machinery (5.3%) h) Electrical Machinery (3.7%) ii) Major items of export from US to India Select major items with their percentage shares, are given below a) Precious stones & metals (24.2%) b) Machinery (12.5%) c) Mineral fuel, Oil, etc. (8.4%) d) Optical instruments & equipment (6.5%) e) Electrical machinery (6.2%) f) Aircraft and parts (5.1%) g) Organic chemicals (4.1 %) h) Plastic Products (3.4%)


International Trade shows

US Department of Commerce Certified Trade shows in U.S.A Event Name Date & Location Contact Details POWER-GEN International 2012 -- multiple industry sectors

12/11/2012 - 12/13/2012 Orlando, FL, United States

Mark Wells, Trade Event Programs Senior International Trade Specialist Phone: (202) 482-0904 [email protected]

2013 International CES -- multiple industry sectors

1/8/2013 - 1/11/2013 Las Vegas, NV, United States

Shelby Peterson, Trade Event Programs Business and Industry Specialist Phone: 202-482-5531 [email protected]

IBP Select: ProMat 2013 (Material Handling Industry of America) -- multiple industry sectors

1/21/2013 - 1/24/2013 Chicago, IL, United States

Aditi Palli, Trade Event Programs International Trade Specialist Phone: 202-482-3334 [email protected] Gary Rand, Marketing Director Phone: 202-482-0691 [email protected]

NAHB International Builders' Show 2013 -- multiple industry sectors


James Yi, TPP International Trade Specialist Phone: 2024826482 [email protected]

mailto:[email protected]





IBP Select: PGA Merchandise Show 2013 -- multiple industry sectors


David Fiscus, Salt Lake City USEAC Director Phone: 801-255-1873 [email protected] Gary Rand, Marketing Director Phone: 202-482-0691 [email protected] Tony Pu, Trade Event Programs International Trade Specialist Phone: 2024820905 [email protected]

AG CONNECT Expo & Summit 2013 -- Agricultural Machinery & Eq.

1/29/2013 - 1/31/2013 Kansas City, MO, United States

Mark Wells, Trade Event Programs Senior International Trade Specialist Phone: (202) 482-0904 [email protected] Barkha Limbu, Association of Equipment Manufacturers Phone: (414) 298-4169 [email protected]

International Poultry Expo/International Feed Expo 2013 -- multiple industry sectors

1/29/2013 - 1/31/2013 Atlanta, GA, United States

Amanda Ayvaz, Trade Event Programs International Trade Specialist Phone: 202-482-0338 [email protected]

World of Concrete 2013 -- multiple industry sectors


Graylin Presbury, Trade Event Programs Senior International Trade Specialist Phone: 202-482-5158 [email protected] Jackie James, Hanley Wood Exhibitions Phone: 972-536-6372 [email protected]









IBP Select: Miami International Boat Show & Strictly Sail 2013 -- multiple industry sectors

2/14/2013 - 2/18/2013 Miami, FL, United States

Gary Rand, Marketing Director Phone: 202-482-0691 [email protected] James Yi, TPP International Trade Specialist Phone: 2024826482 [email protected]

Graphics of the Americas 2013 -- Printing/Graphic Arts Eq.


Philippa Olsen, Marketing Business and Industry Specialist Phone: 202-482-5449 [email protected]





International Buyer Program, 2013 Trade shows

International Buyer Program

2013 Trade Show Schedule

Title Date Venue Website

2013 International CES® January 8-11, 2013 Las Vegas, NV cesweb.org

NAHB International Builders' Show®

January 22-24, 2013 Las Vegas, NV buildersshow.com

AG CONNECT Expo 2013

January 29-31, 2013 Kansas City, MO agconnect.com

International Poultry Expo/International Feed Expo

January 29-31, 2013 Atlanta, GA internationalpoultryexposition.org

World of Concrete® February 5-8, 2013 Las Vegas, NV worldofconcrete.com

Graphics of the Americas (GOA)

February 21-23, 2013 Orlando, FL graphicsoftheamericas.com

International Home + Housewares Show

March 2-5, 2013 Chicago, IL housewares.org

Natural Products Expo West/Engredea

March 7-10, 2013 Anaheim, CA expowest.com

The Nightclub & Bar Convention and Trade Show

March 19-21, 2013 Las Vegas, NV ncbshow.com

The 2013 NAB Show® April 8-11, 2013 Las Vegas, NV nabshow.com WINDPOWER 2013 Conference & Exhibition

May 5-8, 2013 Chicago, IL windpowerexpo.org

Offshore Technology Conference

May 5-9, 2013 Houston, TX otcnet.org

WasteExpo 2013 May 20-23, 2013 New Orleans, LA wasteexpo.com International CTIA WIRELESS 2013®

May 21-23, 2013 Las Vegas, NV ctiawireless.com

The National Restaurant May 2013 Chicago, IL restaurant.org

http://cesweb.org/

http://buildersshow.com/Home/Page.aspx?pageID=1

http://buildersshow.com/Home/Page.aspx?pageID=1

http://agconnect.com/

http://agconnect.com/

http://internationalpoultryexposition.org/



http://www.worldofconcrete.com/

http://www.nabshow.com/2012/default.asp

http://www.ctiawireless.com/

http://www.ctiawireless.com/

http://www.restaurant.org/show/

Association Restaurant, Hotel-Motel Show (NRA Show)

InfoComm International 2013®

June 8-14, 2013 Orlando, FL infocommshow.org

International Franchise Expo

June 14-16, 2013 New York, NY ifeinfo.com

Fancy Food Show June 30 - July 2, 2013 NY, NY specialtyfood.com/fancy-food-show

Annual Meeting and Clinical Laboratory Exposition of the American Association for Clinical Chemistry

July 28 - August 1, 2013 Houston, TX aacc.org

MAGIC Tradeshow - Summer

August 21-23, 2013 Las Vegas, NV magiconline.com

PRINT 13 September 6-11, 2013 Chicago, IL gasc.org/PRINT13.aspx

PACK EXPO Las Vegas 2013

September 23-25, 2013 Las Vegas, NV packexpo.com

RETECH 2013 September 2013 To Be Announced retech2012.com

GridWeek 2013 October 1-3, 2013 Washington, DC gridweek.com

WEFTEC 2013 Water Environment Federation Technical Exhibition and Conference

October 5-9, 2013 Chicago, IL weftec.org

International Baking Industry Exposition (IBIE)

October 6-9, 2013 Las Vegas, NV ibie2013.org

IFAI Expo Americas 2013 and SGIA Expo 2013

October 23-25, 2013 Orlando, FL ifaiexpo.com

American Film Market November 6-13, 2013 Santa Monica, CA americanfilmmarket.com

POWER-GEN International November 12-14, 2013 Orlando, FL power-gen.com

Greater New York Dental Meeting

November 29 - December 4, 2013

New York, NY gnydm.com





http://www.infocommshow.org/

http://www.infocommshow.org/

http://www.aacc.org/events/2012am/pages/default.aspx






http://www.weftec.org/




http://ibie2013.org/



http://www.americanfilmmarket.com/

US Department of Commerce Certified Trade shows in India Event Name Date & Location Contact Details U.S. Pavilion at ICE Expo 2012 12/3/2012 - 12/5/2012

New Delhi, India [email protected] [email protected]

International Housewares Association Delegation

12/3/2012 - 12/5/2012 Mumbai , India

[email protected]

U.S. Pavilion at IMME 2012 12/5/2012 - 12/8/2012 Kolkata, India

[email protected]

India Cold Chain 2012 -- multiple industry sectors

12/4/2012 - 12/5/2012 New Delhi, India

Richard Craig, Kolkata Principal Commercial Officer Phone: 91-33-3984-6435 [email protected] Aliasgar Motiwala, Mumbai Commercial Specialist Phone: 91-22-2265-2511 [email protected]







Indian Buyer Delegation to Power-Gen International

12/11/2012 - 12/13/2012 Orlando, FL

[email protected]

SATTE 2013-- Travel and Tourism Industries

01/16/2013- 01/18/2012 in New Delhi 01/21/2013- 01/22/2012 in Mumbai

Helen Simpson-Davis, Trade Event Programs Senior International Trade Specialist Phone: 202-482-1882 [email protected] P Srinivas, Mumbai Senior Commercial Specialist Phone: 91-22-2672-4152 [email protected] Sandeep Maini, New Delhi Senior Commercial Specialist Phone: 91-11-23472222 [email protected] Sajid Desai, UBM India Pvt. Ltd Phone: 91 22 6612 2600 [email protected]

U.S. Multi-Sector Trade Mission to the “3Cs” in S. India & Sri Lanka

02/03/2013- 02/08/2013 Chennai, Cochin

Mala Venkat, Commercial Specialist U.S. Commercial Service American Consulate General 220 Anna Salai Chennai 600 006 Tel: 91-44- 2857-4293 [email protected]


http://export.gov/eac/show_detail_trade_events.asp?EventID=33463&InputType=EVENT

http://export.gov/eac/show_detail_trade_events.asp?EventID=33463&InputType=EVENT





http://export.gov/india/tradeevents/eg_in_052159.asp




Bauma Conexpo Show 02/05/2013- 02/08/2013 Mumbai

[email protected]

Aero India 02/06/2013- 02/10/2013 Bangalore

[email protected]

ISN Education Fair 02/22/2013 Hyderabad

[email protected]

Major Trade shows in India Date/ Event Venue/Location Description/ Contact

4 Dec- 5 Dec 2012 India Cold Chain Expo Ashok Convention Centre, New Delhi, India

5 Dec- 7 Dec 2012 Bangalore Nano Hotel Lalit Ashok, Bengaluru, Karnataka, India

6 Dec- 7 Dec 2012 Indian Petrochemical Focus Hyatt Regency, Mumbai.

6 Dec- 7 Dec 2012 Exporail India Pragati Maidan, New Delhi, India

07 - 10 December 2012 Food Technology Show India Expo Centre and Mart, Greater Noida, India


http://www.aeroindia.in/



http://www.biztradeshows.com/india-cold-chain-expo/

http://www.biztradeshows.com/indian-petrochemical-focus/

http://www.biztradeshows.com/trade-events/exporail-india.html

http://www.biztradeshows.com/trade-events/food-technology-show.html

7 Dec- 9 Dec 2012 India Med Expo Birla Auditorium, Jaipur, Rajasthan, India

07 - 10 December 2012 Pharma Technology Show - Delhi

India Expo Centre and Mart, Greater Noida, India

07 - 09 December 2012 International Industrial Expo & Conferences Haridwar

Rishikul Ground, Haridwar, India

12 December 2012 Mutual Fund Summit Hotel Le Meridien, New Delhi, India

12 Dec-13 Dec 2012 International Conference & Exhibition on Ceramics

Veterinary College, Bikaner, Rajasthan, India

13 Dec-14 Dec 2012 Retail Banking India Summit The Leela Kempinski Mumbai, Mumbai, Maharashtra, India

13 Dec-14 Dec 2012 GroSolar 2012:National Solar Energy Summit(NSES)

Convention Centre-NDCC, New Delhi, Delhi, India

13 Dec-15 Dec 2012 Isrmax India Indian Agricultural Research Institute Campus, New Delhi, Delhi, India

13 Dec-15 Dec 2012 International Paper Exhibition Bombay Exhibition Center(BEC), Mumbai, Maharashtra, India

14 Dec-16 Dec 2012 LED Expo Delhi Pragati Maidan, New Delhi, Delhi, India

16 Dec-18 Dec 2012 BizTech expo TIMA Ground, Boisar, Maharashtra, India

19 Dec-23 Dec 2012 VYAPAAR Mascot Hotel (KTDC), Trivandrum, Kerala, India

21 Dec-23 Dec 2012 Building Materials Expo Chennai Trade & Convention Centre, Chennai, Tamil Nadu, India

21 Dec-23 Dec 2012 Power On Milan Mela Complex, Kolkata, West Bengal, India

23 Dec-26 Dec 2012 Agri Talk India Shastri Maidan, Rajkot, Gujarat, India

8 Jan-13 Jan 2013 Vibrant Future Cities Helipad Ground, Gandhinagar, Gujarat, India

8 Jan-13 Jan 2013 HYPER EXPO Mahatma Mandir Exhibition Centre, Gandhinagar,India

10 Jan-12 Jan 2013 Food Hospitality World - Mumbai

MMRDA Exhibition Center, Mumbai, Maharashtra, India

11 Jan-13 Jan 2013 International Flora Expo New Delhi

NSIC Exhibition Complex, New Delhi, Delhi, India

http://www.biztradeshows.com/india-med-expo/

http://www.biztradeshows.com/trade-events/pharma-technologyshow-delhi.html

http://www.biztradeshows.com/trade-events/pharma-technologyshow-delhi.html

http://www.biztradeshows.com/icc-bikaner/

http://www.biztradeshows.com/icc-bikaner/

http://www.biztradeshows.com/isrmax-india/

http://www.biztradeshows.com/ipxindia/

http://www.biztradeshows.com/led-expo/

http://www.biztradeshows.com/biztech-expo/

http://www.biztradeshows.com/vyapaar/

http://www.biztradeshows.com/bm-expo/

http://www.biztradeshows.com/power-on/

http://www.biztradeshows.com/agri-talk-india/

http://www.biztradeshows.com/vibrant-future-cities/

http://www.biztradeshows.com/hyper-expo/

http://www.biztradeshows.com/food-hospitality-world/

http://www.biztradeshows.com/food-hospitality-world/

http://www.biztradeshows.com/flora-expo-newdelhi/

http://www.biztradeshows.com/flora-expo-newdelhi/


Major Trade shows in U.S.A Event Name & Date Event Description Event Venue/Location details

The International Workboat Show

05 - 07 December 2012

The International Workboat Show occupies the pride of place as the biggest marine industry-related trade event in North America. The event offers considerable opportunities to participating business houses to strengthen their business networks, and get familiar with the latest tools and technologies that are being used in this sector

Ernest N Morial Convention Center, New Orleans, United States Of America

16 Jan-18 Jan 2013 India Electricity Pragati Maidan, New Delhi, Delhi, India

16 Jan-18 Jan 2013 Convergence India Pragati Maidan, New Delhi, Delhi, India

15 Jan-18 Jan 2013 Pharma World Expo Bombay Exhibition Center(BEC), Mumbai, India

15 Jan-18 Jan 2013 CHEMTECH WORLD EXPO Bombay Exhibition Center(BEC), Mumbai, India

17 Jan-19 Jan 2013 TECHNOTEX INDIA Pragati Maidan, New Delhi, Delhi, India

17 Jan-19 Jan 2013 IBEX INDIA Bandra Kurla Complex, Mumbai, Maharashtra, India

18 Jan-20 Jan 2013 The Economic Times ACETECH-Bangalore

Palace Grounds, Bengaluru, Karnataka, India

23 Jan-26 Jan 2013 Elektrotec CODISSIA Trade Fair Complex, Coimbatore, Tamil Nadu, India

25 Jan-28 Jan 2013 Industrial Expo Ankleshwar Gopal Nagar Bus Stand, Ankleshwar, Gujarat, India

1 Feb- 2 Feb 2013 Educational Infrastructure & Utilities Expo

Nehru Centre, Mumbai, Maharashtra, India

1 Feb- 3 Feb 2013 India Automation Technology Fair

Bombay Exhibition Center(BEC), Mumbai, Maharashtra, India

http://www.biztradeshows.com/india-electricity/

http://www.biztradeshows.com/convergence-india/

http://www.biztradeshows.com/trade-events/pharma-world-expo.html

http://www.biztradeshows.com/trade-events/chemtech-expo.html

http://www.biztradeshows.com/technotex-india/

http://www.biztradeshows.com/ibex-india/

http://www.biztradeshows.com/et-acetech-bangalore/

http://www.biztradeshows.com/et-acetech-bangalore/

http://www.biztradeshows.com/elektrotec/

http://www.biztradeshows.com/industrial-ankleshwar/

http://www.biztradeshows.com/india-automation-technologyfair/

http://www.biztradeshows.com/india-automation-technologyfair/

International Gem & Jewelry Show – Chicago

07 - 09 December 2012

International Gem & Jewelry Show - Chicago is one of the prestigious jewelry fair which is scheduled to be held at Chicago. This show showcases a wide range of loose gems and finished branded showpieces which are crafted by the renowned designers and have exclusive designs on them.

Donald Stephens Convention Center, Chicago, United States Of America

Power Gen International

11 - 13 December 2012

Power Gen International is one of the most professionally organized trade shows in the United States, dedicated exclusively to the power generation sector. The show is held at the Las Vegas Convention Centre and boasts of more than 19000 visiting participants at each of its editions.

Orange County Convention Center (OCCC), Orlando, United States Of America

Anti-Aging Conference & Exhibition-Las Vegas

12 - 15 December 2012

Anti-Aging Conference And Exhibition is one of the top health and medicine trade shows in America. The show focuses on the anti-aging sector and is attended by a large number of leading industry experts, including cardiologists, osteopaths, plastic surgeons and chiropractors

Las Vegas Venetian Resort Hotel Casino, Las Vegas, United States Of America

Accessories The Show-New York

06 - 08 January 2013

Accessories The Show New York is one of the chief fashion apparel sector trade shows in the United States. The show is attended by several top experts from this sector and the latest, trendy design patterns and color themes are highlighted here. More than 1400 varieties of chic and stylish apparels are showcased during the show and

Jacob K. Javits Convention Center, New York, United States Of America

participating companies are offered lucrative business networking opportunities too.

FAME

06 - 08 January 2013

FAME is one of the top fashion apparel and accessories sector trade show in America. Held over a period of three days at New York, the show presents ample scopes for all participants to get acquainted with the latest market trends and happening styles from this sector.


Accessorie Circuit

06 - 08 January 2013

Accessorie Circuit is one of the prime fashion apparel and accessories sector trade show in the United States. The show is attended by more than 500 professional exhibiting companies and a wide range of dress items, handbags, scarves; trendy jewelry products and other lifestyle items are put on exhibit during the event.


International Consumer Electronics Show

08 - 11 January 2013

International Consumer Electronics Show is one of the best electronic shows in USA which is organized by CEA industry. A lot of visitors are supposed to be participating in this leading International show and Convention from different parts of the country as well as from abroad.

Las Vegas Convention Center, Las Vegas, United States Of America

PMA International Convention & Trade Show

08 - 11 January 2013

PMA International Convention And Trade Show is one of the prime photography and related technology sector business events in the United States. The show is attended by more than 550 professional exhibitors and a diverse range of cameras, photo software,

Las Vegas Hilton, Las Vegas, United States Of America

digital imaging tools; photo publishing equipment’s are put on exhibit here, together with a host of other associated items.

World Shoe Accessories

29 - 31 January 2013

World Shoe Accessories (WSA) is the largest and most comprehensive footwear and related accessories show in the world. Since 1948 it is offering a 360-degree viewpoint of the footwear industry. Its twice-yearly show in Las Vegas pulls in more than 36,000+ participants and nearly 1,000 exhibitors from across the world that represent the cream of the footwear manufacturing industry.

Sands Expo & Convention Center, Las Vegas, United States Of America


How to reach us: We invite articles, industry related market research reports and whitepapers, information on policy matters related to Indo-US trade and investments via e-mail. Indo-American Chamber of Commerce (IACC) deserves right to edit the said articles for clarity and space and use them in all electronic and print form. E-mail: [email protected]; [email protected] Disclaimer: No part of this newsletter may be reproduced, reprinted or utilized in any form or by any means electronic or mechanical without prior permission of the publisher. While every care is taken in compilation of information contained herein, the publisher cannot accept any responsibility for error or omission or for the use of trademark, copyrights, brand name, logos or other identifying symbols provided in supporting and participating companies and organizations. However all possible and reasonable care has been taken to ensure that the information in this newsletter is as accurate and up-to-date at the time of printing. This newsletter is for internal use only. Credits: A number of persons and organizations have assisted us in the preparation of this newsletter. The information contained herein has been obtained from sources believed to be reliable and are based on research and analysis, whitepapers, academia, websites, internet postings and e-mails received. We wish to thank and express our gratitude to everyone named and unnamed for providing valuable inputs and providing data willingly. Conceived, Designed and Researched by: R.K. Chopra, Secretary General, IACC; E-mail: [email protected] Pratik Waghela, Systems & Communications Assistant, IACC; E-mail: [email protected]


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