free Business Directories and yellow pages

Yellow Pages has a long history, that goes back a century or so, in 1883, when a printer in Wyoming simply ran out of white paper and started using yellow paper instead for business listings. Yellow Pages comprise a directory that lists various industries according to their generic categories, instead of being listed alphabetically, which often caused confusion in the past. Just as the name suggests, this directory is published on pages that are yellow instead of white. Though originally this name was reserved for all kinds of commercial listings on paper, now it is also extended to include online listings and directories of businesses. The name, one must remember has a trademark in the United Kingdom. In the USA and several other countries this name has not been trademarked and hence is used freely by many directories and phone companies to publish and edit commercial listings. Almost 75 telephone directories use the online address of "Yellow Pages". In many countries, these directories are named slightly differently to avoid issues of trademark. In Romania, Belgium, Czech Republic some several other European nations these directories are called "Golden Pages". In several countries, they are called silver pages, town pages or rainbow pages. All these names reserve the same meaning: a commercial directory where one finds not only listings of different categories of business but also commercial advertisements. Typical Yellow Pages comprises of a comprehensive listing of all the businesses located within a given area according to the similarities among certain business categories, which are then listed alphabetically for better reference and faster use. Generally, such directories are published by telephone companies but due to the profitability of such books, several private companies have also invested in this line of business, often publishing directories that target certain demographic groups. A business directory collates its information from several services. Often in the case of public directories that are published by local phone companies, using their own customer listings and information, listings issued by phone service providers are also used. Owners of businesses that use services other than the local phone company must ensure that their listings are updated in the upcoming directories. The listings within these directories are done based on location, size and kind of activity and may be either compiled manually, or using certain software online. The procedure to publish an advertisement in one of these phone business directories is simple. In most cases, an advertisement assistant hailing from the selected directory would assist the company to create its own design and then put it up for proof copy and review. The billing in all such cases is either done prior to printing of the advertisement in the directory or after the printing, but within the contract period, which usually extends for 12 months. Though the use of print directories has been of much use to companies and businesses for several decades, their usage is on the decline, since most of the current users are opting for online directories that provide much faster and easier access. This is the reason why most directory companies have come up with online versions for their more tech savvy users. A local business listing provides several types of information for its users like, name address, contact details, type of service or goods provided by the company, the area extent of its service, related associations, etc. Certain directories also provide separate space for comments and feedback for its users for better and improved service. Several of these directories, besides providing the premium listings also keep space for additional and complimentary listings that are much more comprehensive and hence more useful. You may now list your business with any of these directories or the pages with unparalleled ease since, most of these directories have online versions where publishing your own advertisements becomes much simpler. These are however mere search facilities and must not be confused with search engines, since they do not publish information on the basis of keywords, but categories and subsections of various kinds of businesses. These directories are available in both hard copies and digital formats, enhancing access and promoting ease of distribution. However, there is a lot of controversy on the quality and content of these online or digital versions of directories. Some believe that there has been some amount of trade-off between cost effectiveness and quality of online directories in the past. Furthermore, there are surveys that point to the fact that small business enterprises still opt for the print directories instead of the online versions. However, several public interest groups rally against the printed versions of theses directories since they are of the opinion that printed directories waste paper and are hence not environment friendly. There are several advantages of online or electronic directories, the prime among which is the fact that these directories can be automatically and easily updated in real time meaning, one does not have to wait for the once in a year updating process of print versions. The interaction between buyers and suppliers is what the local search for directories for business listings is all about. There are several kinds of directories available in the market, that amplify this interaction, the most common example being, a shopping directory. These searches result in extensive listings of businesses that are grouped together based on certain homogeneities. The listings are exhaustive and provide multiple choices within the same sub-category that enhances the chances of profit maximization by the competing business firms. These days B2B directory is also gaining popularity, which forms a single line of interaction between manufacturers and wholesalers and then wholesalers and retailers. These directories provide exhaustive information for business dealers wherein, each is looking for raw materials, dealerships, partnerships and collaborations to enhance business performance. These directories are not used by consumers but the firms that require assistance in the penultimate stages of the production process. Such directories are generally used in the marketing of goods and services that require the interaction of several business categories. List your business at places like way2trading, http://www.way2trading.com, which is almost free with many advanced features. It is aiming to be the world's largest online yellow pages business directory, and is a B2B directory as well. for more information about-way2trading.com which is a leading online B2B company and provides a feasible environment for exchanging B2B related information like business directories and business Listing. Working since 2012, it has its offices pan in India and enjoys high credibility throughout the business spectrum. way2trading is considered as one of the largest B2B companies in India

find Quality Agriculture Machineries And Tools Suppliers

Agriculture machineries and tools suppliers specialize in the manufactures of agricultural implements and specialized equipment for a variety of farming needs. The manufacturers like Toro, Coronet, New Holland, Unverferth, Woods Equipment Co., Worksaver Inc., Yetter Farm Equipment Co., Ag-Chem, AGCO, Automatic Ag Products, Beard Industries, Orthman, Seedburo, Bigham Brothers, Blu-Jet, Bomford Turner, Brillion Iron, Northwest Tillers, Stover Equipment Co. Inc., Sukup Manufacturing Co. Brownie Manufacturing Co. and Butler Mfg. Co. have an established presence in this niche market and are standing up to competition from the majors. The Agricultural Suppliers have some of the latest and most modern models of equipment in their stocks. These models have been well received in the market and are worth the money. Since agriculture farming equipment is considered a market for consumer durables, the market also looks at the price. The American and European markets are quality conscious and are not very price sensitive. The market capturing depends on the quality of the product. There are other Agriculture machineries and tools suppliers like Case, Murray and Snapper. These manufacturers are very popular in the North America segment and in Europe. Most of the suppliers are good with the quality and production range they have. Also they have the capacity to make it big and stand up to the giants like Honda, Ford, John Deere. The farming equipment makes the tasks associated with farming easier and the operations more productive. Such equipment mostly includes Tractors, Combines, Hay Equipment and the like. Agriculture machineries and tools suppliers offer many listings for equipment used in agricultural farming, cattle ranching, dairy and poultry to name a few. From planting all the way through to harvesting these farm equipment dealers have the proper equipment that farmers need. Whether the buyers are searching for new or used tractors by John Deere, Case IH, New Holland, Agco, Massey Ferguson, Kubota, McCormick or others, along with combine, forage harvester, planter, tillage equipment, or other agricultural equipment, you can find the listing at Fuzing. The fuzing agriculture chemical suppliers directory is a leading B2B portal for global buyers searching manufacturers, exporters and suppliers. There is an agriculture chemical page bringing you to our handpicked agricultural chemical manufacturers, exporters and suppliers from various regions. If you are an agricultural chemical supplier, exporter, manufacturer, factory, vendor or trading company/agent, and want to list in this supplier directory, please click Fuzing.com. The author is familiar about the topics like international trade, business to business marketplace & online trade scenario. He generally writes for site Fuzing.com on Industrial Hardware And Tools Suppliers [http://way2trading.com/companies-category/agriculture.html] for more information about-way2trading.com which is a leading online B2B company and provides a feasible environment for exchanging agriculture related information like agriculture equipments and agricultural tools manufacturers. Working since 2012, it has its offices pan in India and enjoys high credibility throughout the business spectrum. way2trading is considered as one of the largest B2B companies in India

Moradabad exporters smile, cautiously

Moradabad: Some workers have gone to offer their Friday namaz; others have stepped out for lunch. A few are sleeping on the floor. But looks can be deceptive. These are extremely busy days at C L Gupta Exports Ltd, a sprawling factory on NH-24 that makes and exports giftware worldwide.
    “Since January 2012, our workforce has grown from 1,600 to 1,850. By the end of September, we will add another 150 workers. We are targeting a 20% growth in business,” says Raghav Gupta, the company’s managing director. Fellow exporter Mohammed Mansoor is equally buoyant. “We are on a good wicket right now,” he says. That’s not all. Over a dozen exporters from this western Uttar Pradesh town are currently in Frankfurt attending a trade fair and shopping for customers.
    One man’s poison is another man’s meat, goes an old saying. At a time when many industries are agonizing over the fall in rupee, the same reason is cause for cheer in Moradabad. That’s because a cheaper rupee translates into higher profit margins and increased business for most exporters. “About 70% of our market is abroad,” estimates Satpal, general secretary, Moradabad Handicrafts Exporters Association (MHEA).
    But the optimism of exporters doesn’t really spring from the currency’s recent free-fall from Rs 55.52 (May 22) to Rs 66.19 (Aug 26) per dollar. Deals for many exports for the forthcoming Christmas and New Year’s market, they say, were signed around May or earlier for Rs 50 or a little more. The bigger reason is that for over a year and half the rupee has gradually depreciated against major international currencies such as dollar, pound and euro, which has helped growth in export-oriented businesses. Most exporters also admit that both volumes and profits will further grow in the coming months when fresh bookings are made for next year’s Easter season.
    Nonetheless, Gupta also points out that profits can never be too high because Indian exporters don’t control the trade. “We operate in a buyer’s market because there’s stiff internal competition amongexporters. China too is a rival. Buyers have plenty of options. For fresh orders, I am sure, they will ask for discounts,” he says. Mansoor cautions, “We must not forget the macro factors. We import a lot of our material such as copper, glass, paints, which are becoming costlier. That apart the prices of diesel, gas and electricity have soared, even shipping is becoming more expensive. Besides, a currency’s volatility is never good for business.”
    There are about 600 exporters in Moradabad, says Satpal. Of them, 285 are MHEA members. A total of four lakh workers earn their livelihood making candle stands, flower vases, table top items, shoe racks, umbrella stands and decorative figurines in their factories as well as 3,000 ancillary units.

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Indian manufacturing gets currency boost

For about a decade, Indian electrical companies have been importing 16- inch table, pedestal and wall ( TPW) fans from China and marketing these in India, under their respective brand names. The reason: importing from China was cheaper than manufacturing these in India. China had the obvious advantages of economies of scale, cheap labour and a favourable currency. However, with the rupee depreciating 14 per cent this year and the Chinese currency, the yuan, appreciating 2.4 per cent to 6.09 a dollar, the pattern has started changing. About a year ago, electrical goods maker Havells India set up a TPW manufacturing plant in the country; this was the first such plant set up in the country in about a decade. “ We could foresee a correction in the Indian currency,” says Sunil Sikka, president, Havells India. “ About a year ago, when we started, we were at a slight disadvantage to our peers who were importing; now, we are at an advantageous position,” he says. For other electrical goods such as induction heaters, too, new manufacturing plants are being set up in India. “ We still have labour arbitrage, as it is cheaper than China. So, once scale is achieved, our import will shift from finished goods to specific parts and raw material,” Sikka says. Indian companies manufacturing induction heaters are still importing the glass needed for these products. However, this accounts for less than 10 per cent of the total production. To cater to developed markets in Europe, Havells acquired Frankfurt- headquartered Sylvania for $ 300 million in 2007. After the financial crisis of 2008, the company shut two of its five manufacturing plants in Europe and set up a joint venture manufacturing plant in China to supply LED products to Sylvania. About a year ago, the company set up a manufacturing plant for lighting fixtures in Neemrana, Rajasthan, to supply to Sylvania. Earlier, the company sourced lighting fixtures from Costa Rica and France. “India is a new sourcing hub for our European operations,” says Sikka. The company exports products worth ₹ 5- 6 crore every month and expects to double this in the next six months. The garment industry, too, is gearing up to avail of the new advantages over China. Raymond, the company best known for selling branded textile for men’s suits, plans to increase exports fourfold in the next five years, as the domestic market faces a relative slowdown. “ If I look at global manufacturing destinations for sourcing, India has improved its competitive position dramatically, especially in relation to China,” says Sanjay Behl, chief executive officer of Raymond, referring to the fact that wages in China have been growing faster than in India. The eight- decade- old company believes in its targeted markets, trade policies for import are being structured more in favour of India compared to China. According to the company’s estimates, India now exports $ 40 billion (about ₹ 2 lakh crore) worth of textiles a year. In 2012- 13, Raymond’s export revenue was about ₹ 250 crore. The company plans to invest about ₹ 1,000 crore through the next five years, primarily to augment capacities. Behl said the rise in capacity would help the company emerge as a major global exporter in the men’s wear and worsted textiles segments. “The depreciation of the rupee alone has not helped; it is also the appreciation of the yuan that has helped India become more attractive an export hub,” says Rakesh Shah, co- chairman ( foreign trade committee), Federation of Indian Chambers of Commerce and Industry. “ Today, we have an export advantage where we have our own raw material.” However, he points to the fact that China still has an advantage, in terms of manufacturing lowengineering, high- volume products due to economies of scale. But India has an obvious advantage in exporting smaller- volume products that require engineering input. Traditionally, India’s forging and automobile component industry has come under this segment and has benefited from the export market. “With the weak rupee and poor demand in the domestic markets, automobile component makers are concentrating on export markets,” says S G Joglekar, chief financial officer at Pune- based Bharat Forge. The company exports niche products for the automobile industry and doesn’t face much competition from China. “ Our exports to North America and Europe are doing better than the domestic markets; we plan to sweat the existing assets to our advantages for export,” he says. way2rading.Com is a leading B2B portal through which you can get updated information about indian manufacturers and indian suppliers. To know more about our services, visit manufacturers directory.

How to Find a genuine buyer for your product

High security system for manufacturers and supplier from fraud buyer
Every body know we are using internet , if some body need something he will search on google , google is a search engine and many search engine available on net ex.yahoo, bing etc , but most popular google . google is providing difrent searvice wich is very help full for our business like local listing map making etc.when we search a buyer or manufacturers related company on google so many search result will come , also we will found so many company and many product ,but we can’t justu fay that company or product a genuine company or not ,that’s way some organasition lunch a site that name is b2b portals or b2b marketplace  for examp.alibaba.com,indiamart.com etc , in b2b site many function and many future for buyer and sealer ,
i explain you some future for

manufacturers ex-there are future product, any company can register free of cost ,there are manufacturers directory and suppliers directory , and product showcase ,email alert sms alert  the future of email alort and sms alert. When some buyer will post his buying requerment in that site , one sms and one email will go to that related manufactures mobile and email , that is very help full for know  the requerment instanced.also all b2b company will providing very secure business and verification process.  All b2b company also providing all promosanal activity advatiesment and webpage design seo many more which is need for every manufacturers and also for buyer every  manufacturers can post and publish his product on b2b site according to his business related categories .in b2b site many catagories like agrictuler, apparel,textile,many more if you need more information you can go to www.way2trading.com

For buyer: this is most important part in b2b site also for all manufacturers , when some on make a product he need to sale that but who to sale . he need to some sorce for saling who will buy his product .but most important part is how his buying his product .is he a genuine buyer or not? One b2b company solve this problem , he his lunch his high security verification with all legal document verify cation  system it will be very safe for manufacturers and suppliers . this site is high importance for indian manufacturers and indian suppliers . ansy company can esylu do his business with this site for mare informstion go to www.way2trading,com

auther: way2rading.Com is a leading B2B portal through which you can get updated information about indian manufacturers and indian suppliers. To know more about our services, visit manufacturers directory.

Online Directory - A Platform For Both Manufacturers and Consumers

           indian manufacturers, indian suppliers, indian manufacturer, manufacturers directory

Indian manufacturers directory brings both manufacturers and buyers or consumers together in one platform. Buyers are allowed to choose their required products from the volley of items available in the online directory. It is an inexhaustible directory which is used by consumers world wide.

Manufacturers of different products can not only find their competitors and their products but also advertise their own products. It is a platform to interact and negotiate with sellers and buyers. It offers buyers a tool to search products and its various competitors, compare rates and then buy based on the product rates. You can procure your items online.

Products found online range from textiles, electrical products, drugs, chemicals, machinery, handicrafts, hosiery, printing and packaging, hand-woven garments, embroidered material, shawls, decorative items. The manufacturing sector of India has been continuously showing a growth pattern and has extensively contributed to the GDP of India. With an online directory of manufacturers you are able to buy directly from any company in the world and have the best purchase price of your guild. This also allows you to export your products abroad in foreign markets in large scale and increase your sales. If you are a buyer and looking for reliable Indian producers in different sectors such as pharmaceuticals, medical and scientific instruments to textiles, handicrafts, food & beverages then you can find them easily online.

Buyers have a greater scope of purchasing and comparing products in the world wide market. They can access products of the global market and have wider choice of the international products.

Article Source: http://EzineArticles.com/2920004

Business Services Enhance B2B Business Activities

indian manufacturers,indian suppliers, manufacturers directory,indian manufacturer

B2B business activities are always enhanced through business services. Many Companies are registered with such websites to increase the business opportunities for them.

Business services are one of the most important activities to promote business. There are many Companies including Advertising, travel, computer and information, Education and training that have introduced them in B2B business-sites to get the maximum out of this domain.

International settlement services are also profited from this website, whereby sellers offer different finance options to get suitable buyers for the products. Many service industries are also registered with such business promotion websites. One of them includes Royalties and License services. Others are telecommunication services, trade-show services, translation services, etc.

Even Insurance and healthcare services are registered with business portal. These services are registered to promote their business online and create awareness amongst different visitors.

The visitors searching for any particular business enterprise will end his search at business websites. The business is enhanced and other business promotions also take place, along with.

Business Services are enormous and it's not possible for each and every unit to know about all the business units in their segment. Then business promotion websites are the best place to consult. They are one in all solution for various business services.

When you are establishing a new business unit, then you need different supporting structures to assist you in your establishment. These business services are helpful in providing different business activities and getting the work done easily. Business services are provided as best services through these websites. There is an amalgamation of different units which promote other business units as well. The contacting or visiting unit may search through other related business units and so that they get quality business services.

Many business services are available at business website. Companies search through the website for the probable business unit and benefit from B2B Portal. All the services are offered through these business websites and that too at its best. B2B portals are available to contact the business units and get the maximum out of it. Most Companies are benefitted through these business portals for better business opportunities.

Indian Manufacturing Sector

Indian manufacturing sector has the potential to elevate much of the Indian population above poverty by shifting the workforce out of low income agriculture sector. Manufacturing fuels growth, employment, and also strengthens agriculture and service sectors. Enormous growth in worldwide distribution systems and opening of trade barriers, has led to astonishing growth of global manufacturing networks, designed to take advantage of low-cost yet efficient work force of India.

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Apart from low cost advantage, Indian manufacturing sector must focus on areas like improving the urban infrastructure, ensuring fair competition, reduction of import duties, quality improvements in education and increase investment in R&D to gain global foot print.

There was widespread expectation that the Indian manufacturing sector would be the world's hub for components. A low cost base, liberalization and capital equipment would do the trick. But it didn’t happen. Indian manufacturing did not make an impact on the international manufacturing and it’s nowhere near to that of Korea, Taiwan or China. Even domestic manufacturing companies are turning to China for components sourcing. As a result, manufacturing sector contribution to India’s GDP has fallen to 15% in 2008 from 17% in 1991. Except commercial vehicles and pharmaceuticals almost all other categories of manufacturing are procuring components from China.

When we consider a ten-year horizon, there is a good chance that products which require world class design, complex manufacturing skills and large investments will be in the MNC sector. It means pretty much every product. At the lower end, there is a likelihood of Indian manufacturers wresting market leadership, mainly on cost considerations.

Extensive subcontracting and contract manufacturing are the order of the day. Traditionally MNCs avoid increasing the number of employees in the main plants. Wherever production can be performed by contract workmen, even inside the main plants, it will be done through such an arrangement. As a result we can see a lop-sided employment pattern in manufacturing sector. While this may be good news from a cost point, it can severely limit the process of building technical skills in this sector and attracting the right manpower to it.

The WTO pressures, surplus foreign exchange and lack of domestic alternatives will ensure a large presence of Chinese and Korean products in Indian market. The key challenge now we have is to internationalize Indian manufacturers in a way it utilizes our human potential while protecting national interests. Getting it right, learning the lessons from the recent past and removal of the policy hurdles blocking the way, we can still become the leaders in engineering and manufacturing supplies to the world.

for more information about. indian manufacturers, b2b business directory, indian suppliers

Indian Manufacturers

Indian manufacturing sector has the potential to elevate much of the Indian population above poverty by shifting the workforce out of low income agriculture sector. Manufacturing fuels growth, employment, and also strengthens agriculture and service sectors. Enormous growth in worldwide distribution systems and opening of trade barriers, has led to astonishing growth of global manufacturing networks, designed to take advantage of low-cost yet efficient work force of India. Apart from low cost advantage, Indian manufacturing sector must focus on areas like improving the urban infrastructure, ensuring fair competition, reduction of import duties, quality improvements in education and increase investment in R&D to gain global foot print. There was widespread expectation that the Indian manufacturing sector would be the world's hub for components. A low cost base, liberalization and capital equipment would do the trick. But it didn't happen. Indian manufacturing did not make an impact on the international manufacturing and it's nowhere near to that of Korea, Taiwan or China. Even domestic manufacturing companies are turning to China for components sourcing. As a result, manufacturing sector contribution to India's GDP has fallen to 15% in 2008 from 17% in 1991. Except commercial vehicles and pharmaceuticals almost all other categories of manufacturing are procuring components from China. When we consider a ten-year horizon, there is a good chance that products which require world class design, complex manufacturing skills and large investments will be in the MNC sector. It means pretty much every product. At the lower end, there is a likelihood of Indian manufacturers wresting market leadership, mainly on cost considerations. Extensive subcontracting and contract manufacturing are the order of the day. Traditionally MNCs avoid increasing the number of employees in the main plants. Wherever production can be performed by contract workmen, even inside the main plants, it will be done through such an arrangement. As a result we can see a lop-sided employment pattern in manufacturing sector. While this may be good news from a cost point, it can severely limit the process of building technical skills in this sector and attracting the right manpower to it. The WTO pressures, surplus foreign exchange and lack of domestic alternatives will ensure a large presence of Chinese and Korean products in Indian market. The key challenge now we have is to internationalize indian manufacturers in a way it utilizes our human potential while protecting national interests. Getting it right, learning the lessons from the recent past and removal of the policy hurdles blocking the way, we can still become the leaders in engineering and manufacturing supplies to the world

Manufacturing sector contracts for second consecutive month in September: HSBC

India's manufacturing sector activity contracted for the second consecutive month in September as both output and new orders witnessed a decline, an HSBC survey said on Tuesday. The overall rate of contraction was, however, marginal and eased since August, when it had slipped sub 50.0 reading (below which it indicates contraction) for the first time since March 2009. The HSBC India Manufacturing Purchasing Managers' Index (PMI) for the manufacturing industry stood at 49.6 in September, higher from 48.5 in August, but remained below the crucial 50 mark (below which it indicates contraction) for the second consecutive month. Manufacturing activity continued to shrink in September, albeit at a slower pace. Order flows remained weak, especially export orders, and employment fell," HSBC chief economist for India and Asean Leif Eskesen said. Faced with fewer projects, companies reduced their workforce numbers for the first time since February 2012. indian suppliers "Reflective of a further reduction in new order levels, Indian manufacturers cut their staffing levels in September," HSBC said adding that "the latest fall ended a period of job creation that had lasted for one-and-a-half years". Although new orders fell at a slower and marginal pace, the contraction of export business was very significant. According to HSBC, a depreciation of the rupee versus the US dollar had resulted in higher prices paid for inputs and limited firms' ability to price "competitively". The findings of the survey comes at a time when the country is battling slower growth rate, wider current account deficit and a battered currency. free business listing According to official data, high imports of gold and oil pushed current account deficit (CAD) to 4.9 per cent of GDP at $21.8 billion in the April-June quarter of the current fiscal. "Despite the weak growth readings, the build-up in underlying inflation pressures suggests that the RBI has to keep its inflation guards up," Eskesen said. The Reserve Bank of India, in its September 20 policy review, had unexpectedly raised the policy rate by 0.25 per cent as it kept its focus on controlling inflation. Driven by costlier food items, wholesale price inflation rose to a six-month high of 6.1 per cent in August. Although new orders fell at a slower and marginal pace, the contraction of export business was very significant. According to HSBC, a depreciation of the rupee versus the US dollar had resulted in higher prices paid for inputs and limited firms' ability to price "competitively". The findings of the survey comes at a time when the country is battling slower growth rate, wider current account deficit and a battered currency.

India’s manufacturing sector

indian manufacturers have a golden chance to emerge from the shadow of the country’s services sector and seize more of the global market. McKinsey analysis finds that rising demand in India, together with the multinationals’ desire to diversify their production to include low-cost plants in countries other than China, could together help India’s manufacturing sector to grow sixfold by 2025, to $1 trillion, while creating up to 90 million domestic jobs. Capturing this opportunity will require India’s manufacturers to improve their productivity dramatically—in some cases, by up to five times current levels.1 The country’s central and state governments can help by dismantling barriers in markets for land, labor, infrastructure, and some products (see sidebar, “Four imperatives for India’s government”). But the lion’s share of the improvement must come from indian manufacturer themselves. Recognizing this, a few leading ones are upgrading their competitiveness by bolstering their operations to improve the productivity of labor and capital, while launching targeted programs to train the plant operators, managers, maintenance engineers, and other professionals the country needs to reach its manufacturing potential. A closer look at the experiences of these companies offers lessons for other Indian manufacturers and for global product makers considering opportunities in India. Made in India? indian manufacturers have long performed below their potential. Although the country’s manufacturing exports are growing (particularly in skill-intensive sectors such as auto components, engineered goods, generic pharmaceuticals, and small cars) its manufacturing sector generates just 16 percent of India’s GDP—much less than the 55 percent from services.2 Moreover, a majority of India’s largest manufacturers don’t return their cost of capital (Exhibit 1), a factor that dampens investment in the sector and makes it less attractive than its counterparts in competing economies, such as China and Thailand. Indeed, China’s manufacturers captured nearly 45 percent of the global growth in manufacturing exports from low-cost countries between 2001 and 2010, whereas India accounted for a paltry 5 percent. However, the FICCI (Federation of Indian Chambers of Commerce & Industry) survey has predicted the growth of manufacturing sector in the quarter of April to June this year. The demands of the manufacturing goods have risen in the global market. But the survey also states the Chinese manufacturing units like leather, textile and chemicals are having an edge over the Indian goods. The largest employment generating sector in India has bleak chances of continuing the exports and hence, many units are withdrawing themselves from the export market. Therefore, FICCI warns about the inconsistency in the growth of manufacturing units and calls for an immediate policy action.

Indian Manufacturers

Indian manufacturers Indian manufacturers sector makes up only 16 percent of its GDP. This needs this to increase if the country is to find jobs for its huge population. Yet on the back of strong domestic demand, global car indian manufacturers have flocked to India and are helping to make the sector globally competitive -- particularly in small cars. Capacity is expected to increase from 4.8 million units in 2010 to 12 million in 2018 according to Rothschild. India is set to become the third-largest auto maker in the world and could become a major exporter.Small cars make up 70 percent of the domestic market. And although Tata and Mahindra provide strong local competition, foreigners are dominant. ForeignIndian manufacturers direct investment (FDI) into the automotive industry increased by 48 percent to $7.4 billion in 2011, according to Ernst & Young. Suzuki alone has a 45 percent share.
With no caps on FDI, new entrants are spurring competition. And in contrast to recent policies on retail, state governments have been welcoming. Clusters are being created in the south and west of India where states such as Tamil Nadu and Gujarat offer cheap land toIndian manufacturers attract investment.But it's not just the domestic market that is fuelling growth. Exports already make up 15 percent of output, and many firms have ambitions to develop the international angles. Hyundai uses India as the global source point of all their small cars. Last year it exported 247,000 cars from India -- almost double the 2007 figure. Ford is stepping up export of Indian cars toIndian manufacturers over 50 countries. And Toyota's says it plans to export cars to South Africa in March 2012, the first time it will ship Indian-made cars overseas.
Infrastructure bottlenecks, skills shortages and slow-moving bureaucracy pose big challenges to Indian Manufacturers development. But as labour cost in China rise, India has an opportunity to win market share. In autos, it may have found a formula that can be replicated.
Overseas investment in India rose for the first time in three years in 2011, Ernst & Young reported on January 29.Foreign direct investment rose 13 percent to $50.81 billion in the first 11 months of 2011 from a year earlier, according to the EY report. The total number of projects rose 25 percent to 864. Automakers led the way, increasing spending by 46 percent. India is set to become the third largest automotive maker in the world by 2015 according to a report by Rothschild, the investment bank, in December 2011. Ford plans to invest $142 million in its 200,000 vehicles-a-year plant in Chennai the company announced this month.

About the Author

Keshav Dussal is the author of article. He has been demonstrating his writing skills by writing the articles for Indian manufacturers from last two years. He also has a keen interest in writing stuff for Indian manufacturers directoryrelated topics. He has written various articles on manufacturers directory.

indian manufacturer hike and strike

Surat: Even as the leaders of the diamond industry were successful in resolving the wage issue of the diamond cutters employed with around five manufacturing units — these workers took to streets on Tuesday after the factory owners refused to implement the 20 per cent hike announced by the Surat Diamond Association (SDA) —fresh incident of stone pelting by rampaging diamond workers were reported from the Katargam area on the second consecutive day on Wednesday. Around 400 diamond cutters and polishers targeted some 25 manufacturing units located in the Gotalawadi area in Katargam and forced the owners to down the shutters after they refused to implement the wage hike. Some of the agitating workers indulged in stone pelting at two manufacturing units in Katargam. KS Patel, police inspector, Katargam police station, said, “Two units in Katargam were targeted by the diamond cutters. Adequate police bandobast has been deployed in the Katargam area where the units are located.” It seems the decision taken by the SDA to implement 20 per cent hike in the wages of the diamond workers has come as a major disappointment for the small and medium manufacturers in the industry. Most of the small and medium manufacturers have refused to implement the 20 per cent hike announced by the SDA. Sources said around 35 per cent of the small and medium units — facing tough competition due to the dwindling profit margins and shortage of rough — are not in a position to implement 20 per cent hike.indian suppliers “We are not in a position to hike the wages by 20 per cent. Most of the small and medium factory owners are operating on wafer thin margins due to the shortage of raw material and the increasing prices of rough,” said Valjibhai Dhamelia, a small indian manufacturers operating 10 ghantis (emery wheels). Another indian manufacturer said, “Many small manufacturers have shifted to Bhavnagar in the last few months following problems in the industry. If the problems continue for another few months then more people in the industry are likely to shift to their native places.” On the other hand, the leaders of the industry believe the 20 per cent hike in the wage is not going to affect the business of the small and medium manufacturers. “The cost of the raw material is 80 per cent and the labour charge is 20 per cent. However, if the 20 per cent hike in the wages is calculated then the manufacturers have to to implement only two per cent hike in the wages. If the industry wants to retain the workforce then each one of the manufacturers have to comply with the hike in the wages,” said Praveen Nanavati, former president, SDA. Dinesh Navadia, vice-president, SDA said “There are some unscrupulous elements in the industry behind the labour unrest. But the industry leaders are making all possible efforts to convince each and every manufacturer in the industry to comply with the 20 per cent hike in the wages.”

Small is big: SMEs on overseas drive

Move over Tatas and Birlas. A new wave of small and midsized ‘indian manufacturer’ is creating ripples on the global M&A stage. Even as inorganic growth opportunities within India become scarce, the economic downturn of Europe and North America has thrown up attractive opportunities for acquisitions. An increasing number of Indian companies is making bids — at times audacious — to gobble up overseas firms. So even though it’s the big ticket acquisitions that capture our imagination, the small and medium companies are increasingly riding the M&A wave abroad. As a result, the trend has brought into spotlight budding multinationals from India. “We are definitely witnessing an increase in outbound transactions by Indian companies over the last couple of months. These companies are from newer segments such as industrial products, chemicals, and even some consumer products brands that are growing steadily within India,” says Ajay Arora, partner, transactions advisory services, Ernst & Young. Companies are increasingly expanding their markets beyond the Indian borders - either to access new cuttingedge technologies or in search of natural resources. Since January 2010, there have been around 35 overseas deals struck by Indian companies. The figure is comparatively large as against the over 40 deals sealed in entire 2009. Apart from larger deals, such as Bharti Airtel’s acquisition of Zain Africa ($10.7 billion), Hindustan Zinc’s acquisition of Anglo-American Zinc ($1.3 billion) in Namibia and Jindal Steel & Power’s acquisition of Shadeed Iron & Steel in Oman ($464 million), the landscape is dotted with many small to mid-sized deals like Banco Products’ acquisition of Nederlandse Radiateuren Fabriek of Netherlands ($24 million), Inox India’s majority stake buy in Cryogenic Vessel Alternatives (CVA) of US ($140 million), Crompton Greaves’ acquisition of Power Technology Solutions in the UK ($45 million), Hindustan Construction Company’s acquisition of a 66% stake in Karl Steiner AG ($33 million), among a host of others. There are many opportunities for Indian companies to globalise across sectors, including the mid-IT space. Africa has witnessed many deals in the consumer products and telecom space. Distressed assets in Europe are now also prime targets for acquisitions. “Six months ago, such an endeavour was not possible for Indian companies due to financing constraints. Today, balance sheets are much stronger and companies are on a better footing to acquire companies overseas,” says Sanjeev Krishan, executive director/partner, transactions group, PricewaterhouseCooper (PwC). Clearly, high interest burden and liquidity crunch are no longer the stumbling blocks in India Inc’s endeavour to make overseas acquisitions. “In 2007, total offshore investment by Indian corporates was to the tune of approximately $32.9 billion. It is fair to say that the transformation of Indian SMEs into Indian MNCs is well underway,” says Bharat Anand, partner, Khaitan & Co, the New Delhi-based firm which helped Suzlon in its acquisition of Hansen Transmission and Inox’s purchase of CVA. indian suppliers With CVA being the world’s largest manufacturer of cryogenic transportation equipment, Inox India has secured its position as a global player in the short span, offering total solutions in cryogenic storage, transportation and distribution engineering across nearly 100 countries with exports accounting for almost 60% of its turnover. There are some companies which belong to larger groups and, by virtue of that, have a global presence. Some of the lesser known or smaller Tata companies too have hit the M&A trail. For instance, TRF, in April, acquired UK’s Hewitt Robins International. Says Rajesh R Jumani, chief marketing officer, Tata Interactive Systems, “In an increasingly flat world, it is often more advantageous to collaborate rather than compete. We can synergise our mutual strengths, reach out to untapped markets or strengthen our positions in a geography, and meet local needs more effectively.” A few years ago, Tata Interactive Systems, a pioneer in e-learning, acquired Tertia Edusoft’s Germany and Switzerland business. The acquisitions have acted as a force-multiplier for the company, helping it ramp up the scale of its operations in Europe. “On the other hand, it has also helped us take formerly localised products to a wider, global audience. So it’s mutually beneficial. After all, ultimately all initiatives need to make business sense,” says Jumani. There is no doubt that the Tatas’ acquisitions of Corus and Jaguar Land Rover, followed by Reliance’s audacious bid for Lyondell Basell and Bharti’s Zain buy, have made small and mid-size Indian companies (SMEs) to venture offshore. Godrej Consumer Products, part of the Godrej group, has made four outbound deals so far this year. The company has said it continues to look out for target companies in overseas markets. In the pharma space, Avantha Group acquired Pyramid Healthcare Solutions ($20 million) in the US and Aegis acquired Sallie Mae (customer service centre) in Texas. Cheap dollar, foreign loans make global buy attractive Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says. The rationale An acquisition is an easy way for small and mid-sized Indian companies, particularly specialising in products like cryogenic vessels, graphite plates, gerkins, etc., to establish a foothold abroad, given that they would have to compete with other MNCs. In some cases, an acquisition ensures an offshore presence along with a competitive supply chain. Some like the Godrej group have gained leadership position in the hair colour space in 19 countries across the globe through the inorganic growth route. With deflated valuations of potential target companies, the global recession has thrown up enough opportunities for Indian companies to make outbound deals. “With the American economy gradually limping out of recession, several businesses set up some time ago are up for sale. Timingwise, this has helped Indian SMEs, which have benefitted from India’s liberalisation in the past 20 years, to acquire these businesses,” says Anand of Khaitan & Co. The appreciation of the rupee against the dollar, along with the availability of foreign currency-denominated loans has assisted these companies by making foreign acquisitions cheaper for Indian SMEs. Difficulties faced In the face of it, everything seems hunky dory at the pace indian manufacturers at which Indian companies are striking deals. However, the road may be riddled with challenges in matters related to corporate governance, competition law, legal risks and cultural fits. Indian SMEs may be accustomed to a cosy relationship between promoters and non-executive directors. But such issues are treated with much more seriousness in the West. “Indian companies will have to transform their thinking over such issues if they want to be regarded as blue chip investors from emerging markets,” says Anand. indian manufacturers Moreover, Indian companies are not accustomed to operating in an environment where there is a strong competition regulator. Indian companies are often prepared to take a high degree of legal risk since the judiciary takes a lot of time to address and resolve issues. However, in the West, the judiciary is much more efficient, and courts award actual costs as well as substantial damages on time. Anand feels managers of Indian companies will require training to deal with such issues. Another big challenge is HR. According to Ashutosh Maheshvari, CEO, Motilal Oswal Investment Advisors, “The biggest impediment remains to be able to adapt to the cultural business conditions to operate in the target company’s country.” “We have seen integration challenges where human resource policies or the processes or systems are different in the two countries and companies find it difficult to integrate them,” says Arora of Ernst & Young. indian manufacturers Certain legislations and regulations, especially on environment issues, are also much stricter in the western countries as are closure regulations. New companies heading out may also find it difficult to deal with these issues. The quicker they adapt, the better. Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says.

telecommunication products

Aone hundred year survey on inflation published by The Economist two years ago contained one stunning fact. The only item of cost to have gone down in a hundred year time span was the cost of a transatlantic telephone call. The telecom sector, nonetheless, attracts the highest level of investment globally, despite the fact that telecommunication products pricing has fallen, thanks to technological innovation. The simple explanation for this apparent inconsistency is that the lowering of prices has spread telephony use by benefiting the customer and thus growing the industry. In this the telecom equipment regulator must work together with the consumer, for they are co-drivers of the industry, with the regulator controlling the wheel and the consumer the accelerator/brake pedals. Thus far the regulator has managed, hopefully, to remove vexatious issues by introducing a unified licensing regime. His next move, following similar progress in the US, would be to have number portability. This means that the consumer is able to retain his number even whilst switching carriers. At present he is loath to switch carriers, and suffers all the poor quality of service which all carriers invariably inflict, for fear of losing his number and having to inform all his contacts. The US Supreme Court has directed adoption of number portability and India should also follow. It is then that there would be true competition and it will be the consumer who will drive efficiency and grow the industry. Already, the falling rates for SMS, roaming and long distance charges are an indication that competition is working and driving the industry; the jigsaw would be complete with number portability. There are several technologies that are emerging, and which will once again throw challenges, for the technologies would cut across regulatory boundaries. The Techonology Quarterly review in The Economist (December 6) mentions ‘software designed radios’ which are radios that are reconfigurable using software. “A mobile phone based on smart radio technology might, for example, be able to switch between cellular standards used in different parts of the world,” says the report. One company has already demonstrated a chip, called the Sandblaster, capable of switching, through software, between CDMA and GSM, (and, in future, Wi-fi) and telephone instruments based on smart radio technology, would make this possible. The ensuing competition would be immensely beneficial to consumers, but would need number portability to make it effective. In macro economy news, the outlook remains positive. Forex reserves have hit $97.5 billion and would hit a century faster than most of the Indian batsmen. The CEO of Crisil expects several rating upgrades, and a doubling of debt issuances, to Rs 500 billion in the fiscal year to March 05. Interest rates, however, appear to have bottomed out, according to several CEOs. Foreign investment continues to pour in and drive the stock market, with the BSE Sensex gaining 184 points to end the week at 5,315. In corporate news of interest, Ranbaxy has announced a deal to acquire RPG Aventis, telecom products manufacturers. The company has a pipeline of 52 molecules which include 18 of the top 20 best selling molecules. The market continues to be in an up run and buying on dips, even small ones (buying fundamentally good shares in honestly managed companies at around 8 - 10 per cent below peak price is as good a strategy as any). The government has promised to drive economic reforms forward after recent electoral victories and if they live up to that promise (though that does not constitute a strong point for a politician) the market can only boom.

textiles manufacturers

China said it “strongly objected” to the new measures taken by the European Union against imports of Chinese textiles, calling the move a potential blow to the global clothing trade. “This departs from the spirit of free trade proposed by Europe and seriously violates the basic principles of the World Trade Organization,” commerce ministry spokesman Chong Quan said in a statement on the ministry’s website. The Chinese response came a day after the European Union unveiled “alert levels” for growth rates in Chinese clothing imports which will trigger investigations and informal consultations with China. “This will have a negative impact not just on Sino-European textile trade, but on global textile trade as a whole,” Chong said in the statement. Chong said China and the EU each have “complementary strengths” in the textiles manufacturers field, and that “common interests do exist” in the industry. “Any action that prevents the integration of the textile industry will cause damage to the common interests of China and the EU,” he said. “The two sides should seek to solve the problems they face through strengthened dialogue and cooperation,” he said. The EU action, and other parallel actions by the US, reflect a world coming to terms with the end on January 1 of a 31-year-old international textile import quota system. The expiry of the system has left producers in developed and developing countries bracing for a wave of imports from China, whose leather products manufacturers benefit from cheap labour and huge economies of scale. China has reacted angrily to the groundswell for protectionist measures in the West against its textile exports, insisting that it should not be penalised for having more competitive industries. “As a responsible member of the WTO, China has taken a series of active measures to ensure the smooth transition to an integrated textiles and leather products market,” said Chong. “We hope the EU fully understands the efforts made by the Chinese in this respect and cautiously handles the issue. The overall trade relationship between China and the EU shouldn’t be impacted by unilateral moves,” he said. According to the measures unveiled by the EU on Wednesday, the “alert levels” range from 10-100% growth over the 2004 trade volume, depending on the type of product. The system of “alert levels” means the EU, which is trying to build up strong commercial relations with China, is not going as far and as fast down the road to safeguards as a US investigation into Chinese textiles. The US garment industry on Wednesday demanded government action to curb 14 types of apparel exported from China as tensions over surging Chinese textile shipments escalated. The National Textile Association (NTA) said urgent measures were needed in addition to US government’s announcement this week that it has launched an investigation as a first step to slapping restrictions on the Chinese exports. The NTA filed petitions with government demanding restoration of textile quotas scrapped globally on January 1, claiming that textile and apparel imports from China had leapt by 63% since then. AFP

toys manufacturers

There’s trouble brewing in Toyland. The sixmonth ban on import of Chinese toys may be a welcome move for the Indian toy industry. It may also ensure ‘safer’ toys for our children, provided our own toys are put under the scanner too. But it would also mean depriving children — and harassed parents — of a big range of attractive and affordable toys. The weekly visits to the toy shops will get quite expensive and may eventually stop. Retailers say the ban will have little impact on market supply for now as the stocks of Chinese toys lying in warehouses of importers and wholesalers would easily last for the next five to six months. But if the ban is extended, Indian children may have to look to the west as our own toys are not as attractive. ‘‘The Indian toy industry is still not properly evolved. The price factor apart, Chinese toys are much more attractive and have a wider range compared to what is manufactured in the country. A blanket ban on all imports from China would only deprive children as toys suppliers made in Europe and US will prove too expensive,’’ said Satish Sundra, owner of Ram Chander and Sons, one of theoldest toy stores in the capital. Toy sellers claim that more than 70 per cent of the stocks of toy shops in the city comprises of Chinese toys. There are some Indian companies which give them competition in terms of quality and range but the Chinese toys are more cost-effective overall. ‘‘They sell more because they are cheaper and at the same time offer better quality and more variety than toys manufacturers India. Children like to get a new toy every week, and since the ‘Made in China’ variety is about 75% cheaper than the Indian counterparts, parents have taken well to them. Also, Indian manufacturers still can’t match the quality of these toys,’’ said Saurabh Kharbanda of Maya Sports, who have been in the trade for over 40 years. Though the real reason for the ban is still being debated, sources said this could be a move by the government to protect the Indian toy industry. Since the Chinese invasion, small Indian toy manufacturers have suffered as they hardly find any takers. The indigenous toy industry has come a long way since and a marked improvement is seen in Indian toys owing to competition. But retailers feel we still have a long way to go. toys manufacturers have welcomed the move. ‘‘It’s a step in the right direction. Chinese goods are substandard and have been a threat to the unorganised toy sector. The reason for this is that toy manufacturing was a small-scale sector in India till recently. The Chinese goods came in just when big investment started because of which the sector was never allowed to develop. It will get a breather now,’’ said Rajan Handa, owner of OK Play Toys. Industry sources feel that doubts of the west about the toxicity of Chinese toys are not baseless. According to reports, nearly 80 per cent of our toys are imported from China and a large chunk is non-branded. Their quality is highly suspect. But parents in India are still not as conscious about child safety as is the case in the US and Europe, due to which there is still a huge demand for Chinese products. So, are Indian toys safe? Said Rajesh Arora, general secretary of Toys Association of India: ‘‘India is now exporting toys to US and Europe, and our exports have shown a growth rate of about 20% per annum. This can’t happen without quality production. But toy making also happens in the unorganised sector, with little checks. We are trying to create awareness about that to make our toys safer.’’ A better solution, feels Sundra, would be to impose strict quality control at the customs to ensure only ‘‘safe’’ toys come in. ‘‘A blanket ban on Chinese toys is no solution,’’ he feels.

leather products manufacturers

China said it “strongly objected” to the new measures taken by the European Union against imports of Chinese textiles, calling the move a potential blow to the global clothing trade. “This departs from the spirit of free trade proposed by Europe and seriously violates the basic principles of the World Trade Organization,” commerce ministry spokesman Chong Quan said in a statement on the ministry’s website. The Chinese response came a day after the European Union unveiled “alert levels” for growth rates in Chinese clothing imports which will trigger investigations and informal consultations with China. “This will have a negative impact not just on Sino-European textile trade, but on global textile trade as a whole,” Chong said in the statement. Chong said China and the EU each have “complementary strengths” in the textiles manufacturers field, and that “common interests do exist” in the industry. “Any action that prevents the integration of the textile industry will cause damage to the common interests of China and the EU,” he said. “The two sides should seek to solve the problems they face through strengthened dialogue and cooperation,” he said. The EU action, and other parallel actions by the US, reflect a world coming to terms with the end on January 1 of a 31-year-old international textile import quota system. The expiry of the system has left producers in developed and developing countries bracing for a wave of imports from China, whose leather products manufacturers benefit from cheap labour and huge economies of scale. China has reacted angrily to the groundswell for protectionist measures in the West against its textile exports, insisting that it should not be penalised for having more competitive industries. “As a responsible member of the WTO, China has taken a series of active measures to ensure the smooth transition to an integrated textiles and leather products market,” said Chong. “We hope the EU fully understands the efforts made by the Chinese in this respect and cautiously handles the issue. The overall trade relationship between China and the EU shouldn’t be impacted by unilateral moves,” he said. According to the measures unveiled by the EU on Wednesday, the “alert levels” range from 10-100% growth over the 2004 trade volume, depending on the type of product. The system of “alert levels” means the EU, which is trying to build up strong commercial relations with China, is not going as far and as fast down the road to safeguards as a US investigation into Chinese textiles. The US garment industry on Wednesday demanded government action to curb 14 types of apparel exported from China as tensions over surging Chinese textile shipments escalated. The National Textile Association (NTA) said urgent measures were needed in addition to US government’s announcement this week that it has launched an investigation as a first step to slapping restrictions on the Chinese exports. The NTA filed petitions with government demanding restoration of textile quotas scrapped globally on January 1, claiming that textile and apparel imports from China had leapt by 63% since then. AFP

Indian transport companies

Indian companies which engaged in oil-for-food transactions with the Saddam Hussein regime paid bribes to the former Iraqi ruler to get oil contracts. A probe conducted into their dealings with the Saddam regime by Enforcement Directorate (ED) shows that many Indian companies, including some big names belonging to both public and private sectors, paid bribes to the Saddam regime through a Baghdad-based transportation agents company owned by the ruling family. ED, however, has found the Indian companies prma facie ‘not guilty’ of wrongdoing. Though the probe into the companies is still going on, the evidence with ED suggests that they complied with RBI guidelines on both the oil they brought home and the commission they paid to agents to procure it. The finding takes on significance in view of the demand of CPM and SP to take action against the companies who did oil-for-food business with the Saddam regime. The probe, which is about to be wrapped up, brings out the readiness of Indian companies to step outside the box to get lucrative oil contracts. “These companies had either made surcharge payments through shipping liners, commission agents or directly to Allai transport company, owned by the Saddam Hussein family. In most of the cases, the alleged bribe went through Allai transportation services. The deals of all major companies have been investigated and the pattern remains the same,” ED sources said. “The alleged surcharge payments were shown by the companies as having paid commission to their agents which was duly conveyed to RBI after the deal was struck,” a senior source said. “There is prima facie no FEMA (Foreign Exchange Management Act) violation as the total money earned by these companies was brought into the country with due acknowledgment,” sources added. After showcause notices are issued to Natwar Singh and his kin, ED will begin cross-examination of representatives of the Indian transport companies on the Volcker allegations of surcharge payments. ED’s scope of investigation hinges on how the Indian companies paid surcharge money to Saddam Hussein. The findings may take the sting out of Left’s attack against government for alleged leniency towards corporates. On Saturday, CPM general secretary Prakash Karat had demanded a probe into the dealings of Indian companies with the Saddam regime. He found support from SP leader Amar Singh on Monday who attacked the government for not proceeding against the corporates. Sources, however, said that the companies may get a clean chit. The ED finding is sure to add to the angst of Natwar Singh. He has made no bones of his anger over being singled out as somebody whose oil-forfood dealings were not above board. SLIPPING ON OIL ED evidence suggests the firms complied with RBI guidelines on both the oil they brought home and the commission they paid to agents to procure it These firms had either made surcharge payments through shipping liners, commission agents or directly to Allai transport company, owned by the Saddam family The alleged surcharge payments were shown by the companies as having paid commission to their agents which was duly conveyed to RBI after the deal was struck No FEMA violation as the total money earned by these companies was brought into the country with due acknowledgment

Indian generic companies lash out at US pharma biggie

At a time when domestic generic medicines are helping the developed world to slash healthcare costs, big pharma has lashed out at indian manufactruers. The remarks made by chairman of one of the world’s largest companies, Sanofi Aventis, attacking domestic generic companies for exporting drugs, has created a furore. Infuriated, the industry has asked the government to step in and register their protest at an appropriate forum. Recently, Jean-Francois Dehecq, chairman of French firm Sanofi-Aventis, citing India as an example has criticised generic companies for exporting drugs rather than selling them locally. He’s been reported as saying in the media, “They make (drugs) cheaply and bring them to the North for people who can already pay. It is a scandal. They are exploiting people in the South. They should deal with their own countries first.” Indian Pharmaceutical Alliance secretary general, DG Shah, told Times of India: “This statement is indicative of the mindset of the big pharma that the third world nations should not look at them for access to medicine. It conveys a message to the trade negotiators that the developing countries like India, Brazil and Indonesia should not look at the West as a market for their generic products.” The industry has countered the charges saying that they are baseless. It has said in a letter to the commerce secretary that the domestic industry has not only made indian manufacturer self-sufficient for most of its medicines requirement but also emerged as a major source of supply for the developing countries. Such statements, if not challenged, hurt the interest of the domestic industry, it adds. One of the major generic manufacturers, Cipla’s joint MD Amar Lulla said “This (statement) reflects the insecurity of the big pharma towards India.” Generic drugs are copies of patented medicines and are sold in certain cases at even onetenth of the prices of the branded but offpatent drugs. The domestic industry wants to sensitise government to the attitude of the big pharma, whom it wants to “please through a trade related aspects of intellectual property rights plus IPR regime.” Sanofi-Aventis has two manufacturing units in India, both of which have been identified as global sourcing units, and its Indian operations recorded export revenues of 30% of its total sales in 2005

brass hardware manufacturers

AFTER bearing the brunt of the economic downturn at the beginning of this decade, the technology sector looks as if it may be among the best positioned to benefit when the global economy recovers from the current recession. Of course, that’s partly because it’s not tech’s bubble that burst this time. Real estate and finance have that distinction. Yet tech companies also appear to have learned tough lessons from the Internet bust that have helped them manage through the latest slump. Many cut costs and made other hard choices early on, and now look poised to profit if corporate and consumer demand begin to climb. “Have we learned from previous mistakes? Absolutely,” says Niklas Savander, executive vice-president at phone giant Nokia. “Not everyone has managed perfectly, but I would say the tech industry has managed it better than others.” Investors are betting that’s the case. The techheavy Nasdaq has rallied in the past month and is up 5% for the year, while the Standard & Poor’s 500-stock index and Dow Jones industrial average are down. Shares in Cisco Systems, IBM, Research In Motion, and Apple have risen at least 10% in 2009. “Right now, the stocks are on the bargain table,” says Jerome I Dodson, CEO of Parnassus Investments. “If there is even a small increase in demand, I suspect that tech stocks will take off.” These could be misplaced hopes. If the economy continues to slide, tech companies won’t see much benefit from their belttightening and other moves. And the economic outlook remains cloudy. Tech retail sales, for example, slid 10% in March, according to government data, far worse than the 4.1% drop in February. “It’s still pretty ugly,” says Bill Whyman, senior managing director at International Strategy & Investment. CISCO’S INVENTORY VIGILANCE Tech companies have taken a number of steps to position themselves for a recovery. They’ve laid off workers, closed facilities, and outsourced even more of their production. Many companies have also hoarded cash for years, even in the face of investor complaints. Now as other companies scramble for financing, tech giants such as Cisco, Apple, IBM and Microsoft have billions on hand for acquisitions, research and development, and other long-term plans. Perhaps most important is how aggressively tech companies have managed production and inventories. Whyman figures that while hardware suppliers sales fell 5.8% from the third to fourth quarter of last year, inventories dropped even faster, by about 9%. It’s a sign tech companies quickly throttled back on making new PCs, mobile phones, and chips in anticipation of weak demand, saving themselves from having to write off excess inventory, as they had to do in years past. Take Cisco. In April 2001 the networking giant made one of the more painful confessions of the Internet bust: It had let so much networking gear pile up in inventory that it had to take a $2.5 billion charge for equipment no one would ever buy. Ever since, it’s been working to make sure such a thing never happened again. Supply chain chief Angel Mendez is grilled at monthly reviews by CEO John T. Chambers and other top brass, and Cisco has half the inventory it did in 2001 even though it is twice as big. “It didn’t take John eight years to start asking questions (about inventory levels),” says Mendez. “He asks about every eight minutes.” Nokia, Intel and others also slowed production last fall within weeks or even days of seeing demand slide. They brought supply chains—often involving dozens of companies—to near hibernation. A few shut down. David Yoffie, a vice-president at server maker Rackable Systems, sent an e-mail to hundreds of partners last November telling them to stop all production immediately. “Customers had hit the brakes hard,” he says. SMARTPHONES, THE SMART BET brass hardware manufacturer It takes more than a wary eye to pull off such feats. Robert B. Carter, chief information officer at FedEx, says high-tech and life sciences companies have “the most advanced supply chains of any industry,” thanks to investments in new technologies and talent. Just as Apple customers can go online to track exactly where their new iPhone is en route to their door, tech companies and their suppliers, brass hardware manufacturers, and distributors typically share the same real-time view of actual demand. That’s led to other innovations. In the past, companies only air-freighted goods when inventories of a hot product ran out. Now, that’s become quite common for small, light, high-end products. Although air mail is 10 times more expensive than shipping by boat, the products arrive in a day or two instead of three weeks, so they can be shipped after a customer places an order rather than in anticipation of demand. “If there is a spike in demand we can increase production. If not, we don’t overbuild,” says Liam Casey, CEO of PCH International, which helps Western companies produce and distribute products from China. Still, even the leanest companies need growth to turn investors’ heads. Research In Motion’s shares have risen more than 50% this year in part because of strong revenue growth in the latest quarter. And because it cut inventory so drastically, the outlook for both sales and profits is promising. Some big phone companies have no more BlackBerrys on hand for their subscribers, says Neil Mawston, an analyst at Strategy Analytics in London. “Because of the de-stocking, there’s going to be a restocking,” he says. Some see signs of better times in even the most savaged segments of tech. Take chips, where many companies took a huge hit by cutting production to less than 50% of capacity, vs 80% in flush times. BusinessWeekkey:

business services directory

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automobiles manufacturers

While buoyancy in vehicle sales in India may be heartening for the industry and economy, it is also leading to a rise in road accident fatalities in the country. automobile manufacturers in india has the dubious distinction of being the second highest in the world after China in annual road accident fatalities. The number of annual road accident fatalities in India crossed the 80,000 mark in 1999 — a rising trend since 1990 when the number was 54,000 as per the department of road transport and highways data. In 2002, the number of road accident fatalities per 10,000 vehicles was the highest in China (17.10) followed by India (14.39). In most highincome countries such as Sweden, US, Australia, Japan and Germany it ranged between 1.08 and 2.58. While globally 90% of road crashes were attributed to “human error” by the World Health Organisation’s “World report on road traffic injury prevention”, in India “driver fault” was to blame for 83.5% of accidents, followed by passenger/pedestrian fault (4.7%), mechanical defect in vehicles (3%) and “other factors” (6.8%) such as cattle, fallen trees, non-functional signals and absence of reflectors. These were some details highlighted in a study published by Pune-based Central Institute of Road Transport’s (CIRT) latest edition of the Indian Journal of Transport Management. automobile supplies Society of Indian automobiles manufacturers (Siam) said sale of passenger cars in India rose by 69.23% between 2001-2005 — from 5.67 lakh in 2000-01 to 8.19 lakh in 2004-05. Siam statistics state sale of two wheelers rose by 58% during the same period, with domestic sales of two wheelers rising from 3.6 million in 2000-01 to 6.2 million in 2004-05. Based on the WHO report, the study by Alok Rawat, principal secretary with the Sikkim government notes the social cost of road accidents in the country was pegged at Rs 55,000 crore in 1999-2000, constituting 3% of the Gross Domestic Product (GDP) for that year. Although road accidents have been traditionally viewed as random events “that happen to others”, according to Rawat, the new paradigm shift now views road crashes as “preventable and predictable.” This has been demonstrated in high income countries, says Rawat, where an established set of interventions through legislations and technology have led to “significant reductions in the incidence and impact of road traffic injuries.”

agricultural products manufacturers

Life’s Good” for LG India head Soon Kwon but he wishes the economy were in better health. Kwon, 55, believes that to beat the slowdown there is a need to engage a large part of the population in industriali zation. According to heavy dependence on agricul ture, and even FDI, is not right way forward if wants to return to a higher growth trajectory and, importantly, match up to China. The slowdown has already made Korean consumer giant LG Electronics rethink some of its planned investments for India. “Regarding new investments for plant and manufacturing, we would have to make necessary adjustments,” says Kwon, who has had stints at the company’s headquarters in South Korea apart from Australia, US and Canada. “The first months of this year were more encouraging than last year. During the initial months last year, everybody was worried about the overall macro-economic situation, mostly the rupee value. But now that the rupee is slowly stabilizing, LG feels a little better in the overall business sense,” says Kwon. Kwon feels the government should put more emphasis on industrialization as “India’s growth rate has fallen drastically and this has had an effect on the overall economy”. “The dependency on agriculture and FDI is too high. Until we have a global industrialization plan, I cannot see how it will be possible to achieve an economic growth rate of 8-9%. As a Agricultural products manufacturers, we want to see some radical and rational moves towards industrialization.” Agricultural equipments manufacturers He says that the poor economic performance is having an effect on how corporates view India. “Disposable incomes are not rising even though the prices of products are. Three or four years ago, everyone expected consumer demand to double in the next five years, but it seems like demand is falling,” Kwon says. LG has four major business divisions in India – television, home appliances, air conditioners and mobile phones. Home appliances contribute about 50% to its revenues, TVs about 35%, ACs 10% and mobiles chip in the least. Is the company worried that mobiles form a small portion of its business, especially considering that most of its competitors like Samsung and Sony bank so much on the mobile phone business? “Different companies may have different business portfolios. They may be more successful than us in mobiles but LG is obviously the leader in other segments,” Kwon says. LG is globally re-working its strategy on mobile phones. “The whole mobile business mechanism is more dynam- than other segments, and it is also a very global business. Last year, we shifted our mobile priorities and decided to pull out of lower-budget phones, and instead focus on smartphones. Ever since then, our mobile business has started growing. This year, we can grow it to 10% of our over- business,” Kwon says. Apart from a sluggish , corporates in India – including LG – have been having a run-in with tax authorities. “I do not think that this will impact our business at all… I do think that the government should spend more time in allocating resources for industrialization. I do not know to what scale the government would go further, but this tax issue is a worrying factor.” agricultural products exporters Kwon feels that the government needs to come out with policies that aid corporate growth, which is a necessary step to compete against China. “If you look at the global market, India may be the only country to ultimately compete against China. The role of the Indian government is very important here as the economy does not grow on its own... how to grow further and how to reduce the gap between India and China will depend on how we grow in the industrial sector.” When he is not slugging it out in the Indian market for business, Kwon loves to play guitar and join his wife for shopping. Having spearheaded the India operations of LG for the past two years, Kwon has also developed a taste for Indian food, which is evident from his fondness for chicken tikka and naan