INDIAN ECONOMIC & BUSINESS
From the Commercial Wing of the Indian Embassy in Israel
INDIAN ECONOMY NEWS
Stock market cap hits $1 trillion
The recent bounce-back in the stock markets has helped India’s market capitalisation (m-cap)
touch the $1-trillion-mark again. As a result, India is back among the Top 10 in world m-cap
rankings. Now, India’s m-cap is the ninth largest at $1.04 trillion. It has overtaken Brazil,
Switzerland and Australia in the last two-and a-half months. The m-cap was at its peak at
$1.89 trillion in January 2008.
India's clean energy investment up by 12% to $3.7 billion
Sustainable energy investment in India went up to $3.7billion in 2008, up 12% since 2007. It
included asset finance of $3.2 billion, up by 36%. Venture capital and private equity saw an
increase of 270% to $493 million. Mergers and acquisition activities totaled $585 million. Most
acquisition activity was centered on biomass, small hydro and wind projects, according to a
new report. The wind sector got the biggest chunk of investment, up from $2.2 billion to $2.6
billion. While investment in solar went up from $18 million in 2007 to $347 million, investment
in small hydro quadrupled to $543 million.
Online shopping in India rises despite the global slowdown
Indian customers shopped online more frequently in the fourth quarter of 2008 than in the
same period the previous year, despite the bleaker economic climate, a survey conducted by
Mastercard Worldwide reveals. In India , 54 per cent of respondents had used the Internet for
online shopping. The top three popular online purchases included airline tickets (54 per cent),
home appliances and electronic products (48 per cent) and CDs/DVDs/VCDs (44 per cent).
Government plans to put in Rs 16,000 crore (US$ 3.3 Billion) in 12 banks
The government is planning to infuse Rs 16,000 crore (approximately US$ 3.3 billion) in over
a dozen public sector banks by subscribing to equity shares through right issues. The move is
aimed at bolstering the banks’ capital base and help them meet the domestic financing
Bullish markets put new Mutual Funds schemes on fast track
Mutual fund houses which have been waiting in the wings for conditions to improve have
already started flocking the markets, lining up several new fund offers (NFOs) to be launched
over the next few months. In fact, Shinsei AMC, the Indian arm of Shinsei Bank, Japan, has
already filed an offer document for its ‘Industry Leader Fund’ with market regulator Securities
and Exchange Board of India (Sebi) and will be launching schemes in the next two months.
Foreign investors pick 10% in India bulls Real Estate
Foreign investors are aggressively renewing their interest in the Indian real estate sector.
Overseas investors such as Fidelity, HSBC, TPG and Moor Capital on Monday lapped up the
entire $553-million (Rs 2,656 crore) share sale issue of Indiabulls Real Estate (Ibrel).
Overseas investors bid for thrice the shares offered by Ibrel, as the outlook for the Indian real
estate sector seemed to be improving. HSBC and Fidelity added to their existing stake in the
company, while TPG and Moor Capital joined other investors.
IT / Telecom / Biotech News
India's 2nd-largest CDMA market
India has become only the second country in the world to have more than 100 million CDMA-
based (code division multiple access) mobile phone subscribers after the US, which has 157
million CDMA users, according to an industry body.
India will get next 400 million mobile users five times faster
It took 15 years for India to get 400 million mobile users, but under three years it will add the
next 400 million. According to the revised estimates by the Cellular Operators Association of
India, the mobile subscriber base is expected to zoom to 893 million by 2012. That is 150
million more subscribers than what was projected earlier. The COAI’s earlier estimates had
put the mobile user base at 743 million by 2012. The reason for the new optimism is derived
from the huge uptake of mobile services in rural areas.
Indian firms Bharti, Infy, TCS, Wipro amongst top tech list
Indian firms including telecom major, Bharti Airtel and technology firms Infosys, TCS and
Wipro are amongst the list of 100 best performing technology companies in the world
generated by American magazine, BusinessWeek. The 'Infotech 100' list for 2009—based on
shareholder return, return on equity, total revenues, and revenue growth—ranks telecom giant
Bharti Airtel at the sixth position. The three IT majors—Infosys, TCS and Wipro—feature in the
top 50, with Infosys placed at 25, TCS at the 30th spot and Wipro at the 43rd position.
MTNL launches pre-paid card for 3G services
State-run Mahanagar Telephone Nigam Ltd (MTNL) on Tuesday launched a pre-paid option
that will enable customers in Delhi experience high-speed data connectivity at an upfront cost
of Rs 300 (about US$ 6).
Telecom boom may ring in mega BPO deals
BPO revenues from Indian telecom players have tracked the exponential growth of the
telecom industry and rapid rise of new corporate giants, including Bharti Airtel. Outsourcing
revenues from the telecom sector in India are set to grow at a CAGR of 31% in the next few
years to nearly $2 billion in 2012, according to a study on the potential of the domestic BPO
industry by Ernst & Young.
TCS signs five-year contract with Volkswagen Group
India’s largest information technology (IT) firm, Tata Consultancy Services (TCS), has signed
a five-year contract with UK-based automobile maker Volkswagen Group to deliver IT
transformation and support services.
Tata Power to focus on renewable energy options
Tata Power is bullish on the roadmap for renewable energy. By 2017, the company wants to
produce 25% of its electricity from renewable sources (which are carbon neutral) and to 35
per cent by 2030. With an installed capacity of 2,700 MW, Tata Power produces about 16% of
power from green energy sources like hydro and wind.
Renault-Nissan JV has big India plans
Renault-Nissan Automotive India, a 50:50 joint venture floated for a passenger car project in
Chennai, is eyeing 5.7% of the market share in India by 2012.
Apollo acquires Dutch tyer maker Vredestein Banden
India's largest tyre maker Apollo Tyres has acquired Dutch tyre maker Vredestein Banden
for an undisclosed sum, gaining a foothold in the lucrative European tyre market and raising
its annual turnover by a quarter.
Roche eyes 2-3% global turnover from India
Switzerland-based Roche Dignostics is eying India as a strategic market and plans to
generate nearly two to three per cent of its global turnover from its Indian operations within
the next few years.
Royal Philips plans to make India its manufacturing hub
Royal Philips Electronics, Europe’s biggest consumer electronics group, plans to make India
a hub for developing and manufacturing products for global markets and sourcing
components across its core areas of lifestyle, healthcare and lighting.
Marriott to add 24 new hotels by 2012
Luxury hotel chain Marriott International will open 24 new properties in India over the next
three years. The company, which largely operates through management contracts, has sealed
the deal for the properties with real estate developers. Marriott will launch six properties this
year. Of these, the Courtyard Marriott in Pune will be the first to open. Subsequently, four
more Courtyard-branded properties would come up in Ahmedabad, Gurgaon, Hyderabad and
Amway to make India its sourcing hub
Amway, the US-based direct selling FMCG major, plans to make India its sourcing hub as
its Asian business has surpassed the total turnover it witnessed in other parts of the world.
Nomura to buy 35% in LIC Mutual Fund
Japan's Nomura Group is set to acquire 35 per cent in LIC Mutual Fund, India's seventh
largest mutual fund, after the board of directors of Life Insurance Corporation (LIC)
approved a proposal to induct the Japanese financial services major as a strategic partner in
the mutual fund business.
Forthcoming Events in India
June 18-20, 2009, Bangalore
June 18-21, 2009, Chennai
International Livestock & Dairy Expo
July 2-4,2009, New Delhi
India International Jewllery Show (IIJS 2009)
August 6-10,2009, Mumbai
September 4-7, 2009, Mumbai
India International Travel Mart
September 5-7,2009, Mumbai
International Foodtec India 2009
September 17-19,2009, Mumbai
Business Offers for Israeli Companies
No Company Details Interest
Pioneer Enterprise, Mumbai, India Manufacturers & Suppliers of
Contact Person: Kutubuddin Herbal Ingredients, Nutraceuticals,
1 Tel: 91-22-23472534., Fax: 91-22-23470325 Essential Oils, Ayurvedic Products
RSP Corporation, Jaipur
2 Contact Person: Ravi Modani, Director, Manufacturers & Exporters of
Business Development Refractory & Mineral Products
Tel: 91-141-5103091., Fax: 91-141-5103092
Ex-Im International, Mumbai, India Interested in Polyester Micro Twill
Contact Person: Ghanshyam Kulwal Optical Sheeting
3 Mobile: 91-932272860
Diamond Energy Resources Pvt.Ltd, Kolkata Interested in International Partner as
Contact Person: Nidhi Saraf Joint Venture for setting up Food
4 Tel: 91-33-22260822/22265694 Processing Unit in West Bengal,
Fax: 91-33-22264608/22484190 India
Fab Links, Bangalore, India Interested in Cotton Fabrics mainly
5 Contact Person: Rajesh Mehta for manufacturing of Readymade
Tel: 91-984-5050910 Garments and Fashion Apparels.
Manish Saharan, Jaipur Manufacturers & Exporters of
6 Mob: 91-9829025422 Various Precious, Semi Precious
Fax: 91-141-4005422 Stones
Chamunda CLIT Pharma Machinery P.Ltd Manufacturers & Exporters of
7 Contact Person: Gaurav Soni Pharmaceutical Machinery (Dosage
Tel: 0091-79-25842679/84 Processing Equipment, Fluid Bed
Fax: 0091-79-25840589 Systems, High Shear Mixers)
Sri Durga Traders, Kerala, India Exporters of Food Grain, Sugar,
8 Contact Person: Vasantkumar, M. Lahoti Mushroom, Onions and other
Tel: 91-474-2760887., Fax: 91-474-2760888 commodities
Torgal Exports, Karnataka, India Exporters of the Pulp of Alphonso
Contact Person: Mallikarjun Torgal (Indian) Mangoes
9 Tel: 91-831-2454164/2454426
GD Crystal Corporation, Bangalore, India Manufacturers of Wide Variety of
10 Contact Person: Ms. Neha Singhal, Sales & Buffing Compounds used in Metal
Marketing Head Polishing Industry
Cipla Ltd Importers & Distributors of Textile
11 Contact Person: Madhura Walanj Dyes, Chemicals & Pigments
Dipti International Exporters of Jewellery, Handicrafts
12 Contact Person: Himanshu Mehta & Garments
Tel:91-98-90908884., Fax: 91-20-261-26404
Address & contact details of the Commercial Wing, Embassy of India:
140 Hayarkon Street, Tel Aviv 63451 – P.O. Box ٣٣٦٨, Tel Aviv 61033.
Tel: 03-5291999; Fax: 03-5270821; E-mail: email@example.com
Please send your comments, feedback and enquiries to the Commercial Wing of the Indian
Embassy in Tel Aviv. Please visit the Embassy `s Website: www.indembassy.co.il