India Now Aug-Sep 2012 Final Updated Low Resolution Client PDF

August-September 2012 | Volume 03 | Issue 03
B u s i n e s s
a n d
e c o n o m y
Microfinance
Rang de is colouRing the RuRal landscape in hues of joy
eMerGinG enTrePreneUr
a technology that pRovides a commonflooR foR Residents
innovaTion corner
Biotechnological engineeRing mitigates human pain
Engineering The Future

India lays the groundwork for growth
A view of Bandra-Worli Sea Link, Mumbai, India
editorial
A Framework of Steel
Volume 01 | Issue 03 | AuGusT-sePTemBeR 2012 03 august-september 2010
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Editorial Editor: Anuradha Das mathur Consulting Editor: Deepak Garg Managing Editor: sangita Thakur Varma Sub Editor: Radhika Haswani dEsign Sr Creative Director: Jayan K Narayanan Art Director: Anil VK Associate Art Director: Atul Deshmukh SR Visualiser: Manav Sachdev Visualisers: Prasanth TR, Anil T & Shokeen Saifi Sr Designers: Sristi Maurya & NV Baiju Designers: Suneesh K, Shigil N, Charu Dwivedi Raj Verma, Peterson, Midhun Mohan & Prameesh Purushothaman C, Haridas B Chief Photographer: Subhojit Paul Sr Photographer: Jiten Gandhi salEs & MarkEting National Manager-Events & Special Projects: mahantesh Godi Regional Manager (South): Vinodh K Regional Manager (North): lalit Arun Regional Manager (West): sachin mhashilkar Production & logistics Sr. GM. Operations: shivshankar m Hiremath Manager Operations: Rakesh upadhyay Asst. Manager - Logistics: Vijay menon Executive Logistics: Nilesh shiravadekar Production Executive: Vilas mhatre Logistics: mP singh & mohd. Ansari india Brand EQuitY Foundation CEO: Aparna Dutt sharma Project Manager: Ruby singh
With a reservoir of natural resources, India lays the groundwork for engineering.
he 21st century world is a challenging place to be in. The world order is witnessing paradigmatic shifts dictated by economic compulsions. We are progressively moving into a state where no nation can exist in isolation. The reality of the 21st century is a multipolar, multi-aligned world. In the 21st century, our engineers are being seen as the keepers of lifes frontiers. The National Academy of Engineering, US, has identified Grand Challenges for Engineering in the era. Several other engineering bodies too have drawn up similar vision documents, the purport of all being optimum utilisation of existing resources, while we research, innovate and engineer to better the quality of human life. Indian engineering is right there at the forefrontCGN Research Labs shows how biomedical technology can be harnessed to alleviate human misery. Read Innovation Corner to know more. Come September 10, Indias engineering expertise will be on display in Central Europe. It is a partner country at the 54th International MSV-Brno Engineering Fair in the Czech Republic. A favoured destination for foreign firms to set up their manufacturing base, India manufactures almost all categories of engineering goods. It exports a vast portfolio of engineering goods worth US$ 60 billion to more than 180 countries. Read our cover story to learn how India is engineering for the 21st century.
India NowBusiness and economy is a bi-monthly magazine published and printed by India Brand equity Foundation (IBeF), Gurgaon. It is published at Apparel House, 5th Floor, #519-22, sector 44, Gurgaon-122003, Haryana and printed at GH Prints Pvt ltd. A-256 okhla, New Delhi-20. The magazine is edited by Anuradha Das mathur, Nine Dot Nine mediaworx Pvt ltd., B-118 sector 2 Noida201301, uttar Pradesh. India NowBusiness and economy is for private circulation only. material in this publication may not be reproduced in any form without the written permission of IBeF. editorial opinions expressed in the magazine are not necessarily those of IBeF and IBeF does not take responsibility for the advertising content, content obtained from third parties and views expressed by any independent author/ contributor. (India Brand equity Foundation, c/o Confederation of Indian Industry, Apparel House, 5th Floor, #519-22, sector 44, Gurgaon-122003, Haryana, India; Tel: 91-124-4014060-67; Fax: 91-124-4013873/75; email:aparnadutt.sharma@ibef.org).
Sangita Thakur Varma
opinions expressed herein are of the authors and do not necessarily reflect any opinion of Nine Dot Nine mediaworx Pvt ltd., B-118 sector 2 Noida 201301, uttar Pradesh, India; Tel: 91-120-4010-999; Fax: 91-120-4010-911; email: info@9dot9.in
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august-september 2012
Contents
VolumE 03 | IssuE 03
A u g u s t - s e p t e m b e r 2 0 12
CoVE R D E s I G N: X X X X X X
16 12 16 | Engineering perfection At the 54th MSV-Brno international Engineering Fair in the Czech republic, india participates as the partner Country. We take a look at our engineering strengths on display
Please Recycle This Magazine And Remove Inserts Before Recycling
CoVER stoRy
mNC WatCh
10 | Partner in indias Power Journey: aBB Ltd

ABB has a six-decade-old relationship with india, focussed on partnering the country in its growth story
aRts & CultuRE
52 | art for now: sakshi GaLLery

indias first multilocational art gallery, is today the largest gallery space devoted to the promotion of contemporary art and young artists
Copyright published & printed by india Brand Equity Foundation (iBEF), Apparel house, 5th Floor, #519-22, Sector 44, gurgaon-122003, haryana. india NowBusiness and Economy is for private circulation only. Material in this publication may not be reproduced in any form without the written permission of iBEF.
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48 36
INNoVatIoN CoRNER
50 | With a humaN heart

A research lab with a vision to harness biomedical engineering to alleviate human pain is innovating medical devices successfully. thermo Scan is the first device among many to follow
maDE IN INDIa
46 | hero No. 1
hero MotoCorp has remained the undisputed leader of the two-wheeler market since 2001, unaffected even by the 2010 split with honda
26 20
EmERGING ENtREpRENEuRs
28 | For a Common Cause
REGulaRs
A group of friends build Commonfloor on an idea that promotes both online and offline interaction among city dwellers
sECtoRal upDatE
01 | editoriaL 04 | nationaL round-uP 12 | Microfinance 54 | tourisM uPdate 58 | BooksheLf 60 | ruraL uPdate
48
48
48
32 | ceMent: ceMentinG Growth

the cement industry is poised for another growth phase on the back of infrastructure & housing boom
35 | coMPuter PeriPheraLs: the souL of it

policy push and widening it base are the growth drivers for this sector
38 | GeMs & JeweLLery: BriLLiant ProsPects

given indian consumers penchant for jewellery, this sector only shines brighter
43 | handLooM exPorts: sPinninG success

traditional weaves with the added charm of contemporary interpretations
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Voice of A VisionAry
RouNd-up
National
Destroying a rain forest for economic gain is like burning a renaissance painting to cook a meal.
edward o Wilson (American Biologist and environmentalist)
India-China Discuss Trade Ties

set up JWG to look into investments
INDIA AND chINA held a crucial meeting of the Joint economic Group (JeG) on August 27, 2012, in new Delhi to discuss trade issues. Union Minister for commerce, industry and Textiles, Anand sharma and his chinese counterpart Jeng Deming chaired the ninth round of the high profile JeG. The eighth round of the talks was held in 2011. india and china agreed to set up a Joint Working Group (JWG) that would look into trade related issues as well as investments between the two nations. The JWG is expected to submit a report within 90 days on its findings and recommendations. china assured
Us $
DATA BriefinG
india of addressing its concerns regarding market access for its pharmaceutical and iT companies products and services. The commerce Ministers meeting is expected to bring about high level changes that will add speed and ease to boost trade ties. The chinese commerce minister is also scheduled to meet industry leaders for an interactive chat during his two-day visit. china is confident about trade prospects with india and at a joint press briefing of the two ministers post the meeting, Mr Deming was hopeful that bilateral trade between the two countries would reach the target of `56,500 crore (Us$ 100 billion) by 2015.
100
by 2015: Chinas trade target
billion
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Nat i o Nal Ro u N d - u p
They Vladimir Said iT PuTin

In a message to President Pranab Mukherjee on India's 66th Independence Day on August 15, 2012.
5 for best business outlook hotels
Hotels in India are Highly Profitable survey ranks india no.

the hotel industry in india is buoyant. in a global survey of more than 25,000 hotels worldwide conducted by travel site TripAdvisor, india ranked fifth in the world and second in Asia Pacific (APAc) for hotels with the best business outlook. The survey result, declared in August 2012, revealed some interesting findings. close to 1,500 indian hoteliers participated in the survey that found the highest percentage of respondents from india and indonesia with highly profitable businesses. While both the countries reported six per cent extremely profitable businesses, india reported 29 per cent very profitable businesses while indonesia had 38 per cent in the category. india also exhibited a positive outlook through its staffing pattern. While most other APAc countries said that they did not anticipate further recruitment in the next six months, 39 per cent of the indian respondents were positive of increasing staff. Globally too, india ranked the highest for staff turnover based on its increased recruitment.
Over the years of sovereign development your country has achieved impressive results in social-economic, industrial and scientific spheresToday India as an authoritative member of world community plays an important role in UN, SCO, BRICS, other global and regional structures.
Vladimir Putin, President, Russian Republic
reseArcH UPDATe
The clinical research organisation (CRO) market in India is growing at 11-13 per cent and registered revenues to the tune of `2683.99 crore (Us$ 485 million) in 2010-11, according to research firm frost & sullivan. The consulting firm estimates that by 2016, the market will grow to `5,534 crore (Us$ 1 billion).
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soUnD BiTes
We clearly see a potential in the Indian market... Indian market is still growing and at a pace better than many other developed parts of the world.
photos by photos.com
-Banmali Agrawala, India Region President & CEO, GE Energy
Pune, the New Business Destination

Us firms choose Pune to set up base
PuNe Is emergINg
as the an office in Bangalore and favoured destination for plans to open more across Us businesses with many the country. companies keen on expandThere are other Us coming operations in this panies like swipe Telecom Maharashtra city. The eighth and eaton that have made largest metropolis of india Pune their base. swipe, has fast emerged as an iT which is in the business and education of selling lowThe eighth hub attracting cost tablets, many overseas and eaton, a largest companies to metropolis of power solutions set up their india is at the company, are base in the city. both planning no. 7 spot on further expanThe latest comthe countrys sion in india. pany from the Us to join the Pune has also industrial swelling numemerged as a metro map. bers is taxation huge outsourcing hub with a number of expert H&r Block. business process outsourcThe global tax experts ing centres (BPo) catering with over 50 years of experience opened their corporate to the Us and european office in Pune to serve more markets. A large part of the than 8,000 clients across the BPo business that comes country. H&r Block also has to Pune is being outsourced
from the Us. According to industry estimates, the annual exports from Pune are to the tune of `30,000 crore (Us$ 5.4 billion). Market analysts say that 40-50 per cent of this export is to the Us market. Pune is today at no. 7 on the industrial metro map of india. its rise to prominence started in 2002, with large automobile giants making huge investments in the city, which had a multiplier effect. in 2007, the government set up a `60-crore Auto cluster Development and research institute, which helped Pune emerge as an auto hub with a vibrant ecosystem in india. Today, the city has become the preferred destination for investments, for both individuals and conglomerates.
To tap into the opportunities of this decade, we need new ideas and the best way of doing that is by creating successful start-ups.
-Esther Dyson, Legendary angel investor, on Indias first telecom incubator Start-Up Village in Kochi
For an economy like Indiathe more diverse you get, the more you can achieve sustained stability...
-Steve Almond, Global Chairman of Audit, Deloitte Touche Tohmatsu
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BUsiness UPDATe
inVeSTmenT
uPdaTe
India Tops Exports Growth Rate
Kolkata: Potential medical Tourism hub new medical facilities coming up

KolKAtA hAs the potential to and certain other speciality hospitals at rajarhat new Town in a bid become a major medical tourism destination in south Asia, to strengthen the states medical Debashis sen, Principal secreinfrastructre. The Tata Medical tary of the Urban Development centre for cancer research is ready Department, West Bengal, said. at rajarhat and is one of the major There is great possibility of turnhealthcare facilities in the city. A ing Kolkata into a health tourism hospital for cardiac patients is also hub for south east Asian coununder construction. tries, Bangladesh and The government has nepal, with the rapidly allotted land for the growing healthcare development of a infrastructure in the trauma care centre and city, sen said. He was school of paramedical lakh addressing the inauscience as well. it is guration of an exhibibeing hoped that with medical tourists tion and conference such state-of-the-art expected by 2025; on healthcare inframedical centres in the 24 lakh by 2020 structure and medical West Bengal, the state equipment, organised can compete as a medisource: technopak cal tourism destination by confederation in the region. of indian industry. indias traditional The Government of healthcare systems already had a West Bengal has allotted land to huge global market. now it has some upcoming ventures including chittaranjan national cancer been gaining grounds for its conventional medical care and treatinstitute, shankara nethralaya, a ment as well. global organ transplant hospital
INDIA hAs
overtaken all
of any major economy at 9.3 per cent, says the report. The positive strides in Indian exports are the result of a strategic and planned initiative undertaken by the Government of India and the exporters. Under this measure, the government provided incentives to exporters to explore new markets to offset the slowdown in their traditional markets like the US and Europe. The diversification of exports markets as well as products took the exporters to Latin America and Africa in search of new export hubs and this immensely benefited the countrys shipments.
major trading countries in the world to emerge as the country with the highest exports growth rate, according to the World Trade Report 2012 from World Trade Organisation (WTO). It beat its nearest competitor China, recording a jump of 16.1 per cent in 2011. In 2010, China was at the top with an exports growth rate of 28.4 per cent, while India was at the second place with 22 per cent growth rate. India had the fastest export growth among major traders in 2011, with shipments rising 16.1 per cent. Meanwhile, China had the second-fastest export growth
49
BUsiness TrAcKer
tea annually and is a highly quality conscious market. The festival was a part of Project 5-5-5, Tea Board Indias overseas promotion initiative, of which Khazakhstan, a leading importer, is a focus country. The country imports more Assam tea than the Darjeeling variety, with annual imports amounting to about
destination Khazakhstan for indian tea

INDIAN teA
Wah Chai!
is making its
Khazakhstan is the second largest importer of Indian tea in the CIS (Commonwealth of Independent States) region. India is the largest supplier of tea to the country with a market share of 40.9 per cent. Khazakhstan imports 28 million kg of
mark everywhere. As a part of Indias 66th Independence Day celebration, a three-day Tea Festival was organised by the Tea Board in Almaty, Khazakhstan, in August, drawing 5,000 visitors. Notably, after Russia,
` 227.46 crore
(US$ 41 million).
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india
Area
watch
Population Male Female
Population Density
Urban Population
3,287,263 sq km
1.22 billion
628.8 million
591.4 million
387 per sq km
380.214 million
Key performance indicators of the Indian economy with patterns, trends and forecasts
2012-13
40.0 35.0 30.0 25.0 20.0 15.0 10.0 5 .0 0.0 4 to 4.4 % 4.5 to 4.9 % 5.5 to 5.9 % 6 to 6.4 % 6.5 to 6.9 %
Indias Economic Outlook Projection

Fiscal Year GDP Growth CPI
Source: RBI
2008-09 7.3% 9.3%
2009-10 5.4% 5.5%
2010-11 8.5% 14.44%
2011-12 7.00% 8.87%
2012-13 6.5% 9.5%
Mean Probability Pattern of Real GdP Growth Forecasts 2013-14

Real GDP growth rate forecast for 2012-13 is revised downwards to 6.5 per cent from 7.2 per cent in the last survey. Forecasts for agricultural GDP remained unchanged at 3.0 per cent. Growth forecast for GDP of industry is revised downwards to 4.0 per cent from 6.0 per cent and growth forecast for services GDP is revised downwards to 8.0 per cent from 8.8 per cent in the last survey
7 to 7.4 %
7.5 to 7.9%
8 to 8.4%
8.5 to 8.9
9 to 9.4
9.5 to 9.9
chart 1: Year-on-Year Growth in IIP

16% 12% 8% 4%
Source: CSO
chart 2: Year-on-Year Growth in Sectoral Indices

16% 12% 8% 4% 0%
Source: CSO
0% -4% -8%
-4% -8% -12%
Ap r-1 Ju 0 ne -1 0 Au g10 Oc t-1 0 De c10 Fe b11 Ap r-1 1 Ju n11 Au g11 Oc t-1 2 De c12 Fe b12 Ap r-1 2
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Ap r-0 8 Se p08 Fe b09 Ju l-0 9 De c09 M ay -1 0 Oc t-1 0 M ar11 Au g11 Oc t-1 2 De c12 Fe b12 Ap r-1 2
Mining Manufacturing Electricity
Source: RBI survey of professional forecasters
I n d I a Watc h
chart 3: Contribution to IIP Growth in May 2012

4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% Electricity 0.6% Manufacturing 2.0% Mining -0.1% Non-durables 0.0% Durables, 1.3% Intermediate, 0.4% Basic, 1.7%
Source: CSO
chart 4: FDI and FII Inflows

10.00 8.00 6.00 4.00 2.00 0.00
No v'1 1 De c'1 1 M ar' 12 Fe b' 12 Oc t'1 1 Ja n'1 2 Ap r'1 2
FII FDI
(in USD billion)
-2.00
Monthly Trends in Wholesale Price Index-Monthly Average (% change)

7 6 5 4
Source: RBI
Key Macroeconomic Indicators

cash Reserve Ratio
7 6 5 4 3 2 1 Source: RBI
All Commodities Primary Articles Fuel Power Light & Lubricants Manufactured Goods
3 2 1 0
March 2011 April 2011 March 2012 April 2012
0
Au g20 11 Se p20 Oc 11 t-2 0 No 11 v-2 0 De 11 c20 Ja 11 n20 12 Fe b20 12 M ar20 12 Ap r-2 01 2 M ay -2 01 2 Ju n20 12
Stock Market
Sensex Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 July-12 15,534.67 17,179.64 17,714.64 17,429.96 16,218.00 17,429.48 17,490.81 %age Change -6.17 10.59 3.11 -1.61 -7% 7% 0% S&P CNX NIFTY 5125.25 5412.95 5296.35 5246.75 4924.25 5278 5229 %age Change 9.99 5.61 -2.15 -0.94
Source: RBI 9 8 7 6 5 4 3
Repo Rate and Reverse Repo Rate
-6% 7% -1%
currency Exchange Rate

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 July-12 49.69 49.15 50.86 51.50 55.74 55.42 55.52 77.94 78.15 81.45 82.06 87.56 85.25 87.23 65.11 63.81 61.38 63.58 70.10 70.89 69.56 65.17 65.22 67.88 67.80 68.89 68.81 70.31
Source: RBI
INR/USD
INR/GBP
INR/JPY
INR/EUR
2 1 0
Ju l-2 0 Au 11 g20 Se 11 p20 11 Oc t-2 0 No 11 v-2 0 De 11 c20 11 Ja n20 Fe 12 b20 12 M ar20 12 Ap r-2 01 2 M ay -2 01 2 Ju n20 12
Repo Rate Reverse Repo Rate Source: RBI
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Source: RBI
Capital, -1.0%
M N C WAtC h
ABB Limited
COMPANY DASHBOARD
Company: ABB (India) Limited Asea Brown Boveri (India) Ltd EstablishEd: 1949 loCatEd in: 49, Race Course Road, Bangalore, 560001 arEa of foCus: Power Products, Power Systems, Low Voltage Products, Process Automation, Discrete Automation nEtwork: Sales Turnover: `7,448 crore in FY11 Headcount: 10,000 Manufacturing units in India: 12
Partner in indias Power Journey

By Kamal Kumar
India and Asea Brown Boveri (ABB) Ltd go back a long way nearly six decades, to 1949. Today, the automation major is working on making the country an export hub for power equipment with a thrust on better and cost-effective technology for a sustained infrastructure growth in India.
10
august-september 2012 www.ibef.org
ndia has long been considered the land of frugal engineering. But we, as a nation, have been striving to enhance our ability to move from small improvised changes to high-value and great-impact innovation. Rapid industrialisation and economic growth not only provided us the opportunity to look for greater innovation and efficiency in technology, but in the process, made the country self-reliant in the field of research and cutting-edge innovation. MNCs like Asea Brown Boveri Ltd (ABB Ltd), a `93,480-crore (US$ 35-billion) global leader in power and automation technologies have made a significant contribution in this endeavour. ABB Ltd has been partnering the India growth story for close to six decades. The company was incorporated in 1949, as The Hindustan Electricity Company Limited, which was subsequently changed to Hindustan Brown Boveri Limited (HBB) in 1965. In 1987, post the merger of Switzerlands BBC Ltd and Swedens ASEA Ltd and pursuant to the scheme of amalgamation in 1989, HBB got its new name Asea Brown Boveri Limited. ABBs operations in India are valued at `9,397.7 crore (US$ 1.7 billion), which include 12 manufacturing facilities and an employee base of more than 10,000 people. The company has an extensive product range across segments including power systems and products, process and discrete automation and motion low-voltage products. The customer servicing encompasses 23 marketing offices, eight service centres, three logistics warehouses and a network of over 550 channel partners. ABB Indias commitment to partnering India in its forward journey finds reflection in the setting up and functioning of the Global Corporate Research Centre in Bangalore. It is the companys largest research centre anywhere in the world and accounts for 30 per cent of its R&D in process automation worldwide. ABB India believes that the potential of India as an export hub
I
I
ABB Limited
M N C WAtC h
lies underrated and underused. Bazmi R Husain, Country Manager and Managing Director of ABB Ltd, says, ABBs global plan is to make India an export hub. In fact, some equipment that ABB exports is manufactured at its India and Germany plants only. The company is now foraying into Africa and has posted employees from its India unit there. The overall export of the company is a little less than 15 per cent of the total revenue, and Husain is confident of growing it. India is expected to expand its power infrastructure substantially in the coming years. The country has an installed power generation capacity of around 200,000 megawatts (MW) and according to estimates of the International Energy Agency, India needs to invest more than `746,280 crore (US$ 135 billion) to add 600 and 1,200 gigawatt (GW) of additional power generation capacity by 2050 to provide universal access to electricity for its population. The ambitious capital expenditure projections for the power sector in the 12th Five Year Plan have spurred ABB India to step up the localisation process. In the press release announcing the Q1 (first quarter) results on May 09, 2012, Husain said: Some of our initiatives including operational excellence have helped bring significant improvement in the current market scenario. We maintain a positive outlook as we move forward with our investment plans from manufacturing lines, enhancing existing capacities, introducing new products and solutions with the use of best engineering and research and development. He maintains that the key to the Indian landscape and market lies in research. In sync with its gameplan, ABB India bagged a Power Grid Corporation of India Limited contract recently to deliver an ultra high-voltage direct current transmission system. The link will supply hydropower from northeast India to Agra in central India through a 1,700 kilometer long transmission link. The company's financial picture is also
ABBs global plan is to make India an export hub of power equipment and automation... We maintain a positive outlook as we move forward with our investment plans.
Bazmi R Husain Country Manager & MD, ABB India
looking up. Its April-June quarterly result declared on August 08, 2012, pegs net profit at `52 crore (US$ 9.40 million) on a revenue of `1,858 crore (US$ 335.74 million) for Q2 (second quarter). The company received orders worth `2,045 crore (US$ 369.93 million) in the concluding quarter whereas the order backlog stood at `9,175 crore (US$ 1.6 billion), according to the company press release. Existing global economic concerns notwithstanding, Husain, remains unfazed. While the short-term macroeconomic outlook is a concern, we remain optimistic over the long term. Opportunities will come up in the emerging sectors like smart grids, cyber security, renewable and energy efficiency solutions. It does not stop here for ABB. For, To retain our leadership position, we are continually benchmarking our internal productivity and product competitiveness for worldclass operations.
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11
MicroFinance
Rang De
Community Time: Rang De functionaries interact with the community during a field trip.
P H OTO BY b lo g. r a n g d e .o r g
Rang De India!
M
12
A young bunch of social entrepreneurs have brought a new meaning to microfinance through an eclectic mix of social media and social responsibility. By Sangita thakur Varma
era Rang De Basanti Is it an MFI? struggle for freedom which our forefathers fought, says Smita, Co-founder Rang De is not an MFI but a crowdChola, Mera Come funding platform that connects indiand Managing Trustee. A visit to the 15th August and the viduals to their rural counterparts, institutions website is a revelation. It nation rises as one to clarifies Smita. is exuberant, youthful and more like a honour its freedom So how does this model work? Rang social media marketing website than fighters. From FM radios to television De works with Micro Finance Instituone with a serious purposethat of channels all do a rewind and play out tions (MFIs) and NGOs as field partners being a bridge between young wellthese unforgettable lines enveloped heeled Indians and their rural brethren. and with communities through this in patriotism. The song has inspired network of field partners, explains Forbes India has hailed Rang De generations evoking vibrancy, youth, Smita. As a lender you can choose the as Innovation in financial inclucolour, zest and at the same time dedication to a purposefrom the critically sion, while The Economic Times calls specific entrepreneur (from those listed acclaimed film Rang De Basanti to Rang it Indias first online platform for on the website), in whose venture you De, a unique organisation engaged in microcredit. Rang De is a not for profit want to make a social investment. The making microfinance affordable. social investment platform that enables entrepreneurs are selected through a The name Rang De was chosen with you to do your bit for Indias growth by rigorous screening process and their the objective of providing a strong lending as little as `100! As Smita says, profiles with pictures are put up on the brand connect for the youth. At the Our attempt is to provide a way for website. The lenders can go on field same time, it is also a reminder of the individuals to make a difference. trips to interact with borrowers or opt
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Rang De
MicroFinance
for an audio evaluation. The borrower invite your friends to a group and evaluation provides the complete profile groups can be private or public. of the individual loanee, stating the purpose of the loan, the current status of Mission Alleviate Rang Des mission is to lower the cost his loan, the lender as well as the field of microcredit and currently provides partner associated with the borrower. loans to borrowers at interest rates that For instance, Fatik De is an eatery stall range from 5 per cent flat per annum owner in West Bengal who had taken {9 per cent APR (annual percentage a loan of `5,000 in October 2011 for rate)} to 10 per cent flat per annum (18 chairs and plates. He has paid up 76 per per cent APR), says Smita elaborating cent of the loan amount and wishes to on the Rang De story. The organisation take another loan after paying this up. was officially launched on January 26, His profile on the website includes a graph of his repayment history. Rang De ensures transparency in its operations through these various steps and with all information available on its website. You can view the profile of lenders and investors can see where all their money is being invested. Under Rang Des peer to peer investment model, an investor can lend in an individual capacity, like Siddhartha Agarwal has done. He has Smita been a Rang De social invesCo-founder and Management Trustee, Rang De tor since January 31, 2011. So far, Agarwal has invested `900 and has been paid back `566 of the loan amount. His small loan amount has impacted six women micro entrepreneurs lives in three statesVarsha Haridas, Rajani Nana and Maya Punjaram in Maharashtra, Farjana in Madhya Pradesh and Bina and Jebunessa in West Bengal. Sandhya Raman lives in Dublin, USA, and has been a Rang De social investor since January 24, 2010. She has loaned `3,10,200 and been repaid `2,34,966. Her investments have impacted 187 lives in 12 states. And there are 3,893 such social investors who have together pooled in `8.35 crore (US$ 1.5 million) into Rang Des initiatives. Another model of investment is the Rang De Group. Ramakrishna Co-founder and CEO, Rang De Here you can either join an existing group or create one,
Our efforts are aimed at reaching out to underserved communities in areas where microfinance is scarce.
The desire to do something socially relevant was always there but we did not have the financial means or knowhow to take the plunge.
2008, but the conceptualisation of and research for the initiative began in late 2006 when Prof Yunus was awarded the Nobel Peace Prize for Grameen Bank. That was their first brush with microfinance. Smita, with a masters degree in social research and some rich field experience with non profits in India and abroad, co-founded Rang De with Ramakrishna (Ram). Ram is the Chief Executive Officer of Rang De and was earlier with Vignettte Europe Limited. He is also an Ashoka Fellow. The duo began research on different models to understand the microfinance space from an Indian perspective. That was when we were drawn to the microfinance industry in India. The interest rates charged were more than 50 per cent APR. That made us pause and question: if indeed microcredit can alleviate somebody from poverty, then it should be affordable. This and the fact that individuals like ourselves were not aware about microcredit led us to start Rang De. We invested our savings to kickstart Rang De as a platform that will enable individuals to support entrepreneurs from low income households with `100 or more, Smita says of Rang Des genesis. The uniqueness of Rang De, according to Smita, lies in our stories from the fieldoriginal content that spells hope and success along with transparency at every step of our operations. Rang De is currently sharing the colours of joy in 12 states under microcredit, education and microventure loan categories. There is a unique gift card scheme that can be redeemed by the recipient and fund a social investment at Rang Dea gift that is pure happiness for the recipient.
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MicroFinance
Rang De
Wide Portfolio
Rang De does not limit itself to rural microfinance. We support low income households in rural as well as semi-urban areas. Our efforts are aimed at reaching out to underserved communities in areas where microfinance is scarce, says Smita. And education loans are popular in both these areas: Our education loans are availed by the rural and the urban households alike, she adds. Tilottma Das of Orissa is a daily wage earner who took a loan of `7,000 for her daughters board exams in April 2011 for a 12-month period and has already repaid it. Similarly, Malabika Sardar of West Bengal has also repaid the `7,000 education loan she took for her Class VII son in July 2011. Both the women are now seeking fresh loans under the category.
A Brand in the Making?

The Rang De team comprises a bunch of young, enthusiastic social entrepreneurs, many of whom joined the organisation fresh out of college; others gave up lucrative corporate jobs to be a part of this meaningful venture. Smita enlightens: We have been lucky to have a fantastic team and a great chapter network across India. We are a small team and often many of us wear multiple hats. The team members names appear among those of evaluators and field workers as well. Rang De has found many votaries. We are also supported by a network of chapter members across India and in other countries as well, says Smita. As Rang De spreads its reach, many more people are beginning to realise the advantages of its microfinancing model. We have had a steep increase in the number of organisations approaching us for field partnerships, says Smita. But how does Rang De sustain itself given its non-profit model? Explains Smita, Rang De is a non-profit organisation but we strongly believe in sus-
tainability. It gets one per cent of the interest paid by the borrower on every loan. At a significant volume of disbursal, this one per cent will be enough to sustain our costs. At this point, we rely on fund raising events and grants to make up for the deficit. The potential for microfinance is huge as the unmet need for credit has been estimated at `300,000 crore (US$ 54,063 million). With ` 8.35 crore (US$ 1.5 million) raised impacting the lives of 14, 857 borrowers, Rang De has many more people waiting for their share of the colours of joy it promises to spread. The need of the hour is to innovate and create new models that will address the needs of low income households in a holistic way. It must also be responsible and borrower friendly credit, the model which many microfinance institutions are adopting, says Smita. Rang De is showing the way; the repayment rate of the organisation is 99.18 per cent and its outstanding portfolio of loan is `2.21 crore (US$ 0.39 million). Little wonder, there are many star ambassadors willing to
With `83.5 million raised impacting the lives of 14,857 borrowers, Rang De has many more people waiting for their share of the colours of joy it promises to spread.
don the colours of Rang De and spread its joy filmmaker Nagesh Kukunoor, singer and musician Raghu Dixit and veteran actress Waheeda Rehman. Rang De has close to 15,000 likes on its Facebook page. Is young India hooked on to social responsibility? Smita isnt too sure: Facebook can be a great starting point for the uninitiated to learn about Rang De and is a great medium to reach out to the youth. Getting likes on the Facebook page is fantastic but it may not be the best indicator of active engagement and involvement as change makers. Many of Rang Des active social investors are not on Facebook, but as long as there are likes there is hope that they be turned into invest. Rang De India!
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winning the world with quality

3 Japan Quality Medals. 21 Deming Medals. The Japan Union of Scientists and Engineers lauds Indias quality manufacturing processes and skills.
For updated news-analysis on Indian business and economy Log on to www.ibef.org
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India is the partner country at the prestigious MSV International Engineering Fair 2012 at brno, the Czech Republic from September 10-14. We provide you a preview of the countrys engineering strengths that will be on display. by SANGItA thAkuR VARMA
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! Brand ! ? ? !? Indi
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s of January 2012, India boasted of more than 160,000 cost-effective innovations and ideas and over 100,000 technology projects designed by approximately 300,000 students from more than 500 colleges across the country.
The Government of India has declared 2010-20 as the Decade of Innovation, for which it won the Hermes Award for the Best Humanistic Policy of Innovation. The Forbes magazine has listed Indian conglomerates Hindustan Unilever (HUL) and Bharat Heavy Electricals (BHEL) among the top 10 innovative companies in the world. India ranks sixth in GE's Annual Global Innovation Barometer, a list of the most innovative countries in the world. Indias ranking on the innovation efficiency index, one of the prominent sub-indices of the Global Innovation Index (GII), also jumped from 101st in 2010 to 9th in 2011. Looking at the above few indices, one thing is clearIndia has arrived on the global engineering stage with clockwork precision and an eye for detail. The above indices are just a few pointers to what the nation has been quietly working at for the last 66 years since Independence in the vast and varied field of engineering. It has built a monolithic state-of-the-art infrastructure of which the BandraWorli Sea Link (BWSL) and the recently inaugurated Yamuna Expressway are a fine example.
A
Aman Chadha, Chairman EEPC, in conversation with Sangita Thakur Varma, says he is confident of Indias place under the sun based purely on its quality parameters.
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Q: How is the Indian engineering industry perceived globally?

Aman Chadha: The perception of Indian engineering industry is changing for the better. You have to remember that India engineering is competing with engineering giants like China and Germany. As such, we are improving every year. To give you a flavour: in 1955 when EEPC India was born, we exported `55.34 crore (US$ 10 million) worth of goods to handful of countries primarily in Western Europe and the USA. Today, our exports are in the range of `33,2040 crore (US$ 60 billion), which is six thousand times the 1955 figure, and to over 180 countries. Of course, we need to move further since we are still heavily concentrated around a few regions, but we are making progress and are diversifying. In 2004-05, EU and the USA accounted for nearly 40 per cent of our exports. Now, it accounts for 31 per cent. ASEAN, Latin American countries, South Asia, Africa and West Asia are increasingly becoming important markets for our engineering goods. In fact, when we exhibit our products in hitherto untapped countries, we are told that they wish to do business with us purely on grounds of the quality of our products. Regarding western standards, let me say that all regions have their technical standards and we meet those standards. Further, globally there is an attempt to
Advantage India From being an importer of refined engineering goods to manufacturing for both domestic and international markets, the country has taken giant strides. The requirements of
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harmonise standards and our Bureau of Indian Standards (BIS) is ensuring that we match up to global standards. We are also in the process of creating a Brand India Engineering and the India Shows that we have been organising are taking us towards that path.
so that we can move up the ladder quickly when trade bounces back.
Q: Which products are in demand and what

is Indias share in the global market? Iron and steel and its products, automobiles, shipping products and industrial machinery for a range of industries like dairy account for 55 per cent of our total engineering exports. They have a share of more than 1.5 per cent in world exports for these categories of products.
Q: What would you say is Indias expertise

in this vast field called engineering? The engineering industry is the largest segment of the overall Indian industrial sector. It accounts for three per cent of Indias GDP. In 2009-10, as per the latest Annual Survey of Industries data, the total Net Value Added by the engineering industry in India was
Q: What is the size of Indian engineering

export and the industrys outlook? Indias engineering exports in 2011-12 accounted for a fifth of the country's total exports. It, therefore, has the largest share of Indias merchandise exports in goods. The engineering industry in India accounts for 27 per cent of the total factories in the organised sector and 29 per cent of total organised employment. Clearly in a globally integrated world, our exports too have been affected this fiscal. But let me also point out that in 2009-10, our exports dropped by 19 per cent only to claw back in 2010-11. I am fairly certain as trade revives, so would our exports. We must therefore use this opportunity to clean up our areas of weaknesses, increase our competitiveness through better housekeeping, inventory management and investing in product development
Q: Wherein are we looking to increase our

export foothold? We are trying to diversify to Latin America, ASEAN, Africa and also South Asia, in countries where there is potential. Countries like Iran, Pakistan, Myanmar, Japan, among others, are some emerging countries where we are looking to increase our foothold.
`304,370 crore (US$ 55 billion). Engineering

goods enjoy 30.5 per cent weight in the Index of Industrial Production (IIP); 29.9 per cent share of total investment; and 62.8 per cent share in foreign collaborations. The important groups within the engineering industry include machinery & instruments, primary and semi-finished iron & steel, steel bars & rods, non-ferrous metals, electronic goods and project exports. India has a well-developed and diversified industrial machinery/capital base capable of manufacturing the entire range of industrial machinery. The industry has also managed to successfully develop advanced manufacturing technology over the years. Among the developing countries, India is a major exporter of heavy and light engineering goods, producing a wide range of items. The bulk of capital goods required for power projects, fertiliser, cement, steel and petrochemical plants and mining equipment are made in India. The country also produces construction machinery, equipment for irrigation projects, diesel engines, tractors, transport vehicles, cotton textile and sugar mill machinery. The engineering sector has been growing, driven by growth in end user industries.
Q: How do you promote MSMEs' global

competitiveness? Catering to MSME (Micro, Small, Medium Enterprises) is our prime responsibility since this sector requires handholding the most. Under the various market promotional assistance schemes of the government, we participate in several exhibitions around the world. Annually, we hold anything between 30 to 40 exhibitions catering to 34 engineering segments that we deal with. We also have our brand INDEE, representing the wide range of general engineering segments, which we hold abroad and the recently launched India Engineering Sourcing Show (IESS), the second edition of which will be held in Mumbai in March 2013.
Q: Has India developed indigenous expertise in automotive engineering? Yes, certainly. Auto and auto components accounted for 17-18 per cent of Indias total engineering exports in the last couple of years and are a frontline exporting segment. According to the Automotive Mission Plan 2006-2016,
Aman Chadha Chairman, EEPC India
the automotive industry is expected to make up 10.4 per cent of the Indian GDP by 2016.
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nation-building that stipulate high capacity creation in core sectors like infrastructure, power, mining, oil and gas, steel, automotives and consumer durables, have ensured a high and steady demand for engineering goods. Additionally, India with a comparative advantage in manufacturing costs due to lower design, research and labour costs, economies of scale and availability of skilled manpower, is expanding and strengthening its backbone of engineering.
Empowering Power A primary growth driver for engineering, the power sector in India, is on a high growth trajectory, pushing the demand for engineering goods. According to The Energy And Resources Insti-
tutes (TERI) National Energy Map of India: Technology Vision 2030, Indias commercial energy requirement in the BAU (business as usual) scenario is estimated to increase 7.5 times over a 30-year period from 2001-2031 from a level of 285 MTOE (million tonnes of oil equivalent) in 2001 to 2,123 MTOE in 2031. Indias energy requirement increased at a CAGR of 7.1 per cent to 830.6 billion units in FY10 from 631.6 billion units in FY06. The primary energy consumption increased at a CAGR of 8.3 per cent from 381.4 MTOE to 524.2 MTOE during the same period. The International Energy Agency estimates that India will add 600 -1200 GW of additional power generating capacity by 2050. To fulfil the burgeoning demand,
the energy sector needs to augment its capacity. Capacity addition for power generation increased to 10,210 MW in FY11. Indias expertise in production of electrical machinery and equipment is world renowned. The International Yearbook of Industrial Statistics 2010 of the United Nations Industrial Development Organisation (UNIDO) ranked India among the top 10 markets worldwide in terms of production of electrical machinery and equipment. India has an installed capacity of over 18,000 MW per annum for manufacturing steam, hydro and industrial turbines. In FY11, India exported `49,252.6 crore (US$ 8.9 billion) worth of nuclear reactors, boilers, machinery and mechanical appliances, registering a year-on-year growth rate of
Window of Opportunities
MSV-Brno International Engineering Fair being held in the Czech Republic will provide India the platform to showcase its engineering strength. As the Partner Country, Brand India will hold centre stage in a field where it has proved its mettle.
India is participating as the partner country at the MSV International Engineering Fair at Brno Exhibition Centre, Brno, the Czech Republic, from September 10-14, 2012. The Czech Republic is the gateway to Central and East European markets. MSV-International Engineering Fair is a leading industrial trade fair in Central Europe offering a platform for concurrent presence of key domains of the manufacturing industry. Organised by BVV Trade Fairs Brno, the Show marks the presence of top of the line exhibitors and visitors from across Europe and provides an opportunity for new business contacts, investment decisions, knowledge transfer, etc. The 2012 Show is the 54th edition of the event. Close to 150 companies from small, medium and large sectors will be participating from India to explore potential opportunities. The show will also facilitate joint ventures, technology transfer, marketing arrangements as well as people-to-people contact between the two countries. The India Show will present Brand India Engineering to the discerning audience of Central Europe. Engineering in India is on the upswing and as we look towards new markets a high profile event like the Brno fair provides the right pitch. Central Europe is doing quite well economically. The Czech Republic has been a predominantly engineeringbased economy. India imports a lot of Czech machinery. Says Aman Chadha, Chairman, EEPC India, It is now how we improve our relationship to become mutually beneficial. With the technology between the two countries and the cost advantage that India has, together we should get into more joint ventures. I hope this exhibition will open the doors for more foreign investment from the Czech Republic. It will be a win-win situation for both the parties: a) they can produce their products at a lower cost and compete with other countries; b) they have a readymade captive market in India and; c) a lot of machinery is required in India that we don't manufacture and import. Hence import substitution will also happen. Central Europe in general and the Czech Republic in particular offer immense opportunities for bilateral trade ties. In fact, India enjoys a Double Taxation Avoidance Agreement with the Czech Republic. MSV-Brno 2012 will also offer Indian exhibitors opportunities to showcase their products at thematic exhibitions running concurrently.
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24.7 per cent. Exports of transformers and switchgears have increased at a CAGR of 27 per cent and 28 per cent, respectively. The Indian electrical machinery and equipment industry grew at a CAGR of 24 per cent between 2008 and 2010 and generated revenues to the tune of `133,922.8 crore (US$ 24.2 billion) in FY10, according to estimates of the Department of Heavy Industry, Government of India (GOI). It forecasts that the domestic market for generation equipment such as boilers, turbines, generators, etc., will expand to `138,350 166,020 crore (US$ 2530 billion) at a CAGR of 16 per cent. The Transmission & Distribution (T&D) Equipment Industry is expected to expand at a CAGR of 14 per cent to `387,380-415,050 crore (US$
7075 billion) by FY22. The transformers market is estimated to be worth `61338.6 crore (US$ 11.1)billion growing at a CAGR of 13.7 per cent between FY11 and FY22.
Infrastructure Boom The infrastructure index comprises industries in sectors such as electricity, coal, cement, steel, crude and petroleum refinery products. The index rose to 261.8 in FY11 at a growth rate of 4.6 per cent over FY10. The government is providing a fillip to the infrastructure sector through various policy measures and incentives. In FY 2011-12, the government allocated funds worth `257,331 crore (US$ 46.5 billion) to the sector, tax-free bonds worth `35,971 crore (US$ 6.5 billion) and debt
funds, and a comprehensive policy for developing public-private partnership projects. The government further enhanced the tax-free bond limit to `166,020 crore (US$ 30 billion) in FY 201213. It has also established an infrastructure debt fund worth `9,961.2 crore (US$ 1.8 billion). (Source: Invest India). Surface transport is one of the primary segments in the infrastructure sector. The growing emphasis on this sector in India is driving growth in the engineering industry. The government has allocated a fund of `24,000 crore (US$ 4 billion) for the development of rural road projects in FY 2012-13. During the 11th Five Year Plan period, India added 5,345 Km (as of 2011) to its highways. The Ministry of Road
The 8th International Machine Tools Exhibition is a platform where Indian participants with technology and manufacturing expertise can woo the European companies. Indias machine tools portfolio is vast and varied. The 14th International Foundry Fair, 21st International Welding Engineering Fair, 4th International Surface Technology Fair and the 3rd International Plastics, Rubber and Composites Fair will together provide a varied but focussed platform for showcasing Indias engineering talent. The larger MSV-Brno Fair focus will be on materials and components for mechanical engineering, machine tools, forming tools, precision and hand operated tools, mining, metallurgical and ceramic glass engineering, drives, hydraulics and pneumatics, cooling and air conditioning technology, electronics, automation, measuring technology, heavy current electrical engineering, plastics, rubber and chemical engineering among other things. Indias thrust areas at the show include equipment, machinery, automotive parts and trailers and transportation, basic iron and steel, equipment and tools for agriculture and forestry, rolled and drawn products of iron and steel, machinery and parts for metallurgy and electrical machinery
and tools. MSV-Brno is expected to benefit the Micro, Small and Medium Enterprises (MSMEs) of both the countries with technology transfer, tie-ups and new markets. Science and technology will benefit as India and the Czech Republic have a cooperation agreement which includes biotechnology, nanotechnology and life sciences in its ambit. The heavy engineering industry in India will find opportunities in machine, engineering, mining, heavy and general machine building iron and steel products, metal working electronics and transport equipment. The Czech Republic is a traditional tea-drinking nation and offers immense potential for export of tea. Opportunities for state governments to collaborate in various fields to bring in investment and the Indian Railways can also be explored. The MSV-Brno Fair, in short, is a vital step in Indias long-term trade relationship with the Czech Republicthe window to the vast untapped potential of central Europe.
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It's Brand India Now

which Gripwell is participating.
Gripwell India has seen the history of India unfolding. Established in 1948, in November 2011, it completed 63 years of
Indian engineering industry and his expectations from MSV-Brno in
Gunit S Rana, Managing Director, Gripwell shares his insights on the
Gunit S Rana Managing Director, Gripwell India
pean manufacturers who have chosen to move production to developing countries, in their own design & brands. At Gripwell, we are producing tools for some renowned international brands, with technical input and collaboration from them. Having said that, a large quantity of Indian tools are sold at opening price points and as promotional products, where the emphasis is more on price than on quality. As from any other exhibition that Gripwell takes part in, our expectations from the International Engineering Fair, Brno, are to establish new contacts and hopefully make new customers. For us: One new customer = Good Show Two new customers = Great Show We will also be looking at the possibility
an eventful existence, a period which saw it emerge as a reputable name in hand tools. Gripwell is exporting to all major markets all over the world with its own office and warehouse in Australia. The engineering export industry of India has come a long way since Gripwell first explored the Middle East Markets in the early 1960s. The past 15 years have been especially significant in terms of improvements in quality, production, packaging as well as in the a global perception of the India brand image. Speaking particularly for the hand tool sector, there has been tremendous improvement in product qualIndia has a good image and our products are well accepted all over the world. Indian factories are today producing tools as original equipment for American & Euro-
2010-11. According to an IMaCS (ICRA Management Consulting Services) report, the industry contributes 12 per cent to the total manufacturing activity, which is about 15 per cent of the countrys gross domestic product (GDP). In FY11, the Planning Commission valued the capital goods and engineering sector at about `383,094.4 crore (US$ 69,225.6 million). The cumulative FDI inflows into the engineering industry in FY10-11 stood at `61,980.8 crore (US$ 11.2 billion) with international players such as Cummins, Asea Brown Bovari (ABB) and Alfa Laval entering the fray. The industry also witnessed a rise in merger and acquisition (M&A) activities with players like Diamond Power Infrastructure Ltd, Gaji Mercantile, Yash Birla Group HBL Power Systems, etc., forging tie-ups. The government, meanwhile, has been developing several special economic zones (SEZ) across the country to provide the right impetus to the engineering industry. The Delhi Mumbai Industrial Corridor (DMIC) is another step in this direction which is sure to boost the sector further. There are also over 100 clusters in India that are hubs of engineering activity. The prominent among them are located at Chennai, Faridabad, Gurgaon, Jamshedpur, Bengaluru, Nagpur, Tiruchirapalli, Ghaziabad and Bhopal.
ity, finish, packaging, deliveries and service.
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of productions and technical collaborations, with buy back arrangements and are open to possible collaboration across the engineering spectrum with companies keen to move their production out of Europe.
Transport is now in the process of rolling out projects worth `664,080 crore (US$ 120 billion) by 2016 with a view to attract foreign investors to its ambitious highways building programme.
Policy Push The Government of India provides a strong policy framework to the engineering industry through various initiatives. The engineering and capital
goods industry is de-licenced and 100 per cent Foreign Direct Investment (FDI) is permitted in the sector. The government has removed tariff protection on capital goods and has reduced customs duty on a range of equipment. The reforms have led to improved performance of the industry, making it internationally competitive. Consequently, Indias capital goods industry grew at a CAGR of 14 per cent in FY
The Build The largest in India, the engineering industry is vast and diverse. However, it can broadly be categorised into heavy and light engineering sectors. The Indian engineering industry has the distinction of producing almost all major capital goods domestically. The heavy engineering industry accounts for a majority of the goods produced in India, and is the benchmark of high-end, high-quality products. The technology competencies involved and the capital investments required are very high and hence this segment is less fragmented. The heavy engineering segment comprises
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heavy electrical, heavy engineering and machine tools and automotive sectors.
Heavy Bolt The heavy electrical and engineering goods segments are the key contributors to the capital goods sector. In FY11, the heavy electrical and power equipment sector contributed almost 40 per cent to the capital goods sector, while engineering goods contributed about 37 per cent. The Planning Commission of India expects that the production of capital goods will grow at a CAGR of 16.8 per cent to take the sector to `6,81,000 crore (Source: Firstcall Research). India has the capability to manufacture boilers, one of the key segments of the heavy electrical engineering sector, with super critical parameters of up to 1000 MW unit size. Secretariat for Industrial Assistance (SIA) valued the boiler segment at `19,893.6 crore (US$ 3.6 billion), clocking a CAGR of 29.5 per cent between FY09 and FY11. The FDI inflows into boilers and steam generating plants surged by 318 per cent at `231.3 crore (US$ 41.8 million) in March 2012 from `55.34 crore (US$ 10 million) in March 2011. The Department of Heavy Industry forecasts that the domestic market for generation equipment such as boilers, turbines and generators will expand to `138,650166,020 crore (US$ 2530 billion), at a CAGR of 16 per cent. The expertise of Indias heavy electrical engineering extends to the manufacture of high value turbines and generator sets of up to 7,000 MW per annum capacity. AC generator manufacturers in India produce generators ranging from 0.5 KVA to 25,000 KVA and above. The SIA valued the electric generators segment at `3,010 crore (US$ 540.3 million) in FY11, which grew at a CAGR of 20.5 per cent between FY09 and FY11. Foreign Direct Investment (FDI) in the electrical equipment sector increased 27 per cent to `15,495.2 crore (US$ 2.8 billion) in March 2012 from
Auto Component Market in India

120.0 100.0 80.0 60.0 40.0 20.0 0
26.5 23.0 30.1 113.0 Turnover (US$ billion) 39.9 66.3
FY2008 FY2009 FY2010 FY2011 FY2015 FY2021

Electrical parts, 9%
Equipment, 10% Others, 7%
Engine parts, 31% Suspension & braking parts, 12%
Source: Automotive Component Manufacturers

Body and chassis, 12% Drive transmission & steering parts, 19%
Association of India; ImaCS Research
`13,281.6 crore (US$ 2.4 billion) in March 2011. The technological advancements in the heavy electrical sector have ensured that Indian goods keep abreast with global trends. In the key heavy electrical segment of switchgear and control gear, the industry has smoothly shifted production from conventional relays to digital relays. The Department of Heavy Industry estimates the switchgear market to be approximately at `45,378.8 crore (US$ 8.2 billion) by FY22, growing at a CAGR of 13.7 per cent.
Heavy Engineering, High Value Machine tools, textile machinery, cement machinery, sugar, rubber, metallurgical, mining and dairy machinery and material handling equipment make up the key segments of the heavy engineering sector. The machine tools segment underpins all the other indus-
tries by providing the basic machinery that determines the industrys competitiveness. It ranked 7th in machine tool consumption spending at `13,835 crore (US$ 2.5 billion) in FY12 clocking a year-on-year growth of 15.4 per cent. The production jumped to 18.6 per cent to reach `4,981.7 crore (US$ 900.2 million) in FY12, up from `4,402.8 crore (US$ 795.6 million) in FY11. What is amazing is that the top 20 players contribute a whopping 70 per cent of the total industry turnover. Machine tools exports also surged ahead to `208.6 crore (US$ 37.7 million) in FY12, up from `164.9 crore (US$ 29.8 million) in FY11, a notable year-on-year growth of 32.7 per cent. Indian Machine Tools Manufacturers Association (IMTMA) forecasts that the Indian machine tools industry will register a spectacular CAGR of 15 per cent during FY12-17. Domestic demand
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of nearly `13,835 crore (US$ 2.5 billion) is projected to grow by an imposing 30 per cent over FY13, according to IMTMA. India is expected to be among the top 10 global producers of machine tools by FY17, up from the 13th position in FY 12, while the share of exports is expected to rise to 20 per cent of the total production by FY17, up from 4.2 per cent in FY12. The textile machinery industry comprises more than 600 units manufacturing complete machinery and over 850 units that produce parts and accessories. According to Textile Machinery Manufacturers Association (TMMA), the textile machinery industry received a capital investment of about `8,301 crore (US$ 1.5 billion) and had an installed capacity of `9961.2 crore (US$ 1.8 billion) in FY11. Textile machinery exports in FY11 were valued at `797.95 crore (US$ 144.4 million). India accounts for almost 20 per cent of the worlds spindleage and 42 per cent of the worlds loomage. As per Department of Heavy Industry estimates, the textile machinery industry registered a CAGR of 15 per cent over 2008-2011.
Aiming for the Skies India has been diligently building its capacity in the aeronautics space. According to a Frost & Sullivan estimate, the Indian aerospace industry, worth `11549.34 crore (US$ 2.09 billion) in 2010, would clock a CAGR of around 16 per cent over 20102015. Bharat Earth Movers Limited (BEML), a central government owned entity, is setting up a new aerospace complex to manufacture aircraft components and assemble helicopters and small jets. Hindustan Aeronautics Limited (HAL) is Indias leading aircraft manufacturer, while Tata Advanced Materials is the largest manufacturer of personnel armour products and exporter of composite parts for spacecraft and aircraft. As per ASSOCHAM, aerospace and defence exports grew by 18 per cent during the first three quarters of FY12
and are expected to reach `11,068 crore (US$ 2 billion) over the entire fiscal. The locomotive equipment industry in India is set to get a boost with the commissioning of a new rail coach manufacturing facility in Palakkad, Kerala, by 2015. The other two coach factories are located in Kapurthala and Chennai. Apart from these India has three locomotive, and two railway wheels and axels factories. In FY11, India exported `423.3 crore (US$ 76.5 million) worth of railway locomotives, fixtures and parts, registering a year-on-year growth rate of 105.8 per cent. The material handling equipment sector has nearly 50 organised players manufacturing a range of equipment like coal, ore and ash handling plants. The industrys exports stood at `2,219.1 crore (US$ 401 million) during FY10. In the case of sugar machinery, domestic manufacturers hold the sway in the global space and are manufacturing state-of-theart sugar plants that have crushing capacities of up to 10,000 tonnes/ day. Net exports from the industrial machinery sector are expected to reach `107,580.9 crore (US$ 19.44 billion) by FY14.
Eastman Impex Managing Director, Jagdeep Singal shares his views on automotive engineering exports
Jagdeep Singal Managing Director, Eastman Impex
Bright Outlook
Eastman Impex was incepted in 1996 and since then has become one of the most respectable and trusted suppliers to the global market of auto parts and light engineering goods. The company has enjoyed a steady and stable annual growth rate and the groups annual turnover during the financial year 201011 was of `360.49 crore (US$ 65 million). Its clients include Mercedes-Benz, Cummins, Caterpillar, John Deere, Fiat, Volkswagen and General Motors. Managing Director Jagdeep Singal says that 'Made in India' established its mark on the globe for its quality benchmark. We have implemented QMS standards and have updated technology in our plants that make our infrastructure a preferred source for all global OEMs. Eastmans major export markets, says Singal, are in Europe. We are exporting to Germany, Hungary, Poland, Ireland and the UK, besides the USA, Brazil and Mexico. The share of automotives in Eastmans export basket is 35 per cent. Singal says, R&D and the ability to provide complete engineering solutions makes our company stand at par with other global companies. Also, our work force is dynamic, always ready to meet customer requirement consistently. The outlook for the coming year in the automotive engineering sector is very promising, Singal forecasts. Talking about the MSV Brno Fair, Singal says, We will be looking out for possibilities like joint ventures, buy back, and technology tie-ups for increasing our growth.
In Auto Mode With one of the largest and fastest growing automotive industries in the world, India with an annual production of about 11 million vehicles a year, is ranked among the top 10 in the passenger car and commercial vehicle industry globally, and is among the top five exporters in Asia. The forecasts for the sector are buoyant. The Society of Indian Automobile Manufacturers (SIAM) predicts that annual vehicle sales will increase to five million by 2015 and over nine million by 2020. The industry boasts of international players such as Ford, Hyundai, Renault, Nissan and BMW, Audi, Fiat, General Motors, Mercedes Benz, Skoda and Volkswagen. There are three automobile and
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component clusters in Tamil Nadu, Maharashtra and Haryana that account for 60 per cent of the countrys automotive exports. According to SME Rating Agency of India Limited, the Indian auto component industry offers distinct cost and quality advantages to original equipment manufacturers. The competitive cost advantages of up to 25-30 per cent accrue mainly due to the availability of low cost labour, skilled manpower, availability of raw material and quality control. The Indian auto components industry produces around 20,000 different automotive components. It is no wonder then, that India is the destination of choice for more than 500 global players. The auto components industry is a preferred destination for investors, attracting capital investments of `66,891 crore (US$ 12.0 billion) in FY11 (21.0 per cent CAGR during FY0511). The sector grew at a CAGR of 14.6 per cent between FY07 and FY11, while exports grew at a CAGR of 11 per cent. India exports auto components to Europe, North America and Asia, and is now looking at Africa and South America as new markets. The auto components industry is set to continue its growth trajectory, with turnover expected to increase at a high CAGR of 11.0 per cent to `625,342 crore (US$ 113.0 billion) during FY1121. The outlook for exports, expected to expand at a CAGR of 18.8 per cent over FY1121, is also positive. FY13 is expected to be a windfall year for the industry with growth projected at 8.010.0 per cent and exports likely to rise 15.0 per cent.
major Indian tractor manufacturer, exports TAFE and Massey Ferguson brands of tractors. VST Tillers export to Asia, Middle East, Europe and the US. Several foreign companies have entered into dealership arrangements with Indian companies. As of February 2011, 89 patent applications had been filed for irrigation; 72 for plant growth related machinery and 232 for postharvest processing. Twenty patents have been granted for irrigation, 42 for plant growth related machinery and 80 for post-harvest processing. Innovations in irrigation relate to micro-irrigation, drippers, sprinklers, emitters and hoses and automation in irrigation. Plant growth machinery innovations include multi-row planters, multi-purpose farm weeding, levelling and sowing equipment, and hydroponics based greenhouse application. Post-harvest innovations include mechanised uniform spreading of tea leaves, technology for
seed de-linting in cotton, rolling mills, and cutting and peeling sugarcane.
Light Engineering, Heavy Demand The light engineering industry in India straddles a vast segment manufacturing a variety of goods that are essential inputs in the capital goods/heavy engineering industries. The demand for light engineering industry products is hence dependent on the growth of the principal end-user segments such as power, automotive, electrical, mining, oil and gas, etc. The industry is labour intensive and employs a large number of skilled and semi-skilled workers. The sub segments of this industry include roller bearing industry, welding equipment and consumables, medical and surgical equipment, ferrous casting, process control instruments, seamless steel pipes and tubes, electrical resistance welded steel pipes and tubes, submerged arcs, welded pipes, indus-
Thrust Product-Export from India to Czech (2010)

Electric Power Machinery Automobile and Automobile Components Iron & Steel, Steel Products
50 40 30 20 10 0
1 1 1 1
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Machinery Instruments Electric and Home Appliances Castings Machine Tools Small and Cutting Tools
Agriculture In the agricultural equipment segment, the Indian tractor industry is the worlds largest and accounts for onethird of global production. More than 250,000 tractors are manufactured every year by 13 manufacturers. Mahindra & Mahindra, a leading tractor manufacturer in India, exports tractors to the US and Europe. TAFE, another
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Drastic Change in Manufacturing

CD Shah, Chairman & Managing Director, VNS Switchgear, speaks of the cutting-edge changes in Indian engineering.
VNS Switchgear was incepted in the year 2004. The company is a joint venture between S-Team Switchgear Private Limited, Singapore and Nylex Group of India. VNS manufactures and exports earthing accessories, control panel boards, digital panel meters, test terminal blocks and others as per specific standards. Its export hubs include Italy, Bahrain, UAE, Brazil, Jordan, Sri Lanka, Singapore, Malaysia etc. The product portfolio comprises control panels, metal enclosures, cable
CD Shah Chairman & Managing Director, VNS Switchgear
is expected to be worth `24,958.3 crore (US$ 4.51 billion) by 2016, and is expected to grow at a CAGR of 5.6 per cent over 20102016. In FY10, Frost & Sullivan estimated the process transmitters market at `931.9 crore (US$ 168.4 million) and projected that the market would grow at a CAGR greater than 13 per cent until FY16. The expertise of Indian manufacturers is such that more than 25 per cent of the Indian manufacturers can implement the entire instrumentation system, including the software required by process industries.
trays, cable ducts and metal components. Chairman and Managing Director, CD Shah, says, We export at least three to four containers a month. Shah says that India has seen a drastic change in terms of manufacturing. The new-age machines and technologies have improved our capability in manufacturing of quality engineering goods. Today, India is exporting to several developed countries, while many foreign companies have invested in India. The country is turning into a major manufacturing facility hub and this proves that we have really made our mark on the globe. Shah has positive expectations from the MSV-Brno Fair and is confident of our quality products attracting the right attention.
trial fasteners, steel forging, bicycle, etc. (source: business.gov.in)
Medical Miracle India is the fourth-largest market in Asia and is among the global top 20 markets for medical equipment and supplies. According to KPMG, the medical devices market in India, which was worth`14,367.6 crore (US$ 2.6 billion) in 2011, is set to expand at a CAGR of 13.4 per cent between 2011 and 2016, to reach `27,670 crore (US$ 5 billion). Deloitte estimates that the medical electronics industry will witness a greater than six-fold expansion between 2010 and 2020 to reach around `35,971
crore (US$ 6.5 billion). Meanwhile, the medical technology industry in India is slated to grow from `14,941.8 crore (US$ 2.7 billion) in 2008 to ` 77,476 crore (US$ 14 billion) by 2020, according to PricewaterhouseCoopers (PwC). India is among the top five preferred sources for syringes, needles, IV cannulae/catheters, contraceptives, surgical blades and gloves. As of 2012, India's medical device industry was valued at about `16,602 crore (US$ 3 billion), with a projected growth rate of 12-16 per cent over the next five years.
Robust Future The success story of the engineering industry in India is cast in steel. India is the fourth largest producer of steel. Now its steel industrialists are expanding their global footprints with Tata acquiring the Corus Group and Mittal Steel acquiring Arcelor. Jindal Steel and Power Limited was ranked the second highest value creator in the world by Boston Consulting Group (BCG) in September 2010. The company also received the Forbes Asia's 'Fabulous 50' international award in the same year. India also has the fifth largest bauxite reserve in the world. Besides natural reserves, the country has a reservoir of skilled manpower which makes the industry internationally competitive. Nearly 95 per cent of Indian manufacturers are either ISO certified or seeking certification and comply with international standards such as Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001), Occupational Health & Safety Management Systems (OHSAS 18001) and Total Quality Management (TQM). The government too is doing its best to provide a sustaining environment for the industrys continued growth. India certainly has engineered a bright future.
(Sources: Brand Engineering Facts-Aranca; The
Precision Control The process control market in India
Engineering Industry Factbook-June 2012, IMaCS; SME Rating Agency Limited)
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E mE rging E ntrE prE nE urs
Commonfloors
H
28
ow many floors are there in your skyscraper? Which floor do you live on? Who else lives on your floor? Who is your next door neighbour? Do you know any one on the floor below or above yours? To the chagrin of most apartment dwellers, after definitive answers to the first two, nobody generally has any clue to the rest. So when I fired my first salvo at 27-year-old at Sumit Jain, Chief Executive Officer of Commonfloor.com: What is uncommon in Commonfloor?, the very commonality of the concept threw me. The basic idea of Commonfloor was to
become a single platform for all apartment stakeholders, make sure everyone is on the same floorowners, tenants, association members, buyers, sellers, property managers. It is a common channel through which people can communicate, Jain explains the idea behind his company. But before slotting Commonfloor into the genre of a property dealer, pause a whileit is the sum of all the bits and pieces that make up the property market and residents community needs. Sumit calls it a 360 degree holistic approach to apartment dwelling. Ironically, the idea for Indias first real estate portal dedicated to apartments
and gated communities evolved literally from ground zero, the garage, where Sumit and his core team of IITians Lalit Mangal, Rahul Gupta, Manoj Singh, Mukesh Ghatiya (all IIT Roorkee alumni) and Vikas Malpani (computer science graduate from VTU Belgaum)set out to build this unique company, brick by brick, in 2007. They were all barely 23 and knew nothing about business or management. What they had in plenty was the audacious confidence of youth.
Building Blocks At that time, apartments and gated communities were coming up in a big way
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as an alternative way of living in large cities. But the Indian middle classes, used to living in close knit mohalla (colony) communities, did not know how to perpetuate the same community living concept amid largely unknown groups of apartment dwellers. The result was a rapidly isolated family gated behind its own doorway. Commonfloor chose to break this mould. It was a concept that rose above the conventional buy-sell-rent property portal and became a one-stop solution for all residential needsright from finding an apartment to suit your requirements and budget to connecting
For a
ommon
ause
you to the community residing within the gated complex to managing the gated communities needs. Today, it has the vastest registered communities base, maximum listings and is Indias largest apartment portal.
a humane thought prompts a group of techies to build a common platform on an uncommon ideausing technology to promote human connect among apartment dwellers. By Sangita thakur varma
Delivering Difference Commonfloor does not intend to create any competition or kill any competition. What we are doing is entirely different, says Jain. The budding entrepreneurs have a simple vision inspired by their own homely backgrounds. We intend to build a one-destination portal around homes, he states. The value
proposition of Commonfloor lies in delivering all the various services in a cohesive manner on a single platform. Many other companies in the space can help you find a house and you can create groups on any social media network, explains Sumit, adding, But nobody delivers complete value. The concept surprisingly has its root in the cultural fabric of India and is not a western import. There was a company in the West doing something similar but we found out much later, says Sumit. It also failed to garner much popular interest in western society, he adds. Indians are by nature social and
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PhotograPhs by s raDhaKrIshNa
Commonfloors
seek company. But rapid urbanisation has somehow impacted this urge, says Jain. People now only come together if there is an issue against the builder or some sewage problem in the building or water shortage. Commonfloor understands peoples inherent need to connect while at the same time respecting their requirements of space.
Technology that Binds The techies together developed proprietary software calling it Apartment Management Software (AMS), which looks at an apartment as a domain and delivers services such as accounting, property management, vendor management, etc. Marketing the technology in its simplest form in 2007, they have worked closely with communities to add value to their services, and won their trust, says Jain. Explaining the working of the system, Jain says, A plethora of issues are filed by residents that need immediate attention. To the office-bearer, say president of a Resident Welfare Association, hard pressed for time, our technology allows to see at a glance what issue is being faced by perhaps 20 flat owners. It helps take collective action, call in a vendor and fix the problem. The feature rich apartment management software is fast gaining currency and its popularity can be gauged from the fact that in Delhi alone more than 1,000 RWAs are using it. For those looking for an apartment or property, Commonfloor is an ideal place to start. It has research processes and online forums to help arrive at an informed decision. A prospective buyer just needs to spend some time browsing through the articles, taking advice and looking at potential property and projects, shortlist viable ones and discuss them with buyers in forums. Once a decision has been taken, the price can be negotiated with the builder (Commonfloor does not assist in this). A new property owner then joins the group of owners on Commonfloor and thus a community is formed, bringing in bargaining power. For services, residents put out notices on Commonfloor, say for
apartment Management software is a private system and every apartment community has a private Commonfloor only visible to members of that forum.
security, modular kitchen, maid service, direct to home, etc. This can be done through groups or RWAs that can bargain for discounts with vendors. Commonfloor has a vendor connect feature to facilitate this. A property maintenance feature on Commonfloor assists RWAs in their various functions. Discussing the software that propels all this, Jain says, The technology behind AMS is Lampspecusing a Linux operating system, an apache web server, MySQL database and PHP language. It is a multitier architecture. AMS is a private system and every apartment community has a private commonfloor that is only visible to people who are part of that forum. Our tagline is Window to your neighbourhood, so if you are sitting inside, you can see your neighbourhood and if you are outside, you can actually talk to an apartment, explains Jain. The startup already has a presence in 120 cities and has 35,000 listed communities. We are very confident about our future. We have sufficient funds for the next two years, says Sumit. Commonfloor is growing at 100 per cent each quarter in terms of revenue since the last two quarters. The traffic in the last five years has doubled too. In fact, Jain says, We were 20-people team five months back; we are 150-people team now. In terms of revenue also, earlier we used to grow 250 per cent annually, but now it is more than 100 per cent every quarter, and we should continue it for at least three-four quarters. And the beauty of Commonfloor is its simple revenue model. We believe business is a byproduct of the usage and we promote infomercials or the lead-connect model, says Jain. Hence, Commonfloor services are free for users but vendors are charged a fee for connecting them to users. Their database of almost 40,000 gated communities is invaluable for business. But finally, the young technopreneurs are aiming for a humane vision of society: We like decoding because we are engineers. But we feel technology should be for the layman. Commonfloor enables bonding offline. That is the real impact, says Jain. Commonfloor will certainly find many of the high-rise crowd on the same page.
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FEATurES InSIdE
update
Sectoral
Computer Peripherals: Government provides a coordinated push Pg 35 Gems & Jewellery: Its shining bright with designs a cut above the rest Pg 38 Handloom Exports: An industry that weaves its unique story of tradition and modern Pg 41
PHOTOs: PHOTOs.cOm
he cement sector in India has been one consistent player. In fact, India is the second largest producer of and market for cement in the world after China. At the end of FY 10-11, the cement industry, with a production capacity of 323 million tonnes (MT), had already outpaced major industries in the countrys growth story. As per the estimates of the Cement Manufacturers Association (CMA), by 2020, cement production is slated to almost double to 550 MT. According to the Confederation of Indian Industries (CII), cement is among the fastest growing sectors in India. The production capacity of the sector grew by more than 40 per cent in the last five years. Industry watchers estimate that in the next three years the sector will grow more than 35 per cent. In 2011, there were approximately 137 large and 365 mini cement plants producing different varieties of cement.
CEMEnT
Cementing Growth
Led by the infrastructure and housing boom, the cement industry eyes double digit growth.
Sangita thakur Varma
Wide Variety Indias cement industry is not just vast but also varied. It is recognised the worldover for the different types of cement that it manufacturesall with the Indian hallmark of quality, that is the Bureau of Indian Standards (BIS). The Indian cement industry thus caters to all segments with its vast portmanteau of products. Ordinary Portland Cement: The most important type of cement earlier, OPC as it is known, is further classified into three categories33 Grade, 43Grade and 53Grade. OPC is not used to that extent today and has been overtaken by
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s e c to r al u pdat e
Portland Pozzolana Cement (PPC). Rapid Hardening Cement: As the name implies, this type hardens rapidly and also develops high strength at an earlier stage than OPC. It is used primarily in pre-fabricated concrete construction works and in road repair. Sulphate Resisting Cement: It has an advantage over other types due to its resistance to sulphate and finds wide use in construction work done in marine conditions, foundations beneath soil containing sulphate compounds and sewage treatment works. Portland Slag Cement: Portland cement and Ground Granulated Blast Slag are mixed to obtain this type, which is resistant to chemical attacks. It finds usage in water retaining structures or where the structure is vulnerable to any form of chemical attack. Super Sulphated Cement: This variety has a percentage of granulated slag and a higher sulphate resistance and fineness than OPC. It is used in foundation works (or sea works). Portland Pozzolana Cement: PPC is the most popular variety of cement for general construction and is obtained by mixing OPC with suitable Pozzolana at a certain temperature. Pozzolana has properties similar to those of cement. Other types being manufatured include coloured cement manufactured by adding pigments to OPC or PPC obtained from limestone found only near Jodhpur in the country; low heat cement that prevents cracks in structure; hydrophobic cement manufactured by grinding together OPC clinker with substances such as oleic acid or stearic acid; masonry cement used in masonry works; oil well cement used in construction of oil wells; concrete sleeper grade cement manufactured as per specifications of the Indian railways and high alumina cement.
housing, accounting for 60-70 per cent of the total domestic demand; infrastructure for 17 per cent; commercial construction for 11 per cent; and the industrial sector for 9 per cent of the total demand. Currently, real estate and infrastructure are the two principal sectors driving the industrys journey
InVeStment deStInatIon
Housing Boom:All the current
economic indices are favourable for a high octane growth in the cement sector. Increasing per capita income, nuclear families, rapid urbanisation and government stimulus to various rural and affordable housing schemes will all promote housing needs and provide the stimulus for growth of the cement industry.
low consumption:The
growth potential of the industry is immense. With the current per capita consumption of cement much lower than the world averageit is around 148 kg per capita in 2012 when the world average stands at over 350 kg per capitathe field is large for both existing and new players. china leads with the highest at 660 kg per capita followed by Japan with 631 kg per capita; the corresponding figure in France is 447 kg.
up the value chain. The importance of the domestic housing sector as the primary consumer of cement cannot be overemphasised. India boasts of one of the fastest growing real estate markets in the world. The FY12-13 Budget took concrete measures to create adequate funding mechanisms and provide a further boost to the sector. under the 12th Five Year Plan (20122017), the total projected infrastructure investment is `40,99,240 (uS$ 740.74 billion). The estimated construction opportunity in the 12th Plan period under various airports, roads and highways, ports, and power projects is worth `553,000 crore (uS$ 1 trillion). The demand for cement is likely to keep the medium to long-term growth momentum of the sector at a steady pace of 10 per cent (ACC Annual report). In fact, the industry grew at a remarkable pace of 9 to 10 per cent in the last decade and it is expected that production will grow at a CAGr of 12 per cent between FY 11-14 as players increase output.
construction Flurry:In the

12th Five Year Plan, the outlay under construction is estimated to go up to 9 per cent of the Gross Domestic Product (GDP) amounting to approximately
`553,000 crore (Us$ 1 trillion). currently sized to be `19,90,800 crore (Us$ 360
billion), the Indian construction market is set to replace Japan as the third largest, after china and the Us, by 2020. The enhanced construction activity will lead to double-digit growth in the cement industry.
What drives cement Growth? There are four key sectors in India boosting the demand for cement
Booster dose The Government of India, understanding the role that cement plays in building the economy, decontrolled the industry from price and distribution on March 1, 1989 and on July 25, 1991, it was also de-licensed. The government has also adopted several policy measures that provided the impetus for growth like waiving custom duty on non-coking coal in the Budget of 2012-13. non-coking coal, one of the main raw materials for cement production, is now exempt from basic customs duty (earlier at 5 per cent). According to Crisil, a global analytical company providing ratings, research and risk policy advisory services, this move will have a positive impact of 1-1.5 per cent on the cement industrys operating profit. The industry meets close to one-fourth of its total coal requirement through imported coal. In a major boost, the government has increased allocation to the infra-
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Cement
structure sector. In FY 2011-12, it allocated funds worth `257,145 crore (uS$ 46.5 billion) to the sector. Other sops include tax-free bonds worth `35,945 crore (uS$ 6.5 billion), debt funds and a comprehensive policy to promote public-private partnership (PPP) projects. The government further enhanced the tax-free bond limit to `165,900 crore (uS$ 30 billion) in FY 2012-13 and established an infrastructure debt fund worth `9,954 crore (uS$ 1.8 billion). Another incentive is the northeast package, namely the north East Industrial and Investment Policy, 2007, under which the government approved fiscal incentives and various concessions to boost infrastructure development in the region. The Highway development Fund is an ambitious programme targeted to attract foreign investors. under it, the Ministry of road Transport plans to roll out projects worth `663,600 crore (uS$ 120 billion) by 2016 for building highways. under the rural road development Plan, a fund of `24,000 crore (uS$ 4.34 billion) has been allocated for rural road projects in FY 2012-13. Keeping in view its status as a key infrastructure element, the Government of India keeps a close watch on the performance and prices of the cement industry. The constraints are reviewed in Infrastructure Coordination Committee meetings held in the Cabinet Secretariat. The Committee on Infrastructure also reviews the industrys performance regularly.
ogy. Continuous technological upgradations and adoption of new ones have kept the industry from obsolescence. Since cement manufacturing is highly energy intensive, the industry players are upgrading and setting up state-ofthe-art energy efficient plants. Plants are running successfully with alternate sources of fuel such as pet coke and fuel derived from waste. India is second only to Japan in recycling industrial waste generated in the manufacture of cement. The CII says that Indian companies are already consuming more than 50 per cent of
cement cluSterS
The cement producing clusters in India evolved due to the proximity of limestone mines in the area. They are:
reduce energy utilisation by at least four per cent. The industry is now keen to consolidate its green footsteps and ensure sustainable development. Confederation of Indian Industry (CII) and Cement Manufacturers Association (CMA) organises an annual event devoted to raise awareness towards the cause. In its eighth edition, Green Cementech, held in May 2012, adopted several measures to speed up the Indian cement industrys green makeover. Cement manufacturers in the country have to commit `1,500 crore (uS$ 271.44 million) in order to turn their processes more green by 2015. Indian manufacturers are already following stringent quality parameters and comply with all regulatory requirements like the Bureau of Energy Efficiency.
nalgonda in central Andhra Pradesh Satna in Madhya Pradesh chanderia in south Rajasthan Gulbarga in north Karnataka and east Andhra Pradesh Jawad and neemuch in Madhya Pradesh chandrapur in north Andhra Pradesh and Maharashtra Bilaspur in Chattisgarh Yerraguntla in south Andhra Pradesh
In Sync with technology The Indian cement industry is keeping abreast of the latest technological advancements in the world. It follows stringent quality control, efficient power and fuel consumption, environment-friendly regulations and latest technology. Currently, it is close to achieving the best productivity parameters with 93 per cent of total production capacity using modern and eco-friendly dry-process technol-
the recyclable fly ash that is generated by the thermal power plants. The three Rs of environment protection reduce, reuse, recycleare already being implemented in the industry as manufacturers adopt processes utilising alternative energy sources like municipal solid and pharma wastes. India is also inching towards becoming an ideal thermal and electrical energy consumption state. It achieved energy consumption level of 667 kcal/ kg clinker and 68 kWh/t cement, a close second to Japan which consumes 650 kcal/kg clinker and 65 kWh/t cement. The sector further aims to
Bright outlook The cyclical nature of the cement industry is a blessing, as any downturn is but a grey cloud that soon blows over. In fact, some industry analysts estimate that production would reach 480 MT by 2017. The reason for the positive forecast lies in the low per capita consumption of cement in the country, which at 148 kg, is very low compared to the world average. Seeing this vast potential, while the existing majors are increasing installed capacity, new players, especially transnational companies, are all set to enter the fray. Industry players invested `50,000 crore (uS$ 9.04 billion) to add capacities of 150 million tonnes in the last plan (2007-12). As per projections in the 12th Five Year Plan, the cement sector needs to raise its capacity to 480 MT by 2017 to meet the rising requirement for the commodity. An increase in capacity by 30 MT is on the anvil by FY13, and another 22 MT in FY 14.
(Source: Cemweekss India Cement Sector Sentiment Survey 2012; Invest India; Cementpedia and secondary research)
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Computer
Peripherals: The Soul of IT
COMPuTEr PErIPHErALS
The computer peripherals industry is riding high on the back of the ever widening IT base in India as also a slew of government incentives.
Sangita thakur Varma with inputS from S ojha
he computer peripherals industry is on a high growth trajectory piggybacking the impressive success of the Indian information technology industry. A sector that thrives on inventions, the peripherals industry has witnessed stable demand as customers crave newer and better products with each anticipated launch.
product portfolio
Input, Output and Input/Output (I/O) devices make up the computer peripherals market. Input devices include card readers, tape readers, keyboards, digitisers and pointing devices like the mouse, the light pen, etc. Output devices comprise printers (impact and non-impact), plotters and monitors; terminals and auxiliary memory devices such as tape drives, disk drives and floppy drives make up the I/O devices.
Buoyant Scenario
The Indian IT-BPO (Business Process Outsourcing) industry achieved a growth of 14.7 per cent in 2011-12 over 2010-11, marking a landmark year in its history. The aggregate revenue notched up by the sector in the year stood at `558,530 crore (uS$ 101 billion), as
per the Electronics and Information Technology Annual report 2011-12, of the Ministry of Communications and Information Technology, department of Electronics and Information Technology, Government of India. With peripherals accounting for 60-70 per cent of the total value of a
computer system, it is apparent that any growth in the parent industry has a direct impact on the peripherals industry. Even in the relatively new field of e-tailing in India, peripherals and computer accessories contributed the highest36 per cent amounting to `560 crore (uS$ 100.9 million)to its
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PHOTO: PHOTOs.cOm
Computer
total revenues in 2011, according to the digital Commerce report of Internet and Mobile Association of India. The industry too is confident. Sabyasachi Patra, Executive director, Manufacturers Association of Information Technology (MAIT) says With the rising PC penetration in India, the consumer demand for computer peripherals is bound to grow over the coming years. Add to it the spurt in mobile devices like smartphones and tablets, the PC peripherals market is all set for a boom, he points out. And the IT hardware market in India continues to expand at a fast clip. The main driver for this is IT adoption by key sectors like telecom, banking, financial services and insurance, ITeS, education, small office/home office (SOHO), manufacturing verticals, small and medium enterprises (SMEs) and households. Further, e-governance and uId (unique Identification) initiatives of the government have given the much-needed fillip to peripherals such as webcams, adds Sabyasachi.
market. The government is now giving a heavy thrust to domestic manufacturing of computer peripherals and recently came out with the policy on Preferential Market Access, which insists on products with indigenous content of at least 30 per cent, informs Patra. under the new rules, local value addition also has to be increased from five per cent every year reaching a maximum of 45 per cent over the next five years. The national Telecom Policy 2012 meanwhile will focus on strengthening indigenous manufacture of telecom products.
policy push
The government has geared up to provide the push, recognising the strategic and economic importance of electronics hardware manufacturing. The draft national Policy on Electronics (nPE), released on October 3, 2011, is a roadmap for the development of the sector and steps are being taken to attract investment in the industry. The nPE estimated that by 2020, the electronics systems design and manufacturing industry will reach a turnover of `2219.2 crore (uS$ 400 billion). The Economic Survey released in March 2012 had estimated that the electronics hardware production in the country would grow by 27.6 per cent in 2011-12 to cross a revenue of `18,3084 crore (uS$ 33 billion). Another spur is the policy announcement regarding Electronic Manufacturing Clusters and Modified Special Incentive Package Scheme (MSIPS) which was unanimously welcomed by all stakeholders.
With the rising PC penetration in India, the consumer demand for computer peripherals is bound to grow over the coming years.
Sabyasachi patra Executive Director, manufacturers Association of Information Technology (mAIT)
manufacturing methodology
The domestic peripherals industry accounts for about 30 per cent of the production, while the remaining 70 per cent is dominated by foreign players. Licences are issued to Indian manufacturers who have licensing agreements for technology. India manufactures a variety of computer peripherals including dot matrix printers, line printers, daisy wheel printers, terminals, monitors, keyboards, digitisers, magnetic ink character recognisers (MICr), floppy disc and hard disc drives and cartridge tape drives (CTd). Computer peripherals manufacturing involves several layers comprising assembly and sub-assembly of various components. These components include plastic, electrical, mechanical, electromechanical and electronic parts. In most cases, the components are proprietary ensuring longevity for the component industry manufacturers. The rate of obsolescence in the industry is extremely high given its innovative character and this keeps demand levels high. For example, informs Patra, A very high degree of value addition (to the tune of 65 per cent) has been achieved in the manufacturing of the dot-matrix printers. TVS electronics and WeP Peripherals, the top two leaders in dot-matrix printer manufacturing in India, account for close to 70 per cent of the dot-matrix market.
The Cabinet approval of the `10,000 crore package (uS$ 1.8 billion) to promote manufacturing in the electronic system design and manufacturing (ESdM) sector will address the huge demand-supply gap and also create five lakh jobs over the next five years. The MSIPS would act as an incentive for relocation of units from abroad. It would make India an attractive destination for foreign firms for setting up their r&d and manufacturing facilities. The taxation benefits under MSIPS will also act as a magnet to the Indian
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Computer
Since the industry is still largely dependent on imports, there is huge opportunity for indigenisation of manufacturing and technology. With increasing automation of processes and assembly and adoption of Surface Mounted Technology (SMT) and Application Specific ICs (ASICs), India is ready to enter the third phase of component evolution, so far dominated by Japan.
uptrend for all Computer peripherals is an exciting market in India with demand for computers rising phenomenally. The market is growing at a CAGr of 20-30 per cent driven by a huge PC base. In a report, independent research firm International data Corporation (IdC) estimated that a total of 10.48 million PCs had been shipped in CY 2011 (January-december), reflecting a six per cent year-on-year growth over 2010. In the first quarter of 2012, according to Gartner Inc, the total desk-based and mobile PC market in India was nearly 2.8 million units. In the Indian PC market shipments for the second quarter, April-June 2012 stood at 2.86 million units, a year on year growth of 15.7 per cent and 8.6 per cent over the previous quarter. Based on the market sentiments, IdC forecasts that the personal computer sales in India will continue to grow in the coming quarter, as there would be festive season buying in the country. In the 11th Five Year Plan, the government recognised the importance of electronics manufacturing for the countrys development given its manufacturing competitiveness. In the monitors and projectors segment there has been a sea change in design and aesthetics. Bulky, square shaped monitors have transitioned into sleek LCds in sizes ranging up to 24 inches. While the preference for small screen size laptops grows, the 15.6 screen size in desktop monitors has seen a decline. Yet there was a 19 per cent growth in the standalone monitor market in FY11 with total revenues of `2,624 crore (uS$ 474.8 million); 3d
monitors and LEds are the next big thing on the Indian consumers horizon. In the projector market segment too, India is overturning popular global market sentimentsgrowing at 60 per cent against the global trend of 20 per cent. In 2011, the market size of projectors was around 240,000 units and it is likely to cross 275,000 units in 2012 with analysts expecting the market to grow by 18 per cent annually in the next three years from its current level in 2012. The Indian motherboard market too is buoyant with market leaders like Foxconn achieving 200 per cent growth in motherboard sales in FY11-12. It has been selling approximately 20,000 motherboards per month according to a company press release dated August 01, 2012. The total size of the motherboard market was estimated to be around 3.23.5 million in 2011, as per projections by IdC, worth around `1,000 crore (uS$
Fact FIle
Industry growth in 2011-12: 14.7 per cent Aggregate revenue stood at
`558,530 crore (Us$ 101 billion) Growth expected by 2015: `4,480

crore (Us$ 810.13 million) size of computer peripherals in 2011: `1,500-2,000 crore (Us$ 271.24 to 361.66 million) market size of projectors in 2011: 240,000 units market size of motherboards in 2011: 3.2-3.5 million units Growth of storage market in 2011: 10-15 per cent
180.83 million). Meanwhile, the consumer storage market witnessed unprecedented growth in 2011 at a rate of 10-15 per cent. According to IdC, the global market for Secure digital (Sd) Memory Cards is expected to reach `117,789 crore (uS$ 21.3 billion) by the year 2018. research firm netscribes in its Storage Market India 2012 report states that the storage market in India will attain a CAGr of 13 per cent during 2011-16. According to Indian Market research Bureau (IMrB), growth in printer sales doubled in the last five years (2006-11). Laser printers saw the highest demand among consumers in these five years and witnessed a surge of over 155 per cent. Inkjet printers are an equal favourite of Indian consumers and showed an increase of over 120 per cent in sales in five years; consumption of doT Matrix printers remained stagnant. As consumer numbers grow and demand for better designs and performance rises, players in the peripherals space are a happy lot. Mukesh Singh, Proprietor, Headway Informatics in the peripheral hub of the national capital, nehru Place, new delhi, is a dealer of computer hardware. Giving an overview of the demand scenario, he says: The growth of the peripherals market in the last three-four years has been remarkable in the country. Earlier customers preferred branded readymade PCs or laptops. now, they go for assembled ones. This change in preference has translated into increased demand for peripherals in the market. His picture of the Indian peripherals consumer is that of a price conscious yet product savvy buyer. Majority of customers are still brand conscious. The brand preference depends upon the product a consumer buys. For instance, for a microprocessor, they rely on Intel and for printers, it must be an HP, Singh enlightens. Buzzing with activity, the peripherals industry is poised to take centre stage in the electronics space in India.
(The story is based on secondary research.)
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Gems & Jewellery
GEMS & JEWELLErY
Brilliant Prospects
Charu Bahri.
Changing consumer preferences bring out the lustre of the gems and jewellery sector, attracting more players to the shine fest.
n a country where jewellery never loses its sheen, the fortunes of the gems and jewellery industry cannot but look up. Periods of slow demand are mere blips in a trajectory that moves steadily north. demand for gold, the frontrunner segment, has been growing at 13 per cent over the last decade and projections are bright on the horizon.
domestic Bliss
Associated Chambers of Commerce and Industry of India (ASSOCHAM) valued the domestic market for gems and jewellery at about `152,185 crore (uS$ 27.5 billion) last year. A staggering 964 tonnes of gold was imported to meet this demand, notes Sunil Jindal, Managing director, SrS Jewells, a retailer of hallmark jewellery. In short, the gems and jewellery growth story is steady. Buying precious metals is always seen as a safe investment in India. There is no setback in the jewellery market, says rajesh Agarwal, director, Akash Ganga Jewellers. demand has dipped in terms of grammage but not in ticket size. Customers are purchasing jewellery of lesser grammage to make up for the high prices, says Sandeep Kulhalli, Vice President, Sales & Marketing, Tanishq. Increasing purchasing parity is a prime driver of demand across metros and mofussil towns. Whereas consumers in smaller cities continue to demand traditional jewellery, radi-
cal changes in demand in urban areas are redefining the countrys jewellery retail landscape. Close to 300,000 traditional neighbourhood jewellers make up the unorganised sector which dominates the scene with a 96 per cent market share. Large brands comprising organised jewellery retail presently account for barely four per cent of the overall market. But increasing urbanisa-
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Gems & Jewellery
tion and changing demographics are setting the stage for domestic and international brands to capture a bigger share of the pie.
Brand Bonanza demand for branded retail jewellery is growing on the back of increasing consumer sophistication, better services, wider choices, premium quality products, attractive exchange policies, media influences, etc. According to CArE research, industry stalwarts Gitanjali Gems and Tribhovandas Bhimji Zaveri Ltd (TBZ) have witnessed a CAGr of close to 30 per cent over the last five years. With two-fifths of its sales coming from the domestic market, Gitanjali has notched a CAGr of over 50 per cent in the last three years alone. The sectors bright prospects are pulling in new players. reliance has jumped onto the bandwagon with its own jewellery retail format, reliance Jewels. Some retailers are adopting the shop-in-shop format. In a bid to keep up with the leaders, small and independent jewellers are now organising themselves and expanding in size to share a common brand identity and marketing strategy. Intensifying competition has prompted frontrunner retailers such as Titan, TBZ, rosy Blue Group, Gitanjali Gems and rajesh Exports to invest in brand-building exercises to spur the next round of growth. now that leading brands have reached a critical mass in top tier cities and state capitals, they are concentrating on expanding to Tier II and Tier III cities where there is a lack of organised players, observes revati Kasture, General Manager, CArE research. Agarwal feels that brands entering smaller towns like Meerut, his base, will have to contend with highly price-conscious buyers. Products that appeal to consumers in metros can also be sold in small towns as long as the marketing strategy is tailored to justify the high price, he says. emerging trends Favourable trends in consumer preferences are doing their own bit to spur sales of organised retailers. Traditional heavy gold sets used to enjoy nine-tenth of the demand. now, as the market grows more fashion conscious, studded jewellery with diamonds and coloured precious and semiprecious stones, is gaining ground with consumers. Organised retailers of jewellery address this wearable jewellery segment better than conventional jewellers.
urban consumers exposed to western lifestyles, young adults, and working women are emerging as the consumer segments to reckon with. This lot is becoming bolder and more experimental with designs and cuts. Fusion jewellerya blend of traditional designs and contemporary stylesis a growing fad among women, says Jindal. Wellheeled men desirous of buying jewellery for themselves are being wooed too. Buyers in the 20 to 40 age group are spurring sales of platinum jewellery as well. Statistics put out by the Platinum Guild International (India) show that the number of platinum jewellery outlets increased from 12 to over 300 in the last decade. It predicts this number will triple in the near future. Earlier gold jewellery was seen as a storehouse of value, but today, changing preferences have seen a growing number of takers for larger diamonds as investment. Preeti Jain of Jewels by Preeti believes that the media is playing a key role in spreading awareness about the investment potential of diamonds and thereby, pushing acceptance for this
India is now emerging as a market for larger diamonds, starting from five to over 100 carats.
Shushmul maheshwari cEO, RNcOs
precious stone. Marketing initiatives of major diamond producers, retailers and industry bodies are also portraying diamonds as exotic as well as affordable. India is now emerging as a market for larger diamonds, starting from five to over 100 carats, says Shushmul Maheshwari, CEO, rnCOS, an industry research company. A salient trend is the emergence of the coloured diamonds market. High net worth individuals are demanding pink and yellow coloured diamonds, he adds. Women especially look for light gold jewellery studded with heavy diamonds. The precious metal is the lesser ingredient while the diamond has become bigger and of a superior quality, observes Jindal. Burgeoning demand has enhanced the scope for vendors of all sizes and breeds. While larger chains pursue mass
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Gems & Jewellery
Now that leading brands have reached a critical mass in top tier cities and state capitals, they are concentrating on expanding to Tier II and Tier III cities where there is a lack of organised players.
revati Kasture General manager, cARE Research
acceptance, solo players are carving a niche for themselves in the personalised and signature jewellery market. Consumers flush with funds appreciate the exclusivity and one-on-one attention that a dedicated designer can offer them, says Jain.
such promising destinations, most of which boast of sizable migrant communities from the sub-continent. Indians, Pakistanis and Sri Lankans residing abroad are big buyers of ethnic Indian jewellery. not for nothing is the Indian gems and jewellery sector a leading foreign exchange earner. Cutting and polishing a one carat diamond costs `555.40 (uS$10) in India, `944.65 (uS$ 17) in China and `8306 (uS$ 150) in Belgium. Indias significant price advantage makes it the worlds largest diamond cutting and polishing centre, cutting and polishing nine-tenths of the worlds diamonds. Most of these units are located in Surat, a diamond processing hub contributing over four-fifth of the countrys diamond processing revenues. Overall low diamond production costs, mainly because of the ample supply of low cost labour, assure retailers of healthy margins in international markets. nor is there a dearth of inexpensive craftsmen skilled in jewellery design. According to the national Skill development Corporation and IMaCS (ICrA Management Consulting Services), the gems and jewellery industry is slated to double its workforce from about 3.4 to 8 million employees by 2022. Much of this requirement would be for trained professionals with specialised skills capable of meeting the rising domestic demand for innovative jewellery. The Gem & Jewellery Export Promotion Council (GJEPC) promoted Indian Institute of Gems & Jewellery is helping build the skills most in demand, including jewellery design, refining, model making, jewellery manufacturing, CAd/CAM, gemmology and diamond grading. With the launch of a third branch in Gujarat following centres in Mumbai, the privately run Indian Institute of Jewellery is pitching itself as a pan India player aiming at bridging the gap between the supply and demand for trained manpower.
Future Focus
The Indian gems and jewellery sector is uniquely positioned to offer a blend of modern machine-made and traditional handmade jewellery. Capitalising on these strengths would help the industry move up the value chain in the global jewellery market. up until this June, CArE research shows that export of gold jewellery, which is a value added category, witnessed a growth of 47 per cent. The government has also extended support to the industry. Measures such as the introduction of duty drawback facilities, rules to speed up the clearance of import and export consignments containing jewellery and gems, interest subvention of two per cent to labour intensive export sectors and signing up to the Kimberley Process Certification Scheme that promotes conflict-free diamonds are helping boost global uptake of diamonds processed in India. Continued efforts by all stakeholders are bound to add to the sheen of the gems and jewellery industry.
Growing exports Business is brisk in export-oriented gems and jewellery special economic zones (SEZs) and parks in Mumbai, Surat, Hyderabad, Vishakapatnam and Chennai. Gems and jewellery contributed about one-seventh of the countrys total export earnings in 2011. Exports from Manikanchan, an SEZ in West Bengal crossed the `10,000 crore-mark (uS$ 1.8 billion) for the first time, up a quarter over 2011. Gold prices have slipped back in 2012, but the SEZ occupants are hopeful of maintaining the good run on the back of rising demand in new markets. With demand shrinking in traditional export strongholds, notably, the uS, uK, Canada and in recent months China and Hong Kong, players are focussing on improving the offtake in existing markets with greater potential and on developing new markets. The Gulf countries, Saudi Arabia, Turkey and Singapore are a few
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Handloom
HAndLOOM
Spinning Success
With spinning demand for its widening array of products in distant lands, weaving novelty is the essence of the Indian handloom tradition.
Charu Bahri
ncredible designs, unique fibres and to-die-for products define the handloom sector that has pride of place in the Indian fabric milieu. The sector stands apart not only for the exquisiteness of its produce but also for its significant contribution to the national economy. Handlooms labour intensive character makes it the second largest employer after agriculture. It accounts for about a fifth of the total cloth produced in the country and around a tenth of the textile exports. Europe and the uS are the two biggest global markets for the Indian handloom industry. About 30 per cent of han-
dloom exports are to the uS and 10 per cent to European countries. While there may be a slowdown in demand from Europe, the rising demand from the uS is likely to make up for any loss on this score. This year, handloom exports are estimated to touch `2,000 crore (uS$ 363 million).
product diversity With its origins in traditional handloom weaving and hand processing, the handloom textile industry has expanded to produce a range of modern fabrics and made-ups. Today, handloom production covers a broad spectrum,
from fabrics and made-ups for regular use to ornamental fabrics like Madras muslin, brocades, chintzes, phulkari, etc. Made-ups include bed linen, table linen, bath linen, furnishings, rugs, etc. Product diversity ensures that handloom exporters have a variety of sectors to specialise in. It also gives them the opportunity to offset sluggish demand in one segment with another. For Arrnita Handloom Exports in West Bengal, it is their scarves and stoles that are wooing markets overseas; on the other hand, south Indiabased Cannanore Handloom Exports finds increasing demand for its madeups. India has major handloom centres across the length and breadth of the country, each region with its own traditional speciality. Large centres of handloom weaving include Amristar, Jaipur, Benares, Lucknow and Tanda in the north; Bhopal, Gwalior, Indore, nagpur and Aurangabad in central India; Baroda, Mehsana, Ahmedabad and Surat in the west; Machlipattanam and Murshidabad in the east and Kanchipuram, Madurai, Salem, Tanjore and Tiruchirapalii in south India. Handloom fabrics include Khadi, which is completely handmadehand woven with hand spun yarn, as well as fabric that is partially hand-processed hand-woven with mill spun yarn. Arnab roy, CEO, Arrnita Handloom Exports, believes that the inherent characteristics
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Handloom
of wholly handmade products not only give this segment a unique identity but also guarantee its future success. Traditional hand-processed products are creations born of a rich heritage of unparalleled craftsmanship. Such intricate workmanship cannot be replicated on sophisticated looms, a fact that protects them from any major slide in demand, he says. The handloom segment is also largely unaffected by popular business considerations. Exporters of such products are open to minimal orders, which suits owners of overseas niche outlets stock-
are continuously innovating and experimenting across regional weaves and fibres to come up with unique products to woo a wider consumer base. Players are reinventing product lines to stay relevant to overseas buyers preferences and with innovative design and product range keeping buyers interest alive as they go along opening up new market segments. We experiment with colour schemes, patterns, weaves, combinations of different yarns like tussar, jute, wool, silk and cotton, and so on. The idea is to present buyers a new face of the handloom sector every season,
printed and jacquard handloom rugs. In recent years, he has been instrumental in successfully developing an overseas market for bath mats and hand woven rugs. This has in turn attracted new customers. Vij has also seen success in developing a new handloom market in Malta. Popular export destinations today include the uS, Canada, Europe, Japan, Indonesia, some southern African countries and West Asia.
arnab roy, cEO, Arrnita Handloom Exports
Exports of handloom products are open to minimal orders which suits owners of overseas niche outlets stocking hand-processed handlooms. market demand too is inelastic...
the sector has seen a tenfold increase in performance in the past few years. new technological capabilities are helping exporters...
ranjith Kumar, managing Partner, cannanore Handloom
ing hand processed handlooms. Market demand for these products is mostly inelastic because it stems from high-end clients. In contrast, overseas mass retailers are typically buyers of hand-woven products of mill spun yarn, adds roy.
reinventing Fortunes However, Indian handloom exporters are not content to rest on the countrys rich legacy of handloom weaves. They
shares roy. Fibre combinations with greater scope overseas are wool, silk and khadi, that require good quality apparel grade wool and superior varieties of raw silk. Flexibility is indeed a major strength of the handloom industry enabling it to swiftly alter production and cater to differentiated markets. Prem Sagar Vij, President of the Panipat Exporters Association, was the first to introduce
modernising production Another plus point of the Indian handloom sector is its quick adoption of advanced technology and the increase in installed capacity. The government is also keen to boost the sector. It provides financial and other support to establish new looms as well as modernise existing ones. Four mega handloom clusters have been set up at Varanasi (uttar Pradesh), Sivasagar (Assam), Virudhunagar (Tamil nadu) and Murshidabad (West Bengal). Handloom clusters at Chirala and Madhvaram in Andhra Pradesh, each with about 5,000 looms, are being developed in a holistic manner. Fifty two more handloom clusters in the state, each encompassing 300 to 500 looms, are being developed under the Integrated Handlooms development Scheme. According to ranjith Kumar, Managing Partner of Cannanore Handloom Exports, The sector has seen a tenfold increase in performance in the past few years. new technological capabilities are helping exporters keep up with changing preferences overseas. With Computer Aided designing, Computer Colour Matching and Computer Aided Manufacturing, manufacturers can carefully review designs and colour schemes prior to and during manufacturing to ensure compatibility with the demands of buyers abroad. To provide design and colour support, the Handloom Export Promotion Council (HEPC) recently set up design studios in various parts of the country and also brings out colour catalogues synchronising Pantone numbers to
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Handloom
guide exporters with regard to colour and trend patterns prevailing in overseas markets, adds dr Beela rajesh, Executive director, Handloom Export Promotion Council. The first design studio was commissioned at Kannur in Kerala in 2008. A studio in Hyderabad followed in 2010.
Fact FIle
top countries in the handloom export basket 1. UsA 2.Germany 3. UK 4. Australia 5. Italy 6. France 7. Netherlands 8. Japan 9.UAE 10.spain
Scaling up Western countries demand Indian handloom products in bulk. Large scale manufacturing necessitates suitable infrastructure, state-of-the-art automatic machines and sufficient skilled operators. decades ago when Panipat came onto the export stage, about 90 per cent of the business came through hand spun yarn. realising the potential for mill spun yarn, Vij introduced a new line of products. And the rest, as they say, is history. understanding the requirements of a competitive global market, the Indian handloom industry adopts a thoroughly professional approach with regard to commitments to timely sampling, on time deliveries and adoption of the highest quality control norms. Larger players have also brought in ISO 9000-9002 and ISO 14000 standards to ensure world-class quality and adhere to high quality and packaging standards. Handloom resonates strongly with its grassroots origins and hence eco friendliness is an expected feature of handloom products. With Azo chemical colours and dyes being banned in a number of European countries, Indian handloom exporters too have adopted safe substitutes to cater to demand from these regions. Originally too, Indian handlooms were dyed using natural elements like indigo, turmeric, sunflower, etc, and these methods are making a comeback. Supportive Framework Vijs success with new product lines and his unearthing a new market in Malta has come on the back of strong marketing channels, the key to pushing new products and making inroads into new
major categories exported table linen: Table cloths, place mats, table runners and napkins Bed linen: Bed spreads, bed sheets, pillows, quilts, duvet covers, comforters Bath linen: Towels, bath robes, etc Kitchen linen: Tea towels, dish towels, hand towels, aprons, mittens, teacozies, etc Furnishing articles: cushions, throws, bolsters, tapestry, etc curtains: Drapes, blinds, and other window dressings, shower curtains, room dividers Floor covering: Floor mats, bath mats, rugs, carpets apparel: mostly Indianwear, sarongs, etc Fashionaccessories: shawls, scarves, stoles, bags,etc
Wall hangings Gift & home products trimmings & embellishments

sOURcE: HANDlOOm ExPORT PROmOTION cOUNcIl
territories. In this context, he lauds the efforts of the HEPC. retailing, branding and strategic alliances are not easy for small exporters. The council has stepped in to prepare its members to take on new markets and grow their revenues in existing ones. It is taking a proactive role to showcase Indian handloom talent abroad and increase its reach. HEPC members are encouraged to participate in trade fairs, exhibitions and buyer-seller meets in India and overseas. Trade missions are sent overseas to help exporters tap emerging opportunities. Indian handloom products are publicised abroad through suitable channels, including publications brought out especially for this purpose. Information from trade data, commercial intelligence and overseas market studies is collected, collated and disseminated for the benefit of exporters. The HEPC is also responsible for advising the government and local authorities on policy matters, in particular, to assess the effect of direct and indirect taxations on handloom exports and on other industry aspects. Another important Council initiative is the annual International Fair organised exclusively for handloom products at the Chennai Trade Centre during February-March. Market development and market exploration is the need of the hour for the handloom sector and players are going all out to expand the horizons for handloom products. roy has set in place marketing tie-ups in his overseas markets like Japan, Italy and France, while he directly takes care of other steady marketsdenmark, norway, Belgium, Switzerland, uSA and uK. Beyond doubt, the Indian handloom industry is geared up to meet the challenges of globalisation, with the installed capacity for the production of both handloom furnishings and fabrics being sufficient to meet the present overseas demand. Future success will revolve around showcasing and building up of demand for outstanding creations by indigenous handloom skills.
PHOTOs: PHOTOs.cOm
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made in india
Hero Motocorp
No.1
Hero MotoCorp has lived up to its name. It has not only sustained itself post the 2010 split with Honda after a 26-year association, but also retained the top position since 2001.
By S Ojha
Hero
ts a hero in the field of twowheelers. Hero MotoCorp Ltd (HMCL) had its genesis in 1984, rose to No. 1 position in motorcycle manufacturing in 2001 and has maintained the position till date.
the yearning for success is limitless in Hero motoCorp. the company has witnessed an undiminished growth trajectory even after its split with Honda motor Co., Japan in 2010. Hero motoCorp mesmerised the twowheeler market by registering a10 per cent growth in unit sales in the first quarter of financial year 2012-13 over the previous quarter. the company sold over 16 lakh unitsits highest-ever sales in any single quarter. the company sold 5,56,644 twowheelers in may 2012, its highest-ever monthly sales, surpassing the previous record of 5,51,557 units in the april 2012. buoyed by the success, pawan munjal, managing Director and CeO, said in a press release, It has now been more than a year since we began our solo journey, and
the success story at Hero motoCorp only gets stronger with every passing quarter. While the momentum is with us, we are not resting on our laurels. We are stepping on the accelerator to expand our sprawling network within the country even as we enter new geographies globally. the ambitious company aims to achieve 10 million unit sales of two-wheelers, export one million units, and grow its revenues to `5,5340 crore (us$ 10 billion) by 2016-17. It is set to begin its foray into Latin america and africa and aims to achieve 10 per cent of its revenue from international markets in the next five years. the company has three manufacturing facilities based at Dharuhera and gurgaon in Haryana and Haridwar in uttarakhand and produces three million bikes per year. HmCL now proposes to set up two more factories, at Neemrana in rajasthan and Halol in gujarat, with a capital expenditure (capex) of over `2,500 crore (us$ 451.75 million), to handle the growing volume of demand. these facilities would also further
r&D activities to a great extent. meanwhile, pawan munjal, at the global supply Chain partners Conference 2012 held at st petersburg in russia recently, said that a fourth addition to the companyglobal parts Centrewould be set up at Neemrana with a capex of `160 crore (us$ 28.85 million). this facility will be operational by the third quarter of 2013-14 and initially employ 400 personnel. the highly-mechanised, technologically-superior global parts Centre will be a new industry benchmark once it becomes fully operational, said munjal, addressing an audience of over 200, including more than 125 top component suppliers of HmCL.
The Genesis
prior to 2010, this motorcycle and scooter manufacturer, based in New Delhi, was called Hero Honda. this nomenclature was the result of a joint venture (JV) between Hero group of India and Honda motor Co., Japan in 1984. Hero group owners, the munjal brothers and the Honda group, each owned a 26 per cent stake in the company. With this
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Hero Motocorp
made in india
collaboration, the first manufacturing plant was set up at Dharuhera. However, after working together for 26 years, Honda decided to exit the company in 2010 and sold its shares to the munjal brothers in a phased manner.
subsequently, the company was renamed Hero motoCorp in august 2011. the JV had its limitations. as per the agreement, Hero Honda was restrained from selling products to any foreign coun-
try other than sri Lanka. the de-merger opened up opportunities for the munjals to reach out to international markets.
Success Formula
right from inception, the company followed its motto of manufacturing fueleconomic and low-cost two-wheelers that became a rage among Indian customers. For the company it meant nearly doubledigit growth and by 2002 it had sold an enviable 86 million bikes, and was producing 16,000 motorcycles daily.
THe Pioneer
Brijmohan Lall Munjal was born in 1923 at Kamalia (now in Pakistan) in a middle-class family. Brijmohan and his family moved to India and settled in Ludhiana after partition. Sensing Ludhiana's potential as an industrial hub, Brijmohan along with his brothers started supplying bicycle components in the city. Soon, they expanded their network and began sending components across the country. Hero Cycles Limited was registered in 1954, and the Munjals started manufacturing bicycles, partially financed by the Punjab government. In 1975, the company became the largest manufacturer of bicycles in the country. In 1986, it earned a place in the Guinness Book of Records for becoming the largest manufacturer of bicycles in the world. Besides being honoured with several awards for contribution to trade and industry, Dr Munjal received Indias third highest civilian award, the Padma Bhushan, in March 2005. Munjal often says: Dont dream if you cant fulfil your dreams. He dared to dream big and made sure that he achieved all his lofty plans.
High Growth
the growth rate record of the last few years vindicates the companys dominance over the two-wheeler market in India. In 2005-06, the growth in unit sales was 14.47 per cent and in 2006-07, 11.20 per cent. However, the company witnessed a mild growth of 0.01 per cent in 2007-08 due to the global economic slowdown; but it soon bounced back to a double-digit growth of 11.53 per cent in 2008-09, leaping to 23.59
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Hero Motocorp
per cent in 2009-10, 17 per cent in 2010-11 and 15.41 per cent in 2011-12. the company produced three million bikes in 2005-06 and earned a net income of `8,870 crore (us$ 1.6 billion). It made a steep climb thereafter and crossed the six million mark in 2011-12 to harness a net income of `23, 944 crore (us$ 4.3 billion). the spirit of entrepreneurship runs deep in the munjal family. undeterred by having to go it alone post the separation from Japans Honda, the company went on a high octane publicity blitzkrieg roping in the world renowned music composer ar rehman. the jingle Hum me hain Hero, composed and sung by rehman, caught the imagination of the nation and helped the company retain its hold over the market. and with the astounding growth in the first quarter of FY 12-13, Hero is set to remain at the top until a worthy competitor surfaces.
the company demonstrated a hybrid scooter, Leap, at the auto expo held at pragati maidan in 2012, as a part of Hero motoCorps vision to introduce environment friendly two-wheelers to the market. the first bike launched by the company under its new brand name is a first-ever off-road bikethe 150 cc Hero Impulse. It has opened up a new segment in the Indian two-wheeler marketthe on-road-off-road category. HmCLs current scooter, pleasure, specifically targeted at its female customers, has helped the company expand the scooter market. the company recently launched a new 125 cc motorcycle, the Hero Ignitor. HmCL is set to enter a new segment with the planned launch of the 110 cc passion Xpro later in the year.
ances with reputed international firms to further enhance its existing r&D capabilities. In February this year, the company announced a new partnership with erik buell racing (ebr), a Wisconsin-based firm. this will enable them to seek cutting-edge technology and design support from ebr, which specialises in designing and manufacturing of powerful and high-speed motorcycles. Close on the heels of this tie-up, HmCL has also roped in austria-based engine specialists aVL to enhance its in-house engine technologies.
Vast Footprint
HmCL currently has about 5,000 touch points, which include authorised dealerships, service and spare outlets (ssps) and authorised representatives of dealers (arDs). It plans to add another 400 touch points to the network in 2012. the company with strong rural initiatives, consolidated its rural footprints further under its Har Gaon Har Aangan umbrella in 2007. HmCL has already covered more than 100,000 villages across the country under this programme. Currently, about 47 per cent of the companys total sales come from rural markets. It also has an innovative service Har Jagah initiative to serve rural markets.
new Alliances
Having chosen to chart its own path to success, HmCL has forged new strategic alli-
rise of the Hero Zip, Zap, Zoom

First Bike CD 100 in 1985 Sleek in 1989; CD 100 SS in 1991; Splendor in 1994; Street in 1997; CBZ in 1999; Passion & Joy in 2001; Dawn & Ambition in 2002; CD Dawn, Splendor Plus, Passion Plus & Karizma in 2003; Ambition 135 & CBZ* in 2004; Super Splendor, CD Deluxe, Glamour, Achiever & scooter Pleasure in 2005; New models of Splendor NXG, CD Deluxe & Passion Plus in 2007; Hunk in 2007; Passion Pro, new models of Pleasure, CBZ Xtreme, Glamour in 2008; New models of Karizma & Hunk in 2009; Super Splendor, new models of Splendor Pro & Hunk; new models of Glamour, CBZ Xtreme & Karizma in 2011
Promoting Sports
Hero motoCorp is one of the largest corporate promoters of sports in India. It was a partner in the 2010 Commonwealth games held in Delhi and a presenting partner of the Queens baton relay. the company was also the title sponsor of international hockeys showcase event, the Hero Honda FIH mens Hockey World Cup 2010, held in New Delhi. It has been associated with cricket for over two decades and is one of the partners of the IpL twenty20 tournament. Hero motoCorp is also the team sponsor of a top IpL team, mumbai Indians. the company is one of the main global partners of the International Cricket Council (ICC). HmCL also hosts the annual Hero Indian Open golf tournament which boasts participation by international marquee players. It has been sponsoring the mens Indian Open since 2006 and the Womens Indian Open since 2010.
48
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i n n o va t i o n c o r n e r
CGN ReseaRCh Labs
with a human heart

A research lab in India devoted to innovative application of biomedical engineering for alleviating human pain.
By Sangita thakur Varma
n the mission statement of CGN Research Labs, what catches ones attention is its avowed policy vision to direct its growth in the areas of biomedical engineering; to gather people and facilities that tend to augment these areas; to continuously build on these areas through education and knowledge assimilationto contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life. The field of biomedical engineering is just coming into its own in India. CGN Research Labs is unique in its devotion to the promotion of cutting-edge research, technology and inno-
vation in a field that would add lustre to Indias growth story. Dr C Jairaj Kumar, Director, R&D, and Chief Medical Officer of CGN Research Labs, is confident of the country increasing its presence in the field: Majority of the medical equipments that we use are currently imported or non-Indian innovations. We do not have established Indian medical device innovations that rule international market. But this field offers huge potential with increasing promotional programmes aimed at encouraging Indian innovations. We are sure several Indian companies shall make their mark in medical device industry in the near future. The researcher firmly believes that established midsized medical device companies
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CGN ReseaRCh Labs
i n n o va t i o n c o r n e r
in India must focus on pathbreaking on diabetic foot. We have developed innovations rather than making small two products, the first one measures technical improvements to their existnerve damage and the second product ing device. This is the way for India to detects vasculopathy, says Kumar. make its mark as an innovator of mediExplaining the technology behind the cal equipment on the global firmament. invention, he says: This technology CGN Research Labs was founded in is a new method for detecting diabetic 2010 by Dr Jairaj Kumar, Joint Managing neuropathy and predicting foot ulcer Director of the company and C Satish development. The technology would Kumar, Chairman and Managing Director, best be described as a diagnostic tool with two inventionsthe first was a for measuring the progression of neuropathy (any neuropathy not limited device that uses the revolutionary chaos to diabetes) and predicting foot ulcer theory to diagnose diabetic neuropathy development. It could also be useful for and the second a device called Thermo patient management for diseases like Scan, that was developed using a patented leprosy and multiple sclerosis in that nanoparticle focal plane array. A recipient all involve potential nerve damage. of Phillips Best Inventor Award in 2009, The technology involves both hardware Dr Jairaj Kumars motivation for founding the company lay in his belief and software algorithms. The key components of the hardware are the sensors on that any innovation that addresses a which the patient places his feet. The softsignificant problem shall certainly be a ware allows the physician to pinpoint locasustainable business. The labs vision tions on the feet to assess. Its mechanism is to conduct pathbreaking research involves these sensors then being able to that reaches its end user. We intend detect micro movements in the feet with to commercialise our innovations and very fine precision. With the device detectthe company has an active marketing ing and graphing the micro-movements, division, informs Kumar. Thermo Scan uses a non-invasive technology that is simple and painless. The scan performs a plethora of functions ranging from diagnosing Lab View early stage breast cancer, to imaging Name: CGN Research Labs Pvt Ltd inflammatory pain, detecting diabetic Founder: Dr C Jairaj Kumar vasculopathy at a very early stage to Mission: Application of biomedical detecting sports injuries; thus it can engineering in the research, design, manufacture and sale of medical help start treatment early and prevent devices that alleviate human pain further damage. The device employs an Founded: 2010 extremely user-friendly procedure. It Next: Self-monitoring neuropathy & takes only a few minutes to conduct the thermal imaging laparoscopic devices tests and is ergonomically designed for easy operation. It is a portable and compact device which renders razor-sharp thermal images and its high temperature accuracy guarantees precise data measurement. In 2011, CGN Labs was bestowed with the Best Medical Electronics Product of the Year Award for its Thermo Scan by India Semiconductor Association. Conferred with a DST-Lockheed Martin Gold Medal in the year 2010, Kumar firmly believes in moving ahead. The research focus of CGN now is
the physician is then able to assess progression of neuropathy at pre-clinical stages and can adjust and tailor medications (or assess efficacy of medications being administered) and treatment regimens to proactively prevent foot ulcers from forming. The device can: diagnose neuropathy predict foot ulcer development and thereby prevent amputation (removal of fingers, etc) quantify the efficacy of medication The author of over 50 international research papers, Kumar is the Editor in Chief of Scientific Medicine, an International peer reviewed medical journal. He is also the Associate Editor of prestigious international medical journals like Australasian (Australia) and Cases (UK), besides serving as referee and reviewer for several other international medical journals. Apart from contributing to the medical world in his research capacity, Dr Jairaj Kumar is also motivating young students in the field through his role as a teacher. He is a visiting professor at Jawaharlal Nehru Centre for Advanced Scientific Research, Bangalore, and has collaborations with IIT Hyderabad, NRSA-ISRO Hyderabad, University of Munich, LMU, Germany and University of Missouri, USA. For CGN Research Labs it is not yet time to bask in glory. Rigorous research is the adopted path for this upcoming research hub with a goal to develop and manufacture a wide range of products and therapies with emphasis on providing a complete continuum of care to diagnose, prevent and monitor chronic conditions in the near future. Speaking about future plans Dr Jairaj Kumar says, We are now developing a home healthcare neuropathy device for patient self-monitoring and are working on developing a thermal imaging laparoscopic device. Another advancement that is sure to contribute to human welfare, biomedical research and engineering, and Indias profile as an emerging hub for cutting-edge innovation.
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51
culture
Contemporary Glass: Geetha Mehra, Director, Sakshi Gallery welcomes visitors to the 10,000 sq ft space on the ground floor with a private garden. (Below) A room with a view.
arts &
Art for Now

The destination of the crme de la crme of India in search of the pice de resistance in art, Sakshi Gallery is playing a lead role in conserving Indias artistic talent.
A
52
rt is best bought because of the response that one feels to it. Considerations such as investment follow later, says Geetha Mehra, Director of Sakshi Gallery. Mehra should know, as Sakshi plays an advisory role to many of Indias art collectors. Mehra herself had realised early on, as a teenager with an avid interest in art, that she didn't have the talent to paint, so the next best thing was to be involved in management of art. To pursue her abiding interest, Mehra took up History of Fine Arts as a deliberate choice and after acquiring a masters degree in the subject,
launched Sakshi Gallery in 1984, in Chennai. Recalling Sakshis debut days, Mehra says, Those were pioneering times in art, particularly in Chennai, with no benchmarks to follow. The challenge for Mehra lay in finding her own path and carving a unique identity for Sakshi. It helped though that India was culturally alive with art aficionados and connoisseurs in plenty. People were receptive, although
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SakShi art Gallery
ar t s an d cu lt u r e
The Visitor, an outstanding work by young contemporary artist Nandini Valli Muthiah will be on display at Sakshi Gallery
Picture Perfect
from September 13-October 13, 2012. The Visitor is Muthiahs most ambitious project. Her protagonist Krishna is shown as a messenger
of God who brings both good and bad to earth. Muthiah has held two successful solo shows so far and her work has been
showcased at Zacheta National Gallery of Art in Poland, Winterthur Museum in Switzerland and Whitechapel Gallery in London.
Chennai was more tradition-bound and inclined towards classical art, Mehra reminisces. Sakshi had been relocating every few years in search of the best architectural space in synergy with its artistic aspirations. Mehra came to Mumbai in 1992, recognising the vast potential that Indias art and culture hub offered. She first set up the gallery on Altamount Road. The next shift saw them at Sriram Mills, a textile facility, and they are currently at Colaba, which has an old world kind of charm, says Mehra. For Mehra it has indeed been a long and exciting journey. Discussing the strides the Indian art scenario has taken, she says that not only has the number of artists increased but the works that they attempt are far more ambitious than before. The art collectors profile has also undergone a sea-change and there are several who buy more adventurous works such as multimedia pieces, video installations, et al. Sakshi is a corporate entity with closelyheld shares. Post its merger with Synergy Art Foundation Ltd in 1989, the gallery widened its scope and breadth of operation. In 2009, it set up an international branch in Taipei, Taiwan, in its endeavour to promote both Indian and international young talent. Mehra finds scouting for, and working with, new talent both challenging and very rewarding. The gallery has debuted many young
Watch this Space: Art works displayed in the vast precincts of Sakshi Gallery. Sakshi showcases contemporary paintings, sculptures, prints, installations, etc, by both budding talents and renowned names like Anirban Mitra, Anish Kapoor, Chintan Upadhyay, Jitish Kallat, as well as international artists. The notable names that were up for grabs in the Easy Buy show held in June 2012 at Mumbai included prints by MF Husain, lithographs, drawings and posters by Manjit Bawa, NS Harsha, Krishen Khanna, Jitish Kallat, KG Subramanyan and Jogen Chowdhury; a limited edition Bhupen Khakhar signed print; a limited edition Arpita Singh print and some etchings by Somnath Hore. There were also paintings by younger artists which would gain value as they gain stature.
artists and is equally patronised by established artists. Artists to watch out for, says Mehra are, All the young ones. Another thing Mehra has done successfully is bust the myth that art is for the enlightened and the elite. Sakshi has tried to make art affordable. Our Easy Buy show held in June 2012, received a huge response. I had not realised that there is a whole audience out there eager to buy art who has limited resources and finds the gallery experience intimidating, says Mehra. She wants art to be introduced in the school curricula for it to get a wider exposure. Appreciation for art must certainly start early, for artists to find devoted patrons like Geetha Mehra.
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53
update
copyright: abhishek bali
tourism
Po Nd IC HE RR Y
Cultural Vanguard: Mahatma Gandhi's fourmetre statue situated along the Promenade is a cultural hotspot in Pondicherry. Cafe Class: The many cafeterias and pubs dotting Pondicherry add a quaint French village charm to its exoticism. Soul Search: Step out on the beach at dawn to commune with Nature and enjoy the pristine beauty of Pondicherry. Promenade Beach is perfect for these morning walks.
Indias French Coast!
T
54
Pondicherry with its French heritage and still unexploited beaches is a travellers delight.
he French Riviera of the East retains its flavour. Theres a distinct yet mellow air that blows here gently, slowing life to a leisurely pace. The moment you disembark from your taxi, Pondicherry, the capital city of Puducherry, strikes a different chordbut not a discordant note. You can hear the Koel (the State Bird) sing in the arbours of the French Quarter, the gentle lap of the sea, strains of a piano wafting from one of the arched doorways of the colonial style villas on Rue Romain Rolland. It takes around three hours by road to reach the town from Chennai. The picturesque drive with sand dunes flanking one side and the unfet-
tered view of the sea on the other as you drive down the East Coast Road (ECR) is but a trailer to the breathtaking allure of an unforgettable sojourn. There are other routes like the National Highway 45 or the Grand Southern Trunk (GST) or the drive from Bangalore. You may even take a flight to Pondicherry. But then you will miss the midway stop at Mahabalipuram for a visit to the famous temples and the priceless drive down the ECR.
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Puducherry
to u r i s m u pdat e
What makes Puducherry so distinct is the coexistence of a multicultural cosmopolitan core, which one finds somewhat surprising given the fact that it is tucked far away from mainstream India in the eastern seaboard. But then, Pondicherry was always for the culturally bon vivant, as resident Puducherians will tell you. The population here is a mix of local Tamil folk, the Bengalis and the oriyas who came in with Aurobindo Ghosh when he set up his famous ashram in 1926, French expatriates (who chose to stay behind even after Pondy became a Union Territory more than 50 years ago) and the Europeans and Americans who form two-thirds of the residents of Auroville. There is so much to explore in this city that you are tempted to extend your few days by another few. There is also a sense of calm, a peace that surrounds you; and for the time you are there, you are best advised to renounce all worldly connections (switch off your mobile, and tuck that iPad out of sight), and throw your cares to the winds as you rent a bike (the best mode of transport to wind down the tree-lined boulevards and the seafront promenade) to explore the many delights of this quaint city. The town architecture leaves one wonderstruck as no other city in India displays such a distinct style. Go to the French Quarter which still retains its Gallic aura in its neat grid structure. Little seems to have changed here with streets retaining their original French names like St Martin, Rue Suffren and colonial bungalows painted in mellow hues of pink and yellow with bright bursts of bougainvillea hanging over their high compound walls and arched doorways. Rows upon rows of neat houses with colonnaded porticos, you are struck by the symmetry and simplicity of design. The French Quarter seems to transport you to some provincial village in France. There are several architectural marvels in Pondicherry that appear to belong to another era. In fact, the whole ambience of genteel elegance lulls you into feeling as though you have stepped back in time. A visit to the Childrens Park with its statue of Marquis Joseph Francois dupleix is a strong reminder of Puducherrys French occupation. dupleix was the governor of Puducherry between 1742 and 1754. The sea-facing The Mairie situated on Gaubert Avenue, that today
FIvE KEY HIGHLIGHTS

1. fragrance of
france lingers here
Romain Rolland Street, named after the French scholar and associate of Mahatma Gandhi.
Play on : Music and dance at dusk mark the perfect end to an eventful day exploring the city. Put up your feet, close your eyes and let go, or take to the dance floor with your partner.
2. elephant goddess
Blesses the devout
Lakshmi, a celebrity, has tourists making a beeline for the Ganesha temple on Manakula Vinayagar Koil Street morning and evening.
3. french Quarters
Take a heritage walk down the wide roads to discover the little nuggets of unique Pondicherry history.
4. varied collection
A shopper's paradise for unusual curios, objects d'art as also some high end brands.
5. call of the Wild Nature beckons one to stay and savour its many fascinating treasures. From a leisurely walk down the sea front, picnics in the park to cruises down the sea, Pondicherry offers all.
is the office of the Puducherry municipality, is strongly reminiscent of French architecture. Every year on July 14, Puducherry celebrates Bastille day to commemorate the French martyrs of the First World War. A memorial to them on Gaubert Avenue is beautifully decorated and illuminated on the day to pay homage to these bravehearts. The French Consulate General with its 18th century charm is the only diplomatic mission in Puducherry. other French influences are apparent in the now defunct 19th century lighthouse that stands on the edge of the sea and the Aayi Mandappam that despite its Tamilian name was actually built in the time of Napoleon III, the emperor of France. The Raj Niwas is again a piece of exquisite French architecture that housed the French trading company. At the Church of our Lady of the Angels in dumas Street you can see the rare oil painting of our Lady of Assumption gifted by Napoleon III. The church is an architectural and historical marvel built in 1855 with its faade facing the sea. Right in front of the church in the middle of a garden stands the tall and imposing marble statue of Joan d Arc. With her back to the sea and facing the church, she takes your breath away with sheer simplicity of power. other must visit French architectural wonders include The French Institute of the Far East situated on dumas Street, an internationally acclaimed research institute on Indology, history and archeology. Its two buildings stand at the corner of the street. dine at Hotel de lorient built in 1809 on Romain Rolland Street and you can also shop for some curios to take back with you while you learn about its history. Hotel Lagrenee de Meziere, again on Rolland
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55
to u r i s m u pdat e
Puducherry
To sea, to sea!: Take a catamaran and sail down to the sea or go on a cruise to enjoy the scenic beauty. Bonding Time: Visitor centre at the famous Auroville that is home to an international community.
Window View: A street named after the French East India Company which was founded in 1664.
Street, built in 1774, was once a private house. Today, it is a workshop for exquisite embroidery. You can learn the story of the intervening years of Puducherry from the nuns of St Joseph of Cluny. The house was donated to the order some 150 years back. There are many more such historical nuggets that keep you going back to explore the streets of Pondicherry. The streetscape of the Tamil or the Indian Quarter is one such thinga direct contrast to the grid like French colonnade houses, the Tamil Quarter or talking street as it is called has intimate continuous wall to wall constructions that are typical of Tamil architecture. While here, visit the Botanical Garden which is at the centre of the old Tamil town. Built in 1826, it stands out from its surroundings given its ornate French landscaped style. With a coastline of 32 km, Puducherry boasts of some of the best beaches. What adds to the attraction is that they are less commercialised and offer peace and quiet. Head out to the Auroville beach at the break of dawn and join the meditators on the pristine sands. There is the Promenade, the Paradise and the Serenity beach as well if you want to spend your day lazing beside the sea. or simply stroll along Beach Road one evening and breathe in Pondy air. A visit to Aurobindo Ashram and Auroville is of course mandatory to understand the unique international community and the blend of yoga and spirituality that drives them. Apart from these, there are several temples, churches and mosques that offer unique architectural insights. For the historically inclined there is the Puducherry Museum on St Louis Street, the Ananda Ranga Pillai Museum. Pillai was the dubash of dupleix and his diaries are a revelation on the life and times of the 18th century French in India. The Bharathi Memorial Museum and the Bharthidasan Museum offer glimpses of Tamil literature at its best. If time permits, you can venture a little further and visit Chunnambar Backwater around 8 km from Pondicherry. Sail down the beautiful creek
and pitch a tent for a night out under the beautiful tropical sky. You can even cruise out to the sea and espy some frolicking dolphins as an added bonus or just laze on the boat. You can make arrangements for the cruise at Pondicherry itself. For those keen on trying the local cuisine, its as close to authentic French as you can get in India. The town has many vietnamese restaurants, a relic of its French past, that serve up delicious chicken noodle soup. Try Creole cuisine. Also try a meal at one of the community kitchens at Auroville or the visitors Centre while shopping there. The best time to visit Puducherry is between July and February. So pack your bags this autumn and head for this boulevard town seeped in French nostalgia, tree-lined promenades, pristine beaches with palm trees swaying in the breeze, backwaters, fishing on catamarans, cruise on the sea, fine wine and cuisine, and the thrill and adventure of the unexplored.
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BOOKsHELF
Indian mind has been shaped by remarkably diverse forces.
Indias tryst with Destiny A fascinating look
at Indias foreign policy, replete with insightful anecdotes in a racy narrative style. by Sangita thakur Varma
talks of an India that is multialigned. The India of the 21st century that Tharoor writes about has a much wider role to play in the world. This Pax Indica is not about India, but its sense of responsibility to the world of which it is such a crucial partand whose destiny it has earned the right to help shape. The book is an insightful and informative critique of Indias foreign policy, written with an insiders understanding of diplomatic affairs. The racy narrative, with a liberal sprinkling of Tharoors witticisms and real-life anecdotes, makes this almost 500-page tome a pleasurable read. Though Tharoor never meant Pax Indica to be a scholarly read, the book has turned out be a mine of information for allyoung minds to make intelligent living room conversations on foreign policy and international relations to mandarins in the South Block working out diplomatic strategies for near and far. In the process, Tharoor
ABOuT THe AuTHOr
Dr Shashi Tharoor straddles many worlds with equal finesse. He is a columnist, an awardwinning author, a distinguished speaker, a former United Nations Under-SecretaryGeneral for Communications & Public Relations, peace-keeper, refugee worker, human rights activist, former Minister of State of External Affairs and an elected Member of the Indian Parliament from Kerala.
FrOm the opening lines recreating Nehrus historic proclamation of Indias tryst with destiny, Shashi Tharoor cleverly weaves his vision of Indias multi-alignment by capturing dramatically that unforgettable midnight of August 14, 1947. His pen creates magic as we can almost hear the thunderous pronouncements of our first Prime Minister Jawaharlal Nehru to the Indian Constituent Assembly: Those dreams are for India, but they are also for the world, for all the nations and peoples are too closely knit together today for any of them to imagine that it can live apart. Peace has been indivisible, so is freedom, so is prosperity now, and so also is disaster in this One World that can no longer be split into isolated fragments. This is the premise that Shashi Tharoor goes on to explore, elucidate and hammer forth in Pax Indica. Tharoors book is not about a superpower India or a non-aligned India, rather he
holds up Indias foreign relations under the unrelenting gaze of his magnifying glass as he marches the diplomatic elephant down post-colonial India covering a vast geographical territory and time span to the present reality of the 21st century world. Tharoor does not offer a model policy extrapolated from past trends, rather he does a situation analysis which is country and context specific and then arrives at a set of suggestions that he says India must take into cognisance when formulating its diplomatic derring-do. All this while, Tharoor is cleverly leading us, step by step, to his grand vision of India of the 21st century. He humourously yet dexterously exposes diplomatic gaffes, the politically strident yet confounding calls, the openly divided public opinion on issues of national importance and the medias questionable role in pandering to popular views. Yet through it all, Tharoor is clear about one thingIndia is the rightful
58
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ShaShi Tharoor
BOOK sHELF
leader of the 21st century world. Tharoor believes that India must seize the responsibility to lead the world, and shows the way to a re-orientation of Indias foreign policy thinking to this purpose. The book, says Tharoor, is structured like an onion. And as you turn the book page by page you have a feeling that you are peeling the layers to a hidden kernel of wisdom. With neighbours, he advocates diplomacy built on dialogue, taking up a position that is between the hawks and the doves. Tharoors inimitable style evokes more wry humour than tears. The international imagination is currently dominated by the two rising powers of the eastIndia and China. In Tharoors 21st century world both India and China can co-exist in peace despite their tensile relationship. He illustrates effectively why it is important for India to maintain a cordial, economically beneficial relationship with China in order to concentrate on our domestic tasks. Moving on from Indias individual relationships with its neighbours near and far, Tharoor unveils his grand plan for India of the 21st century. Diplomatic writing has rarely focussed on something as intangible as what he evokes as Indias soft power. He defines this quality as the power that emanates from the worlds perception of what the country is all about and is very distinct from hard power or military might. He says India possesses it in plenty and calls it the countrys greatest asset in the 21st century. Maintain that, and true leadership in our globalising worldthe kind that has to do with principles, values and standardswill follow. What
Tharoor unveils his grand plan for India of the 21st century. He evokes Indias soft power and defines the quality as the power that emanates from the worlds perception of what the country is all about and is very distinct from hard power.
follows is the strategy to develop and strengthen this soft power. The cynics amongst us may find this a wee bit hard to swallow. For from here onwards Tharoors foreign policy of soft power seems somewhat lacking in punch and conviction, a little facile. However, his firm belief that foreign policy must engage the people will find many an echo. Given the dangers of engaging with the social media and the recent controversies surrounding it, to what extent can delicate matters like foreign policy be shared on the public domain in order to develop what Tharoor calls the soft power strategy via public diplomacy needs to be debated. One cannot but agree with Tharoor that India needs an informed and engaged citizenry to face up to the responsibilities of being a global player in the 21st century. But first we must build the right channels of information. Tharoor envisions a larger than life role for India of the 21st centurya world leader with global responsibilities. Heres an India just a diplomatic step away from a permanent seat in the uN Security Council. He prods India to utilise its strategic partnership with Washington to wrest that elusive seat in order to
INSIDe THe BOOk
We need to look to the future... where geography becomes an instrument of opportunity in our mutual growth story, where history binds rather than divides, where trade and cross-border links flourish and bring prosperity to all our people. Some will say these are merely dreams... But dreams will only turn into reality if we take action to accomplish this brighter future together.
take on its bigger rolestewardship of the global commons. Tharoors pronouncements on India warm the cockles of the heart, but by now Pax Indica leaves the reader bewildered. Of course India is at home in the world. The 21st century world is multipolar and multicultural. Indias cultural and national fabric is rooted in this multiplicity and as such, it is certainly much at home. It is also true that in the 21st century, multi-alignment through global partnerships across a wide spectrum of areas is not something alien to it. But are all these qualifications enough to take on the leadership of the world? Are there not deeper issues, harsher realities in the world that are pulling nations, nay people within nations apart? India certainly will play a strategic role in this world order and help frame the rules that will change the way nations interact. But will it bring to life the grand picture of Pax Indica the peace system built and sustained on the value systems India holds dear at home and abroad, as Tharoor envisages? For now, Pax Indica is an insightful look into the world of diplomacy for every Indian.
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59
UpdAte
An organisation is quietly at work in the southern state of Andhra Pradesh to wean farmers away from costly inputs and chemical pesticides to sustain farming.
By SantoSh Kumar
RURAL
Improving the Quality of Life
ust eight years into existence, Centre for Sustainable Agriculture (CSA) has developed paradigm shifting sustainable models of farming. One of theseCommunity Managed Sustainable Agriculture (CMSA)is today practiced on more than two million acres or roughly 10 per cent of cultivated area in Andhra Pradesh. We believe that agriculture should be understood in its social, cultural, political, economical and ecological contexts and that one size fits all kinds of solutions offered by modern agriculture will not work, says Dr GV Ramanjaneyulu, Executive Director, CSA. Hence we designed our programmes taking these parameters into account. The CMSA approach overturns the traditional expensive chemical pesticide input methodology and replaces it with one using physical and biological means
including ecofriendly biopesticides and agronomic methods to improve soil fertility. It is a community-based model providing a single window platform for sustainable livelihood improvement to small landholders. The major thrust of CSA, registered as a Trust in 2004, is to improve the quality of life of farmers by promoting environmentally safe and sustainable methods, especially in tribal and dry land areas. The CSAs one outstanding achievement is the implementation of Non-Pesticidal Management (NPM). Understanding the import of agriculture on climate change and the consequent imperative for developing sustainable agriculture practices, the organisation pioneered the concept of NPM. Pesticides make up a large chunk of production costs and also have severe health impact which farmers across the coun-
Dr GV Ramanjaneyulu is the Executive Director of Centre for Sustainable Agriculture (CSA). He has been working in the field of sustainable agriculture and promoting environment friendly, nonchemical pesticide-based agricultural practices among the grassroots.
try acknowledge. So when we talked about pesticidesits bad effectsfarmers are keen to adopt measures that can prevent them. Our research helped us evolve good practices and we could convincingly communicate it to the people, says Ramanjaneyulu. The life of the farming community has significantly improved and the costs of production reduced from `5,000 to 15,000 (US$ 89.2-276.9) across crops per season. The reduction in pesticide use has helped improve the health of the community greatly. We work with several like-minded organisations such as Alliance for Sustainable and Holistic Culture that are spread across the country, he says. Regulation of some of the most unsustainable technologies by presenting viable alternatives be it to Bt brinjal or Endosulfan is the result of this network.
60
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August-September 2012 | Volume 03 | Issue 03

Rang de is colouRing the RuRal landscape in hues of joy

a technology that pRovides a commonflooR foR Residents

Biotechnological engineeRing mitigates human pain

Engineering The Future

Volume 01 | Issue 03 | AuGusT-sePTemBeR 2012 03 august-september 2010

Sangita Thakur Varma

10 | Partner in indias Power Journey: aBB Ltd

52 | art for now: sakshi GaLLery

50 | With a humaN heart

28 | For a Common Cause

01 | editoriaL 04 | nationaL round-uP 12 | Microfinance 54 | tourisM uPdate 58 | BooksheLf 60 | ruraL uPdate

32 | ceMent: ceMentinG Growth

35 | coMPuter PeriPheraLs: the souL of it

38 | GeMs & JeweLLery: BriLLiant ProsPects

43 | handLooM exPorts: sPinninG success

India-China Discuss Trade Ties

They Vladimir Said iT PuTin

5 for best business outlook hotels

Hotels in India are Highly Profitable survey ranks india no.

-Banmali Agrawala, India Region President & CEO, GE Energy

Pune, the New Business Destination

India Tops Exports Growth Rate

Kolkata: Potential medical Tourism hub new medical facilities coming up

destination Khazakhstan for indian tea

Indias Economic Outlook Projection

2008-09 7.3% 9.3%

2009-10 5.4% 5.5%

2010-11 8.5% 14.44%

2011-12 7.00% 8.87%

2012-13 6.5% 9.5%

Mean Probability Pattern of Real GdP Growth Forecasts 2013-14

chart 1: Year-on-Year Growth in IIP

chart 2: Year-on-Year Growth in Sectoral Indices

-4% -8% -12%

Source: RBI survey of professional forecasters

chart 3: Contribution to IIP Growth in May 2012

chart 4: FDI and FII Inflows

Monthly Trends in Wholesale Price Index-Monthly Average (% change)

Key Macroeconomic Indicators

Repo Rate and Reverse Repo Rate

currency Exchange Rate

Repo Rate Reverse Repo Rate Source: RBI

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