New Delhi, March 26
The period April-December 2006 saw one of the highest industrial growth rates ever since the industrial liberalisation process was initiated in 1991, according to the annual report of the ministry of commerce and industry (Department of Industrial Policy and Promotion) released earlier this week.

This period witnessed an industrial growth rate of 10.8 per cent compared to an 8 per cent in the corresponding period last year. The growth was led by the manufacturing sector, which grew by 11.8 per cent in the same period. Meanwhile, the capital goods sector maintained its robust performance recording a 17.5 per cent growth (April-Dec 2006) on top of a 15.7 per cent growth in the corresponding period last year.

The infrastructure sector has also shown consistent growth with all six core industries viz. electricity, crude petroleum, petroleum refinery products, coal, steel and cement registering positive growth rates. Overall, these sectors grew by 8.3 per cent during April-December 2006, compared to a 5.5 per cent growth in the same period last year.

India’s forex reserves stood at $193.12 billion on February 23, 2007, up from $151.62 billion at the end of March 2006. The continued surge in forex reserves reflects continued inflow of foreign capital, investors’ confidence and good performance of exports.

Further, FDI inflows (equity capital components only) during April-December 2006 had been $9,272 million against $3,697 million in corresponding period last year, representing an increase of 151 per cent. 

New Delhi, March 26
While asking the Indian steel tycoons, eyeing global expansion not to lose sight of opportunities at home, the Prime Minister Manmohan Singh today stated that the issue of land alienation and displacement of people would be addressed to the satisfaction of all.

The PM, in his address at the Steel Summit, said, “I want the Mittals’ and the Tatas’ and others, who are eyeing global opportunities to also invest more at home. India is a land of opportunity, they should not miss the moment.”

Observing that 50 per cent of demand comes from construction, he said India was slated to witness a massive increase in investment in infrastructure sector.

The PM said efforts of Indian producers to acquire mines abroad for assured input linkages was another evidence of the growing maturity of Indian steel companies.

His comments on the land issue comes amidst the ongoing agitation in Nandigram.

Focusing on the steel industry, he said its pace of growth had accelerated to over 10 per cent in the current year. The 11th Five-Year Plan projected a 9 per cent average GDP growth rate.

This meant the industry and government had to jointly address challenges of structural constraints to growth. The National Steel Policy, the PM said, set a production target of 110 million tonnes by 2020.

Mumbai, March 26
Glenmark Pharmaceuticals has acquired a majority stake in Czech firm Medicamenta to get a commercial foothold in "the strategically important market" of Europe.

In a filing to the BSE, Glenmark said its wholly-owned Swiss subsidiary, Glenmark Holdings SA (GHSA) has signed a deal to acquire more than 90 per cent in Medicamenta. It, however, did not disclose any financial details of the deal.

The acquisition would provide a base for branded business in Europe to Glenmark, which would also look for expanding Medicamenta's current portfolio of pharmaceutical products.

"The purchase of Medicanmenta is a landmark event for Glenmark in Europe. It is another part of our long-term strategy to emerge as a speciality company marketing novel drugs, by acquiring front-ends in key branded generics markets," Glenmark MD and CEO Glenn Saldanha said.

As per the Czech Law, a holding of more than 90 per cent shares in a company would trigger a mandatory takeover bid for the remaining shares.

The acquisition would give Glenmark a strategic entry into two of the fastest pharmaceutical markets in Europe, where Medicamenta has sales and marketing operations. — PTI 

New Delhi, March 26
The UAE vice-president and Prime Minister Sheikh Mohammed Bin Rashid Al Moktoum today sought closer cooperation between India and UAE to raise the bilateral trade to ‘No. 1’ position in the region.

Pointing out the fact that the two-way trade between the two countries was much below the potential, he said, “We want to be no.1, and not second. If we join forces together, we would achieve that status.”

He was addressing a joint business meeting organised by Assocham, CII and Ficci in his honour.

India’s two-way trade with the UAE is estimated at around $11 billion, whereas China’s bilateral trade with the UAE is at around $14.2 billion, making the ‘Dragons’, the largest trading partner of the Gulf Cooperation Council in the region.

“Economic convergence between India and UAE is essential for two countries to scale new economic and bilateral heights and joint venture should be established in the areas of mutual benefits,” Sheikh Mohammed, on his first official visit here, said showcasing the UAE as the gateway to markets in the region.

He expressed happiness over India doubling its investment in the UAE in the last three-four years.

The identified joint areas for mutual cooperation include oil and gas, power, health, construction, real estate development, chemicals & fertilisers, pharmaceuticals and third world exports.

Speaking on the occasion, commerce and industry minister Kamal Nath also emphasised the need for organic partnership between India and UAE so that their trade volumes register a multiple growth and emerge as the largest trade partner in the region because of complimentarities in their relationship.

Kamal Nath said India and UAE should also strive very hard to take on the emerging competition from China which could be possible provided the real economic convergence between the business interests of two countries take place.

Three MoUs between top Indian and UAE companies were also signed in the presence of Shiekh Mohammed. An MoU was signed between the Hinduja Group and Dubai World, the UAE’s biggest industrial conglomerate.

Another MoU was singed between DLF and Al-Nakheel, the UAE’s top real estate company for mega real estate ventures in India. Wipro India’s IT major, signed an MoU with a UAE company for a major collaborative project.

Indore, March 26
Facing the heat over the prospect of Tatas' Rs 1 lakh car affecting the two-wheeler market, Bajaj Auto has said it may build cars to ward off the threat.

"The JD power study says that it (Tata's 1 lakh car) will affect the two-wheeler market. If that happens then we would also manufacture cars for the market," Bajaj Auto chairman Rahul Bajaj told reporters here.

International consultancy firm JD Power said early this week the "people's car" from Tatas could create a major dent in top-end motor cycle sales with its lucrative price tag, provided the corporate house gets the product right in the first shot.

Bajaj's statement is the first confirmation that the country's top three-wheeler and second-largest motor cycle maker was interested in developing a low-cost car.

The company had earlier announced it was developing a four-wheeler goods carrier scheduled for launch in 2009.

Although Bajaj Auto is the second-largest motor cycle maker in the country after Hero Honda, it has an upper hand in high-end bikes with its runaway success Pulsar.

Bajaj, who was here for the eighth annual convocation ceremony of the Indian Institute of Management (IIM), had recently also reacted sharply to Tata Group chief Ratan Tata's statement that the low-cost was being developed in concern for the safety of those travelling by two-wheelers.

"He has to sell his car... so he has to speak like that," Bajaj had said, terming Tata's comments as a marketing ploy.

Bajaj also said he was in favour of special economic zones provided they are not located near cities like Mumbai and Delhi where there is land shortage. — PTI

Raipur, March 26
The Emami group would be investing Rs 2,000 crore in Chhattisgarh, company sources said.

"Emami has decided to invest Rs 2,000 crore in the natural resource-rich Chhattisgarh within next three years," company sources said here.

The company is planning to set-up a four million tonnes capacity cement plant and also a 100 MW power plant in the state with total investment of Rs 1,600 crore, they said.

Besides that, Emami is also investing Rs 150 crore for setting up a bio-diesel plant in the state as Chhattisgarh has developed quite a lot of interest in the bio-fuel sector, they said.

It was also being planned to construct a 500-bedded hospital near the capital city with an outlay of Rs 175 crore, the sources said. — PTI 

New Delhi, March 26
The German insurance giant, Allianz is planning to widen base in India with foray in banking business through its unit Dresdner Bank, besides expanding its existing non-banking financial services.

Allianz, which currently offers life and general insurance services through its joint ventures with Bajaj Auto, is believed to have approached the regulatory authorities for necessary approval to launch banking business in the country.

The company is upbeat on starting retail banking business here after signing its third joint venture with Bajaj Group earlier this month to sell financial products like mutual funds, credit cards and home loans.

Speaking from Singapore, an Asia Pacific spokesperson for Allianz said, the company was optimistic about India’s economic development and given its economic outlook, it was natural for them to take a closer look at asset management and banking businesses as well.

“Allianz - being one of the biggest financial service providers worldwide, offering insurance, asset management, and banking products in many countries across the globe - is quite qualified to provide this range as virtually no other company is that resourceful,” the company official said.

Allianz, which posted revenues of over 101 billion euros and net income of over 7 billion euros in 2006, is currently in talks with the various institutions and authorities as part of its plans to enter banking business in India, he added.

The company said it has attained a strong foothold in the Indian market through its two JVs Bajaj Allianz Life and Bajaj Allianz General Insurance, while it has just launched Bajaj Allianz Financial Distributors as a new distribution company.

According to the Allianz Group study, India is on its way to become a significant economic power and enjoys the second highest growth potential in the world after China with average economic growth of 7.5-8.5 per cent up to 2015. — PTI

New Delhi, March 26
A ten member business delegation from north - India, led by the PHDCCI president Sanjay Bhatia would visit Pakistan on March 28, to explore possibilities of enhancing trade between the two countries as well as studying the possibilities of investment flows.

The delegation, consisting of some biggies of the industry from north India, representing sectors like packaging, metal containers food and beverages, grinding media, synthetic yarns, steel strips and castings, rock-salt, township and infrastructure development, food processing including bakery products, ice creams and preserves etc. would visit Karachi, Islamabad and Lahore.

They would be meeting the Federation of Pakistan Chambers of Commerce and Industry, Karachi Chamber, Chambers at Lahore and Islamabad as well as senior govt. officials and industry counter- parts.

The delegation would also be visiting the Expo - Pakistan 2007 being organised by the Trade Development Authority of Pakistan from March 29 to April 1, in Karachi. The exhibition will showcase the products of Pakistan and would provide a good opportunity to have a look at the products and meet the Pakistani businessmen and discuss business opportunities.

The delegation is also likely to have meetings with the Prime Minister and Commerce Minister of Pakistan.

Outlining the agenda of the visit, Bhatia said efforts are being made by both the countries for improving bi-lateral economic relations and there is need to evolve a structured framework.

The Opportunities for economic co-operation between the two countries are huge and the present level of trade is less than $1 billion which could multiply in the next few years.