Money Market Information

Sugar Industry in India

2011-02-09T08:18:00.002+05:30

About Sugar Industry in India

Sugar consumption rate is highest in India as shown in the statistics received from USDA Foreign Agricultural Service. However, as per production is concerned, India has notched up 2nd position following Brazil, the largest sugar producer in the world.

The Indian sugar industry uses sugarcane in the production of sugar and hence maximum number of the companies is likely to be found in the sugarcane growing states of India including Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh. Uttar Pradesh alone accounts for 24% of the overall sugar production in the nation and Maharashtra's contribution can be totaled to 20%.

There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills.

Sugar Industry set up across India

Andhra Pradesh Sugar Industry
Bihar Sugar Industry
Gujarat Sugar Industry
Haryana Sugar Industry
Himachal Pradesh Sugar Industry
Karnataka Sugar Industry
Madhya Pradesh Sugar Industry
Maharashtra Sugar Industry

Chhattisgarh Sugar Industry
Manipur Sugar Industry
Orissa Sugar Industry
Punjab Sugar Industry
Tamilnadu Sugar Industry
Uttaranchal Sugar Industry
Uttar Pradesh Sugar Industry
West Bengal Sugar Industry

Beginning of Sugar Industry in India

Sugar is made from sugarcane, which was arguably discovered thousands of years ago in New Guinea. From there, the route was traced to India and Southeast Asia. It was India which began producing sugar following the process of pressing sugarcane to extract juice and boil it to get crystals.

It was in 1950-51 the government of India made serious industrial development plans and set the targets for production and consumption of sugar. It projected the license and installment capacity for the sugar industry in its Five Year Plans.

Types of Sugar Industry in India

The sugar industry can be divided into two sectors including organized and unorganized sector. Sugar factories belong to the organized sector and those who produce traditional sweeteners fall into unorganized sector. Gur and khandsari are the traditional forms of sweeteners.

Manufacturing Process followed in Sugar Industry in India

Several steps are usually followed to produce sugar. These steps can be mentioned as below:

Extracting juice by pressing sugarcane
Boiling the juice to obtain crystals
Creating raw sugar by spinning crystals in extractors
Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue
Crystallizing and drying sugar
Packaging the ready sugar

Machinery Suppliers for Sugar Industry in India

Some of the suppliers that offer cutting-edge machines to the companies involved in sugar industry of India are:

Sakthi Sugars Ltd
Sri Sujay Engineering Products
Sri Vijayalakshmi Industries
Murthy Industries
Parveen Perforaters & Allied Industries
Aeromen Engg Co
Kamla Foundry & Workshop
Tinytech Plants
Baba Vishwakarma Engineering Co. (P) Limited

Software Companies in India

2011-02-09T08:15:00.001+05:30

It's the technological revolution that at times brings surprising opportunities for some nations. India, though not among the front runners in terms of economic growth, has successfully utilized such opportunities in the revolution to become an IT hotspot. For the past several years, India has been an increasingly favored destination for customized software development. As a result, a number of software companies in India have come up. Not only the number of players has increased in the Indian IT market, but at the same time, Indian software companies have done considerably well in the global market. Such huge success of software companies in India has given birth to a new speculation – whether other developing countries should imitate Indian example and whether the success of India would constitute a competitive challenge to the software industry of the developed world or not.

The Software Industry in India

With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOM-Deloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008.

The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc.

Reasons behind Success of Indian software companies

There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market.

India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business solutions for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India.

IT Business Sectors

Most of the software companies in India are into varied types of business. There can be several types of business in the IT sectors:

Infrastructure Software: These include OS, middleware and databases.
Enterprise Software: These automate business process in diverse verticals like finance, sales and marketing, production and logistics.
Security Software
Industry-specific Software
Contract Programming

Top Software Companies in India

There are plenty of software companies in India which have been doing well. However, some of the top Indian software companies can be listed as:

Tata Consultancy Services
Wipro Limited
Infosys
HCL Technologies
Tech Mahindra
Patni Computer Systems
i-flex Solutions
MphasiS
L&T Infotech
IBM India

Polymer Industry in India

2011-02-09T08:14:00.001+05:30

Polymers account for around 70% of petrochemicals and that is the reason that they are the most important constituent of theIndian chemical industry.

Polymers are essentially used in the manufacture of various plastic products. In the consumption of the basic petrochemical, polymers form the bulk of demand with a share of around 55%.

The share of polymers in the product mix inIndia for various crackers ranges from 60% to 90%. The segment of polymers have registered a growth of 18% while there have been an increase of 26% in the capacities CAGR.

The various byproducts of polymers are:

Polystyrene
PVC
Poly propylene
LDPE/ LLDPE
HDPE

Polystyrene, a byproduct of polymers has a Rs 435 crore market size. Its market price was around Rs 42.5 per kg in 1999. The major companies involved in the production of polystyrene are Rajasthan Polymers, Mc Dowell & Co., and Supreme Petrochem. PVC, a polymers byproduct, is in demand in theIndian market at 554,000 tons per annum.

This segment has been growing at the rate of 15% yearly. Around 54% of PVC is used in the manufacturing of pipes and 14% is used in the production of cable sheathing. The cost of PVC was Rs. 44.95 per kg in 1999. The main companies involved in the production of PVC are IPCL and RIL.

Polypropylene is a very light weight polymer and that is the main reason why it is used as a substitute for various other polymers. During 1997-1998, around 11,000 tons of poly propylene was imported. Over the last 3 years, the demand for this product has increased by 38% and now stands at 595,000 tons. The price of polypropylene was Rs 47.50 per kg in 1999. It is mainly used in the manufacture of injection molding, BOPP, ropes, twines, and In India, low-density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are also widely used polymers. This segment of polymers is growing at the rate of 12% per year. More than 50% of LDPE/ LLDPE is used by the packaging industry and they were priced at around Rs 54.25 per kg in 1999. The companies which make LDPE/ LLDPE are Oswal, RIL, and IPCL. The second most used polymer inIndia is HDPE, with a share of 22%. The value of its domestic consumption is Rs 2, 123 crore and it is growing at the rate of 15% per year. It cost around Rs. 50 per kg in 1999. HDPE is used in the manufacturing of raffia, blow molding, injection molding, and in the paper industry as well. The companies involved in the production of HDPE are NOCIL, RIL, and IPCL.

Polymers form an important constituent of theIndian petrochemical industry. So efforts must be taken by the industry and the government ofIndia, so that the production and quality of polymers remain top class.

Petrochemical Industry

2011-02-09T08:13:00.001+05:30

The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature. Even a few days back, only four major companies viz. Reliance Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate the industry at a large extent. The recent amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly account for over 70% of country's total petrochemical capacity. However, the scene is a bit different for the downstream petrochemical sector, which is highly fragmented in nature with over 40 companies exist in the market.

The Characteristics of Indian Petrochemical Industry

Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also across the world, is dominated by volatile feedstock prices and sulky demand. India has one of the lowest per capita consumptions of petrochemical products in the world. For example, the per capita consumption of polyester in India lies at 1.4 kg only comparing to 6.6 kg for China and 3.3 kg for the whole world. Similarly, the per capita consumption of polymers is 4 kg in India, whereas the per capita consumption is around 20 kg for the whole world.

The Growth

The petrochemical industry in India came into existence during 1970s. The 1980s and 1990s saw some rapid growths for Indian petrochemical industry. The biggest reason for this growth was the high demand for petrochemicals in India, which grew at an annual rate of 13 to 14% since late 90s. It also called for rapid expansion of capacity. The BMI forecast of average annual growth in India over 2007-2011 is 14 to 16%. However, the industry suffered setbacks during 2008 due to surge in the price of crude oil. It will be tough for Indian petrochemical industry to plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer by 2012 (according to the predictions of the government).

The Present Scenario Presently India has three gas-based and three naphtha-based cracker complexes with a combined annual capacity of 2.9 MMT of ethylene. Besides this, there are also 4 aromatic complexes with a capacity of 2.9 MMT of Xylenes.

The production of 5.06 MMT polymers during FY09 accounted for around 62% of the total production of key petrochemicals. It also achieved 88.5% capacity utilization. The industry also produced 2.52 MMT of synthetic fibres during FY09 with a 73% of capacity utilization.

Key Segments

Petrochemical industry is constituted of the following key segments:

Polymers:

The demand for polymers saw a growth of 13.4% during 2007, comparing to a demand growth of 5.6% in 2006. According to the prediction of Chemicals and Petrochemicals Manufacturers' Association (CPMA), the demand growth for polymer would further be augmented to over 15% in the coming year.
Polyester Intermediates: The combined production of 5 fibre intermediates (CAN, DMT, Caprolactum, MEG and PTA was 3,417 KT during 2007. Among those, PTA and MEG accounted for 69% and 27% respectively, while the rest were DMT, Caprolactum and CAN.
Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a growth of 18% during 2007. According to the prediction of CPMA, it is expected to grow at the same rate in the coming year as well.
Benzene, Toluene, MX and OX: The demands for Toluene and OX saw a contraction rate of 4% and 10% respectively during 2007. However, Benzene and MX saw a positive growth though.

Top Petrochemical Companies in India

Though the Indian petrochemical industry is highly dominated by only a few players, however, there are a number of petrochemical companies in India, doing their share of business. Some of the top companies can be listed as below:

Reliance Industries Ltd.
Haldia Petrochemicals Ltd.
Indian Oil Corporation
Gas Authority of India Limited
National Organic Chemical Industry Ltd.
Bongaigaon Refinery and Petrochemicals Ltd.
Manali Petrochemical Limited
I G Petrochemicals Limited
The Andhra Petrochemicals Limited
Tamilnadu Petroproducts Limited

Jute Industry

2011-02-09T08:08:00.002+05:30

Jute is otherwise known as the 'Golden Fiber' -a plant that produces a fiber, mainly used for sacking and cordage. This raw material is used for sacks, globally and is the most versatile fibers of nature. Different forms of handicrafts also use this fiber. Jute is cheap and important among all textile fibers, after cotton.

Potential of Jute industry

The jute industry has been expanding really fast spanning from a wide range of life style consumer products, with all courtesy to the versatility of Jute. Innovative ways of bleaching, dyeing and finishing processes - the jute industry now provides finished jute products that are softer, have a luster and also an aesthetic appeal.

Changing scenario of Jute industry

At present, jute has been defined as an eco-friendly natural fiber with utmost versatility ranging from low value geo-textiles to high value carpet, apparel, composites, decoratives, upholstery furnishings etc.

In future, a number of jute mills and mini-jute plants have been seen to be engaged in jute products and jute blended yarns. We all know that the uses of jute are manifold, with the traditional usage pattern remaining constricted to packing, hessian and carpet backing.

The jute sector in India engages a key role in the Indian economy, providing direct employment to about 0.26 million workers, and supporting the lives of around 4.0 million farm families. Around 0.14 million people are believed to be engaged in the tertiary sector, that supports the jute industry. Currently it also contributes to exports to the tune of about Rs. 1000 crore.

Jute Production in India

Import of Raw Jute in 2008-09 has dropped by 66% in quantity and by 55% in value terms, whereas import of jute products saw a surge by 23% in quantity and by 47% in value terms when compared with the figures of 2007-08. The EXIM Policy states that import of raw jute and jute products in India should be considered as free items without duty.

Import of jute and jute products in last 3 years

Qty: M.Ton and Value: Rs. /Lakhs

Period	2008 - 2009	2007 - 2008	2006 - 2007
Qty.	Value	Qty.	Value	Qty.	Value
Raw Jute	59,042	8,900.31	1,71,800	19,672.39	94,363	15,031.15
Jute Products	70,935	20,299.48	57,688	13,809.41	60,932	17,162.87

State-wise Jute production in the last 3 years

Period: July-June / Area: '000 Hectares / Qty: '000 Bales

	2006-07		2007-08		2008-09 (Estimated)
State	Area	Production	Area	Production	Area	Production
West Bengal	595	8411	610	8216	584	7900
Bihar	127	1253	131	1251	147	1402
Jharkhand	-	-	-	-	-	-
Assam	58	559	60	657	61	674
Orissa	5	48	6	50	11	104
Uttar Pradesh	-	-	-	-	(0.1)	1
Tripura	1	4	(0.5)	4	1	8
Meghalaya	4	35	4	35	6	50
Nagaland	2	6	3	6	2	21
Others	-	-	-	-	-	-
Total	792	10316	814	10219	812	10160

Investment Industry

2011-02-09T08:06:00.002+05:30

What is Investment?

Investment is referred to as the concept of deferred consumption, which might comprise of purchasing an asset, rendering a loan, keeping the saved funds in a bank account such that it might generate lucrative returns in the future. The options of investments are huge; all of them having different risk-reward trade off. This concludes that the investment industry is really broad and that is why understanding the core concepts of investments and accordingly analyzing them is essential. After thorough understanding of the investment industry, can an investor create and manage his own investment portfolio such that the returns are maximized with the least risk exposure.

Types of Investments in the investment industry

As stated earlier, the investment industry is huge; therefore the types of investments are also varied. Different types of investments are: Cash investments: Cash investments comprise of savings bank accounts, certificates of deposit (CDs) and treasury bills (TBs). All these types of investments render a low interest rate and prove to be quite risky during times of inflation.

Debt securities: This type of investment gives returns in the form of fixed periodic payments and the fixed capital appreciate at maturity. This is safe bait for the investors in the investment industry and has always proved to be the risk free investment tool. Though, it is generally low in risks, the returns are also lower than the other peer securities.

Stocks: Investors can also buy stocks (equities) from the secondary markets and be a part of any business corporates that are listed in the bourses. By this way, one can become the part of the profits that the company generates. But one should remember that stocks are generally more volatile and carries more risk than bonds.

Mutual funds: They are usually a collection of stocks and bonds that a fund manager selects for an investor such that the returns are maximum. The investor does not have to track the investment, be it a bond, stock- or index-based mutual funds.

Derivatives: Derivatives are financial contracts, whose value is derived from the value of the underlying assets like equities, commodities and bonds. They can take the form of futures, options and swaps. Investors choose derivatives as they are used to minimize the risk of loss that result from variations in the underlying asset values.

Commodities: The items that are traded on the commodities market are agricultural and industrial commodities and they need to be standardized. Commodities trading have always been giving high returns and thus they are the riskiest of all investment options. One, who trades in commodities, requires specialized knowledge and analytical capabilities.

Real estate: Investing in real estate has to be a long term affair. Funds get hooked into the real estate sector for a considerable time period.

The investment industry in India - how is it going? India's equity market has doubled since March 2009, with ADRs like Dr. Reddy's Laboratories and Tata Motors only getting doubled and tripled. So, do we say that the Indian investment industry is overheated at the moment or may we infer that the stocks are fairly valued?

Warren Buffett has always mentioned that investment in India should always be a long-term story - as the industry has been growing from an emerging market to a developed one. The next 10 years in India will surely give good returns.

India's GDP growth would be around 6.5% to 7% in 2010. The sustainable growth rate of India would however hover around 7%. Before becoming a mature economy, India has another 20 to 40 years to spare.

Where to invest in India?

The financial sector in India, specifically the banking stocks have been doing well now. The health of the Indian banks seems to be strong and a lot of growth is expected in the organic frontier. The IT stocks too have been faring well and that is why it is advisable that the investors invest in stocks of quality companies that have a good earnings track record. The other choice of stocks has been the consumer goods stocks, auto stocks, agriculture-related stocks. Some of the favorite scrips that investors can look forward to are Infosys Technologies, HDFC Bank, ICICI Bank.

Challenges of Indian Investment industry

The investing story in India has not been always that smooth. Pitfalls are sure to co-exist. The main restraint on India's growth now happens to be its infrastructure. On the other hand, infrastructure is India's biggest opportunity as well. The fiscal deficit of India also poses a big threat to the investment industry in India. For an emerging economy like India, it is recommended that an investor always balances the unique risks against the potential for high long-term growth. Accordingly the decision for investment should be made.

Of late, the Indian economy is turning out to be extremely conducive in terms of domestic and foreign investments. India Investments has been the major propelling force towards India's attainment of self-sustained growth by way of rapid industrialization. The pioneers of the investment industry has been Foreign Direct Investment (FDI) and Investments made by NRIs.

Foreign Direct Investments in India has been gearing up momentum every passing day. So, to view an economy which is entirely open to the global markets, the investment industry in India should be groomed in a manner that the maximum returns are achieved. It is advisable that the investment industry's potential should neither be overestimated nor underestimated. We should know how to deal with the complexities of the investment industry and grow along with it.

Insurance Company

2011-02-09T08:04:00.001+05:30

It is due to globalization, deregulation and also terrorist attacks; that the insurance industry is undergoing a massive change and the metamorphosis has been noteworthy in the last few decades.

Clearing basics

Before we begin the analysis of Indian insurance industry, let us clear some basics on insurance.

In the words of a layman, insurance means managing risk. For instance, in life insurance segment, the insurance company tries to manage mortality (death) rates among the wide array of clients.
The insurance company works in a manner by collecting premiums from policy holders, investing the money (usually in low risk investments), and then reimbursing this same money once the person passes away or the policy matures. The greater the probability for a person to have a shorter life span than the average mark, the higher premium that person has to pay. The case is the same for all other types of insurance, including automobile, health and property.
Ownership of insurance companies is of two types:
Shareholder ownership
Policyholder ownership

Types of Insurance

Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
Health Insurance - Insurance against expenses incurred through illness of the insured.
Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.

Challenges facing Insurance Industry

Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants.
Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off.
Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums.
Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services – be it auto, home, commercial, health or life insurance.

How to choose an insurance company?

There are many factors to probe into when an investor chose an insurance company.

The consumers as well as the investors should only focus on the insurer's financial strength and capability to meet ongoing responsibilities to its policyholders.
The fundamentals of the insurance company should be strong and should not indicate a poor investment opportunity as this might also deter growth.

Indian Telecom Industry

2011-02-09T08:02:00.001+05:30

At 110.01 million connections ' Indian Telecom Industry' is the fifth largest and fastest growing in the world. The subscriber base has grown by 40% in 2005 and is expected to reach 250 million in 2007.

Over the last 3 years, two out of every three new telephone connections were wireless. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to grow at 2.5 million new subscribers every month in 2007. The wireless subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in FY 2004 -2005. The wireless technologies currently in use ' Indian Telecom Industry ' are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country. And the numbers are still growing for ' Indian Telecom Industry '. ' Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence. Three types of players exists in ' Telecom Industry India ' community –

State owned companies like - BSNL and MTNL.
Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.
Foreign invested companies like - Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.

The ' Indian Telecom Industry ' services is not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc. The bottlenecks for ' Indian Telecom Industry ' are:

Slow reform process.
Low penetration. Service providers bears huge initial cost to make inroads and achieving break-even is difficult.
Huge initial investments.
Limited spectrum availability and interconnection charges between the private and state operators.

The Government Broadband Policy 2004, aims at 9 million broadband connections and 18 million internet connections in 2007. ' Indian Telecom Industry ' is currently expected to contribute nearly 1% to India's GDP which is heartening and estimated to grow further and brighten the ' Scenario of Indian Telecom Industry '

Indian Pharmaceutical Industry

2011-02-09T08:01:00.002+05:30

The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine. Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10.76 billion and this is likely to increase at a compound annual growth rate of 9.9 per cent until 2010 and subsequently at 9.5 per cent till the year 2015.

Industry Trends

The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic Product growth
Globally, India ranks third in terms of manufacturing pharma products by volume
The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 % till 2015
In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe followed by Central and Eastern Europe, Africa and Latin America
The Indian vaccine market which was worth US$665 million in 2007-08 is growing at a rate of more than 20%
The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by 2012
The Indian drug and pharmaceuticals segment received foreign direct investment to the tune of US$ 1.43 billion from April 2000 to December 2008

Challenges

Every industry has its own sets of advantages and disadvantages under which they have to work; the pharmaceutical industry is no exception to this. Some of the challenges the industry faces are:

Regulatory obstacles
Lack of proper infrastructure
Lack of qualified professionals
Expensive research equipments
Lack of academic collaboration
Underdeveloped molecular discovery program
Divide between the industry and study curriculum

Government Initiatives

The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are:

Pharmaceutical units are eligible for weighted tax reduction at 150% for the research and development expenditure obtained.
Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government.
The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research
The Department of Pharmaceuticals is mulling the creation of drug research facilities which can be used by private companies for research work on rent

Pharma Export

In the recent years, despite the slowdown witnessed in the global economy, exports from the pharmaceutical industry in India have shown good buoyancy in growth. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8.25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of India's pharmaceutical growth during 2009-2010.

Key players in Indian Pharmaceutical Industry

There are several national and international pharmaceutical companies that operate in India. Most of the country's requirements for pharmaceutical products are met by these companies. Some of them are briefly described below:

Ranbaxy Laboratories Limited is the biggest pharmaceutical manufacturing company in India. The company is ranked at the 8th position among the global generic pharmaceutical companies and has presence in 48 countries including world class manufacturing facilities in 10 countries and serves to customers from over 125 countries. Ranbaxy Laboratories 2009-2010 Q3 Net Profit Results showed a profit of Rs 116.6 crore as compared to Rs 394.5 crore deficit, recorded during the corresponding period last fiscal.
Dr. Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals both in India and abroad. The company has 60 active pharmaceutical ingredients to manufacture drugs, critical care products, diagnostic kits and biotechnology products. The company has 6 FDA plants that produce active pharma ingredients and 7 FDA inspected and ISO 9001 and ISO 14001 certified plants. Dr. Reddy's Q1 FY10 result shows the revenues of the company at Rs. 18,189 million which is up by 21%. During this quarter the company introduced 24 new generic products, applied for 22 new generic product registrations and filed 4 DMFs.
Cipla is an Indian pharmaceutical company renowned for the manufacture of low cost anti AIDS drugs. The company's product range comprises of anthelmintics, oncology, anti-bacterials, cardiovascular drugs, antibiotics, nutritional supplements, anti-ulcerants, anti-asthmatics and corticosteroids. Cipla also offers other services like quality control, engineering, project appraisal, plant supply, consulting, commissioning and know-how transfer, support. For the financial year 2008-09 the company registered an increase of 22% in sales and other income over the previous year.
Nicholas Piramal is the second largest pharmaceutical healthcare company in India. The brands manufactured by the company include Gardenal, Ismo, Stemetil, Rejoint, Supradyn, Phensedyl and Haemaccel. Nicholas Piramal has entered into join ventures and alliances with several international corporations like Cheissi, Italy; IVAX Corp; UK, F. Hoffmann-La Roche Ltd., Allergan Inc., USA etc.
Glaxo Smithkline (GSK) is a United Kingdom based pharma company; it is the world's second largest pharmaceutical company. The company's portfolio of pharma products consist of central nervous system, respiratory, oncology, vaccines, anti-infectives and gastro-intestinal/metabolic products among others. On November 2009, the FDA had announced that the H1N1 vaccine manufactured by GSK would join the list of the four vaccines approved.
Zydus Cadila also known as Cadila Healthcare is an Indian pharmaceutical company located in Gujarat. The company's 1QFY2010 results show the net sales at Rs880.3cr which is higher than the estimated Rs773cr. The net profit was Rs124.8cr which was increase of 39%; the increase was on account of higher sales and improvement in the OPM.

India's Domestic Pharmaceutical Market (12 Months Ended January 2009)

Company	Size ($ Billion)	Market Share (%)	Growth Rate (%)
Total Pharma Market	6.9	100.0	9.9
Cipla	.36	5.3	13.4
Ranbaxy	.34	5.0	11.5
Glaxo Smithkline	.29	4.3	-1.2
Piramal Healthcare	.27	3.9	11.7
Zydus Cadila	.24	3.6	6.8
Source: ORG IMS

Future Scenario

With several companies slated to make investments in India, the future scenario of the pharmaceutical industry in looks pretty promising. The country's pharmaceutical industry has tremendous potential of growth considering all the projects that are in the pipeline. Some of the future initiatives are:

According to a study by FICCI-Ernst & Young India will open a probable US$ 8 billion market for MNCs selling expensive drugs by 2015
The study also says that the domestic pharma market is likely to reach US$ 20 billion by 2015
The Minister of Commerce estimates that US$ 6.31 billion will be invested in the domestic pharmaceutical sector
Public spending on healthcare is likely to raise from 7 per cent of GDP in 2007 to 13 per cent of GDP by 2015
Dr Reddy's Laboratories has tied up with GlaxoSmithKline to develop and market generics and formulations in upcoming markets overseas
Lupin, a Mumbai based pharmaceutical company is looking to tap opportunities of about US$ 200 million in the US oral contraceptives market
Due to the low cost of R&D, the Indian pharmaceutical off-shoring industry is designated to turn out to be a US$ 2.5 billion opportunity by 2012

India Textile Industry

2011-02-09T07:57:00.002+05:30

India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.

India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Various Categories

Indian textile industry can be divided into several segments, some of which can be listed as below:

Cotton Textiles
Silk Textiles
Woolen Textiles
Readymade Garments
Hand-crafted Textiles
Jute and Coir

The Industry

India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades:

Year	Area in lakh hectares	Production in lakh bales of 170 kgs	Yield kgs per hectare
1950-51	56.48	30.62	92
1960-61	76.78	56.41	124
1970-71	76.05	47.63	106
1980-81	78.24	78.60	170
1990-91	74.39	117.00	267
2000-01	85.76	140.00	278
2001-02	87.30	158.00	308
2002-03	76.67	136.00	302
2003-04	76.30	179.00	399
2004-05	87.86	243.00	470
2005-06	86.77	244.00	478
2006-07	91.44	280.00	521
2007-08	94.39	315.00	567
2008-09	93.73	290.00	526

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet managed to retain its position as world's second highest cotton producer.

Strengths

Vast textile production capacity
Large pool of skilled and cheap work force
Entrepreneurial skills
Efficient multi-fiber raw material manufacturing capacity
Large domestic market
Enormous export potential
Very low import content
Flexible textile manufacturing systems

Weaknesses

Increased global competition in the post 2005 trade regime under WTO
Imports of cheap textiles from other Asian neighbors
Use of outdated manufacturing technology
Poor supply chain management
Huge unorganized and decentralized sector
High production cost with respect to other Asian competitors

Cotton Exports from India

Year	Quantity (in lakh bales of 170 kgs)	Value (in Rs./Crores)
1996-97	16.82	1655.00
1997-98	3.50	313.62
1998-99	1.01	86.72
1999-00	0.65	52.15
2000-01	0.60	51.43
2001-02	0.50	44.40
2002-03	0.83	66.31
2003-04	12.11	1089.15
2004-05	9.14	657.34
2005-06	47.00	3951.35
2006-07	58.00	5267.08
2007-08	85.00	8365.98
2008-09	50.00	N.A.

Year	Quantity (in lakh bales of 170 kgs.)	Value (Rs./Crores)
1996-97	0.30	56.42
1997-98	4.13	497.93
1998-99	7.87	772.64
1999-00	22.01	1967.92
2000-01	22.13	2029.18
2001-02	25.26	2150.01
2002-03	17.67	1789.92
2003-04	7.21	880.10
2004-05	12.17	1338.04
2005-06	5.00	695.77
2006-07	5.53	752.29
2007-08	6.50	986.33
2008-09	7.00	N.A.

Current Facts on India Textile Industry

India retained its position as world’s second highest cotton producer.
Acreage under cotton reduced about 1% during 2008-09.
The productivity of cotton which was growing up over the years has decreased in 2008-09.
Substantial increase of Minimum Support Prices (MSPs).
Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices.
Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

India Steel Industry

2011-02-09T07:54:00.001+05:30

India is the fifth largest producer of steel in the world. India Steel Industry has grown by leaps and bounds, especially in recent times with Indian firms buying steel companies overseas. The scope for steel industry is huge and industry estimates indicate that the industry will continue will to grow reasonably in the coming years with huge demands for stainless steel in the construction of new airports and metro rail projects. The government is planning a massive enhancement of the steel production capacity of India with the modernization of the existing steel plants.

Industry Statistics

Government targets to increase the production capacity from 56 million tones annually to 124 MT in the first phase which will come to an end by 2011 - 12. Currently with a production of 56 million tones India accounts for over 7% of the total steel produced globally, while it accounts to about 5% of global steel consumption. The steel sector in India grew by 5.3% in May 2009. Globally India is the only country to post a positive overall growth in the production of crude steel at 1.01% for the period of January - March in 2009.

Export

About 50% of the steel produced in India is exported. India's export of steel during April - December 2008 was 64.4 MT as against 9.7 MT in December 2007. In February 2009, steel export increased by 17% to 12.6 MT from 10.8 MT in the same month last year. More than 50% of steel from India is exported to China. The Government's decision to reduce export duty on iron ore lumps from 15% to 5% has given a major boost to the export of steel.

Hurdles

Power shortage hampers the production of steel
Use of outdated process for production
Lags behind in the production of stainless steel
Deficiency of raw materials required by the industry
Labor productivity is low. It is 144 tons per worker per year against 600 tons in Western Europe as per estimates
Inadequate shipment capacity and transport structure

Strengths

There are many strong points of the industry that makes it one of the leading names in the global steel industry. The rate of labor wage in India is among one of the lowest in the world thereby making large scale production feasible. The boom witnessed in the automobile industry has ensured that the demand for steel is increasing gradually and will continue to do so in the near future. There is huge manpower in India which is another reason why steel production in India is high and the industry is doing pretty well both nationally and internationally.

Investments

Numerous steel companies some major projects in the pipeline to invest in India Steel industry. Steel companies have earmarked more than 100 million USD for the setting up of sponge iron units in Koppal and Bellary in Karnataka. As per Investment Commission of India more than 30 billion USD are in the pipeline for investment over the next five years.

India IT Industry

2011-02-09T07:52:00.002+05:30

The Indian information technology (IT) industry has played a major role in placing India on the international map. The industry is mainly governed by IT software and facilities for instance System Integration, Software experiments, Custom Application Development and Maintenance (CADM), network services and IT Solutions. According to Nasscom's findings Indian IT-BPO industry expanded by 12% during the Fiscal year 2009 and attained aggregate returns of US$ 71.6 billion. Out of the derived revenue US$ 59.6 billion was solely earned by the software and services division. Moreover, the industry witnessed an increase of around US$ 7 million in FY 2008-09 i.e. US$ 47.3 billion against US$ 40.9 billion accrued in FY 2008-09

IT Outsourcing in India

As per NASSCOM, IT exports in business process outsourcing (BPO) services attained revenues of US$ 48 billion in FY 2008-09 and accounted for more than 77% of the entire software and services income. Over the years India has been the most favorable outsourcing hub for firm on a lookout to offshore their IT operations. The factors behind India being a preferred destination are its reasonably priced labor, favorable business ambiance and availability of expert workforce. Considering its escalating growth, IBM has plans to increase its business process outsourcing (BPO) functions in India besides employing 5,000 workforces to assist its growth.

In the next few years, the industry is all set to witness some multi-million dollar agreements namely:

A 5 year agreement between HCL Technologies and News Corp for administering its information centers and IT services in UK. As per the industry analysts, the pact is estimated to be in the range of US$ 200-US$ 250 million
US$ 50 million agreement between HCL Technologies and Meggitt, UK-based security apparatus manufacturer, for offering engineering facilities.
Global giant Walmart has short listed there Indian IT dealers namely Cognizant Technology Solutions, UST Global and Infosys Technologies for a contract worth US$ 600 million

India's domestic IT Market

India's domestic IT Market over the years has become one of the major driving forces of the industry. The domestic IT infrastructure is developing contexts of technology and intensity of penetration.

In the FY 2008-09, the domestic IT sector attained revenues worth US$ 24.3 billion as compared to US$ 23.1 billion in FY 2007-08, registering a growth of 5.4%. Moreover, the increasing demand for IT services and goods by India Inc has strengthened the expansion of the domestic market with agreements worth rising up extraordinarily to US$ 100 million. By the FY 2012, the domestic sector is estimated to expand to US$ 1.7 billion against the existing from US$ 1 billion.

Government initiative in India's domestic IT Market

The Indian government has established a National Taskforce on IT with an aim of formatting a durable National IT Policy for India
Endorsement of the IT Act, which offers an authorized structure to assist electronic trade and electronic operations.

Major investments in India's domestic IT Market

According to Andhra Pradesh Government the state's SEZs and Software Technology Parks of India (STPI) will witness an investment of US$ 3.27 billion in the next few years.
VMware Inc, San Francisco-based IT firm is looking forward to invest US$ 100 million by 2010 in India.
EMC Corporation's total Indian assets is expected to reach US$ 2 billion by 2014

Future of Indian IT Industry

The Indian IT sector persists to be one of the flourishing sectors of Indian financial system indicating a speedy expansion in the coming years. As per NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion by 2020 out of which the domestic sector will account for US$ 50 billion in earnings.

In total the export and domestic IT sector are expected to attain profits amounting to US$ 225 billion along with new prospects from BRIC nations and Japan for its outsourcing operations.

India Banking Jobs

2011-02-09T07:51:00.000+05:30

With a steady growth in consumer banking sector, India Banking Jobs are emerging as the most sought after by the job seekers. Indian banking industry not only facilitates the community needs but also triggers economic expansion by financing infrastructure and other developments.

Modern banking involves the understanding of client's requirements both in terms of his personal as well business plans apart from assisting customers in selecting the right investment alternative available in the market.

If you are looking forward to a career in banking industry and you have the right mix of strong analytical and mathematical skills, then you have a variety of career options open for you.

Career in Banking industry

The idea of service is persistently highlighted by the banking industry and service is the chief ingredient of success of the sector. You can opt for the following job profiles in banking industry:

Financial Managers: Financial Managers formulate financial policies and also help in its implementation. They make business forecasts. Their main job is to manage the different branches of the bank. Financial Manager formulate strategies so as to minimize losses in the insurance sector of banks. The financial Manager prepares financial reports that reflect the financial health of the ban. along with this the Financial managers also monitor the flow of cash. The financial managers can work as controller, treasurer, credit managers, treasurer, cash mangers, and insurance or risk managers.
Bank Tellers: The job of the Bank Teller is to focus on the minute details as in verifying the name, date and identity of the customers who are at the receiving end.
Bill and Account Collectors: The Jobs in Bank Industry of the Bill and Account Collector is to collect the money overdue from the debtors.
Loan Officers: The Loan Officer checks the eligibility of all the individuals seeking loans from the Bank. He checks their credit worthiness, i.e. their probability of loan repayment. After making a thorough evaluation of the loan application of the clients, does the loan officer recommends or approves them. Loans may be commercial real estate or credit loans.
Book Keeping And Auditing Clerks: The job of the Auditing Clerk is to record and classify financial data. They keep on calculating and keeping track of the financial records.
Financial Service Representative: The Jobs in Bank Industry of the Financial Service Representative is to promote different products and services offered by the banks. They are also responsible for opening and closing accounts and keeping a record of all the financial transactions.

Current Jobs In Banks 2010

Name of the Bank	Vacancies	Designations	Eligibility	Application Dates
Syndicate Bank	1000	Probationary Clerks	Age Group - 18yrs to 28yrs Minimum 60% marks in graduation and higher secondary Excellent knowledge of English and vernacular Basic knowledge of computers	From 13.04.2010 to 12.05.2010
Aryavart Gramya Bank (AGB)	130	40 Officials & 90 Probationary Clerks	Age Group - 18yrs to 28yrs Graduate from an affiliated university Should be proficient in English and local languages Must have a sound knowledge in MS office internet and networking.	Till 17.05.2010
Central Bank of India	500	Probationary Officers	Age Group - 21 - 30yrs Graduate from an affiliated university with minimum 55% of marks Diploma in computer applications from a renowned training institute	From 6.05.2010 to 5.06.2010
HDFC Bank	Various designations	Team Leader, Service Support Managers, Sales Manager, Branch Heads, etc	Varies as per their designations For detailed information Visit: http://www.hdfcbank.com/aboutus/careers/career.htm

Dairy Industry

2011-02-09T07:47:00.002+05:30

The highest milk producer in the entire globe – India boasts of that status. India is otherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and mil products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry.

The main aim of the Indian dairy industry is only to better manage the national resources to enhance milk production and upgrade milk processing using innovative technologies.

Potential for investment in the dairy industry

Some areas of Indian dairy industry can be toned up by the evocation of differentiated technologies and equipment from overseas. These include:

Raw milk handling: The raw milk handling needs to be elevated in terms of physicochemical and microbiological properties of the milk in a combined manner. The use of clarification and bactofugation in raw milk processing can aid better the quality of the milk products.
Milk processing: Better operational ratios are required to amend the yields and abridge wastage, lessen fat/protein losses during processing, control production costs, save energy and broaden shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points) would help produce milk products adapting to the international standards.
Packaging: Another area that can be improved is the range of packing machines for the manufacture of butter, cheese and alike. Better packaging can assist in retaining the nutritive value of products packed and thus broaden the shelf life. A cold chain distribution system is required for proper storage and transfer of dairy products.
Value-added products: There's vast scope for value-added products like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets to capture the dairy market in India.

The Indian dairy industry has aimed at better mananamegemt of the national resources to enhance milk production and upgrade milk processing involving new innovative technologies. Multinational dairy giants can also make their foray in the Indian dairy market in this challenging scenario and create a win-win situation for both.

India's Milk Product Mix

Fluid Milk	46.0%
Ghee	27.5%
Butter	6.5%
Curd	7.0%
Khoa (Partially Dehydrated Condensed Milk)	6.5%
Milk Powders, including IMF	3.5%
Paneer & Chhana (Cottage Cheese)	2.0%
Others, including Cream, Ice Cream	1.0%

Overview of the Indian Dairy Sector

The country is the largest milk producer all over the world, around 100 million MT
Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately equals combined output of paddy and wheat!!)
1/5thof the world bovine population
Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows)
Immensely low productivity, around 1000 kg/year (world average 2038 kg/year)
Large no. of unproductive animals, low genetic potency, poor nutrition and lack of services are the main factors for the low productivity
There are different regions – developed, average, below average (eastern states of Orissa, Bihar and NE region) in the dairy industry.

Communication Industry in India

2011-02-09T07:44:00.002+05:30

The Communication Industry in India is one of the rapidly emerging sectors in India and is estimated to surface as the second biggest international telecom market. As per the report carried out by Telecom Regulatory Authority of India (TRAI), Indian communication industry has registered a 3.5% increase in its total telecom subscribers in December 2009. The sector touched 562.21 million in its total number of subscribers within a month, against 543.20 million in November 2009.

The growth in communication industry was triggered by an increase in the revenues generated from both landline and mobile facilities. On December 31, 2009 the sector earned the revenue of USD 8.56 billion. As per the Business Monitor International report, the nation is all set to include 8 to 10 million cellular phone subscribers on monthly basis. At this pace the communication industry is expected to encompass more than half of India's population i.e. 612 million cellular phone subscribers by mid 2012.

In addition, as per a research carried out by Nokia, the communications sector is estimated to surface as the biggest driving component in India's GDP with a contribution of about 15.4% by the FY2014.

India as an emerging Value-Added Services Market

As per a research conducted by Stanford University, Indian mobile value-added services (MVAS) are expected to reach USD 2.74 bn by the FY2010. To benefit from the emerging MVAS market in India, Reliance Communications and Bharti Airtel Limited are all set to introduce online cellular phone applications in Indian retail stores. While Bharti Airtel will offer around 1,250 applications, Reliance Communications' applications will soon be accessible to its GSM customers by Feb 2010.

India as an emerging telecom equipment manufacturing Market

The manufacturing of Cellular phone in India is predicted to expand at an annual rate of 28.3% till the FY 2011 which can be translated as a production of 107 million mobile handsets by 2010. The production would automatically generate profits and is predicted to increase at an annual rate of 26.6% till 2011, reaching the target of USD13.7 billion.

Chief Investments in the Communication Industry in India

Over the past one decade, the flourishing Indian Communication industry has been successful in drawing the attention of conglomerates that have invested and are willing to invest more in the sector. With the influx of new telecom giants in Indian market, the investments are likely to gain immense momentum:

Investment of USD 6 bn by Vodafone Essar for the next 3 fiscal years in order to expand its list of cellular phone subscribers to 100 million against the existing 40 million.
By 2010, Reliance Communications (RCom) is expecting to increase the total number of telecom towers by constructing 56,596 telecom towers and attaining the preset target of 100,000.
Telenor, Norway based telecom giant has purchased 7% of shares in Unitech Wireless and now possesses 67.25% by bringing in an investment of USD 431.70 million
Indian government owned telecom player, BSNL will invest USD1.17 billion in its WiMax scheme
A proposal of foreign direct investment worth USD 660.1 million by Federal Agency for State Property Management of the Russian Federation has been recently approved by the Indian government. The Agency would be acquiring 20% stake in Sistema-Shyam after bringing in the investment.
A USD 1 billion investment will be brought in by Tata Teleservices in its newly introduced GSM facility Tata DoCoMo.

Future of Communication Industry in India

Indian Communication Industry has a flourishing future in its value-added services market. The pre-set target of the 11th plan from FY 2007 - 12 is to provide 600 million cellular phone connectivity aided by an investment of USD 74 billion.

Moreover, it is estimated that by the FY 2012 the profits generated by Indian Communication Industry will touch USD 55 billion against the current USD 31 billion.

Cement Industry in India

2011-02-09T07:19:00.000+05:30

India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT), has got a huge cement industry. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12.

The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India. In the present year, the Indian cement companies have produced 11 MT cement during April-September 2009. It took the total cement production in FY09 to 231 MT.

Industry Background

The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in the year 1956, established to ensure fair price model for consumers as well as manufacturers. Later in 1977, government authorized new manufacturing units (as well as existing units going for capacity enhancement) to put a higher price tag for their products. A couple of years later, government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low cost plants.

Cement industry, in any country, plays a major role in the growth of the nation. Cement industry in India was under full control and supervision of the government. However, it got relief at a large extent after the economic reform. But government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy like India, there is always large possibility of expansion of cement industry.

Cement Industry in India

Jobs in Cement Industry
L & T Cement Plants
ACC Ltd. Cement Plants
CCI Cement Plants
Export of Indian Cement
Types of Cement in India
Gujarat Ambuja Plants in India
Top 10 Companies
Top 10 Cement Companies
Mangalam Cement

J K Lakshmi Cement
J K Cement
Madras Cement
India Cements
Sanghi Industries
Dalmia Cement
ITD Cementation India
Dalmia Cement Bharat
Gujarat Ambuja Cements

Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in India. In fact the domestic demand of cement has surpassed the economic growth rate of India. The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement consumption, the state of Maharashtra leads the table with 12.18% consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the production of cement in India was 101.04 MT comparing to 95.05 MT during the same period in the previous year. During October 2009, the total cement production in India was 12.37 MT compared to a production of 11.61 MT in the same month in the previous year. The cement companies are also increasing their productions due to the high market demand. The cement companies have seen a net profit growth rate of 85%. With this huge success, the cement industry in India has contributed almost 8% to India's economic development.

Technology Up-gradation

Cement industry in India is currently going through a technological change as a lot of upgradation and assimilation is taking place. Currently, almost 93% of the total capacity is based entirely on the modern dry process, which is considered as more environment-friendly. Only the rest 7% uses old wet and semi-dry process technology. There is also a huge scope of waste heat recovery in the cement plants, which lead to reduction in the emission level and hence improves the environment.

Cement Despatches

Cement industry in India has successfully maintained almost total capacity utilization levels, which resulted in maintaining a 10% growth rate. In 2006-07, the total despatch was 155 MT, which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement despatch of 12.22 MT, which was almost 9% higher than the total cement despatch of 11.21 MT in the same month in the previous year.

	2008-09 (Apr-Oct) (in MT)	2007-08 (Apr-Oct) in MT
Production	101.04	95.05
Despatches (Excluding Export)	100.24	94.33
Export	1.46	2.16
Capacity Utilization (%)	85	93

Major Players in Indian Cement Industry

There are a number of players prevailing in the cement industry in India. However, there are around 20 big names that account for more than 70% of the total cement production in India. The total installed capacity is distributed over around 129 plants, owned by 54 major companies across the nation.

Following are some of the major names in the Indian cement industry:

Company	Production	Installed Capacity
ACC	17,902	18,640
Gujarat Ambuja	15,094	14,860
Ultratech	13,707	17,000
Grasim	14,649	14,115
India Cements	8,434	8,810
JK Group	6,174	6,680
Jaypee Group	6,316	6,531
Century	6,636	6,300
Madras Cements	4,550	5,470
Birla Corp.	5,150	5,113

Mergers and Acquisitions in Cement Industry in India

UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest cement company in India.
World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a cost of US$ 124.91 million.
Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries had in Shree Digvijay Cement.
French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of US$ 14.35 million.
Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The company utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that.

Recent Investments in the Indian Cement Industry

In a recent announcement, the second largest cement company in South India, Dalmia Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3 years to add 10 MT capacity.
Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1 billion.
India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion.
Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement plant in Maharashtra. It will invest US$ 463.2 million for that.
Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 221.36 million.
Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT cement plant in Orissa.

Banks in India

2011-02-09T00:03:00.002+05:30

Vision of Banks in India

The banking scenario in India has already gained all the momentum, with the domestic and international banks gathering pace. The focus of all banks in India has shifted their approach to 'cost', determined by revenue minus profit. This means that all the resources should be used efficiently to better the productivity and ensure a win-win situation. To survive in the long run, it is essential to focus on cost saving. Previously, banks focused on the 'revenue' model which is equal to cost plus profit. Post the banking reforms, banks shifted their approach to the 'profit' model, which meant that banks aimed at higher profit maximization.

Focus of banks in India

The banking industry is slated for growth in future with a more qualitative rather than quantitative approach. The total assets of all scheduled commercial banks by end-March 2010 is projected to touch Rs 40,90,000 crore. This is going to comprise around 65% of GDP at current market prices as compared to 67% in 2002-03. The bank's assets are estimated to grow at an annual composite rate of growth of 13.4% during the rest of the decade as against 16.7% between 1994-95 and 2002-03.

Barring the asset side, on the liability perspective, there will be huge additions to the capital base and reserves. People will rely more on borrowed funds, pace of deposit growth slowing down side by side. However, advances and investments would not see a healthy growth rate.

Consolidation of Banks in India

Would the banking industry in India get opened up for more international competition? India would see a large number of global banks controlling huge stakes of the banking entities in the country. The overseas banking units would bring along with it capital, technology, and management skills. This would lead to higher competition in the banking frontier and ensure greater efficiency. The FDI norms in the banking sector would give more leverage to the Indian banks.

Thus, a consolidation phase in the banking industry in India is expected in the near future with mergers and acquisitions gathering more pace. One might also see mergers between public sector banks or public sector banks and private banks. Credit cards, insurance are the next best strategic places where alliances can be formed.

Future challenges of Banks in India

The Indian banks are hopeful of becoming a global brand as they are the major source of financial sector revenue and profit growth. The financial services penetration in India continues to be healthy, thus the banking industry is also not far behind. As a result of this, the profit for the Indian banking industry will surely surge ahead. The profit pool of the Indian banking industry is probable to augment from US$ 4.8 billion in 2005 to US$ 20 billion in 2010 and further to US$ 40 billion by 2015. This growth and expansion pace would be driven by the chunk of middle class population. The increase in the number of private banks, the domestic credit market of India is estimated to grow from US$ 0.4 trillion in 2004 to US$ 23 trillion by 2050. Third largest banking hub of the globe by 2040 - is that vision too far away?

Bank Loans in India

2011-02-09T00:01:00.002+05:30

Due to the unequal distribution of wealth, India has arrived at a situation where the affluent class gets richer and richer and the underprivileged becomes poorer. To bridge this financial gap and to satisfy their day to day requirements, Bank plays a vital role by offering various loans to the finance seekers. Hence every borrower should have prior knowledge on the various Bank Loans in India, which are eligible for meeting their financial objectives.

Types of Bank Loans Offered by Banks in India

The various Loans offered by Banks in India are mentioned as under:

Personal Loans

Personal Bank Loans are the credits which a bank offers to its customer to meet his instant personal requirements ranging from home renovation to purchasing of new laptop, a getaway with family or for reimbursing the credit card liabilities, for buying a new car or for child's education, etc. Personal loan simplifies the cash flow of the customer besides handling its immediate needs.

Personal Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 58 years respectively	25 years and 65 years respectively
Maximum Annual Income	Rs. 1,20,000	Rs. 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	Rs 50,000 to	Rs 15,00,000
	Rs. 50,000 to	Rs. 15,00,000
Loan Tenure	1 years to 7 years	1 years to 7 years
Interest Rates	12-24%.	12-24%.
Mode of Repayment	Post-dated cheques or Standing orders to debit from personal A/c	Post-dated cheques or Standing orders to debit from personal A/c

Home Loans

To buy a dream home is the dream of every person. Home Loan has helped in changing every Indian's dream into reality. However, the every increasing property rates and escalating rates of interest sometimes act as an obstacle. Therefore, before opting for a home loan it is advisable to check every prospect of the product.

Home Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 65 years respectively	21 years and 70 years respectively
Maximum Annual Income	Rs. 1,00,000	Rs. 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	Rs 2,00,000 to	Rs 2,00,00,000
	Rs 2,00,000 to	Rs 2,00,00,000
Loan Tenure	5 years to 20 years	5 years to 20 years
Interest Rates	9-16%	9-16%

Tax Benefits on Home Loans: Any person who opts for home loan is entitled for tax benefits under Income Tax Act, 1961 on principal and the interest amount in the form of deductions from the chargeable earnings.

Bank Loans against Property

Property Loan or Loan against property is a kind of loan which is allowed by the bank on the condition of keeping the customer's current assets as a security with them. These loans are very useful when other resources of financing get exhausted.

It is significant to recognize that a loan against property is not similar to mortgage. While loan against property is obtained from the bank by allocating customer's current assets as a security against the credit, a mortgage is an instrument for purchasing an asset. On the basis of the current market situations, the paid up cost of the asset and other aspects, the cost of the credit against asset can range anywhere from 40% to 60% of the asset costs.

Loans against Property

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 60 years respectively	21 years and 65 years respectively
Maximum Annual Income	Rs. 1,20,000	Rs. 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	Rs 2,00,000 to	Rs 1,50,00,000
	Rs 2,00,000 to	Rs 1,50,00,000
Loan Tenure	1 years to 15 years	1 years to 15 years
Loan to cost ratio	60% of residential cost	50% of commercial cost
60% of residential cost	50% of commercial cost
Tax Rebate	NIL	NIL

Business Loans

Before starting a business, the entrepreneur should be mentally and financially prepared to encounter the fiscal setbacks during the process. To bail the companies out from the fiscal crunch, several banks in India offers business Loans both for meeting urgent official growth and expenses. Other details of Business Loans offered by Banks in India are:

Car Loans

Every individual want to own a car. Hence, the need for car loans emerges at some point or the other. While selecting a car loan it is always wise to scrutinize the various options accessible in the market besides analyzing its fiscal suitability.

Car Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 60 years respectively	21 years and 65 years respectively
Maximum Annual Income	Rs. 1,00,000	Rs. 60,000
Loan Amount	Rs. 1,00,000 (new) and Rs. 50,000 (old) to	Rs. 20,00,000
	Rs. 1,00,000 (new) and Rs. 50,000 (old) to	Rs. 20,00,000
Loan Tenure	1 years to 7 years	1 years to 7 years
Loan to cost ratio	85-90% of car cost	85-90% of car cost

Education Loans

Education Loans offered by various banks in India provide much required assistance to fund your child's education when all other resources of finance get exhausted. Education Loans are offered by almost every Indian bank thus providing ample opportunity to students to undergo higher education both in India and abroad.

Education Loans

Eligibility	For Students
Minimum and Maximum Age	16 years and 26 years respectively
Expenses covered	course and examination fee, refundable deposits, procurement of books, travel expenses
Loan Amount for studies in India	Upto Rs 10,00,000
Loan Amount for studies abroad	Upto Rs 20,00,000
Repayment Period	5-7 years

Aviation Industry in India

2011-02-08T23:56:00.000+05:30

Overview of Airlines industry in India

The aviation industry in India is one of those sectors that saw a constant pace of growth among the other industries in the world over the past many years. The open sky policy of the government has helped a lot of overseas players entering the aviation market in India. From then, it has only been growing in terms of players and the number of aircrafts. At present, private airlines account for around 75% portion of the domestic aviation market.

The 9th largest aviation market in the world is India. Taking the help of the statistics from the Ministry of Civil Aviation, approximately 29.8 million passengers traveled to/from India in 2008, showing a surge of 30% from 2007. The prediction stated that international passengers will touch 50 million by 2015. More opportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from 49 countries.

Growth of Indian Aviation industry

The Indian Civil Aviation market grew at a CAGR of 18%, being valued round US$ 5.6 billion in 2008. Further statistics revealed that the air traffic in August 2009 was a double digit figure. The domestic airliners flew 3.67 million passengers in August 2009, as against 2.92 million in the corresponding period of 2007, up by 26%. The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic traffic will go up by 25% to 30% till 2010 along with a surge in the international traffic by 15%. There would be more than 100 million passengers by 2010. Then again by 2020, Indian airports will in all probability handle over 100 million passengers every year. The investment plans to the tune of US$ 9 billion has been made by the Aviation Ministry for modernizing the existing airports by 2010.

In terms of domestic passengers' volume, US have always been the leader with followers in the league like China, Japan and India. The number of domestic flights went up by 69% from 2005 to 2008, with the domestic aviation sector growing at 9-10%.

Market share of key players in the Indian aviation sector

Name of the players	Market Share
Kingfisher Airlines and Kingfisher Red (previously Air Deccan)	28%
Jet Airways and Jet Lite (previously Air Sahara)	25%
Air India and Indian (previously Indian Airlines)	16%
IndiGo	14%
SpiceJet	12%
GoAir	3%
Paramount Airways	2%
MDLR Airlines	0.004%

Future of Airlines industry in India

The challenges of the Indian aviation industry are cited below:

Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few years.
The Ministry of Civil Aviation would handle around 280 million passengers by 2020.
US$ 110 billion investment is envisaged till 2020 with US$ 80 billion solely for new aircraft and US$ 30 billion for developing the airport infrastructure.

Automobile Industry in India

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Industry background

Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants.

Every other day, we have been hearing about some new launches, some low cost cars – all customized in a manner such that the common man is not left behind. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General Motors.

Turnover of Automobile Manufacturers(In USD Million)
Year	In USD Million
2002-03	14,880
2003-04	16,544
2004-05	20,896
2005-06	27,011
2006-07	34,285

The figures show that the automobile sector in India has been growing robustly. The market shares of the different types of vehicles will clearly depict the demand pattern in this sector.

Domestic Market Share for 2008-09
Passenger Vehicles	15.96%
Commercial Vehicles	3.95%
Three Wheelers	3.6%
Two Wheelers	76.49%

Automobile Companies

Audi
Bajaj Auto
BMW
Chevrolet
DaimlerChrysler (Mercedes)
Fiat
Ford
General Motors
Hindustan Motors
New Car Launches

Hero Honda Motors
Hyundai Motors
Mahindra & Mahindra
Maruti Udyog
San Motors
Skoda
Tata Motors
Yamaha Motors
Top Automobile Companies

Notable Multi-national automobile manufacturers

Locally manufactured automobiles of MNCs

Audi: A4, A6.
BMW: 3 Series, 5 Series.
Chevrolet: Spark, Aveo U-VA, Aveo, Optra, Cruze, Tavera.
Fiat: Palio, Grande Punto, Linea.
Ford: Ikon, Fiesta, Fusion, Endeavour
Honda: Jazz, City, Civic, Accord.
Hyundai: Santro, i10, Getz, i20, Accent, Verna, Sonata.
Mercedes-Benz: C-Class, E-Class
Mitsubishi: Lancer, Lancer Cedia.
Renault: Logan
škoda: Fabia, Octavia, Laura.
Toyota: Corolla, Innova, Fortuner
Volkswagen: Jetta, Passat.

Cars sold in India as Completely Built Units

Audi: A8, TT, R8, Q5, Q7.
Bentley: Arnage, Continental GT, Continental Flying Spur, Arnage.
BMW: 6 Series, 7 Series, X3, X5, X6, M3, M5, M6 and Z4.
Chevrolet: Captiva
Fiat: 500.
Honda: Civic Hybrid, CR-V.
Hyundai: Tucson.
Jaguar: XF, XK.
Lamborghini: Gallardo, Murciélago.
Land Rover: Range Rover, Range Rover Sport, Discovery 4, Freelander 2.
Maybach: 57 and 62.
Mercedes-Benz: CL-Class, CLS-Class, S-Class, SL-Class, SLK-Class, M-Class, Viano.
Mitsubishi: Pajero, Montero, Outlander.
Nissan: Teana, X-Trail.
Porsche: 911, Boxter, Panamera, Cayman, Cayenne.
Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé.
škoda: Superb.
Suzuki: Grand Vitara.
Toyota: Camry, Land Cruiser, Land Cruiser Prado.
Volkswagen: Touareg.
Volvo: S80, XC90.

Aluminium Industry in India

2011-02-08T23:48:00.002+05:30

Aluminium Industry in India is a highly concentrated industry with the top 5 companies constituting the majority of the country's production. With the growing demand of aluminium in India, the Indian aluminium industry is also growing at an enviable pace. In fact, the production of aluminium in India is currently outpacing the demand.

Though India's per capita consumption of aluminium stands too low (under 1 kg) comparing to the per capita consumptions of other countries like US & Europe (range from 25 to 30 kgs), Japan (15 kgs), Taiwan (10 kgs) and China (3 kgs), the demand is growing gradually. In India, the industries that require aluminium most include power (44%), consumer durables, transportation (10-12%), construction (17%) and packaging etc.

The Background

Though the existence of Aluminium was first established in the year 1808, it took almost 46 years to make its production commercially viable. The research work of several years resulted in extracting the aluminium from the ore. Aluminium is third most available element in the earth constituting almost 7.3% by mass. Currently it is also the second most used metal in the world after steel. Due to the consistent growth of Indian economy at a rate of 8%, the demand for metals, used for various sectors, is also on the higher side. As a result, the Indian aluminium industry is also growing consistently. In FY09, the aluminium industry in India saw a growth of about 9%.

The production of aluminium started in India in 1938 when the Aluminum Corporation of India's plant was commissioned. The plant which was set up with a financial and technical collaboration with Alcan, Canada had a capacity of producing 2,500 ton per annum. Hindustan Aluminum Corporation (Hindalco) was set up in UP in the year 1959; it had a capacity of producing 20,000 ton per annum. In 1965, a public sector enterprise Malco which had a capacity of 10,000 ton per annum was commissioned; by 1987, National Aluminium Company (NALCO) was commissioned to produce aluminium. It had a capacity of producing 0.218 million ton.

During the 1970s, the government started regulating and controlling the Indian aluminium industry. Restrictions in entry and price distribution controls were quite common in the Indian aluminium sector. Aluminium Control Order was implemented where the aluminium producers had to sell 50% of their products for electrical usages. However, in 1989, the order was removed as the government decontrolling was revoked. With de-licensing of industry in 1991, the liberal import of technologies and capital goods was started. The liberalization resulted in a growth rate of 12% of the industry, comparing to the growth rate of 6% during the 1980.

Aluminium Production in India

India is world's fifth largest aluminium producer with an aluminium production competence of around 2.7 million tones, accounting almost 5% of the total aluminium production in the world. India is also a huge reservoir of Bauxite with a Bauxite reserve of 3 billion tones.

The Production

India lies at the eighth position in the list of leading primary aluminium producers in the world. India saw a significant growth in aluminium production in the past five years. In 2006-07, the production target of aluminium in India laid by the Ministry of Mines, Government of India was 1,153 KT, which was augmented to 1,237 KT in the next year (2007-08). Due to the growing demand from the construction, electrical, automobiles and packaging industry, the production of aluminium also hiked up. In FY 09, the total aluminium production in India was around 1.35 tonnes.

The Consumption

After a stagnant consumption of primary aluminium in India from the end of 1990s to 2002 (when the consumptions were between 500 – 600 KT), it started rising sharply since 2002. The consumption reached at 1,080 KT in 2006. The consumption of aluminium in India is dominated by the industries like power, infrastructure, and transportation etc.

The Major Players

The Indian aluminium industry is dominated by four or five companies that constitute the majority of India's aluminium production. Following are the major players in the Indian aluminium industry:

Hindustan Aluminium Company (HINDALCO)
National Aluminium Company (NALCO)
Bharat Aluminium Company (BALCO)
MALCO
INDAL

HINDALCO: Hindalco is the biggest player in the aluminium industry in India with around 39% of market share. An Aditya Birla Group flagship company, Hindalco has its aluminium plant at Renukoot in Uttar Pradesh. It has various aluminium products with a market share of 42% in primary aluminium, 20% in extrusions 63% in rolled products, 31% in wheels and 44% in foils.

Sterlite Industries: The aluminium business of Sterlite Industries Limited comprises of two Indian aluminium giants – BALCO and MALCO. While BALCO is a partially integrated, MALCO is a fully integrated producer of aluminium. Sterlite has got a market share of around 32%.

NALCO: It is also one of the leading aluminium producers in India. Government of India has a stake of 87.15% in this company. Its aluminium refinery is located at Damanjodi. It also has a smelter located at Angul, Orissa. Currently, NALCO is concentrating on a capex programme to increase its production from 345,000 tonnes to 460,000 tonnes.

What Is Undercover Marketing?

2011-02-06T16:43:00.001+05:30

Also known as buzz marketing or stealth marking, undercover marketing is a marketing approach that is used to attract the interest of customers without making those consumers aware that they are being subjected to a marketing approach. This process relies heavily on the basics of viral marketing, a strategy that involves spreading the word about a good or service from one person to another. Often, the approach is somewhat low key, does not appear to have a great deal of direct involvement with the producer of the product, and may even include the distribution of free samples to target customers.

There are many examples of undercover marketing in use today. One common approach is to engage the services of a well-respected public personality, such as a performer. The performer is then seen by the general public using the goods or services produced by the business, but without any specific type of sales pitch taking place. The performer may offer to share the product with others in his social or business circles, and may even offer a testimonial of the benefits derived from the use of the product. This approach often works based on the rapport that already exists between the performer and interested consumers. In this way, undercover marketing has shown a fairly consistent ability to produce sales over time.

Another example of undercover marketing is one individual's endorsement of certain goods or services to others that are part of his social network. This may include friends, family, coworkers, neighbors, or anyone with whom the individual interacts from time to time. The idea is that at least a few of those contacts will be intrigued enough to try the products for themselves. In the event they also find the products beneficial, they in turn will share the buzz or the good news with the people they come in contact with on a regular basis. This stealth approach to marketing can be extremely effective in terms of reaching consumers who tend to be on their guard when it comes to television commercials, email solicitations, or splashy advertisements in magazines and newspapers.

One of the benefits of undercover marketing is that it can be an extremely cost-efficient way to reach consumers. Assuming that the effort is launched properly, and the products are high-quality and deemed affordable, the potential of this strategy is virtually unlimited. Because undercover marketing relies heavily on relationships and the establishment of trust between people, it is able to reach consumers who may not be easily swayed by more aggressive and conventional methods.

Like any marketing strategy, undercover marketing can be abused. When this takes place, the process is often referred to as roach baiting. Essentially, this means that efforts were made to mislead consumers into liking the product by making a product appear to be something that it isn’t. This can include overstating the attributes of the product, or making claims for its effectiveness that are simply not supported by the available evidence.

What is Timing the Market?

2011-02-06T16:42:00.001+05:30

Timing the market is a strategy to buy and sell investments at a preferred price. This includes stocks, bonds, commodities, mutual funds, index funds and real estate. Every financial market experiences fluctuations in their trading range based on news factors such as financial reports, news reports that directly impact the company or product, stock and bond payouts, supply and demand, and the economic health of the industry and nation.

By studying these indicators and the cycles of your particular vehicle of investment, you can predict the market direction. This will enable higher returns as you buy and sell at premium prices. The goal in timing the market is to buy as the price bottoms out and begins to gain momentum and to sell just before the price peaks. Several market strategies are available to help predict where your investment instrument is in the cycle.

The Price/Earnings ratio (P/E), the dividend yield, the price-to-book ratio, the prime rate and the federal funds rate are a few examples of ways to monitor investments for timing the market. Many brokers and investment strategists monitor the up and down cycles and the existing conditions at the time in order to predict market trends. It is important to remember that buying on news is not a good market strategy because by the time news is announced regarding a particular investment instrument, the market has already factored it into the price.

When purchasing mutual funds or index funds, you are buying a composite of securities and the price will not be as volatile. It is helpful to investigate the trading curve for the last few years. This will show you the pattern of the curve so that you can predict when the best time to buy and sell.

The real estate market moves in longer, slower cycles, which suggests staying power is your best strategy for timing the market. For securities, many order types are available in timing the market. Each is unique, depending on your goals and preferences:

“fill-or-kill order” – instructs a broker to sell an investment at the specified price or better. If the transaction is not immediate, the order is cancelled automatically.

“limit order” - specifies a buy or sell at a specific price or better.

“market order” - will negotiate a transaction at the current market price.

“market-if-touched order” - is similar to a stop order in that it becomes a market order if a specified price is reached. However, a buy market-if-touched order is entered at a price below the current price, while a sell market-if-touched order is entered at a price above it.

“not-held order” - allows floor brokers to take more time to buy or sell an instrument, if they think they can get a better price by waiting.

“one-cancels-the-other order” - two orders in one, generally for the same security or commodity. This order instructs the floor brokers to fill whichever order they can first and then cancel the other order.

“specific-time order” - couples many of the other order types with instructions that the order must be carried out at or by a certain time.

“stop order” - tells a floor broker to buy or sell an investment once a specific price is reached. These are often called “stop-loss” orders because they are frequently used to protect profits or limit losses.

“stop-limit order” - turns into a limit order when an investment trades at the price specified in the order. Unlike stop orders, they demand that the trades be made only at a specified price.

“short” - is to sell stock before buying it in the hope that the price will decline, allowing the investor to purchase the shares at a lower price.

Timing the market can be more certain when predicated on these safeguards. In all legs of investing, buying low and selling high is the purpose, strategy and goal of timing the market properly.

2011-02-06T16:40:00.001+05:30

Strategic management is a business approach that is utilized to make the most efficient use of available resources in the process of operating a company. The idea behind any strategic management process is to evaluate the current status of the operation and all its individual components, identify whether those components are being utilized to best effect, and to develop and implement changes when and as necessary. When utilized properly, this approach can improve the overall performance of the company, move the business closer toward reaching its stated goals, and keep the cost of raw materials and other resources in balance with the returns generated by the business effort.

The foundation of any strategic management approach is to define the basic reason for the existence of the operation. This means developing a workable mission statement for the company, defining objectives that are in line with that mission statement, and developing policies and procedures that move the company closer to achieving those objectives. As part of the process, companies must take into account the resources on hand and those that can be acquired when and as needed, and determine how to use those resources to best effect.

Once the structure is in place, strategic management calls for making sure the defined policies and procedures are being observed in every area of the operation. Here, managers, overseers, and supervisors must be well-versed in the essentials of strategic management, and learn how to use the resources placed into their care to best effect. This often translates into knowing how to communicate with employees effectively, understanding the production process thoroughly and being able to articulate why a given process is important to the overall success of the operation. When this is the case, the task of allocating tasks and resources to best advantage is easier to accomplish, and enhances the chances for the business to perform at optimum efficiency.

Strategic management is not a concept that applies only in large companies. Even small businesses that employ no more than one or two people can benefit from the basics of this approach. While the exact nature of the processes and tasks required for operation will be different between a mom-and-pop retailer and a multi-national corporation, the general idea behind this management process will still be valid. By applying the principals to the real-life situation of the business, it is often possible to maximize use of available resources, minimize waste in the workplace, and ultimately have a positive effect on the bottom line of the company.

What Is Share of Wallet?

2011-02-06T16:39:00.001+05:30

Share of wallet is a concept in marketing that refers to the percentage of a person's total spending dedicated to buying products and services from a particular company. Companies can conduct surveys to determine their share of wallet within given demographics to learn more about how their customers are interacting with them. There are numerous tactics that can be used to increase total spending by customers on a given company's products. For companies that want to increase revenue, there can be advantages to focus on expanding spending among existing customers rather than trying to attract new ones.

The more products and services a company offers, the greater its share of wallet will be. Companies can expand their offerings by developing related products that customers will buy because they have positive associations with a brand, or by branching out into new areas of an industry. Existing customers may switch loyalties because of their association with the brand, or consider adopting new products and services because they are offered by a trusted name.

Companies compete with each other for share of wallet. Many companies use tactics such as becoming a one-stop shop for customers, making it easy for people to get everything they need in one place. This can woo customers away from competitors who offer a more limited range of products. Revenue per user increases in response, and over time, the company can broaden its customer base by attracting people on the basis of recommendations from existing customers.

Focusing on developing new customers can be costly. People must be persuaded to buy products in the first place and the payoff may be in the distant future. By contrast, developing better share of wallet is usually less expensive and can have more benefits in the long term. Existing loyal customers can be enticed to spend more and the ability to access a range of services and products may increase positive opinions of the company. This will lead to recommendations to friends and family, increasing market share in the long term.

Surveys to determine share of wallet can be used as a research tool to develop ideas for new products and services. Exploring interest from customers in new offerings is helpful for companies that are considering expanding production, acquiring other companies, or developing new business ventures. Companies can also keep track of suggestions, recommendations, and questions from customers to determine what kinds of products and services appear to be most in demand.