Invest Now Newsletter
India Brand Equity Foundation CCX February 25, 2013
In This Issue
- Policy / Corporate Briefs
- Conversations on Brand India
- Focus (Aviation)
- Focus (Food)
- Interview
The announcement by the Government of India in September last year allowing foreign airlines to buy up to 49 per cent stake in local carriers in the civil aviation sector is beginning to attract international aviation giants to the Indian market.

After the Jet-Etihad deal, which is already in advance discussion stage, the Kuala Lumpur based low cost carrier AirAsia, Asia's largest airline, is entering into a joint venture (JV) with Tata Sons and Telestra Tradeplace to launch a new airline in India. The JV will not only expand AirAsia's presence in India but will also mark the comeback of Tatas in the aviation sector. While the new low cost airline is expected to operate under the AirAsia brand, it is believed that the initial US$ 15 million investment by the Malaysian company will make the sector all the more competitive in times to come.

It is expected that airlines in India will need over 1,400 planes worth US$ 175 billion in the next twenty years to meet the rising demand. As per a recent report, India could rank among the top three aviation markets in the world by 2020. The sector can be expected to witness a consolidation wave in the near future.


Aparna Dutt Sharma
CEO
India Brand Equity Foundation

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Innovation from India
POLICY / CORPORATE BRIEFS
India-UK CEO forum push for tie-ups in education, infra, defence, power
New Delhi: Corporate leaders from top companies in India recently had a brain storming session on intensifying cooperation between the two countries. The British side identified infrastructure, education, defence, energy and retail as focus areas. The India-UK CEO's Forum met to take stock of the current business ties and give proposals to the two governments on how they could be strengthened.
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Denmark to set up centre in Bengaluru
Mumbai: Denmark is setting up an innovation centre in Bengaluru, extending the cooperation between the two countries to address the talent shortage and innovate frugally. "India, with its ability to develop low-cost applications and technologies, can be the gateway to Africa. This is a just small step, but we hope for an extended collaboration with Indian corporates and institutions...," said Danish Ambassador to India, Freddy Svane.
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InterContinental Hotels Group signed 13 new hotels in India in 2012
New Delhi: InterContinental Hotels Group (IHG) has signed 13 new hotels in India in 2012, enhancing its existing pipeline of hotels in the country to 47. "India is an extremely important market for IHG, one that we are always looking for the right opportunities to invest in," said Mr Jan Smits, Chief Executive Officer for IHG in Asia, Middle East and Africa.
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Volvo to launch 'value' bus brand in India
Bengaluru: Swedish automotive company Volvo is preparing for a "value" game in the rapidly growing Indian bus market. The company has announced a dual-brand strategy in and under which it will launch a new bus product that would be positioned in between the premium and the traditional bus segments in 2014.
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Adtran opens technology centre in Hyderabad
Hyderabad: Networking solutions provider Adtran Networks India Private Ltd has opened a high-technology engineering facility in Hyderabad. The fully-owned subsidiary of Nasdaq-listed Adtran Inc has been in Hyderabad for over six years and opened this new centre to focus on telecom software and hardware design and would initially employ over 30 engineers.
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Japanese MNC KYB Corporation acquires 50% stake in Conmat Systems
Ahmedabad: Japanese company KYB Corporation has acquired a 50 per cent stake in Vadodara-based Conmat Systems Pvt Ltd. KYB, which invested around Rs 100 crore (US$ 18.41 million) to acquire the stake, is investing for the first time in India, targeting the country's Rs 30,000 crore (US$ 5.52 billion) construction equipment market.
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Mercedes-Benz India launches premium SUV G-Class AMG at Rs 1.5 crore
Mumbai: Mercedes-Benz India has launched its premium sports utility vehicle, G63 AMG, to be followed by three more launches in this calendar. The all-terrain SUV, priced at Rs 1.46 crore (US$ 268,364) (ex-showroom Mumbai), comes with a 5.5-litre supercharged V8 petrol engine and can speed to 100 km per hour in less than 5.5 seconds.
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Shanghai Hitachi to invest Rs 500 cr to make compressors in Gujarat
Ahmedabad: Shanghai Hitachi Electricity Appliances Company, a joint venture (JV) company of China-based Shanghai Highly Group and Hitachi Appliances of Japan, will invest Rs 500 crore (US$ 91.93 million) in the next two years in Gujarat to manufacture air-conditioning compressors and relevant refrigeration products to focus on India and West Asian markets.
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CONVERSATIONS ON BRAND INDIA
"Initiatives like the Mumbai monorail network and the Chenab Bridge are steps in the right direction. The opportunities in the infrastructure sector offer tremendous scope for growth to domestic and international companies alike."

Aparna Dutt Sharma
Chief Executive Officer
India Brand Equity Foundation
India: Improving infrastructure

India: Improving infrastructure
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FOCUS (AVIATION)
MIAL partners Wipro for terminal
Mumbai: Mumbai International Airport Ltd (MIAL), operator of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai, has entered into a 10-year contract with Wipro Infotech, the India and West Asia IT business unit of Wipro, for the new integrated terminal T2. Wipro will be responsible for providing managed services across the entire IT landscape at MIAL.
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AirAsia to tie up with Tata Sons for new airline in India
Mumbai/ Chennai: Kuala Lumpur-based low-cost carrier AirAsia is floating a joint venture (JV) with Tata Sons and Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India. AirAsia will have 49 per cent stake, Tatas 30 per cent and Telestra will hold the remaining 21 per cent in the company, which will be headquartered in Chennai.
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FOCUS (FOOD)
Ready-to-drink brewage market may touch Rs 2,200 crore
Mumbai: The ready to drink (RTD) tea and coffee market in India is expected to touch Rs 2,200 crore (US$ 404.95 million) in next four years, according to estimates arrived at the World Tea and Coffee Expo 2013. The growth will be driven by the popularity of different varieties such as herbal and ice tea and awareness about their health benefits.
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Inbisco to start manufacturing at Sanand facility in 2014
Ahmedabad: Indonesian food products company Inbisco plans to produce 20,000 tonnes of food products in the initial phase from its Sanand plant. The company is also looking at sourcing raw materials from Gujarat in order to be cost competitive. It plans to roll out products from January 2014, and has pledged an investment of Rs 1,000 crore (US$ 184.19 million) in Gujarat.
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INTERVIEW
Mr Fred Hochberg, Chairman and President, US EXIM Bank, on India's strong long-term growth prospects
"The greatest asset that India has is the young population. The government indicates it needs to create 20 million jobs. That's a lot of jobs. So the economy has to grow fast to create that kind of jobs... I am not an expert on India but clearly there have been a number of reforms that are more market-oriented. As soon as they are adopted, that will ensure that the economy will keep growing.

Our exposure to India is $8.5 billion of our total portfolio of $108 billion. India is number two right after Mexico, which is a few hundred million of each other. My expectation is India will become the largest concentration sometime this year. India is growing very rapidly in our portfolio "
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Mr Adam H Schechter, Executive Vice President and President, Global Human Health Division, Merck, on India being an important market to the company
"For us, India is a very important market for many reasons. The government continues to invest in healthcare. We see that healthcare is expanding across the country. There is a growth opportunity and we continue to invest very much in India. There is so much innovation in India.

As regards compulsory licence (CL), I discussed that with the policymakers on Wednesday. They were open and receptive. I feel good about the discussion. ..I am very optimistic about India and the potential for strong IPR and future innovation. "
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