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Invest Now Davos
India Brand Equity Foundation CLXXXIV
February 27, 2012
India's franchise market, estimated to be US$ 4 billion in 2011, is growing at over 30 per cent per annum with tier II and tier III cities gradually getting aligned to the network of retailers and franchisers.

Significantly, US companies are increasingly looking at forming joint ventures (JV) with their Indian counterparts in the areas of engineering, information technology, data entry and healthcare with focus on high end projects.

Recently, IBEF was associated as a branding and communication partner for the Department of Commerce led initiative, The India Show, in Lahore. The trade exhibition stood centrestage and was extremely well received in Lahore.
Warm regards,
Aparna Dutt Sharma
Aparna Dutt Sharma
India Brand Equity Foundation
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Focus: Pharmaceuticals & Healthcare
India will see the largest number of merger and acquisitions (M&A) in the pharmaceutical and healthcare sector in 2012, according to consulting firm Grant Thornton. A survey conducted across 100 companies has revealed that 25 per cent of the respondents were bullish on acquisitions in the pharma sector.

Significantly, Covidien, a US-based manufacturer of medical devices and pharmaceuticals, has set up its first research and development centre in the country. "The Indian healthcare devices market is part of our focus on emerging markets. The Hyderabad centre will enable us to improve product time to market and create valued-innovation," said Robert Frechette, Vice-President (Engineering Services).

Further, Ranbaxy Laboratories Ltd has launched blockbuster drug Atorvastatin in the Australian market. The company has introduced the product under the brand name, 'Trovas' and the drug will be available in bottles and blister packs, through retail pharmacy chains. The continent is an important strategic market for Ranbaxy, which entered the Australian market in November 2006.
Focus: Manufacturing
Amway India, a direct selling FMCG company, is planning to set up its first greenfield manufacturing facility in India at an estimated investment of about Rs 300 crore (US$ 61.16 million). The plant is expected to be commissioned in 2014 and will primarily manufacture products under the nutrition and beauty categories, said Mr William S. Pinckney, Managing Director and Chief Executive Officer, Amway India.

Significantly, after international acquisitions, Indian auto majors Mahindra & Mahindra (M&M) and Tata Motors are increasingly focusing on developing global products and considering setting up assembly facilities abroad to scale up international business over the next three to five years. While Tata Motors is exploring setting up a base for assembling commercial vehicles (CV) in the ASEAN region, M&M is assessing potential for assembling automobiles in Africa and Southeast Asia.

Further, Farm equipment manufacturers in the northern region, especially small and medium enterprises (SMEs) and their vendors, are quite positive on the robust demand for farm equipment in the domestic market. They are betting big on the Indian farm mechanisation market, which is estimated at over Rs 4,000 crore (US$ 815.41 million) a year (excluding tractors).
Interview: Carol Stephenson, Dean, Richard Ivey School of Business on reasons for expanding its footprint in India
"We are partnering with MDI Gurgaon to develop joint cases. I believe that case based learning is a highly effective and relevant teaching methodology to make management education more attuned to real world business challenges, particularly in fast-growing and emerging economies such as India.

... "We have been associated with India for a long time. The number of Indian students in our campuses is also increasing, especially after our alumni, an Indian businessman in Canada has announced 50 per cent scholarships for Indian students.

... "India has the opportunities — entrepreneurial and otherwise. That is why our students are looking at the country more than ever before. Moreover, our mandatory international business trip to India, as a part of the curriculum, is raising awareness among the students about the country, encouraging them to take up jobs here."
Interview: Mark Templeton, Chief Executive Officer, Citrix System, on India being a strategic market for the company
"India is a strategic market for us. Building India is mainly about two things. The primary objective is to build our India business and increase our market reach here. Our India business grew more than 45 per cent last year. Secondly, the India R&D team is part of our global innovation fabric. We are a software company, and for a technology company like Citrix, innovation, invention, engineering, development and creativity are the lifeblood.

Around 80 per cent of the Indian team is engaged in R&D and the rest in support functions. The R&D is an integral part of our invention and innovation fabric. I can't think of a product and technology in our portfolio without an Indian touch, whether small or large......the impact made by the India team can be quantified in couple of ways. One of the major impact can be considered as the patents filed by us. Huge part of our patent portfolio in terms of application and others, begin in our Bangalore centre. Another way to quantify the India R&D is, this is our largest single R&D engineering centre in the world. Most of our products are engineered here, for example, more than half of our networking technology are invented and built in Bangalore. Some of the component of our cloud platforms, desktop virtualisation platforms, software as a service (SaaS), are built in India

... In 2011, we virtualised about 100,000 desktops in India. We are seeing huge change in mindset from customers across sectors like financial services, ITeS, telecom and a bit of manufacturing."
Policy/Corporate Briefs
Franchise market growing at over 30% per annum
India's franchise market is growing at a healthy pace with tier II and tier III cities gradually getting attracted to the network of retailers and franchisers. "Franchising in India has witnessed impressive growth of around 30-35 per cent year-after-year over the last 4-5 years with an estimated turnover of $4 billion," according to Gaurav Marya, President, Franchise India.
US companies keen on joint ventures
US companies are looking at forming joint ventures (JV) with their Indian counterparts in the areas of engineering, information technology, data entry and healthcare, according to Ms Susan Au Allen, President and Chief Executive Officer, the US Pan Asian American Chamber of Commerce Education Foundation.
SEBI eases advertising code for mutual fund industry
Securities and Exchange Board of India (SEBI) has relaxed the advertising code for the mutual fund industry making it more 'principle-based, rather than rule-based'. With respect to the amendment, SEBI has mandated that the advertising, which would include all forms of communication, should avoid extensive use of technical or legal terminology'.
World Kitchen launches India subsidiary; ties up with TTK
World Kitchen Holding Company LLC, an Illinois-based firm which markets and distributes high-end kitchenware brands like Corelle, Corningware and Pyrex cutlery, has announced the setting up of a wholly-owned subsidiary in India to be called World Kitchen (India).
Hero MotoCorp joins hands with Erik Buell Racing
Hero MotoCorp, the world's largest two-wheeler maker, has signed a technology-sharing agreement with US motorcycle firm Erik Buell Racing (EBR). Hero MotoCorp will buy technology from EBR without sharing profits or ownership.
Reliance Industries Ltd finalises $450-M JV with Russian rubber giant Sibur
Reliance Industries (RIL) and Russian rubber company Sibur, Eastern Europe's largest maker of petrochemicals, has announced the formation of a joint venture (JV) company called Reliance Sibur Elastomers. The JV aims to become the fourth largest supplier of butyl rubber - an input for tyres - in the world.
German firm Steinbach sets up Indian arm
Steinbach & Partner, a Germany-based global executive search and HR consultancy firm, has entered the Indian market and set up a wholly-owned subsidiary, headquartered in Pune. The company is targeting revenue of €1 million (US$ 1.34 million) from its Indian subsidiary in the first three years of operations.
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