Tag Archive for 'India'

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Global India

Published on September 10, 2007 in Emerging Markets. 0 Comments Tags: , .

Global India
Interested in India and it’s prosperous economy at large? Bored about superficial information, lacking depth and insights? The Times Online has devoted a special section entirely on India at large!

India’s economy is the second fastest-growing in the world, reporting GDP growth of more than 9 per cent a year, not far behind China, with more than 11 per cent growth. The United Nations predicts that by 2050 India will surpass China as the world’s most populous nation, partly because of China’s one-child policy and an improvement in India’s infant mortality rate. In this special section we explore the stories behind the facts. [Source]

The new radar screen of VCs

Published on June 17, 2007 in Emerging Markets and International Finance. 0 Comments Tags: , , , , , , , .

What’s currently on the radar screen of Venture Capitalists (VCs)? In short, finally, they are starting to look beyond China and India respectively: Central and Eastern Europe.

At the very moment, first, there is Central and Eastern Europe. At least $500 million is sitting in fund targeting the Central and Eastern European region and much more is foreseen. This growth is enabled by a few success stories such as Skype and Last.fm, and in turn, this has triggered a new wave of fresh and new European entrepreneurial spirit. Furthermore, the accession of ten new European Union members from Central and Easter European countries has spurred investments across the region. The previous locked up energetic talent in this region has now gained equal access – as their Western European counterparts – to European capital markets and legislative protection.

In addition, as BusinessWeek pointed out earlier VCs are even having their eyesight beyond the traditional BRIC and Next Eleven (N-11) countries for example out of all places, Colombia, Latin-America. A multitude of young, bright and entrepreneurial minded people is ready to take the country up on the economic ladder. BusinessWeek typified Colombia as an extreme emerging market. It take guts and political sensitivity to start investing there but it can reap endless possibilities.

Here you can find a list of the top 500 European hot growth companies. Another listing can be found here. The latest and greatest news on European Private Equity & venture capital can be found here.

Some more great webpages to keep you updated on any activity at the European VC front can be found here. European Venture Capital & Private Equity Journal; FT European Venture Capital Report; Venture Capital in Europe (Book); and Profitability of venture capital investment in Europe and the US (Research Paper).

The new World?

Published on March 16, 2007 in Emerging Markets. 0 Comments Tags: , , , .

New World

Asian cities are in the race to build the boldest and biggest skyscrapers in the world. The region’s economic dynamism ensures the resources needed to make their mark in the 21st century architecture.

Case in point, Asia is already accommodating eleven out of the fifteen largest skyscrapers in the world. European and American architects have targeted Asia as their new playing field for architectural innovation and “wonders”. This movement is not likely to stop and will continue into the next decade since technological advances in construction materials, glass, and building bracings.

The build-up of various monster towers also highlights the rise of Asia’s new economic powerhouses at the capitalistic forefront. China is already putting up five skyscrapers in the current top ten largest buildings in the world.

So the question remains! Is there a casual relationship between the number and height of skyscrapers in a country and its stage of economic development? Are emerging economies using skyscrapers to put themselves on the map of capitalistic countries or as promotion tool in order to gain recognition from the West? All-in-all, I think, at least skyscrapers are providing a country and city more esteem and standing. Conventional wisdom regards stunning skylines as an impression of capitalism and a whirlpool of excitement.

What I know for sure! I love skyscrapers, fabulous skylines, architectural wonders, and Asian cities!

New World 2

India’s Flagships & BRICs

Published on February 13, 2007 in Emerging Markets. 1 Comment Tags: , , , , .

Tata Motor, Mahindra & Mahindra, Bharat Forge, Reliance Industries, ICICI Bank, Rediff, Dr. Reddy’s Laboratories, Infosys Technologies, Wipro, Bharti Airtel.

What have all these names in common? They are all multinationals from India and ready to shakeup the global business dominance of the West and Japan in order to become the next global brand. Most of them have a stock listing in both India and the US and starting to compete head on with the established players in the global marketplace. Here is a list of the ten most dynamic companies India has to offer.

My favourite Podcast on Emerging Giants from all BRIC countries (Brazil, Russia, India, and China) can be found here.

The term BRIC was first prominently used in the research paper “Dreaming With BRICs: The Path to 2050″ (2001)(PDF file) published by the world’s largest investment bank, Goldman Sachs. GS has also published a web presentation on BRICs, it higlights GDP growth, income per capita and currency movements in the BRICs economies until 2050.

In 2005 after publishing the paper on the emerging BRIC economies, Goldman Sachs published another report “How Solid are the BRICs?” (PDF file). Herein Goldman Sachs names another eleven economies that may emerge as important players by 2050. They are (in alphabetic order): Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey, Vietnam. Goldman Sachs names them N11 (i.e., the Next Eleven).

Amongst them, Korea and Mexico are particularly important. According to their prognosis, by 2050 Mexico will become the sixth-largest economy and Korea will become richer (in income per capita) than any of the current G7s (Canada, France, Germany, Italy, Japan, UK, USA) except the USA.

Next generation outsourcing

Published on December 11, 2006 in International Business. 0 Comments Tags: .

Today, BusinessWeek reports on a new wave of IT outsourcing which goes far beyond Bangalore, India. It touches upon 10 new cities that are emerging as new outsourcing centres. Not only because Bangalore becomes more unattractive as offshore location. But companies also want to tap into the entire pool of global talent, maintain risk management (IP and data protection, security issues), and utilise special skill sets not available in India. Find here the CEO guide to outsourcing!

Update: An overview on all major outsourcing players can be found here.

Update: The Future Of Outsourcing is discussed in this special report.

BusinessWeek’s Podcasts

Published on July 25, 2006 in Emerging Markets and International Business. 0 Comments Tags: , , .

Innovation Champions and Emerging Markets


Multinationals from China, India, Brazil, Mexico, Russia, and even Egypt are coming on strong. They’re hungry — and want your customers. They’re changing the global game.

Today I listened to the podcast of this week’s BusinessWeek cover story on emerging giants, the future multinationals not coming from the Western world but from emerging markets. Each with their own suprising business model. When emerging markets are in your field of interest, I highly recommend listening to this podcast and read up on the article. By clicking on this link you can download the audio file of this particular article.

 

Another very interesting podcast that I recommend is on Innovation Champions.

Cisco is betting on India

Published on November 28, 2005 in Emerging Markets and Global Strategy. 0 Comments Tags: , , .

On Nov. 9, in a conference call, Chambers (Cisco’s CEO) made a striking prediction: “It would not surprise me to see India actually challenge China, in terms of our business revenue, [in] three to four years.”

Chambers’ statement certainly goes against conventional wisdom. After all, China boasts a $1.6 trillion economy that’s growing at a 9% annual clip, and it’s the world’s largest market for many products. India, with the same 1 billion-plus population, has a $700 billion economy that’s growing at 7%.

What drives Cisco’s thoughts for playing its cards on India?

Deregulated telecom market
India’s growth rate is going to pick up, partly because of deregulation of its telecom industry which is leading to vast invetments in new Internet infrastructure. In contrast with China’s centrally controlled economy.

Entrepreneurship
Upcoming wave in Indian entrepreneurship together with tougher laws on intellectual property rights. This will make the nation an attractive place to set up R&D and venture operations.

Market dominance
In China, Cisco faces strong competition from Huawei Technologies and Harbour Networks Co., in India, you’ve got nobody that can be considered as a serieus competitor. Furthermore, tough competition in China forces Cisco to cut their known high gross margins, resulting not only in lower profit margins but also declining market share.

Immature infrastructure
Much of India still lack phone lines, carriers are installing higher-capacity Ethernet cables all the way to homes, the same cables found on Cisco office and consumer gear. This will ke it easier to interconnect with them trough Cisco networks.

India’s favourable preference
Longstanding suspicions between India and China are hurting Cisco’s rival Huawei. Recent concerns of India’s goverment adressing that Huawei might leak militarily sensitive information about India’s infrastructure to Chinese officials

As Cisco shifts focus to India, someone is going to learn a tough lesson: Cisco if it leaves too much business on the table in China, or its rivals, if Cisco has guessed right about what it believes is the best growth market of them all.

The Bangalore Paradox

Published on May 4, 2005 in Emerging Markets and Global Strategy. 0 Comments Tags: , .

The city at the heart of India’s booming information-technology industry is already choking on its own success; but the boom has barely begun. Moreover, Bangalore may be on the verge of overtaking Silicon Valley as the biggest IT employment region in the world on the back of the rise in offshore outsourcing, according to some estimates.

The high-tech Indian city, which is home to major Indian IT outsourcers, including Infosys, Tata Consultancy Services and Wipro Technologies, as well as many Western IT companies, now employs 160,000 people in the technology sector. IT accounts for 100,000 of these jobs, with the rest in business process outsourcing and call centers.

MK Shankaralinge Gowda, secretary of IT and biotechnology for the state government of Karnataka, said that the number of tech workers in the region will exceed 200,000 between 2004 and 2005, as IT and business process outsourcing companies continue to rapidly hire workers.

Gowda claims that Bangalore has already overtaken Silicon Valley, but the latest figures from California’s state government Employment Development Department (EDD) estimate the number of technology workers in Santa Clara County, which is the heart of Silicon Valley, at 175,100 as of June.

However, Silicon Valley is not in danger of losing its stature as a tech leader, and it can benefit from competition overseas, said Sam Haddad, chairman of the Silicon Valley Engineering Hall of Fame and a consulting professor at Stanford University. Haddad said the region is seeing new growth in areas such as nanotechnology. “Silicon Valley is already beginning to reinvent itself,” Haddad said. “I am very optimistic.”

More insight can be found on this webpage.

Dell: Time for a New Model?

Published on April 6, 2005 in Global Strategy. 0 Comments Tags: , , .

dell-logoIts direct-sales strategy has been a winner so far. However, in today’s global market, that approach may need some adjusting.

For years, that direct, low-cost sales model worked perfectly. It allowed Dell to make high margins while selling computer gear for less than its rivals. As a result, it now holds a leading 17.9% share of the world PC market and has grown much faster than competitors Hewlett-Packard and IBM. But lately, this same sales approach might be hampering Dell’s growth.

Increasingly, industry analysts believe it’s time for Dell to tweak its sales model. After all, times have changed. And to keep growing Dell may need to change, too, and not just in appearance – last summer Kevin Rollins took the CEO reins from Michael Dell.

More on this topic check this webpage.

Asia’s Economy

Published on February 12, 2005 in Emerging Markets. 0 Comments Tags: , , .
Asia's Economy

Asia's Economy

The beneficial impact of sourcing in the Chinese and Indian economies may continue for many more years. A recent survey of 248 chief financial officers in Asia by CFO Asia, a sister publication of The Economist, found many of them complaining of intensifying competitive pressures: 51% of manufacturing bosses said that they cut their prices in the past year, while only 23% raised them.

Source: Economist