Octagona - International Business Consultancy

INDIA: new projects for the port sector

07/05/2012

The Government of New Delhi is developing a funding program, that amounts to approximately 26 billion Euros, for the modernization of ports: this measure, which is part of the 12.th Five-Year Plan, will increase the Indian ports capacity, for a quantity around 1.440 million tonnes. The project will be approved by the Planning Commission in the coming weeks and most of the funding, about 7.3 billion Euros, will be made by the private sector.

According to data provided by the Minister of Shipping, Mr. G.K. Vasan, the 13 major Indian ports in order to increase the capacity by 527 million tonnes require an investment of around 11 billion Euros; the amount required for a capacity addition of 913 million tonnes, for minor and intermediate ports, is approximately 15.1 billion Euros.

Indian ports capacity has reached, at the end of financial year 2011 - 2012, 1.247 million tonnes and through 12th Five-Year Plan the forecasted growth will reach 2.686 million tonnes by 2017 (termination date of the Plan).

The Indian government, according to Rajiv Agarwal, Managing Director of Essar Ports (one of the major companies of this sector), should play a more active role to ensure the full development of the infrastructure sector, developing policies to attract investments. In this regard, New Delhi, on behalf of the Minister of Civil Aviation, is exploring the possibility to implement a plan that aims at the modernization of 35 airports, to meet the ever increasing passenger traffic and the economic growth of the Subcontinent.

Octagona and Toscana Promozione

17/04/2012

Thursday, May 17th at the Chamber of Commerce of Livorno, on the occasion of the seminar entitled “Business Mission to India”, Alessandro Fichera will give a speech from 15.00 to 16.00 pm, on behalf of Octagona. The event will be organized by the Chamber of Commerce of Livorno, in collaboration with Toscana Promozione, an agency serving the Tuscan entrepreneurial activity, involved in international projects.

Octagona will talk about the current Indian economic situation and the trade relations between the Indian Subcontinent and Italy; in particular will focus the analysis on the dynamics and characteristics of the port sector, transport and logistics system, analyzing the opportunities coming from India.

Representatives of the Port of Livorno, Toscana Promozione and operators of the port industry will take part in the workshop.

For more information or to fix a meeting with our consultants, please contact us by e-mail at the following address: octagona@octagona.com, or call us at the telephone number: 059.9770184.

INDIA: the construction sector grows

09/04/2012

The construction industry will experience an exponential growth in India over the next years, doubling its turnover. The latter is the findings of a recent research by Holcim, which is one of the most important companies in the market.

Currently, India constitutes about 5% of the global market; in fact, it accounts for 360 billion USD out of a 7000 billion USD global market. India ranks fourth behind China (15%), United States (14%) and Japan (9%) and ahead of France (4%). According to the data published by Holcim, Indian turnover will be 840 billion USD and the Indian market share will be 7% by 2020; therefore, India will rank immediately after China (21%) and USA (15%), overtaking Japan (6%) and becoming the third market in the world. The sector will reach 12000 billion USD worldwide.

Also the Indian cement industry statistics are positive; the Indian cement industry is the second largest in the world after the Chinese one. According to the 12th Five-Year Plan (2012-2017) prepared in New Delhi, this segment will require 470 million tons by 2017 to meet the growing demand.

In India demand for cement comes from the construction of houses (accounting for 67%), infrastructures (13%), commercial buildings (11%) and industry (9%).

Octagona and Ifoa

23/03/2012

On Monday May 14, from 14 to 18 hours, at the headquarters of IFOA at Reggio Emilia, Alessandro Fichera on behalf Octagona is going to give a lecture for the Job Master in Foreign Trade and International Marketing, organized by IFOA.

Octagona, during the lecture, will provide a broad overview on the Indian macrocosm, analyzing the sectors that today are able to offer real opportunities for business, the most interesting areas to invest in and the legal tools available to the entrepreneur to enter this market.

During the meeting, there has been set apart some time to discuss about the opportunities and advantages of a firms’ internationalization process in India.

For more information or to request a meeting with our consultants, please contact us by e-mail at the following address: octagona@octagona.com or call us at 059.9770184.

INDIA: Franchising runs up

12/03/2012

India is currently one of the most interesting markets to invest in for Franchising. During the last Franchising Fair, held in Hyderabad, the President of Franchise India Gaurav Marya showed statistics that speak volumes: Franchising is a sector that in 2011 reached a turnover of $US 4 billion, with an annual growth over 30%.

Currently in India there are more than 150.000 franchisees and more than 1.200 franchising chains; the number of international brands entering this market keeps rapidly increasing, making Franchising a business with enormous potential.

It is forecasted that this market is set to exceed $US 20 billion by 2020: in particular, concrete opportunities come from the beauty and wellness sector, that may reach $US 4.6 billion by 2013; the fitness sector is set to increase its turnover with an annual growth of 40%; the food & beverage sector is today valued at $US 280 billion and it is going to increase by 25-30% annually.

Other sectors like education, health care, entertainment, services and retail are characterized by very positive data. Hence the franchising model is at set to boom.

INDIA: the global market confirms its attractiveness

13/02/2012

The Indian economy confirms its excellent state of health. According to a survey published by Ernst & Young, India in 2011 was the second country in the world, after Brazil, in terms of increase in FDI inflows: from January to November of the last year, the Subcontinent received 13% more of foreign investments, for a total value that amounting to $ US 50.8 billion.

The concentration of the inflow of FDI has been seen in the automotive and industrial equipment sector, metal industry and outsourcing projects, leading to a creation of 216.000 new jobs.

According to data released by Ernst & Young, the GDP growth for 2012 will be around 6.8%, compared to the 8% forecasted previously, and will reach +9.5% in 2013. These figures can then be read in this way: the turmoil of Western financial markets had an impact on emerging markets such as India, but not strongly enough to damage the economic growth, which continues to be solid and is viewed positively by all major international economic organizations.

Among the main factors responsible for the continued development in India, which continues to be considered a highly attractive market, is the huge internal demand, the competitiveness and the cost of skilled labour; while on the downside infrastructure and bureaucracy represent the main barriers to foreign investment.

Octagona at Cibus 2012

08/02/2012

Once again Octagona is the major actor for the activities of internalizations regarding Indian market. Thanks to the accumulated experience of all these years, Octagona has been chosen by Fiere di Parma (Fair institution that is a leader in preparing the professionals organizations of agricultural events) as Knowledge Partner for India for the International Food Exhibition Cibus 2012.

The 16th edition of the international food fair Cibus 2012 shall be held in Parma from the 7th to 10th of May and Cibus is the key event of the Italian agri-food sector, the true “platform” enabling the companies committed to “Made in Italy” food to approach foreign market via internalization of their business activities. This year the focus will be on India, USA, Germany and Japan.

At the Fair, Octagona will manage the desk “India” and will provide the right assistance, help and necessarily support for choosing the right strategies for commercial development within the Indian market to those companies who are participating at the Fair.

The 2010 edition of Cibus had seen the presence of over 60.000 business operators from more of 55 states and about 900 accredited journalist. Also for this year it is expected the similar number of presence and perspectives are very huge.

OCTAGONA AND UNINDUSTRIA

30/01/2012

On Thursday the 23rd of February at the headquarters of Unindustria in Rome (Union of industrialists and companies of Rome, Frosinone, Rieti and Viterbo), Alessandro Fichera on behalf of Octagona will give a lecture at the workshop called "Continent India: new manufacturing and commercial hubs for Italian SMEs".

Octagona’s intervention shall be focused on the opportunities in the Indian subcontinent. This workshop shall primarily focus on the main sectors that offer real business opportunities and will identify the right locations for the same (not only the States but also the towns) in order to make productive investments and commercial agreements.

The programme of the workshop, that also includes the participation of some representatives of Indian Embassy in Rome, is designed especially for small and medium-sized enterprises that are looking to internationalize through expansion of their activities in India.

For further information or to request a meeting with our consultants, please contact us via e-mail at the following address: octagona@octagona.com or on our number: +39 059.9770184

INDIA: new employment laws for expatriates

16/01/2012

The rules for foreign workers in India stand changed. The Government of India has approved new regulations for the employment visa. From now on, highly qualified professionals who occupy important positions in India shall not have to return to their respective countries to renew the work permit. In accordance with the former regulations once the employement contract has expired (with the maximum periodicity of two years) the workers were obliged to return to their home country in order to renew their visa but from now on it can be renewed in India.

The new regulations shall be valid only for the affiliates and companies with whom the worker has already a contractual agreement but if a foreign employee wants to change his employers then he must return to his native country in order to obtain a new employment visa.

The companies that have established their business in India are satisfied with the introduction of the new rules for several reasons. The new regulation is going to:

provide more flexibility, as well as considerable savings of working hours and costs
allow a better allocation of companies’ resources
reduce a necessary paperwork
render the labour market more efficient and transparent
help the company’s business needs of transferring its employees

Moreover, it is not excluded that the Indian Government in the near future might decide to take a more flexibile approach to support further the relocation of foreign workers.

OCTAGONA AND CNA REGGIO EMILIA

15/12/2011

The workshop is going to be at the conference room of the “Classic Hotel” in Reggio Emilia on Tuesday the 20th of December. Mr. Micol Vezzoli shall be holding the same on behalf of Octagona and is under the aegis of the Ester Project of CNA Services of Reggio Emilia.

The project consists of a series of seminars with the focus on problems of small and medium-sized enterprises looking to internationalization via expanding their activities in India.

During these meetings the focus will be on the economic, social and political characteristics of India to the opportunities and benefits of expanding business internationally. For all companies that are looking at expanding their business in India this meeting represents the right place to be in order to have the latest and most accurate information of Indian market.

For those who are interested in further information please contact this number 0522/792813

for further information about the seminar please click here

INDIA: agreement for the construction of a new rail corridor

12/12/2011

The World Bank will grant a loan of $US 975 million to the Government of India for the construction of a rail corridor that will ensure a more efficient transport of raw materials and finished goods between the East and the Northern part of the country. The agreement, signed by the Department of Economic Affairs of the Ministry of Finance and the state-owned enterprise Dedicated Freight Corridor Corporation of India (DFCCIL), will promote the development of the railways of the country: it will be the first Eastern corridor used exclusively for freight. The project includes the construction of yet another rail corridor to the western part of the country.

The World Bank funds for the construction will cover 1,130 of the proposed 1,839 km of the corridor and the project has been divided into three phases: the first phase covers the 343 km distance from Khurja to Kanpur. According to Roberto Zagha, Country Director of the World Bank Office in India, thanks to this ambitious project the opportunity to create one of the largest freight corridor system in the world has been commenced.

India continues onwards on its path of modernization of infrastructure and according to a Goldman Sachs analysis the total Indian spend on infrastructure sector for the perios 2010 – 2019 will amount to $US 1,362 billion, of which $ US 281 billion shall be dedicated to the railways.

INDIA: NEW LAW IN RETAIL SECTOR

28/11/2011

The Government of India, on November 24th, finally gave the green light to one of the most important economic reforms undertaken by New Delhi. The new law, which was anticipated for a long time, will revolutionize the retail sector: now there will not be a FDI cap for foreign companies, that will be able to hold 100% of single-brand stores, and will be able to have up to 51% stake in multi-brand sector (which also includes supermarkets). Till now, New Delhi did not allow FDI in multi-brand retail and only 51% was allowed in single brand retail.

This is a historic decision that will radically change the landscape of Indian retail: in the case of single brand stores, foreign companies will no longer need to establish partnerships with local companies, while in multi-brand they will be able to open stores after finding a local partner, without resorting to the cash & carry format.

This reform will transform some sectors, including luxury retail, supermarkets and agriculture, and will have important rebounds from a social and economical point of view:

Indian consumers will have more choice
Indian retailers can count on the influx of money from abroad
there will be the creation of new jobs and thanks to better competition, a general fall in prices
there will be a modernization of the sector and logistics networks, as well as international class backward & forward integration that will reduce wastage of products
there will be more transparency especially in the agricultural sector, dominated till now by intermediaries
the local Kirana shops will have to modernize to be competitive
there will be a decline in inflation, a real problem for the Government

The Indian retail sector, with a turnover of around $US 450 billion per year, is definitely ready to explode. Anyway, it should be considered that not all States are in favour of this decision: the Governments of Tamil Nadu, Uttar Pradesh and West Bengal announced they will oppose. While on the other hand, the Governments of Gujarat, Maharashtra, Rajasthan, Haryana, Andhra Pradesh, Punjab and Orissa intend to support the reform.

INDIA: FDI on the rise in the next two years

31/10/2011

Within the next two years, India will attract a large amount of Foreign Direct Investment, which will be approximately USD 80 billion. According to a research conducted by Morgan Stanley, investments from foreign countries to the Subcontinent, which in the last two years reached USD 48 billion, will nearly double.

The survey, conducted by 176 internationally-based research analyst teams, covered 1,766 global companies and shows very interesting statistics: 20% of these companies invested about USD 80 billion in India in the past, and 59% of these will make an investment in an Asian country.

Global companies see real and significant growth opportunities in India, and according to this research, the interest is growing considerably from year to year. This is confirmed by projections provided by the IMF and by Ernst & Young: the international organizations forecast that India will overtake Japan in 2011, becoming the third largest economy in the world in terms of GDP at purchasing power parity, behind U.S. and China; the multinational company calculates that India will overtake China in 2014, in the rate of GDP growth (9% for India and 8.6% for China).

The same analysts remark that India's growth, driven by its huge domestic demand, represents a concrete model, considering the volatility of international markets.

OCTAGONA PRESENTS INDIA AT THE FRANCHISE FAIR

24/10/2011

On Monday the 7th of November, at the 26th edition of the Franchise Fair which will be held from November 4th to 7th at the Milan Fair, Octagona, through Alessandro Fichera, will hold an hour long workshop called "The opportunities of franchising in India". The objective of the seminar is to illustrate not only the peculiarities of the Indian franchising market, but also the development opportunities for Italian franchisors, with a particular focus on the retail sector in India, that in this period is on the rise. Octagona shall provide useful information, especially of legal nature, to all Italian companies interested in the prospect. With the signing of its agreement with Franchise India, Octagona through participation in the Franchising Fair in Milan intends to represent itself as the main point of reference for Italian companies operating in the franchising segment which see India as a natural target market.

This year too the Fair Franchising confirms its international leanings presence with the presence of 170 Italian and international franchisors.

For more information or to request a meeting with our consultants, please contact us via e-mail at the following address: octagona@octagona.com or on our number: +39 059.9770184

INDIA: trade with ASEAN on the rise

03/10/2011

Increasing trade between India and ASEAN continues to send very positive signals. According to data provided by the Indian Ministry of Commerce and Industry, there has been a rise in commercial exchanges between the two players by 24%, increasing from USD 41.2 billion in 2009 to USD 51.3 billion in the last year. Nowadays, India is the seventh largest trading partner of ASEAN.

The consolidation of economic relations between India and ASEAN is mainly due to the Free Trade Agreement signed in 2009 (whose value amounts to USD 50 billion USD), that has allowed a gradual elimination of duties in an eleven countries area where 2 billion people live.

Thanks to this agreement, India's exports to ASEAN countries grew by 33% in 2010, reaching USD 23.1 billion, while ASEAN imports reached USD 28.2 billion USD, with an increase of 18%. Foreign direct investment in India from ASEAN countries have recorded a significant growth in 2011, reaching USD 14.25 billion in May.

The Indian Minister of Commerce and Industry, Mr Anand Sharma, wants to enhance the trade between India and ASEAN for a stronger economic integration: with regard to this, there are further negotiations for an agreement in the field of services and investments. Everything suggests that trade between the two global players will increase.

OCTAGONA AND FRANCHISE INDIA

16/09/2011

Octagona is again protagonist in the Indian market. The company has signed an important exclusive agreement with Franchise India, with the purpose of developing and strengthening the activities of all Italian companies operating in the Indian franchise sector.

This move, made possible thanks to the synergic vision of the two parties and aimed at increasing Octagona’s penetration in the European market, is intended to provide franchise companies with all the necessary support, with special focus on the following sectors:

- Food and beverage

- Catering

- Fashion, luxury and accessories

- Leather goods

- Watches

- Eyewear

Thanks to this agreement, all the Italian realities seeking to develop their business in Asia, and in particular in India, can now count on Octagona. Their commercial activity will be strengthen thanks to the support of Octagona’s consultants, who will accompany any model with strategic vision, with the expertise of Franchise India.

Franchise India in fact, active since 1999, is the largest integrated company offering franchising solutions in India. Over the years, it has helped hundreds of companies and investors in various sectors to identify the ideal way to start a franchising, through a complete assistance able to guarantee commercial and business expansion, both nationally and internationally.

For further information or to request a meeting with our consultants, please contact us at the following email address: octagona@octagona.com or call the telephone number 059.9770184

INDIA: trade with Latin America on the rise

05/09/2011

India strengthens its presence in Latin America. The Asian country, that is seeking raw materials and new export markets, has in the last few years considerably intensified the trade relations with the Subcontinent countries, eroding significant market shares of the traditional investors in the region, namely the US and the EU.

India is globally emerging as one of the main investors abroad and has identified Latin America as one of the key markets to direct its exports and investments. The entrance of Indian capital is supported by the local Governments and Institutions (such as the Inter-American Development Bank), in whose view the increase of such trade flows is a growth guarantee for the region. The exchanges between Latin America and India and China have moved from the 2% registered in 1999 to the current 9%: the drivers of this growth, with regard to India, are imports of crude oil, soy and copper and by the exports of chemicals, medicines, textiles and engineering products.

Today, the key Latin American markets for India are Argentina, Brazil, Chile and Colombia, which attract 90% of the exports: Brazil is India’s number one investment destination, with a share of 25%, followed by Argentina, with a 10% share. The agreements signed in the recent past between Mercosur and India and between Chile and India have undoubtedly represented an important stimulus to the economic growth of the countries involved.

The ties between India and Latin America are destined to rise: besides raw materials and energy resources, of which India is in desperate need, agricultural products and minerals (the main products exported by the Subcontinent) shall be increasingly sought after by the Indian middle class and its rising demand for consumer goods.

INDIA: the footwear sector confirms the positive trend

18/07/2011

Although India is one of the largest shoe manufacturers in the world, there is occurring internally a spectacular growth in this sector: Adapting to Western tastes, population growth, economic growth, the emergence of social classes with a higher purchasing power, the presence of clusters in areas of New Delhi and Chennai and the importance the government attaches to the segment are the main factors that are driving the growth in the demand in India. In particular, sales of womens and children’s footwear are expected to increase.

To understand the enormity of this market, it is enough to think that, based on data supplied by the Indian Council for Leather Exports, Indian domestic production exceeds 2 billion pairs of shoes, of which 115 million are destined for export and the rest, about 95%, are for the consumption in the domestic market. According to an analysis by Datamonitor, the market growth in 2010 was 9.37% and is expected to increase both in 2011 (+10.1%) in 2012 (+10%).

From the data provided by the Indian Ministry of Commerce and Industry in 2009, it is seen that China and Italy are the main exporting countries. Specifically, the Chinese share exceeds half of total imports in Indian at 51.3%, while Italy is in second place ranking with 9.2%, followed by Nepal (4.4%), Vietnam (4.1%), Thailand (3.7%), Malaysia (2.3%), Taiwan (1.7%) and Germany (1.6%).

INDIA: NEW INFRASTRUCTURE MEASURES

20/06/2011

In order to sustain growth and reduce regional inequalities, India is developing major projects in infrastructure. Specifically, the Government of Karnataka, a region located in southwestern India, and having as its main city, Bangalore, has succeeded in obtaining World Bank funding of USD 350 million for the expansion of road transport. According to Venu Rajamony, Assistant Secretary of the Department of Economic Affairs of the Government of India, this investment will contribute significantly to the development of KSHIP II (Karnataka State Highways Improvement Project), an initiative of the Department of Public Works of the Government of Karnataka: the project includes an expansion of road network for a distance of 1.231 kilometers, ensuring better accessibility and better services for the transport of people and goods. The Government of Karnataka may avail of the loan, and this extra funding would also encourage private investors.

New Delhi is also moving on other fronts. The Dedicated Freight Corridor, a project known as such in the western part of the country, will join together by rail Dadri (near New Delhi) and Jawaharlal Nehru Port in Mumbai. This is key to the improvement of the infrastructure sector in India. In this regard, the Central Government is looking for new public and private funding to the tune of more than USD 2000 million.

INDIA: the extraordinary evolution of the construction machinery market

23/05/2011

The market for machinery and construction equipment has reached record figures in India. According to the analysis and estimates provided by Off Highway Researches, a company that provides services to companies operating in the construction segment, 58,715 units of these machines were sold in 2010, an increase of 42% compared to 2009 (when the figure stood at 41,409 units sold).

In addition to the backhoe machines, which represent almost half of all sales and that have shown an increase of 59% over the previous year, it is important to highlight the incredible growth shown by loaders with 550 units sold and a +90% growth registered. Even other types of equipment have shown remarkable figures: dumpers, mini excavators, wheel excavators, together with other types of products have reached a +99% growth.

The data arrived at by the search for Off-Highway Research are impressive and confirm the incredible trend of the sector. The outlook for construction machinery show not only that the Indian market will double their numbers in the coming years, reaching 86,420 units in 2014, an increase of 112% compared to 2009, but also that demand shall increase for all segments of the industry.

ITALY AND INDIA will strengthen the cooperation between the two countries

26/04/2011

Italy and India strengthen their economic and political relations. In the month of November of the current year is foreseen that a task mission of ”Made in Italy” headed by Minister of Economic Development, Paolo Romani and accompanied by a delegation of Italian entrepreneurs. As a sequel to the last visit of March 24 in New Delhi and Mumbai, led by Confederation of Industries and comprising of Italian companies operating in infrastructure and energy sectors, the mission of November is to make operational the Joint Business Council. Confindustria and its Indian counterpart, FICCI (Federation of Indian Chambers of Commerce and Industry), will be through this instrument construct a forum for dialogue and cooperation aimed at further improvement of trade relations between the two countries.

The statistics of the Indian economy continue to be impressive: according to Business Standard, in February of this year Indian exports experienced an increase of 49.7% compared to the same period last year, reaching a figure of $ US 23.6 billion, while imports increased by 21.2% to $ US 31.7 billion. In the same month of February, New Delhi approved as many as 19 new proposals of foreign investment, for a total value of $ US 300 million and also government institutions and enterprises are developing strategies for the development of various sectors, amongst which are the railways, renewable energy, and automotive sectors.

Intensifying relations with India and its economy is for Italy, a fundamental objective to not be left out of the new global dynamics.

Octagona and New Institute of International Business

08/04/2011

Saturday, April 30th, at the New Institute of International Business of Promos (Special Agency of Chamber of Commerce of Milan), Octagona, represented by Alessandro Fichera, shall conduct a two hour lesson in the Executive Course on "Markets and business opportunities: Far East," being organized by NIBI. The other two hours will be dealt with on 28th May. Specifically, Octagona shall provide an in depth focus on aspects of communication, marketing, business development in India, and shall analyze case studies of Italian companies that were able to undertake the internationalization process in India. Octagona shall also provide necessary information in relation to the advantages of entry into the market and sectors that offer the greatest potential. The training programme, dedicated to the internationalization of SMEs and designed for entrepreneurs and export managers, aims to provide in-depth knowledge shall focus its target to train professionals to be able to operate effectively and efficiently in Far East Asia.

Octagona in Modena to focus on emerging markets

06/04/2011

Thursday, April 14, at the Family Center of Nazareth of Modena (Via Formigina 319) from 18.00 to 19.30 there will be an in depth meeting on India, which shall be explained the main economic, social and political issues in India and will be discussed the opportunities and benefits of an internationalization process for companies in emerging markets. This focus is intended to provide all necessary information to companies who have intention to access the Indian market. Luca Fiorani of Mediolanum shall comment on the business environment in general and on emerging markets in particular, Alessandro Fichera of Octagona shall present an in depth analysis on India and Sebastiano Majni, of Majni Studio, shall present a project to support the development of entrepreneurial initiatives in India.

OCTAGONA and Business Networks

21/03/2011

Company networks represent a free and flexible aggregation of companies with the aim of increasing their competitiveness and innovation, especially in foreign markets. This is a useful tool for Italian SMEs wishing to undertake a process of internationalization of its activities and unable to penetrate foreign markets with strong growth potential alone.

Octagona, convinced of the importance and usefulness of this tool, it promotes formation of networks for Internationalization and supports all Italian companies that want to know more, providing them with all the necessary information. The aim of the company network is to strengthen the company's position in the global ambit, thanks to the union and exploitation of knowledge accumulated through the joint interaction of the players in the network. Company networks are complementary to the creation of new products, shared resources and intangible assets, are aimed at creating technical and organizational interdependencies, economic relations are stable and their activity is determined by a precise form of coordination. The business networks also make response times to customers vastly more flexible, thereby improving the culture and company know-how: through this tool you can share investments that would otherwise not be possible by an individual firm. There are multiple benefits of establishing such a network.

For more info, contact our consultants at octagona@octagona.com.

Octagona with Young Industrialists of Novara

16/03/2011

On Friday, March 25, at the Industrial Association of Novara, Octagona shall hold an orientation seminar on the Indian market for young Industrialists of the Province of Novara. The in-depth analysis will focus on the economic and entrepreneurial possibilities and opportunities in India and the benefits of the internationalization process of firms in that market. The meeting has been organized in view of fact-finding mission of the Young Entrepreneurs of Novara in India, so that they can acquire the skills and tools necessary before approaching the Indian market.

INDIA: great market opportunities for machine tools

28/02/2011

The machine tool industry is booming in India: the growth of the sector and the great expectations have driven many foreign companies to identify it as a priority market. Despite the progress of local industry, Indian companies do not have the necessary technology and the supply (in particular for the most sophisticated machines) depends largely on imports. Currently, in India approximately 70% of these machines are imported and more than 70% of them are computer numerical control machines. The data, published by the ICEX and the Indian Ministry of Commerce and Industry, are very interesting: India is the eighth country in the world for usage of machine tools and the nineteenth for manufacture. Moreover, imports from 2003 to 2009 grew by 511%. The main exporting countries to India are Japan, Germany, China, South Korea, Italy, United States, Taiwan and Spain. Only Taiwanese and Chinese companies operate on a lower segment of the market, that does not need a developed technological level.

Octagona for Confindustria Modena

23/02/2011

Wednesday, March 9, 2011, at Confindustria Modena, Octagona, through one of its Senior Partners, will hold a meeting and consulting day on India and Far East. The main topics are on economic, social and political aspects of India and SAARC region, Vietnam and ASEAN region, with particular attention to opportunities and advantages of a internationalization process in Asia. Confindustria member companies will have the possibility to confront themselves with the people from Octagona, in order to better understand how to penetrate these markets.

For further information, please contact the internationalization area of Confindustria Modena, Mr. Davide Ansaloni (phone +39 059 448311).

Octagona at BC India 2011

11/02/2011

Octagona once again a protagonist in India. Under the Project Hi-Mech III, created by Confindustria Modena and Confindustria Emilia-Romagna to support companies that wish to follow the internationalization path towards India, Alessandro Fichera participated in the first edition of the BC India 2011, a fair dedicated to the construction industry machinery, which took place from 8th to 11th February in Mumbai. The fair, which will be a biennial one aims to present innovative technology in the fields of construction and infrastructure and is intended to be a true business platform, capable of bringing together all the major companies operating in the field on a global level. Octagona has provided the necessary support to the ten Emilian firms that participated in the fair in order to address the challenges and opportunities in the local market which is experiencing quantum growth.

To download further information and photos about the event click here

To view the events in which Octagona has participated click here

INDIA: opportunities in wine

31/01/2011

The significant structural and economic changes experienced by India in recent years have had profound repercussions even on the society: although in India there is no real culture of wine drinking, the emergence of the middle class makes a significant adjustment amongst Indian consumers who have western standards and habits, so that even a product like wine begins to be assimilated by the Indian society. Until now, wine drinking is regarded as a luxury, but expectations of growth in demand in the sector are enormous. Today, the markets of the major wine - exporting countries are fairly saturated and increasingly dependent on their exports (keep in mind the French champagne and its incredible success in Chinese market). The average annual growth in the volume of imports between 2005 and 2008 was 32.7%, although showing a decline in the sales prospects for the period 2007 to 2011, with an average annual growth of 13.5%. We must consider that in terms of the value in USD, the sales in 2011 shall reach 302.2 million in respect to the sales of USD 215 million in 2008. There are three countries that dominate the Indian wine market: France (48% in terms of earnings in USD), Australia (15.3%) and Italy (11.1%), followed by the United States. One should also consider Chile, Argentina, Australia and South Africa as well as they have been successful in gaining significant market share in India.

Octagona at the 5th Vibrant Gujarat Summit

17/01/2011

"The world looks at India, and India looks to Gujarat" with this sentence can be summarized the very positive outcome of the fifth edition of the Vibrant Gujarat 2011. This Indian summit, which saw the participation of 1400 delegates from 101 foreign countries (including United States, Brazil, France, Germany, Italy, Japan, Indonesia, Mexico, Australia, etc..), even for this year's edition has continued to attract substantial investment and concrete proposals from Indian and foreign companies: the Vibrant Gujarat is increasingly becoming a real useful platform for large and small domestic and foreign companies wishing to internationalize their business outside its borders, not only through import-export but also to draw important partnership agreements, strategic partnerships and joint ventures. One estimates that during the two day event, were signed contracts for a value of almost € 6 billion. Octagona attended the event on a direct invitation from the secretary of the honourable chief minister Mr. Narendra Modi, for the SME Convention in Gandhinagar on January 13th and was able to talk to Mr. Saurabh Patel, Minister of state for Industries, with Mrs. Bhagyesh Soneja, President of ASSOCHAM (Associated Chambers of Commerce India) and Mr. Akshay S. Sheth, Regional Director of ASSOCHAM. Octagona being in a position to exploit the opportunity presented, conveyed the interest of the Italian companies in the state of Gujarat and communicated the details of the proposals of our clients’ businesses in the state of Gujarat.

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OCTAGONA at the 5th Vibrant Gujarat Summit

14/01/2011

"The world looks at India and India looks at Gujarat," said ICICI Bank chairman Chanda Kochhar and she in one phrase encapsulated the almost magical ability of Honourable Chief Minister Mr. Narendra Modi to convert corporate dreams to reality. Vibrant Gujarat has been attracting sizeable investment proposals from domestic and foreign companies since its start in 2003. The last summit drew project plans worth INR 12.44 lakh crore (€ 212,671 million). Several critics called these figures unrealistic and inflated, but state official said that 40% of the MoU signed during the 2009 summit are being implemented and 60% projects inked in 2007 are off the ground. Gujarat principal secretary Mr. Maheshwar Sahu in a statement issued to the press stated that INR 14,90,000 crore (€ 242,987 billion) worth of investment proposals came from various industries on the first day of the summit. Octagona India Pvt. Ltd. invited by the principal secretary of Mr. Modi attended the SME Convention in Gandhinagar on 13.01.2011 and interacted with Mr. Saurabh Patel - Honourable minister for industry, mines & minerals, Ms. Bhagyesh Soneji - Chairperson ASSOCHAM and Mr. Akshay S. Sheth – Regional Director ASSOCHAM on behalf of Italian companies to communicate the details of the interest of Italian companies in the state and to understand how best to leverage the opportunities offered.

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Indo Italian Distribution JV - Farm Equipment

07/12/2010

Maschio-Gaspardo SpA an Italian rotary tillage equipment manufacturer and Mahindra & Mahindra (M&M) have signed an agreement for exclusive supply of complete range of products of Maschio to Mahindra AppliTrac, part of M&M's farm equipment sector business.

Dr Pawan Goenka, president-automotive and farm equipment sectors M&M and Mr. Egidio Maschio, president, Maschio Gaspardo SpA signed the agreement.

To commence with, rotavators manufactured by Maschio shall be marketed exclusively under the Mahindra brand name. These shall be made available through the Mahindra and Swaraj dealerships.

To follow shall be other rotary tillage equipment for planting, seeding, crop care and crop residue management. This equipment would be sold under the Mahindra brand name in the market.

Dr Pawan Goenka in his speech said: “We have envisaged the vision of delivering prosperity to farmers across rural India by providing innovative crop specific farm technologies aimed at enhancing productivity, aptly termed as ’FarmTech Prosperity’. The Agreement with Maschio is yet another step towards achieving this vision. This agreement will facilitate availability of an extensive variety of farm machinery to provide better mechanization to farmers. With this association we hope to provide world class products to increase rural productivity and efficiency.

AGREEMENT OCTAGONA - CIS BUSINESS SCHOOL

06/12/2010

Octagona has commenced collaboration with CIS Business School. An agreement was in fact signed through which Octagona becomes an accredited trainer of business school of the Industrial Association of Reggio Emilia. In particular, Enrico Perego and Alessandro Fichera, senior partners of Octagona, will open on a short master’s course on the Basics of business functions to employees in connection with foreign affiliates, aimed at employees of large companies in the Mechanical Engineering Group and middle managers of companies in other industries, which have branches abroad. The lectures by Octagona, which will begin Dec. 21 and will last a total of 16 hours, will focus on the themes of the global economy concerning the emergence of BRIC nations and the processes of internationalization; to follow; it will focus on management issues related to working with branches in foreign countries and human resource management.

The short master aims to show the process of internationalization of firms and global contexts, to highlight how changes in the global economy have also changed the management of business processes, bridging the gap of the management culture and to provide basic tools to work abroad with a broader and more complex vision to better understand how the technical, managerial and business aspects can no longer be regarded as separate.

To 80 hours of classroom should be added 16 hours of project work, to translate into business realities by the participants the impressions gleaned from the teachers.

INDIA: THE EXPONENTIAL GROWTH OF THE PORTS SECTOR

06/12/2010

Economic growth and expansion of international trade has transformed the Indian port sector, which is a key element in the globalization of the Indian economy, in recent years. Trade in the ports has increased more than 78% since the early nineties. According to the 2007-2012 Five-Year Plan, India needs investment of approximately $ 500 million for the modernization of all infrastructure facilities in India, the Government in this regard through the National Maritime Development Programme (NMDP), wanted to give impetus to the port sector to ensure that it reaches at least 9% (double the 4.5% recorded in 2008) of national GDP. These measures are designed to increase interest and attract capital from foreign investors in a sector, which has very concrete future, in order to improve its competitiveness against other Asian countries.

OCTAGONA SEMINAR AT THE L'ORDINE DEI COMMERCIALISTI (RE)

03/12/2010

Thursday, December 16 at 9 am at the conference hall of foundation of certified public accountants of Reggio Emilia, shall be held a conference organized by the public accountants and the order of chartered accountants of Reggio Emilia.

Alessandro fichera and Enrico Perego shall be among the speakers at the conference, and shall explain the benefits of internationalization in today's business processes, analyzing the differences between export and internationalization and relocation and "strategic location". The keys topics of discussion shall be, the establishment of companies abroad, the progressive stages of penetrating a foreign market through a newly established local firm under the laws of the land, and the benefits to derive from the creation of joint ventures, whose goal is to show companies how to overcome the radical changes that have upset the balance of the global world. During the course of the seminar, they shall also discuss about the role of Italy in the global arena and its potential, the new geopolitical context which has prevailed in the international strategies and the importance of possible combinations and business networks.

OCTAGONA, SCOUTING SPA & ASDIR TOGETHER IN INDIA

29/11/2010

ASDIR, a delegation comprising of 30 directors of Rural Banks of the Trentino region, thanks to the support and organization of Scouting and Octagona SpA, met with both Italian and Indian experts from companies and banking institutions in India. The objective of the joint mission was to start an awareness process for the Trentino Rural Banks on the meaning of the word internationalization, which could help understand the many different evaluations that a company needs to make when entering new markets. ASDIR therefore decided to focus their attention on the Indian market and what India can offer to the Italian and European companies. With support and accompaniment of Octagon and Scouting SpA, ASDIR could get:

A better understanding of Indian financial institutions through the organization of targeted meetings;
Gain a detailed understanding of the Indian banking system, based on experience and direct contacts with private and public banks;
Assess the status of the cooperative system in the Indian banking sector;
Understand the evolution of demand for products, services and technology by the Indian market, through analysis of the retail sector (supermarkets and retail sales) and visits to shopping malls;
Dealing with Italian and Indian entrepreneurs, through meetings and visits to Italian manufacturing companies already established in the local Indian market.

In the four days of the mission, which focused on the cities of Delhi and Mumbai, ASDIR attended a seminar on India's economic and financial standing, in the presence of His Excellency Giacomo Sanfelice di Monteforte, convened a meeting with the Delhi State Cooperative Bank, took part in a panel discussion at the headquarters of the Indian Banks' Association (IBA) and had the opportunity to visit the Mumbai Stock Exchange. For concluding the mission, on the last day the group attended a meeting with the Reserve Bank of India (RBI) and the Kapol Cooperative Bank. Both in Delhi and Mumbai ASDIR visited manufacturing concerns of Italian origin in India.

FDI in Retail

27/10/2010

On 27.10.2010 FICCI organised an interactive session on FDI in India with Mr. Subodh Kant Sahai, Hon’ble Union Minister for Food Processing and Mr. Mike Duke, President and CEO, Wal-Mart stores.

There were presentations by Wal mart and a small talk by Mr. Sahai, but what was interesting that Mr. Sahai mentioned that there is a growing demand for increasing the FDI in the sector and also for allowing the opening up of retail stores for the end user.

The lobby is strong and he feels that soon, there should be a decision reached on it. Although he did not commit on any date at the forum.

What is interesting to note is that Wal - Mart is highly upbeat and positive about the retail market and is especially positive about the opening up of the FDI for multi brand retail based upon the momentum towards a possible policy shift.

The Indian Rupee gets a symbol

16/07/2010

The Indian Ruppee today joins the elite currency club by adopting a symbol to give it a distinct identity.

The cabinet gave its approval on Thursday, the 15th of July'2010 to the symbol which is a combination of the Roman letter "R" and the Devnagiri "Ra".

The symbol was chosen from the 3,000 entries received in a public competition which were evaluated by a jury headed by the deputy governor of RBI.

Indo - Italian JV: Kinetic FGTecnopolo

02/07/2010

An equal JV was announced on Thursday between Kinetic Communications, the engineering services arm of the Kinetic Group, and the Italian group FGTecnopolo to provide design, architectural and detailed engineering services for large infrastructure projects.

Kinetic FGTecnopolo, will set up an engineering centre in Pune with an initial investment of $200,000 (about INR 10 million).

The JV company shall look at opportunities in India, while also supporting FGTecnopolo's global operations.

In the words of Ms Sulajja Firodia Motwani, Director, Kinetic FGT, the JV would expand Kinetic's presence in the infrastructure sector in India with a focus on urban infrastructure such as special economic zones/urban townships, transportation projects such as airports, seaports, railway stations, and other public or private works in retail or hospitality sectors.

Paul & Shark enters India

01/07/2010

The luxury sportswear brand Paul & Shark from Italy made its entry into the Indian retail world on 10.06.2010 by opening a 100 sq. metre store in the upmarket DLF Emporio mall in New Delhi.

The brand has entered the Indian market through a 50:50 joint venture with a Reliance Industries group company, Reliance Brands and plans to expand its chain to 15 exclusive outlets across India within five years.

Present at the opening of the store were HE Mr. Roberto Toscano, ambassador of Italy to India; Mr. Andrea Dini, Global CEO and Mr. Darshan Mehta CEO & president Reliance Brands and HE Mr. Ferdinand Maultaschl the ambassador of Austria to India amongst a host of notables.

India to grow at 8.3% in 2010 - UN

07/05/2010

"Economic and Social Survey of Asia and the Pacific 2010"' - an annual publication of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) pegs India's economic growth in 2010 at a robust 8.3%.

According to Noeleen Heyzer, UN under-secretary general and executive secretary of ESCAP, it is for the government to leverage the economic rebound by investing in social programmes aimed to benefit people hit directly and hardest by the crisis, take measures to reduce poverty and in turn create a more sustainable economy.

According to the survey, Asia - Pacific represents 62% of the world's population and gives regional policy recommendations for sustainable growth.

World Bank pegs India growth at 8%

23/06/2009

According to World Bank, India is projected to grow at 8% in 2010 to overtake China with an expected growth rate of 7.7% to become the fastest growing economy for the first time.

The report further adds that since the potential of global growth will be realised only by 2011, the existent gaps between the actual and potential production as well as unemployment and disinflationary pressures may continue to pile.

A further advice is given to governments while drawing up strategies to reverse the recent expansionary monetary & fiscal policies once the world economy rights itself.

India: Investor number two in UK

19/06/2009

India has replaced Japan to become Asia's largest supplier of FDI in UK.

According to a press release issued by the British High Commission in Chennai, there has been a 44% increase in FDI based on 108 projects from company's like Dr. Reddy's Labs, Zanec, IMI Mobile, Sri Jugal Kishore Jewellers etc.

All these companies are from the southern half of India.

This current crop of investors of 2008 - 09 join an already robust list of investors from the south like Ma Foi, Sify, Polaris, Orchid Pharma, Apollo Hospitals to name a few.

Access goes technical – Skidata AG in India through a JV

18/06/2009

The 1 billion Swiss franc company Skidata AG has formed a 49:51 JV with the Mumbai based INR 3,500 million Hinditron group to provide access technology for cars & people in India.

The Swiss firm has the option to gain a majority stake in Skidata India with a further 2% acquisition from Hinditron in the next two years.

Other than technological solutions, the company shall also construct a central monitoring support system for its existing clients in India at a cost of INR 70 - 80 million.

The clients Skidata has acquired at the moment include the International airports at Bangalore & Hyderabad, The Four Seasons Hotel in Mumbai, InOrbit Mall in Mumbai, premium projects of DLF in New Delhi and the BCCI for the IPL matches.

The JV in the years ahead looks to establish an R & D centre in India.

India top retail investment destination: A T Kearney

16/06/2009

India tops a 30 emerging market list as the most attractive retail investment destination in a study titled Global Retail Development Index (GRDI) by A T Kearney.

This the fourth time in five years that India has topped the list. The only time it lost its position was in 2008 when Vietnam was ranked number one and India number two.

The study also noted that, "larger, resilient developing countries sit atop the 2009 GRDI as they are most likely to lead the economic recovery."

As domestic retailers enter the restructuring mode as fallout of the recent economic downturn and

Defence JV - L & T and EADS

06/05/2009

L & T, the largest engineering company in India on Tuesday, the 5th of may' 2009 announced a JV with the European company EADS to manufacture for the Indian defence forces.

Mr. AM Naik, the chairman of L & T said that the company intends to invest INR 20,000 million over a three year period inclusive of the INR 15,000 million being invested in a defence shipyard at Ennore.

The estimated earnings are in the tune of INR 25,000 million.

The JV company shall be based in Talegaon near Pune but the two companies have yet to give a clear picture of the shareholding pattern as the final structure shall have to be inline with the government guidelines.

The move is seen as creation of an industrial base in India as opposed to being a technology supplier, and in view of Mr. Stefan Zoller, CEO EADS is a proof of EADS' commitment to India.

Revival of manufacturing sector - ABN PMI

05/05/2009

The monthly purchase managers index (PMI) of ABN AMRO crosses 50 for the first time since October 2008 and has risen steadily since it fell to 44.4 points in December 2008.

If the PMI reads below 50, it means that the manufacturing sector which accounts for 18% of Indian GDP is on the decline while above 50 indicates expansion in the segment.

To arrive at this study, ABN AMRO spoke to 500 purchase executives across segments.

The result is in sync with the UBS lead indicator (LEI) which is on the ascend for the third consecutive month in March 2009 which directly points to recovery in Industrial activity foreseen by June 2009.

Belgian Omega Pharma ties up with Modi - Mundipharma

28/04/2009

In a deal valued at € 2 million Omega Pharma of Brussels and Modi - Mundipharma of India tied up to form a new entity to be called Modi Omega Pharma. This deal marks the entry of Omega pharma on the Indian scene.

According to the newly inked deal, Modi Omega Pharma with a start up capital of 2 million euros will bring eight over the counter (OTC) Omega pharma brands from the skin care, hair care, anti-snoring, anti-flatulence and anti-headlice segments in to India.

Projected sales for the year 2009 are Euro 200,000 to go up to Euro 2 million in 2010.

The production of these non precription drugs shall be outsourced to Modi - Mundipharma who plans to build a plant specially for the joint venture.

Mahindra Group - 6th largest conglomerate in India

16/04/2009

With the acquisition of 51% in Satyam Computer services, the Anand Mahindra led Mahindra Group has climbed a notch up in the big league of India Inc. The group finds a mention in the Forbes Top 200 list of the world's most reputable companies.

It is a group with diverse interests, from financial services, retail, logistics, automotive components, IT to infrastructure development.

Apart from a recent entry into the retail format with a shop specializing in mother & childcare, Mahindra group has made a foray into the two wheeler segment too.

UNIDO: India among top 12 manufacturing nations of the world

05/04/2009

According to United Nations Industrial Development Organisation (Unido) developing countries produce as much as 30% of the world manufacturing value added (MVA) at the end of 2008 as compared to the 1990 figure of 16%.

Amongst these Asian countries alone account for nearly 3/4 of the MVA.

The share of MVA in India’s gross domestic product (GDP) stood at 14.8% in 2006 compared to 13.8% in 2001

Based upon 2007 figures, India ranks thus:

4th in Textiles segment after China, USA and Italy;
5th in electrical machinery and apparatus;
6th in basic metals;
7th in chemicals and chemical products;
10th in leather, leather products, refined petroleum products and nuclear fuel;
12th in machinery and equipment and motor vehicles.

Among industrialised countries, while Japan accounts for most MVA per capita, and next in line are Switzerland, Singapore, Ireland, Finland, Sweden, USA, Germany and Austria. Luxemburg, Republic of Korea, Denmark, Iceland, Canada, Belgium, United Kingdom, Norway, Netherlands, Italy and France come lower down the list.

Manufacturing still accounts for more than 20% of the GDP of Japan, compared to the 17% average for all industrialised countries, and for India the manufacturing segments contributes 15% of the GDP.

Order of the Star of Italian Solidarity: Diljeet Titus

03/04/2009

Diljeet Titus, founder of the Delhi based Indian law firm Titus & Co. has been awarded the "Order of the Star of Italian Solidarity" by H. E. Roberto Toscano the Italian ambassador to India on behalf of the Italian president Honourable Mr. Giorgio Napolitano.

Mr. Titus is also the chairman of the northeren region chapter of the Indo Italian Chamber of Commerce.

The award is for local & foreign citizens for their contributions to the Italian society in the earmarked segments of literature, economy, public service, philanthropic and humanitarian activities.

Indian economy – every segment open to foreign investment

14/02/2009

Based upon the new norms to compute the foreign holding in an Indian company brought out by the GoI on Friday, the 12^th of February’ 2009. The earlier forbidden sectors like multi brand retail, banking, broadcasting, and air transport services etc.

Any company shall be considered Indian owned if foreigners have less than 50% beneficial ownership in the company and if the said investors do not control the company.

As per the new guidelines, say a company A registered in India has a 49% stake holding by a foreign investor while the Indian partner holds 51% of the stake; now should this company A invest in any other company – up to a 100% investment – it will be considered investment by an Indian company even if the sector is one in which the FDI has either been capped like telecom or restricted as in multi brand retail.

According to Mr. Kamal Nath, the union minister for commerce & industry, the revised norms shall bring transparency and uniformity to the assessment of foreign investment based on control and ownership. While assessing the foreign investment, Mr. Nath clarified that investment in all forms FDI, investment by FIIs, non-resident Indians, American Depository Receipts, Global Depository Receipts, Foreign Currency Convertible Bonds, and convertible preference shares - would be taken into account

Investments by any company, which has a majority foreign stake, will be considered entirely as Foreign Direct Investment and the only exception will be when a joint venture company creates a wholly-owned subsidiary in India. In that situation, the foreign stake in the subsidiary company will be considered as equal to the stake in the holding company.

An Indian company, according to the press note issued, would be deemed contro

Cello Pens - The French Connection

23/01/2009

The noted french stationery & pen manufacturer has bought 40% stake in the Mumbai based Indian stationery manufacturer Cello Pens in a deal valued at INR 8000 million ($160 million) with an option to increase its stake to 55% in 2013.

A win win for both, the deal allows Cello to expand its horizons and for BIC to step into the INR 20,000 million stationery market growing at an annual rate of 20%.

While BIC is over a 60 year old company, Cello is a rank newcomer in comparison being only a 12 year veteran in the field. While the former has a turnover of INR 11,000 million (Euro 170 million) , the latter has a turnover of INR 4,500 million.

Industrial growth in India catches up

13/01/2009

The Indian industrial production after posing a negative growth in October' 2008 after a period of 15 years has moved up to post a positive growth in November 2008 much to the relief of all involved.

The Index for Industrial Output (IIP) registered a 2.4% growth in November as against the negative 0.3% in October which had alarmed the economists.

Factory output rebounded from a negative 1.2% year-on-year (y-o-y) growth in October to a positive 2.4%. Ten out of 17 sub-groups in the manufacturing segment posted positive growth in November. The April-November period witnessed a cumulative growth of 3.9% over the corresponding period last year

The production of consumer durables, too, declined 4.2% y-o-y, indicating some checks put on discretionary expenditure.

Yes Bank’s chief economist Shubhada Rao commented by saying that, “With the aggregate demand in the economy picking up, deflationary pressures will be kept at bay”.

She also expressed that the worst patch in industrial growth was over and that from here on the industrial growth would be in the 2.5-4 % range for the rest of the fiscal.

DLF to franchise ALCOTT & SIA

23/10/2008

The real estate giant has done it once again! In a recent announcement, DLF disclosed that is has entered into franchising agreement with two new European companies: Alcott from Italy & SIA Group from France.

While Alcott deals in casual wear for men & women, SIA Group deals in home goods.

It is the real estate boom of the last five years which has created a merket for the products of the SIA Group.

DLF is currently in talks with manufacturers of accessories for both men & women, travel luggage, apparel and watches to add to its current portfolio of brands.

Emergency Medical Services in India

21/10/2008

EADS, a world leader in aerospace defence and related services through its division EUROCOPTER is in talks with a host of leading hospitals in Delhi, Mumbai & Bangalore to commence providing emergency medical services.

An initial delivery of four helicopters equipped for emergency services is what the company hopes will mark its foray into India.

Already 480 helicopters of Eurocopter fly in India in both the military & civil sectors and of this over 50% is commandeered by oil & gas sectors.

The company also sees scope for more business through heli tourism. The current order book is 20-25 helicopters for the Indian market.

FDI norms may change

20/10/2008

Lengthy discussions are being conducted in the hallowed halls of North Block & Udyog Bhawan to further liberalise the FDI norms as well as to relax regulations to attract further invetments in these financially turbulent times.

The plans on the anvil are:

- To allow 100% FDI in single brand retail whereas the current cap is 51%
- To permit 50% FDI in multi brand retail where none is allowed currently
- To allow more asset recast companies to operate in India
- To relax the stipulations under Press Note 1 to make the entry of foreign companies easier
- To allow foreign companies to buy shares in the domestic stock market

Nano gets a new home

08/10/2008

After weeks of indecision and will he won't he, Ratan Tata finally decided to move the INR 2,000 crore Nano project from Singur, West engal to Sanand in the Ahmedabad district of Gujarat.

The deal was finally signed between the Gujarat government and the Tata Group on Tuesday, the 7th of October' 2008.

The project has been allotted 1,100 acres in villages Chharodi & Charal just 25 kilometers from Ahmedabad.

The rollout of the first batch maybe delayed from December' 2008 to the first quarter of 2009 but speculations are still rife on that issue.

Exports from SEZ may show a growth of 451% - ASSOCHAM

05/09/2008

A study conducted by ASSOCHAM (Associated Chambers of Commerce and Industry of India) has shown a growth of 192% between FY 2005 – 06 and FY 2007 – 08 and the industrial lobby projects a growth of 451% by FY 2008 – 09.

Mr. Sajjan Jindal, ASSOCHAM president who made public the assessment of the chamber, in his presentation stated that the SEZ exports are expected to supersede US$ 116.14 billion by FY 2011 – 12.

According to the chamber, by the end of 11th five year plan the SEZ’s would attract investments of US$ 225 billion and as per the official records, by the end of calendar year 2009 the SEZ would receive investments to the tune of US$ 67.54 billion.

At present there are 90 SEZ’s in India with 353 units operational and 253 SEZ’s have been notified after the SEZ Act was passed.

India Focused PE Funds

05/09/2008

As per the PE Industry specialists, India focused funds are poised to see a rise in the June to December 2008 period. The fund is expected to be close to US $ 5 billion which is almost double the amount that was raised in the same period last year.

After closing a growth equity fund at $725 Million, Sequoia India Capital took its total corpus to $ 1.8 billion, while IDFC private Equity raised a third fund of $ 700 million in only a months’ time.

Venture Intelligence, a venture and private equity research firm, has put forward that India focused PE funds raised a little over $ 3 billion in the first half of 2008 while all of 2007 saw an amount of $ 8.5 billion.

In addition to the Sequoia and IDFC Private Equity, IL&FS Investment Managers is expected to close its $400 million fund any time soon, followed by Jacob Ballas' $500 million, UTI Ventures' $450 million as well as a few others who are in the process of putting together the funds.

India is new R & D hub for Airbus A 350 XWB

04/09/2008

For the A350 aircraft from the portfolio of Airbus Industrie, India shall be the key design and development centre.

Airbus Engineering Centre India (AECI), the company's high-tech aircraft component manufacturing facility in Bangalore, which commenced operations in April 2007 shall take up as its next project the design work of the A 350.

The A 350 XWB (extra wide body) is intended to give competition to the Boeing 777 and some models of the Boeing 787.

Airbus has been exploring various methods in which it can use India for both component manufacturing as well as making the best use of the potential offered in research and development. The first manufacturing agreement was with Hindustan Aeronautics Ltd (HAL) in 1998 to make doors for the A320.

Airbus had, in the past, outsourced its engineering projects to other Indian companies like Infosys, which participated in the designing of the A380s, HCL and other companies like CADES, Satyam and Quest.

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Investment in Port Connectability

25/08/2008

Southern railway, the arm of Indian railways responsible for the southern half of the continent, has announced an investment of INR 6500 Million over the next 10 years ' time in port connectivity projects at Chennai, Tuticorin, Mangalore, Ennore and Cochin.

A new 88.3 km line is being developed under the public - private partnership model with the Ennore port at an estimated cost of INR 4450 Million.

While in Cochin an 8.8 km line is being laid on the Ernakulam–Trivandrum line to connect Idapalli station with Vallarpadam at an estimated cost of INR 2450 Million. It shall be funded by the Ministry of Shipping.

Once the Vallarpadam container terminal is operational, the traffic is projected to increase from

1.5 trains today to 4 trains in 2014

The Indian railway intends to upgrade the terminal handling facilities at Tuticorin Port with an investment of INR 100 Million.

Sensitive sectors may go off the automatic FDI Route

12/08/2008

Airports and ports which are considered sensitive sectors may soon be taken off the automatic route of FDI. It is a suggestion of the home ministry that FDI clearance for such projects should be provided only after a complete verification under the proposed National Security Exception Act.

At present the FDI allowed for airports is 100% under automatic route in greenfield projects & in the case of ports is 100% under automatic route.

This is being looked at as a significant move as FDI has already flowed into the new international airports at Bangalore and Hyderabadas well as into the two companies managing the two most important international airports in India, those at Delhi and Mumbai

This change in policy comes in the wake of security apprehensions, security agencies too are in favour of strong checks to prevent breach of national security.

Italian transport aircraft in India?

12/08/2008

Alenia Aeronautica, a partner company of Eurofighter Consortium has approached the Tata group to promote the possible sale of tactical transport aircraft and anti submarine warfare aircraft to the Indian defence forces.

The company has already signed an MoU is negotiating a marketing & industrial cooperation agreement to promote the C 27J Spartan tactical transport & ATR 42.72 anti submarine warfare aircraft to the Indian services.

If the negotiations are successful, the MoU shall become a true contract

Upgradation Infrastructure: Airports in Chennai, Kolkata & Trivandrum

28/02/2008

US $ 3.13 Billion for airports – AAI (28.02.2008)

Continuing in the line of upgradation and modernisation of infrastructure, the Airports Authority of India has put aside a sum of INR 12,434 crores to be used in a five year period.

The disbursal is planned as thus:

43% has been earmarked for the three metro airports of Chennai, Kolkata & Trivandrum. Of this, Chennai shall get INR 2,462 crores; Kolkata shall get INR 2,417 crores while Trivandrum shall get a sum of INR 452 crores.

AAI has floated tenders for the modernisation of these airports which are slated to be at par with the Mumbai & Delhi airports which are currently being remodeled.

According to an AAI official, “A major portion of the funds will go into starting new facilities like integrated passenger terminals, constructing new runways and launching hi-tech communication services. These services will be developed to global standards and several foreign partners will be roped in by AAI for construction and on turn-key basis”.

The outlay will be spent installing new communication navigational systems for air traffic control (ATC) in inland and oceanic areas using satellite mode of communication at these airports for faster transfer of aircraft and cargo.

A part of the investment will also be made at the Delhi and Mumbai airports where AAI is providing ATC services

With the upgradation of infrastructure, AAI will be able to cater to passenger traffic of 10 crore passengers per year and will be capable of handling cargo traffic of over 50 lakh tonnes annually.

Railway Budget: FY 2008 2009

26/02/2008

The railway budget for FY 2008 – 2009 was presented in the Parliament on Tuesday, the 26th of February’ 2008.

The railway minister, Mr. Lalu Prasad Yadav presented his fifth consecutive railway budget and on the occasion announced that the Indian Railways have reached even higher in terms of profits & passenger services while giving out the earnings from freight services at $ 501.12 Million.

The current plan envisages a budgetary support of $ 1.972 Billion and looks to invest $ 9.40 Billion which is 21% more than the investments made in the last FY.

The priority areas are:

a) Enhancement of rail capacity
b) Modernization of railways
c) Traffic facility works
d) Expansion & Development of the network
e) Enhancement on high density network routes

The Indian Railways set new profit records in 2007-08:

• US$ 6.264 billion profit recorded
• Railway plan size increased from US$ 2.76 billion to US$ 7.51 billion in the last four years
• Freight traffic target of 785 million tonnes crossed to touch 790 million tones
• Freight loading up by 8.2 per cent in the first 9 months of 2007-08
• Revenue from passengers fare increased 14 per cent in 2007-08
• Railways fund balance up at US$ 5.13 billion

Bangalore: Excon 2007

28/11/2007

"Excon 2007” the largest and most important event in India in the sector of construction equipment and construction technology took place in Bangalore from the 14th to the 18th of November.

This year, also, Octagona has attended the fair by representing several firms based in Modena which operate in the above-mentioned sector. These companies have taken part in the project “Hi-Mech India”, funded by Regione Emilia Romagna and promoted by Confindustria Modena, Confindustria Emilia Romagna and BNL.

Besides having received deep sectorial market researches, the participating firms had the opportunity to visit in Bangalore, Pune, Mumbai, Coimbatore and Delhi selected Indian partners operating in the construction sector for mutual business opportunities.

The event, organised by the Confederation of Indian Industry (CII) met with outstanding success attracting 45.000 visitors and creating business enquiries for over Rs. 2000 crores.

BEML scouts for a partner

21/11/2007

The rail and metro business group of BEML is looking for a partner from overseas for a joint venture to manufacture high-end coaches in the country. In the JV, the group will have the majority of shares and all management control.

BEML has started talks with some foreign players. The company wants to tie-up with the partner to bring in technology to produce coaches either for co-production or the joint venture.

The proposed JV could be realized in any of the company’s facilities in Bangalore, Kollar Gold Factory and Mysore.

Italian company plans to set up 25 hotels in India

21/11/2007

Milan-based Domina Group is going to enter the Indian market by setting up 25 new hotels with an investment of € 417 million (Rs 23.650.990.202). The project will be run by an equal joint venture with the real estate company Shristi Holding: the Italian firm will manage the hotels, while the real estate development will be done by the Indian firm.

“We are the first Italian hotel operator to expand in India”, said Ernesto Preatoni, chairman of Domina Group. The company’s hotels are represented by three different brands:

Domina Hotel;
Domina Prestige;
Domina Inn.

Italy supports Indian Small and Medium Enterprises

20/11/2007

Italy is going to invest more than € 3 million for a project, called Consolidated Project for SMEs Development in India, aimed at developing Indian small and medium enterprises and improving their competitiveness.

The project will be overseen by the Ministry of Micro, Small and Medium Enterprises and implemented by the United Nations Industrial Development Organization (Unido).

The sector that have been identified for the project are:

leather (tanning, footwear and leather goods);
auto components.

The industrial clusters that will receive support are Agra for footwear, Chennai for tanning, footwear and auto component and Shantiniketan (West Bengal) for leather goods.

Today Italy is one of the world leading countries in the SME cluster development model and it is the leader in the shoe manufacturing segment with a 40% world market share

Reliance Retail Group is likely to be split into 34 separate companies which will be independent profit and losses units. At present, the Group has a centralised pool of resources which caters to all formats.

The plan is part of a big restructuring process and will include consumer durable format Reliance Digital, health and wellness chain Reliance Wellness, the hypermarket Reliance Mart, lifestyle chain Reliance Trends and the footwear chain Reliance Footwear. All these firms will have their own functions (infrastructure for procurement, supply chain, logistics and marketing).

The move could be aimed to check political controversies surrounding the retail business. Also, the opening margins vary significantly in different retail formats and, thanks to independent profits and loss centres, the Group would make a better financial leverage.

Moreover, the formation of 34 new companies will make it easier to enter into joint ventures and partnerships with other firms. “Joint ventures and alliances will be the key growth drivers for the Group in the future years”, said Mr Mukesh Ambani, RIL chairman.