Archive: May 2009
The high-profile IT outsourcing industry is looking up, with improving financials and a better world economy. However, it is unlikely the sector will match its former success until at least 2010, according to analysts.
IT enterprises are working out new business strategies for after the economic downturn, so they are proceeding cautiously, especially with longer-term contracts.
Industry associations like the Federation of Indian Chambers of Commerce and Industry (FICCI), ASSOCHAM and CII are optimistic about an economic restoration during Manmohan Singh’s second term as prime minister.
India Inc. is hoping for continued reforms in sectors like finance, agriculture and civil aviation. Industry groups also want the government to help stimulate manufacturing and create jobs across
rural and urban sectors.
The need for emerging micro, small and medium enterprises (SMEs) to learn how to improve on logistic networks would add to their competitiveness said Ajay Chopra, CEO, Drive (India) Enterprise Solutions Ltd, a Tata Enterprise. Costs are coming down as new networks are coming up, reversing earlier trends.
Chopra spoke at the 1st Interactive Seminar on Logistics Parks; World Class Logistics Parks for India, organized by the CII Institute of Logistics, a center of excellence established by the CII in New Delhi. Indian logistics sector has improved but needs to do better to reach the best logistics standards at the global level.
The Confederation of Indian Industries (CII) international conference cum exposition on May 21 and 22 highlighted India-specific business solutions for cost reduction, meeting demand and review processes.
A major theme at the conference, called Control and Automation Technologies: The Bedrock of Competitiveness , was the importance of automation and innovation for MSMEs and other businesses. Topics covered at the conference included using automation in green initiatives to achieve higher levels of production and focusing on indigenous technology rather than blindly adopting foreign models.
Indian companies are gearing up for new accounting standards for preparation of financial statements, and are confident they will meet the 2011 deadline, says a Ernst &Young’s 2009 International Financial Reporting Standards (IFRS) Readiness Survey.
The IFRS accounting standards from London-based International Accounting Standards Board (IASB) sets a global benchmark for the preparation of public company financial statements.
The Indian service sector can look forward to a bright year, despite the fact that its business prospects are lowest among the BRIC block (Brazil, Russia, India and China), according to a survey by the global auditing agency KPMG. The outcome of the general elections and the monsoons will have considerable influence on the growth of the service sector.
Global recession, reduced exports and now underpriced imports flooding the domestic market is the latest problem area for SMEs, according to a survey by the PHD Chamber. Dumping of cheap products has hurt Indian industries, especially sanitary ware, ceramic tiles, chemicals, pharmaceuticals, steel and others. China and other countries also see India as a huge market to unload low-priced items. SMEs are working with the government in anti-dumping investigations to protect the interests of Indian businesses.
Car companies are using the Internet and mobile phones to woo professionals and tech-savvy consumers. After successful efforts with rural customers, companies see digital marketing as a tool to build strong brand identity.
Carmaker Maruti Suzuki India sold 4,000 of its small A-Star car based on interfacing with customers over the Internet, and the company is aggressively using digital platforms to market the new Ritz by offering special deals on a microsite. Tata Nano said its web site received 30 million hits, and the Honda City car regained its top spot with a strong digital interface campaign. Volkswagen is targeting its high-end customer base to sell the Jetta and Passat premium sedans.
Encouraged by the recently released results of the general election 2009, the Indian SME sector is hoping the new government will address their concerns. The Federation of Indian Chambers of Commerce and Industry (FICCI) has recommended a number of changes, including a subvention of interest rates of 4 to 5 percent, a formal clusterisation of SMEs and making more credit available to businesses. The sector also wants the government to create more favorable service tax rules, especially for the export industry.
The new fiscal year began with the global economic slowdown continuing to hurt businesses. Indian exports were down 33 percent from a year earlier, according to the trade secretary. Merchandise exports for the fiscal year ending March 31 totaled $168.7 billion, inching up 3.4 percent from last year, but lower than government expectations. Traditional SME (small and medium enterprises) sectors such as textiles, handicrafts, leather and gems and jewelry were hit the hardest.
Official trade data for April will be released on June 1. The downward trend of the past seven months is likely to continue until about August, when exports are expected to pick up again.
SMEs are small businesses, in their early stage of growth. They exercise little or less control over markets. They, during initial years, have to struggle with cash flow management leading to squeezed reserves and labor shortages which implies high wage costs. A rise in inflation...
The auto component Manufacturers’ Association of India (ACMA) revealed that the domestic auto component industry has pegged 20% growth in the year 2009-10. Its turnover remained US$ 22 billion. The reason for such growth has been the expansion activities undertaken by SMEs ...
