INDIAN PHARMA: PRESCRIPTION FOR GROWTH

The Indian Pharmaceutical sector is positioning itself to be among the top five centres of global innovation as the Department of Pharmaceuticals (DoP), Government of India outlines its roadmap for the sector up to the year 2020 (Vision 2020). It foresees investments of about $2 billion annually, under the public-private partnership model.

The initiative will open avenues of growth for global pharmaceuticals companies and fuel the next wave of mergers and acquisitions (M&As) in a market where consumer spending on healthcare increased to 7% in 2007 from 4% of the Gross Domestic Product (GDP) in 1995 and is expected to rise to 13% of GDP by 2015. India also offers the benefits of low cost research and development (R&D), a domain in which it is estimated to capture about 10%-20% share of the world’s R&D business by 2020 from less than 1% currently.

Expansion by global pharmaceutical companies in to emerging markets like India becomes imperative as about $103 billion worth of patented drugs will go off patent in the next few years. This will further hit the already sagging fortunes of global pharma companies which are trying to augment their revenues by acquiring or aligning with companies in the generics business. The acquisition of India’s largest drug-maker Ranbaxy Laboratories Ltd by Daiichi Sankyo Company Limited, one of the largest pharmaceuticals companies in Japan last year, is an apt example in this context. (See our Special Report for an overview of the sector.)

TECH MAHINDRA BECOMES NO 4 IN IT COS' LIST

Maimed and left gasping for a lifeline, Satyam Computer Services has finally found its new knight in shining armour, Tech Mahindra (TechMa).

The bidding process for the beleaguered software firm culminated on Monday with TechMa emerging as the highest bidder with an offer price of Rs 58 per share. TechMa's price outbid other suitors, engineering giant Larsen & Toubro and private equity player Wilbur Ross, by a comfortable margin. L&T's bid of Rs 45.90 per share and Wilbur Ross' Rs 20, were not even within striking distance of TechMa's deal-winning bid.

The Economic Times

OUTLOOK 2009

India is among the top 10 countries with an optimistic economic outlook for year 2009, according to a year end poll conducted by a global market information company TNS Gallup International. Two out of five people expected the coming year to be better than 2008.

The optimistic outlook mirrors the expected growth in the various sectors including India’s Information Technology sector, which is on track to achieve its aspired target of $60 billion in software and services exports and $75 billion in overall software and services revenues by 2010. Consumer finance sector at $45 billion in India that grew by 28% last year is expected to maintain its growth with the revival of the housing loans segment owing to the government's initiative of extending lower interest rates. The healthcare sector is expected to grow to about $75 billion by 2012 from the present $35 billion market size. The sector growing at 42% annually, accounts for 5.2% of the GDP, making it the third largest growth industry in India.

The $34 billion Indian automotive sector is expected to continue to grow at more than 15% as oil prices dip and companies announce the launch of new vehicles. The world's fastest-growing mobile phone market that adds more than 9 million new customers each month is driving the $31 billion telecom industry to be worth $54 billion in 2012. See ‘Special Report’ on the Indian Telecommunication sector.

Domestic growth is expected to attract and benefit from foreign direct investment (FDI) of $40 billion in the next financial year, which is twice the amount received during the first half of the current financial year.

Such growth forecasts, however, are accompanied by challenges that might just derail the country from its growth trajectory. These include internal pressure groups as in the case of the Indo-U.S. nuclear agreement that witnessed intense opposition by the Left Parties within India’s ruling coalition government called the United Progressive Alliance (UPA). Similarly, the delay in the small car project of Tata Motors’ ‘Nano’ due to widespread unrest from a regional political party led to the project being scrapped from its original site in Singur, in the east Indian state of West Bengal compounds existing impediments of slow infrastructure development, widespread illiteracy, poverty and corruption - impediments India must overcome if it wants to sustain and accelerate its economic growth.

Sensex up on tech stocks rally

The markets pared early losses as technology stocks rallied smartly on the back of Infosys results. The BSE sensex dropped by almost 235 points early in the session, however the 30 share index gained strength after Infosys announced its earnings for the financial year and gave a guidance that enthused investors. The sensex closed 346 points higher at 16,154, its highest closing in two weeks. The gains were across the board with the BSEs Midcap Index and Smallcap Index rising by over 1% each.

The Times of India
http://timesofindia.indiatimes.com/Business/India_Business/
Sensex_up_on_tech_stocks_rally/articleshow/2954633.cms

Chief ministers urge Indian diaspora to invest in home state

Trade and investment opportunities in a resurgent India were the highlights of Day two of the 6th Pravasi Bharatiya Divas, which saw five chief ministers share their state’s unique strengths and future strategies as they tapped investment, vying for the attention of overseas Indian investors. Pranab Mukherjee, external affairs minister asked states and the NRI forum to come together in education, healthcare, energy sustainability, research and development as these sectors will “mar or make our future development.”

MINT
http://www.livemint.com/2008/01/09163456/
Chief-ministers-urge-Indian-di.html