www.skpgroup.com June 2007
Your eye to India-centric and International updates
India Inc - Investment briefs

O2 Asia starts talks with GSM providers

O2 Asia Pacific and Middle East (O2 AP & ME), member of Telefonica O2 Europe, is in talks with several GSM service providers in India for bundling handsets to attract corporate customers.

A leading provider of mobile communications services, O2 is keen on tapping the corporate sector for its PDA phones. It plans to have a 50:50 ratio of individual and corporate customers in the next three years. Currently about 15 % of its revenues come from the corporate sector.

Explaining O2’s preference for GSM over CDMA, Myilravanan Nathar, O2(India) country manager said, “As O2 is concentrating on rolling out premium PDA phones where revenue per user collected is more data-driven than voice, it would make sense for us to tie-up with GSM service providers and access their corporate clients for bundled products…… CDMA service providers are concentrating more on voice-based services and rolling out products tailor-made for lower-end customers.”

Currently the PDA market stands at Rs. 540 crore and is growing by 50 %. O2 is targeting a 35 % market share, with a turnover of Rs. 190 crore by the end of this financial year. O2’s appointed distributor BrightPoint works through 32 cities in India with 440 retail outlets. O2 is also planning to set up a 12-hour helpdesk in Mumbai by the end of this month that will take care of consumer queries

The Company also has plans to source applications from telecom solution providers in India.

Whirpool to make India export hub for Kitchenaid

US-based Whirpool Corporation plans to make India the export hub for its small appliances brand, Kitchenaid. To this end it has set up a global design and development centre for the brand in Pondicherry in South East India.

Mr Tamalkanti Saha, vice-president (sales) of Whirlpool of India revealed that Whirpool would market its washing machines under the Kitchenaid brand. The Company also intends to make India an export hub to cater to its markets in eastern/western Europe including Russia, Pakistan, Middle East and Bangladesh.

The US parent Co plans to invest $20 mn (Rs. 90 crore) in its Indian operations in the next 12-18 months to introduce high-end products in the country. On the cards is its built-in range of products suited for currently popular modular kitchens. It has also recently introduced 100% dryers and its Mastermind range of refrigerator.

The Company intends to achieve a 27% market share in the refrigerator category this fiscal, while the target for washing machines is 20% and 10% for air conditioners.

The Company is looking at a 30% growth in exports this fiscal and has posted an export turnover of Rs. 207 crore in the first nine months of 2006-07.

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AT&T Commences Commercial Operations in India

AT&T Global Network Services India (AT&T India), a joint venture between AT&T Inc. and Mahindra Telecommunications Investment Private Ltd., recently launched its commercial business in India.

AT&T became the first foreign telecom operator to secure new telecommunication licenses in India in November 2006, under the Indian government's revised policy on foreign direct investment (FDI), which allows up to 74 % foreign ownership.

V.S. Gopi Gopinath, vice president of AT&T Asia Pacific, commenting on the occasion said, "India is a high-priority market for just about every global MNC, and the increasingly competitive telecom landscape will be a major factor in helping to attract further MNC investment and expansion into India. AT&T is strongly positioned in India to directly meet their telecommunication needs.”

AT&T plans to invest US$ 750 million in 2007 to support its global customers, with consistent services worldwide and help drive their business growth.

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BoB to increase its global presence

Bank of Baroda (BoB) plans to open 10 overseas offices this year, with the first coming up in Trinidad and Tobago in Port of Spain.

The other locations on the banks expansion chart are Ghana, Bahrain and Canada. The bank will also be opening additional offices in Johannesburg, Tanzania and Botswana, London, Kenya and Australia, where they already have a presence. BoB has already acquired the necessary regulatory approvals for these offices.

The bank is exploring possibilities of opening branches in locations like Kuwait, Yemen, New Zealand and Surinam, along with a joint venture in Malaysia with Punjab National Bank and Andhra Bank.

 
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In the News
Indian market in 5th place by '25 predicts McKinsey
India makes it to 'Global Challengers List’ 2007

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Quick Links
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India Inc
- Investment briefs
OVL strikes gas in Iran
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Avesthagen, partner acquire stakes in two seed firms
Autodesk to promote design education through NID
O2 Asia starts talks with GSM providers
Whirpool to make India export hub for Kitchenaid
AT&T Commences Commercial Operations in India
BoB to increase its global presence

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