MAY 26, 2002
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China's India Inc.
The low cost of doing business and the vast Chinese domestic market have proved an irresistible lure for Indian companies. From Reliance to Infosys; Aurobindo to Essel; and Satyam to DRL, several Indian companies have set up (or are setting up) operations in China. India Inc. rocks in Red China.


Tete-A-Tete With James Hall
He is Accenture's Managing Partner for Technology Business Solutions, and just back from a weeklong trip to China, where he checked out outsourcing opportunities. In India soon after, James Hall spoke to BT's Vinod Mahanta on global outsourcing trends and how India and China stack up.

More Net Specials
Business Today, May 12, 2002
 
 
Cyber Café For The Blind
Microsoft India helps launch a cyber café for the visually challenged.
Empowering the visually impaired

Look at it from whichever way you want, it's a win-win deal. The visually impaired get a chance to experience the internet, and Microsoft gets to tap an entirely new segment of users. Last fortnight, Microsoft India teamed up with the National Association for the Blind to give Mumbai its first cyber café for the blind.

The software giant wouldn't tell how much it has invested in the internet centre, but there are five computers at the centre with screen reading software morbidly named jaws, which stands for Job Access With Speech. jaws makes every page on the internet ''talk''. All input-output commands are also voice activated. That means the visually impaired can talk the computer through their commands (voice-surfing the Web, if you will).

  Who Killed The Radio Star?  
  The Stork Sells  
  No More Basmati Hijacks  
  What Works?  
  Kellogg's Say Cheez  
  A 70-mm Attraction  
  The Calcutta Syndrome  

The cyber café also offers access to a voice-based word processor, and allows downloading and printing of text in Braille. This isn't the first time that Microsoft is doing something for the blind. Earlier, in February, it also funded a much-needed Braille printing unit in NAB's Bangalore (Karnataka) Branch to help print books at subsidised costs. Redmond may actually have a heart...


RADIO BOO-BOO
Who Killed The Radio Star?
Private FM stations were supposed to change the face of radio in India. So, what went wrong?

It's deja vu time. The government opens up a hitherto regulated sector, private companies rush to obtain licences, often bidding unrealistic amounts, then realise their folly, lobby with the government, obtain some concessions, and hope for more. Telecom? No, this is the story of the Indian fm radio market.

A full two-and-half years after the sector was opened up, only three stations, Bennett, Coleman and Company Ltd's Radio Mirchi, Millennium's Gautam radio, and Star's Music Broadcast are on air, and that too after I&B Minister Sushma Swaraj played Santa Claus and gave them use of All India Radio's infrastructure in Delhi, Kolkata, and Chennai and extended the deadline to go on air to August 29, this year.

Sure, other broadcasters will go on air: Radio Mid-Day and Radio Today (part of the India Today Group that owns BT) may already be on air by the time you read this. ''We are launching in Mumbai by the middle of May. Delhi and Kolkata will happen by August,'' says G. Krishnan, Executive Director, Radio Today. But the industry would like some more sops.

''We are hoping that the government will rationalise licence fees,'' says Preetam Parigi, CEO of Entertainment Network India, the radio arm of BCCL. The industry is also hoping that the next round of auctions, expected towards this end of this year, will draw upon the lessons of the first round. So what's new?


ADVERTISING DELIVERY
The Stork Sells
Suddenly, expecting mothers are advertising's flavour of the season.

The new wave: Selling to Gen-next-to-be

It isn't new. advertisers have, time and again in the past, tried to build campaigns around expecting mothers with varying success. This year, though, the trend has become a wave. The airwaves are replete with ads featuring mothers-to-be for products (and services) ranging from cellular services (BPL), airconditioners (LG), bottled water (Kinley), powdered soft drinks (Rasna), and detergents (Ariel). Says Sagar Ghoting, Creative Consultant, Ogilvy & Mather Advertising: ''(The spurt in such advertising is based on the) perception that the target audience empathises with pregnant women.'' Well, the hope-filled visage of a parent-to-be makes for better viewing than raucous pitches exhorting potential customers to buy and save. Still, in a country of a billion-plus, pics of all those expecting mothers on the tube may send out the wrong message.


P2P
No more Basmati Hijacks
A government research and development agency finally wakes up to the power and potential of patents.

That's #5663484 you see

A patent for processing maize noodles? Vague as it sounds, this actually represents the new-found zeal with which the Central Food Technological Research Institute (CFTRI) in Mysore is filing for patents in India and abroad. The provocation, of course, was the famous row over basmati rice. Four years after Rice Tec, an American company, obtained patent No. 5663484 on basmati, the Indian government woke up and challenged the patent. ''This case opened our eyes, as it was not only basmati, but neem and turmeric that were in danger of getting patented by somebody else,'' says V. Prakash, Director, CFTRI.

Its documentation beefed up, CFTRI is stepping on the patent pedal. So far this year, it has applied for 100 patents, 61 of which are in countries such as the US, Canada, and China. Over the last 50 years, CFTRI had applied for only 224 patents. ''This is only the beginning. We are determined to file more patents in order to sustain and protect our traditional and innovative knowledge on a continuous basis,'' promises Prakash. The one for maize noodles processing, for instance, is targeted against the US, which is the world's largest producer of maize. It's a tough battle, but one worth fighting.


TWIST-AND-SHAKE
What Works?
Warning: Indian business models could be in danger.

When the human genome was unravelled in June 2000, India quickly saw mainline it companies and small biotech startups target bioinformatics tools-computer programmes that sift through the helical chaos. But worldwide, that business model is in distinct danger.

Last month, U.S. bioinformatics-tools provider Double Twist collapsed after burning $76 million in funding. This despite a few good clients and some money in the bank-but not enough. Celera Genomics (one of the companies that unravelled the human genome) and high-flyer Incyte Genomics are both now getting into drug development. Like many bioinformatics startups, they've realised that while there is a $1-billion market for bioinformatics tools, the money is being largely spent by big pharma companies on in-house development. That's not good news for India's struggling startups. Creating a biotech product isn't something you do overnight. It's also sobering to realise that no player outside the US and Europe has yet got FDA approval to make biotech products. So if Indian startups find contracts hard to come by, this might be a good time to start re-evaluating their business models.


CORP-O-REEL
A 70-mm Attraction

Pantaloon, Sony Pictures, and now Tata Infomedia. The corporate dribble into Bollywood promises to turn into a deluge.

Zee's diversification--it produced Gadar--was related; others won't be

There's no business like show business-even for someone like a telecom-to-steel behemoth Tata group, which recently announced its entry into Hindi language film production through Tata Infomedia, the country's biggest commercial printing company. ''We are in the process of going through scripts and in the next three-four months will be able to share details of our first venture,'' says Rahul Shah, Deputy General Manager, Tata Infomedia. The company will invest Rs 8-10 crore, through internal accruals, on producing low-to-medium budget films, and will stay out of the distribution end.

Other new entrants, however, want to straddle the entire gamut of production, distribution, even exhibition. ''We'll invest more than Rs 80 crore over the next five years as part of our integrated approach,'' says Ajay Shanghavi, Executive Director of Mumbai-based Metalight, an associate of Rs 21-crore Inhouse Productions (of Movers & Shakers fame). The company expects to release its first three films by the end of May.

There's tonnes of money to be made in Bollywood. Already the likes of entertainment-only corporates Balaji Telefilms, Mukta Art, and Pritish Nandy Communications that have been producing films for a while are busy leveraging their movie libraries to add to their bottomlines. Mukta Arts recently sold the rights to 11 of its productions (including Hero, Pardes, and Yaadein) to Sony Entertainment Television for Rs 16 crore. Watching from the sidelines is Sony Pictures. ''We have received clearance from the FIPB to enter into film production, but for the moment our focus is on distribution,'' says Vikramjit Roy, Manager, Columbia Tristar Pictures India. Expect plenty of action in front of and behind the camera.


Kellogg's Say Cheez
After cereals and biscuits, it's snack-time for Kellogg's in India. But will it get third-time lucky?

Its chocos biscuits were actually not biscuits, but a brand extension of its eponymous breakfast cereal into the biscuit market. And now Cheez-It, its biggest cheese biscuit brand in the world, soft-launched in Chennai recently, is, yes, not a biscuit, not even a proper snack, but something in-between. ''It will compete with branded potato wafers and other snack items, not biscuits,'' says R.C. Venkatesh, Managing Director, Kellogg's India. Despite the hybrid positioning, Kellogg's is looking at targeting a much wider consumer market with Cheez-It, with a mass-market pricing of Rs 5 for a 15-gram pack, its lowest-priced product in the country so far. The cheapest Kellogg's cereal retails at Rs 28. Cheez-It is another step away for the Indian subsidiary's from its staple cereals business. Already more than a third of its Rs 100-crore sales comes from its three extensions of the Chocos biscuits. When in India...


VIRTUAL ESTATE
The Calcutta Syndrome
The city's blow-hot, blow-cold real estate boom hides more than it tells.

Kolkata: The east comes to the rescue

From the looks of it, Kolkata is riding a real estate boom. Look again: prices have remained stagnant for the past three years, held there by overcapacity. The only bright spot is the area surrounding the Eastern Metropolitan Bypass (EMB) on the eastern fringes of the city. Blame it on price: Rs 45 lakh will fetch a modest 1,500 sq. ft. residence in uptown Alipore; the same amount translates into a duplex 2,500 sq. ft apartment in an upmarket complex (pool and club inclusive) on EMB. Result? Real estate prices in areas surrounding the EMB have risen from around Rs 1,300 per sq. ft to Rs 1,900. It's not quite Gurgaon (Delhi's thriving satellite), but it will have to do.

 

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