Retail Lifestyle | The Investment Blog from Advantage 'zyaada'

Mar 10, 2010 0

India’s Bottom of the Pyramid | Advantage Brands

The Life Insurance sector in India which has grown to Rs 12 Trillion in Asets ( 12 lakh Crores) or $300 billion with LIC alone and with atleast 35% of the new business share during lean times and 65% share during growth years the Pvt sector also has an asset book of Rs One lakh crore or $ 25 billion. FDI reforms for the sector are a sure thing butt he sector has been lagging behind in social innovation to cater to its commitments of 40% business in urban poor and rural masses.

The one response to that from the industry has been that of Max New York Life. I intend to show you the brilliant product design of this new great product Max Vijay which has all the 5 Ps of Marketing going for it rather than just branding like Kotak Life’s “Chhotu kya banega” r WOM like Birla Sun Life.

The product Vijay is a Whole Life Insurance Product and thus more affordable as insuranec cover without losing the savings..Also the new cproduct is warehousable, in that it is sold in units of Rs 1000, that are sold at cost to the company on Day ) and goes through distributors, retailers and end agents that use POS terminals to record user details on a simple form. Anyone can pay the Rs 10 ( or maybe 20) required for a Rs 1000 insurance cover, and the company has already sold it from HQ for the 770 value that accrues to the T Ledgers fro the day 1 of sale.. The mortality and the social group demographics have been factored in by actuarrial analysis while the insurer / proposer can buy it ‘off the shelf’ at his convenience..From my knowledge, for every 10000, the company records 775, while the whole sale distrivutor records the same at 850 or 900 to his retail agents who can be MFI or local Soap/Tobacco/grocery shop owners than can make the sale of each Rs 1000 unit for recorded value f 970. Thus the commission structure is also much mre equitable and at the same tie fairly values the insurance contract. The use of POS terminals means that whenever the final sale is made unit value is updated at the CPU and thence any updates regarding renewal premiums and modifications can be made.

The other products in the sector are basically leaning towards risky capital market based investment pools in Variable Universal Life plans or simply quasi MF investments in Units that can be tracked by their NAV. The riskiest class Equity Funds are allowed 50-60% in Equities. these products then use the family-man appeal to sell by using branding and advertising campaigns around the children / or targeting women. such an example would be Kotak’s “Chhotu kya banega”

A quick comparison above shows you the extent to which Vijay can really serve the rural mass market needs with the operationally complex product that hung IRDA approvals for over a year. As it is sold directly by the company, mis-education may however cause its neglect by the Agent Advisor force and any corporate / bancassurance partners that focus on the wealth segment.

The final approved product from Max has three distinct flavours, Silver Gold and Diamond, much in use in Sales incentive compensation with largest retail distribution companies like ITC, HUL and thus easily understood.

Posted via web from The Marketing Post

After AOL Warner, the new megalith?

Can conventional media survive yet?

General Electric And Vivendi Come To Tentative Agreement On NBC's Value

The proposed $30-billion transaction is the fruition of a longtime ambition by Comcast’s 50-year-old chief executive, Brian Roberts, to recast his family-controlled Philadelphia company into a leading producer of movies and television shows and a purveyor of prominent cable and broadcast networks, including the venerable NBC.

Under terms of the deal, Comcast will contribute its entertainment channels, including E and Versus; nine regional sports networks; and about $6.5 billion in cash in exchange for 51% of the new venture, which will continue to be called NBC Universal for the immediate future.

The deal underscores how cable television — not a broadcast network or a Hollywood movie studio — has become the new profit center for media conglomerates.

GE, which has owned the NBC network for 23 years, will reduce its ownership in the company to 49%. The deal sets up GE for a gradual exit from the entertainment business, granting Comcast the right to buy out GE’s interest within eight years. GE placed a value of $30 billion on its NBC Universal businesses.

via Comcast deals to get GE out of NBC

The October MF report | Advantage zyaada

The Data is courtesy http://amfiindia.com (AMFI)

October turned out to be buoyant for the entire economy with retail and auto sectors reporting a 30% + uptick in sales and mutual funds also adding a neat INR 20000 Crores or $4.33 billion.

However individual fortunes were mixed as some fund houses managed to lose in Assets under management in the cracker season. UTI MF grew further by INR 3260 Crores or $720 million, and even Tata MF growing by INR 2500 Crores or $550 million. A small player like Kotak grew its corpus by INR 1350 Crores or $ 300 million. It is definitely a market whose time has come.

However Religare lost over 350 crores in AUM in the festive celebrations as it also withdrew from its AIG The newer giant Reliance at INR 116782 Crores also reported a reduction of INR 2000 crores and the growth is favoring the progressive biggies with a good corporate governance score. ICICI Prudential kept losing custom with markets withdrawing their favor after the recent turmoil in its ranks losing a miniscule but significant INR 400 crores, while its larger rival HDFC MF has taken its market share up to 12.23% growing to INR 93.300 Crores

The only other significant player in the Birla Sun Life MF grew rapidly by INR 2000 crores with the AUM of INR 65.500 crores reflecting a market share of 8.5% Ajay as head of the Financial Services business for the group has recently appeared in a a few network interviews to beef up these gains and reiterate BSL’s plan and vision in the upcoming wealth explosion in India. Fidelity MF remained between ICICI and HDFC in the rankings with INR 87000 crores or $19 billion without reporting any close ended schemes in October

UTI MF grew best in its Income funds with INR 5000 Crores adding in its Treasury Advantage plan and HDFC has grown its best performing Prudence ( Balanced ) and Top 200 ( Equity , medium risk ) schemes among others

What China might learn from India | Advantage zyaada

A First rough draft

I hate writing influencing stuff for these ‘namakool’ government people..a true laissez faire capitalist as bollywood would say today – but much as I like to disappoint wooden leg intelligentia (sorry Saugata, not you) and unfortunate colleagues who cannot see the depth and incisiveness of my decisions ( only some times, as most of my followers and poachers would attest from the last 15-20 years, i have quite some intellectual property when it comes to establishing the kingdom’s fine traits and setting up the next wins.

Well, this introduction is probably embedded into my names and branding choices as also in the discussions I have created across all Advantage zyaada properties, and while everyone has decided that the worst is past and we have recovered, the stock markets have finally got the cue,albeit from continuing discussions of interest rate when none are necessary unless a bank offers a loan.

China and India share a $2.5 trillion retail spending of a gross GDP of $3.5 trillion (Economic Times, It’s cold out in the west ). While single brand FDI was raised earlier to 51% whatever was allowed in multi-brand retail has now been withdrawn due to recent changes in FDI definition and no move to allow multi-product retail. Our reticence to allow Indian business property in retail spending to Foreign investors stems from the fact that we wish to be paid for allowing such to happen like for the Telecom Licences and paid so we don’t have that damned Fiscal Deficit overhang but that is just a digression here and it is definitely not ideology we are peddling.

Also, despite the caution adopted by RBI in not moving the GDP target ( 6% w/ upward bias ) I am reasonably confident that the growth rate would be between 7.5% – 8% with the IIP having recovered and there being only some agrarian doubts in the nation’s performance which would well be taken care of by the food inflation incl. grain procurement prices. In the mean time, China allowed banks to fund the corporates $1 trillion indiscriminately and now will provision at leisure; India mid-way through its own $120 billion borrowing program

Making fiscal policy – Dividing work with the RBI ( MOF, Economic Advisory Committee)

Some of my better endowed readers who are also leader of men would appreciate that it is always tough to appreciate the RBI or the FED if you are in the US and ‘get’ the inner depths of what is happening, what is doable, what is to be said and what is to be communicated to which stakeholders all at the same time..that is why probably Duvoori Rao had no qualms in handing over the tough job to the ‘center’ or in this case the Economic Advisory Committee and Mr Rangarajan.

Making Policy Count – Avoid being Abrasive

Let’s not forget that the RBI is doing a good job yet. With the Aussies having raised interest rates, it might have tempted lesser mortals to go in for rate increases right away, but we have just decided to raise the eponymous SLR a full basis point as banks continue to sidestep economics and lenders in each breath. The most laudable and really India thought centric piece of the policy was the important 150% ramp up in the provisioning of real estate loans to 1% of LTV carried on the books. It is a good reminder to banks that the costs of idle money will go up on both the treasuries and cash they keep ( a huge 35% in most banks, more for Citi) when the statutory rates even now are just 30%. In fact costs will also go up on the RE portfolio they are so eager to cultivate by a good 70-80 basis points, after all the entire provisioning concept for banks is based on being able to sell their collateral in case of default

Following up

However, next quarter we are suddenly going to get a flurry of results which proclaim greater volumes, no one will talk of pricing constraints, FDI will flow smoothly and I might just get time to read Ranga’s economics to take this slow elephant further. And that is how sand castles are blown away and not made into glass, nor kept for posterity. A mixed metaphor, maybe? But it is clearer now that the RBI is just battling select ‘investor guarantee’ holding bank companies that have never advanced adequate resources ( neither people, nor journalists, nor the money) to India as they reinvent the new way to leverage their own and their host nations ( i almost sound socialist there, but i am laying out the real hidden map where I share economic prowess in predicting the next turn and getting done with the rest of influenza to focus on earning real moolah in a real job / business)

But the credit policy for the Indian markets..

Coming back to the policy, it is a non starter, because it is a tired ramification of pending business like flowing credit and reforms undone by a crisis. The banks are prudent enough to lend only to profit making businesses and the governments are out of money to print at the mint, The government will continue to be the biggest borrowing program, the agrarians will suffer as rabi prices rise and production drops off, the corporates will bide time as India’s holiday season is past though the stats are still due, and the RBI is not handling the fun, neither the EAC by admitting to any innovation. In my eyes, that will slow up this pack of hounds till ( probably just next week, probably just good news) some great FDI and energy releasing decisions come through.

The next RBI ride will last the six months it can raise rates, but finally we have to start signing some good deals and get business done. Simple innovations like co-opting banks in the policy making and making obvious your support of public sector banks with larger balance sheets have to be reflecive of the new media and the new pace of competition where everyone is now ready to drive home their point to their investors and their stakeholders.

Is NFL the most twitterised brand?

A lot of NFL gets on Twitter too. Apart from the fact that NFL Network has exclusive high quality coverage online with 100% video support and lots of fantasy games for the fans, most NFL players incl Chris Johnson are alive and ’speakalot’ on Twitter. Featured here is how one of the better known teams of the NFL, the New England Patriots have made a distinctive interactive app for Facebook..going into grapping the attention and mindshare of a 100 million odd users..it’s great to see something as entrenched as the NFL going out to bat with the invisible continent and get more touchdowns,! Fire away. (mixed metaphors!, maybe just the Dallas Cowboys losing their hold on the game after not making the playoffs)

New England Patriots Choose Facebook as Primary Social Media Hub

You know how bands often tend to put more importance on their MySpace page than on their dot com website? Well, the New England Patriots are now doing something similar on Facebook.

They’ve partnered with Buddy Media to create a new section of their Facebook page, dubbed the “Fan Zone“, where fans can check out a calendar of Patriots-related events, play a Fantasy Forecast game, test their Patriots knowledge in the Patriots Trivia Challenge, send virtual Patriots gifts to their friends and more.

What’s interesting about this new initiative is the fact that none of this is available on the official Patriots website. True, some parts of the Facebook Fan Zone still link to that website, but for the most part, fans would do better to visit the Facebook page than the official, dot com page.

As the importance of social media increases, I reckon that more and more big brands will put emphasis on their presence on social media platforms such as Facebook and Twitter instead on their official websites. Patriots’ Director of Interactive Media Fred Kirsch explains the move: “We really weren’t anywhere [before] as it relates to social media. We had to get into the game, and to have that kind of audience we have on Facebook, you can’t get that kind of immediate impact on [Patriots.com].”

For more on this topic, check out this article: Is Social Media Making Corporate Websites Irrelevant?

Tags: facebook, New England Patriots, social media

via New England Patriots Choose Facebook as Primary Social Media Hub.

via Is NFL the most twitterised brand?

ING gets to make a profit, Buyer Beware?

The Discussion on Citi, BofA results, GS bonuses and JPM’s growth is scheduled on the same Diwali weekend as well..

The ING Sale: Will OCBC grow into a larger Pan Asian role?

ING has sold the Asian private banking business to OCBC, which was having difficulty in growing in Asia but has made rapid strides in expanding in KL and can now focus again on Singapore. The $1.46 billion price ( Sing $ 2 billion) for assets that are not growing is based on the assumed scalability of the asset base of $15-16 billion. The unit was costed for $1 billion for the bank in its balance sheet. The N11 will thus provide a second chance to OCBC to grow.

OCBC has a healthy 60-40 split of interest and non interest income from its current assets ( economic assets or people assets in the case of fee based income) and as expected Q2 income went down with decrease in advisory and other fee based income to S$ 466mn or USD 335 million ( EUR 221 m). Also, interestingly OCBC currently has one of the most healthy cost-income ratios of 34% which can equip it with the necessary depth in absorbing any new costs and continue during the lean times where larger competition from US/Europe/India apart from JPM and GS is unlikely to withstand the current cost of business.

However its Private Banking acquisition may well add to its woes in the region as it has failed to grow beyond Malaysia and Singapore and PB assets may be offshore banking assets domiciled in these other ASEAN countries and even India. OCBC currently earns only 20% of its bank profits or $77 million from Consumer Financial Services where it has been hiding its Private Banking assets presumably. Even in that, as much as $ 10 million is from Islamic Banking in Malaysia (Bank Negara) The transaction adds just about $20 million to OCBC profits and margins may reduce further. However, it looks as if these assets would be lazy and no flight of assets to other competition in the region will ensue whether SocGen or Deutsche Bank

At this stage let me also reiterate that it is important to know that the final price is closer to the author’s estimation for this deal as well as the UBS captive sale, the Satyam sale , the AIG Investments sale, except for the Nan Shan Insurance unit for Life Insurance, Valuation premium is no longer for the selling brand ( Citi BPO assets for over $505 million just a year back) but for real business and real value delivered to the acquirer..The bear phase as always is a euphemism for the opportunity to deliver justice to buyers of economic value over noise)

Fortunately, Julius Baer is happy with its progress in Swiss assets from the acquisition as the Swiss pie is a little more localised and protected by Swiss banking law and does not expose the niche bank to new ( see ING sells Private Banking assets) Julius Baer has paid a half a billion dollars for the Swiss Assets

Indian Market Tweets from Friday | zyaada

From Marketwatch.com Dow up more than 50 points as U.S. stocks open Frida.. http://bit.ly/C53J4 :ask us to analyse
24 minutes ago from twitterfeed

Valuations too high http://post.ly/5WrL
about 1 hour ago from Posterous

Indian PE deals, lousy skype fights ..just bad weather everywhere Valuations! Valuations! | The investment blog http://bit.ly/Tq2Ip
about 1 hour ago from Splitweet

And to end the day of tweets, from the Sun Tsu of War ( from Gekko) when your enemy is stronger than you, don’t be afraid..to run away
about 6 hours ago from HootSuite

Hollywood: Wall Street 2 started filming this September, Can Will Smith be far behind
about 6 hours ago from HootSuite

China farming Energy in the Mongolian desert. What took so much time!
about 6 hours ago from HootSuite

RIL losing a $100 million a month sales in KG basin, D6 but never produced more than 30 million cu m per day !!
about 6 hours ago from HootSuite

Bollywood: KKK2 star to ride sea bobs & skimpily clad Lara Dutta in ‘Blue’ Arindam Chaudhri’s Last Lear
Mr Bachchan to keep anchor at Colors
about 6 hours ago from HootSuite

Mutual Fund investments in August fell 74% to add less than $700 million with banks staying away http://advantages.us/a/amit…
about 6 hours ago from HootSuite

BSNL, MTNL not to buy stake in Kuwaiti Telecom company Zain for an estimated $14 billion ( Rs 70000 Crores), twice their annual turnover
about 6 hours ago from HootSuite

US has 22.5 GW of installed capacity, India 14 GW (663 bn units in Jan 2008) Germany also upgrading lot of Power
about 6 hours ago from HootSuite

IDFC buying BP wind power in India for $135 m, UBS selling for $100m ( 1.35 times sales) and WNS likely sold to Intelenet for half the price
about 6 hours ago from HootSuite

Do oversubscriptions matter? OIL ipo 30 times , not going to list at premium either..what’s the hurry to invest?
about 6 hours ago from HootSuite

India’s NSE to introduce strategies trading in Futures and Options, combined with IRD, Commodities and Forex a lot of new stuff, thin volume
about 6 hours ago from HootSuite

Pipavav at Rs 55-60 gets $115 m for working capital and odds and ends, one Dry Dock, 50% orders to be renegotiated down! Don’t bother
about 6 hours ago from HootSuite

Angel Broking (Picks outperforming 2009-10) says India’s chocolate market alone would be $500 million ( Livemint Sept 11)http://ow.ly/pW8S
about 7 hours ago from HootSuite

India key to Kraft bid ($KFT, $CBY) http://bit.ly/mKg0r Emerging markets make 40% of $CBY sales
about 7 hours ago from HootSuite

SBI cnsolidating its other subsidiaries into the bank to focus on size, may start in London with a small acquisition
about 7 hours ago from HootSuite

ICICI Bank heralds the market down turn every time in the last 6 months hyper growth.. Will SBI take off where ICICI left _TYY4
about 7 hours ago from HootSuite

Indian companies raised only $4.73 billion from ECBs, down 28% despite relaxation of upto $100m without approvals
about 7 hours ago from HootSuite
Rural Distrbn: Current FDI limits / Foreign Investment limits of 20% / 49% in DTH may go up to allow foreign media investors to catch upabout 7 hours ago from HootSuite
Unitech Telenor has revised capital participation terms putting responsibility on Telenor to fund all expansion, ready with 8500 towers..about 7 hours ago from HootSuite
New Islamic Bank Al Baraka to take off in Kerala based on Shariat principle of Bai al salam, distribution of profit and est of a social fundabout 7 hours ago from HootSuite
China’s bear trend unlikely to be braked but may recover based on Emerging markets strength $EEM, $CICabout 7 hours ago from HootSuite
More banks to join India Post in sales of the new pension funds (NPS) All pension money since 2004 has been routed to NPS for Govt employeesabout 7 hours ago from HootSuite
Lot of investor cash is aching to come back into the markets, accelerating the rise in Emerging Markets $EEMabout 7 hours ago from HootSuite
Reliance raising Cash in Rupees from a treasury sale, may make international expansion in energy fields more likely _TYY4about 7 hours ago from HootSuite
Gold also crosses Rs 16000 in India ( per 10 gm) with $GLD ruing above 101 and $FXE inching to 1.50about 7 hours ago from HootSuite
With Mutual Fund and Insurance loads and agency charges also banushed, the next 3 years should see a super normal rise in these productsabout 7 hours ago from HootSuite
Rupee may rise to 46 by year end, continue rise till Q3 2010about 7 hours ago from HootSuite
Similarily Global Forex reserves are up $441 billion (up 6.5%) to $7 trillion, buoyed by rise in Korean Won, Brazilian Real & India Rupeeabout 7 hours ago from HootSuite
Similarily Global Forex reserves are up $441 billion (up 6.5%) to $7 trillion, bouyed by rise in Korean Won, Brazilian Real & India Rupeeabout 7 hours ago from HootSuite
Foreign holdings of Indian bonds climbed 28 percent since March 31 to $6.4 billion, stock exchange data show http://ow.ly/pW1nabout 7 hours ago from HootSuite
I have 3,571 tweets that show that Twitter isn’t for lunch anymorehttp://retwt.me/2S6f (via @Scobleizer) by @tweetmemeabout 8 hours ago from HootSuite
Karnataka Prem League: #KPL Provident dent Belagavi Panthers hopes, Brigadiers second to B’lore Rural! games are worth watching not vettori!about 9 hours ago from HootSuite
Can Atlanta make it 16-0 this season? #NFL #Falconsabout 9 hours ago from HootSuite
#irreverentfridays Irene Rosenfeld looking for fly-by strategy support http://ow.ly/pVveabout 9 hours ago from HootSuite
By @EconomyFacts How To Stimulate Consumer Spending And Jumpstart The Economy http://cli.gs/j8esBabout 9 hours ago from HootSuite
Signs of markets having peaked as emerging markets and midcaps continue to outperform, why not 20k next week itself?about 9 hours ago from HootSuite
Citi sells Government stake of 34% « Obamanomicshttp://bit.ly/ORZ0Oabout 9 hours ago from HootSuite

The world needs candy

We’ve all heard of the original RJR Nabisco KKR nexus, but it is still useful to remind people like us about runaway greed and when premiums on price become untenable. However in the fresh bid for Kraft from Cadbury’s, the opinion that the bid premium should only be dependent on cost savings is a little behind the times. We all know Kraft and Irene Rosenfeld wouldn’t want to pay extra, but the Nabisco acquirer has one addl piece of knowledge, which they are going to find to be costly in the negotiated / hostile bid for Carr’s Cadbury empire. Of the $2.7 billion sales in HY2009 (details here) over 40% is from growth markets and there sales growth would be easily in excess of 30%, with double digit margins, that have kept CBY’s 2008 net margins at 13% Thus the premium from the cost savings would just be GBP 736 million ($1.2 billion) , while the sales premium would be the additional 12% annual sales ( even if you assume the same for only 3-4 years, it amounts to another $2.4 billion from my estimates and so the price premium can easily cross 700 pence taking the price to well above 1260 pence.

This is of course rough estimates, but it is definitely worth someone like KKR to come in and keep the right management on top.

The Cadbury Balance sheet is entirely made of cash retained earnings making 99% of the Equity of $3 billion and it’s sales of $5.5 billion each year. There is no operating interest cost in its income statements.

The Chocolate Nut fudge for Labor day

The US Coffee Chocolate Giant Kraft bid for the global leader Cadbury’s over the weekend with a $16.7 billion bid over the Labor Day weekend

Bournville, where Cadbury’s originated and Cadbury’s rejected the bid which sent traders hankering for chocolate and made the stock rise 40% in anticipation. This is the first Billion dollar deal tabled in 2009 with Toblerone maker Kraft bidding for Cadbury’s across the pond. Hershey’s and Nestle can’t be white knights because of Anti trust regulations while others seem small fry. Kraft offers only 300p ($4 and 80c) in cash and 0.26 shares of Kraft per Cadbury share, leaving the UK based giant short changed.

It also recommends that the integration of distribution etc will save the combined company a further $1 billion. However, i would seem intelligent on Cadbury’s behalf to ignore the deal and walk away if they can as synergies from the deal look unwieldy, and such easy peasy pipe dreams’ to get market share in Europe and Asia overnight have not fructified earlier, niether has someone like Deutsche Bank been able to make a dent in the US

Factors like Outsourcing and Geographical sensitivities anathema to Cultural and Social integration at large need a new integrative mechanism that may make such Global M&A still infeasible. In this case one however simply feels that Cadbury’s seems to have the more successful Corporate culture and organization and if there can be other private investors to back Cadbury’s and Nestle in the domain, the likes of Kraft and Hershey’s will be faster to learn subsidiary to these far superior expressions of Organization.

Analysts of course, are also hoping for a possible joint bid by Nestlé and Hershey, allowing Nestlé to take Cadbury’s gum business to compete with Mars with Hershey taking over the chocolate operation. (NYTimes.com) Even that wouldn’t be the best as we have seen in the aftermath of the BCS, RBS, ABN saga, but AOL has split its business lines recently and that may be fair. Also, Nestle at least would well leave acquiree ops alone to be without posting unnecessary hurdles in terms of rush hour integration

Will anything save this disaster for Cadbury? Can KKR Europe please step forward?

India's Top 10 cities

If you have been reading for the Nielsen report for the Country’s
top urban centers, this one’s even one ste ahead in mapping the affluent
consumer centers in the coming decade. take a look. it’s mostly
bangalore, ahmedabad and some surprises:

India’s 10 Fastest Growing Cities
M. Tharini
Thursday, 29 January 2009 00:00
A lot has been commented about India’s vigorous economic growth with economists forecasting a bright future for the country. But some know of the growing Indian cities that are feeding to the nation’s growth. So =
which are the country’s fastest growing cities? Read on to find out.

SURAT – Growth rate 11.5% – Surat is Gujarat=92s 2nd biggest =
city with a population of 4 million. It is the fastest growing Indian =
city in terms of economic prosperity. The city has met an annualized GDP =
growth rate of 11.5 % over the past 7 fiscal years, as per the data =
computed by economic research firm Indicus Analytics. Popular for its =
thriving diamond and textile industry, Surat is located on the banks of =
the Tapti River. Over 90 % of world=92s diamonds are cut and shined =
here. These 2 industries have hugely shared to the city=92s growth as =
the economic powerhouse of India. Though always affected by floods and =
earthquakes, the city has often come out on top. Enhanced infrastructure =
has been significant to Surat=92s quick rise. A number of elevated roads =
and flyovers have contributed the thriving diamond and textile business =
of the city. The city=92s Varachcha flyover is claimed to be India=92s =
longest. Surat with its low unemployment rates, high job rates and one =
of the highest per capita small business Credit is the best land for =
jobs and business. It is told that if you wish to make money, Surat is =
the place to be in.

BANGALORE – Growth rate 10.3% – What was =
knows as the Pensioners=92 Paradise 10 years back, has emerged 10-fold =
now and a study states that the rupee millionaire club in Karnataka=92s =
capital is the most crowded in India. Bangalore also boasts of owing the =
largest number of households with an annual income of Rs 10 lakhs (Rs 1 =
million) or more. With an estimated population of 6.5 million, Bangalore =
is 1 of India=92s most populous cities. How has this city which was more =
popular for its gardens and laidback lifestyle modified so much in =
character? The 2 reasons that come to every Bangalorean=92s mind are: =
the start of the IT industry, and subsequently the boom in real estate =
prices. Unlike other cities in India, Bangalore=92s main activity is =
information technology and information technology-enabled services. =
Being the prominent contributor to India=92s IT industry, the city is =
always referred to as the Silicon Valley of India. Software majors =
Infosys and Wipro being headquartered in the city, Bangalore contributed =
33 % of India=92s Rs 144,214 crore ($ 32 billion) IT exports in 2006-07. =
Businesses comprising large corporate tehat are either multinational =
companies or Indian firms dealing with or serving to MNCs recruit a very =
large workforce in Bangalore. And although the city=92s infrastructure =
has been unable to stay pace with the fast growth of the city, Bangalore =
still remains one of India=92s boom =
towns.

AHMEDABAD – Growth rate 10.1% The – Ahmedabad =
region, comprising Gandhinagar, of Gujarat is the biggest inland =
industrial centre in western India and has been a significant base of =
commerce, trade and industry. With a population of 56 lakh (5.6 million) =
Ahmedabad has kept great prosperity because of its proximity to Surat =
and its access to the hinterland of Gujarat. Though dusty roads and =
bungalows used to cover the city once, Ahmedabad is now evident a major =
construction boom and a rise in population. In recent years, the city =
has seen an important rise in information technology and scientific =
industries. Apart from these, chemicals and pharmaceutical industries =
share to the state=92s economic growth, with 2 of the biggest =
pharmaceutical companies of India =97 Zydus Cadila and Torrent =
Pharmaceuticals being based here. Ahmedabad also forms the corporate =
headquarter of the Nirma group of industries and Adani group. Of late, =
several foreign companies have plan up their units here. Among them, =
Bosch Rexroth of Germany, Stork and Rollepaal of Netherlands deserve =
valuable mention.

MUMBAI – Growth rate: 8.5% – The commercial =
capital of India is one of the world=92s top 10 trade centers. The city =
aids 25 % of industrial output and 70 % of capital transactions to =
India=92s economy. The city response for about 1 % of the total =
population in India but has a per capita income which is almost 3 times =
that of India. Mumbai accounts for 14 % of India=92s income tax =
collections and 37 % of the corporate tax collections in the country. =
The city is the berth of important financial institutions like the =
Reserve Bank of India, Bombay Stock Exchange and the National Stock =
Exchange of India. One of the biggest special economic zones in India is =
being set up in Navi Mumbai, to be sprawl over an area of around 50 =
square kilometers. Many corporate and multinational companies have their =
headquarters in the city that earns migrants from all around India. The =
city provides countless employment opportunities and is famous for its =
interesting and high standard of living. The city, with a population of =
19 million, is also called as the Indian seat of entertainment as it is =
the home to the Hindi film industry, the biggest in the world. Most of =
the city=92s inhabitants depend on public transport to commute. =
Transport systems in Mumbai comprise the Mumbai suburban railway, also =
known as the lifeline of Mumbai, BEST buses, taxis and auto =
rickshaws.

NEW DELHI – Growth rate: 8.4% – Though it =
can=92t match Mumbai in terms of contribution to the growth of the =
Indian economy, the capital of India, is no pushover. Delhi=92s, =
(comprising its 9 districts and adjoining Noida, Ghaziabad, Faridabad =
and Gurgaon) total GDP stood at Rs 1,60,739 crore (Rs 1,607.39 billion). =
It shares 4.94 % to all-India GDP. Connaught Place, one of northern =
India=92s biggest financial centres, is situated in the heart of Delhi. =
Being a vital commercial centre in South Asia, Delhi has a per capita =
income of Rs 53,976, which is more than double the national average. =
Delhi=92s main service industries, supported by as strong and well laid =
out infrastructure, add hotels, banking, IT, telecommunications, media =
and tourism. In recent times, Delhi=92s manufacturing industry has =
emerged considerably and consumer goods industries have established =
manufacturing units and headquarters in and around the capital. =
Construction, health, power, telecommunications, community services, and =
real estate form the backbone of Delhi=92s economy. The capital=92s =
retail industry is 1 of the fastest growing industries in India. Public =
transport in Delhi includes buses, auto rickshaws, taxis, suburban =
railways and metro rail.

HYDERABAD – Growth rate: 7.8% Hyderabad, the =
financial capital of Andhra Pradesh, is also called as the city of =
pearls. With an estimated population of 7 million, the city is the =
biggest contributor to Andhra Pradesh=92s gross domestic product, state =
tax and excise revenues. As per 2006 statistics, the per capita income =
of Andhra Pradesh was at Rs 25,625 (less than Rs 200 of national =
average). The city, which utilized to be primarily a service city, is =
presently the seat of several businesses, adding trade, communication, =
transport, commerce, storage, and lately IT. Like Bangalore, Hyderabad =
also has witnessed a real estate boom in recent times, mainly because of =
the growth of IT and retail business in the city. Major pharmaceutical =
companies such as Dr Reddy=92s Laboratories, Matrix Laboratories, =
Aurobindo Pharma Limited and Vimta Labs are landed here. Hyderabad has =
also done considerable results in the field of bio-technology through =
initiatives like Genome Valley and Nanotechnology Park. For the =
advancement of infrastructure in the city, the Andhra Pradesh government =
is building a skyscraper business district at =
Manchirevula

PUNE – Growth rate: 7.4% – The growth of this =
major industrial city, situated roughly 150 km east of Mumbai, has =
turned the topic of discussion these days. Right from automobile majors =
such as Tata Motors, DaimlerChrysler, Pune will soon house units of =
international biggies such as General Motors, Volkswagen, Fiat, et =
cetera. A number of significant engineering goods industries like =
Cummins Engines Co Ltd and Bharat Forge Ltd, electronic goods companies =
like LG, Whirlpool, food companies like Frito Lay and Coca Cola are also =
put here. Of late, Pune=92s software industry has grown by leaps and =
bounds. IT parks like Rajiv Gandhi IT Park at Hinjewadi, Magarpatta =
Cybercity, MIDC Software Technology Park at Talawade, Marisoft IT Park =
at Kalyani Nagar are seats of technology that the city can boast of. To =
face the demands of this explosive economic growth in Pune, the state of =
Maharashtra is planning a 1,000 MW power plant to uniquely service to =
the requirement of Pune. MIDC is the lead agency for the =
project.

BARDHAMAN – Growth rate: 6.6% – Located =
nearly 100 km north-west of Kolkata, Bardhaman is headquarter of the =
district of the same name. With about 58 % of the population gaining =
their livelihood from agriculture, Bardhaman has received the name of =
=91granary of West Bengal=92. Rice grown in the area is supplied to =
different parts of India and also exported to the neighboring countries. =
Though predominantly an agricultural area, Bardhaman also houses a =
number of industries supported mainly by rich mineral sources available =
in the area and also imported from the neighboring Indian states of =
Bihar, Orissa and Assam. The industrial belt of Bardhaman has mainly =
developed embracing the Asansol and Durgapur sub-division. 2 most =
pioneer industrial units of the area are Durgapur Steel Plant and =
Durgapur Alloy Steel Plant. Other industries that thrive in the area =
consisting coal-based industries, chemicals and power plants. The =
Damodar Valley Project has gone a long away in getting the irrigational =
need of the region. Indian Iron and Steel Industry (IISCO) form the =
economic backbone of Asansol area. It is the oldest pig iron and iron =
casting unit in India. Chittranjan Locomotive, a government undertaking, =
supplies locomotive parts all around India. Many cottage industries have =
also developed in the area that support the area=92s rural =
economy.

KOLKATA – Growth rate: 6.3% – Often termed =
lovingly as the cultural headquarter of India, the capital of West =
Bengal has a population of 5 million. Like its several other =
metropolitan cousins, Kolkata incurred from economic stagnation in =
post-independence India. However, since 2000, the city has evidenced an =
economic rejuvenation, thanks to the development of IT industry in =
Rajarhat in Greater Kolkata. The city=92s IT sector is developing at 70 =
% annually =96 double that of the national average. The city has seen a =
surge of investments in the housing infrastructure sector. Many new =
projects have come up in recent times. Some reputed companies are =
headquartered here. Of them, ITC Limited, Birla Corporation, Bata India, =
Domodar Valley Corporation deserves special mention. Opening of the =
Nathu La in Sikkim as a trade route has put Kolkata in an beneficial =
position. Like other metropolitan cities of India, Kolkata continues to =
struggle with problems such as poverty, pollution and traffic =
congestion.

CHENNAI – Growth rate: 6.2% – The capital =
of Tamil Nadu, the 4th largest metropolitan city in India, has an =
estimated population of 7.5 million. The economy of the city is aided by =
industries like automobile, technology, hardware manufacturing, and =
healthcare. As per recent report in The Hindu, economists have =
forecasted that Chennai=92s per capita income would rise from $468 in =
2000 to $1149 in 2015 and $17,366 in 2050. The city houses India=92s =
major automobile companies and happens to be India=92s second-largest =
exporter of information technology and information-technology-enabled =
services, after Bangalore. Buses, trains, and auto rickshaws are the =
most general form of transport within the city. To counter traffic =
congestion, the state government of Tamil Nadu is building a number of =
flyovers at significant =
intersections.

[Tags India Infrastructure, Retail Lifestyle, Lifestyle =
Economy]

[Category India, Lifestyle]

DJIA	10779.17	+45.50
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