Recession and Kerala IT Industry

We, the companies of Technopark, after careful consideration of the issues facing the IT and ITES Industry of Kerala in general, and of the Technopark community in particular, would like to bring to the attention of the people of Kerala as well as the Government of Kerala the following points:
1. The IT Industry in Kerala is estimated to employ a workforce of over 60,000, which includes both highly-skilled professionals as well as non-technical personnel, with Technopark employing approximately half of this workforce.
2. The IT Industry in Kerala had an approximate annual turnover of Rs. 1500 crores last year, with Technopark contributing about Rs. 1200 crores.
3. The global economic meltdown has begun to impact Kerala's IT Industry. The magnitude of impact and its timing will vary between companies. However, the growth rate of the industry is likely to be seriously impacted for the next 1-2 years. In particular, the year 2009 is expected to be the most impacted period.
4. The industry will be forced to take a series of steps in order to tide over the slowdown. The steps that may need to be taken include reduction in operational expenses, reduction or stagnation of remuneration, reducing employee intake, and in rare cases, termination of services of personnel.
5. We affirm that these measures may only be necessary for a limited period, and that the industry will continue to contribute to the economy of Kerala in a significant manner, even during this period.
6. The world over, Governments are coming out with a slew of measures help their industries tide over the present crisis. We call upon the Government of Kerala and the Government of India to adopt supportive steps to help the IT and ITES industries cope with the economic slowdown.
7. The IT and ITES industries have to compete globally, and therefore must have parity in operational costs to retain the global competitive edge. We request that the Government of Kerala act immediately to ensure that the administrative regime in the Government-run IT parks must be enabling and competitive vis-a-vis other IT destinations in the country.
8. We request that the Government does not impose any additional taxes or duties on the industry at this time.
9. We recognize the need for socially justice and equity in personnel policies as articulated by the Chief Minister in the recent meeting with the Industry. We reiterate that large-scale termination of employment will be a last-resort action, to be adopted only when the survival of a company is in jeopardy without it.
10. We would like to point out that collectively, Technopark companies have invested many times the amount of investment made by the Technopark itself. However, the companies have no say in the administration of Technopark. We request the Government to rectify this anomaly by including representatives of Technopark companies in governance bodies such as the PIB.
11. In order to sustain the current levels of Business, we call for the following specific steps to support the IT and ITES Industry:
a. We request the Government to re-examine the rental regime in the Government-run IT parks and ensure the rentals are harmonized with the recent trends in other metros. We consider that a rental reduction of about 25% is warranted to retain our competitive advantage.
b. We request that the restrictions on electricity consumption is removed and the recent tariff hike reversed, as electricity is the only and most vital raw material consumed by the industry
c. We request the Government to treat Technopark as an Essential Service, as has been done in West Bengal, so that events such as hartals and bandhs do not disrupt the functioning of companies
d. We seek clarifications as to the exact legal framework under which Technopark companies operate. Where new legislation or legal frameworks are to be created, we request that this is done with industry participation
e. While the Government retains the right to examine compliance of companies to the applicable laws, we request that a mechanism for this be instituted within Technopark itself. In particular, we request that the Government does not go public or to the media with such issues in the context of any one or more companies.
f. We request that the current policy regime of the IT Department be suitably modified so as to enable Technopark companies that possess certain minimum requirements to take up e-Governance projects for the State of Kerala and its parastatals.
g. We request that the Government of Kerala to take up with the Government of India in order to extend the STPI Scheme by 3 more years.
i. We request the concessions made to Special Economic Zones be made available to the Technopark as well.
j. We request that sales tax be withdrawn on computer software. We, the companies of Technopark, are confident that the IT and ITES industry will successfully tide over the current crisis. However, for this, we need parity in cost structures with other states and the operational flexibility and freedom to run our businesses. We request the people and the Government of Kerala to support the industry in retaining its operational viability in these difficult times so that the industry can continue to provide employment and contribute to Kerala's progress.

Kerala an attractive Destination for Venture Capital Community

Kerala is fastly emerging as the ideal attractive destination for the Venture Capital Community. This was reverberated during the Venture Capital Summit 2008:Financing the Knowledge Economy in Kerala organised by the Group of Technopark Companies (GTECH) in association with the Department of Information Technology, Government of Kerala, Kerala State Industrial Development Corporation (KSIDC) and Technopark. In his Inaugural address, Mr. Vinay Deshpande, CEO, Founder and Chairman of Encore Software said Venture Capital not only bring in the Financial Commitments but also networks, partnerships and market access. In his special address, Dr. Ajay Kumar said that the Kerala has an enabling Environment for creating and nurturing home grown companies.

The summit deliberated on the need for the Technology Companies in Technopark to build stronger partnerships with the Venture Capital Community. The summit had sessions on the Opportunities for Kerala in the Global Venture Capital Industry and case studies of Venture Capital funding in the IT/ITES Industry. In the various presentations at the summit Venture Capital experts identified the emerging areas of Venture Capital funding in Kerala like cloud Computing in the IT Industry and also non IT areas like Clean Energy, bio fuels, solar and wind energy. Many of the speakers felt that Venture Capital brings in increased Market awareness, enhanced Corporate Governance and access to additional funds at competitive rate. Apart from these , Venture Capitalists brings in expertise in the area of sales and operations and wide network for sales and partnerships. The Summit felt the need for a policy and mindset change to convince sceptical investors.

The speakers at the summit felt the need for creating an enabling ecosystem for Entrepreneurship. The summit also deliberated the need for the IT Industry in Kerala to build partnerships with Research and Development Centres and Venture Capital Community. This sort of trilateral relationship can transform the business landscape of the State.


Prominent speakers included Mr. Pradeep Udhas, Managing Director, Greater Pacific Capital, Mr. Kumar Shirlagi, Managing Director, NEA – Indo US Ventures, Mr. Rajeev S, Professor Corporate Strategy and Policy Area, IIM Bangalore, Mr. Ravi Narayanan, Managing Director, Mentor Partners, Mr. Natarajan Rangarajan, CFO, Helion Venture Partners, Mr. Prashanth Prakash, Partner, Accel India Venture Fund, Mr. G Vijayaraghavan, Founder CEO, Technopark, Mr. Rakesh Kumar Gupta, COO, Allianz Cornhill Information Services, Mr. Nandakumar, President and CEO, Suntec Business Solutions, Mr. Klass Oskam, Associate Director, Ernst & Young India, Mr. Joseph C Mathew, IT Advisor to the Chief Minister of Kerala, Mr. Siddhartha Bhattacharya, CEO, Infopark, Mr. N Radhakrishnan Nair, CEO, Technopark and Mr. Balaji Pasumarthy, Chief Catalyst, Buisnessgyan.

Venture Capital Summit in Kerala

Trivandrum is all set to host the Group of Technopark companies Venture Capital Summit with the theme ‘ Financing the Knowledge Economy in Kerala on 10th and 11th of November 2008.

The two-day summit, organized by the Group of Technopark Companies (GTECH) jointly with the IT Department, Government of Kerala, the Kerala State Industrial Development Corporation (KSIDC) and Technopark, aims at creating a common platform for the Industry including IT, ITES, Biotechnology, Bioinformatics, Tourism
and others to network with the leading National and International Venture Capital firms. Businessgyan, the Corporate Magazine is the Knowledge Partner for the Summit.

The summit will have session on the Opportunities for Kerala in the Global Venture Capital Industry, Session on Venture Capital Funding in the IT/ ITES Industry, A special Session on Kerala: The Road ahead to become the country's IT Hub and A holistic View of Kerala: Building Global Companies. Speakers at the Inaugural session would include Mr. Vinay L Deshapande, Chairman, CEO and Founder of Encore software and Dr. Ajay Kumar IAS, Secretary Information Technology, Government of Kerala.

Other speakers at the sessions include Mr. Pradeep Udhas, Managing Director, Greater Pacific Capital, Mr. Kumar Shirlagi, Managing Director, NEA – Indo US Ventures, Mr. Rajeev S, Professor Corporate Strategy and Policy Area, IIM Bangalore, Mr. Ravi Narayanan, Managing Director, Mentor Partners, Mr. Natarajan Rangarajan, CFO, Helion Venture Partners, Mr. Prashanth Prakash, Partner, Accel India Venture Fund, Mr. G Vijayaraghavan, Founder CEO, Technopark, Mr. Rakesh Kumar Gupta, COO, Allianz Cornhill Information Services, Mr. Nandakumar, President and CEO, Suntec Business Solutions, Mr. Klass Oskam, Associate Director, Ernst & Young India, Mr. Joseph C Mathew, IT Advisor to the Chief Minister of Kerala, Mr. Siddhartha Bhattacharya, CEO, Infopark, Mr. N Radhakrishnan Nair, CEO, Technopark and Mr. Balaji Pasumarthy, Chief Catalyst, Buisnessgyan.

The summit is organized with the aim of building positive economic perceptions of the Kerala's Industry in general, and the IT and ITES Industry in particular, as a stable and enabling destination and highlight the success stories from Kerala. It will also enable direct contact between local companies and the Venture Capital industry so as
to stimulate their growth.

Get the bottle, switch on TV, it's hartal again

An interesting article appeared in the Economic Times today on Hartal and Kerala. Indeed a thought provoking article. The article is copied down giving full credit to the Journalist from ET.

NEW DELHI: Hartal’s own country: Kerala’s tourism corporation may have not yet adopted this as its catchline, but the modern-day Malayali appears to be high on it. Between January 16 and August 20 this year alone, the country’s most literate state pulled out all plugs to participate in a whopping 89 hartals (strikes, sit-ins, protests and the like) for a swelter of reasons ranging from the sublime to the ridiculous, the local to the global, the petty to the pious. The extent of the success of hartals among the congenitally protest-friendly Keralite, chronicled recently in a website imaginatively titled www.harthal.com, can be gauged by two parameters: The dizzy cash register of the state beverages’ corporation and TRP ratings of TV channels even as a technicoloured rash of serials and competitions break out on a dozen regional channels or more to keep the Citizen Malayali glued to his seat. In a fell stroke, the hartals celebrate two of his best loves: Liquor and melodrama. What better way to keep him mesmerised when all activity around comes to a standstill. The website lists every nook and cranny of modern Kerala’s own version of Cuba libre. On the last hartal, some parts of the idyllic state managed to clock up sales of more chicken and liquor than even at Christmas. The state’s electorate may be polarised between CPM-led LDF and Congress-led UDF, but come bandh-time, the Malayali shows the true spirit of accommodation and celebrates camaraderie and bonhomie. And it’s not just the BJP, which has barely any seats in the state that has managed to get many strikes propelled with the jet fuel of Malayali romance with protests, but also Naxal outfits. While the former are always a grand success, even bandhs by Naxalities, who are in the periphery of the state’s political activity, get decent backing. Be it the hanging of Iraqi dictator Saddam Hussain or the Danish cartoon of the Prophet, Malayalis are the first to bring shutters down. That the bandh has become the favourite protest mode was evident when the state’s trading community organised a state-wide bandh. In the good old days, traders never participated in bandhs as it affected their profits. With all normal life is at standstill in hartal time, some enterprising Keralite entrepreneurs are understood to have even started a business of ferrying potential boozards to the jazzed up waiting bars. But while the carnival is on, the state’s only legitimate source of income, is taking a big beating. In Alleppey’s backwaters, where the Kettuvallam or Keralite version of houseboats are a big favourite with foreign tourists, the beginning of the tourist season has already hit a speedbreaker with roads, shops, airports, hotels all downing shutters to celebrate hartals.

Venezuela and Kerala to Strengthen IT Cooperation

Venezuela and Kerala is all set to strengthen the bilateral cooperation in the IT Sector. This was reverberated during an interaction of Ms. Layla Macc Adan, Minister for State for Popular Power for the Telecommunications and Informatics, Government of Venezuela with the IT Community in Trivandrum organised by the Group of Technopark Companies (GTECH) in association with Technopark. The delegation is here in Kerala to study about the IT Industry and the evolution of Free and Open source software in Kerala. During the interaction the Minister stressed on the need for both Kerala and Venezuela to share information on the creation of Knowledge societies and the role of the IT Industry in creating an enabling environment of Growth and Equity.

During the occasion, Mr. N Radhakrishnan Nair, CEO , Technopark , said that the Kerala with its core strength in the Information Technology sector is better positioned to partner Venezuela and called for enhanced cooperation and dialogue between both the states to further strengthen the bilateral trade in the IT Sector and further added that Kerala provided the ideal investment destination for the Investors with quality education, a technologically enabled vibrant growth environment and skilled workforce.

Mr. Satish Babu, Hon. Secretary, GTECH felt that Venezuela could replicate the implementation of Software solutions for the benefit of the Society and thereby creating an economic environment that is sustainable, Inclusive and Equitable.

The delegation with the Minister comprised of experts from the IT Department of the Venezuelan Government and officials from the Embassy of Venezuela in India.

Venezuela and Kerala to Strengthen IT Cooperation

Venezuela and Kerala is all set to strengthen the bilateral cooperation in the IT Sector. This was reverberated during an interaction of Ms. Layla Macc Adan, Minister for State for Popular Power for the Telecommunications and Informatics, Government of Venezuela with the IT Community in Trivandrum organised by the Group of Technopark Companies (GTECH) in association with Technopark. The delegation is here in Kerala to study about the IT Industry and the evolution of Free and Open source software in Kerala. During the interaction the Minister stressed on the need for both Kerala and Venezuela to share information on the creation of Knowledge societies and the role of the IT Industry in creating an enabling environment of Growth and Equity.

During the occasion, Mr. N Radhakrishnan Nair, CEO , Technopark , said that the Kerala with its core strength in the Information Technology sector is better positioned to partner Venezuela and called for enhanced cooperation and dialogue between both the states to further strengthen the bilateral trade in the IT Sector and further added that Kerala provided the ideal investment destination for the Investors with quality education, a technologically enabled vibrant growth environment and skilled workforce.

Mr. Satish Babu, Hon. Secretary, GTECH felt that Venezuela could replicate the implementation of Software solutions for the benefit of the Society and thereby creating an economic environment that is sustainable, Inclusive and Equitable.

The delegation with the Minister comprised of experts from the IT Department of the Venezuelan Government and officials from the Embassy of Venezuela in India.

Employ the Differently Abled

Dr. Ajay Kumar, Secretary (IT), Government of Kerala, called for increasing the employability of the differentially-abled as well as employment, in both high-tech sectors such IT and in other sectors in the economy. He was speaking at the Session on “Diversity in Workforce: Employing the Differently Abled”, organized by the Group of Technopark Companies (GTECH) at Technopark today. Dr. Ajay Kumar also explained the background of the InSight project designd and implemened by the Kerala State IT Mission and SPACE, which has successfully developed and is in the process of disseminating throughout the state an Open Source software stack that enabled visually impaired to use computers. He congratulated GTECH for highlighting this important topic among the Technopark community and Kerala's society.

There are about 70 million disabled people in the country. According to a study by NCPEDP top 100 companies, only 0.4% of their workforce comprised of People with Disabilities. If equipped with the right skills, the differentially abled can be of significant value to economy of the country.
GTECH, as a group representing Technopark companies, took the initiative of organizing this session with the objective of bringing together Corporates, NGOs, the Government and the media on a common platform to discuss issues associated with the employability of differently abled, especially within the IT sector.
Dr. Usha Titus, Secretary, Social Welfare Department, who delivered a special address on the occasion, said that there is vast pool of untapped differentially-abled human resources in the country and in Kerala, and that enabling even a part of these resources would be beneficial to the entire society.

The session also stressed on the need for the IT Industry to work closely with NGO’s and the Government in addressing the issue of employability of the differently Abled. The session showcased success stories of companies like Reuters, IBM, Infosys, Mphasis BFL etc in successfully employing the differently Abled and creating a diversity in their respective workforces.

Other speakers at the session included Ms.Rama Chari, Director, Diversity and Equal Opportunity; Mr. Binu Sankar, CEO, Group of Technopark Companies , Mr. Sebi Chacko, Head-HR (South Asia), Thomson Reuters; Mr. G Vijayaraghavan, ex-CEO, Technopark; Mr. Arun Ramachandran, Project Co-ordinator, Insight Project; Mr. S. Ashok Kumar, Project Manager, Leonard Cheshire International; Mr. Rakesh Gupta, COO, Allianz Cornhill India; and Mr. Amarnath Raja, CEO, InApp Information Technologies.

Major Events of Group of Technopark Companies

Dear,
Some of the major events proposed for the year 2008 is enclosed.

1 Session on Diversity in Workforce: Employing people with Disability
August 7th 2008

2 Kerala Venture Capital Summit 2008: Financing the Knowledge Economy in Kerala
September 2nd and 3rd , 2008

3 HR Conclave: Changing Role of Human Resource Professionals
October 17th 2008

4 Green@GTECH: Corporate Code on Climate Change
Novemeber 21st , 2008

5 GTECH Leadership Conclave and GTECH Annual Forum Meeting
December 18th and 19th 2008

Kerala Venture Capital Summit 2008: Financing the Knowledge Economy in Kerala

Concept Note
1. Introduction

History of Venture Capital in India dates back to early 70’s when Govt of India appointed a committee led by Late Shri R.S.Bhatt to find out the ways to meet a void in conventional financing for funding start-up companies based on absolutely new innovative technologies. Such companies either did not get any financial support or the funding was inadequate which resulted into their early mortality. The committee recommended starting of Venture Capital industry in India.

In mid 80’s three all India financial institutions viz IDBI, ICICI, IFCI started investing into the equity of small technological companies.
In Nov 1988, Govt of India decided to institutionalise Venture Capital Industry and announced guidelines in the parliament. Controller of Capital issues implemented these guidelines known as CCI for VC. These guidelines were very restrictive and following a very narrow definition of VC. They required Venture Capital to be invested in companies based on innovative technologies started by first generation entrepreneur. This made VC investment highly risky and unattractive.

At the same time World Bank organized a VC awareness seminar and selected 6 institutions to start VC investment in India. This included TDICICI (ICICI), GVFL, Canbank Venture Capital Fund, APIDC, RCTC and ILF (now known as Pathfinder). The other significant organisations in private sector were ANZ Grindlays 3i Investment Services Limited, IFB, Jardine Electra.
After the reforms were commenced in 1991, CCI guidelines were abolished and VC Industry became unregulated. In 1995, Govt of India permitted Foreign Finance companies to make investments in India and many foreign VC private equity firms entered India.

In 1996, after the lapse of around 8 years, government again announced guidelines to regulate the VC industry. These guidelines did not create a homogeneous level playing field for all the VC investors. This impeded growth of domestic VC industry. Lack of incentives also made Indian Corporate and wealthy individuals shy of VC funds. With the result VC scene in India started getting dominated by foreign equity fund.

2. Venture Capital Industry and the IT Sector

In 1997, IT boom in India made VC industry more significant. Due to symbiotic relationship between VC and IT industry, VC got more prominence as a major source of funding for the rapidly growing IT industry. Indian VC’s which were so far investing in all the sectors changed their focus to IT and telecom industry.The effect of venture capital on the IT Sector was that it accelerated the rate of innovation and increased the length of technology cycles causing overall economic growth.

A noteworthy point of the VC industry is that of late, its growth has been a function of the growth in the IT industry. This has been the trend in the US and also in the emerging global scenario. India is no exception. VC’s has funded many of the emerging IT Companies. During 2007 VC investments scaled $900 million (Rs3,546 crore), according to industry reports. VCs invested more than $777 million in 57 deals in the first nine months of 2007 which is about five times the $158 million invested in the same period in 2006. ( source Reuters) .

3. The Summit

Group of Technopark Companies (GTECH), which is a strategic association of IT companies in Technopark, is organising a Venture Capital summit christened Kerala Venture Capital Summit 2008: Financing the Knowledge Economy in Kerala. The objective of the summit is to bring the leading Venture Capitalists in India, the IT companies in Kerala and other Emerging Entrepreneurs on a common platform to discuss and showcase the Technological and innovative prowess of the IT companies and possibility of potential funding for the companies in their global expansion plans. Another important and noteworthy objective of this summit is to showcase the emergence of the Kerala IT Industry in the global stage and giving a fillip to the companies to establish national and international networks with the leading financial and venture capital Industry. The summit also aims to showcase the strength of the members of GTECH and try to position GTECH as the reference point for the IT Industry in the state and also facilitate a wider interaction between the Industry and the Government of Kerala.

Name of the Event
Kerala Venture Capital Summit 2008: Financing the Knowledge Economy in Kerala

Duration
Date: August 7th and 8th, 2008
The event will spread over 2 days with the summit closing on the second day with the lunch.

Venue
The proposed venue will be the Travancore Hall within the Technopark Campus. Small meeting places have to be created outside the hall to facilitate one to one interaction between the companies and the VC’s. Also stalls of sponsors have to be accommodated. The details of the logistics to be worked out in conjunction with the Technopark authorities.


Target Audience
100-120 delegates will be ideal for the summit

The summit will target the following audience
a. Leading venture capital firms in India
b. GTECH Members
c. GTECH Non-Members from Technopark
d. IT companies from other parks like Inforpark and Companies in SEZ, Cochin
e. Companies from other sectors
f. Government of India
g. Government of Kerala
h. Government and non-Governmental Institutions working in the area of Entrepreneurship Development
i. Select Academic Institutions
j. Academic Researchers
k. Trade associations
l. Media

Speakers
The speakers of the summit will include representatives from Venture capital firms in India, IT/ ITES firms and other experts from the VC Industry.

Safe Drive@GTECH

According to a World Health Organization (WHO) / World Bank joint report, road traffic injuries were the 11th leading cause of death. Without appropriate action and multi stakeholder participation the report estimates that by 2020 this will outpace AIDS, Malaria and War as the world public health challenge. The private sector in India has been involved in multisector and safety initiatives because of the risks posed by the issue to core business activities and also an understanding that the factors driving the road safety facility require a total systems approach engaging all stakeholders.

Understanding the long-term implications of this, Group of Technopark Companies (GTECH) in association with National Transportation Planning and Research Centre (NATPAC), Energy Management Centre and Executive Knowledge Lines launched the Safe Drive @ GTECH campaign in Technopark
With over 6,000 vehicles operating on a daily basis, Technopark has the third largest fleet after the Kerala State Road Transport Corporation and the VSSC. The companies functioning on the campus also employ over 500 professional drivers for buses, mini buses, utility vehicles and cars transporting employees to the campus and back.
This unique GTECH initiative was aimed at enhancing fuel efficiency, cutting down on road rage, improving road etiquette, avoiding accidents, providing response strategies and ensuring statutory compliance.
The first batch of 30 drivers has undergone the training programme during the last week of December 2007.
Group of Technopark Companies have lined up a series of programmes as a follow up to the first launch as GTECH considers it important to ensure that Technopark drivers, like other professionals on the campus, exhibit the highest standards of professional competence. SafeDrive@GTech is aimed at achieving this objective as well as to enhance the quality of traffic in Thiruvananthapuram

Subhiksha- The Retail Giant

Subhiksha is the country's largest retail outlet running nearly 500 supermarkets in the north and south. subhiksha which was started in the year 1997 is now an household name selling quality products at an affordable rate targeting the Aam admi. Subhiksha was started by an young Entreprenuer named R Subramanian who is an alumunus of the two prestigious institutions in the country- IIT and IIM. In the words of Mr. Subramanian the inner urge of developing a unique business model suitable for the country made him stay in India. He says India is a land of opportunity and should not follow the foot steps of western business practiceses. He was also partly involved in the Financial markets before he started Subhiksha.

Subiksha not only sells food and other FMCG products but also mobile phones under the mobile store concept. Though Subhiksha was started in Chennai , it has largely moved into North India with sizable presence in Noida, Gurgoan, Delhi, Punjab and Hariyana . subhiksha's vision for the next decade. Mr. Subramanian wants to see Subhiksha emerge as the biggest retail supermarket in India bringing the farm produce directly from the fields to the consumer table. Mr. Subramanian wants to re-engineer the entire supply chain Management system.

Best wishes Mr. Subramanian.

EGYPT- The New Destination for Indian IT Companies

The new country that is catching the attention of the world is Eqypt which is fastly emerging as the new IT/ITES Destination. The Government of Egypt has taken a key initiative in promoting the nation as an importnat player in the IT/ITES sphere. It is also noteworthy to observe that many Indian companies are also considering the option of setting up a strategic unit in Egypt to access the African Market. The other advantage of operating in Egypt is the cost advantage and the availaibility of skilled manpower. The Government also has developed an IT park called SMART VILLAGE which houses international companies like HP, Ericcson, Sun Microsystems etc. already Indian IT Majors like I-flex, Aptech and Wipro have started their Egyptian operations. Satyam computers is all set to open a development center in Smart Village.

Egypt has been ranked the thirteenth most attractive destination to set up an offshore service, according to a study by A.T. Kearney, a global management consulting firm. The study, which looked at 50 countries, was based on the evaluation of three main factors: financial structure, availability of skilled workers and overall business environment. As a result of reforms to Egypt’s business climate — such as lowering the cost of employment, the increased availability of attractive business properties like Smart Village and flexible income tax regulations — in addition to burgeoning language and computer skills on the part of the Egyptian population, Egypt is becoming a prime destination for India’s IT giants, who are coming to boost the industry as well as take advantage of Egypt’s underutilized workforce.

The Government of Egypt has also established an agency called Information Technology Industry Development Agency (ITIDA) .The aim of this agency is to increase the exports of ICT products and services and increase the inward investments into Egypt.

It should be a strategic insight for Indian companies to look for options in Egypt when the companies are feeling the heat for overdependance on the US Market . The pressure on margins can also be decreased by penetrating into new markets in Europe, Middle East and Africa.

Kerala and Bavaria reinforces Economic and Trade Relations

Kerala and Bavaria today reinforced their economic and trade relations in Trivandrum and reverberated the need to develop stronger and deeper relations especially in the IT front. This was the key highlight of a Session on Europe via Munich, Business and Market opportunities in Germany organised by the Group of Technopark Companies (GTECH) in Trivandrum.

Kerala IT entrepreneurs can tap the lucrative European Union (EU) market by setting up base in Bavaria, the largest and most industrialised state in Germany, German Deputy Consul General Horst Pfeifer said .

Making a presentation at the session on Europe Via Munich, Business and Market Opportunities for Indian Companies in Bavaria / Germany' Mr Pfeifer said some 60 Indian companies had already set up their offices or manufacturing units in Bavaria with an investment of more than USD 900 million. These included Dr Reddy's Pharmaceuticals, TCS, Satyam, HCL, iGate and Wipro, he added.
''Bavaria, the largest German state, is virtually at the centre of Europe and provides a gateway for Indian businessmen to explore the EU market,'' he added.
''Home to respected brands like BMW, Audi, Siemens, Puma, Adidas and Allianz, Bavaria is the heart of the hi-tech industry in Germany in the areas such as IT, electronics, aerospace, automobiles, mechanical Engineering and telecommunications,'' he said.
With India also taking a lead in hi-tech areas such as IT and telecommunication, the entrepreneurs from the two countries had a natural synergy, Mr Pfeifer added.

Delivering the special address during the occasion, Dr. Ajay Kumar, Secretary IT, Government of Kerala said that the Kerala with its core strength in the Information Technology sector is better positioned to partner Bavaria and called for enhanced cooperation and dialogue between both the states to further strengthen the bilateral economic cooperation. Stating that the fundamentals of the Indian economy were strong, Dr. Kumar said Indian firms were becoming globally competitive and the country was emerging as an export hub for a range of products from agricultural goods to automobilie components and IT enabled services.

Mr John Kottayil, Executive Director, State of Bavaria India Office, Bangalore said export from Bavaria was 150 billion Euros last year. Inviting investors in the 19 manufacturing clusters in the state, he said all assistances were provided to potential investors. Mr Quintus Bartscherer, Partner, KoBa-Treuhand GmbH, said Germany was in the process of enacting a new law to bring down the share capital from 25,000 to 10,000 Euros.

Ms Britta Peterson-Barhnusen, Head of Passport and Visa Section, German Consulate in Chennai, said the consulate had issued 38,000 visas last year, 80 per cent of which were the Shengen business visas. There was a 17 per cent growth in the number of visas issued by the consulate last year, she said, adding that the target for this year was 42,000 visas. The German consulate in Chennai receives 350 applications every day and schedules nearly 120 visa interviews daily. The Shengen business visa enabled entry to more than 20 European countries, she said.

Mr. Satish Babu, Hon. Secretary GTECH and President InApp Information Technologies welcomed the members to the session

The session was organised by Group of Technopark companies in Association with the Bavarian Ministry for Economic Affairs, Transport and Technology.

Chandrajit Banerjee of CII

I had the good fortune to work with Mr. Chandrajit Banerjee who has been currenly appointed as the new Director General of Confederation of Indian Industry (CII).

Mr Banerjee has served CII in various locations as the Head of State and regional offices of CII such as Kolkata, Delhi, Ahmedabad, Chennai, Chandigarh, Mumbai and Bangalore. Banerjee has been associated with CII for 20 years since 1987. CB as he is called in the Industry circles is also affiliated to several industry associations, including the Indian Earthmoving Construction Association and the Tractor Manufacturers' Association among others. He was also the CEO of Bangalore International Exhibition Center. A strategist and a think tank , CB was one of the pioneers in kickstarting the Corporate Governance movement in India.He was also the executive Director of National Foundation for Corporate Governance. CB is a post graduate in Economics with a specialisation in Econometrics.

Back to my roots

I am settling down in Technopark and an amazing park with so much of scenic beauty. I have finally got the chance to be called as a CEO. The companies here in the park are enterprising. From product development to offshore services they cover the entire gamut of the IT spectrum. So back to my roots and catching up with old buddies. A morning travel by train through the backwaters to my office and an evening stroll across the technopark has now become a part of my life. Away from the mad traffic of Chennai and Bangalore and finally at ease and also at peace.

CII to Technopark

I have decided to mouve out of CII. Having worked for 3 years in CII , I have made up my mind to move back to my state . I will be now be placed at Technopark in Trivandrum. The road ahead in Technopark is challenging. I think its time for me to take up challenges. I will be working for the growth of the IT Industry in Kerala, formulating strategies, working on policy issues and addressing the concerns of the stakeholders.

Working in CII have been fabulous. I had the opportunity to interact with the best bussiness minds, thought leaders, strategists and Policy makers.

I will be missing CII a lot especially those thought sessions and brainstorming events.

Bennie

I was grieved at the loss of my school mate Bennie. He was a wonderful person and a great friend. I pray for his soul. You have left behind insurmountable memmories of Freindship , affection and care
Bennie I will miss you a lot.
Your friend,
Binu

Suggested talking points for Mr. P K Mohapatra, Chairman, CII (SR) and President and CEO, Technology Business Sector, RPG Enterprises

With the liberalization of the economy, India has become one of the fastest growing nations in the world. With positive indicators such as a stable 8-9 per cent annual growth, rising foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, India has emerged as epicenter of Growth, Innovation and Knowledge.
The rapid economic growth has also had a significant impact on the social front. Social indicators have improved. Literacy levels have risen, while morbidity and mortality rates have declined. However, it is widely felt that the rate of social development needs to escalate and economic growth needs to be backed by an environment conducive for Inclusive, Sustainable and Equitable growth.

In India the measure of development process should not simply be a measure of aggregate of economic activity but should be an assessment of the inclusiveness of economic growth with emphasis not only on the distribution of economic gains but also on the security, vulnerability, empowerment, and sense of full participation of people in all facets of Economic Activity. The real challenge the nation faces is in fact empowering and creating opportunities for each person when the economy is growing rapidly on a higher growth trajectory.

To create an Environment of Inclusive growth, CII is working on a long term strategy for implementing projects that can facilitate Economic and Social Inclusiveness by creating opportunities for the economically and socially disadvantaged sections of the Society. CII has brought in the idea of Affirmative Action to work out solutions for the upliftment of that section of the Society left out of the economic growth.

CII has been actively working in the area of Affirmative Action from 2006. The four areas under which CII has been working
· Work place
· Entrepreneurship development
· Employability and
· Education

The member companies of CII have already engaged in providing training facilities and employment to those on the fringes of economic development and provided a platform to effectively compete in the market place. Many of the companies have also partnered with educational institutions to support and aid students from the Scheduled Castes and Scheduled Tribes.

Many of the member companies are actively undertaking activities to promote the well being of these deprived sections of the society which involves Entrepreneurial training , Skill Development training, Scholarships for students , job oriented training programme for aspirants for IT/ITES jobs and other allied activities. CII (SR) is committed to the economic upliftment of the disadvantaged group. CII is running programmes throughout south India on developing the Skills for these deprived sections and also to nurture their entrepreneurial skills and make them more competitive in the free market. CII has entered into a Memorandum of Understanding (MOU) with the Entrepreneurship Development Institute, Ahemdabad to train the budding entrepreneurs within these deprived sections of the society.

CII members have partnered with NGO’s to improve the level of Primary Education in the Government Schools. In addition to these initiatives, CII members have developed schemes to finance exceptional SC/ST students through Scholarships, counseling and career guidance programmes in the Government schools in South India. CII members have also partnered with NGO’s to implement mid day meal scheme programme in Government Schools.

Realizing the importance of Skills in improving the livelihood options of the excluded groups, CII in Southern Region has formed a Taskforce on Skills, Employability and Affirmative Action. This task force is mandated with the mission to facilitate a multi-partnership approach for the development of skills in the southern Region. This approach envisages cooperation among Government, Policy makers, Industry, Researchers, Skill training providers and educators and development specialists.
Under this platform CII has evolved two major initiatives one with respect to the Soft Skill Training programme and the other a large Scale skill Development initiative called Grassroot Level Skill Development Initiative (GLSDI). The soft skill training programme intends to reach out to more than 5,000 students under the Madras and Andhra University. This programme is being supported by an Industry Consortium which has formulated the syllabi for the training programme.

CII members are also involved in the upgradation of Industrial Training Institute in the Southern Region. The members are partnering with the Government to upgrade the institutes through the Public Private Partnership (PPP).

GLSDI propounded by CII represents a key instrument in facilitating the social and economic integration of excluded groups and disadvantaged segments of the population like the rural unemployed youth and School drop outs.

Affirmative Action is a key strategy for the overall economic and social development of the country. It also gives an opportunity for both the Public and the private sector in India to join hands and to ensure that there in an inclusive economic development in the country and the development is sustainable and equitable. It is also important to note that the catalytic role played by CII for been an active facilitator in this process and thereby creating a platform for the stakeholders for sharing of information and expertise in the area of Affirmative Action. The road ahead for CII in the area of Affirmative Action is challenging but CII with its inherent strength of a vision and leadership will be able to make a huge impact in improving the lives of Indians left untouched by the economic growth that the country is currently witnessing.

Quote

The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.

Quote

Most of the important things in the world have been
accomplished by people who have kept on trying when
there seemed to be no hope at all." -- Dale Carnegie

CII Skill Development Initiative in Southern Region

Skill development is the quintessential factor to maintain the current economic growth and if this is not addressed at the earliest it will have a debilitating effect on the Indian economy. Realizing this important aspect CII in Southern Region has formed a Taskforce on Skills, Employability and Affirmative Action. This task force is mandated with the mission to facilitate a multi-partnership approach for the development of skills in the southern Region. This approach envisages cooperation among Government, Policy makers, Industry, Researchers, Skill training providers and educators and development specialists.

Under this platform CII has evolved two major initiatives one with respect to the Soft Skill Training programme and the other a large Scale skill Development initiative called Grassroot Level Skill Development Initiative (GLSDI). GLSDI propounded by CII represents a key instrument in facilitating the social and economic integration of excluded groups and disadvantaged segments of the population like the rural unemployed youth and School drop outs.
Under the GLSDI programme CII has been working with MARG Constructions to train 5000 unemployed rural youth at the Special Economic Zone (SEZ) in Kanchepuram district in Tamil Nadu. CII has created a consortium of experts drawn from the Industry to monitor the project during the different phases. This is a paradigm model with both Forward and Backward Linkages with the NGO’s providing the backward linkage and the Industry the forward linkage. The project has met with huge success in terms of enhancing the livelihood options of these youth and also enhancing the skill sets which will enable the youth to join the segment of productive workforce in the country. CII is now trying to replicate the entire model in other states in the Southern Region.

CII is also rolling out a Soft Skills Training programme for the Post Graduate students under 61 colleges of the Madras University. CII has formed a consortium comprising of CII member companies and University of Madras to advise and oversee the implementation of the Soft skill training programme.

CII also has brought out a series of training modules like Manual on Soft Skills - Train the Trainers, an Introduction to the World of Work -Module for GLSDI - Instructor Manual and GLSDI Workbook.

Skill Development is a key strategy for the overall economic and social development of the country. It also gives an opportunity for both the Public and the private sector in India to join hands and to ensure that there in an inclusive economic development in the country and the development is sustainable and equitable. It is also important to note that the catalytic role played by CII for been an active facilitator in this process and thereby creating a platform for the stakeholders for sharing of information and expertise in the area of Skill Development. The road ahead for CII in the area of Skill Development is challenging but CII with its inherent strength of a vision and leadership will able to make a huge impact in improving the lives of Indians left untouched by the economic growth that the country is currently witnessing.

Suggested talking points for Mr. Gopal Srinivasan, Chairman, CII Tamil Nadu State Council and Director TVS Electronics

Respected Dr. A P J Abdul Kalam, Former President of India
Mr. T T Ashok, Chairman, CSR Sub Committee, CII (SR)
Mr. P K Mohapatra, Chairman, CII (SR)
Representatives from the Teaching Fraternity,
Respected Dignitaries,
Friends from the media and
My dear young friends,

It is my honor to be with you today to deliver the concluding remarks of the Imagine and Innovate Contest. We had a thought provoking and Insightful session with Dr. Kalam where he shared his views on the various developments in the country. I am taking this opportunity to highlight on some of the initiatives taken by CII to promote an Inclusive Economic Development in the country. The first one is creating an Innovation led Economic Growth and second one Skill Development Programme.

India is fast turning into an innovation led economy where innovations are leading to better growth and productivity. Young Innovations presented today is a gateway for the development of our country

Innovation is critical to our nation for many reasons. First and foremost, Innovation fuels sustainable economic expansion - creating high-wage jobs, world-class exports and productivity growth so critical to our long-term global competitiveness. Innovations also improve our quality of life. from new drugs and cures that help people live longer and healthier lives, to agricultural advances that permit more bountiful harvests with less herbicides and pesticides. Innovations are also vital in our efforts to protect our homeland by hardening our infrastructure, detecting dangers and empowering our defenders. Energy innovations are the key to meeting our future power needs while protecting our environment, and Innovation holds extraordinary promise for the future of education. By exporting our Innovative technology around the world we help improve the standard of living of the other 6 billion people on the planet.

CII is laying a strong emphasis on Skill Building and the thrust on this is being stressed through the theme ‘Building People: Building India’. We have created a movement to address the skill deficit. A project is being piloted in Tamil Nadu at a Special Economic Zone and this Skill Development Initiative has both the forward and the backward linkages for the employment of the rural youth. CII is planning to replicate the entire Skill development model in other states and scaling it up at the National level. CII is also concerned with the employability of University graduates and have tied up with the University of Madras to launch a soft skill training programme to train the college professors and lecturers on key aspects of soft skills. The curriculum for this soft skill training module has been developed by the CII led Industry consortium. CII aims to strengthen the Skill Development initiative in the country to develop a workforce that can compete at all levels at the global level.

This particular contest has created an enabling environment for young minds to showcase their innovative ideas. Forums of CII are an ideal platform for these ideas to be converted into products or solutions which will surely enhance the quality of life and also contribute to sustainable economic growth.

CII has been in the forefront as a catalyst to identify and scale up innovative ideas for the benefit of the Industry, the Society and the nation at large. Many of the projects presented today have Industrial significance and also social significance. The projects have shown local solutions are more sustainable in implementing resource management projects.
I take this opportunity to thank all the students who have actively participated in this event. I thank Dr. Kalam for taking time out of his busy schedule to be with us to present the awards and also to be with us sharing his perspectives on the different developmental challenges the country faces. His presence here has added immense value to the entire contest and we look forward to his valuable association in the near future.

Thank You

Suggested talking points for Mr. N Kumar. Past President, CII and Vice Chairman, The Sanmar Group during a confererence on Corporate Governance and CSR in Mumbai organised by US-India Business Council

Corporate Social Responsibility promotes a vision of business accountability to a wide range of stakeholders besides shareholders and investors. Corporate social Responsibility is the commitment of business to contribute to sustainable economic development working with employees, their families, the local community and society at large. It is an expression used to describe a company's obligation to be sensitive to the needs of all its stake holders in its business operations. .CSR is a part of the multi dimensional process which assumes that the community interests and stability is part of the long term business sustainability. Key areas of concern are environmental protection and the well being of employees, the community and civil society in general. Many Corporates are looking at CSR as a business strategy which can provide long term leverage over the competitors. For example some consumers have become increasingly sensitive to the CSR performance of the companies from which they buy their goods and services. And also some investors and investment fund managers have begun to take account of a corporation’s CSR policy in making investment decisions. As part of the CSR policy many companies are now encouraging their employees to volunteer and take part in community work. Ultimately such actions enhance the company’s reputation and strengthen the brand.
The role of business in Society has been debated in economic literature for a long time. The modern debate on the Social side of business gained momentum in 1953 with the publishing of the book Social Responsibilities of Businessman by Howard .R.Bowen. Bowen reasoned that there would be general Social and economic benefits that would accrue to Society, if business recognized broader social goals in its decisions.In India, many companies believe in CSR has an idea to give back something to the community and also to empower them so that they can lead a life devoid of poverty. Many firms especially from the Manufacturing and Services Industry have shown the way how Indian companies in their own way contribute their part in the nation building process. Many firms are looking at CSR as a strategy for the economic upliftment of the poor and the needy. Many believe the fruits of the Indian economic resurgence should be benefited by all and there is an opportunity which is to be tapped.
Tata Group was the front runner in taking care of the needs of the community. The stupendous economic growth seen in India poses a constraint on the resources and the effective way is to manage this is to work out a sustainable method where the environment is protected, the needs of the community is taken care off, employing the disabled and the school drop outs by enhancing their Skills, using Information and Communication Technology (ICT) to improve the standard of living of the community etc.
A strong case for the CSR activity is a company’s commitment to sound labor practices, environmental stewardship and good community relations plays an influential role in how it is perceived by the public. In a survey conducted in 20 developed countries, CSR related factors collectively accounted for 49% of company’s image compared with 35% for brand image and just 10% for financial management.

In India CSR has moved from the model of standalone projects to collaborations among public organizations, private firms, and civil society in addressing the developmental bottlenecks. These results-oriented interactions potentially improve the efficiency and effectiveness of the delivery mechanism by leveraging the expertise and technical excellence of the Indian Private sector. The concept of Public Private Partnership in Development projects is fastly gaining ground in India. CII have also been in the forefront of this unique partnership model.
Public sector organizations and Government Institutions in India are becoming increasingly reliant on collaboration with the private sector and civil society to strengthen innovative capacity and respond to the needs of the rural poor. New collaborative modalities include public-private partnerships, knowledge exchange networks, research consortia, technology joint ventures, public-private-non-governmental extension services and other partnership-based approaches.
Results have been encouraging and suggest that such collaborations are an important step in helping achieve the Millennium Development Goals, particularly the goals of eradicating extreme poverty and hunger and developing a global partnership for development.
The relation between CSR and Good Governance is closely related to the building up of economic competitiveness at the firm. Corporate Governance and CSR are two pillars which is the long run create a Sustainable and Ethical organization. Corporate Governance is a tool to add to the shareholder value while CSR adds value to the Stakeholders. The fundamentals of a strong organization is laid by sound Corporate Governance practices which invariably promotes fundamental values of Market economy and sustainable business practices which ultimately benefits the community. Institutions like CII have the task in hand to see corporate Governance becomes an Instrument for closer stakeholder engagement, greater transparency, equity and social responsibility. Sound Corporate Governance practices leads to Sustainable wealth.

Using these two strategies of CSR and Corporate Governance , the Private sector in India has a responsibility to create an enabling environment conducive for Inclusive growth by creating a high and a sustainable economic growth that would create employment opportunities and create an Inclusive society where the benefits of the economy growth reaches all section of the society.