COMMONLY USED BUSINESS AND ECONOMIC ABBREVIATIONS
AAGR Average Annual Growth Rate
AAR Average Annual Return
ABB Asean Braun Boveri
ADAG Anil Dhirubhai Ambani Group
ADB Asian Development Bank
ADR American Depository Receipts
AGM Annual General Meeting
APEC Asia Pacific Economic Cooperation
APM Administered Price Mechanism
ASCII American Standard Code for Information Interchange
ASSOCHAM Associated Chambers of Commerce and Industry
B2B Business to Business
B2C Business to Consumer
BIS Bank for International Settlements, Bureau of Indian Standards
BOP Balance of Payment
BPO Business Process Outsourcing
BRIC Brazil India Russia China
BSE Bombay Stock Exchange
CAGR Compounded Annual Growth Rate CEO Chief Executive Officer
CFO Chief Financial Officer
CII Confederation of Indian Industries
CIS Commonwealth of Independent States
CMIE Centre for Monitoring Indian Economy
CPI Consumer Price Index
CRISIL Credit Rating Information Services of India Ltd.
CRR Cash Reserve Ratio
CSO Central Static’s organization
DIAL Delhi International Airport Ltd.
EMI Equated Monthly Installment
EPS Earnings Per Share
EPZ Export Processing Zone
ESOP Employee Stock Ownership Plan
EXIM Bank Export and Import Bank
FDI Foreign Direct Investment
FEMA Foreign Exchange Management Act
FERA Foreign Exchange Regulation Act
FICCI Federation of Indian Chambers of Commerce and Industry
FII Foreign Institutional Investor
FIPB Foreign Investment Promotion Board GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GDR Global Depository Receipt
GNP Gross National Product
HDFC Housing Development Finance Corporation
HNWI High Net Worth Individuals
ICICI Industrial Credit and Investment Corporation of India
ICRA Investment Information and Credit Rating Agency of India
IDBI Industrial Development Bank of India
IFC Industrial Finance Corporation; International Finance Corporation
ILO International Labour Organization
IMF International Monetary Fund
IPCL Indian Petrochemical Corporation Limited
IPO Initial Public Offering
IRDA Insurance Regulation and Development Authority
IRR Internal Rate of Return
JV Joint Venture
KPI Key Performance Indicators
LIBOR London Inter-bank Offered Rate LIC Life Insurance Corporation of India
M1 Money supply with public
M2 M1 + time related deposits + savings deposits, money market funds.
M3 Aggregate monetary resources
MNC Multi National Corporation
MOU Memorandum of Understanding
NABARD National Bank of Agriculture and Rural Development
NAFTA North American Free Trade Agreement
NASDAQ National Association of Securities Dealers Automated Quotation
NASSCOM National Association of Software and Service Companies (of India)
NAV Net Asset Value
NCAER National Council of Applied Economic Search
NHAI National Highways Authority of India Limited
NPA Non Performing Assets
NRIs Non-Resident Indian
NRS National Readership Survey
NSE National Stock Exchange
NYSE New York Stock Exchange
ONGC Oil and Natural Gas Corporation OPEC Organisation of Petroleum Exporting Countries
OTCEI Over the Counter Exchange of India
PETA People for Ethical Treatment of Animals
PLR Prime Lending Rate
PPP Purchasing Power Parity
PSU Public Sector Undertaking
RBI Reserve Bank of India
RPI Retail Price Index
SAARC South Asian Association for Regional Coorporation
SAIL Steel Authority of India Limited
SEBI Securities and Exchange Board of India
SENSEX Sensitivity Index (of Share Price on BSE)
SEZ Special Economic Zone
SLR Statutory Liquidity Ratio
SME SME
SWOT Strengths, Weakness, Opportunities and Threats
TISCO Tata Iron and Steel Co.
UHNWI Ultra-high Networth Individual
UNCTAD United Nations Conference on Trade and Development
VAT Value Added Tax WEF World Economics Forum
WPI Whole Sale Price Index
YTM Yield to Maturity
TYPES OF BUSINESS ENTITIES
A business entity is an institution engaged in an economic activity, producing, selling and distributing goods/services with an aim of earning profits. Three important types of business entities are: 1. Sole Proprietorship 2. Partnership 3. Company
1. SOLE PROPRIETORSHIP When an individual takes the initiative to start an activity related to start a trade or commerce for his own economic benefit, it is known as sole proprietorship. A sole proprietor is a single person who owns, maintains and manages the whole show in the business. All the salaries and other overheads only form a part of the expenses of the sole proprietorship firm. After deducting all the expenses that relate to the business from total receipts of the business, what remains is the profit which may either be reinvested in the firm or could be withdrawn by the proprietor.
Characteristic of a Sole Proprietorship Business i. Single Ownership ii. Autonomy in Decision Making - The sole proprietor is the only decision maker and has complete autonomy in decision making.
Quick Decision Making – Since the firm is owned by a single person, the decision iii. making is prompt. iv. Unlimited Liability – In case of insolvency of the firm, the liability stands unlimited i.e. if the assets of the firm are not enough to pay off the business debts the personal assets of the proprietor are also attached to the firm’s property. v. Can be winded up without any prior legal notice. vi. No Separate Legal Entity – In case of sole proprietorship, the owner and the business are considered one and the same i.e. the actions taken by the proprietor are binding upon the firm and vice versa.
2. PARTNERSHIP An individual i.e. a sole proprietor may not be in a position to cope with the financial and managerial demands of the present business world. As a result, two or more individuals may decide to pool in their financial ad non-financial resources to start and carry on a business. The Indian partnership act defines partnership as, ―the partnership between persons who have agreed to share the profits of business carried on by all, or any one of them acting for all.‖
Characteristics of a Partnership Business i. An association of two or more persons. ii. An agreement entered into by all persons concerned. iii. Existence of business (and not just an agreement) . iv. The carrying on of business by all, or any one of them acting for all. v. Sharing of profits (or losses)of the business.
From the point of view, the main thing is that relations among the partners will be governed by mutual agreement. The agreement is known as The Partnership Deed which is to be properly stamped. It should be comprehensive to avoid disputes later on. It is usual therefore, to find the following clauses in a Partnership business: i. Name of the firm and the partnership business. ii. Commencement and duration of business iii. Amount of capital to be contributed by each partner iv. Rate of interest to be provided to each partner on his capital v. Disposal of profits and the ratio in which it would be done Amount to be allowed to each partner as drawings and the timings of such vi. drawings vii. Whether a partner will be allowed a salary viii. Any variation in the mutual rights and duties of the partners ix Method by which goodwill will be calculated x Procedure by which a partner may retire and the method of payment of his dues xi Treatment of losses arising out of the insolvency of a partner xii Preparation of accounts and their audit
3. COMPANY The word Company etymologically is a combination of two Latin words ‗Com‘ meaning ‗with or together‘ and ‗Pains‘ meaning ‗bread‘. Originally, it referred to a group of persons who took their meals together.
In business terminology, a company ―refers to a legal entity formed which has a separate legal entity from its members, and is ordinarily incorporated to undertake commercial business‖.
Put in simple words, a company is nothing but a group of persons that have come together and have contributed money for some common purpose and have incorporated themselves into a distinct legal entity in the form of a company for the same purpose. A company is formed and registered under the Companies Act, 1956.
Characteristics of a Company i. Separate Legal Entity - A company has a legal identity distinct from that of its members. In a court case, Salomon vs. Salomon & Co. Ltd, 1807, the entity of the company has been described as following “A company is a person, artificial, invisible, intangible and existing in the eyes of law”. ii. Limited Liability – In a company limited by shares, liability of the members is limited to the unpaid value of the shares whereas in a company limited by guarantee, liability of the members is limited to such amount as the members may undertake to contribute to the assets of the company, in the event of it being winded up. iii. Perpetual Succession – A company’s life does not depend upon the life of its members. Members of a company may come and go, may change from time to time, but that does not affect the continuity of the company. iv. Separate Property – Since the company has a separate legal entity, it also has a separate property of its own. No member can claim to be the owner of the company’s property till the existence of the company. v. Transferability of Shares – The shares in a company are freely transferable but subject to certain conditions, such that no shareholder is permanently or necessarily attached to the company. vi. Common Seal - A company is an artificial person and does not have a physical existence. A common seal is the official signature of the company under which it operates and carries out its activities. vii. Legal Entity – Since a company is a separate entity, distinguished from its owners, it has the capacity to sue and can be sued in its own name. viii. Separate Management – A company is owned by its shareholders but the management of a company is in the hands of its managerial force constituted of Board of Directors, employees etc. Thus the management of a company is separate from its owners. The shareholders may or may not constitute a company’s management. ix One Share-One Vote – The voting principle followed by a company is of the pattern where one share constitutes one vote. If a person holds 100 shares of a company, he has 100 eligible votes in that company.
Types of Companies
1. Public Company Public Company is a company in which shares are held collectively by the general public rather than a selected few individuals. Minimum number of members in a public company is seven, if members become less than seven, the company is no longer a public company but is rather a private company.
2. Private Company Private company means a company which by its articles of association, l Restricts the right of members to transfer its shares l Limits the number of its members to fifty. In determining this number of 50, employee- members and ex-employee members are not to be considered. l Prohibits an invitation to the public to subscribe to any shares in or the debentures of the company.
If a private company contravenes any of the aforesaid provisions, it ceases to be a private company and loses all the exemptions and privileges which a private company is entitled to. Minimum number of members in a private company is two. A private company does not need a separate certificate from the Registrar of Companies for the commencement of its business.
3. Companies deemed to be Public Limited Company A private company will be treated as a deemed public limited company under one of the following circumstances: l Where at least 25% of the paid up share capital of a private company is held by one or more body corporates, the private company shall automatically become a public company on and from the date on which the aforesaid percentage is so held. l Where the annual average turnover of the private company during the period of three consecutive financial years is not less than Rs 25 crores, the private company shall be, irrespective of its paid up share capital, deemed a public company. l Where not less than 25% of the paid up capital of a public limited company is held by the private company, then the private company shall become a public company on and from the date on which the aforesaid percentage is so held. l Where a private company accepts deposits from public, after an invitation is made by advertisement or renews deposits from the public (other than from its members or directors or their relatives), such company shall become public company on and from the date when such acceptance or renewal is first made.
4. Limited and Unlimited Companies Companies may be limited, limited by shares or limited by guarantee. a) Company limited by shares - In this case, the liability of the members is limited to the amount of uncalled share capital. No member of the company limited by the shares can be called upon to pay more than the face value of shares or so much of it as has remained unpaid. The members of limited companies have no liability in case of fully paid up shares. b) Company limited by the guarantee - A company limited by guarantee is a registered company having the liability of its members limited by its Memorandum of Association (MoA) to such amount as the members may respectively thereby undertake to pay if necessary on liquidation of the company. The liability of the members to pay the guaranteed amount arises only when the company has gone into liquidation and not when it is a going concern. c) Unlimited Company: The liability of the members of an unlimited company is unlimited. Therefore their liability is similar to that of the liability of the partners in a partnership firm.
5. Section 25 Company Under the Companies Act, 1956, the name of a public limited company must end with the word ‗Limited‘ and the name of a private limited company must end with the word ‗Private Limited‘. However, under Section 25, the Central Government may allow companies to remove the word ―Limited / Private Limited‖ from the name if any of the following conditions are met by: l The company is formed for promoting commerce, science, art, religion, charity or other socially useful objectives. l The company does not intend to pay dividend to its members but apply its profits and other income in promotion of its objectives.
6. Holding and Subsidiary Companies A company shall be deemed to be a subsidiary of another company if: l That other company controls the composition of its board of directors l That other company holds more than half (>50%) in face value of its equity share capital.
The control of the composition of the Board of Directors of the company means that the holding company has the power at its discretion, to appoint or remove all or majority of directors of the subsidiary company without consent or concurrence of any other person.
7. Government Company A Government Company is the one in which 51% or more is held either by the central government or by the state government or is jointly held by the central and the state government. All the decisions pertaining to its management and operations are taken by the government.
8. Foreign Company A company that has been incorporated outside India, under the law of some other country, is registered in that country and has set up its business in India is called a Foreign Company GLOBAL COMPANIES
FT 2011 Rankings
Global rank 2011 Market value Global rank 2010 Company Country Sector $m
1 2 Exxon Mobil US Oil & gas producers 417,166.7
2 1 PetroChina China Oil & gas producers 326,199.2
Technology 3 5 Apple US hardware & 321,072.1 equipment
Industrial & Commercial 4 4 China Banks 251,078.1 Bank of China
5 13 Petrobras Brazil Oil & gas producers 247,417.6
6 6 BHP Billiton Australia/UK Mining 247,079.5
China 7 11 Construction China Banks 232,608.6 Bank
Royal Dutch 8 19 UK Oil & gas producers 228,128.7 Shell
9 25 Chevron US Oil & gas producers 215,780.6
10 3 Microsoft US Software & 213,336.4 computer services
General 11 9 US General industrials 212,917.8 Electric
Berkshire 12 8 US Nonlife insurance 206,671.3 Hathaway
13 12 Nestle Switzerland Food producers 199,406.6
Software & 14 21 IBM US 198,869.8 computer services
15 33 Gazprom Russia Oil & gas producers 190,829.1
China Mobile 16 10 Hong Kong 184,842.3 Mobile telecommunications
JP Morgan 17 17 US Banks 183,639.7 Chase
18 20 HSBC UK Banks 181,936.9
Wal-Mart 19 7 US General retailers 181,716.7 Stores
Fixed line 20 24 AT&T US 180,948.8 telecommunications
For complete list of companies, visit http://media.ft.com/cms/33558890-98d4-11e0-bd66-00144feab49a.pdf Brand/Company Punchlines
Brand/Company Punchline
1 AKAI Land Of Rising Technology
2 ACCENTURE Innovation Delivered
3 AIR DECCAN Simplifly
4 AIR INDIA Moving India Forward 5 AIR SAHARA Emotionally Yours
6 AIRTEL EXPRESS Express Yourself
7 ALLEN SOLLY Friday Dressing
8 ALLIANZ INSURANCE The Power On Your Side
9 APPLE COMPUTERS Think Different
10 BAJAJ AUTO Inspiring Confidence
11 BAJAJ PULSAR Born In A Gym, Not In A Studio
12 BAJAJ SPIRIT The College Bike
13 BLUE STAR May Your Theatre Always Be House Full
14 BLUESTARAC Breathe Easy
15 BOURNVITA Balanced Nutrition.Great Taste
16 BROOKE BOND Cheers Your Senses
17 BSNL Connecting India
18 BUSINESS STANDARD When You're Sure
19 BUSINESSWORLD Magazine Of The New Economy
20 C A That Manages E-Business
21 CHOLAMANDALAM INSURANCE Enter A Better Life
22 CITIBANK The City Never Sleeps
23 CLUB MAHINDRA HOLIDAYS Holidays For A Lifetime
24 CROCODILE Tough Guys, Dress Easy
25 CROMPTON GREAVES Everyday Solutions 26 D’DMAS Art Of Beauty
27 DHL We Move The World
28 DHL We Make Importing Smooth
29 DOORDARSHAN Satyam Sivam Sundaram
30 ELECTROLUX India Makes Life A Little Easier
31 ENERGIZER Keep Going
32 ESSAR STEEL 24 Carat Steel
33 FED-EX The World On Time
34 FORD MONDEO Redefined Aggression
35 FORD MOTORS Built For The Road Ahead
36 GODREJ LOCKS Peace Of Mind.Guaranteed
37 GRAVIERA SUITINGS The Man Of Substance
38 GUCCI Quality Is Remembered Long After The Price Is Forgotten
39 HAIER Inspired Living
40 HARLEY-DAVIDSON If You Don't Have To Answer To Anyone, What Would You Do
41 HARROD'S RETAILER, London ENTER A DIFFERENT WORLD
42 HERO HONDA CBZ Motorcycling Unplugged
43 HERO HONDA PASSION Born In A Studio, Not In A Factory
44 HINDUSTAN TIMES Let There Be Light
45 HITACHI Inspire The Next 46 HONDA THE The Power Of Dreams
47 HSBC World's Local Bank
48 HUGHES SOFTWARE Think Skywards
49 HYUNDAI ELANTRA Play A Bigger Game
50 HYUNDAI'S NEW AD Drive Your Way
51 JOBSAHEAD.COM Fill In Your Ambition
52 JOHNNIE WALKER WHISKEY Keep Walking
53 KINGFISHER AIRLINES Fly The Good Times
54 KODAK You Press The Button And We Do The Rest
55 LACOSTE Because What You Are
56 LG Expand Your Life
57 LG AC Breathe Healthy
58 LUFTHANSA There Is No Better Way To Fly
59 MARUTI SUZUKI Count On Us
60 NIKON At The Heart Of The Image
61 NOKIA Connecting People
62 OBC Where Every Individual Is Committed
63 OCM Be Somebody
64 ONIDA Neighbor’s Envy, Owner’s Pride
65 PAGALGUY.COM Insanely Different
66 PAI INTERNATIONAL A World Of Home Appliances 67 PANTALOONS Where India Shops
68 PARRYWARE Sparkling Clean Glamour Rooms
69 PARX (RAYMOND’S PRODUCT) Catch Up With Life
70 POWER (FUEL WITH Unleash The Power Within ENERGYBOOSTERS FROM HPCL)
71 PROFESSIONAL TUTORIALS Success Simplified
72 PUNJAB NATIONAL BANK The Name You Can Bank Upon
73 RAYMOND The Complete Man
74 REID AND TAYLOR Bond With The Best
75 SAMSONITE Because You Earned Your Wings
76 SBI With You -All The Way
77 SINGAPORE AIRLINES A Great Way To Fly
78 SPICE JET Flying For Everyone
79 TALLY Power Of Simplicity
80 TATA Improving The Quality Of Life
81 TATA Empowering People
82 TATA INDICA Spoil Yourself
83 TATA INDICOM Talk As You Pay, Pay As You Talk-
84 THAI AIRWAYS Smooth As Silk
85 TIMES OF INDIA Let Truth Prevail
86 TOYOTA Touch The Perfection
87 TRUMP (MTNL) The Easy Way To Stay In Touch 88 UNION BANK OF INDIA Good People To Bank With
89 VIRGINIA SLIM CIGARETTES You've Come A Long Way Baby
90 VOLKSWAGEN Think Small
91 VSNL Gateway Of India To The World
92 WILLS LIFESTYLE Enjoy The Change
93 XEROX The Document Company
94 HONDA DIO From India To The World.And To You
INDIAN COMPANIES AND LEADERS
Turn 2009 Rank Company/City %CHG Industry Over 2010
Indian Oil 1 1 Corporation Ltd., 257559.91 -11.54 Refineries Delhi/NCR
Reliance Industries 2 2 214532.00 39.77 Diversified Ltd., Mumbai
State Bank of India, 6 3 133851.83 18.36 Finance - Banks - Public Sector Mumbai
Bharat Petroleum 4 4 Corporation Ltd., 126181.92 -8.56 Refineries Mumbai
Hindustan Petroleum 5 5 Corporation Ltd., 113304.34 -12.90 Refineries Mumbai
Oil And Natural Gas 7 6 Corporation Ltd., 107065.85 16.76 Oil Drilling And Exploration Delhi/NCR Tata Steel Ltd., 3 7 103705.83 -29.78 Steel Kolkata
Tata Motors Ltd., 8 8 94481.34 31.79 Auto - LCVs/HCVs Mumbai
Hindalco Industries 9 9 61044.82 -9.94 Aluminium Ltd., Mumbai
ICICI Bank Ltd., 10 10 59599.77 -7.38 Finance - Banks - Private Sector Mumbai
11 11 NTPC Ltd., Delhi/NCR 51203.35 11.16 Power - Generation/Distribution
Larsen & Toubro 13 12 46789.37 11.51 Diversified Ltd., Mumbai
Steel Authority of 12 13 India (SAIL) Ltd., 43291.45 -6.94 Steel Delhi/NCR
Bharti Airtel Ltd., 16 14 41951.93 11.86 Telecommunications - Service Delhi/NCR
Essar Oil Ltd., 15 15 36720.00 -2.66 Refineries Jamnagar
Bharat Heavy 18 16 Electricals Ltd., 34703.28 23.92 Engineering - Heavy Delhi/NCR
Mangalore Refinery 14 17 And Petrochemicals 32568.08 -15.05 Refineries Ltd., Mangalore
Mahindra & Mahindra 20 18 31957.83 18.67 Auto - Cars & Jeeps Ltd., Mumbai
Maruti Suzuki India 28 19 30704.57 40.97 Auto - Cars & Jeeps Ltd., Delhi/NCR
Tata Consultancy 19 20 Services Ltd., 30300.99 5.97 Computers - Software Mumbai For complete list of companies and Details, visit http://economictimes.indiatimes.com/et500list.cms Electronic Media
I. Major Indian Production Houses
Dharma Productions is a film production company founded by Late Yash Johar in 1976. The first film to be produced by the company was Dostana in 1980.
Headquarter Dharma Productions is based in Mumbai.
Present Management With the release of Kuchh Kuchh Hota Hai in 1998, Yash Johar‘s son Karan Johar made his directorial debut. Presently he is the Managing Director and his mother Hiroo Johar is the Chairperson of the company.
Major Productions Some other films produced by the company include: l Muqaddar Ka Faisla (1987) l Agneepath (1990) l Gumrah (1993) l Kuch Kuch Hota Hai (1998) l Kabhi Khushi Kabhi Gham (2001) l Kal Ho Naa Ho (2003) l Kaal (2005) l Kabhi Alvida Naa Kehna (2006) 2. Balaji Telefilms
Balaji Telefilms is one of the leading production houses of India. It is run by the Kapoor family, withJeetendra as its Chairman. The production house is mainly into producing television serials. Headquarter Balaji Telefilms is based in Mumbai.
Present Management Ms. Shobha Kapoor is the Managing Director and CEO of the company while her daughter Ekta Kapoor is the Creative Head of the company.
Major Productions Some of the major serials produced by Balaji Telefilms are: l Kahaani Ghar Ghar Kii l Kahiin To Hoga l Karam Apnaa Apnaa l Kasamh Se l Kasautii Zindagi Kay l Kyunki Saas Bhi Kabhi Bahu Thi
3. United Television (UTV)
United Television is a leading media and entertainment company of India with offices in South East Asia, US and UK. UTV is into producing content for television, motion pictures and broadcasting. The company was established 18 years ago by Ronnie Screwvala in 1990. The company has 4 subsidiaries: l United Entertainment Solutions Ltd (India). l UTV Communication (USA) LLC l UTV Communication (UK) Ltd. l UTV Communication (Mauritius) Ltd.
Headquarter UTV is headquartered at Mumbai.
Present Management Mr. Ronnie Screwvala is the CEO of UTV.
4. Adlabs
Adlabs is the largest entertainment company in India. Adlabs was founded by Manmohan Shetty in 1978 along with Vasanji Mamania as a small film processing unit catering to ad films. In 1989, the firm entered mainstream cinema processing. Today, the company processes more them 70 percent of all Hindi films produced in India. In June 2005, Anil Ambani who owned Reliance-Anil Dhirubhai Ambani Group (ADAG) became a majority stakeholder (51%) in Adlabs. In 2006, Adlabs had also entered into television content creation by becoming a majority stakeholder in Siddhartha Basu‘s Synergy Communication. Adlabs cinema is also one of the largest motion picture exhibitors in India.
Headquarter Adlabs is headquartered at Mumbai.
Present Management Mr. Manmohan Shetty is the Chairman and Managing Director of the company and his daughter Ms. Pooja Shetty is the whole-time Director of the company.
5. Sahara One Media and Entertainment Ltd (SOMEL)
Sahara One Media and Entertainment Limited (SOMEL) is the media company of the Sahara India Parivar. It operates two television channels ―Sahara One‖ a general entertainment channel and ―Filmy‖ (2006 Feb) a Hindi movie channel.
Sahara One Motion pictures is one of India‘s largest movie production houses in the business of producing, marketing, and distributing motion pictures in Hindi and other Indian regional languages.
Headquarter Sahara One Media and Entertainment Ltd. is headquartered at Mumbai.
Present Management Mr. Subrata Roy is the Managing Worker and Chairman of the Sahara One Media and Entertainment Ltd.
Yash Raj Films is a multi–product company set up by Yash Chopra in 1970. Apart from producing motion pictures in Hindi language, the company is also in the business of distributing films. It has also launched a music label by the name ―Yash Raj Music‖ and also produces DVD‘s, VCD‘s and videos under the label ―Yash Raj Films Home Entertainment‖. In 2001, Yash Raj films became the first Indian production company to create a Corporate Structure. In 2004, an International film magazine Hollywood Reporter, rated Yash Raj Films as the 27th Biggest Film Distribution House in the World and the largest production company as in 2006. Recently it has started a new state-of-the-art studio at Mumbai.
Headquarter Yash Raj films is based in Mumbai.
Present Management The present Chairman of the company is Yash Chopra.
Major Productions of Yashraj Productions l Kabhi Kabhi (1976) l Silsila (1981) l Lamhe (1991) l Dilwale Dulhaiya Le Jayenge (1995) l Dil to Pagal Hai (1997) l Mohabbatein (2000) l Saathiya (2002) l Kabul Express (2006) l Chak De! India (2007)
II. Major Internet Companies
1. Google Inc.
Google was started by Sergey Brin and Larry Page as a research project while undergoing their Ph.D. at Stanford University, California. The search engine was initially nicknamed ―Back Rub‖. The domain name google.com was registered on Sep 15, 1997. The company has its office in Menlo Park, California. The total initial investment raised for the new company was US $1.1 million, including a cheque of $ 1 million from Andy Bechtolscheim, one of the founders of Sun Microsystems.
Headquarter The head office of Google inc. ―The Googleplex‖ is situated at Mountain View, California.
Present Management Eric E. Schmidt – CEO/Chairman Sergey Brin – President, Technology Larry Page – President, Products
Products and Services offered The major product offerings of Google include the Google Search Engine, Gmail, Google Calendar, Google Talk, Google Docs and Spreadsheets, Jot Spot, Adwords, Google Notebook, Orkut, google Groups, Picassa-Web albums, Google Earth, Google Maps and You Tube.
2. Yahoo! Inc
Yahoo! Inc was founded by David Filo and Jerry Yang, Ph.D. students of electrical engineering at Stanford University, in January 1995. The website was initially named ‗Jerry and David‘s guide to the world wide web‘, but eventually got the name ‗Yahoo! – Yet another hierarchical officious oracle‘.
Headquarter The present headquarter of Yahoo! Inc is at Sunnyvale, California, USA
Present Management Roy J. Bostock – Chairman Carol Bartz – CEO David Filo – Co-Founder
Products and Services offered The major product/service offering of Yahoo include - Ask Yahoo!, Blogs, Flickr – a public photo album for users, Geocities – a web hosting service, My Yahoo – personalized homepage for users, Yahoo 360° - social networking domain for users, Yahoo Education, Yahoo Finance, Yahoo Games, Yahoo Gallery, Yahoo Greetings, Yahoo Groups, Yahoo Mail, Yahoo Messages, Yahoo Search and Yahoo Video.
3. eBay Inc.
The online auction site, eBay was founded in San Jose, California on September 3, 1995 by computer programmer Pierre Omidyar as auction web. The first item sold by the website was a broken laser pointer for which Omidyar earned $14.83. The name of the service was changed from auction web to eBay in September 1997.
Headquarter The company, eBay Inc is headquartered at San Jose, California.
Present Management Pierre Omidyar – Chairman John Donahoe – CEO
Services Offered eBay is an online auction portal having a varied range of products for sale on the portal. Some of the items sold on the website include Apparel and Accessories, Books and Magazine, Camera and Optics, Cars and Bikes etc.
4. Amazon.com Inc.
Amazon.com Inc is an American e-commerce company. The company was founded by Jeff Bezos in 1994. Amazon.com offers services for access to its catalogue as well as for integration with retailers. Amazon.com provides search engine services to the website. Amazon.com went live on April 14, 2004. Its results derive from Windows Live Search, supplemented by Alexa (a subsidiary of Amazon.com) and other engines for specific search types.
Headquarter The company is presently headquartered at Seattle, Washington, USA
Present Management Jeffrey Bezos – Chairman, CEO and President
Products and Services Offered Amazon.com began as an online bookstore, but it soon diversified into other product areas which includes DVD‘s, CD‘s, computer software, videogames, electronics, apparels, furniture, and food. It also facilitates integration with retailers like Target and Marks & Spencer. Kindle launch in Novemeber 2007 is an ebook reader and amazon mp3 was started in January 2008
5. Microsoft Corporation Inc.
Microsoft Corporation was founded by two students from Harvard University, Bill Gates and Paul Allen on April 4, 1975. The name became a registered trademark on November 26, 1976. The company started its operations from Albuquerque, New Mexico. Its first international office was opened in Japan on November 1, 1978. The company underwent a restructuring on June 25, 1981 to become an incorporated business in the state of Washington. Kindle – Nov 2007 – ebook reader Amazon MP3 – Jan 08
Headquarters Microsoft Inc. is headquartered at Redmond, Washington, USA
Present Management Bill Gates – Co-founder and Executive Chairman Steve Ballmer – CEO Ray Ozzie – Chief software Architect Craig Mundie – (CRSO)
Products and Services offered Some of the major product/service offerings of Microsoft include Ultra Mobile PC, Windows operating system MS Office, Windows Series System, Developer Tools, Xbox 360 and MSN, Business Solutions Zune.
6. AOL LLC.
Formerly America Online, Inc., is an American global Internet services and media company formerly operated by Time Warner and headquartered in New York, New York. It has franchised its services to companies in several nations around the world, or set up international versions of its services.
Headquarters New York, USA
Present Management Tim Armstrong, CEO
Products and Services ICQ, AIM, Compuserve, Goowy, Netscape, Winamp, Weblogs, INC. and etc. First chatroom base text role playing game Black Bayou (2004).
III. Major Television Channels
Company Owner
NDTV Prannoy Roy
Sony Entertainment Kunal Dasgupta (CEO) Television
Star Group Uday Shankar (CEO)
Synergy Communication Siddharths Basu
Network Eighteen Raghav Behl (MD)
TV Today Group Living Media
UTV Ronnie Screwvala (CEO)
Zee Network Subhash Chandra
IV. Major Radio Stations
Station Owner
Radio City Star Group
Radio Mirchi Bennett Coleman & Co. Radio One Mid-Day
Big FM Adlabs
Value Labs, Malaysian Red FM media group – Astro & NDTV
Radio Tadka (95 FM) Rajasthan Patrika
Fever 104 FM Fever 104 FM
PUBLIC SECTOR COMPANIES
A public company is one in which 51 per cent or more stake is owned by the government. Public sector companies can be broadly classified into :
I. Navratna Companies
The Government of India had in 1997 identified 11 public sector undertakings as Navratna l companies or crown jewels. l The Board of Directors of those companies can approve all decisions relating to capital expenditure and no separate clearance is required from the government. l In case of equity acquisitions in a joint venture company, a Navratna company can take an independent decision for investments up to Rs. 1,000 crore. But the investment is subject to the condition that the total investment in all such joint ventures is below 30% of the net worth of the Navratna Company.
At present there are 9 Navratna companies as IPCL & VSNL have been privatized by the l government. l In addition to the Navratna companies, the government of India has created another category called Mini - Ratna. The Mini-Ratna designation applies to PSU’s that have made profits continuously for the last 3 years or have earned a net profit of Rs. 30 crores or more in three years. 1. Bharat Heavy Electricals Limited (BHEL)
BHEL is the largest engineering and manufacturing enterprise in India, in the energy related l infrastructure sector today. l It was established more than 40 years ago in 1962. l BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz. power generation & transmission, transportation, telecommunication and renewable energy. l BHEL has acquired certifications for quality management systems (ISO 9001), environmental management systems (ISO 14001) and Occupational Health and Safety Management Systems (OHSMS) 18001).
Headquarter Bharat Heavy Electrical Ltd. (BHEL) is headquartered at New Delhi.
Present Management Mr.B.P.Rao is the present Chairman and Managing Director (CMD) of BHEL. Products and Services Offered BHEL offers a wide range of products for: l power sector l industrial production l transmission and transportation sectors l non-conventional energy sources l R & D products
The company offers services in l Power Generation Systems l transmission systems l transportation systems l industrial systems.
2. Mahanagar Telephone Nigam Limited (MTNL)
l The Mahanagar Telephone Nigam Limited (MTNL) was established on 1st of April, 1986. l The company was set up to take over the management, control and operation of Delhi Telephone District and Mumbai Telephone District. l It is a public limited company largely owned by the Government of India (GOI).
Headquarters Mahanagar Telephone Nigam Limited (MTNL) is headquartered at New Delhi, India.
Present Management Mr.Kuldip Singh is the Chairman & Managing Director of MTNL.
Services Offered Mahanagar Telephone Nigam Limited (MTNL) provides fixed line telephone services, cellular services – both GSM & WLL and internet services through both Dial -Up & Digital Subscriber Loop (DSL).
3. Hindustan Petroleum Corporation Limited (HPCL)
l HPCL came into existence in 1974 after the takeover and merger of the erstwhile Esso and Lube India undertaking by the government.
In 1976, Caltex Oil Refinery India Ltd. was taken over by the government and was l subsequently merged with HPCL in 1978.
In 1979, Kosan Gas Company was taken over and merged with HPCL and a single entity HPCL l came into existence.
Today, HPCL is the second largest oil company in India and is one of the largest PSU l companies in terms of revenue. l It is also one of the Fortune 500 companies of the world, ranked at 290th position.
Headquarters Hindustan Petroleum Corporation Limited (HPCL) is headquartered at Mumbai.
Present Management Mr. S.Roy.Choudhury is the present Chairman and MD.
Products and Services Offered The product/service offerings by the company include l Refined oil for industrial use and export l LPG for domestic consumption offered through its subsidiary HP gas l Lubricants for domestic consumption, industrial consumption and exports
Bulk fuels and specialties for industrial consumers like power plants, chemical companies, l fertilizer companies and shipping companies l Aviation fuel and Lubricants l Products and services for retail customers which it markets through Club HP outlets
4. Bharat Petroleum Corporation Limited (BPCL)
l Bharat Petroleum Corporation Limited (BPCL) was founded in 1976 by the Government of India, when it acquired the Burma Shell group of companies. It was on 1st August, 1977, that the company was renamed Bharat Petroleum Corporation Limited.
BPCL was also the first refinery to process newly found indigenous crude in the country (at l Bombay High.). l BPCL is one of the Fortune 500 companies of the world currently ranked at 325th position.
Headquarters Bharat Petroleum Corporation Limited (BPCL) is headquartered at Mumbai.
Present Management Mr. R.K.Singh is the present Chairman and MD of BPCL. Products and Services Offered The product/service offerings of the company include l Refined oil for industry and export l LPG for domestic consumption offered through its subsidiary Bharat Gas l Lubricants for domestic consumption, industrial consumption and exports. l Fuels and solvents, industrial services and e-business facilities for commercial units. l Aviation fuel and lubricants.
Retail services - at petrol pumps, speed fuels, in & out stores, petro – card, smart fleet card l and ‘Pure for Sure’
5. GAIL (India) Limited
l GAIL (India) ltd. (Erstwhile Gas Authority of India Ltd.), India’s principal gas transmission and Marketing Company, was established by the government of India on August 16, 1984. l The company entered into LPG business in February 1991. l It began city gas distribution in Delhi in 1997 by setting up the first CNG station. l GAIL commissioned its petrochemicals plant in March 1999 at Pata.
Headquarter GAIL (India) Ltd. is headquartered at New Delhi.
Present Management Mr. B.C.Tripathi is the present Chairman and Managing Director of GAIL (India) Ltd.
Product and Services Offered Apart from marketing of l gas l city gas l CNG
GAIL (India) Ltd. has presence in various other product areas. It offers l petrochemical products l telecom services l Liquefied Natural Gas (LNG) l power l exploration and production of gas and holds participatory interest in 12 exploration blocks in the country. 6. Indian Oil Corporation Limited (IOCL)
l Indian Oil Corporation Limited was founded in 1964 through a merger of Indian Oil Company Ltd. and Indian Refineries Ltd. l In 1965, Gujarat Refinery was inaugurated. l In 1967, Haldia Barauni Pipeline was commissioned. l In 1969, the company undertook the marketing of Madras Refinery Products. ‘Servo’ the first indigenous lubricant was launched in 1972. l In 1995, Kandla – Bhatinda Pipeline started operations and IOCL launched Indane Home Shoppe. l In 1997 the company entered into LNG business through a JV company, Petronet LNG. l IOCL, in 2000 became the first Indian company to achieve the turnover of Rs. 1,00,000 crore. l In 2001, Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) were acquired by the company. l In 2003, Lanka IOC Pvt. Ltd. (LIOC) was launched in Sri Lanka.
Headquarter Indian Oil Corporation Limited (IOCL) is headquartered at New Delhi.
Present Management Mr. R.S.Butola is the present chairman and MD of IOCL.
Products and Services Offered The product/service offerings of the company include: l Refined oil for industrial use and export purposes. l LPG for domestic consumption offered by its subsidiary Indane Gas. l Lubricants for domestic consumption, industrial consumption and export. l Aviation fuel and lubricants. l Auto gas – company’s LPG variant which has been launched in selected markets in India.
Retail services - at petrol pumps, Xtrapower products for customers and ‘Swagat’ highway l flagship retail outlets.
7. Oil and Natural Gas Corporation (ONGC)
l In 1955, the Government of India decided to develop oil and natural gas resources in various areas of the country. With this objective, an Oil and Natural Gas Directorate was set up. l In August 1956, the directorate was raised to the state of Commission with enhanced power, but was still under the direct control of the government. l In October 1959, the commission was converted into a statutory body by an Act of the Indian parliament and ONGC was formed. l Since its formation, ONGC has carried out its activities in various parts of the country and also started its overseas operations. The company went offshore in early 70’s when it discovered an oil field at Bombay High. l In 1994, ONGC was re-organised as a limited company under the Company Act of 1956. l In 2002 ONGC purchased Mangalore Refinery Pvt. Ltd. (MRPL) from AV Birla group. It also entered the global market in 2003 through its subsidiary ONGC Videsh Limited (OVL). l The company has also made investments in Vietnam, Sakhlin (Russia) and Sudan and earned its first revenue from the hydrocarbon business in Vietnam. l ONGC is currently ranked 369th on the fortune 500 list.
Headquarter ONGC is headquartered in Dehradun. Present Management Mr. A.K.Hazarika is the Chairman and Managing Director of the company.
Products and Services offered l ONGC’s diverse activities are handled through the holding company ONGC India and its two subsidiaries ONGC Videsh Limited (OVL) and Mangalore Refinery Pvt. Ltd (MRPL).
ONGC India offers a diversified range of petroleum by-products used mainly for industrial l purpose. l ONGC Videsh Llimited (OVL), the company’s overseas arm is engaged is exploration and production activities outside the territorial boundaries of the country. l The company’s subsidiary MRPL produces refined petroleum and by-products used by industrial units and for export purposes.
8. Bharat Sanchar Nigam Limited (BSNL)
l Bharat Sanchar Nigam Ltd was formed in October, 2000.
It is the largest telecommunication company in India providing comprehensive range of l telecom services.
BSNL is the largest fixed line service provider in the country having operations across India l except Mumbai and Delhi.
Headquarters BSNL is headquartered in New Delhi
Present Management Mr. R.K.Upadhyay is the present Chairman and Managing Director of the company.
Products/Services Offered BSNL offers a wide range of service to its customers. These include: l Fixed line telephony service l Internet service, both Dial-up and Broadband l Message carrier services l VSAT and VOIP services l Intelligent Network (I.N) services
9. Steel Authority of India Limited (SAIL)
Steel Authority of India Limited is the leading steel-making company in India. Incorporated l on Jan 23, 1973.
Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL is a l fully integrated iron and steel maker.
SAIL produces iron and steel at 5 steel plants located at Bhilai, Bokaro, Durgapur, Rourkela l and Asansol (West Bengal). l SAIL featured in 2005 list of Forbes Global 2000 ranked at 764th position.
Headquarter SAIL is headquartered in New Delhi
Present Management Mr. Chandrashekhar Verma is the present Chairman of the company
Products offered A broad range of steel products is offered by the company. These include: l Hot and cold - rolled sheets and coils l Galvanised sheets. l Electrical sheets and structures. l Railway product. l Iron plates, bars and rods. l Stainless steel and other steel alloys.
The company clientele include construction companies, engineering companies, power companies, engineering companies, railways industry, automobile companies, defense industries and importers from other countries.
II. Other Important Public Sector Undertaking‘s (PSU‘s)
Indian Railway is owned by the GOI. It is one of the largest and busiest rail networks in the l world, transporting over six billion of passengers and freight worth INR 750 million annually.
Railways were introduced in India in 16th April 1853 when the first railway line between l Bombay and Thane became operational.
By the year 1947, there were forty-two rail systems in the country. All the units were l nationalised into a single unit, Indian Railway in 1951, making it one of the largest rail networks in the world.
Presently, both the long distance and suburban rail systems in India are operated by the l Indian Railways. l The Indian rail network is spread over a distance of 63,140 km, operational on broad metre gauge and narrow metre gauge (The Calcutta Metro is also owned and operated by Indian Railways).
Railway Zones
For administrative purposes, Indian railways are divided into sixteen functional zones
These are:
Zone Headquarter
Northern Railway Delhi
North Eastern Railway Gorakhpur
Eastern Railway Maligaon
South Eastern Railway Kolkata
South Central Railway Secunderabad
Southern Railway Chennai
Central Railway Mumbai
Western Railway Mumbai
South Western Railway Hubli
North Western Railway Jaipur
West Central Railway Jabalpur
North Central Railway Allahabad
South East Control Railway Bilaspur
East Coast Railway Bhubaneswar
East Control Railway Hajipur
Railway Production Units In addition to its operation of trains, Indian Railway also carries out its own production services. It owns six production units each headed by General Manager who reports to the Railways Board. These production units are: l Chittaranjan Locomotive Works at Chittaranjan, West Bengal l Diesel Locomotive factory at Varanasi, Uttar Pradesh l Integral coach factory at Perambur, Tamil Nadu. l Rail coach factory at Kapurthala, Punjab l Rail wheel factory at Yelahanka (near Bangalore) Karnataka. l Diesel modernization works at Patiala, Punjab.
Notable Achievement of Indian Railways Some of the notable achievements of Indian railways are: l The Darjeeling Himalayan Railways, Nilgiri Mountain Railway and Chatrapati Shivaji Terminus (railway station in Mumbai) are all world heritage sites accredited by UNESCO.
Samjhauta Express and Thar express are two trains run by Indian Railway that connect India and l Pakistan. l ‘Lifeline Express’ is a hospital on wheels providing healthcare facilities to people in rural areas. l ‘Kharagpur’ railway station has the largest railway platform in the World, while ‘ib’ is the shortest name for a station and longest name is Sri Venkatanarasimharajauvaripeta.
Present Management Presently, Ms. Mamata Banerjee is the Union Railway Minister of the Government of India. Indian Railway also enjoys the distinction of being the world‘s largest employer with more than 16 million employees. Mr. S.S.Khurana is the present Chairman of Indian Railways.
2. Air India
l Air India was originally founded as Tata Airlines in 1932, a subsidiary of Tata Sons Ltd by J.R.D. Tata.
In 1946, government of India purchased a majority stake in Tata Airlines and the company l was renamed Air-India International.
Air-India International was registered on March 8, 1948 and inaugurated its international l service on June 8, 1948 with a weekly flight between Mumbai and London. The word ‘International’ was dropped by the company in 1962. l In 1994, the airline was renamed as Air India Limited. l Air India has recently started with “Air India Express”, the low cost variant of Air India.
Indian Airlines since 2007 has been amalgamated to be a part of Air India. Air India is now an l amalgamation of Air India Limited and Indian Airlines.
Headquarter The company is headquartered at Mumbai.
Present Management Mr. Aravind Jadhav is the present Chairman & MD of Air India. Fleet and Network At present Air India has 45 aircrafts which include Boeing 747‘s, Airbus 310‘s, Airbus 300‘s and Boeing 777‘s. The airline operates its flight on all major international air routes and on some important domestic air routes. The airline at present covers 42 destinations - 29 international air routes and 13 domestic air routes.
3. Hindustan Aeronautics Limited (HAL)
l Hindustan Aeronautics Limited (HAL) is a major aerospace company under the Ministry of Defence. It was established as Hindustan Aircraft in 1940 by Walchand Hirachand, backed by the Kingdom of Mysore to produce aircrafts in the country.
In April 1942, British government bought out the stake of Walchand Hirachand and some l other promoters. The buyout helped the Britishers greatly during the second world war.
The kingdom of Mysore however, did not sell its stake in the company. Thus, the company was l nationalized in 1944. The company acquired its present name in 1964. l In 2006, the company entered into a joint venture with Samtel for developing and manufacturing Avionics Display system.
This is the first public – private partnership in the area of defence avionics (aviation l communication). l The first military aircraft constructed in South Asia was built by HAL.
Headquarters HAL is headquartered at Bangalore, Karnataka.
Present Management Mr. Ashok Nayak is the present Chairman of HAL.
Products Offered Hindustan Aeronautics Limited is currently involved in the l design l assembly of aircrafts l jet engines l helicopters and their components and spares parts l communication and navigation equipment
HAL has collaboration with Indian Space Research Organization (ISRO) to produce aerospace l equipment for the latter.
List of Maharatna, Navratna and Miniratna CPSEs As per available information(as on 20th July, 2011)
Maharatna CPSEs
1. Coal India Limited 2. Indian Oil Corporation Limited 3. NTPC Limited 4. Oil & Natural Gas Corporation Limited 5. Steel Authority of India Limited
Navratna CPSEs
1. Bharat Electronics Limited 2. Bharat Heavy Electrical Limited 3. Bharat Petroleum Corporation Limited 4. GAIL (India) Limited 5. Hindustan Aeronautics Limited 6. Hindustan Petroleum Corporation Limited 7. Mahanagar Telephone Nigam Limited 8. National Aluminium Company Limited 9. NMDC Limited 10. Neyveli Lignite Corporation Limited 11. Oil India Limited 12. Power Finance Corporation Limited 13. Power Grid Corporation of India Limited 14. Rashtriya Ispat Nigam Limited 15. Rural Electrification Corporation Limited 16. Shipping Corporation of India Limited
Miniratna Category - I CPSEs
1. Airports Authority of India 2. Antrix Corporation Limited 3. Balmer Lawrie & Co. Limited 4. Bharat Dynamics Limited 5. BEML Limited 6. Bharat Sanchar Nigam Limited 7. Bridge & Roof Company (India) Limited 8. Central Warehousing Corporation 9. Central Coalfields Limited 10. Chennai Petroleum Corporation Limited 11. Cochin Shipyard Limited 12. Container Corporation of India Limited 13. Dredging Corporation of India Limited 14. Engineers India Limited 15. Ennore Port Limited 16. Garden Reach Shipbuilders & Engineers Limited 17. Goa Shipyard Limited 18. Hindustan Copper Limited 19. HLL Lifecare Limited 20. Hindustan Newsprint Limited 21. Hindustan Paper Corporation Limited 22. Housing & Urban Development Corporation Limited 23. India Tourism Development Corporation Limited 24. Indian Railway Catering & Tourism Corporation Limited 25. IRCON International Limited 26. KIOCL Limited 27. Mazagaon Dock Limited 28. Mahanadi Coalfields Limited 29. Manganese Ore (India) Limited 30. Mangalore Refinery & Petrochemical Limited 31. Mishra Dhatu Nigam Limited 32. MMTC Limited 33. MSTC Limited 34. National Fertilizers Limited 35. National Seeds Corporation Limited 36. NHPC Limited 37. Northern Coalfields Limited 38. Numaligarh Refinery Limited 39. ONGC Videsh Limited 40. Pawan Hans Helicopters Limited 41. Rashtriya Chemicals & Fertilizers Limited 42. RITES Limited 43. SJVN Limited 44. Security Printing and Minting Corporation of India Limited 45. South Eastern Coalfields Limited 46. State Trading Corporation of India Limited 47. Telecommunications Consultants India Limited 48. THDC India Limited 49. Western Coalfields Limited 50. WAPCOS Limited
Miniratna Category-II CPSEs 51. Bharat Pumps & Compressors Limited 52. Broadcast Engineering Consultants (I) Limited 53. Central Mine Planning & Design Institute Limited 54. Ed.CIL (India) Limited 55. Engineering Projects (India) Limited 56. FCI Aravali Gypsum & Minerals India Limited 57. Ferro Scrap Nigam Limited 58. HMT (International) Limited 59. HSCC (India) Limited 60. India Trade Promotion Organisation 61. Indian Medicines & Pharmaceuticals Corporation Limited 62. M E C O N Limited 63. National Film Development Corporation Limited 64. National Small Industries Corporation Limited 65. P E C Limited 66. Rajasthan Electronics & Instruments Limited
Source: http://dpe.nic.in/newsite/navmini.htm
PRIVATE SECTOR COMPANIES
I. Automobile Industry The automobile industry in India can be mainly classified on the basis of i) Market for Commercial Vehicles ii) Market for Private Vehicles i) Market for Commercial Vehicles The market for commercial vehicles is a linchpin in the Indian Industrial Sector and responsible for transportation of more than 60 percent of the total freight handled in the country. As transportation is involved in every sector of the economy, the performance of the commercial vehicle market reflects the overall performance of the economy. The commercial vehicle industry has a cyclical nature of demand, because the demand is driven by a number of factors such as l industrial growth l agricultural production l increase in volumes of freight movement l road use for freight movement l change in freight prices l fuel prices l government policies
Since 2001 – 02, the demand for commercial vehicles has been on a rise. In 2003, the total number of commercial vehicles grew by 20% and stood at 4025 thousand units. The growth is expected to augment due to a rise in the industrial production and supportive government policies. The major players in the market are Mahindra and Mahindra, Escorts, Ashok Leyland, Tata and Hindustan Motors. ii) Market for Private Vehicles The market for private Vehicles can be further classified on two basis. a) Market for Two Wheelers The present market for two wheelers has witnessed rapid growth since the past four years. The total sales of two wheelers in India stood at 5,000,000 units in 2003 – 04. This has grown to 7,857,548 units in 2006 – 07. The rapid growth in the past two years is attributable to a rise in l household/consumers income l easy availability of finance l growing replacement demand l introduction of new models l increasingly aggressive outlook of the key players.
The overall sales of two wheelers are expected to reach 11,000,000 units in 2009–10. The expected surge in rural demand will play a key role in steering the total demand for two wheelers.
Key Players in the Market 1. Hero Motors Corp Limited (earlier known as Hero Honda Motors limited) l Hero Honda Motors Limited started as a joint venture between Hero group and the Honda Motor Company of Japan in 1984, Jan 19. l The first motorcycle ‘CD 100’ was produced in 1985. In the year 1996. l Hero Honda became the first company to serve the armed forces with its 100cc Motorcycles.
In 2000, company’s brand ‘Splendor” was declared world’s number one largest selling single l two wheeler model.
Presently, Hero Honda Motors Limited is the single largest two wheeler manufacturer in the l world.
Headquarter Hero Motors Corp Limited is headquartered at New Delhi, India.
Present Management Mr. Brij Mohan Lal Munjal is the present Chairman of the company while Mr. Pawan Munjal is the Managing Director of Hero Honda Group.
Products Offered The product range offered by the company includes l Karizma l Splendor l CD100 SS l Super Splendor l CD Deluxe l Passion l Passion Plus l CD Dawn l Glamour l Achiever l Hunk l CBZ Xtreme
2. Bajaj Auto
Bajaj Auto started its business as M/s Bachraj Trading Corporation Limited in 1945 by l Jamnalal Bajaj. l It started with the sales of imported two and three wheelers in 1948. In 1959, Bajaj Auto obtained license from Government of India to manufacture two and three l wheelers. l Rahul Bajaj took charge of the business in 1965. Under his leadership, the company tied up with Kawasaki Industries of Japan for technological collaboration and launched Kawasaki Bajaj KB 100 motorcycles.
At present, Bajaj Auto is ranked as world’s fourth largest two and three wheelers l manufacturer.
Products Offered The product range offered by the company includes l CT100 l Wind l Discover l Pulsar l Avenger l Kawasaki Caliber l XCD 125 l Kawasaki Eliminator
Headquarter Bajaj Auto is headquartered at Pune, Maharashtra.
Present Management Mr. Rahul Bajaj is the present Chairman and Mr. Madhur Bajaj is the Vice Chairman of the Bajaj Group. b) Market for Four Wheelers l The four wheelers market in India is at present experiencing a boom owing to high domestic demand, increasing exports, ambitious expansion plans by the major players of the sector and entry of foreign car manufacturer in the domestic market. l The domestic sales are expected to grow annually at 12 per cent from 1.06 million vehicles 2004 – 05 to nearly 1.87 million in 2009 –10. l Healthy growth in the disposable incomes of consumers, lower EMI’s owing to longer tenure and an improved distribution network will drive the growth in passenger cars and utility vehicles. l The export of four wheelers from India is also growing at an increasing rate and is expected to grow by 21 percent per annum in the next four years. l The global export from India is dominated by the small car segment with Hyundai Santro Xing, Maruti Alto and Tata Indica topping the list.
Key Players in the Market 1. Maruti Suzuki l Maruti Suzuki was established as Maruti Udyog Limited (MUL) in Feb 1981 through an Act of Parliament to meet the growing demand for a personal mode of transport. l Suzuki Motor Company (now Suzuki Motor Corporation of Japan) was chosen from seven prospective partners worldwide and a joint venture agreement was signed between Government of India and Suzuki in October, 1982. l As a part of the company’s corporate social responsibility (CSR), The Institute of Driving Training and Research (IDTR) was started in 2000, jointly with Delhi Government to promote safe driving habits among people. l In 2002, Suzuki Motors Corporation increased its stake in Maruti to 54.2 percent and became the major stakeholder. Maruti Suzuki is the largest car manufacturer in India.
Brands Offered The brands offered by Maruti are l Maruti 800 l Omni l Alto l Gypsy l Versa l Zen Estilo l Wagon R l Esteem l Baleno l Swift l SX4 l Grand Vitara
Headquarter The company‘s registered and corporate office is located at New Delhi and the workshop is located in Gurgaon, Haryana.
Present Management Mr. Shizno Nakanishi is the Managing Director & CEO and R.C. Bhargava is the chairman of Maruti Suzuki.
2. Hyundai Motor India Limited (HMIL)
Hyundai Motor India Limited is a wholly owned subsidiary of Hyundai Motor Company, South l Korea. The company started its operation in India in 1998 – 99. l At present Hyundai Motors India limited is the second largest car manufacturer in India.
The year 2006 had been a significant year for the company. It achieved a significant l milestone by rolling out the fastest 300,000th export car.
The company exports to over 65 countries globally and has recently ventured into the UK l market.
The Company has also been awarded ISO 1400 certification for its sustainable environment l management practices.
Brand Offered The brands offered by Hyundai India are: l Santro Xing l Getz l Accent l Verna l Elantra l Embera l Tucson l i 10
Headquarter The company‘s headquarters are located at New Delhi
Present Management Mr. H.S. Lheem is the Managing Director of Hyundai Motor India Limited ______
II. Information Technology Industry
Post Liberalization, the IT industry has become one of the core business sectors of the l economy. The annual growth rate of India’s software exports has been consistently over 50 percent l since 1991. l According to a report from Ministry of Communication and Information Technology, The ITeS – BPO industry has grown by about 54 per cent with exports earnings of US $3.6 billion during 2003 – 2004. l The government’s IT policy aims to use IT as a tool for raising the living standards of population based in rural areas by enhancing rural connectivity and increasing IT awareness.
The recent findings of NASSCOM – Mc Kinsey report projects a further growth in the revenue l of IT industry. l It is expected to reach US $87 billion in 2008. The report also says that the growth in the IT industry would lead to creation of about 2.2 million jobs.
Key Players in the Market
1. Infosys l Infosys Technologies Limited (NASDAQ: INFY) is an information technology (IT) company founded at Pune in 1981, by seven IT professionals. l In 1987 the company set up its first international office in the US in Fremont. l In the year 1992, Infosys became a public limited company in India.
In 1999, it became the first Indian company to be listed on NASDAQ and attained SEI – CMM l level 5 certification.
The company operates nine development centres in India and has over 30 offices in 20 other l nations. l Apart from its core business area, Infosys, through its subsidiaries, operates in some other business interests as well namely
Progeon – Infosys offers business process outsourcing solution to the global clients i) through Progeon. ii) Infosys Consulting Inc. US – a subsidiary of Infosys Technologies, the company offers IT consulting to clients across North America.
Infosys Technologies was also responsible for the introduction of “Finacle”, the iii) software for Indian Banking industry.
Headquarter Infosys technologies is headquartered at Bangalore.
Present Management Mr. S. D. Shibulal is the CEO and Managing Director
2. Tata Consultancy Services (TCS). l Tata Consultancy Services Limited is a Tata group company. l TCS commenced its operations in 1968.
Today the company has its presence in 34 countries across 6 continents and offers a range of l services to its clients. l The main services provided by TCS are - complete range of IT products/service, consultancy services and outsourcing services.
Headquarter The company‘s corporate office is at Mumbai.
Present Management Mr. Ratan N Tata is the Chairman of the Tata Group and Mr. S.Ramadorai is the CEO and Managing Director of TCS.
3. Wipro Technologies l Wipro was set up in 1945 as Western India Vegetable Products Limited with modest presence in Maharashtra and Madhya Pradesh.
The diversification into IT happened for the company in 1980 when IT services were started l in the domestic market. l Wipro launched its hardware company in 1981. In 1982, the company’s name was changed to Wipro Limited and it launched its software product subsidiary – Wipro Systems Limited in 1984. l In 2000 the company was listed on New York Stock Exchange (NYSE). In 2001, WIPRO became world’s first PCMM level 5 company. l In 1975, WIPRO marketed India’s 1st homegrown PC.
Headquarter Wipro Technologies is headquartered at Bangalore.
Present Management Mr. Azim Premji is the present Chairman of Wipro Technologies/Wipro Group. ______
III. Fast Moving Consumer Goods (FMCG) Market
The Indian FMCG sector is the fourth largest sector in the economy with a total market size l in excess of US $13.1 billion. l The FMCG Industry has strong presence in the Indian Economy and is characterised by a well established distribution network, intense competition between the organised and unorganised segments and low production costs. l Availability of key raw material and cheap labor costs gives India a competitive advantage. l India is one of the largest emerging markets and the fourth largest economy in terms of purchasing power parity, with a strong middle class base. The large share of fast moving consumer goods (FMCG) in total individual spending clubbed with the large population base marks Indian as one of the largest FMCG markets.
The size of the FMCG market is set to treble from US $11.6 billion in 2003 to US $33.4 billion l in 2015.
Growth in this sector is also likely to come from consumer upgradation to matured product l categories like processed food. l By 2010, about 200 million people in India are expected to consume processed and packaged food, which would require a large investment in the food processing industry.
Key Players in The Market 1. Hindustan Unilever Limited (HUL) l In the summer of 1888, visitors to the Kolkata harbour noticed crates full of ‘Sunlight’ soap bars embossed with the words “Made in England by Lever Brothers”. With it, began the era of branded Fast Moving Consumer Goods (FMCG) in India. l In 1895 the company launched Lifebuoy and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918. l In 1931, Unilever set up its Indian subsidiary by the name Hindustan Vanaspati Manufacturing Company. Brand ‘Dalda’ came to the Indian Market in 1937.
It was followed by setting up of Lever Brothers Limited in 1933 and United Traders Limited in l 1935.
The three Companies were merged together in 1956 and Hindustan Lever Limited (HLL) was l formed. l The company was renamed from HLL to HUL in late Jun 2007 to provide the optimum balance and the future benefits and synergies of global alignment with the corporate name of “Unilever”. l At present, HUL is India’s largest FMCG company with its presence across varied product categories namely Home and Personal care, processed foods and Beverages. l It is also one of the largest exporters in the country and has been recognised as Golden Super Star Trading House by the Government of India.
Headquarter Hindustan Unilever Limited has its headquarters at Mumbai.
Present Management Mr. Harish Manwani is the Present non – executive Chairman of the company and Nitin Paranjpe, CEO.
Products Offered The various products offered by HLL are:
Personal Care Laundry Foods Appliances
Lux Surf Excel Brooke Bond Hindustan Lever Limited has also come out with Pureit -
The world’s most Lifebouy Rin Lipton advanced water purifier.
Liril Wheel Kissan
Hamam Knorr Annapurna
Breeze Bru
Dove Kwality Wall’s
Pears
Rexona
Fair and Lovely
Pond’s
Sunsilk Naturals
Clinic
Pepsodent
Close-Up
Axe
Vaseline
Ayush
Lakme
2. ITC Limited
ITC Limited was incorporated on August 24, 1910 under the name of ‘Imperial Tobacco l Company of India Limited. The company’s ownership was progressively Indianised and the name of the company was l changed to ITC Limited in 1974. l The company’s packaging and printing business divisions were set up in 1925 to provide strategic support to ITC’s cigarette business. l Apart from FMCG product offerings, the company has also marked its presence in hotel industry under two brand names Welcome Group of Hotels and Sheraton Hotels. The company ventured into the hotel business in 1975. l It also offers a range of lifestyle products and stationery items.
In 2000, the company started its stationery business and also introduced “Wills Lifestyle” l range of clothing. l It made an entry into the packaged foods business in 2001, with the launch of its brand “Kitchens of India”. In 2002, the company launched “Aashirwad” brand of atta and subsequently in 2003 “Sunfeast” brand of biscuits was launched.
Headquarter ITC Limited is headquartered at Kolkata
Present Management Mr. Y. C. Deveshwar is the present Chairman of the company.
Products Offered Major Brands in various product offerings of company include:
1) FMCG
a) Cigarettes – Insignia, India Kings, Classic, Gold Flake, Capstan, Flake and etc.
Food Brands – Kitchens of India, Fashioned, Sunfeast, Mint-O, Candyman & b) Bingo.
c) Lifestyle Retailing – Will Lifestyle, John Players, Essenza De Wills, Miss Players
d) Personal Care – Farina Di Wills
e) Stationery – Expression Greeting Cards, Classmate, Papercraft, Regalia
f) Safety Matches & Agarbattis – Ikon, Aim, Vare Lit, Mangaldeep, Delite 2) Hotels - Maurya Sheraton, Chola Mandalam
3) Paperboard & Specialty Papers
4) Packaging
5) Agni Business
6) Information Technology
3. Proctor and Gamble India (P & G)
Proctor & Gamble started its operation in India when Vicks Product Inc. India was l established in 1951. l In 1964, a public limited company, Richardson Hindustan Limited (RHL) was formed which obtained a license from the government to produce menthol oil and Vicks range of products.
In 1967, RHL introduced ‘CLEARASIL’, the pimple cream and subsequently in 1979, ‘VICKS l ACTION 500’ was launched. l In 1985, RHL became an affiliate of Proctor & Gamble Company, USA and the name was finally changed to Proctor & Gamble, India in 1989. l In 1991, ‘Ariel’ brand of detergent was introduced. In 1993, Proctor and Gamble India started the marketing of Old Spice brand of products.
In 1999, the name of the company was changed to Proctor & Gamble Hygiene and Health l Care Limited.
Headquarter P & G India is headquartered at Mumbai. Robert A. McDonald is Chairman & CEO of the Company.
Products Offered 1. Hygiene & Health Care Whisper, Vicks Vapor Rub, Vicks Inhaler, Vicks Formula 44, Vicks Cough Drops, Vicks Action 500+ 2. Home Production Ariel Tide Detergent and Bar Pantene Olay Joy Heads & Shoulders Pantene Rejoice Pampers ______
IV. Telecom Sector
According to a recent report by CRIS INFAC the Indian Telecom Sector is one of the fastest l growing, high potential telecom markets in the world.
The total subscriber base in India is expected to grow to 490.0 million suscribers by 2012 at a l Compounded Annual Growth Rate (CAGR) of 24.3 percent.
The urban teledensity is expected to cross 50 percent mark by 2009–10 and the rural l teledensity would reach double figures.
Wireless telephony services (Mobile & fixed wireless) until now account for almost the entire l growth in the sector. The mobile subscriber base is expected to grow from 52.2 million at the end of 2004 – 05 to 490.0 million in 2011 – 12.
The fixed line subscriber base is expected to grow from 45.9 million at the end of 2004–05 to l 73.4 million in 2009 – 10.
The current telecom boom is likely to sustain itself in future because of many factors: l Low access charge l Reduction in license fee l Reduction in tariff rates, both for fixed line and wireless services l Increase in FDI limit for the sector l Government policy of moving from fixed license regime to a revenue share regime
Key players in the market
1. Bharti Tele-Ventures (AIRTEL)
Bharti Tele-Ventures limited, a part of Bharti enterprises, is India‘s leading private sector telecommunication service provider. The business of Bharti Tele-Ventures has been structured into two main strategic business groups: i) Mobility business group ii) Infotel business group
The Mobility Business Group provides GSM mobile services across India in 23 Telecom circles and the Infotel Business Group provides broadband and telephone (fixed line) services. Till now, it is the only company to operate in all 23 circles in India. The telephone and internet services provided by the company are available in 15 circles. In 2005, Vodafone Group Plc., the largest telecom company of United Kingdom bought 10% stake in Bharti Tele-Ventures for US $1.5 billion.
Headquarter Bharti Tele-Ventures Ltd. is headquartered at New Delhi.
Present Management Mr. Sunil Bharti Mittal is the Chairman and Managing Director of the company.
2. Vodafone Essar Vodafone Essar previously known as Hutchison Essar, brands its product as ‗Vodafone‘. Vodafone Essar is owned by Vodafone Group (52%), Essar Group (33%), and other Indian Nationals (15%).
Headquarter Vodafone Essar is headquartered at Mumbai
Present Management Mr. Asim Ghosh is CEO of Vodafone Essar and Mr. Arun Sarin is the CEO of Vodafone Group.
3. Reliance Communications Limited (RCL) l Reliance Communications Limited was originally incorporated on July 15, 2004 under the Companies Act, 1956 as Reliance Infrastructure Limited.
The status of the company was changed from private limited to public limited on July 25, l 2005. l The name has since been changed to its present name - Reliance Communications Limited, under a fresh Certificate of incorporation obtained from the government for the consequent change of name on June 7, 2006.
Headquarter Reliance Communications Limited is headquartered at Navi Mumbai.
Present Management Mr. Anil Dhirubhai Ambani is the present chairman of the company ______
V. Infrastructure Sector
Infrastructure Development has begun to pick up over the past two years and is set to surge l over the next few years. l Driven by government initiatives, private participation in the sector, innovative financing schemes and low interest rate on borrowing, have made it easier and cheaper for companies to fund large projects. l According to a recent CMIE (Centre for Monitoring Indian Economy) report, the further growth expected in the sector would require investments to the tune of Rs. 6,196 billion over FY 2005 – 08.
The focus of the Public–Private partnership is on development of roads, ports and power l sector. l All these initiatives would translate into huge earnings for the construction companies.
Key Players in the Market 1. Jaiprakash Industries (Jaypee Group) l The Jaypee Group is a well diversified infrastructure company of India. The company was set up by Shri Jayparakash Gaur in 1979. After his stint with the government of Uttar Pradesh, he branched off on his own as a Civil Contractor in 1958. l Jaiprakash Associates Pvt. Ltd (JAPL) was set up in 1979. l In 1980, Hotel Siddharth (New Delhi) and Hotel Vasant Continental (New Delhi) were set up. l In 1983, Jaypee Rewa Cement Plant (JRCL) was set up and subsequently Jaiprakash Industries Limited (JIL) was formed in 1986 by amalgamation of JAPL into JRCL. l In 1992, the group ventured into power sector and two New Companies – Jaiprakash Hydro Power Ltd. (JHPL) and Jaiprakash Power Venture Ltd. (JPVL) were formed. l In the year 2000, Jaypee Cement Ltd (JCL) was set up after a merger of JRCL and another Cement Plant Jaypee Bela Cement Plant (JBCP). l In 2003, JIL was merged with JIL and Jaiprakash Associates Ltd. (JAL) was formed in 2005, JHPL was listed on both NSE and BSE and thereby became the first Hydropower Company to be listed on either BSE or NSE in India.
Headquarter Jaiprakash Industries is headquartered at New Delhi.
Present Management Shri Jaiprakash Gaur is the Present Chairman of the Group.
2. DLF Group l The DLF Group founded in 1946 is a leading name in India’s real estate Industry. The Group’s existing range of business verticals spans across Homes, Offices, Shopping Malls and Recreational Spaces like DLF Golf and Country Club.
It has been responsible for the development of various urban colonies and townships across l India, primarily Gurgaon (NCR).
Already a major player in locations across the country, the company is now focusing on new l business areas.
The group has made significant investments in hotels, infrastructure and Special Economic l Zones (SEZ’s).
DLF has also entered into a Joint Venture with Laing O’Rourke of UK to develop expressways l and airports in the country. Headquarter DLF Group has its Corporate Office in New Delhi.
Present Management Mr. KP Singh is the present Chairman of the group.
3. Gammon India l Gammon India Limited is one of the leading construction companies in India. l The company was established by Mr. JG Gammon in 1919 as a firm of civic engineers and contractor which in 1922 was incorporated as a private limited company. l Under its present name the firm went public in 1962. l Gammon India has to its credit the largest river bridge in the world across the river Ganges at Patna, the largest road bridge in India across the open sea in Mumbai and the first Cable stayed bridge in India. l Gammon India Limited is the only Indian construction company to have been accredited with ISO 9001 certification for all fields of civil engineering works.
Headquarter The Company has its corporate office in Mumbai.
Present Management Mr. Abhijit Ranjan is the Chairman and Managing Director of the Company.
4. GMR Group l GMR Group is an infrastructure development company founded in 1978. l The group today has major interests in energy, transportation and business in manufacturing.
As a part of group’s corporate social responsibility initiative, GMR Varalakshmi foundation l (GMRVF) was established in 1991 with focus on education, community services, health and hygiene and creation of livelihood through empowerment of local communities. l In early 2006, the group also bagged the contract for restructuring and modernizing Delhi’s International Airport, jointly with FRAPORT (Frankfurt airport)
Headquarter The company has its corporate office at Bangalore.
Present Management Mr. G. M. Rao is the founding chairman of the GMR Group. ______
VI. Major Business Groups 1. Tata Group l Born in a Parsi family in 1839, Jamsetji Nusserwanji Tata came to Bombay at the age of 14. In 1868, he started a private trading firm with a capital of Rs.21000, laying the foundation of what now exists as Tata Group. l His travels in the Far East and Europe created a strong desire in him to manufacture cotton goods. Finally, he launched the famous Central India Spinning, Weaving and Manufacturing company in 1874 marking the group’s entry into Textiles. l The group later moved in to steel, electric power, locomotives, automobiles, banking, insurance, hotels and eventually information technology. l Jamsetji had got the approval for building a steel plant in 1895. Many years were spent in surveying the Indian terrain before the group hit gold in the remote coalfields of Bengal which had ore with rich iron content and a continuous flow of water. The Tata Iron and Steel Company was founded in 1907 at Jamshedpur, in Bihar (present day Jharkhand). l Sir Dorabji Tata, aided by his cousin RD Tata, saw Jamsetji’s projects through to the stage of accomplishment. Sir Dorabji always believed that wealth must be put to constructive use. Towards the end of his career in 1932, he put all his wealth–including the 245-carat Jubilee Diamond, twice as large as the Koh-i-noor and estimated at Rs. 1 crore–into a trust for the advancement of learning and research, the relief of distress and other charitable purposes. l Jehangir Ratanji Dadabhoy Tata (JRD) was born in Paris on July 29, 1904. JRD, as he was fondly referred to all his life, arrived at group headquarters, Bombay House to work under John Peterson, director-in-charge of Tata Steel, in 1925. l In 1938, after the death of Sir Nowroji Saklatvala, chairman of Tata Sons, JRD Tata was catapulted to be the head of India’s largest industrial empire. l JRD’s passion for flying was fulfilled with the formation of the Tata Aviation Service back in 1932. Just before India’s Independence, in 1945, Tata Steel promoted the Tata Engineering and Locomotive Company (Telco) with the objective of making locomotives for the Indian Railways. l For these endeavors, JRD Tata was awarded the country’s highest civilian honour - Bharat Ratna, in 1992–one of the rare instances when the award was granted during a person’s lifetime.
Milestones
1868 Jamsetji Nusserwanji Tata starts a private trading firm. The foundation of the Tata empire is laid. :
1874 The first Indian textile mill, Central India Spinning, Weaving and Manufacturing Company is : established.
1902 The Indian Hotels Company is established to run a chain of hotels in India. :
1907 The birth of the Tata Iron and Steel Company heralds India’s entry into the steel age. :
1910 The first of the three Tata electric companies, the Tata Hydro-Electric power Supply Company, is : created.
1911 The Indian Institute of Science is established in Bangalore. :
1917 The Tata entered consumer goods, as The Tata Oil Mills Company starts making soaps, : detergents and cooking oils..
1931 Tata Press is born. It is now one of the country’s leading, integrated commercial printer. :
1932 Tata Airlines, a division of Tata Sons, is established. :
1939 Tata Chemicals, now the largest producer of soda ash in the country, is established. :
1945 The Tata Engineering and locomotive Company is set up to manufacture commercial vehicles : 1952 Lakme is established. :
1954 India’s major marketing, engineering and manufacturing organisation, Voltas is established. :
1962 Tata Finlay (now Tata Tea), one of the largest tea producers, is established. :
1968 Tata Consultancy Services is formed, a division of Tata Sons. :
1970 Tata McGraw-Hill Publishing Company is created to publish educational and technical books. : Tata Economic Consultancy Services is set up.
1984 Titan Industries – a joint venture between the Tata Group and the Tamil Nadu Industrial : Development Corporation (TIDCO) – is set up to manufacture watches.
1996 Tata Teleservices (TTSL) is established to spearhead the Group’s foray into the telecom sector. :
1998 Tata Indica, India’s first indigenously designed, developed and manufactured car is launched. :
1999 The new Tata Group corporate mark and logo are launched. :
2000 Tata Tea acquires Tetley Group, UK. :
2001 Tata-AIG – a joint venture between the Tata Group and American International Group Inc (AIG) – : marks the Tata’s re-entry into insurance. (The Group’s insurance company New India Assurance, was nationalised in 1956). The Tata Group Executive Office (GEO) is set up to design and implement change in the Tata Group and to provide long-term direction.
2003 Tata BP Solar inaugurates plant; launches three new products. Tata Motors launches City Rover – : Indica fashioned for the European market.
2005 Tata Steel acquires Singapore-based steel company NatSteel by subscribing to 100 per cent : equity of its subsidiary, NatSteel Asia.
2007 Tata Steel, part of India’s Tata Group, offered to purchase 100% stake in the Corus Group at 608 : p. per share in an all cash deal, cumulatively valued at USD 12.04 Billion. This deal was also the biggest acquisition by any Indian company till date. Headquarter The Tata Group‘s holding company has its headquarters at Mumbai, Maharashtra.
Present Management Mr. Ratan Tata is the present Chairman of the group.
Engineering Powe Communicati Consumer Global Services/Produc Chemicals IT Services r on Products Operations ts
Tata Tata TAL Indian Tata BP Rallies Nelito McGrawhi Manufacturing Hotels (Taj Enterprise Solar India Systems ll Solutions Tata Sky Group) AG India publishing
Taj Housing Tata Developme Tata Tata AutoComp Tata Tata powe SerWizSol Tata Tea nt Incorporate System Chemicals Teleservices r Corporation d (THDC)
Tata Tata Financial
Tata Holset Tatanet Tata Elxsi Trent Internation Pigments Services al
Tata Tata Technolgi Tata
Tata Motors VSNL Technolgie Internation es Ceramics s al AG
Tata Tata AIG Consultan Titan Tata
Tata Projects General cy Services Industries Limited Insurance (TCS)
Tata Tata AIG Tata TCE Consulting
Interactive Life Precision Engineers Systems Insurance Ltd.
Telco Tata Asset
Construction Manageme Tata AG Equipment Co. nt Tata
TRF Financial Services
Tata
Voltas Investment Corporation
Other
Tata Steel Services
Tata Quality
Manageme nt Services
Tata Services
Tata Strategic Manageme nt Group.
Group Companies
2. The Goenka‘s - RPG Group
The RPG Group‘s business origin can be traced to 1820, when Mr. Ramdutt Goenka, arrived in Calcutta from Dundlod, in Rajasthan, India, to do business with the British East India Company. Along with his brothers and sons, he acquired several profitable agencies. By the turn of the twentieth century, his business had expanded rapidly with significant diversification in banking, textiles, jute and tea. For their outstanding contribution to the Indian business and community services, the British conferred Knighthood on Sir Hariram Goenka and Sir Badridas Goenka. They became prominent leaders of the Marwari community of Calcutta and held sway in business communities throughout India.
Sir Badridas Goenka played an important role in public life and national politics. In 1933, he became the first Indian to be appointed Chairman of the Imperial Bank of India, now known as the State Bank of India. In 1945, he was elected President of the Federation of Indian Chambers of Commerce and Industry (FICCI).
The successful streak of entrepreneurship continued with Keshav Prasad Goenka, son of Sir Badridas Goenka. He managed to steer his companies through the pre-independence and post-independence era and in the 1950s, embarked on a course of expansion and diversification at an escalating tempo. Keshav Prasad Goenka acquired the two British trading houses, Duncan Brothers and Octavius Steel. In the early 1960s, he promoted three companies in the automobile tyre industry namely Phillips Carbon Black and acquired several others. By the end of 1970s, when he progressively retired leaving the management of his business to his three sons, he had acquired substantial interests in tea, automobile tyre, jute, cotton textile and electric cables. Like his father, he played an active role in public life. He held the position of President of FICCI in 1965, and became a director of India‘s central bank, the Reserve Bank of India, a position later held by his son Rama Prasad Goenka, better known as RP Goenka.
In 1979, the fortune owned by Keshav Prasad Goenka was shared amongst his three sons. From owning four companies; Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India, with a turnover of Rs 75 crore, RP Goenka, led the group to what it is today: a Rs 7,472 crore company (US$ 1.65 billion), with more than 20 companies in 7 different business sectors. With razor sharp business instincts, RP Goenka excelled in buying and selling companies. His first purchase was CEAT Tyres of India in 1981. In the 1980s, this takeover specialist acquired KEC (1982), Searle India (1983, later renamed RPG Life Sciences), Dunlop (1984), HMV (1988), and finally in 1989,CESC, Harrisons Malayalam, Spencer & Co. and ICIM.
In 1990, he entrusted the management of the group to his two sons, Harsh and Sanjiv Goenka. RP Goenka became Chairman Emeritus, Harsh Goenka Chairman and Sanjiv Goenka Vice-Chairman of RPG Enterprises.
Milestones
1979 : Inception of RPG Enterprises by Mr RP Goenka, a Rs. 700 million group, which comprises Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy (India) 1983 : RPG Life Sciences (formerly Searle India) is acquired. 1985 : Saregama India (formerly the Gramophone of India Ltd.) is acquired 1988 : HMV (His Master‘s Voice) is acquired. 1989 : Harrisons Malayalam Ltd., Spencer‘s CESC Ltd., Raychem RPG (formerly Raychem Corporation) and Zensar Technologies (formerly ICIL) are acquired. 1995 : RPG Cellular commences its operations. 1996 : RPG Netcom is established. 1997 : MusicWorld and Health and Glow are formed. 1999 : Searle India becomes RPG Life Sciences. Foodworld is established. 2000 : International Computers India Ltd. (ICIL) becomes Zensar Technologies Ltd. 2001 : ‗Giant‘ hypermarkets is established. 2003 : RPG crosses the Rs.7000 crore turnover mark reaching Rs.7472 crore in sales.
Headquarter The group is headquartered at Mumbai, Maharashtra.
Present Management Mr. R P Goenka is the Chairman Emeritus, Mr. Harsh Goenka is the present Chairman of the group and Mr. Sanjiv Goenka is the Vice Chairman of the group.
RPG Group Companies Retail : Foodworld, Musicworld, Spencer‘s, Hypermarkets Technology : Zensar Technology, RPG Cables, RPG Life Sciences Entertainment : Saregama HMV, HamaraCD Power Transmission : CESC Ltd., Noida Power Company Tyres : CEAT Ltd., CEAT Kelani, Phillips Carbon Black Ltd. Speciality : Raychem RPG, Transmission : KEC International, Nitel, RPG Transmission
3. Bajaj Group
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group‘s flagship company, Bajaj Auto, is ranked as the world‘s fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia.
Founded in 1926, at the height of India‘s movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, can be traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities.
Headquarter Bajaj group is headquartered at Pune, Maharashtra.
Present Management The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto, the flagship company, has gone up from INR 72 million to INR 46.16 billion (USD 936 million) and its product portfolio has expanded and the brand has found a global market. He is one of India‘s most distinguished business leaders and is internationally respected for his business acumen and entrepreneurial spirit.
Bajaj Group Companies
Bajaj Auto Ltd. Mukand Global Finance Ltd.
Bajaj Electricals Ltd. Bachraj Factories Pvt. Ltd
Bajaj Hindustan Ltd. Bajaj Consumer Care Ltd.
Maharashtra Scooters Ltd. Bajaj Auto Holdings Ltd. Bajaj Auto finance Ltd. Jamnalal Sons Pvt. Ltd.
Hercules Hoists Ltd. Bachraj & Company Pvt. Ltd.
Bajaj Sevashram Pvt. Ltd. Jeevan Ltd.
Hind lamps Ltd. Bajaj Allianz Life Insurance Company Ltd.
Bajaj Ventures Ltd. Bajaj Allianz General Insurance Company Ltd.
Mukand International Ltd. Stainless India Ltd.
The Hindustan Housing Co. Ltd. Hind Musafir Agency Pvt. Ltd.
Baroda Industries Pvt. Ltd. Bajaj Internatinal Pvt. Ltd.
Bombay Forgings Ltd.
4. Aditya Birla Group A formidable force in the Indian industry, Mr Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put the Indian business on the world map, as far back as 1969, long before globalization became a buzzword in India. Interestingly, for Mr Aditya Birla, globalisation meant more than just geographic reach. He believed that a business could be global even whilst being based in India. Therefore, back in his home-territory, he single-mindedly drove to put together the building blocks to make his Indian business a global force. Under his stewardship, his companies rose to be the world‘s largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth largest producer of carbon black. In India they attained the status of the largest single producer of viscose filament yarn, apart from being a producer of cement, grey cement and rayon grade pulp. The group is also the largest producer of aluminium in the private sector, the lowest cost producers in the world and the only producer of line in the textile industry in India.
Milestones
1857 The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla–cotton trading : operations commence at Pilani, Rajasthan. 1919 Ghanshyam Das Birla, grandson of Shiv Narayan Birla, sets up the first Birla jute mill. :
1947 Grasim is incorporated. :
1958 Hindalco is incorporated. :
1965 Aditya Birla, grandson of the legendary Ghanshyamdas Birla, starts the Eastern Spinning Mills & : Industries.
1966 The Indian Rayon Corporation Ltd. is acquired. :
1985 India’s first gas-based fertiliser plant in the private sector – Indo Gulf – goes on stream at : Jagdishpur, UP
1986 The Birla Growth Fund is set up. :
1990 Mr Kumar Mangalam Birla gets actively involved in the Group’s operations. :
1995 The group enters the telecommunications sector through a joint venture with AT & T (USA) :
1996 All group companies are consolidated under the umbrella of the Aditya Birla Group, led by Mr. : Kumar Mangalam Birla.
1999 A joint venture with financial services major Sun Life of Canada is inked, as part of the overall : restructuring of the Group’s financial services business.
2000 l Indian Rayon acquires Madura Garments and selected overseas brand rights, taking the : Group to the top of the league in the branded apparels sector.
l The Group forays into e-business through a strategic alliance of its software arm, Birla
Software and Consultancy Services (BCSS), with Lawson Software (USA).
‘Gyanodaya’, the Institute of Management Learning of the Aditya Birla Group, is l inaugurated.
l Hindalco acquires Indal. The Indal board is reconstituted. Mr Kumar Mangalam Birla becomes Indal’s new chairman. The Group holding goes up to 74.6 percent, and further increases to 96 per cent in FY’03.
l The Insurance Regulatory Development Authority (IRDA) grants registration in principle to Birla Sun Life Insurance Company. Indian Rayon acquires major world rights for international apparel brands Louis Philippe, Allen Solly and Peter England.
The Group announces its intention to launch a 450 MW ‘Green Power Project’ in l Karnataka.
l The merger of Birla AT&T and Tata Cellular is completed to form IDEA.
2004 Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman. Completion of the : implementation process to de-merge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech.
Headquarter The group is headquartered at Mumbai, Maharashtra.
Present Management Mr. Kumar Mangalam Birla is the present Chairman of the group. Under his leadership the group has not only sustained existing empire but is also prospering to new heights. The group is spearheaded by Grasim, Hindalco, Indian Rayon, and Indo Gulf Fertilisers.
Group Companies
Group Companies Indian Companies Joint Ventures
Grasim Industries Ltd. PSI Data Systems Birla Sun Life Insurance
Birla Sun Life Asset Management Hindalco Industries Ltd. TransWorks Company Ltd.
Birla Sun Life Distribution Company Aditya Birla Nuvo Ltd. Essel Mining & Industries Ltd. Ltd.
Ultra Tech Cement Ltd. Shree Digvijay Cement Ltd. Tanfac Industries Ltd.
Idea Cellular Ltd.
Birla NGK Insulators Bihar Caustic and Chemicals Ltd.
5. Reliance Industries Limited (Mukesh Ambani) The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India‘s largest private sector enterprise, with businesses in the energy and materials value chain. Group‘s annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
The Group‘s activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited.
Milestones
1977 Reliance went Public with IPO – Dhirubhai Ambani introduced equity cult in India, a new model : of business leadership from a base of the broadcast public shareholding.
1992 Reliance raised funds by pioneering foray into overseas capital markets with first ever : international GDR offering by an Indian corporate.
1993 Reliance Petroleum Limited public issue - India’s largest public offering . :
Reliance pioneered the first ever Euro Convertible Bond issue by an Indian company.
1994 Reliance offered the second Euro issue of GDR. : 1995 Net profit crossed the Rs 1,000 crore mark (Rs 1,065 crores or US$ 338 million), unparalleled in : the Indian Private sector.
1996- First corporate in Asia to issue 50 and 100 years bond in US debt market. 97:
Reliance became the first private sector company to be rated by international credit rating
agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling. Moody’s rated Baa3, Investment grade, constrained by the Sovereign Ceilings.
1998 Dhirubhai Ambani was awarded the Dean’s Medal by the Wharton School, University of : Pennsylvania, USA, for setting an outstanding example of leadership.
2001 Reliance Industries Ltd. and Reliance Petroleum Ltd. became India’s two largest companies in : terms of all major financial parameters
Dhirubhai Ambani was conferred The Economic Times Award for Corporate Excellence for Lifetime Achievement.
2002 l Reliance Infocomm to launch various telecom services on 28th December - beginning : with Gujarat, the Infocomm revolution will cover thousands of villages and hundreds of cities across the country. Reliance Infocomm will become a major catalyst for changing the face of India and improving the quality of life of Indians.
l Reliance announced India’s biggest gas discovery in nearly three decades and one of the largest gas discoveries in the world during 2002. The in place volume of natural gas is in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This is the first ever discovery by an Indian private sector company.
l Reliance acquired control of Indian Petrochemicals Corporation Limited (IPCL) - India’s second largest petrochemicals company.
l The merger of Reliance Petroleum Limited with Reliance Industries Limited was announced - largest ever merger in India - Reliance Industries became the largest private sector company in India on all major financial parameters including sales, profits, net worth, assets, and exports.
2003 l Reliance Infocomm acquires FLAG Telecom, a multinational telecom company : providing bandwidth through its undersea cable network comprising of over 50,000 kms of undersea fiber optic cable that spans four continents and connects the key regions of Asia, Europe, Middle East and the USA.
l Reliance strikes oil in an onshore block in Yemen, where it has an equity oil position. l Reliance’s refinery at Jamnagar was ranked best in Shell Benchmarking for the third
consecutive year in ‘Energy and Loss’ performance from amongst 50 refineries worldwide.
l BSES, one of the premier utility companies of the country, engaged in the generation,
transmission and distribution of electricity becomes part of the Reliance Group and Mr. Anil D Ambani is appointed its Chairman
2004 l Reliance Industries Limited (RIL) emerged as the ‘Petrochemicals Company of the : Year’ at the prestigious sixth annual Platts Global Energy Awards ceremony in New York, USA
l The European Commission approved the acquisition of the German specialty polyester manufacturer ‘Trevira’ by Reliance.
l Reliance Industries emerged as the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of World’s Largest Corporations.
l Reliance announced it had struck gas off the Orissa Coast in the Bay of Bengal.
RIL became the first private sector company in India to record a net profit of US dollar
l of over 1 billion.
2006 Reliance becomes India’s first private sector enterprise to cross US$2 billion profit mark. :
2007 l RIL completes a landmark acquisition of IPCL. :
l Reliance Retail entered the organised retail market in India with the launch of its convenience store format under the brand name of ‘Reliance Fresh’.
Headquaters RIL is headquatered at Nariman Point, Mumbai
Present Management Chairman & Managing Director – Mukesh Ambani
6. Reliance ADA Group
Reliance Capital Reliance Capital is one of India‘s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. The company has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.
Reliance Communications Limited The flagship company of the Reliance – ADA Group, Reliance Communications Limited, is the realisation of their founder‘s dream of bringing about a digital revolution that will provide every Indian with affordable means of communication and a ready access to information. The company began operations in 1999 and has over 20 million subscribers today. It offers a complete range of integrated telecom services. These include mobile and fixed line telephony, broadband, national and international long distance services, data services and a wide range of value added services and applications aimed at enhancing the productivity of enterprises and individuals.
Reliance Energy Limited Reliance Energy Limited, incorporated in 1929, is a fully integrated utility engaged in the generation, transmission and distribution of electricity. It ranks among India‘s top listed private companies on all major financial parameters, including assets, sales, profits and market capitalization. It is India‘s foremost private sector utility with aggregate estimated revenues of Rs 9,500 crore (US$ 2.1 billion) and total assets of Rs 10,700 crore (US$ 2.4 billion).
Reliance Health In a country where healthcare is fast becoming a booming industry, Reliance Health is a focused healthcare services company enabling the provision of solution to Indians, at affordable prices. The company aims at providing integrated health services that will compete with the best in the world.It also plans to venture into diversified fields like Insurance Administration, Health care Delivery and Integrated Health, Health Informatics and Information Management and Consumer Health.
Reliance Media & Entertainment As part of the Reliance - ADA Group, Reliance Entertainment is spearheading the Group‘s foray into the media and entertainment space. Reliance Entertainment‘s core focus is to build significant presence for Reliance in the Entertainment eco-system: across content and distribution platforms. The key content initiative are across Movies, Music, Sports, Gaming, Internet & mobile portals, leading to direct opportunities in delivery across the emerging digital distribution platforms: digital cinema, IPTV, DTH and Mobile TV. Reliance ADA Group acquired Adlabs Films Limited in 2005, one of the largest entertainment companies in India, which has interests in film processing, production, exhibition & digital cinema. Reliance Entertainment has made an entry into the FM Radio business through Adlabs Radio www.big927fm.com Having won 45 stations in the recent bidding, BIG 92.7 FM is already India‘s largest private FM radio network with 12 radio stations across the country as on 28th February 2007, with many more to be launched in the coming months.
Headquater The company has its headquarter in Mumbai
Present Management Shri Anil D Ambani is the chairman of Reliance ADAG.
7. Mahindra & Mahindra l Mahindra & Mahindra Limited (M&M) is a major automaker in India. It is the flagship strategic business unit of the Mahindra Group. l The company was set up in 1945 as Mahindra & Mohammed. Later, after the partition of India, Mr. Gulam Mohammed migrated to Pakistan and became that nation’s first finance minister. l The company first traded steel with suppliers in England and the United States. l Real business activity of M&M began by assembling complete knock down (CKD) Jeeps in 1949. The company expanded to indigenous manufacture of Jeep vehicles with a high level of local content under license from Kaiser Jeep and later American Motors (AMC). l M&M soon branched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). It later expanded its operations to secure a significant presence in many more important sectors. l The company has now transformed itself into a group of business units that caters to the Indian and overseas markets with a presence in vehicles, farm equipment, information technology, trade and finance related services, as well as infrastructure development. l By 2005, M&M had become the largest producer of SUVs in India. The company has recently started a separate sector, the Mahindra Systems and Automotive Technologies (MSAT), to focus on developing components and offering engineering services. l Mahindra & Mahindra rapidly grew from being a maker of army vehicles to a major automobile and tractor manufacturer with a growing global appetite. l It made strategic acquisitions of plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France, Nissan and International Truck and Engine Corporation, USA. l M&M made its entry into the passenger car segment with Logan in April 2007 under the Mahindra Renault JV. l M&M will make its maiden entry into the heavy trucks segment with Mahindra International, the joint venture with International Truck, USA. l M&M’s Automotive Sector makes a wide rage of vehicles including MUVs, LCVs and three wheelers. M&M is the largest manufacturer of MUVs, offering over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero. The company is a market leader in the Utility Vehicle segment. l M&M’s products are being exported to the USA, Russia and several other countries in Africa, Asia, Europe and Latin America. Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. l M&M is the third largest tractor company in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of around 24 years. It designs, develops, manufactures and markets tractors as well as farm implements.
Headquater The company is headquatered in Mumbai
Present Management Keshub Mahindra is Chairman and Anand G.Mahindra is the Vice- Chairman & Managing Director. IMPORTANT GOVERNING INSTITUTIONS
1. Federation of Indian Chamber of Commerce and Industry (FICCI) Set up in 1927, on the advice of Mahatma Gandhi, FICCI is the largest and oldest apex business organization of Indian business. Its history is very closely interwoven with the freedom movement. FICCI inspired economic nationalism as a political tool to fight against discriminatory economic policies. That commitment, drive and mission continue in the ever-changing economic landscape of India, always chasing newer agendas. With a nationwide membership of over 1500 corporates and over 500 chambers of commerce and business associations, FICCI espouses the shared vision of Indian businesses and speaks directly and indirectly for over 2,50,000 business units. It has an expanding direct membership of enterprises drawn from large, medium, small and tiny segments of manufacturing, distributive trade and services. FICCI maintains the lead as the proactive business solution provider through research, interactions at the highest political level and global networking.
Headquarter FICCI is headquartered at New Delhi
Present Management Mr. Harsh Mariwala - President Mr. R V Kanoria - Sr. Vice President Ms. Naina Lal Kidwai - Vice President
2. Confederation of Indian Industry (CII) The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industries in India, partnering industry and government alike through advisory and consultative processes. CII is a non-government, not-for-profit, industry-led and industry-managed organisation, playing a proactive role in India‘s development process. Founded over 112 years ago, it is India‘s premier business association, with a direct membership of over 7000 organisations from the private as well as public sectors, including SMEs and MNCs and indirect membership of over 90,000 companies from around 362 national and regional sectoral associations.
Headquarter CII is headquartered at New Delhi
Present Management Present Management Mr B Muthuraman � President, CII Mr Adi Godrej- President Designate, CII Mr S Gopalakrishnan � Vice President, CII
3. National Association of Software and Service Companies (NASSCOM) National Association of Software and Service Companies (NASSCOM) is the premier trade body and the chamber of commerce of the IT software and services industry in India. NASSCOM is a global trade body with over 1200 members, of which over 250 are global companies from the US, UK, EU, Japan and China. NASSCOM‘s member companies are in the business of software development, software services, software products and IT-enabled Services/BPO services. NASSCOM was set up in 1988 to facilitate business and trade in software and services and to encourage advancement of research in software technology. It is a not- for-profit organization, registered under the Indian Societies Act, 1860.
Headquarter NASSCOM has its headquarters at New Delhi
Present Management Mr. Rajendra Pawar � Chairman, NASSCOM Mr. Natarajan Chandrasekaran � Vice Chairman, NASSCOM Mr. Som Mittal � President, NASSCOM
4. ASSOCHAM The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the premiere body of chamber of commerce in India. Established in 1920, it currently has a membership of over 200,000 companies across the country. The organisation represents the interests of trade and commerce in India, and interacting with the Government of India on policy issues, and liaisoning with their international counterparts to promote trade between India and other nations.
Present Management Dilip Modi, President, ASSOCHAM Rajkumar Dhoot, Sr. Vice President, ASSOCHAM Analjit Singh, Vice President, ASSOCHAM
5. Securities Exchange Board of India (SEBI) Securities and Exchange Board of India (SEBI) is a board (autonomous body) created by the Government of India in 1988 and given statutory form in 1992 under the SEBI Act 1992. SEBI has three functions rolled into one body: legislative, judicial and executive. It drafts rules in its legislative capacity, it conducts enquiries and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. SEBI has had a mixed history in terms of its success as a regulator. Though it has pushed systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless), it seems to lack the legal expertise needed to sustain prosecutions/enforcement actions.
Headquarter SEBI is headquartered at Mumbai.
Present Management Shri U. K. Sinha,� Chairman, SEBI Dr. Thomas Mathew� Joint Secretary � CM
6. Finance Commission The First Finance Commission was constituted under Art. 280 by a Presidential Order dated November 22, 1951, under the chairmanship of KC Neogy. It is the duty of the Commission to make recommendations to the President as to: l The distribution between the Union and the States of the Net proceeds of Taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds
The principles which should govern the grants-in-aid of the revenues of the States out of the l Consolidated Fund of India.
Headquarter Finance Commission is headquartered at New Delhi.
Present Management Mr. Vijay L. Kelkar - Chairman, Finance Commision
7. National Council of Applied Economic Research (NCAER) It was established in 1956 as a non-governmental body in Delhi to assist government, civil society and the private sector to make informed policy choices. The council encourages research on Indian themes using Indian data. Its major activities include: l Developing policy reports for clients. l Examining domestic agricultural market structures, price policy, linkages between agricultural price policy and poverty, and, the role of the Panchayats in fostering sustainable development. l Tracking key sectors of the economy for subscribers and forecasting the economic outlook.
Conducting, designing, and analysing surveys that illuminate public policy issues as well as assist l private sector decisions l Disseminating research findings
Headquarter NCAER is headquartered at New Delhi.
Present Management Mr. Nandan Nilekani - President, NCAER Mr. M.S. Verma � Vice President, NCAE http://indiabudget.nic.in
Key Features of Budget 2012-2013
APPROACH TO THE BUDGET
For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. India however remains front runner in economic growth in any cross-country comparison. Monetary and fiscal policy response for better part of past 2 years aimed at taming domestic inflationary pressure. Growth moderated and fiscal balance deteriorated due to tight monetary policy and expanded outlays. Indicators suggest that economy is turning around as core sectors and manufacturing show signs of recovery. At this juncture, it is necessary to take hard decision to improve macroeconomic environment and strengthen domestic growth drivers. Twelfth Five Year Plan to be launched with the aim of ―faster, sustainable and more inclusive growth‖, five objectives identified to be addressed effectively in ensuing fiscal year. If India can build on its economic strength; it can be a source of stability for world economy and a safe destination for restless global capital.
OVERVIEW OF THE ECONOMY
GDP growth estimated at 6.9 per cent in real terms in 2011-12. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth. Headline inflation expected to moderate further in next few months and remain stable thereafter. Steps taken to bridge gaps in distribution, storage and marketing systems have helped in more effective management of inflation. Developments in India‘s external trade in the first half of current year have been encouraging. Diversification in export and import market achieved. Current account deficit at 3.6 per cent of GDP for 2011-12 and reduced net capital inflow in the 2nd and 3rd quarters put pressure on exchange rate. India‘s GDP growth in 2012-13 expected to be 7.6 per cent +/- 0.25 per cent. Deterioration in fiscal balance in 2011-12 due to slippages in direct tax revenue and increased subsidies
FRBM ACT
Introduction of amendments to the FRBM Act as part of Finance Bill, 2012 Concept of ―Effective Revenue Deficit‖ and ―Medium Term Expenditure Framework‖ statement are two important features of amendment to FRBM Act in the direction of expenditure reforms. Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. This will help in reducing consumptive component of revenue deficit and create space for increased capital spending. ―Medium-term Expenditure Framework‖ statement will set forth a three-year rolling target for expenditure indicators. Recommendations of the Expert Committees to streamline and reduce the number of centrally sponsored schemes and to address plan and non-plan classification to be kept in view while implementing Twelfth Plan Central Plan Scheme Monitoring System to be expanded for better tracking and utilisation of funds
SUBSIDIES
Some subsidies, while being inevitable, may become undesirable if they compromise the macroeconomic fundamentals of economy. Subsidies related to administering the Food Security Act will be fully provided for. Endeavour to keep central subsidies under 2 per cent of GDP in 2012-13, over next 3 year, to be further brought down to 1.75 per cent of GDP. Based on recommendation of task force headed by Shri Nandan Nilekani, a mobile-based Fertilizer Management System has been designed to provide endto- end information on movement of fertilisers and subsidies. Nation-wide roll out during 2012 All three public sector Oil Marketing Companies have launched LPG transparency portals to improve customer service and reduce leakage. Endeavour to scale up and roll out Aadhaar enabled payments for various government schemes in at least 50 districts within next 6 months.
TAX REFORMS
DTC Bill to be enacted at the earliest after expeditious examination of the report of the Parliamentary Standing Committee Drafting of model legislation for the Centre and State GST in concert with States is under progress. GST network to be set up as a National Information Utility and to become operational by August 2012
DISINVESTMENT POLICY
Government has further evolved its approach to divestment of Central Public Sector Enterprises by allowing them a level playing field vis-à-vis the private sector in respect of practices like buy backs and listing at stock exchanges. For 2012-13, `30,000 crore to be raised through disinvestment, At least 51 per cent ownership and management control to remain with Government
STRENGTHENING INVESTMENT ENVIRONMENT Foreign Direct Investment
Efforts to arrive at a broad based consensus in consultation with the StateGovernments in respect of decision to allow FDI in multi-brand retail upto 51 per cent.
Advance Pricing Agreement
Provision regarding implementation of Advance Pricing Agreement to be introduced in Finance Bill, 2012
Financial Sector
Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to new retail investors, who invest upto `50,000 directly in equities and whose annual income is below `10 lakh to be introduced. The scheme will have a lock-in period of 3 years.
Capital Market
Various steps proposed to be taken for deepening the reforms in the Capital markets, including simplifying process of IPOs, allowing QFIs to access Indian Bond Market etc.
Legislative Reforms
Official amendment to ―The Pension Fund Regulatory and Development Authority Bill, 2011‖, ―The Banking Laws (Amendment) Bill, 2011‖ and ―The Insurance Law (Amendment) Bill, 2008‖ to be moved in this session Various Bills proposed to be moved in the Budget session of the Parliament to take forward the process of financial sector legislative reforms.
Capitalisation of Banks and Financial Holding Company
To protect the financial health of Public Sector Banks and Financial Institutions, `15,888 crore proposed to be provided for capitalisation. Possibility of creating a financial holding company to raise resources to meet the capital requirements of PSU Banks under examination A central ―Know Your Customer‖ depository to be developed in 2012-13 to avoid multiplicity of registration and data upkeep.
Priority Sector Lending
Revised guidelines on priority sector lending to be issued after stakeholder consultation.
Financial Inclusion
Out of 73,000 identified habitations that were to be covered under ―Swabhimaan‖ campaign by March, 2012; about 70,000 habitations have been covered. Rest likely to be covered by March 31, 2012. As a next step, Ultra Small Branches are being set up at these habitations. In 2012-13, ―Swabhimaan‖ campaign to be extended to more habitations
Regional Rural Banks
Out of 82 RRBs in India, 81 have successfully migrated to Core Banking Solutions and have also joined the National Electronic Fund Transfer system. Proposal to extend the scheme of capitalisation of weak RRBs by another 2 years to enable States to contribute their share
INFRASTRUCTURE AND INDUSTRIAL DEVELOPMENT
During Twelfth Plan period, investment in infrastructure to go up to `50 lakh crore with half of this, expected from private sector More sectors added as eligible sectors for Viability Gap Funding under the scheme ―Support to PPP in infrastructure‖. Government has approved guidelines for establishing joint venture companies by defence PSUs in PPP mode. First Infrastructure Debt Fund with an initial size of `8,000 crore launched earlier this month. Tax free bonds of `60,000 crore to be allowed for financing infrastructure projects in 2012-13 A harmonised master list of infrastructure sector approved by the Government. IIFCL has put in place a structure for credit enhancement and take- out finance for easing access of credit to infrastructure projects.
National Manufacturing Policy
National Manufacturing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 10 crore jobs.
Power and Coal
Coal India Limited advised to sign fuel supply agreements with power plants, having long-term PPAs with DISCOMs and getting commissioned on or before March 31, 2015. External Commercial Borrowings (ECB) to be allowed to part finance Rupee debt of existing power projects.
Transport: Roads and Civil Aviation
Target of covering a length of 8,800 kilometres under NHDP next year Allocation of the Road Transport and Highways Ministry enhanced by 14 per cent to `25,360 crore. ECB proposed to be allowed for capital expenditure on the maintenance and operations of toll systems for roads and highways, if they are part of original project. Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users. ECB to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US $ 1 billion. Proposal to allow foreign airlines to participate upto 49 per cent in the equity of an air transport undertaking under active consideration of the government
Delhi Mumbai Industrial Corridor
In September 2011 central assistance of `18,500 crore spread over 5 years approved. US $ 4.5 billion as Japanese participation in the project
Housing Sector
Various proposals to address the shortage of housing for low income groups in major cities and towns including allowing ECB for low cost housing projects and setting up of a credit guarantee trust fund etc
Fertilisers
Government has taken steps to finalise pricing and investment policies for urea to reduce India‘s import dependence in urea.
Textiles
Government has announced a financial package of `3,884 crore for waiver of loans of handloom weavers and their cooperative societies. Two more mega handloom clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighbouring districts in Jharkhand to be set up. Three Weaver‘s Service Centres one each in Mizoram, Nagaland and Jharkhand to be set up for providing technical support to poor handloom weavers. `500 crore pilot schemes announced for promotion and application of Geo-textiles in the North Eastern Region. A powerloom mega cluster to be set up in Ichalkaranji in Maharashtra with a budget allocation of `70 crore
Micro, Small and Medium Enterprises
'5,000 crore India Opportunities Venture Fund to be set up with SIDBI To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently. Policy requiring Ministries and CPSEs to make a minimum of 20 per cent of their annual purchases from MSEs approved. Of this, 4 per cent earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
AGRICULTURE
Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to `9,217 crore in 2012-13. Initiative of Bringing Green Revolution to Eastern India (BGREI) has resulted in increased production and productivity of paddy. Allocation for the scheme increased to `1,000 crore in 2012-13 from `400 crore in 2011-12. `300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY Remaining activities to be merged into following missions in Twelfth Plan: National Food Security Mission National Mission on Sustainable Agriculture including Micro Irrigation National Mission on Oilseeds and Oil Palm National Mission on Agricultural Extension and Technology National Horticultural Mission
National Mission for Protein Supplement
`2,242 crore projects launched with World Bank assistance to improve productivity in the dairy sector. `500 crore provided to broaden scope of production of fish to coastal aquaculture.
Agriculture Credit
Target for agricultural credit raised by `1, 00,000 crore to `5, 75,000 crore in 2012-13 Interest subvention scheme for providing short term crop loans to farmers at 7 per cent interest per annum to be continued in 2012-13. Additional subvention of 3 per cent available for prompt paying farmers. Short term RRB credit refinance fund being set up to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers. Kisan Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs
Agricultural Research
A sum of `200 crore set aside for incentivising research with rewards.
Irrigation
Structural changes in Accelerated Irrigation Benefit Programme (AIBP) being made to maximise flow of benefit from investments in irrigation projects. Allocation for AIBP in 2012-13 stepped up by 13 per cent to `14,242 crore. Irrigation and Water Resource Finance Company being operationalised to mobilise large resources to fund irrigation projects A flood management project approved by Ganga Flood Control Commission at a cost of `439 crore for Kandi sub-division of Murshidabad District
National Mission on Food Processing
A new centrally sponsored scheme titled ―National Mission on Food Processing‖ to be started in 2012-13 in co-operation with State Governments. Steps taken to create additional food grain storage capacity in the country
INCLUSION Scheduled Castes and Tribal Sub Plans
Allocation for Scheduled Castes Sub Plan at `37,113 crore in BE 2012-13 represents an increase of 18 per cent over BE 2011-12. Allocation for Tribal Sub Plan at `21,710 crore in BE 2012-13 represents an increase of 17.6 per cent.
Food Security
National Food Security Bill, 2011 is before Parliamentary Standing Committee. A national information utility for computerisation of PDS is being created. To become operational by December, 2012
Multi-sectoral Nutrition Augmentation Programme
A multi-sectoral programme to address maternal and child malnutrition in selected 200 high burden districts is being rolled out during 2012-13. Allocation of `15,850 crore made for Integrated Child Development Service (ICDS) scheme, representing an increase of 58 per cent over BE 2011-12. `11,937 crore allocated for National Programme of Mid Day Meals in schools. An allocation of `750 crore proposed for Rajiv Gandhi Scheme for Empowerment of Adolescent Girls, SABLA.
Rural Development and Panchayati Raj
Budgetary allocation for rural drinking water and sanitation increased from `11,000 crore to `14,000 crore representing an increase of over 27 per cent. Allocation for PMGSY increased by 20 per cent to Rs.24, 000 crore to improve connectivity. Major initiative proposed to strengthen Panchayats through Rajiv Gandhi Panchayat Sashaktikaran Abhiyan. Backward Regions Grant Fund scheme to continue in twelfth plan with enhanced allocation of `12,040 crore in 2012-13, representing an increase of 22 per cent over the BE 2011-12.
Rural Infrastructure Development Fund (RIDF)
Allocation under RIDF enhanced to `20,000 crore. `5,000 crore earmarked exclusively for creating warehousing facilities. EDUCATION
For 2012-13, `25,555 crore provided for RTE-SSA representing an increase of 21.7 per cent over 2011-12. 6,000 schools proposed to be set up at block level as model schools in Twelfth Plan. `3,124 crore provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA) representing an increase of 29 per cent over BE 2011-12. To ensure better flow of credit to students, a Credit Guarantee Fund proposed to be set up.
HEALTH
No new case of polio reported in last one year. Existing vaccine units to be modernised and new integrated vaccine unit to be set up in Chennai Scope of ‗Accredited Social Health Activist‘ – ‗ASHA‘ is being enlarged. This will also enhance their remuneration. Allocation for NRHM proposed to be increased from `18,115 crore in 2011-12 to `20,822 crore in 2012-13. National Urban Health Mission is being launched. Pradhan Mantri Swasthya Suraksha Yojana being expanded to cover upgradation of 7 more Government medical colleges
EMPLOYMENT AND SKILL DEVELOPMENT
MGNREGS has had a positive impact on livelihood security. Need to bring about greater synergy between MGNREGA and agriculture and allied rural livelihoods Allocation of `3915 crore made for National Rural Livelihood Mission representing an increase of 34 per cent. To ease access to bank credit, corpus for ‗Women‘s SHG‘s Development Fund‘ enlarged. Proposal to establish Bharat Livelihoods Foundation of India through Aajeevika scheme Allocation for Prime Minister‘s Employment Generation Programme increased by 23 per cent to `1,276 crore in 2012-13 Skill Development
Projects approved by National Skill Development Corporation expected to train 6.2 crore persons at the end of 10 years. `1,000 crore allocated for National Skill Development Fund in 2012- 13. To improve the flow of institutional credit for skill development, a separate Credit Guarantee Fund to be set up. ―Himayat‖ scheme introduced in J&K to provide skill training to 1 lakh youth in next 5 years, entire cost to be borne by Centre
SOCIAL SECURITY AND THE NEEDS OF WEAKER SECTIONS
Allocation under NSAP raised by 37 per cent to `8,447 crore in 2012- 13 In the ongoing Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme for BPL beneficiaries, pension amount to be raised from `200 to `300 per month Lump sum grant on the death of primary breadwinner of a BPL family, in the age group 18-64 years, doubled to `20,000. To enhance access under SWAVALAMBAN scheme, LIC appointed as an Aggregator and all Public Sector Banks appointed as Points of Presence (PoP) and Aggregators. Special grant provided to various universities and academic instiutions.
Security
A provision of `1, 93,407 crore made for Defence services including `79,579 crore for capital expenditure. Any further requirement to be met `1,185 crore proposed to be allocated for construction of nearly 4,000 residential quarters for Central Armed Police Forces. `3,280 crore proposed to be allocated for construction of office building of Central Armed Police Forces. Scheme to create National Population Register likely to be completed within next 2 years GOVERNANCE
UID-Aadhaar
Enrolment of 20 crore persons completed under UID mission, adequate funds to be allocated to complete enrolment of another 40 crore persons.
Black Money
Proposal to lay a White Paper on Black Money in current session of Parliament
Public Procurement Legislation
Bill regarding Public Procurement Legislation to be introduced in the Budget Session of the Parliament Legislative measures for strengthening anti-corruption framework are at various stages of enactment.
BUDGET ESTIMATES 2012-13
Gross Tax Receipts estimated at `10, 77,612 crore. Net Tax to Centre estimated at `7, 71,071 crore. Non-tax Revenue Receipts estimated at `1, 64,614 crore. Non-debt Capital Receipts estimated at `41,650 crore. Temporary arrangement to use disinvestment proceeds for capital expenditure in social sector schemes extended for one more year. Total expenditure for 2012-13 budgeted at `14, 90,925 crore. Plan expenditure for 2012-13 at `5, 21,025 crore is 18 per cent higher than BE 2011-12. This is higher than 15 per cent projected in Approach to the Twelfth Plan. 99 per cent of the total plan outlay met in the Eleventh Plan. Non-plan expenditure estimated at `9, 69,900 crore. `3, 65,216 crore estimated to be transferred to States including direct transfers to States and district level implementing agencies. Entire amount of subsidy is given in cash and not as bonds in lieu of subsidies. Fiscal deficit at 5.9 per cent of GDP in RE 2011-12 Fiscal deficit at 5.1 per cent of GDP in BE 2012-13. Net market borrowing required to finance the deficit to be `4.79 lakh crore in 2012-13. Central Government debt at 45.5 per cent of GDP in 2012-13 as compared to Thirteenth Finance Commission target of 50.5 per cent Effective Revenue Deficit to be 1.8 per cent of GDP in 2012-13
PART B — TAX PROPOSALS
DIRECT TAXES
Tax proposals for 2012-13 mark progress in the direction of movement towards DTC and GST. DTC rates proposed to be introduced for personal income tax. Exemption limit for the general category of individual taxpayers proposed to be enhanced from `1, 80,000 to `2, and 00,000 giving tax relief of`2,000 Upper limit of 20 per cent tax slab proposed to be raised from `8 lakh to `10 lakh. Proposal to allow individual tax payers, a deduction of upto `10,000 for interest from savings bank accounts. Proposal to allow deduction of upto `5,000 for preventive health check up Senior citizens not having income from business proposed to be exempted from payment of advance tax. To provide low cost funds to stressed infrastructure sectors, rate of withholding tax on interest payment on ECBs proposed to be reduced from 20 per cent to 5 per cent for 3 years for certain sectors. Restriction on Venture Capital Funds to invest only in 9 specified sectors proposed to be removed. Proposal to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies at a lower tax rate of 15 per cent upto 31.3.2013 Investment link deduction of capital expenditure for certain businesses proposed to be provided at the enhanced rate of 150 per cent. New sectors to be added for the purposes of investment linked deduction. Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an in house facility for a further period of 5 years beyond March 31, 2012 Proposal to provide weighted deduction of 150 per cent on expenditure incurred for agri-extension services. Proposal to extend the sunset date for setting up power sector undertakings by one year for claiming 100 per cent deduction of profits for 10 years Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from `60 lakhs to `1 crore Exemption from Capital Gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill development in manufacturing sector. Reduction in securities transaction tax by 20 per cent on cash delivery transactions Proposal to extend the levy of Alternate Minimum Tax to all persons, other than companies, claiming profit linked deductions. Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme Measures proposed to deter the generation and use of unaccounted money. A net revenue loss of `4,500 crore estimated as a result of Direct Tax proposals.
INDIRECT TAXES
Service Tax
Service tax confronts challenges of its share being below its potential, complexity in tax law, and need to bring it closer to Central Excise Law for eventual transition to GST. Overwhelming response to the new concept of taxing services based on negative list. Proposal to tax all services except those in the negative list comprising of 17 heads Exemption from service tax is proposed for some sectors. Service tax law to be shorter by nearly 40 per cent Number of alignment made to harmonise Central Excise and Service Tax. A common simplified registration form and a common return comprising of one page are steps in this direction. Revision Application Authority and Settlement Commission being introduced in Service Tax for dispute resolution Utilization of input tax credit permitted in number of services to reduce cascading of taxes. Place of Supply Rules for determining the location of service to be put in public domain for stakeholders‘ comments Study team to examine the possibility of common tax code for Central Excise and Service Tax New scheme announced for simplification of refunds. Rules pertaining to point of taxation are being rationalised. To maintain a healthy fiscal situation proposal to raise service tax rate from 10 per cent to 12 per cent, with corresponding changes in rates for individual services. Proposals from service tax expected to yield additional revenue of `18,660 crore.
Other proposals for Indirect Taxes
Given the imperative for fiscal correction, standard rate of excise duty to be raised from 10 per cent to 12 per cent, merit rate from 5 per cent to 6 per cent and the lower merit rate from 1 per cent to 2 per cent with few exemptions. Excise duty on large cars also proposed to be enhanced. No change proposed in the peak rate of customs duty of 10 per cent on non-agricultural goods. To stimulate investment relief proposals for specific sectors - especially those under stress.
Agriculture and Related Sectors
Basic customs duty reduced for certain agricultural equipment and their parts; Full exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects upto March 31, 2015.
Infrastructure Proposal for full exemption from basic customs duty and a concessional CVD of 1 per cent to steam coal till 31st March, 2014. Full exemption from basic duty provided to certain fuels for power generation.
Mining
Full exemption from basic customs duty to coal mining project imports. Basic custom duty proposed to be reduced for machinery and instruments needed for surveying and prospecting for minerals.
Railways
Basic custom duty proposed to be reduced for equipments required for installation of train protection and warning system and upgradation of track structure for high speed trains.
Roads
Full exemption from import duty on certain categories of specified equipment needed for road construction, tunnel boring machines and parts of their assembly
Civil Aviation
Tax concessions proposed for parts of aircraft and testing equipment for third party maintenance, repair and overhaul of civilian aircraft.
Manufacturing
Relief proposed to be extended to sectors such as steel, textiles, branded readymade garments, low-cost medical devices, labour- intensive sectors producing items of mass consumption and matches produced by semi-mechanised units.
Health and Nutrition
Proposal to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/CVD to 6 specified life saving drugs/vaccines. Basic customs duty and excise duty reduced on Soya products to address protein deficiency among women and children. Basic customs duty and excise duty reduced on Iodine. Basic customs duty reduced on Probiotics.
Environment
Concessions and exemptions proposed for encouraging the consumption of energy-saving devices, plant and equipment needed for solar thermal projects. Concession from basic customs duty and special CVD being extended to certain items imported for manufacture for hybrid or electric vehicle and battery packs for such vehicles. Proposal to increase basic customs duty on imports of gold and other precious metals
Additional resource mobilisation
Proposals to increase excise duty on ‗demerit‘ goods such as certain cigarettes, hand-rolled bidis, pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco. Cess on crude petroleum oil produced in India revised to `4,500 per metric tonne. Basic customs duty proposed to be enhanced for certain categories of completely built units of large cars/MUVs/SUVs.
Rationalization measures
Excise duty rationalised for packaged cement, whether manufactured by minicement plants or others. Levy of excise duty of 1 per cent on branded precious metal jewellery to be extended to include unbranded jewellery. Operations simplified and measures taken to minimise impact on small artisans and goldsmiths. Branded Silver jewellery exempted from excise duty Chassis for building of commercial vehicle bodies to be charged excise duty at an ad valorem rate instead of mixed rate Import of foreign-going vessels to be exempted from CVD of 5 per cent retrospectively Duty-free allowances increased for eligible passengers and for children of upto 10 years. Proposals relating to Customs and Central excise to result in net revenue gain of `27,280 crore Indirect taxes estimated to result in net revenue gain of `45,940 crore. Net gain of `41,440 crore in the Budget due to various taxation proposals THE PLANNING COMMISSION
The Planning Commission is the supreme organ for planning social and economic development in India. It was established on March 15, 1950. The Prime Minister of India is the ex-officio Chairman of Planning Commission. The committee members also appoint a Deputy Chairman, who is the de-facto executive head of the Commission and enjoys the rank of a Cabinet Minister.
The Cabinet Ministers with certain important portfolios act as part-time members of the Commission, while the full-time members are experts from various fields like Economics, Industry, Science and General Administration.
The commission works through the following divisions l General Planning Divisions l Special Planning Divisions l Programme Administration Divisions
The majority of experts in the commission are economists, making the commission the biggest employer of the Indian Economic Services.
Five Year Plans The Indian Economy is based on the concept of planning. This is carried through the five-year plans, developed, executed and monitored by the Planning Commission. The First Five Year plan was implemented in 1951. The Tenth plan is currently underway. l First Five Year Plan (1951-56) – The first plan aimed at correcting the distortions caused to the economy after the World War II. l Second Five Year Plan (1956-61) – The second plan aimed at a pattern of development leading to a ‘socialist society’ framework for the economy. l Third Five Year Plan (1961-66) – The third plan aimed at achieving the goals enlisted in the first two plans and also aimed at achieving self-sufficiency in foodgrains, increase employment oppurtunities and expand basic and heavy industries. l Three Annual Plans (1966-69) l Fourth Five Year Plan (1969-74) – The objectives of the fourth plan were to achieve self-reliance, and give priority to agriculture, promote industrial production and exports. l Fifth Five Year Plan (1974-79) – The fifth five year plan aimed at removal of poverty, attaining economic self reliance and increasing employment oppurtunities in the country. l Sixth Year Plan (1979-85) – The sixth plan aimed at achieving a annual growth rate of 5.2 per cent and raising the per capita income by 3.3 per cent. l Seventh Five Year Plan (1985-90) – The plan focussed on policies and programmes to increase domestic industrial productivity, employment oppurtunities, and agriculture productivity by increasing the basic framework and by adopting modern technologies. l Annual Plans 1990-92 l Eighth Five Year Plan (1992-97) – The plan aimed at achieving a higher outlay of public sector enterprises to meet the demands of various central and state sectors. l Ninth Five Year Plan (1997-02) – The plan aimed to achieve an anual growth rate of 6.5 per cent. The total public sector outlay was Rs. 859000 crore. l Tenth Five Year Plan (2002-07) – This plan has adopted an aggressive approach. This plan aims at achieving 8 per cent GDP growth, reduce the poverty ratio to 20 per cent, increase the literacy rate to 72 per cent, reduce the infant mortality rate to 45 per 1000 births and clean all major polluted rivers till the end of the plan in 2007. l Eleventh Five Year Plan (2007-12) – This plan aims to accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016- 17,increase literacy rate for persons of age 7 years or more to 85%, reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births and ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.
THE MONETARY POLICY
The Monetary Policy, as the name suggests, is the policy used as a tool to regulate the supply of money in the economy. The basic task of a monetary policy in a developing economy is to meet the credit needs of the growth sectors on the one hand and to curb the supply of money meant to be used in non - productive activities like speculative dealings, headging etc. In India, the monetary policy is regulated by the Reserve Bank of India (RBI). The policy in India is designed on the principles mentioned above and exercises various quantitative controls to make the policy effective. The policy is therefore also referred to as the policy of ‗Controlled Monetary Expansion‘ which implies i. Expansion in the supply of money. ii. Restraint on secondary expansion of credit.
The Monetary Policy thus helps the government to exercise control over the money supply in the economy.
THE FISCAL POLICY The fiscal policy helps the government exercise a control over the fiscal deficit i.e. the difference between the total revenue earned and the total expenditure incurred by the government. A rise in the fiscal deficit implies a higher borrowing for the government from the RBI. The economic impact of such borrowing is that the money supply in the economy decreases.
The pressure on the money supply leads to an increase of prices i.e. an inflationary situation. So the government, through a proper fiscal policy tries to maximize revenue sources (taxes) and reduce expenditure, thereby reducing fiscal deficits.
THE MAJOR PUBLIC SECTOR FINANCIAL INSTITUTIONS
1. The Reserve Bank of India (RBI) The Reserve Bank of India (RBI) was set up in April 1935, with its central office at Calcutta (Kolkata) under the Reserve Bank of India Act of 1934, but was permanently moved to Mumbai in 1937. Though originally privately owned, since nationalization in 1949, the RBI is fully owned by Government of India. Presently, RBI is the central bank of India. It issues notes, buys and sells government securities, regulates the volume of what direction and cost of credit, manages foreign exchange, supports other financial institutions and comes out with the Monetary Policy. The RBI is presently headquartered at Mumbai and the present RBI governor is Dr. Duruvi Subbarao.
2. The Small Industrial Development Bank of India (SIDBI) SIDBI was established on April 2, 1990. The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be ―the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto. In the SIDBI charter,four basic objectives were set out. They are Financing, Promotion, Development, Coordination, for orderly growth of industry in the small scale sector. The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million. About 3.1 million such units, employing 17.2 million persons account for a share of 36 per cent of India‘s exports and 40 per cent of industrial manufacture. In addition, SIDBI‘s assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures. Mr. Rajendra Mohan Malla is the present chairman and managing director of the SIDBI.
3. The Industrial Development Bank of India (IDBI) IDBI was established on July 1, 1964, by an act of the Parliament as a wholly owned subsidiary of the Reserve Bank of India, to catalyze the development of a diversified and efficient industrial structure in the country, in tune with national priorities. In 1976, the ownership was transferred from the RBI to the Government of India. The current Government holding in IDBI is about 53%. IDBI is currently the tenth largest development bank in the world. It financed some well-known institutes in India like, the National Stock Exchange of India (NSE), the National Securities Depository Services Ltd. (NSDL), and the Stock Holding Corporation of India (SHCIL). To meet the emerging challenges and to keep up with reforms in the financial sector, IDBI converted into a banking company in 2004, to undertake an entire gamut of banking activities. Mr. Yogesh Agarwal is the present Chairman and Managing Director of the IDBI bank. 4. The National Bank for Agriculture and Rural Development (NABARD) NABARD was established on 12th July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and the Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India, and the Agricultural Refinance and Development Corporation (ARDC).
The following functions are performed by NABARD i. Serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas. ii. Takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc. iii. Co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with the Government of India, State Governments, the Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation. iv. Undertakes monitoring and evaluation of projects refinanced by it.
Shri Umesh Chandra Sarangi is the present chairman of NABARD.
ECONOMIC LIBERALISATION (1991)
The economic liberalisation of 1991 was initiated by the then Indian Prime Minister, Mr. P. V. Narasimha Rao and his Finance Minister, Mr. Manmohan Singh in response to a balance-of-payments crisis being faced by the country. The new economic framework adopted by the government did away with the Licence Raj (investment, industrial and import licensing) system and ended many public monopolies. The policy aimed at allowing foreign direct investment (FDI) in many sectors of the economy. Even though the foreign direct investment ceiling was removed by the government in 1991, it was only in 1996 that foreign investors started showing confidence in the Indian economy and large sectors saw the inflow of foreign capital.
Since then, the overall direction of liberalisation has remained the same, irrespective of the ruling party, although no party has yet tried to take on powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies.
IMPORTANT SECTORS OF INDIAN ECONOMY
1. AGRICULTURE
i) Contribution to GDP
Agriculture forms the backbone of Indian economy. it contributes approx. 26
percent of Gross Domestic Product. It was 55.4 percent in 1950-51.
Though the agriculture in national income has come down, even now agriculture contributes a major share of the national income in India.
Further, the share of agriculture in manufacturing and services sector is increasing.
ii) Source of Employment
Agriculture provides employment to around 65 percent of the total work-
force of the country.
iii) Source of Industrial Development
Agriculture has been the source of supply of raw material to our leading
industries.
Many of our small and cottage industries like handloom, weaving, oil
crushing, rice husking, etc. depends on agriculture.
Green Revolution Indian Green Revolution is associated with the use of HYVS (High Yielding Variety Seeds). Chemical fertilizers and new technology led to a sharp rise in agricultural production during the middle of 1960.
The term Green Revolution was given by Americal Scientist, Dr. William Gande.
During the middle of sixties, Indian agriculture scientists developed a number of new high yielding varieties of wheat by processing wheat seeds imported from Mexico. A similar improvement in variety of rice was also observed.
The credit of this goes not only to Nobel Laureate Dr. Norman Borlaug. But also to Dr. M.S. Swaminathan. Dr. M.S. Swaminathan is also known as the father of the Green Revolution in India.
Second Green Revolution Of all the plans, the sixth five-year plan was hailed as a great success on the agriculture front. As against the expected annual growth of 3.8 percent for agriculture, the actual growth rate was 4.3 percent. The production of food grains in 1983-84 was 152 million tones and was hailed by the Government as the Second Green Revolution.
While the first Green Revolution from 1967-68 arose from the introduction of HYVS of Mexican wheat and rice, the second Green Revolution from 1983-84 was said to be for the extension in supplies of inputs and services to farmers, agricultural extension and better management.
While the first Green Revolution was confirmed mainly to Punjab, Haryana, and Western Uttar Pradesh, the second Revolution has spread to the entire North India.
Other Revolutions
Revolution Area
Yellow Revolution Oil Seeds
White Revolution Milk
Blue Revolution Fish
Pink Revolution Shrimp
Grey Revolution Egg
Golden Revolution Horticulture
IMPORTANT INDUSTRIES OF INDIA
1. LARGE SCALE INDUSTRIES i) Iron and Steel Industries:
Ist Steel Industry at Kulti near Jhari, West Bengal
Ist large scale steel plant - TISCO at Jamshedpur in 1907 followed by IISCO at Bumpur in
1919. Both belonged to private sector.
The first public sector unit was ‘Vishveshvaraya Iron and Steel Works’ at Bhadrawati
Public Sector Steel Plants
Location Assistance
1. Rourkela (Orissa) Germany
2. Bhilai (Madhya Pradesh) Russian Govt.
3. Durgapur (West Bengal) Britain Govt.
4. Bokaro (Jharkhand) Russian Govt.
Acquired by 5. Burnpur (West Bengal) Private sector in 1976
Vishakhapatnam (Andhra 6. Russian Govt. Pradesh)
7. Salem (Tamilnadu)
8. Vijai Nagar (Karnataka)
9. Bhadrawati (Karnataka)
Nationalization of Vishveshvaraya Iron and Steel
Ltd.
(Owned by Central and State Government)
All these are managed by SAIL. (At present all important steels except TISCO, are under Public Sector). Steel Authority of India Limited (SAIL) was established in 1974 and was made responsible for the development of the steel Industry. Bhilai, Durgapur and Rourkela were established during the Second Five Year Plan. Bokaro was established during the Third while the steel plants at Salem, Vijay Nagar, and Vishakhapatnam were established in the Fourth Five Year Plant. Presently India is the 8th largest steel producing country in the world. ii) Jute Industry : Jute industry is an important industry for a country like India, because not only does it earn foreign Exchange but also provides substantial employment opportunities in agriculture and industrial sectors. Its first modernized industrial unit was established at Reshra in West Bengal in 1855. There are at present 73 jute mills in India, out of which West Bengal has 59 mills, Bihar 3 mills, Uttar Pradesh 3 mills, Andhra Pradesh 4 mills and Assam, Tripura, Orissa and Madhya Pradesh one each. The Jute Industry in the Country is traditionally export oriented. India ranks number one in raw jute and jute goods production and number two in export of jute goods in the world. iii) Cotton and Textile Industry : Oldest industry of India, and employs largest number of workers. It is the largest organized and broad-based industry which accounts for about 4 percent of GDP, 20 percent of manufacturing value added and one-third of total export earnings. The first Indian modernized cotton cloth mill was established in 1818 at Fort Gloaster near Kolkata but this mill was not successful. The second mill named ‗Bombay Spinning and Weaving Co.‘ was established in 1854 at Bombay by K.G.N. Daber. iv) Sugar Industry : Sugar Industry is the second largest industry after cotton textile industry among agriculture based Industries in the country. There are more than 500 installed sugar factories in the country. This industry provides not only employment to a substantial number of persons but also holds the potential of developing other industries related to its by-products. India is now the largest producer and consumer of sugar in the world. Maharashtra contributes over one-third of the total sugar output, followed closely by Uttar Pradesh, Tamil Nadu and Karnataka are the other important producers of sugar. v) Fertilizer Industry : India is the third largest producer of nitrogeneous fertilizers in the world. There are at present, 57 fertilizer units manufacturing a wide range of nitrogeneous and complex fertilizers, including 29 units producing urea and 9 units producing ammonium sulphate as a by-product. vi) Paper Industry : The first mechanized paper mill was set-up in 1812 at Serampur in West Bengal. The Paper Industry in India is ranked among the 15 top global paper industries. vii) Silk Industry : India is the second largest (first being China) country in the world in producing natural silk. At present, India produces about 16 percent silk of the world. India enjoys the distinction of being the only country producing all the five known commercial varieties of silk, viz. Mulberry, Troical rassal, Oak Tussar, Eri and Muga. viii) Petroleum and Natural Gas : First successful oil well was dug in India in 1889 at Digboi, Assam. For exploration purpose, Oil and Natural Gas Commission (ONGC) was established in 1956 at Dehradun, Uttranchal. The total oil reserves in India have been estimated to be about 13 crore tones. Domestic production of oil in India is much less to meet the domestic demand. India currently produces just over 32 million tones of crude oil against it annual demand of 105 million tones meeting only 30.5 percent of demand from domestic resources.
Marketing and Distribution of Petroleum Products a) Bharat Petroleum Corporation Ltd. (BPCL): By acquisition of Burmah Shell in 1976. b) Hindustan Petroleum Corporation Ltd. (HPCL): Established in 1974 by acquiring the assets of US company ESSO Eastern. In 1976, Government acquired Caltex Oil Refining Ltd. and merged it with HPCL. c) Gas Authority of India Ltd. (GAIL): Established in 1984 for handling post-exploration activities relating to natural gas. The company was assigned the priority task of setting up the cross country HBJ (Hazira, Bijapur, and Jagdishpur) pipeline. Presently GAIL is the largest company in India for marketing of natural gas. NAVRATNAS
In 1997, the Government identified nine leading, well performing and high profit making public enterprises as Navratnas (Nine Precious Jewels). Later, on the same year, two more were added to the list. They have been given special powers including freedom to form new joint ventures, make new investments and authorized to raise money.
1. Indian Oil Corporation Ltd. (IOC)
2. Bharat Petroleum Corporation Ltd. (BPCL)
Hindustan Petroleum Corporation Ltd. 3. (HPCL)
Oil and Natural Gas Corporation Ltd. 4. (ONGC)
Indian Petrochemicals Corporation Ltd. 5. (IPCL)
6. Steel Authority of India Ltd. (SAIL)
National Thermal Power Corporation Ltd. 7. (NTPC)
8. Bharat Heavy Electronics Ltd. (BHEL)
9. Videsh Sanchar Nigam Ltd. (VSNL)
10. Mahangar Telephone Nigam Ltd. (MTNL)
11. Gas Authority of India Ltd. (GAIL)
Two of these Navratnas, IPCL and VSNL, have been privatized.
INSURANCE
Insurance has been an important part of the Indian financial system. Until recently, insurance services were provided by the public sector, i.e. life insurance by the Life Insurance Corporation of India and general insurance by the General Insurance Corporation and its four Subsidaries. This insurance industry was opened to the Private sector in August 2000. After the opening, 12 new companies have entered life segment and 9 companies in the non life segment.
1. Life Insurance Corporation (LIC)
Established : Sept, 1956
Head Office : Mumbai
7 (Mumbai, Kolkata, Delhi, Chennai, Zonal Offices : Kanpur, Hyderabad, Bhopal)
2. General Insurance Corporation (GIC)
Established : Jan 1, 1973
It has four subsidiary companies:
1.National Insurance Company Ltd., Kolkatta
2.The New India Assurance Co. Ltd., Mumbai
3.The Oriental Fire and General Insurance Co.Ltd., New Delhi
4.United India Fire and General Insurance Co. Ltd., Chennai.
STOCK EXCHANGES
Stock exchange or share market plays a dominant role in mobilizing resources for corporate sector. It is a market for dealing in shares, debentures and financial securities. In the stock exchange, shares and debentures are bought and sold for investment as well as for speculative purposes. There are 24 stock exchanges in the country. CENSUS-2001
Total Population : 1,02,70,15,247
Males : 531,277,078
Females : 495,738,169
Population Growth : 21.34% Males : 20.93%
Females : 21.70%
Average Yearly Growth Rate : 1.93%
Density of population : 324
Sex Ratio : 933
Literacy Rate : 65.38
Males : 75.85
Females : 54.16
Life Expectancy : 62 years
Child Population : 15.42%
TOP STATES IN IMPORTANT PARAMETERS
MAXIMUM POPULATION
Uttar Pradesh : 16.6 crore
Maharashtra : 9.7 crore
Bihar : 8.3 crore
West Bengal : 8.0 crore
Andhra Pradesh : 7.6 crore
MINIMUM POPULATION
Sikkim : 5.4 lakh
Mizoram : 8.9 lakh Arunachal Pradesh : 10.9 lakh
Goa : 13.4 lakh
Nagaland : 19.8 lakh
MAXIMUM DECADAL GROWTH RATE
Nagaland : 64.41
Sikkim : 32.98
Manipur : 30.02
Jammu and Kashmir : 29.04
Meghalaya : 29.94
MAXIMUM POPULATION DENSITY
West Bengal : 904
Bihar : 880
Kerala : 819
Uttar Pradesh : 689
Punjab : 482
MINIMUM POPULATION DENSITY
Arunachal Pradesh : 13
Mizoram : 42
Sikkim : 76
Jammu and Kashmir : 99 Meghalaya : 103
MAXIMUM SEX RATIO
Kerala : 1058
Chhatisgarh : 990
Tamilandu : 986
Andhra Pradesh : 978
Manipur : 978
MINIMUM SEX RATIO
Haryana : 861
Punjab : 874
Sikkim : 875
Uttar Pradesh : 898
Jammu and Kashmir : 900
MAXIMUM LITERACY RATE
Kerala : 90.92
Mizoram : 88.49
Goa : 82.32
Maharashtra : 77.27
Himachal Pradesh : 77.13
MINIMUM LITERACY RATE Bihar : 47.53
Jharkhand : 54.13
Jammu and Kashmir : 54.74
Uttar Pradesh : 57.36
MAXIMUM FEMALE LITERACY RATE
Kerala : 87.86
Mizoram : 86.13
Goa : 75.51
Himachal Pradesh : 68.08
Maharashtra : 67.57
MINIMUM FEMALE LITERACY RATE
Bihar : 33.57
Jharkhand : 39.38
Jammu and Kashmir : 41.82
Uttar Pradesh : 42.98
Arunachal Pradesh : 44.24
MAXIMUM URBAN POPULATION (%)
Goa : 49.77
Mizoram : 49.5
Tamilnadu : 43.86
Maharashtra : 42.4 Gujarat : 37.35
MINIMUM URBAN POPULATION(%)
Himachal Pradesh : 9.79
Bihar : 10.47
Sikkim : 11.1
Assam : 12.72
Orissa : 14.97
IMPORTANT PARAMETERS OF UNION TERRITORIES
TOTAL POPULATION
Delhi : 1.3 crore
Pondicherry : 9.7 lakh
Chandigarh : 9.0 lakh
Andaman and Nicobar : 3.5 lakh
Dadra and Nagar Haveli : 2.2 lakh
Lakshadweep : 0.6 lakh
POPULATION DENSITY
Delhi : 9294
Chandigarh : 7903
Pondicherry : 2029 Lakshadwep : 1894
Daman and Diu : 1411
Dadar and Nagar Haveli : 449
Andaman and Nicobar : 43
SEX RATIO
Pondicherry : 1001
Daman and Diu : 989
Lakshadweep : 947
Andaman and Nicobar : 846
Delhi : 821
Dadar and Nagar Haveli : 811
Chandigarh : 773
LITERACY RATE
Lakshadweep : 87.52
Delhi : 81.82
Chandigarh : 81.76
Pondicherry : 81.49
Andaman and Nicobar : 81.18
Daman and Diu : 81.09
Dadar and Nagar Haveli : 60.03
CENSUS-2011 Provisional Data
Population Persons 1210.2 million Males 623.7 million Females 586.5 million
2001-2011 Difference % Growth Persons 17.64 Males 17.12 Females 18.12
Top 5 States/UTs Uttar Pradesh Maharashtra Bihar West Bengal Andhra Pradesh
Bottom 5 States/UTs Lakshadweep Daman & Diu D. & N. Haveli A. & N. Islands Sikkim
Population Highlights The population of India has increased by more than 181 million during the decade 2001-2011
The absolute addition is slightly lower than the population of Brazil, the fifth most populous 10 country in the world!] The population of India, at 1210.2 million, is almost equal to the combined population of U.S.A., Indonesia, Brazil, Pakistan, Bangladesh and Japan put together (1214.3 million)! 2001-2011 is the first decade (with the exception of 1911-1921) which has actually added lesser population compared to the previous decade. The percentage decadal growth during 2001-2011 has registered the sharpest decline since Independence - a decrease of 3.90 percentage points from 21.54 to 17.64 percent. Uttar Pradesh (200 million) is the most populous State in the country - population is more than the population of Brazil. Uttar Pradesh and Maharashtra (312 million), is greater than the population of USA
Sex Ratio 2001 Sex Ratio 933 2011 Sex Ratio 940
Overall Sex ratio at the National level has increased by 7 points since Census 2001 to reach 940 at Census 2011 This is the highest Sex Ratio recorded since Census 1971 and a shade lower than 1961 Increase in Sex Ratio is observed in 29 States/UTs Three major States (J&K, Bihar & Gujarat) have shown decline in Sex Ratio as compared to Census 2001.
Literacy % Growth 2001-2011 Persons 38.82 Males 31.98 Females 49.10
As per provisional population totals of Census 2011, literates constitute 74 per cent of the total population aged seven and above and illiterates form 26 per cent. Literacy rate has gone up from 64.83 per cent in 2001 to 74.04 per cent in 2011 showing an increase of 9.21 percentage points.
Source: http://censusindia.gov.in/2011-prov- results/data_files/india/pov_popu_total_presentation_2011.pdf