Business Updates The Economic Times Awards For Corporate Excellence 2006-07

Business Leader Businesswoman Company of Business Entrepreneur of the Year of the Year the Year Reformer of the Year

K.V. Kamath Shobhana Bhartia Praful Patel G.M. Rao ICICI Bank HT Media Bharti Airtel Civil Aviat. Minister GMRGroup

Policy Change Lifetime Global Corporate Emerging Company Agent Achievement Indian Citizen of the Year

M.Damodaran N.R.Narayana Rajat Gupta Sankara Glenmark SEBI Murthy McKinsey & Co. Nethralaya Pharmaceuticals

The Economic Times Awards, one of the country's most prestigious awards presented every year to leading corporates, business leaders and entrepreneurs, were conferred on the outstanding awardees in different categories in a ceremony in Bengaluru on October 4, 2007. Talent Management, expansion on global scale and flawless execution emerged as the leitmotif of the 2006-07 awards for corporate excellence.

Sensex touches 20,000-mark supported the Indian bourses to surge Maiden commercial flight of the The Sensex touched the historic and broader markets also participated Airbus A380 figure of 20,000 on October 29, 2007, in the rally. The BSE capital goods in the third biggest single day gain for index gained 7 percent and the BSE The Airbus A380, the world's largest the BSE 30-share index. The rally of Bankex was up by 4 percent, while the commercial jetliner, made history on 1-3 percent in other Asian markets also BSE oil and gas index gained 5 percent. October 25, 2007, with its maiden flight

1 from Singapore to Sydney. The Based on the closing share prices of Abatement rate raised for tour Singapore Airlines flight, which took off various group companies such as RIL, operators’ services from Changi airport in the morning, Reliance Petroleum, IPCL and Reliance landed several hours later in Sydney Industrial Infrastructure, Mr. Ambani was The Centre on August 23, 2007, hiked thereby scripting a new era in the estimated to have held shares worth $ the rate of abatement from 60 percent to history of aviation. On board the flight 50.1 billion (about Rs. 2,00,000 crore) 75 percent for the purpose of calculating were a crew of 30 including four pilots through promoter holdings in these the service tax payable by tour operators and over 450 passengers from 35 companies. on ‘package tour’ services. With the countries. Earlier, tickets for the flight were sold in an online auction which Central Board of Excise and Customs raised $1.3 million for charity. Mr. Julian Four Indian-Americans make it to (CBEC) issuing an amendment Hayward, who paid more than $100,000 Forbes list notification to this effect, tour operators for a pair of first-class suites, was the henceforth will be required to pay service top bidder while Mr. Georg Burdicek, Four Indian-Americans – acoustics tax only on 25 percent instead of the earlier who paid $560 for an economy seat, got pioneer Mr. Amar Bose, Google founder 40 percent of the gross amount charged the cheapest ticket. director Mr. Kavitark Shriram, venture on customers for such package tours. capitalist Mr. Vinod Khosla and Mr. Bharat Desai, CEO of an info-tech outsourcing Taj Hotels Partners Okura of Japan firm – have made it to the Forbes list of richest Americans. In the list released on Taj Hotels Resorts and Palaces and September 21, 2007, Mr. Bose shares the Okura Hotels and Resorts, one of the 271st place with Mr. Shriram with a net largest international hotel groups in Japan, worth of $1.8 billion. Mr. Desai and on September 4, 2007, entered into a Mr. Khosla are ranked 286th and 317th, strategic joint marketing alliance to The inaugural commercial flight of respectively, in the list. develop cross-promotional opportunities the double-decker Airbus A380 has put an for both companies to harness each end to the nearly 37-year hegemony of other’s strengths in their respective the Boeing 747 jumbo jet as the most India signs MoU with Bangladesh markets of dominance. Under the alliance, spacious passenger aircraft. Generally, the Taj Hotels and Okura Hotels have agreed Boeing 747 jumbo jet carries about 400 India has signed a Memorandum of to implement reciprocated points in each passengers whereas the A380 is capable of Understanding (MoU) with Bangladesh carrying as many as 853 passengers in an loyalty programme – the Taj Inner Circle on September 16, 2007 in Dhaka on all-economy class configuration. However, and the Okura Club, wherein both hotel procedural arrangements for importing for its historic first flight, Singapore chains will allow guests to earn and burn Airlines (SIA), regarded as one of the best eight million duty-free apparel articles points at the participating hotels. in the world, preferred a configuration of under South Asian Free Trade Area 471 passengers divided into three classes (SAFTA). The MoU allows India to import Bharti, Wal-Mart form Wholesale including 12 in Singapore Airlines suites, apparel items from Bangladesh without Venture 60 in business class and 399 in economy any conditionality of sourcing of fabric or class. port restrictions. Bharti Enterprises and Wal-Mart The A380 is as tall as a seven-story Stores Inc. announced on August 6, 2007 building with each wing big enough to India & Japan to sign currency hold 70 cars. It is also the most fuel a 50 : 50 joint venture to form Bharti swap pact efficient and quietest passenger jet ever Wal-Mart Private Ltd. for their wholesale built to this date. The plane is powered cash-and-carry and back-end supply chain by four Rolls Royce Trent 900 engines. During his visit to India, Japanese management operations in India. Prime Minister Mr. Shinzo Abe, on August Through the new venture, the company Mukesh Ambani becomes the 22, 2007, proposed to sign a bilateral would serve neighbourhood kirana richest Indian agreement on currency swap that will add stores, fruits and vegetable resellers, to a regional network of such accords restaurants and caterers and other Chairman, designed to provide emergency financial business owners, besides other retailers Mr. Mukesh Ambani has overtaken NRI liquidity to either or both parties in times including Bharti Retail, which would be steel tycoon Mr. Lakshmi Mittal to become of currency market or other turbulence. soon opening its stores in India. The the richest Indian in the world. Mr. Mr. Abe said that his government is new venture would also provide small Ambani's net worth has soared past $50 billion, making him the first Indian and committed to assist India in infrastructure retailers and other business owners a only the fourth person after Mr. Bill Gates, development, particularly the Delhi- wide range of quality products at Mr. Carlos Slim Helu and Mr. Warren Mumbai and Delhi-Kolkata dedicated competitive prices thereby helping them Buffett to have a wealth higher than this freight corridors and Delhi-Mumbai to grow their business and increase amount. Industrial Corridor (DMIC). profitability.

2 Dream launch of 787 Dreamliner monitoring of the performance of Millionaire club swells to over Ahmedabad spot commodity exchange, 100,000 in India the company will launch others in Rajasthan and Maharashtra. The MCX As per a recent study released on is India’s largest commodity exchange. June 29, 2007 by Merrill Lynch and It has appointed Neutron Electronic Capgemini, the number of high net System, a communication technology worth Indians grew the second fastest solutions provider, as its technology in the world in 2006 with a 20.5 percent partner. Such a partnership would rise admist a strong performance by enhance MCX to enhance its video based stocks and property markets. The interactivity programme and also number of High Net Worth Individuals organise the existing and potential (HNWI), with a net asset of atleast $1 stakeholders in the commodities trading million, increased by 20.5 percent to 787 Dreamliner, the new passenger system. This would be possible through 100,015 in India in 2006, second only jet from Boeing Co., made a debut various training programmes. In fact, after 21.2 percent growth in Singapore. display in front of the company’s 15,000 such a move will enhance efficiency and Besides India, countries like Australia, employees at the aircraft manufacturer’s responsiveness. Brazil, Canada, China, Germany, Russia, plant at Everett, near Seattle, USA on the UK, and the US also have more July 8, 2007. The much-hyped mid-sized, L&T to develop an IT Park in than one lakh people with at least one long-range aircraft is built with 50 Tamil Nadu million dollars in net assets, excluding percent carbon composite materials and Larsen & Toubro and Arun Excello their primary residence and 15 percent titanium, making it much have announced that they would develop consumables. The number of Indian lighter and fuel efficient than existing an IT park as part of its proposed millionaires stood at about 83,000 in aircrafts of the same size. The integrated township at Vallancheri in 2005. Dreamliner is Boeing’s first new model Tamil Nadu. This proposed park has in 13 years featuring a speciality of been given the SEZ (Special Economic IBM launches ‘Project Big Green’ lightweightness, whose newly designed Zone) status. It has been named as IT engines are made by General Electric SEZ, ESTANCIA. The total investment Leading information technology Co. and Rolls-Royce Plc that will help in the proposed integrated township company International Business Machine save about 20 percent on fuel costs. would be around Rs. 1,500 crore. This (IBM) has announced ‘Project Big IT township will consist of residential Green’ in India that will help companies ONGC to produce Gas from KG apartments and retail space. reduce their energy consumption by Basin by 2012 almost 50 percent. Under the project, AV Birla Group launches IBM will be launching new products and services that will help reduce data Oil and Natural Gas Corporation Retailing Brand centres’ energy consumption turning (ONGC) has drawn up plans to begin The has stepped them into ‘green’ data centres. IBM has production from its Krishna Godavari into the retailing segment with the launched this initiative as part of the Basin block off the East Coast by 2012. launch of Aditya Birla Retail that will global ‘Intelligent Energy’ campaign, It has tied up with GAIL (India) Ltd. operate under the brand name ‘More’. aimed at helping economies cope with for transportation and marketing of the The retailing venture will operate under the existing and impending energy gas. After signing an agreement with two formats – Hyper markets and Super crisis. GAIL for monetising of the reserves on markets. The company will provide July 24, 2007, ONGC Chairman and multi-shopping formats through a series L&T Infotech to invest Rs. 1,000 Managing Director, Mr. R.S. Sharma said of conveniently located neighbourhood crore the corporation estimated an initial supermarkets that would stock the daily output of 12 million standard cubic and weekly household shopping needs metres a day from the KG-DWN-98/2 and destination hypermarkets that cater block in 2012. to monthly and event-based shoping needs. The first supermarkets under NSEL to launch the country’s first the ‘More’ brand would open shortly in Spot Commodity Exchange Pune and then expand quickly to other major cities. He also said the investment The National Spot Exchange in the first three years would be between (NSEL), which is an arm of the Multi Rs. 8,000 and Rs. 9,000 crore, which will Commodity Exchange (MCX), will be financed through a mix of debt and launch its first spot exchange in equity. All stores would be owned stores Ahmedabad. This will be the first virtual and the investment in retailing would spot commodity exchange in the country. not be from any of the listed Aditya It has been decided that after the Birla Group companies.

3 L&T Infotech, the IT arm of Larsen value of overseas sales. The net worth over half at about Rs. 1,30,000 & Toubro, will invest about Rs. 1,000 income climbed to Rs. 1,170 crore crore. The total investor’s wealth in the crore for expansion in the next three to ($280 million) for the three months four Anil Ambani Group firms viz., four years and is expecting to accumulate ended March 31, 2007 from Rs. 796 Reliance Communications, Reliance a revenue of $1 billion by 2010. L&T has crore in 2006. Capital, Reliance Energy and Reliance recently built a new 19,000 seat capacity Natural Resources Ltd., has reached software development centre in Navi GE ties up with Healthcare Rs. 1,42,384 crore, while total promoter Mumbai, at an investment of Rs. 60 crore. Global holding is estimated at about Rs. 87,000 L&T Infotech Chairman, Mr. A.M. Naik crore. said, the company would be investing Rs. 500-600 crore on infrastructure and Air Sahara renamed JetLite another Rs. 200-300 crore in developing engineering services in the next 3 to 4 Air Sahara has been renamed ‘JetLite’ years. by Jet Airways Managing Director Mr. Naresh Goyal who acquired Air Sahara Wipro builds India’s first eco- for Rs. 1,450 crore from the Sahara group friendly desktops after a long legal battle. Now, the airline has been upgraded as a value-based airline. Wipro Infotech has become the first From June 1, 2007, the airline has stopped Indian computer maker to launch eco- GE Healthcare and Healthcare Global Enterprises announced on June 14, 2007 taking bookings for business class and friendly machines that comply with the changed the announcement on board as European Union standard on Restriction a tie-up to address the growing cancer diagnosis and treatment sector in India. ‘Welcome on-board JetLite’, which earlier of Hazardous Substances (RoHs) – the was ‘Welcome on-board Sahara JetLite’. information technology industry’s most GE Healthcare is providing advanced FDA complaint molecular imaging and Company officials are in the process of stringent guidelines on the use of and gradually changing the business model, limits on hazardous substances like lead, scanning equipment that can reduce the cost of cancer treatment and help the the aircraft and sinage at various airports. mercury, cadmium and compounds of Meanwhile, two or three planes have been chromium on June 14, 2007. Wipro’s 77 percent of all cancer patients who cannot access treatment in early stages. converted into an all-economy initiative comes in a week when the configuration, while some passengers can world’s leading IT players – Google, Healthcare Global has already set up the first operational Molecular Imaging pay for economy class and sit in business Intel and 30 other companies announced class if they are lucky. Jet Airways has a coalition with the WWF to try to halve Centre, functioning in Bangalore, which is investing over $84 million over 5 years introduced a new livery, which has been the amount of energy used by computers painted on two of the 65 aircraft in its within three years. to expand its treatment centres and helping speciality hospitals. fleet. Moreover, over 600 employees of Air Sahara have become full-time TCS ranks among world’s top 10 employees of JetLite w.e.f. June 13, 2007, profitable IT companies Mukesh Ambani is India’s First Trillionaire as per the promise made by Jet Airways after finalising the deal. Tata Consultancy Services (TCS), Owing to sudden increase in share the largest software service company AI-Indian merged entity to be prices of Reliance Industries Ltd., the in India, has been ranked among the known as Air India world’s top 10 profitable firms with a man behind the screen, Mr. Mukesh Ambani, the Chairman of the group, return on equity of 46 percent, on Ministry of Civil Aviation has earned a rare distinction by becoming June 24, 2007. TCS also ranks 23rd announced that post Air India- Indian the only trillionaire in India with over among world’s 100 leading IT merger, the new entity will be known as Rs. 1,00,000 crore of wealth through his companies. TCS, which went public in ‘Air India’, while, ‘Maharaja’ will be shareholdings. Mr. Anil Ambani, 2004, has been growing rapidly with 41 retained as its mascot. The merged Mr. Mukesh’s younger brother is also percent rise in revenues at $4.3 billion entity, to be called the National Airline for the fiscal year ended March 31, not much far away from his elder Company Ltd., would start operation 2007. The company has the largest brother holding close to Rs. 90,000 crore from July 2007. The new company will network of delivery centres outside of of wealth in the stock market through have its registered office in New Delhi, India among all Indian firms. In Latin his holdings in his group of companies. while its corporate office will be in America alone, it employs more than The combined market capitalisation of Mumbai. The new company’s office for 5,000 people, and has recently the four Mukesh Ambani Group of domestic operations as well as the announced a new service delivery companies viz., RIL, Reliance strategic business units will be mostly centre in Mexico. The company Petroleum, IPCL and Reliance Industrial based in Delhi. The delivery of new reported fourth-quarter profit rise of Infra-structure Ltd., has crossed the aircraft including Boeing 777-200 and 47 percent, less than expected, as an Rs. 2,50,000 crore mark. The total A321 would begin from July 2007. Air appreciation in the rupee eroded the promoter holding in these companies is India is also planning to launch a direct

4 non-stop flight from Mumbai to New First stretch of Dahej-Panvel- Meanwhile, GAIL’s net profit for the York probably in August 2007, followed Dabhol Pipeline commissioned financial year 2006-07 went up by a non-stop Delhi-New York flight. marginally to Rs. 2,387 crore against The new company would order or lease The first stretch of Dahej-Panvel- Rs. 2,310 crore a year ago while its 25 new aircraft by the end of 2007. The Dabhol pipeline, which will feed natural Quarter 4 profit went up by 67 percent logo of the new airline is a red coloured gas to the beleaguered Dabhol Power due to overall increase in natural gas flying swan with the ‘Konark Chakra’ in Project in Maharashtra, has been business. orange, placed inside it. The flying swan commissioned. had been morphed from Air India’s The 100-km Dahej to Surat length Vodafone seals Hutch deal characteristic logo, ‘The Centaur’, of the pipeline was commissioned by whereas the ‘Konark Chakra’ was Petroleum Minister Mr. Murli Deora with a ‘gas-in’ at Dahej, according to a reminiscent of Indian’s logo. press release issued by GAIL, the company laying the pipeline. Wockhardt buys top French drug With gas flowing from Dahej, where firm for $265 million Petronet LNG imports and regassifies liquified natural gas, into the first In yet another major overseas stretch of the 576-km Dahej-Panvel- acquisition, Wockhardt, the Mumbai- Dabhol pipeline decks have also been based pharmaceutical and healthcare cleared for resumption of the work on major, has bought Negma Lerad a 12-km stretch of the pipeline in Laboratories, the fourth largest Chourasiya Taluka in Surat district. integrated pharmaceutical group in But for the small stretch of 12-km, UK’s telecom giant Vodafone has paid France for $265 million (Rs. 1,089 almost all of the pipeline has been laid. a discounted price of $10.9 billion in crore). It is the third largest acquisition Work on the 12-km length was stalled cash for Indian mobile firm Hutch-Essar in the pharma sector by an Indian as Gujarat Government opposed the to complete a deal that gives it access to company, after Dr. Reddy’s $570 million project on the ground that the gas one of the fastest growing mobile purchase of Betapharm, and Ranbaxy’s pricing formula worked out for Dabhol markets to counter saturation in $324 million acquisition of Romania’s would result in rise in price of gas for European markets. The final price Terapia. industries in the State. The Centre has represents a reduction of $180 million Negma Lerad has 600 employees, decided to pool the price of spot LNG from the originally agreed price of including a 280-strong sales force. It being imported for Dabhol with the $11.08 billion, which reflects retention was owned by Ifrah Financials, a French long-term cheaper gas price, resulting and closing adjustments as agreed with financing company. It has sales of $150 in price of gas for the power plant seller Hutchison Telecom. million. The company has 172 patents coming down but the same for industries The adjustments include provisions in its pipeline that may lead to new going up. for a previously announced settlement pact with Indian partner Essar. The drugs. stage is now set for Vodafone to start its With this acquisition, Wockhardt has GAIL to invest Rs. 25,000 crore operations in India, which is witnessing become the largest Indian The state-run gas transporter GAIL an addition of five million new mobile pharmaceutical company in Europe with plans to invest about Rs. 25,000 crore in subscribers every month. Hutch-Essar more than 1,500 employees based in the laying new pipelines and expanding will become Vodafone-Essar over a continent. It will now enjoy a pan- petrochemical business during the next period of time. European presence, covering several key five years. markets – Germany, the United According to GAIL Director Tata Power to acquire Indonesian Kingdom, Ireland and France. (Finance) Mr. R.K. Goel, out of the total coal companies Wockhardt’s European business will now capex, Rs. 10,000 crore will be funded account for more than 60 percent of from internal resources and the Tata Power Company (TPC), India’s the company’s total revenues. remaining Rs. 15,000 crore will be largest private power generator, Wockhardt presently has a portfolio of borrowed from domestic and overseas announced on March 31, 2007 that it 130 products in the European market. market. GAIL’s current debt-equity ratio has inked definitive agreements to Both Betapharm and Terapia, too, were of 0.12:1 will help leverage debt for the purchase 30 percent share in Indonesia’s owned by venture capital funds before expansion projects. The company will two major thermal coal producers, PT being bought by Indian companies. invest Rs. 2,744 crore during current Kaltim Prima Coal (KPC) and PT The acquisition comes at a time fiscal – Rs. 1,761 crore in laying new Arutmin Indonesia (Arutmin), and a when falling profits in the United States gas pipelines, Rs. 146 crore in related trading company of PT Bumi unbranded medicine market have been petrochemicals, Rs. 500 crore in oil and Resources Tbk (Bumi). adversely impacting the earnings of gas exploration and Rs. 268 crore in According to a company press major Indian companies. new projects. release, as part of the purchase, TPC

5 has signed an Offtake Agreement with ended March 31, 2006 were worth a Services 100 List KPC, which entitles it to buy about hefty $17.2 billion. 10 million tonnes of coal per annum. According to Global Services TPC will be paying $1.1 billion for this Tatas acquire Corus magazine, which compiles the list of best purchase prior to working capital and IT and BPO companies on the basis of other adjustments. The Tatas, one of India’s oldest an 18-country survey, Indian firms According to the Managing Director business houses, created corporate topped the 2007 Global Services 100 List of TPC, Mr. Prasad R. Menon, the history on January 31, 2007 when they in the world with 36 making the grade. acquisition of these coal companies, outbid Brazil’s Companhia Siderurgica This achievement marks a comeback of among the top three largest exporting Nacional (CSN) to acquire the Anglo- sorts for Indian IT/BPO companies. In thermal coal mines in the world, Dutch steel firm Corus for an the 2006 list, only 26 Indian firms were specifically addresses fuel requirements unexpected $12.1 billion (approximately named, which was a sharp drop from for Mundra UMPP (Ultra Mega Power Rs. 54,000 crore). This acquisition the 2005 list having 40 Indian firms. Project), Trombay (near Mumbai) and makes the 100-year-old the The US, which came second, has 32 the coastal power project in fifth largest steel producer in the world companies in the list. However, over a Maharashtra. It is complementary and (the largest is Lakshmi Mittal’s Mittal- dozen US companies service their supports the assumptions made in the Arcelor), with an annual output of bid for Mundra UMPP. around 25 million tonnes and 87,000 clients mainly through BPO offices The acquisition is expected to secure employees on its rolls. based in India. Chinese firms presented fuel requirements of TPC in the light This deal is the largest by an Indian their best show with eight firms making of the aggressive growth plans charted firm and the second largest in the global it to the 100. Four Malaysian, three from out by it and open up opportunity to steel industry – Lakshmi Mittal forged Brazil and two from Russia made to the own and operate a range of world class, the largest-ever deal worth $32.4 billion list. One Romanian and one Ukrainian competitive and profitable power in 2006 when his Mittal Steel acquired firm debuted on the list. There was businesses in India as well as overseas. Arcelor to create Arcelor-Mittal. proof of world-beating individual firms Though industry observers emerging outside India : Globant of TCS announces historic Joint suggested that the Tatas had paid too Argentina was selected the best Venture in China much by paying 608 pence (Rs. 526) a emerging global service provider while share, 5 pence above the CSN offer, the Neusoft Group of China was Tata Group Chairman Mr. Ratan Tata declared the best emerging Asian justified it saying that the acquisition of market. Corus, which marks Tata Steel’s first The survey brought to the fore the expansion outside Asia, was worth it. very strong bilateral IT/BPO relationship Tata Consultancy Services (TCS), The deal has lifted Tata Steel from the between the US and India. The US is one of India’s largest IT solutions 56th to 5th position in global steel expected to purchase about $1.55 trillion companies, announced the inauguration production and has tripled its capacity in IT/BPO goods and services in 2007, of its joint venture in China on from approximately 8.7m tonnes. It also of which two-thirds will probably come February 13, 2007. The joint venture is gives Tata access to high-value European from India. In outsourcing, according to the outcome of negotiations over two market where Tata can ride on the back PricewaterhouseCoopers, the global years between TCS and its three of this renowned brand. According to market is worth $234 billion and the US Chinese partners and is being touted as industry experts, the acquisition cost is represents 59 percent of this market. a role model for the Chinese IT sector. about $710 per tonne whereas greenfield According to TCS CEO Mr. S. would have cost about $1200 per tonne. Ramadorai, the joint venture, which According to information appearing HIGHLIGHTS marks an historic day in India-China IT in the media, of the $12 billion that the collaboration, plans to employ about Tatas have to raise to finance the deal, ˆ Tata Consultancy Services was rated 5,000 people over the next five years in $4.1 billion will be pumped in as cash No. 1 among the top 10 best China. The company employs some 800 through the equity route by Tata Steel. performing IT services providers. people in China today. The rest will be in the form of debt ˆ Polaris Software Labs topped the list The joint venture is expected to raised from three banks, ABN Amro, of top 10 speciality application provide a big boost to the Chinese IT Credit Suisse (bankers of Corus) and development providers. ˆ industry. The Chinese software Deutsche Bank. Hinduja TMS was the best performing call centre provider. industry has been growing at a healthy Corus, created from the merger of ˆ US-based Genpact was rated No. 1 in pace of about 30-40 percent annually in British Steel and Hoogovens, employs human capital develop-ment and best recent years. However, software export 47,300 people worldwide, including performing BPO. from the mainland is behind India. In 24,000 in the UK, at plants at Port ˆ Patni Computers was adjudged the best 2005, total revenue earned from Talbot, Scunthorpe and Rotherham. engineering services provider. software export touched $3.59 billion whereas India’s exports for the year Indian IT majors top 2007 Global

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