Rs 400-cr project in pipeline

Having learnt a lesson from Friday’s cloudburst, which led to chaos in the Capital, the State Government has initiated a slew of measures. A Rs 400-crore storm water drains project will be taken up under the National Urban Renewal Mission with 35 percent assistance from the Central Government.

The other decision was to clear all the encroachments along the Hussainsagar nala and rehabilitate the evacuees in a colony to be constructed at Kukatpally under the Vambay scheme. In all, 2,500 encroachments have been identified and all of the residents will be rehabilitated, said Information Minister Mohd Ali Shabbir, who toured the affected areas on Saturday. Municipal Administration Minister K Ranga Rao, Major Irrigation Minister Ponnala Lakshmaiah and Agriculture Minister N Raghuveera Reddy accompanied him.

Earlier, Chief Minister Y S Rajasekhara Reddy expressed his displeasure over the failure of the government machinery, particularly municipal and police department personnel, in preventing massive traffic jams. This was followed by a high-level meeting chaired by Chief Secretary Mohan Kanda. During the ministers’ visit, people complained of the lack of assistance from the government.

Genome Foundation in Hyderabad

In an unusual move, the Indian scientific community and some prominent industrialists have come together to address the various common genetic disorders in the country by setting up a single-window diagnostic services, biochemical, cytogenetic and DNA-based services.

The concept is taking shape in the form of Genome Foundation, a not-for-profit organisation, which has people like C Rangarajan, former governor RBI, K Kasturirangan, former chairman, Indian Space Research Organisation (ISRO), PM Bhargava, former director, Centre for Cellular and Molecular Biology (CCMB), RA Mashelkar, director general (Council for Scientific and Industrial Research), MK Bhan, secretary, Department of Biotechnology, Ramalinga Raju, chairman, Satyam Computer Services, Varaprasad Reddy, managing director, Shanta Biotechnics, Dr Lalji Singh, director, CCMB on its board.

Dr Singh, who is coordinating the project says: “The health of a nation is important for growth in the economy. And if there is a genetic burden, there can be an absolute loss for the country. That is the logic behind the Genome Foundation, which will be housed in Hyderabad.” The concept has gone beyond the ideation stage and is headed to take a concrete shape. “We are requesting the Andhra Pradesh government for allotting about 25 acres to set up a main networking centre.

UBS to set up operations in Hyderabad

UBS, one of the world’s leading financial firms, has decided to establish its information technology and information technology- enabled service operations in Hyderabad.

UBS is the first Switzerland-based bank and the first European bank outside of UK that has agreed to set up its outfit in the city.

UBS has decided to locate in Hyderabad after evaluating cities like Bangalore, Pune, Chennai, Delhi, Mumbai and Kolkata.

Hyderabad blues

Despite 20% growth in advertising, agencies in Hyderabad feel the squeeze.

In the last two years, at least three national advertising agencies — FCB Ulka, Saatchi & Saatchi and Everest — have closed shop in Hyderabad. And if you believe Santha John, managing director of Mindset EYW, few are doing well even among the existing companies.

Though the advertising market has grown by 20 per cent over last year — from Rs 100 crore to Rs 120 crore, it is probably not enough to sustain all the agencies in the city. John claims there are hundreds of small agencies in Hyderabad clamouring for the same clients. The absence of FMCG brands doesn’t help either.

Vice president at Mudra’s Hyderabad office Bal Deshpande says that Hyderabad is a peculiar market. "While the city has a huge pharma industry, it’s restricted to formulation and non-OTC products. We don’t have a Crocin or an Eno to sell from here," he says.

The market is dominated by engineering and IT companies and the public sector units which primarily issue tender and recruitment ads. Of course the new retail advertisers such as pubs, hotels and jewellery stores are coming up.

"Yet the overall outlay of, say, a Meena Bazar here is small compared to, say, a Pothy’s or Nallis in Chennai,Vichitra in Delhi, Kala Niketan in Mumbai," he says.

Besides, Hyderabad may be booming in the retail sector with umpteen malls coming up, but malls like Shoppers’ Stop and Pantaloon have national advertising campaigns. “So they usually give it to Mumbai-based agencies to handle the business,” says Vijay Kumar. The local stores, however, tend to prefer the local agencies. Deshpande admits that local companies share a comfort level with the local companies.

Incidentally, Mindset recently lost Coke’s regional account to Rediffusion. But John says that loss of one account does not mean that national agencies are beating the local ones. Trikaal Advertising for instance, is working on regional ads for national clients like Samsung, Videocon and LG besides local retailers like Meena Bazaar, Nalli Silks and TMC.

Despite its peculiarities, national agencies do not wish to let go of the opportunities in Hyderabad. Rediffusion, Mudra, O&M and RK Swamy have stayed put in the city. "We came here more than six years ago. The city is bustling with IT, ITES, pharma, retail, education and media opportunities," says Ganesh Raman, vice-president O&M, Hyderabad.

Mudra survived by "looking at other avenues to generate revenue, doing corporate identity work besides controlling costs," says Deshpande. But O&M’s Raman believes that "New opportunities will arise and clients will need new services. The market is growing by scoring singles currently. We need some sixes and fours," he concludes.

The Rains have hit the city Hard

Rains have hit the city of Hyderabad hard and has rendered nearly 2500 people homeless. Meteorologists predict the situation worsening during the next 24 hours, as more heavy rains are expected to lash the city.

Torrential rains which have lashed the city of Hyderabad for three days, have left hundreds of people homeless.

Water gushed into houses in the low-lying areas, forcing people to vacate those areas. Hundreds of people have been shifted to safer places, in higher areas. The situation is likely to worsen within the next 24 hours, as the meteorologists are predicting heavy rains.

Nearly 2500 people were rendered homeless. The District Administration has shifted them from nine low-lying areas, and has provided them with food and clothing.

IMAX Signs Two Theatre Deal in India

IMAX Corporation and Sathyam Cinemas, a top commercial exhibitor in India, today announced an agreement to install two IMAX theatre systems at Sathyam Cinemas' multiplexes in India.

The deal is the third between IMAX and Sathyam and marks the second time the exhibitor has doubled the number of IMAX(R) theatres it plans to open in the country. Sathyam Cinemas now has a total of four IMAX theatres scheduled to be installed in its multiplexes, with the first to open next year in Chennai, India and three more at locations to be announced. India remains one of IMAX's fastest growing markets, with eleven IMAX theatres now scheduled to be open in the country by 2008.

"India is a vast market that holds a great deal of growth potential for IMAX," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "We have been delighted with the success of the multiplex-based IMAX theatres in this region and very pleased with exhibitor response to the IMAX MPX value proposition. We are optimistic that Sathyam Cinemas doubling its commitment will fuel further interest and growth for IMAX in India."

"We want to offer moviegoers a compelling reason to visit Sathyam Cinemas and The IMAX Experience(R) has proven to accomplish this, serving as a significant draw for commercial exhibitors in India," said Kiran Reddy, Managing Director, Sathyam Cinemas. "Indian moviegoers are paying a premium ticket price for blockbusters in IMAX's format, and we've been very impressed with the recent films' grosses in Hyderabad and Mumbai."

Sathyam Cinemas' first IMAX theatre is anticipated to open in Chennai, India in March 2006 at one of the most heavily trafficked cinemas in the country, to be followed by another location that will open in Chennai in 2008. The other two IMAX theatres will open in 2007 and 2008 at yet to be announced locations.

All of Sathyam Cinemas' IMAX theatres will be capable of playing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX(R)3D. The IMAX MPX theatre system was specifically designed to enable multiplex operators to more cost effectively enter into the IMAX theatre business, by retrofitting an existing stadium seating auditorium or via an economical new build. Sathyam Cinemas was founded over thirty years ago in Chennai, India and is the leading exhibitor in the state of Tamil Nadu. Its flagship location in Chennai is the highest attended cinema complex in India. Sathyam prides itself on being at the forefront of cinema technology in India.

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies and the newest distribution window for Hollywood films. IMAX delivers the world's best cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR(R) technology. IMAX DMR (Digital Re-mastering) makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences. As of March 31, 2005 there were 250 IMAX theatres operating in more than 35 countries.

Satyam recruits Singapore-based team

Satyam Computer Services Ltd on Thursday said it has set up a specialised 25-member team to support critical IT outsourcing projects under the global sourcing initiative.

The team will support critical IT outsourcing projects which require high-end niche skills and priority programming support in the Asia Pacific region under the new Global Sourcing initiative, Satyam informed the Stock Exchange, Mumbai.

The team will be based out of the company's APAC headquarters in Singapore. In the first such set-up by the Hyderabad-based Indian software giant, the Global Sourcing initiative has hired senior consultants and IT specialists from five Asian countries.

This initiative aims to establish a myriad talent pool which is available to successfully carry out highly specialised IT projects on a priority basis, particularly in South-East Asia and China, it said.

The Global Sourcing team members include senior functional consultants and experts in defined verticals such as oil & gas, FMCGs, travel and logistics and the public sector. The members are all employed by the company's Singapore operations which has 225 full-time staff.

IA announces ‘Easy Fares’

After an encouraging response to its monsoon super saver offer, Indian Airlines has launched Easy Fares, an attractively priced flexible fare offer for domestic travel, which offers upto 60 percent discount. A unique feature of the Easy Fares plan is that there is no time limit on advance purchase.

Easy Fares plan is a modified version of the existing special fares like Fly Select Fares, APEX Fares and Positioning Flight Fares. It is a level-based fare with four levels and are sector specific. Reservations can be made under different levels, which have different fare and class name.

The number of seats available under each class will be dynamic and once the allocation for a particular level has been met, the next higher-level fare will automatically become applicable. The number of levels could also vary in some sectors. Other details can be had on helpline 1407, an Indian Airlines press release said.

Praise for cricket stadium

The efforts of Hyderabad Cricket Association (HCA) officials to host one of the international matches against South Africans, scheduled to visit later this year, got a shot in the arm with the all-round praise for the venue showered by none other than the former chief of the United Cricket Board of South Africa, Ali Bacher.

"It is one of the biggest and most beautiful venues I have ever seen. I wish it is completed as early as possible," he said after inspecting the Visaka International Stadium here on Tuesday.

With the tribute coming from the former Chairman of the Organising Committee of the 2003 World Cup Cricket Championship in South Africa, the beaming face of Shivlal Yadav, secretary of the HCA, said it all. Dr. Bacher, who is here on a private visit, stressed the importance of having a giant screen at the stadium.

"These things ensure that spectators at the ground don't miss out anything in terms of replays, records, statistics and, more importantly, helps the hosts find suitable sponsors," he explained.

With the Karnataka State Cricket Association (KSCA) secretary and former Test star, Brijesh Patel, accompanying Dr. Bacher, it was also reminded that how the same firm had successfully installed a similar facility at the Chinnaswamy Stadium.

Two options

There are also two options left for the HCA now, according to Shivlal Yadav. Installing the screen at a cost of Rs. 2 crores or erecting a permanent stand costing Rs. 40 lakhs and hire the equipment from the KSCA at a cost of Rs. 5 lakhs when required.

Mr. Brijesh Patel advised Mr. Shivlal to prefer the latter because the HCA was still looking for sponsors to complete the stadium.

For a venue that is modelled on the Wanderers Stadium in Johannesburg, the compliments from Dr. Bacher could not have come at a more appropriate time for Mr. Shivlal Yadav and his team of officials. Mr. Shivlal presented the HCA tie to Dr. Bacher while the latter reciprocated by presenting his picture with Nelson Mandela.

State bags 5 awards for e-governance

The State Government bagged five CSI-Nihilent e-governance awards 2004 instituted by the Computer Society of India and Nihilent Technologies.

The awards are: Best e-gov project in terms of its sustainability - Jawahar Knowledge Centre and Student Knowledge Fora; best e-gov project for its cost effectiveness - e-village Chiluvuru in Guntur district under Rajiv (Rajiv Internet Village) programme; second place in e-gov project for its cost effectiveness - Chief Minister Office Management System; second place in best e-gov project for its service orientation - citizen friendly services of transport department; and best e-governed State in terms of its policy frame work and e-readiness.

The awards would be given away at a function to be held in New Delhi shortly, an official press release said.

Four more HUDA complexes

The Hyderabad Urban Development Authority (HUDA) will construct four more commercial complexes in different localities of twin cities, HUDA chairman D Sudheer Reddy said.

Speaking to reporters after inspecting the facilities and maintenance parameters at Maithrivanam, Swarna Jayanthi and Maithrivihar at Ameerpet and Saroornagar complex near Kothapet, he said that two of the proposed complexes would come up at Saroornagar. The old building at Saroornagar would be demolished and new one would be built at the same place.

During an interaction with the shop-owners and offices on the maintenance, it was found that there was no proper maintenance at Maitrivanam complex and the owners complained that parking fees were being collected illegally. The chairman assured the members that necessary action would be taken.

The open drains which are creating a nuisance near Swarna Jayanthi and Maithrivihar would be closed by laying slabs on them. The under-construction complex at Maitrivihar would be completed in about two months.

Sudheer Reddy said that HUDA would strive for 100 per cent occupancy rate in all the commercial complexes belonging to the authority. Presently, the occupancy rate is about 70 to 80 per cent, he said. HUDA vice-chairman Jayesh Ranjan and Executive Director KS Reddy and others were also present.

IT services may grow at 19.8%

The Indian IT services market, which has recorded a strong growth at 26.7 per cent in 2004-05 for the Asia-Pacific region, is projected to grow at a compounded annual growth rate (CAGR) of 19.8 per cent through to 2009, according to a report by Gartner.

The report, announced on Monday by the research and consultancy major, Gartner, predicts that the Asia-Pacific IT services market will have a CAGR rate of 8.9 per cent from 2004 through 2009, outpacing the global growth rate of 6.1 per cent.

While emerging markets of India and China are seen as the main engines of growth in the next few years, it forecasts that professional services, led by development and integration, IT management and consulting, will be the region's strongest performing IT services market segment.

The Principal Analyst, Asia Pacific for IT Services and BPO, Gartner, Ravindra Datar, in a statement said, "As the Indian economy grows and merges further with the global economy, the focus of demand for IT services will shift from large deals signed by large enterprises to increasing number of mid-size and smaller enterprises. This is expected to drive the next phase of growth in the Indian IT services market. Further, large number of captive and third party offshore service facilities for IT and BPO being set up in the country are also driving demand."

While India has established itself as a leading destination for offshore IT and BPO services in the last 10 years, the domestic market demand has started picking up growth very recently. Need to meet regulatory compliance requirements in the banking and financial services sector, deployment of IT to improve business efficiency and global strategies will drive growth of IT services.

Large-scale IT deployment by the Central and State Governments and public sector enterprises to reduce cost of governance, improve transparency and make the processes more user-friendly for the citizens. There will also be some rub-off effect of global successes of Indian IT services and BPO companies on the Indian market.

Consulting, development and integration are continuing to grow with good demand, while IT management and process management spending is rapidly growing, though over a much smaller base. Government spending is also growing rapidly, due to national and State Governments moving ahead with their e-governance plans. This trend will continue during the next 4-5 years.

Although India's total IT services market will still be one-third smaller than China at $5.3 billion by 2009, its development and integration size will be almost the same as China, at around $3 billion.

IT management and consulting would be among the key thrust areas. Gartner says the comeback of consulting shows that companies need to transform their business, not only by cutting costs, but also by learning how to better use IT resources and processes to grow their business.

ISB to focus on manufacturing

The Hyderabad-based Indian School of Business (ISB) is setting up a centre of excellence for manufacture, logistics and supply-chain management. Prof. Nukula Viswanadham of National University of Singapore will head the centre.

It is expected to go on stream by the end of the current year. The centre will also comprise two assistant professors, post-doctoral fellows, a number of visiting faculties and research associates.

Prof. Viswanadham said the proposed centre would focus on three areas — research, executive education and industry outreach programmes. The focus segments of the centre would be automobile, pharma and retail.

In an interaction with this correspondent, Prof. Mendu Rammohan Rao said that with outsourcing becoming the order of the day, one needed to look beyond mere inventory management.

"Logistics, trade finance, infrastructure, WTO regulations and the like have become pretty serious issues.'' Prof. Viswanadham said the objective of the proposed centre was to look at supply chain management in its entirety and provide vital inputs to planners in the government and help them formulate an integrated policy.

He indicated that ISB could move appropriate authorities to carry forward work in this direction.

Megasoft picks 60% in German IT firm

Chennai-based Megasoft is to acquire 60 per cent stake in euro 1.4 million german IT services company - Beam AG - in an all cash deal. The company, however, did not disclose the deal size.

The acquisition of the German firm, which is subject to the necessary statutory clearances, would give Megasoft a base for expansion of its operations in Europe. Megasoft, a product-based technology company, has operations in the US, UK, Singapore, Malaysia and Germany, in addition to the Indian operations in Chennai and a telecom research and development centre in Hyderabad. Founded in 1992 at ULM, Germany, Beam AG provides high-quality consulting and project management services for automotive, telecommunication and production industries all over Germany.

Kofi Annan to visit Hyderabad

Hyderabad is hosting the 93rd Indian Science Congress from January 3-7, 2006. The President APJ Abdul Kalam will inaugurate the Congress to be chaired by the UN Secretary General Kofi Annan.

The proposed five-day convention being conducted in association with the Indian Science Congress (ISC) Association, Kolkata, will be held at the Acharya NG Ranga Agricultural University (ANGRAU), Hyderabad. It is learnt that this is the first time a Congress is being held in an agricultural university.

The director general of UNIDO, ILO, vice-president of the World Bank - incharge of rural development apart from 5,000-odd scientists, delegates and noble laureates are expected to attend the conference which aims for sustainable agriculture and allied sectors for enhanced productivity and food security.

Addressing the media here on Thursday, IV Subba Rao, general president, ISC, 2006 and former vice-chancellor, ANGRAU said that the theme of the Congress will be "Integrated rural development: Science and technology".

The topic is relevant because despite all the achievements made in the fields of science and technology, rural India is still plagued with daunting problems like lack of safe drinking water, health care, sanitation, small-scale and agro-based industries, education and public-private partnership.

With the formation of a knowledge commision, headed by Sam Pitroda, and the programme committee constituted by MS Swaminathan as the chairman, the 93rd Congress hopes to bring in science and technology for sustainable development in response to fulfill all basic human needs, Dr Rao said.

KPO industry to touch $16b by 2010

The size of knowledge process outsourcing (KPO) industry, the high-end services entailed in business process outsourcing (BPO) activities, has the potential to touch $16 billion by 2010 across the globe.

In a study carried out by Baring Private Equity Partners (India) Limited, a leading venture capital financing firm, it was found that KPO industry has the potential to attract maximum venture capital (VC) financing in India since by definition, such activities were knowledge-driven and not capital intensive.

The Baring report said that it was expected that financing of merger and acquisition (M&A) activity would be the major uses of venture capital in KPO. Comparing between KPO and BPO, the study found that revenue per hour in the former was $8-11 per hour, while it was $22 in the case of the latter. Capital expenditure per seat in both the activities was more or less the same at $6000 to $8000.

The study said that higher revenue and better profit per seat would make KPO a compelling investment proposition. The major KPO activities were financial analysis and equity research, market research, risk management, data mining, business research, R&D outsourcing, animation and simulation.

Zeroing in on the locations, which were attractive for KPO activities, the Baring report said that Mumbai would be an ideal place for financial analytics, while Kolkata, Gurgaon and Bangalore would provide decent living conditions.

While Gurgaon and Kolkata were once again ideal for space economy and connectivity, places like Noida and Hyderabad were attractive for good infrastructure. In this context, the report said that Eastern India was a natural choice for KPO activities since Kolkata had a large pool of educated and skilled people with good English communication skills. The takers for KPO would be investment banks, industry associations, consulting firms and corporate planning departments of large multinational corporations.

As per Nasscom estimates, the KPO industry was expected to grow by 45 per cent by 2010. Out of the $16 billion, which the KPO industry was likely to assume by 2010; around $12 billion would be outsourced from India.

Japanese training for IT professionals

The Association for Overseas Scholarship (AOTS), Japan, with the active support of Nasscom and STPI, hosted a training programme on Japanese language for Indian IT engineers here.

The training session was held during May-June. The highlight of the closing session was the speeches delivered by the trainees in Japanese language, according to a statement from Nasscom. Mikio Ujiie, General Manager, AOTS, in a statement said "this programme is being implemented under Industrial Structural Improvement scheme of AOTS with financial support of the Ministry of Economy, Trade and Industry (METI) of Japan."

AOTS is a non-profit organisation in Japan dedicated for HRD and training in and outside Japan since 1959. Select Indian IT companies would be leading examples of entering the Japanese market based on this training. S.V. Ramachandran, Regional Director of Nasscom, said, "lack of knowledge of Japanese language is a major barrier in establishing business relations with Japan and this initiative is the logical step in addressing this issue."

A select few will get the opportunity to undertake the next session in Yokohama, Japan later this year. AOTS will bear all the expenses related to their stay Japan.

Buses go off the roads

More than 19,000 buses of the state-owned Andhra Pradesh State Road Transport Corporation (APSRTC) came to a grinding halt Monday as 119,000 employees began an indefinite strike, causing severe inconvenience to commuters.

Thousands of passengers were left stranded at major bus stations across the state.

Private vehicles and additional trains pressed into service were proving inadequate in clearing the huge rush, particularly in the state capital Hyderabad, the pilgrim town of Tirupati and commercial hubs like Visakhapatnam, Vijayawada and Guntur.

Office goers and students were hit hard with private vehicle operators, including auto rickshaws, charging astronomical sums.

More than 12 million people travel daily by APSRTC buses within the state and to neighbouring states. APSRTC entered into Guinness Book of World Records in 1999 for owning the largest fleet of buses.

The state government, which had already banned the strike, has invoked provisions of the Essential Services Maintenance Act (ESMA).

The strike began after the government rejected the employees' demands for 15 percent interim relief. Their demands also include the government sharing half of the Rs.14 billion accumulated losses of APSRTC, a cut in motor vehicle tax and sales tax on diesel.

Welcome Greater Hyderabad

Here is good news for the people of Hyderabad and Visakhapatnam. The State Cabinet has decided to create a Greater Hyderabad Municipal Corporation and a Greater Visakhapatnam Municipal Corporation. Under Greater Hyderabad, 12 surrounding municipalities and eight villages would be merged in the Hyderabad Municipal Corporation. Rs 800 crore would be spent for creating infrastructure in the municipalities and villages, Information Minister Mohd Ali Shabbir said. Briefing reporters after the Cabinet meeting here on Friday evening, the Minister said that after the merger, the population of Hyderabad would go up to 55 lakh. Following the decision, 12 municipalities surrounding Hyderabad will not go for elections.

Gajuwaka Municipality and 32 surrounding villages would be merged in Visakhapatnam Municipal Corporation to create Greater Visakhapatnam, the Minister added.

SECURITY: Taking into account the growing security concerns, the State Cabinet has decided to revamp the security in the Secretariat with Rs 2.5 crore immediately. The system would be akin to the one existing in Parliament. All the staff and visitors would be given electronic passes and Electronic Corporation of India Limited is providing the system. Separate parking places would be earmarked for the visitors, staff and MLAs, Shabbir said.

The ministers and officials have been asked to be available in their seats from 3 pm to 5 pm on all working days, so that they can attend to the grievances of the visitors.

RATION CARDS: As the respective district administrations are finding it difficult to fetch suitable cameras for issuing ration cards in municipalities, the Cabinet has decided to issue the ration cards first to the eligible poor people. Subsequently, the old cards would be renewed and the same would be extended to rural areas, the Minister added.

SHGs IN URBAN AREAS: It has been decided to provide subsidy to self-help groups (SHGs) in urban local bodies on par with SHGs in rural areas on the interest charged by banks over and above 3 percent per annum, provided, there is 100 percent repayment of the loan by the groups.

ROAD POLICY: Expressing concern over the spurt in road accidents, the Cabinet has approved a Road Policy. The salient features are: Improving effective road network for overall development, involving private parties and mobilisation of funds, providing road safety and using the state-of-the-art technical know how for bringing down accidents.

BIO-FERTILISER ACT: The Cabinet approved a Bill for monitoring and quality control of bio-fertilisers – Bio-Fertiliser (Monitoring and Quality Control) Act 2005 – to ensure quality, price control, registration of manufacturers and dealers and control on distribution.