Archive for ‘Chindia Alert’

22/10/2014

Google’s Big Plans for Low-Cost Android One Phones in India – Businessweek

With the Indian smartphone market booming, Xiaomi has made a splash with its weekly flash sales on Flipkart, an Indian rival to Amazon.com (AMZN). When the Chinese smartphone brand conducted another of its sales on Tuesday, over 300,000 people registered to buy some 90,000 of its Redmi 1S phones priced at 5,999 rupees (or $98). In last week’s sale, the Xiaomi phones sold out in four seconds.

The Spice Android One Dream Uno smartphone

Xiaomi isn’t the only foreign company looking to take advantage of consumer demand for inexpensive alternatives to the iPhone (AAPL). The company with perhaps the most ambitious plan is Google (GOOG), which last month made India the first market for its new Android One smartphone operating system. Google teamed up with local brands Micromax, Karbonn, and Spice, all of which have recently introduced smartphones priced around 6,000 rupees.

India particularly needs better low-cost phones, argues Caesar Sengupta, Google’s vice president of product development in Singapore and head of the Android One project. India’s mobile operators don’t offer the sort of generous subsidies that consumers in the U.S. and other markets take for granted. ”In the U.S., when you buy an iPhone, it costs $600 to $700 but you get a subsidy, so to a consumer it feels you are buying a $200 phone,” Sengupta says. In India, the cost to the consumer is much closer to the actual cost of the hardware.

via Google’s Big Plans for Low-Cost Android One Phones in India – Businessweek.

22/10/2014

India’s Modi Ends Fuel Subsidies, Showing He Is a Reformer – Businessweek

Narendra Modi has proven once again how important it is to be lucky in politics. In the spring, he was India’s opposition leader, running for prime minister by focusing on the government’s mismanagement of the economy. He had plenty of ammunition: The coalition led by the Congress Party had presided over years of corruption scandals and stalled reforms—and also had to contend with a growing budget deficit fueled by soaring prices for oil and other imported commodities.

In India, Falling Oil Prices Make Modi's Job Much Easier

During the campaign, Modi said he wanted to cut back on the costly subsidies the government offered millions of Indians to cushion the blow of those soaring prices. Petroleum subsidies account for one-quarter of India’s 2.6 trillion rupee ($42.4 billion) subsidies bill. But after he won in a landslide, Modi’s first budget (which his finance minister announced in July), was a modest plan that left the subsidies untouched.

That left observers unsure as to whether Modi was backing away from the politically difficult task of making the cuts. “We can either trust that the government will deliver price hikes as the year progresses,” Mirza Baig, head of foreign exchange and interest rate strategy at BNP Paribas in Singapore, wrote in a report after the budget announcement in July. “Or we can be more cynical and suggest that the Modi administration intends to continue the practice of rolling forward subsidy expenditure to next year.”

via India’s Modi Ends Fuel Subsidies, Showing He Is a Reformer – Businessweek.

22/10/2014

Facebook’s Zuckerberg Gets a Toehold in China – Businessweek

In its quest to dominate the social media industry worldwide, Facebook (FB) has long hankered after China, where the company been been banned since 2009. Facebook may have just gained a foothold to help it infiltrate the Chinese market: the appointment of Chief Executive Officer Mark Zuckerberg to the board of one of China’s top business schools, the Tsinghua University School of Economics and Management.

Tsinghua University in Beijing

Tsinghua University announced Zuckerberg’s appointment on Monday to the school’s board, a meeting ground of sorts for Western corporate higher-ups and Chinese officials. In addition to Zuckerberg and top brass from IBM (IBM) , Anheuser-Busch InBev (BUD), and other multinationals, it includes Chinese government officials and entrepreneurs tasked with advising Tsinghua SEM’s development.

To the business school, Zuckerberg is an impressive name to add to a cadre of corporate superpowers. To Zuckerberg, who will fly to Beijing this week to attend the school’s annual board meeting, the appointment could provide an additional way for Facebook to make its case for reentering China, analysts say.

via Facebook’s Zuckerberg Gets a Toehold in China – Businessweek.

22/10/2014

Diesel Deregulation Frees Up Billions for India to Spend More Wisely – India Real Time – WSJ

India’s decision to end government control of diesel fuel prices will save the government billions of dollars which can be better spent on more pressing needs such as building schools, roads and ports, analysts say.

India announced over the weekend that it would end a decades-old policy of controlling the retail price of diesel fuel. Providing diesel at below-market rates cost the government about $10 billion last year, hampering India’s ability to spend on other things.

The government had given up control over the prices of gasoline back in 2010 but had continued to regulate prices of diesel – the primary fuel used in trucks and tractors as well as for running generators used to power irrigation pumps.

“It shields the government’s finances from volatility in global oil prices, because of which the subsidy bill often went up,” said Radhika Rao, an economist at DBS Bank.

HSBC estimates that the diesel deregulation will drop fuel subsidy bill to around 0.4% of gross domestic product, half of the 0.8% of GDP it paid last year.

“Our estimate is that over the next few years, fuel subsidies should remain contained,” said Prithviraj Srinivas, an economist at HSBC.

Diesel subsidies cost India close to $50 billion over the last five years, economists say. If India sticks to its guns and lets fuel prices meander with global markets, it will no longer have to foot that kind of unproductive expense. Instead, it can now choose to lower its fiscal deficit or spend more on infrastructure development or social development programs.

Analysts say the government’s fiscal deficit target of 4.1% of GDP this fiscal year – a level that many analysts had thought optimistic – now looks within reach.

via Diesel Deregulation Frees Up Billions for India to Spend More Wisely – India Real Time – WSJ.

22/10/2014

Airbus Helicopters expects China to become biggest market by 2020 | Reuters

Airbus Helicopters, the world’s largest civil helicopter maker, expects China and Hong Kong to become its biggest global market within six years as Beijing starts to lift restrictions on the use of low altitude airspace from 2015.

A general view of an EC145 helicopter being assembled at the Airbus production facility in Donauwoerth, Southern Germany October 9, 2014.    REUTERS/Michaela Rehle

The Airbus Group NV’s (AIR.PA) helicopter division expects to increase its annual sales in China to 150 units by 2020 from around 30-40 helicopters now, its China president Norbert Ducrot told Reuters.

Sales in the United States, the firm’s biggest market, average around 120-150 aircraft per year.

“The China market is very small with a big potential,” Ducrot said in an interview in Beijing. “I am pretty sure around 2020, China will be the first market for Airbus Helicopters.”

“Before (our customers) were mostly state companies, police and fire fighting, but now we can see the emergence of civil private helicopter operators,” he added.

China simplified flight approval procedures for private aircraft late last year, but the fledgling market for helicopters and small aircraft has been constrained by the military’s control of low altitude airspace.

A dearth of small airports, maintenance facilities, mechanics and pilots have also hampered the sector’s growth.

Ducrot said he expects demand for helicopters and small aircraft to pick up gradually when China starts to open up its low altitude airspace next year.

As infrastructure improves and the military opens up more airspace by 2020, Ducrot estimates there will be 50,000 helicopters in China over the next 30 years. There are only about 330 helicopters currently in operation in China, including Hong Kong.

via Airbus Helicopters expects China to become biggest market by 2020 | Reuters.

22/10/2014

Boeing and Chinese partner to make jet fuel from ‘gutter oil’ | Reuters

Aircraft makers Boeing and Commercial Aircraft Corp of China have launched a joint pilot project to turn used cooking oil into jet fuel.

Their plant, based in the southeastern Chinese city of Hangzhou, will be able to convert just under 240,000 litres a year of used cooking oil into fuel, Boeing said in a statement.

The project will allow the two aircraft makers to test the viability of producing biofuel using the cheap and widely available form of cooking waste, referred to in China as “gutter oil“.

Boeing and its Chinese state-owned partner estimate that 1.8 billion litres of fuel could be produced in China a year using gutter oil.

In February, the Civil Aviation Administration of China granted a subsidiary of state-owned behemoth Sinopec Corp a licence to produce jet fuel from used cooking oil.

Gutter oil has long been a public health concern in China due to its widespread use in restaurants. Used cooking oil can contain toxic compounds and is often considered insanitary.

Chinese media reported in 2010 that crime rings were collecting used cooking oil from sewers and drains, rebottling it and selling it as new.

Over the past two years, dozens of people have been given lengthy prison sentences for the scam, which has made many Chinese in major cities sick. Last year one man was sentenced to life in prison for making and trafficking gutter oil.

via Boeing and Chinese partner to make jet fuel from ‘gutter oil’ | Reuters.

21/10/2014

Schindler Raises Profit Forecast as China, India Grow Faster – Businessweek

Schindler Holding AG (SCHP) raised its full-year profit forecast after the Swiss elevator maker’s nine-month earnings were boosted by rapidly expanding sales in China and India.

Schindler increased its net profit forecast by 15 million francs ($16 million) to as much as 865 million francs, supported also by the consolidation of Chinese subsidiary XJ-Schindler and the sale of land in Switzerland. Ebikon-based Schindler stuck to a prediction of 6 percent to 8 percent sales growth in local currencies.

Silvio Napoli, who became chief executive officer in January after almost six years as head of Schindler’s Asia-Pacific business, was promoted as the Swiss company expands operations in Chinese and Indian markets, where it predicts sales of elevators will grow fastest over the next decades. Schindler is far exceeding market growth in each of these countries, the company said today.

Nine-month net income gained 91 percent to 703 million francs, while sales rose 3.2 percent to 6.7 billion francs.

Earnings at Schindler, a company with a market capitalization of $15 billion, bucked a more subdued outlook among European industrials. Royal Philips NV Chief Executive Officer Frans Van Houten said yesterday that the maker of health-care equipment and light bulbs is facing sustained softness in a number of markets such as China and Russia, after reporting quarterly earnings that missed estimates.

The Schindler and Bonnard families, along with related parties, hold 67.3 percent of the voting rights in the company which dates back to 1874.

via Schindler Raises Profit Forecast as China, India Grow Faster – Businessweek.

21/10/2014

India Steps Closer to Ending 40-Year-Old Monopoly on Coal – Businessweek

India stepped closer to ending a four-decade-old government monopoly on mining and selling coal as Prime Minister Narendra Modi seeks to tackle fuel shortages.

India Coal Mine

The government approved a decree enabling it to permit commercial mining in future, Finance Minister Arun Jaitley said at a briefing in New Delhi yesterday, without giving a timeline. The ordinance also allows auctions of coal mines to private companies for their own use, he said.

Modi made curbing blackouts a priority after sweeping to office in May on a pledge to revive growth in Asia’s third-largest economy from near the slowest pace in a decade. State-owned Coal India Ltd. (COAL) has missed output targets in at least the past four years, and easing its grip may allow companies such as Sesa Sterlite Ltd. (SSTL) and NMDC Ltd. (NMDC) to profit from the world’s fifth-biggest reserves.

Enabling private companies to mine and sell coal would be “one of the key game-changing reforms,” said Sonal Varma, an economist at Nomura Holdings Inc. in Mumbai. “Fuel availability has been a big concern for the economy.”

Opening up the coal industry risks stoking protests by some of Coal India’s about 325,000 workers and executives, at the same time as the government prepares to sell a 10 percent stake in the company that would fetch about 228 billion rupees ($3.7 billion).

Coal India accounts for more than 80 percent of the country’s production. The government wants to spur competition in the industry, Jaitley told the NDTV 24×7 television channel today.

via India Steps Closer to Ending 40-Year-Old Monopoly on Coal – Businessweek.

21/10/2014

India’s Narendra Modi to Star at Sydney’s Allphones Arena – India Real Time – WSJ

Since becoming prime minister, Narendra Modi has performed in New York’s storied Madison Square Garden  and played drums on stage in Japan.

His next big-ticket venue: Sydney’s Allphones Arena this November.

Mr. Modi will address what is expected to be a sell-out crowd at the 21,000-seat venue in Australia’s financial and commercial capital on Nov. 17 during his four-day trip to the country for the G20 summit in Brisbane.

Organizers say it will eclipse the prime minister’s biggest gig so far, when he spoke to a crowd of 18,000 people, mostly Indian-Americans, at Madison Square Garden on Sept. 28.

“This will be bigger and better,” said Balesh Singh Dhankhar one of the organizers of the reception for Mr. Modi. The Allphones Arena, built for the 2000 Olympics,  “has more grandeur” than Madison Square Garden, he added.

The stadium in Manhattan is famous for hosting some of the biggest names in entertainment, like the Beatles, Bruce Springsteen and “The Fight of the Century” between Muhammad Ali and Joe Frazier.

The Allphone Arena also hosts musical acts and boxing matches. In the same month as Mr. Modi’s visit, The Rolling Stones and Katy Perry will play the arena and an Ultimate Fighting Championship event will take place there.

Australia is home to around 350,000 people who were born in India, according to the latest census data from 2011. That was a 90% increase on the number recorded in the census in 2006, but a tenth the size of the Indian-American community in the United States.

After Mr. Modi’s speech in New York, people in Australia began asking when he would come here, said Mr. Dhankhar, a spokesman for the Indian Australian Community Foundation that is helping put on the event that was conceived only three weeks ago.

Some 14,000 people have registered in the first two and a half days of registration, according to the organizers. It will be broadcast live on Indian television channels.

“We invited Mr. Modi and said the Indian diaspora in Australia is very eager to see him,” Mr. Dhankhar added.

Tickets for the Sydney event are free and the show will start around 5.30p.m., but further details of the spectacle are under wraps right now, Mr. Dhankhar said. “There are a number of cultural and exciting events before the speech that would be a surprise for the audience in India and Australia. These will be wider and more surprising that at Madison Square Gardens.”

via India’s Narendra Modi to Star at Sydney’s Allphones Arena – India Real Time – WSJ.

21/10/2014

China to pitch high-speed trains to California | Reuters

State-backed China CNR Corporation is making a pitch to sell its high-speed trains to California, signaling China’s growing export ambitions for such technology after building the world’s longest network in just seven years.

A high-speed train travelling to Guangzhou is seen running on Yongdinghe Bridge in Beijing, December 26, 2012. REUTERS/China Daily

It marks the first concrete attempt by China to sell high-speed locomotives abroad and establish itself as a credible rival to sector leaders such as Germany’s Siemens, Canada’s Bombardier and Japan’s Kawasaki.

CNR, its unit Tangshan Railway and U.S.-based SunGroup USA are submitting an expression of interest to California’s $68 billion high-speed rail project for a contract to supply up to 95 trains that can travel as fast as 354 kilometers per hour (221 miles per hour), SunGroup told Reuters.

via China to pitch high-speed trains to California | Reuters.

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