Monday, August 29, 2011

Felicitation to Mr S. C. Jaini, IRS, CCIT, AP-I

The FAPCCI in association with A.P. Tax Bar Association and Hyderabad Branch of SIRC and ICAI felicitated to Mr S. C. Jaini, IRS, Chief Commissioner of Income Tax A.P. – I on 27th August, 2011 at 6pm at K.L.N. Prasad Auditorium, FAPCCI, as he was elevated as member of Central Board of Direct Taxes (CBDT).

Mr S. C. Jaini, IRS, expressed his happiness and thanks to the organizers.

Mr. Jaini said tax evasion was not something a nation could be proud of and that India was still a poor country with islands of prosperity.

Poverty, economic disparity and social tensions could not be ignored and while the middle classes were growing, it was time to think of harsh realities, he told a gathering at the FAPCCI. Regarding the manner in which rich people flaunted their wealth, he said ‘the display of wealth was not in our civilisation' and that it created more anger.

Appreciating the increasing levels of voluntary compliance in the country, he said the relatively-low rates of taxes had motivated more and more people to voluntarily pay up direct taxes. He recalled that in the 70s, as a young Income Tax Officer the direct tax collected was a mere Rs.113 crore, compared to a whopping Rs.30,000 crore now, indicated how much the tax base had widened. He said he understood that there were administrative and enforcement problems and said persuasion was surely more effective than cracking the whip all the time.

Mr V. S. Raju, President, FAPCCI in his address stated that it is a momentous occasion for us to honor the Chief Commissioner. He requested the Chief Commissioner to recommend to the board to include FAPCCI in the pre-budget consultation meetings on Direct Taxes.

Mr Abhay Kumar Jain, Chairman, Direct Taxes Committee, FAPCCI in his introductory remarks stated that grievance resolution mechanism should be strengthened for better compliance. He further pointed out that the stay petitions are not acted upon and grant of stays particularly in respect of disputed taxes at least till disposal of first appeals.

CA. M. Poorna Chander Rao, President, A.P. Tax Bar Association Introduced the Chief Guest.

Ms Santhi Sree, Immediate Past President, A. P. Tax Bar Association, Mr Laxminiwas Sharma, Chartered Accountant, Past President, FAPCCI, Mr A. Srinivas Ayyadevara, Vice President, FAPCCI and Mr K. C. Dev Das, Chartered Accountant shared their experiences and memories with Mr S. C. Jaini.

The meeting ended with a Vote of Thanks by CA. Adusumilli Venkateswara Rao, Chairman, Hyderabad Branch of SIRC of ICAI.

Certificate Course in “Basics of Supply Chain Management”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) conducting a certificate course in Basics of Supply Chain Management from September 05-08, 2011, from 4 pm to 6 pm, at JS Krishna Murthy Hall, Federation House, FAPCCI, Red Hills, Lakdi-Ka-Pul, Hyderabad.

The course will cover the basic Concepts of Supply Chain/ Value Chain and importance of these to Business. Designing Supply Chain Network, Planning and Managing Inventories in Supply chain, Planning Strategic Partnerships with Suppliers, Key Critical Supply Business Processes like Procurement Flow, Production Flow, Warehousing Needs, and Role of Logistics.

This course will be useful to Students pursuing management studies, Executives working in Finance, Marketing, and Purchase Departments and Proprietors, Partners, and Directors of Micro, Small and Medium Enterprises/Companies.

Candidate desirous of joining the course may contact Mr. JR Kumar, Faculty Director on 9885921599 for registration.

American Debt Crisis – Lessons for the World

Hyderabad, 27th August 2011:

The FAPCCI in association with Pragna Bharathi organized a seminar on “American Debt Crisis – Lessons for the World” on 27th August, 2011 at 5.30 pm at Surana Udyog Auditorium, Federation House, FAPCCI. Mr. M.R. Venkateshan, Economist, Columist & Author from Chennai was the chief guest for the occasion.

Mr V. S. Raju, said that t he downgrading of the US government’s debt credit rating by the rating agency Standard and Poor’s has added new challenges to the Indian financial market. As the country’s economy is facing the threat of a slower GDP growth in the current financial year, industry is reeling under high interest costs; inflation is ruling high and the stock prices are at their 14 months low, trouble in the US economy adds a new dimension.

He also said that one of the 15-largest foreign creditors to the US, India’s exposure to the United States’ ballooning debts is estimated at US $ 41 billion. The overall national debt of the US is moving nearer to $ 15 trillion, out of which it owes over USD 4.5 trillion to foreign countries holding the US government debt securities. While China is the single-largest holder of the US treasury bonds of $1.15 trillion, India stands at 14th position (about Rs 1.83 lakh crore), as per the US Treasury Department data. While the unprecedented downgrading of the US treasury bonds may lower the value of RBI’s holding, the central bank will not be able to switch its reserves to other currencies or to any other form of asset quickly. Some experts feel that the RBI may continue to hold US bonds even with a notch-lower rating, as it has been itself amassing the US treasury securities over the past one year despite a deepening debt crisis there. The Indian holding has grown by about $ 10 billion in the past one year.

As 60 per cent of India’s $60 billion software exports are targeted to the US clients, their weak financials will hamper demand. According to TPI (an Information Service Group Company) data, already the large IT and BPO outsourcing deals in US market were down 50 per cent in the six months January-June 2011 Mr Raju said.

He also expressed the exporters are worried that the debt crisis in the western world will hit demand and lead to a payments problem. Europe and the US account for a third of India's exports. The exporters are expressing concern whether to accept orders coming from the US and the EU (European Union). There is a probability that those might be cancelled mid-stream or our buyers may not be in a position to pay us after receiving goods. In the backdrop of the crisis in the two regions, it is necessary that the Government of India should extend tax sops and other incentives to exporters.

Industry believes that it was the right time for RBI to move ahead of the curve and cut the rates. After all, India could use the current global economic turmoil to its own advantage, just at it withstood the perils of 2008 crisis. It may be noted that a cut in interest rates would have boosted corporate India’s confidence, which has taken a hit. Last but not the least; we need to emphasize the importance of implementing the next phase of structural reforms. Without progress in reforms, investment sentiment will not improve and an opportunity will be missed he said.

Mr M.R. Venkateshan, said in his address is that the Indian model of economy is the global model for entire world. Comparing to America Indian saving is very high. India spending economy as compare to china and India is saving economy as compared to the United States.

Mr S. Thirumalai, Management Consultant, Economist & Past President, FAPCCI, Dr.Somaraju Suseela, President, Social Cause, Dr.T. Hanuman Chowdary, Chairman, Pragna Bharati, Mr Devendra Surana, Senior Vice President, Mr Srinivas Ayyadevara, Vice President and Mr A.S. Kumar, Deputy Secretary General also addressed at the occasion.

Saturday, August 27, 2011

Liabilities Management in Special Situations

The FAPCCI organized a Interactive Session on - ‘Liabilities Management in Special Situations’ today evening at FAPCCI. Mr. A.S. Rao, Regional Director, Reserve Bank of India was inaugurated the session.

Ms. Pramila Rani, General Manager (SME), Andhra Bank, Mr. Sridhar Ramachandran, Director, Brescon Corporate Advisors Limited, Mumbai, Mr V.S. Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Lakshmikanth Inani, Co-Chairman, Banking, Finance and Insurance Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General from FAPCCI and eminent economists, industrialists across the state have participated at the round table on Liabilities Management.

Mr. A.S. Rao is said in his chief guest address is Liabilities Management Involves in adequately meeting Solvency / Liquidity requirements, Controlling and diversify risk, Reduce mismatches in cash-flows, Establish Strategic Directions, Add Value Creation/ Risk adjusted ROC, Capital Allocation and helps in Sustainable business growth even in ‘Economic Down-Cycles’ and Better ability to leverage ‘Economic Up-Cycles”.

MS. Pramila Rani said that the industrialists should have optimum equity for the implementation or restructure of the company. Reasonable cost management is plays a vital role in special situations likes up and downs of the company.

Mr V.S. Raju said that Indian business houses now have grown into large, multinational behemoths competing with companies in the west that have been ruling business landscape of the world since decades. Key enabler to this multi fold growth of Indian business houses has been access to money both from India and abroad. Money has been raised both as Equity and Debt in order to fuel the growth of scale of operations. Naturally, liabilities on the books of businesses have grown in an unprecedented way. However, much more importance is given to managing the assets of the business and not much has been put into “Liabilities Management.” Managing the liabilities on the balance sheet, such that the Assets keep growing in a profitable and sustainable way is Liabilities Management.

The Advantage of Liabilities Management would be Better Credit quality enhancing Banker confidence leading to greater and expeditious access to debt capital, Sustainable business growth even in ‘Economic Down-Cycles’, Better ability to leverage ‘Economic Up-Cycles” and Investor confidence leading to better business valuation and access to share capital.

Mr. Lakshmikanth Inani said that the Liabilities Management is a tool that enables corporate managements to take business decisions in a more informed framework with an eye on the risks that corporate is exposed to. It is an integrated approach to financial management, requiring simultaneous decisions about the types of amounts of financial assets and liabilities - both mix and volume - with the complexities of the financial markets in which the institution operates.

He also said that implementing assets and liability management systems is sure to enhance the productivity of the employees, who are managing the assets and the liabilities in a company. Moreover the management can get timely reminders and reports regarding the assets and liabilities which will definitely help them in taking some critical decisions regarding their business. There are many companies / firms that are using assets and liability management systems and they also manage the assets and liabilities of other companies.

Mr. Sridhar Ramachandran has given a presentation on ‘Liabilities Management in Special Situations’ at the session.

Wednesday, August 24, 2011

Round Table on - Draft Land Acquisition & Rehabilitation Bill, 2011

The FAPCCI organized a Round Table on - Draft Land Acquisition & Rehabilitation Bill, 2011 today afternoon at FAPCCI. Mr. Pankaj Dwivedi, IAS, Special Chief Secretary Govt. of AP & CCLA was inaugurated the session.

Mr V.S. Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, Mr. Srinivas Ayyadevara, Vice Prsident, Mr. Nitin K Paresh, Chairman, Trade & Commerce Committee, Mr. S. Subba Rao, Membership Committee, Mr. M.V. Rajeshwara Rao, Secretary General from FAPCCI and Mr. P.A.S.M. Laxman Rao, Joint Director (RE), Town & Country Planning, Mr. C. Rami Reddy, Joint Director, (II-B), Commissioner of Industries officials from APIIC and eminent lawyers across the state have participated at the round table on Land Acquisition Bill.

Mr. Pankaj Dwivedi explained about the participants on Draft Land Acquisition & Rehabilitation Bill, 2011 at the round table.

He said that the infrastructure across the country must expand rapidly. Land is an essential requirement for Industrialization; Urbanization especially based on manufacturing as well as agriculture and irrigation also to accelerate. Government also needs to acquire land for a variety of public purposes. In every case, land acquisition must take place in a manner that fully protects the interests of land-owners and also of those whose livelihoods depend on the land being acquired.

Under our Constitution, land is a State subject but land acquisition is a Concurrent subject. So far, the basic law governing the land acquisition process has been the Land Acquisition Act, 1894. Although it has been amended from time to time, it is painfully evident that the basic law has become archaic. Land markets in India are imperfect. There is asymmetry of power (and information) between those wanting to acquire the land and those whose lands are being acquired. That is why there has to be a role for the government to put in place a transparent and flexible set of rules and regulations and to ensure its enforcement.

Mr. Dwivedi also said that Land Acquisition and Rehabilitation and Resettlement (R&R) need to be seen necessarily as two sides of the same coin. R&R must always, in each instance, necessarily follow upon acquisition of land. Not combining the two – R&R and land acquisition – within one law, risks neglect of R&R. This has, indeed, been the experience thus far. The draft Bill seeks to balance the need for facilitating land acquisition for various public purposes including infrastructure development, industrialization and urbanization, while at the same time meaningfully addressing the concerns of farmers and those whose livelihoods are dependent on the land being acquired.

Mr V.S. Raju said that with a spate of controversies and clashes over acquisition of farmland for private projects, the Government of India recently unveiled a draft bill to make the process transparent and equitable to all stakeholders including land owners, with provisions not only for suitable compensation but also post-sale rehabilitation. The Draft bill, which seeks comments from public till 31st August, 2011, stresses on Rehabilitation & Resettlement (R&R) by proposing a transparent legal framework aimed at giving adequate compensation to land owners and ensuring rehabilitation of those displaced farmers.

It may also be noted that the National Advisory Council’s (NAC) working Group on Land Acquisition, Resettlement and Rehabilitation recommendation for the replacement of Land Acquisition(Amendment) Bill 2009 (LAA 2009) and Resettlement and Rehabilitation Bill 2009 ( R&R 2009) with a comprehensive single National Development, Land Acquisition, Resettlement and Rehabilitation Act (NLRR).

Workshop on “Development of Dairy Industry in A.P.”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) is organizing a one day State Level Workshop on “Development of Dairy Industry in Andhra Pradesh" – A Changing Perspective" - on September 9, 2011, at K.L.N Prasad Auditorium Federation House, FAPCCI, Red Hills Hyderabad. The workshop is going to be the first of its kind, bringing together all the stakeholders of the dairy industry to a common platform and to address the techno managerial issues cropping up in the context of changing perspective of Dairy industry in AP.

The workshop is designed with a view to familiarize the prospective entrepreneurs who are going to start Dairy Industry in Andhra Pradesh with all relevant inputs and also to address techno managerial issues related to entire Dairy Industry in Andhra Pradesh to enhance overall performance. During the workshop deliberations will be held on aspects like National Dairy Plan relevant to Andhra Pradesh, Present scenario and future perspective of Dairy Industry in Andhra Pradesh, Commercial Dairy Farming and finance for new Dairy Projects, Integrated Dairy Farming, Live Stock Management & Health Care, Milk Chilling and Bulk Coolers, Clean milk Production and Logistics Management, Food Safety and Hygiene animal health care changing technology in processing and packaging equipment etc.

This workshop is meant for senior level officials of State Departments of Animal Husbandry, Dairy development, Food processing, Agriculture, Dairy plants, Milk Unions & State federations, Quality / Standards Certification Agencies, Veterinary Universities, Vaccine and Medicine Manufactures, Cattle Feed Manufactures, Financial Institutions, Packaging and process equipment, manufactures and suppliers and prospective entrepreneurs who are intending to start Dairy Industry.

Please contact Mr L Girijapathi on 9959822264 for registration and further details.

Tuesday, August 23, 2011

Training Programme on “ Effective Sales Management”

The Federation Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in collaboration with IKYA Education and Training Interventions team of experts has successfully conducted a specialized Two day Training Programme on “ Effective Sales Management” at FAPCCI premises on August 22 & 23, 2011 at Federation House, Hyderabad. The participants were successfully trained through modules in Sales Fundamentals, Sales Processes, Classroom, Exercise, role play methods & quiz to make the interaction lively.

As shared by Mr. Ram Mohan Katla, Vice President, IKYA Group looking at the encouraging response in collaboration with FPACCI , IKYA will be organizing series of training programmes in various domains to the SME segment over next two months in basics to advanced skills and urged the SME to benefit through this programmes conducted by domain experts.

The next schedule of the programmes will be circulated through FAPCCI Review.

New Cost Rules for Pharma & Bulk Drugs

The FAPCCI in association with Hyderabad Chapter of Cost Accountants are jointly organized an interactive session on “New Cost Rules for Pharma & Bulk Drugs” today evening at FAPCCI. Mr. V.S Raju, President, FAPCCI was inaugurated the session.

Dr P.V.S. Jagan Mohan Rao, Central Council Member, ICWAI, Mr. K.K. Rao, Vice - Chairman, Hyderabad Chapter of Cost Accountants, Mr. B.L. Kumar, Secretary, Hyderabad Chapter of Cost Accountants, Mr. Dantu Mitra, Practicing Cost Accountant, Mr. K.V. Ranga Rao, Executive Director, Bulk Drug Manufacturers Association (India), Mr. Hari Govind Prasad, Chairman, Corporate Affairs Committee, FAPCCI Mr. Laxmi Niwas Sharma, Past President, FAPCCI, and Mr. AS Kumar, Deputy Secretary General, FAPCCI are the other dignitaries’ for the occasion.

Mr V.S Raju said in his chief guest address is that the The Indian Pharma Industry has been performing exceptionally well with turnover rising from about Rs.10 crore (US$ 2 million) in 1948 to a healthy Rs.1,17,000 crore (US$ 26 billion) in 2010. Pharma exports are booming at Rs.62,500 crore (US$ 13.9 billion), with formulation exports at US$ 5.8 billion and APIs at Us$ 8.1 billion. The country ranks 3rd worldwide by volume of production and 14th by value thereby accounting for around 10% of world’s production by volume and 1.5% by value. This speaks volumes for our quality and competitive prices. There are over 10,500 manufacturing units in India across 3000+ pharma companies making it an intensely competitive market.

Andhra Pradesh has a dominant position in the pharma sector and is well known internationally for its skill in chemical and other synthesis, process engineering and its speed to market. The State intends capitalizing on these strengths, acting quickly in the window of opportunity provided by global regulatory change to build a strong and globally competitive pharmaceutical industry. Hyderabad, which accounts for around one third of India’s total bulk drug production, is considered as the bulk drug capital of the country. A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower. The Indian pharmaceutical industry is large and rapidly growing. The pharmaceutical industry in India is expected to grow $ 75 billion by 2020 Mr Raju said.

He also said about the cost accounting rules is - earlier there were different notifications for each of the 44 industries for preparation of Cost records i.e. Cost Accounting Record Rules (CARR). With the new Cost Accounting Record Rules 2011 having been notified, CARR for 36 industries has been superseded. New Cost Accounting Record Rules 2011 are applicable from year 2011-12 onwards. Now, all the companies including foreign companies which are engaged in the production, processing, manufacturing, or mining activities and which fulfill the following criteria have to mandatorily prepare Cost Records showing margin for each and every product manufactured/ produced/ constructed or services provided. Also the companies will be required to file Compliance Certificate with the MCA within 180 days of the close of financial year. As per the current practice, Central Government used to issue Cost Audit Order on Specific Companies which resulted in inequities as various companies though very big were being left out of the Cost Audit purview.

MACHINE Tool Expo 2011

The FAPCCI in association with Hitex and IndiaMART is jointly organizing ‘HITEX International MACHINE Tool Expo 2011’ and “IndiaMART Process Engineering Expo 2011” at HITEX Exhibition Centre, Madhapur, Hyderabad for 3 days from 1st to 3rd September, 2011.

In this occasion FAPCCI in association with Hitex and IndiaMART is jointly organized a Press Meet today evening at Federation House, Red Hills, Hyderabad. Mr. V.S. Raju, President, FAPCCI, Mr Sanjay Kapoor, COO, Hitex and Mr. MV Rajeshwara Rao, Secretary General, FAPCCI has addressed the media.

Mr V.S Raju said that the A.P., Machine tool industry is developing rapidly during the last three decades due to existence of HMT, BHEL and other such central govt. and private companies at Hyderabad. A number of ancillary units, pertaining to light engineering have come up. As far as processed engineering industry is concerned it consists of a large and varied sector and spread widely across the length and breadth of the country. The exhibition is designed specially to enable the large, medium and small entrepreneurs to reach the majority of users with their products and services in a very short period and in a well planned manner, thereby drastically reducing marketing costs and shortening the prospect of finalization cycle.

Mr Raju also said that the both these exhibitions, there are about 150 stalls out of which 75% of the stalls have already been booked and balance 25% are expected to be filled in shortly.

Mr Sanjay Kapoor said that the HITEX Exhibitions are in fact Machine Tool Expo and would showcase the related products and services besides exploring trade opportunities. It seeks to acquire joint ventures and to develop new projects & designs besides seeking to enhance marketing capabilities. As far as PROCESS Engineering Expo is concerned, the exhibition is designed to reach majority of users with their products and services in a very short period of 3 days and in a well planned manner thereby drastically reducing marketing costs and shortening the prospect-to-finalization cycle. Process engineering sector mainly includes the core industries like Cement, Power, Steel, Metallurgy, paper, Chemical, Fertilizer etc.

Process industry being such a large and varied sector, and is spread widely across the length and breadth of the country. Access to this industry for the small and medium manufacturers as well as service providers has become a herculean task.

The exhibition is designed specially to enable the large, small and medium enterprises to reach the majority of the users with their products and services in a very short period and in a well planned manner, thereby drastically reducing marketing costs and shortening the “prospect to finalization cycle.

His Excellency Mr E.S.L. Narasimhan, Governor of AP will inaugurate the Exhibition’s.

Monday, August 15, 2011

65th Independence Day Celebrations at FAPCCI

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has celebrated 65th Independence Day celebrations at FAPCCI at 8.30am today. Mr V.S. Raju, President, FAPCCI has Hoisted the Flag. Mr. Srinivas Ayyadevara, Vice President, Mr. Nitin K Paresh, Chairman, Trade and Commerce Committee, Mr. Meela Jayadev, Chairman, Indirect Taxations Committee, FAPCCI, Mr. Manoj Kumar Agarwal, Co Chairman, Urban Infrastructure & Telecommunications Committee, Mr. M.V. Rajeshwara Rao, Secretary General and Mr. A.S. Kumar, Dyputy Secretary General, FAPCCI have also participated at the celebrations.

Mr. V.S. Raju while speaking on this occasion - emphasized that unity in diversity is the strength of Indian Nation, while undergoing difficult testing times of the country could come out with flying colors, and show to the whole world about the democratic strength of India.

While the developed Nations are struggling with continued economic recession, India is able to sustain the growth rate and continued to so and hoped more flow of investments from abroad to India particularly to the State of Andhra Pradesh.

On behalf of FAPCCI he also congratulated all the Army and Police Medal awardees of the Nation.

Thursday, August 11, 2011

Press Meet on Bandhs-Impact on State's Economy

The Press Meet onFrequent Bandhs – Loss of Production and Exports Tax Revenue to the State started off at Federation House, Red Hills, Hyderabad.

Mr V.S. Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. M Srirama Murthy, Chairman, Industrial Development Committee, FAPCCI, Mr. V Anil Reddy, Chairman, Energy Committee, FAPCCI, Dr Ashok Kumar Kedia, Co Chairman, International Trade Committee are addressed to the media.

With great sense of pain and concern, FAPCCI brings to the media notice that the enormous loss of the trade and industry are incurring on account of frequent BANDHS.

As you are well aware, the entire industry, trade and services are grievously hurt. The wage earners are losing their wages. Students are losing their education and are put to lot of trouble.

The industry is incurring wrath of its customers. In these days of tough competition and just-in-time supply chain management, the delays and uncertainty in getting their orders executed by the industry in the State, are major concern; the industry is finding it difficult to convince its customers to put up with the delays and uncertainty. It is becoming a herculean task for the industrialists to assuage the angry and agitated customers and get repeat orders from them.

As far as the city of Hyderabad is concerned, the momentum of development in Hyderabad was built over the decades. And, that momentum has been keeping Hyderabad going forward. Had it not been for the ongoing unrest, Hyderabad and also the State would have recorded much higher industrial and economic growth, city has reasonable good infrastructure in terms of roads, airport, IT connectivity availability of skilled manpower among others. But the city is gradually losing out and its image as a preferred investment destination is getting tarnished.

The growth rate of IT sector is also affected quite adversely over the last few years as investors are looking out to destinations such as Chennai, Pune, NCR, Bangalore etc where there is more vibrancy. As a result getting a new business into Hyderabad is becoming a very difficult task given the uncertainty and instability prevailing in the State.

In such a situation of uncertainty and instability several investment proposals awaiting financial closers or collaborations etc., may be have second thought of investing in the State.

On top if the State is losing its most valuable Revenues. They are so very essential for the State to carry on with its development and welfare programs. This loss will entail in slowing down the growth momentum of the State’s economy, which is very essential to raise the prosperity of its people and to eradicate poverty.

In the light of such undesirable and huge loss to the economy, the FAPCCI appeals earnestly to the political parties not to involve the industry and trade and other commercial activities in the bandh calls. FAPCCI also appeals all the concerned that they advise their volunteers and other concerned not to disturb the normal functioning of industry and trade nor forcibly close the factories, nor cause damage to the property and personnel.

FAPCCI also appeals to the Government to take such appropriate measures as are required, so that the Industry, Trade and other commercial activities are not unduly affected in their orderly functioning and cause loss to the economy and exchequer.

FAPCCI earnestly requests the concerned people to leave industry and trade out of the ambit of bandh calls and protect the interests of the common man, employees, industry and over all image of the State as preferred destination for the investments.

In the same spirit, FAPCCI urges the Government to take measures that will protect the good image of the State as preferred destination for investments as well as the orderly functioning of the trade and industry without disruption interruption, and stoppage of work. This will go a long way in arresting the slowing down the economic momentum of the State and project the good image of the Governance.

Indo-Bavarian trade relations have completed 500 years

The Interactive Session on “Strong Bavaria: Strong Locations Business Opportunities for Indian Companies in Bavaria, Germany” started off at Federation House, Red Hills, Hyderabad. The session was inaugurated by Mr. John Kottayil, Executive Director, State of Bavaria, Germany.

Mr V.S. Raju, President, FAPCCI, Mr. T. R. Gopalan, Former Regional Director,
Indo German Chamber of Commerce, Mr. Shyam Sunder Parasi, Chairman, International Trade Committee, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. Srinivas Ayyadevara, Vice President, FAPCCI are the other dignitaries’ at the occasion.

Mr. John Kottayil said in his Chief Guest address is that the Bavaria, with its gross domestic product (GDP) of 430 billion Euro, occupies 9th position of the 27 member-countries of the EU. The per-capita GDP of 34.397 Euro is significantly higher than the German or European average. Bavaria is amongst the markets with the highest purchasing power in the world. International comparative studies certify the outstanding quality of life in Bavaria, where especially the metropolitan regions of Munich and Nurnberg top the lists again and again.

Mr John explained the Indo-Bavarian relations are in excellent shape and can look back on a tradition extending over more than 500 years. After the sea route was discovered in 1497/98 by the Portuguese explorer Vasco da Gama, it was some Bavarian merchants and trading houses, which fitted out the first expedition to India 1505. This was the beginning of overseas trade with India and of a thriving period in Indo-Bavarian trade relations.

Bavarian-Indian trade stood at about 2 billion Euros. India is now the number 4 among Bavaria most important trading partners in Asia. Altogether over 1,000 Bavarian companies already maintain business relations with India. More of 350 of them have representative offices and branch offices or production plants of their own in India. So far, over 65 Indian companies have set up operations in Bavaria.

Mr. V.S. Raju said in his welcome address is that the Andhra Pradesh has emerged as a key state for the knowledge-based industry including IT, pharmaceuticals and biotechnology. The state has a large base of skilled labour, making it an ideal destination for the knowledge sectors. Further, the state has a large pool of semi-skilled and unskilled labour, especially, in the 15 to 49 age group. The State is Ranked 2nd in the country in attracting investments. The booming Andhra Pradesh economy has a lot to offer for foreign investors, foreign institutional investors, venture capitalists, and portfolio managers etc. to leverage vast pool of natural, human and intellectual resources of Andhra Pradesh, apart from various attractive investment opportunities.

Mr. Raju also said as both of Indo-Bavarian systems are based upon individual business initiative and entrepreneurship and upon the stability ensuing from rule by democracy and law, Bavarian and Indian communities experience a great deal of familiarity and a high level of comfort when doing business in and with each other. I am sure, this meeting will give an opportunity the businessmen to know the development taken place in Bavaria, Germany and the scope of establishing business co-operation, joint-ventures, technology import and/or making investment in Bavaria, Germany.

Mr. Shyam Sunder Parasi requested for a Bavarian Help Desk may be set up at FAPCCI, for disseminating or exchange of trade related information, for furthering the trade between the two States.

Mr. M.V. Rajeshwara Rao, Mr. Srinivas Ayyadevara also spoke at the occasion.

Monday, August 8, 2011

The First Indian 8” 3G Tablet PC “BizzBook 3G” – Launched

Hyderabad, 08th August, 2011.

The First 8” 3G Tablet PC model BizzBook3G & BizzBook 1i launched today at FAPCCI Federation House, Red Hills, Hyderabad by Mr. SSR Subramanyam, Chairman of APIIC, and Mr. M V Rajeshwar Rao, Secretary General of FAPCCI.

Mr. P. Nidhin Rao, CEO of Bizz Group has started off with a brief presentation about the company Bizz Group, their products and features of Bizz Book. Then the inauguration of BizzBook1i & BizzBook3G models took place.

Mr. Subramanyam, Chairman, APIIC said in his address is - “It is good to see young entrepreneurs to come with 3G Tablet PCs in affordable prices. Andhra Pradesh Government is very much interested to encourage entrepreneurs with the required infrastructure facilities.”

Mr M V Rajeshwar Rao, SG, FAPCCI later said that young Indian companies have a role to play in the world market. He then praised about the technology and multi usability of the Bizz Book. He also continued that Indian companies should be encouraged to build a brand across the world and it is possible only through the creative thinking of young entrepreneurs.

Mr. Prabhakar Rao, Chairman Raos Group of Educational Institutions said “India should not concentrate more on International market as a customer for electronic goods, rather they should do research and innovate new products in India, this boosts manufacturing sector and improves economy of India. He then added BizzBook3G & BizzBook 1i is appreciable for undertaking main features like low price, fast processor, less weight, durability, compatibility and portability.

About Product:

BizzBook is the first 8” 3G tablet PC in the Indian market. It is a revolutionary device that runs on Android 2.3 (Gingerbread) OS with 1.2 GHz processor and capacitive touch screen display resolution 1280x768. It’s fast processor and high response multi touch makes it easy to play high-spec games, watch movies, sharing photos, listening to music, reading e-books, social networking, and most importantly browsing the web, reading and sending emails.

BizzBook is a definite interactive device for normal people, students and business officials, and exceptionally handy to those who move around. It gives a better experience than a laptop with its sophisticated light weight design of 0.52 kgs and size. People can get connected on the move anywhere, anytime through a wide range of apps available on Android Market. For example you can do video conferencing on 3g using WebEx app and get connected with your colleagues at the meeting table.

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Friday, August 5, 2011

Seminar on “How to Grow your Business Profitably”

The Seminar on “How to Grow your Business Profitably” started off at Federation House, Red Hills, Hyderabad. The session was inaugurated by Mr. V.S. Raju, President, FAPCCI.

Mr K.V. Iyer, Director, Disha EMS, Mr S.S. Banik, Zonal Manager, Bank of India, Mr M. Sreerama Murthy, Chairman, Industrial Development Committee, FAPCCI, Dr Tilak, Management Consultant, Disha EMS, Mr. AS Kumar, Deputy Secretary General, FAPCCI are interacted at the occasion.

Mr. VS Raju said in his Chief Guest address is that the AP Vision 2020 envisages a growth rate of 11% in the Industrial and service sectors and 6% growth in Agriculture up to the year 2020 Micro, Small and Medium enterprises (MSMEs) play a very significant role in the economy, as it is this sector which provides balanced and sustainable growth, besides providing employment opportunities.

However, despite their importance to the economy, most MSMEs are not able to stand up to the challenges of globalization, mainly because of difficulties in Financing and Marketing. Today’s deliberations seek to address those problems specifically by a capable banker Ms BOI and a consulting company -- Disha. We intend to open a line of continuous communication so that you can take benefit from these organizations to help the MSME sector in helping individual unit holders and thereby achieving our stated growth goals.

The Government of India and the State Government are playing a significant part in ensuring credit flow to this sector by offering a number of schemes and incentives; however it remains the part of the banking system to supplement these efforts by providing required finance. The Bank of India has taken an important step in delivering efficiency and effectiveness towards smoothening credit flow by opening an SME City center to help organizations and Disha has on hand a consulting offer which seeks to lay frameworks for management within organizations which is the proper way to grow an organization profitably.

FAPCCI brings these combined services to the delegates and members in timely and efficient manner and provides the opportunity under the slogan of “Grow your Business Profitably” said Mr Raju.

Mr K.V. Iyer, Mr S.S. Banik, Mr M. Sreerama Murthy, Dr Tilak and Mr. AS Kumar also spoke at the occasion.

Delegation meeting with Kwazulu Natal Province officials

The Interactive Delegation meeting with South African officials on Study of Andhra Pradesh and FDI Policiesstarted off at Federation House, Red Hills, Hyderabad. The session was inaugurated by Mr Nkosana Sifumba, Director, Knowledge Management, Trade and Investment Wing of Kwazulu Natal Province in South Africa. Mr. V.S. Raju, President, FAPCCI, Ms Felleng Mahlatsi, Chief Economist, Trade and Investment Wing of Kwazulu Natal Province, Mr. S C Pradhan, Senior Economic Advisor, South African High Commission, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, Dr. Ashok Kumar Kedia, Co-Chairman, International Trade Committee, Mr. C.V. Hariharan, Co-Chairman, International Trade Committee, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI are the other dignitaries’ for the occasion.

Mr Nkosana Sifumba, invited the investments to invest in Tourism, Infrastructure and Manufacturing sectors in Kwazulu Natal Province in South Africa. He said about the province is that the -Kwazulu Natal Province is a rapidly growing area and is by most attractive business and tourism destination in Africa. Sugar refining is Kwazulu capital town Durban's main industry. Sheep, cattle, airy, citrus fruits, corn, sorghum, cotton, bananas, and pineapples are also raised. There is an embryonic KwaZulu-Natal wine industry. Other industries include textile, clothing, chemicals, rubber, fertiliser, paper, vehicle assembly and food-processing plants, tanneries, and oil refineries. There are large aluminium-smelting plants at Richards Bay, on the north coast. Kwazulu Natal Province is the best destination for FDI’s he said.

Mr. VS Raju said in his welcome address is that the According to the Reserve Bank of India, the Andhra Pradesh state’s FDI inflows from April 2000 to April 2011 amounted to US$ 6.09 billion. Andhra Pradesh is ranked at 6th position in the country. The state has had a healthy FDI inflow over the years, primarily, in sectors related to IT and IT Enabled Services, Automotive, Engineering and Electronics. Of the total outstanding investments of US$ 146.1 billion as of March 2010, Andhra Pradesh had a well balanced distribution by sectors with manufacturing, electricity, services, irrigation and construction sharing project investments of about 16 per cent to 32 per cent each.

Mr. Raju also said that the Andhra Pradesh has emerged as a key state for the knowledge-based industry including IT, pharmaceuticals and biotechnology. It is also a leading agricultural state in the country. Seventy one of the 500 top global corporations are present in the state. The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Investment Promotion Policy, 2010-15. Additionally, the state has well drafted sector-specific policies. The state has a large base of skilled labour, making it an ideal destination for the knowledge sectors. Further, the state has a large pool of semi-skilled and unskilled labour, especially, in the 15 to 49 age group. The GSDP of the state was US$ 85.8 billion in 2009-2010 and is growing at compound annual growth rate of 12 per cent annually. This growth was primarily driven by the service sector and was supported by primary and secondary sectors.

Ms Felleng Mahlatsi, Mr. S C Pradhan, Mr. Shyam Sunder Pasari, Dr. Ashok Kumar Kedia, Mr. C.V. Hariharan and Mr. M.V. Rajeshwara Rao also spoke.

Wednesday, August 3, 2011

Seminar on “BSE-SME Exchange & IPR”

Hyderabad (02nd August, 2011)

The Seminar on BSE-SME Exchange & IPRstarted off at Federation House, Red Hills, Hyderabad. The seminar was inaugurated by Mr. Karikal Velavan, IAS, Commissioner of Industries, Government of Andhra Pradesh. Mr. Lakshman Gugulothu, C.E.O, BSE SME Exchange, Mr. V.S. Raju, President, FAPCCI, Mr Manjit singh, Vice President and Mr. V.Madhusudhana Rao, Vice President (Investment Banking), Karvy Consultants, Dr N. Srilakshmi, Head C- LAIMS & IPFC, Ni- MSME, Mr Devendra Surana , Sr. Vice President , Mr Srinivas Ayyadevara, Vice President , Mr M.V. Rajeshwara Rao, Secretary General & Past Presidents and Managing Committee Members from FAPCCI and many businessmen’s are participated at the seminar.

Mr. Karikal Valavan, said in his Chief Guest address is that the “BSE SME Platform provides a great opportunity to the entrepreneurs to raise the equity capital for the growth and expansion of SMEs. It also provides the immense opportunity to the investors to identify and invest in the good companies at early stage. It will help unleash the valuation of the company and in the process create wealth for all the stakeholders including investors, besides considerable long term capital gains tax benefits and facility to exit at any point of time”.

Mr. Laxman Gugulothu, said in his key note addressed on “Raising of Equity Capital and Listing of SMEs on BSE SME Exchange”. He said that the new thing about the SME Exchange is that the issue will be 100% underwritten and this means that the issue will be 100% success. Other new aspect is that there will be support of three years in the secondary market through market making activity. The SMEs with paid up capital up to Rs. 10 crores can come on the SME Exchange, in contrast to the paid up capital of Rs. 10 crores or more for the main board. The Listing norms have been simplified. The issuer has to take the approval of the Exchange and SEBI approval is not required. A copy of the offer document will be sent to the SEBI for their information. The Compliance norms are simplified. Half yearly compliance is required instead of quarterly compliance.

The abridged version of the annual reports need to be sent to the investors instead of the entire annual report and posting the soft copy of the report on the website is sufficient. The issue expenses will be minimal on the marketing and stationery. However, the issue will be charged for underwriting, sub-underwriting and responsibility of three years market making. Market making is compulsory for 3 years, unlike on main platform. Listing fees on BSE SME platform are minimal compared to the main board. The SMEs with the paid up capital between Rs. 10 crores and Rs. 25 crores has the option to get listed either on main board or on the SME Exchange.

Mr. Manjit Sing, Vice President (Compliance) Karvy Investor Services Ltd explained about the “Role of Merchant Banker and Compliances”.

Mr. VS Raju said in his welcome address is that the BSE - SME platform provides a great opportunity to the entrepreneurs to raise the equity capital for the growth and expansion of SMEs. It also provides the immense opportunity to the investors to identify and invest in the good companies at early stage. It will help unleash the valuation of the company and in the process create wealth for all the stake holders including investors, besides considerable income tax benefits and facility to exit at any point of time.

Mr. Raju also said that the SME sector plays an important role in the economy and employment generation. SME sector employs about 70 % of the man power in the industry sector and supports the Large and medium industry sectors in achieving the industrial growth in the country.

Conference on “The Economic Freedom Index 2011”

The Conference on Fastest Growth in Andhra Pradesh: The Economic Freedom Index 2011started off at ITC Kakatiya Hotel, Hyderabad. The Conference was inaugurated by Dr. Jayaprakash Narayan, MLA, President, Lok Satta Party.

Mr Swaminathan A. Aiyar, Consulting Editor, The Economic Times, Mr Devendra Surana, Senior Vice president, FAPCCI, Padma Bhushan Ch. Hanumantha Rao, Economist Former Member, Planning Commission, Mr Siegfried Herzog, Regional Director South Asia, FNF , Mr Srinivas Ayyadevara , Vice President, FAPCCI, Mr M. V. Rajeshwara Rao, Secretary General, FAPCCI are the other speakers st the conference.

The Summery of the program

The Economic Freedom of the States of India 2009 ranks economic freedom in the 20 biggest Indian states, using a methodology adapted from the Fraser Institute’s Economic Freedom of the World annual reports. The main highlights of this study are as follows. The top three states in economic freedom in 2009 were Tamil Nadu, Gujarat and Andhra Pradesh, in that order. This is significantly different from 2005, when Tamil Nadu was still on top but Madhya Pradesh came 2nd, Himachal Pradesh 3rd, Haryana 4th, and Gujarat 5th. The bottom three states in 2009, in reverse order, were Bihar, Uttarakhand and Assam. Back in 2005, Bihar was still last (20th), Assam was 19th and West Bengal was 18th.

The state with the fastest improvement in economic freedom was Andhra Pradesh, moving up from 7th position in 2005 to 3rd position in 2009. Its index score went up from 0.40 to 0.51 on a scale from 0 (no freedom) to 1 (high freedom), an improvement of 27.25 per cent. The second fastest improver was Gujarat, moving up from 5th to 2nd position.

Even as some states improved in economic freedom, others worsened, showing that there is no uniform all-India trend. Only two states registered large increases in economic freedom: Andhra Pradesh and Gujarat. Haryana, Tamil Nadu, West Bengal, Rajasthan and Jammu & Kashmir registered moderate increases in economic freedom. The states with the largest decreases in economic freedom were Madhya Pradesh, Orissa, Uttarakhand, Punjab and Himachal Pradesh. Punjab, once among the best performers, slipped from 6th position in 2005 to 12th position in 2009. It has been riding too long on its earlier successes, and its present track record on governance, broadly defined, is anything but satisfactory.

States with higher levels of economic freedom tended to perform better across a range of economic variables. They also had higher levels of in-migration, while states with the least economic freedom had higher levels of out-migration.

Andhra Pradesh reduced waste and corruption and implemented innovative reforms such as contract teachers to supplement regular teachers, social audit of employment schemes, and private sector participation in infrastructure projects which had earlier been government monopolies.

Three factors—buoyant agriculture, rural infrastructure, and the elimination of Maoism—boosted employment and attracted in-migration from other states.

A number of independent studies and indicators support our analysis of Andhra Pradesh. The World Bank/IFC report Doing Business 2010 ranks India a lowly 133rd out of 183. Some Indian cities have worse business conditions than others. Doing Business in India 2009 ranks Hyderabad as the second easiest place to do business among 17 top cities.

Tuesday, August 2, 2011

New land policy for industries soon: Chief Minister

Chief Minister N. Kiran Kumar Reddy on Thursday announced that the State government would soon come out with a new transparent land policy for industries.
Speaking at the 93rd annual function of FAPCCI Excellence Awards here, he said that an integrated education and employment policy to create 15 lakh jobs would also be unveiled shortly under Rajiv Education and Employment Mission.
Pointing out that industries were finding the students coming out of educational institutions not good enough for employment, he urged the captains of industry to partner with the government in ensuring a synergy between their requirements and the education imparted to students.
Referring to the concern expressed by FAPCCI president V.S. Raju over frequent power cuts, he said the State government was sensitive to the situation and was purchasing power. However, Andhra Pradesh was in a better position than Gujarat and the government was keen to make the State surplus on power front.

While mentioning that Andhra Pradesh was implementing the maximum welfare schemes compared to any other State, he said the government was trying to reduce taxes where ever possible.

Lauding Praveen Kumar Gorakavi, an engineering student from Osmania University, who received an award for outstanding contribution to science and to the technological aspects of nano materials, the Chief Minister said many sincere students were facing problems due to agitation. He, however, added that it was a matter of time before it was resolved and observed that there should be more of education and less of politics at the university.

Later, he gave away the awards to various industries and also to some individuals.

Mr.V.S. Raju in his welcome address urged the Government to announce the State Power Purchase Policy and implement the same without any delay.He also urged Chief Minister to increase the budgetary allocation this year to industrial sector to Rs.3,000 crore and double it next year.

FAPCCI Managing Committee with Hon'ble CM

FAPCCI Award Winners with Hon'ble CM