CII Communique July 2011

ContentsVolume 20 No. 7 July 201106 cover storyUS - India Economic and Financial PartnershipThe high level interactions at the secondannual meeting of the US - India Economic andFinancial Partnership event underlined thedeepening relationship between the two nationsand the implications therein for the globaleconomic order.12 spotlightCII CEOs Delegation to the UKWith a focus on ‘Partnerships in Manufacturing,’the CII delegation met with business leaders,political leaders, academia and think tanks inthe UK to outline the next steps towardsgreater partnerships.17 tributeRemembering Dr. Eliyahu ‘Eli’ GoldrattVignettes from CII’s long and fruitful relationshipwith the Management Guru, who recently passed away.30 corporate india1st National M&A SummitThe M&A Summit discussed the impact of thechanging regulatory landscape while learningfrom India’s largest acquisitions for maximumvalue creation.plusAll our regular featuresWe welcome your feedback and suggestions. Do write to us atEdited, printed and published by Chandrajit Banerjee, Director General, CII, on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre,23, Institutional Area, Lodi Road, New Delhi-110003 Tel, 91-11-24629994-7 Fax, 91-11-24626149 Email, ciico@cii.in Website, www.cii.inPrinted at Lustra Print Process. B- 249 Naraina Industrial Area, Phase 1, New Delhi - 110 028 Registration No. 34541/79Journal of the Confederation of Indian Industrycommunique@cii.in2 | July 2011 Communiqué

cover storyIndia and the worldFocus onNextGenerationof EconomicReformsin IndiaThe high level interactionsat the second annualmeeting of the US - IndiaEconomic and FinancialPartnership eventunderlined the deepeningrelationship betweenthe two nations and theimplications therein for theglobal economic orderUS - India Economic andFinancial PartnershipPranab Mukherjee, Finance Minister of India, greetingTimothy F. Geithner, US Secretary of Treasury, as Meera Shankar,Ambassador of India to USA, looks onThe transformation of Indo – US relationsover recent decades today encompasses almost allareas of international co-operation. Today’s matureand multi-faceted relationship encompasses a rangeof issues – from geo-political security and scientificand technological co-operation to economic andfinancial partnerships. It is a ‘strategic partnership’ thatunderlines the need for mutual dependence and cooperationbetween two large democracies in the currentglobalized political set up. Not surprisingly, the strongties and the broad-based engagement between thetwo countries prompted President Obama to deem theIndo-US relationship as one of the ‘defining partnershipsof the 21st century.’Mr. Pranab Mukherjee, Finance Minister of India, andMr. Timothy F. Geithner, US Secretary of Treasury,launched the US-India Economic and FinancialPartnership in April 2010 with the objective ofstrengthening bilateral engagement and understandingon the macroeconomic arena, financial sector andinfrastructure-related issues.6 | July 2011 Communiqué

cover storyR Gopalan, Secretary,Economic Affairs, IndiaS Gopalakris​hnan,Vice President, CII,and President & CEO,Infosys Technologi​esU K Sinha,Chairman, Securities &Exchange Board of IndiaDr Kaushik Basu,Chief EconomicAdvisor, IndiaDr Subir Gokarn,Deputy Governor,Reserve Bank of IndiaLael Brainard,Under Secretary forInternational Affairs, USDept. of the TreasuryGrowth TrajectoryThe economic intelligentsia who attended the eventin Washington highlighted India’s impressive growthtrajectory. Dr Kaushik Basu, Chief Economic Advisor,Government of India, brought home the point thaton the back of sound economic fundamentals andgame-changing reforms, India’s medium and longterm growth outlook is robust and would easily standat above 8%.He stressed the need for sustaining the growth momentumfrom the perspective of employment generation, pointingout that a 1% increase in GDP growth would createone million jobs.Dr. Basu noted that both India and the US sharefundamental aspirations in terms of democracy, a vibrantmedia and secularism, which could translate into mutualeconomic benefits.On similar lines, Dr Subir Gokarn, Deputy Governor,Reserve Bank of India, presented the RBI projectionfor growth during 2011-12 at 8 per cent. Concedingthe possibility of a drop in the growth momentum inthe short run on account of supply side pressures, he,however, affirmed that long term growth prospects wouldbe robust if inflation was managed efficiently.Infrastructure Financing andInvestment OpportunitiesMr R Gopalan, Secretary, Economic Affairs, Ministryof Finance, India, observed that India’s infrastructurefinancing requirements in the next five years andthe up-coming manufacturing policy would facilitateenormous investment opportunities for global investorsto the extent of more than US $ 1 trillion. The NationalManufacturing Policy is tuned to create nationalinvestment and manufacturing zones with world classinfrastructure that would encourage mega investmentswhile there is a sustained and continuous policy churnto resolve impediments in land acquisition, environmentalclearances and other clearances, he said.Deepening the Capital MarketsMr U K Sinha, Chairman, Securities and ExchangeBoard of India (SEBI) assured that deepening thecapital markets and improving the access to them forfinancing growth is high on the regulators’ agenda.He informed that efforts are being made towardssimplification of products and customer convenienceso as to improve the reach of capital market productsacross the length and breadth of India, and particularlyin rural areas.8 | July 2011 Communiqué

cover storyKemal Dervis,Vice President andDirector, GlobalEconomy & Development,Brookings Institutio​nDr Janmejaya Sinha,Chairman, CII NationalCommittee on FinancialInclusion, and Chairman,Asia Pacific, The BostonConsulting GroupStrobe Talbott,President, BrookingsInstitutionBruce Katz,Vice President andDirector, MetropolitanPolicy Program,Brookings InstitutionKey SpeakersSpeakers at the conference from the US Dept ofthe Treasury included Mr. Charles Collyns, AssistantSecretary for International Finance; Mr. Barry Gray,Senior Advisor, Office of Technical Assistance; andMr. Aaron Klein, Deputy Assistant Secretary forMacroeconomic Policy.From the corporate sector, Mr Ajit Gulabchand,Chairman, CII Urbanisation & Future Cities Council,and CMD, Hindustan Construction Company Ltd;Mr Rajiv Lall, Chairman, CII Infrastructure Council,and MD & CEO, Infrastructure Development FinanceCompany (IDFC); Mr Nasser A. Malik, MD, CapitalMarkets Origination, Citigroup Global MarketsInc.; and Mr Michael Hanson, Director and SeniorEconomist, Bank of America- Merrill Lynch GlobalResearch, addressed the conference. From academia,the conference drew Mr Strobe Talbott, President,Brookings Institution; Mr Kemal Dervis, Vice Presidentand Director of Global Economy and Development,Brookings Institution; and Mr Arvind Subramanian,Senior Fellow, Peterson Institute for InternationalEconomics, amongst others.India-US trade has soared to $48 billion in 2010while investments in both directions are robust.Indian companies support some 300,000 jobsin USA. The CII-Brookings Institute Conferenceadvanced the role of the private sector in theUS-India bilateral economic partnership, with in -depth discussions on macroeconomics, the financialsector and infrastructure-related issues, to unlock thehuge potential in bilateral trade and investment forboth economies. The dialogue reviewed economicdevelopments in both countries with a view to elicitsynchronized policy actions in the context of the G20 commitment to strong, sustainable and balancedgrowth, engaging businesses of both sides in theemerging opportunities in India.CII DelegationCII organized a high-level delegation of business leaders to USA coinciding with the visit of the Finance Minister ofIndia to Washington DC. Led by Mr S Gopalakrishnan, Vice President, CII, and CEO and MD, Infosys Technologies,the delegates included Mr Venu Srinivasan, Past President, CII, and MD, Sundaram-Clayton Ltd; Dr Janmejaya Sinha,Chairman, CII National Committee on Financial Inclusion, and Chairman, Asia Pacific, The Boston Consulting Group;Mr Jignesh Shah, Chairman, CII National Committee on Civil Aviation, and Vice-Chairman, MCX Stock Exchange;Mr Ajit Gulabchand, Chairman, CII Urbanisation & Future Cities Council, and CMD, Hindustan ConstructionCompany; Dr Rajiv Lall, Chairman, CII Infrastructure Council, and MD & CEO, Infrastructure Development FinanceCompany; Mr. Joseph Massey, MD and CEO, MCX Stock Exchange; Ms. Falguni Nayar, CEO & MD, KotakInvestment Banking, and Director, Kotak Securities; Mr. Naresh Takkar, MD & CEO, ICRA Ltd.; Mr. Nasser A.Malik, MD, Citigroup Global Markets Inc New York and Mr. Lamon Rutten, MD & CEO, MCX, among others.10 | July 2011 Communiqué

SpotlightIndia and the worldFocus: Partnershipsin ManufacturingCII CEOs Delegationto the UKMr. B Muthuraman, President,CII, and Vice Chairman, TataSteel Ltd. and Chairman, Tata • ManufacturingInternational Ltd; led the annual • Innovations and DesignCII CEOs delegation to London,• Energy and Clean TechnologyUK, accompanied by 15 seniorrepresentatives of Corporate• Infrastructure FinancingIndia, from 29-30 June. With • Healthcare Servicesa focus on ‘Partnerships in • Skill DevelopmentManufacturing,’ the delegation• Small and Medium Enterprisesmet with business leaders,political leaders, academia andthink tanks in the UK to outline the next steps towardsgreater partnerships.The two day visit commenced with the annual conferenceon ‘UK-India: Next Steps Towards Greater Partnerships,’jointly organized by CII, the Confederation of British Industry(CBI) and the University College, London (UCL).The UK-India partnership is about strategic partnershipand not just about buying and selling transactions, saidLord Stephen Green, Minister for Trade and Investment,UK, at the conference. Cutting edge collaborations arealready developing, whether through universities in bothcountries working together in areas like nano-technologyKey Areas of Partnershipand lightweight materials or Tata’ssuccess with Jaguar Land Rover,and their R & D investment in theUK, he observed.Looking forward to closerpartnerships with India whichwill create jobs, drive tradeand secure a prosperous futuretogether, Lord Green stressed thatthe UK government is committedto innovation, which is why it isinvesting £ 200 million in newtechnology innovation centres across the country. TheUK also recognizes the importance of manufacturingas it seeks to re-balance its economy for growth, hesaid. Lord Green later released a CII - UCL report on‘Partnerships in Manufacturing: Roadmap Ahead.’Mr Nalin Surie, High Commissioner of India to the UK,said the report contains ten recommendations in linewith the areas that the two governments have beenlooking at. He urged both countries to refocus onmanufacturing, especially in the SME and advancedmanufacturing sectors, to provide additional employmentand sustainability.12 | July 2011 Communiqué

India and the worldProf. David Begg, Principal, Imperial College Business School;Chandrajit Banerjee, Director General, CII; B Muthuraman,President, CII, and Vice Chairman, Tata Steel Ltd. and Chairman,Tata International Ltd; Lord Stephen Green, Minister for Tradeand Investment, UK; Nalin Surie, High Commissioner of India tothe UK; Dhruv Sawhney, Past President, CII, and CMD, TriveniEngineering & Industries Ltd; Prof. Michael Worton, Vice Provost,UCL, and Anil Shrikhande, President, Rolls-Royce, India, releasingthe report on ‘Partnerships in Manufacturing: Roadmap Ahead’Mr B Muthuraman said India’s manufacturing sectoris under rapid transformation, and innovation inmanufacturing is the way forward. India has becomevery competitive in low and medium end manufacturingby adopting continuously improving processes, cleantechnology, just in time management, TPM and so on,he pointed out.He said manufacturing would be the prominent area ofcooperation between India and the UK, with both countriesjointly exploring emerging areas in manufacturing andcooperating in new technologies for SMEs. The UK hasover the years, developed very good skills in high endmanufacturing and advanced manufacturing in the areasof defence, power generating plants and aerospace, allareas where India is seeing huge demand, he said.The conference featured sessions on ‘Partnershipsin Innovations and Design’, and ‘Partnerships in SkillDevelopment’. Mr Adi Godrej, President DesignateCII, and Chairman, the Godrej Group, speaking at thesession on Innovation and Design, identified Education,Health and IT as the key areas for partnerships in theservices sector.Over 200 delegates from business, government, academia,think tanks and the media, attended the event.Naushad Forbes, Director, Forbes Marshall; Philip Bouverat,Director, JCB; Rajive Kaul; Past President, CII, andChairman, Nicco Corporation Ltd; Dr David Clark,Principal Fellow, Warwick Manufacturing Group;Dr Mukesh Aghi, CEO (Asia Pacific), Steria Ltd andAdi Godrej, President Designate CII & Chairman, GodrejGroup, at the session on Innovations and DesignSimon Nathan, Sr Policy Advisor, Education & Skills,CBI; Atul Punj, Chairman, Punj Lloyd; Sunil Kant Munjal,Past President CII & Chairman, Hero Corporate Services;Vincent Emery, Vice Provost (South Asia & Middle East),UCL and Suhel Seth, Managing Partner, CounselageIndia, at the session on Skill DevelopmentCommuniqué July 2011 | 13

India and the worldChandrajit Banerjee, B Muthuraman, Sir Roger Carr, President, CBI, and Adi GodrejCII – CBI TiesThe delegation met with Sir Roger Carr, President,Confederation of British Industry, and Chairman CentricaPLC, at an internal meeting of the two organizations, toidentify areas of cooperation between CBI and CII.The mission concluded on a high note with the privatereception by Prof. Lord Kumar Bhattacharyya, Director,Warwick Manufacturing Group, for the delegation at theHouse of Commons. Lord Bhattacharyya’s reception hasbecome a much awaited annual event that brings togetherthe delegation members with esteemed members of theBritish Government, MPs from all parties, Members ofboth the Houses, and UK Ministers.B Muthuraman with Gregory Barker, Minister of Statefor Energy and Climate Change, UK, at the CIIIndia ReceptionThe DelegationThe CII CEOs Delegation to UK, led byMr. B Muthuraman, President, CII, and Vice Chairman,Tata Steel Ltd, and Chairman, Tata International;included Mr. Adi Godrej, President-Designate, CII,and Chairman, Godrej Group; Dr. Mukesh Aghi, CEO,(Asia Pacific), Steria; Mr Subodh Bhargava, PastPresident, CII, and Chairman, Tata CommunicationsLtd.; Mr Naushad Forbes, Director, Forbes Marshall;Mr Prashant Jhawar, Chairman, Usha Martin Ltd;Mr Rajive Kaul, Past President, CII, and Chairman,Nicco Corporation Ltd; Mr Sunil Kant Munjal, PastPresident, CII, and Chairman, Hero Corporate ServicesLtd.; Mr Sanjay Nayar, CEO, KKR India Advisors;Mr Deepak Premnarayen, Chairman, ICS Group;Mr Atul Punj, Chairman, Punj Lloyd Ltd.; Mr DhruvM Sawhney, Past President, CII, and CMD, TriveniEngineering & Industries; Mr Suhel Seth, ManagingPartner, Counselage India; Mr Phiroz Vandrevala, MD& Vice Chairman, Deligenta Ltd and Mr ChandrajitBanerjee, Director General, CII.B Muthuraman; R C Solanki, Chairman, AMG, and Editor,Garvi Gujarat; Dr Vince Cable, and Nalin Surie, at theCII India Reception in LondonPeter Luff, Minister for Defence Equipment, Support and Technology,UK; Prof. Lord Kumar Bhattacharyya, Director, WarwickManufacturing Group, and B MuthuramanCommuniqué July 2011 | 15

tributeDr. Eliyahu ‘Eli’ GoldrattGenius,Management Guru,Philosopher,Iconoclast...A TributeDr. Eliyahu Goldratt, or ‘Eli’ ashe preferred to be called, passed awayon 11 June after battling lung cancer.He was 64.The inventor and author of the ‘Theoryof Constraints’ was an internationallyrecognized leader in the development ofnew business management philosophiesand systems. His ideas and concepts arepracticed by consultants and educatorsaround the world, and utilized by manyof the world’s largest corporations,including IBM, Procter & Gamble,AT&T, NV Philips, ABB and Boeing.Unconventional, stimulating, and ‘aslayer of sacred cows,’ Dr. Goldrattwould exhort his audience to examineand reassess their business practiceswith a fresh, new vision.Originally trained as a scientist, Eli shot to fame withthe release of his first book ‘The Goal’ in the early 80s.The Goal, which still sells like hot cakes, has beentranslated into several languages across the worldincluding several Indian languages (Hindi, Marathi andTamil). A best-selling business textbook written in anovel form, The Goal illustrates his celebrated Theoryof Constraints (TOC), an overall framework for helpingbusinesses determine:• What to change —not everything is brokenDr. Eli Goldratt was an innovative management thinker and practitioner.His Theory of Constraints is a path-breaking management theory aimedat improving business performance by identifying system constraintsand de-bottlenecking them.The Godrej companies have engaged with Dr. Goldratt and implementedTOC concepts in several businesses. The results have been outstanding.We have effectively expanded production capacities with zero capexinvestment. We have also expanded distribution of our key productsin focused geographies without additional marketing investment.Moreover, TOC has given us a completely new perspective in dealingwith business issues.Dr. Goldratt’s unique contribution has undoubtedly left a lasting imprinton contemporary management thinking.Adi B Godrej,President-Designate, CII, and Chairman, Godrej Group• What to change to —what are simple, practicalsolutions, and• How to cause the change — overcoming the inherentresistance to change.Dr Goldratt has written numerous books on relatedtopics, including It’s Not Luck and Critical Chain. Hislatest book, The Choice, rapidly became the No 1best seller in Japan. A frequent contributor to scientificjournals, magazines and business publications, EliGoldratt was the Founder and Chairman of the GoldrattGroup (Goldratt Schools, Goldratt Marketing and GoldrattCommuniqué July 2011 | 17

looking for .’retributeConsulting), which has taken the Theory of Constraintspractices to new heights with ‘Viable Vision,’ a platformto improve business productivity and profitability. ViableVision provides the strategy and specific tactics to deliverunprecedented performance and bottom-line results inall aspects of a company’s operation.Eli’s approach to managing businesses was unconventional,and based on ‘Cause and Effect.’ He believed that humanbasedsystems are an essential part of nature, and hencethe rules that govern nature also apply to human beings.He always strove for the development of the ‘pocket ofsanity’ in human relationships. A staunch believer of theSocratic way of teaching, Eli used the Socratic techniqueto unravel his revelations.Over the last four decades, Dr Goldratt traveledextensively across the world to deliver his thoughts onTOC to benefit businesses worldwide.His four basic beliefs that• Reality is exceedingly simple• People are good• There are no conflicts in reality• Any situation, no matter what, can be substantiallyimprovedhave become the foundation pillars of the TOCphilosophy.During the recent global slowdown, he took it as hispersonal mission to travel across the world (includingseveral Indian cities) to convince audiences that ‘Recession’was a wrong understanding of the prevailing reality. Rather,he logically explained how demand was likely to bounceback in a short while, and there was no need for kneejerkreactions from companies such as laying off theirworkforce, etc. His prediction was indeed accurate, as thedevelopments of recent months have shown.Dr Goldratt’s TOC concepts are profoundly applicableto personal life and in resolving personal conflicts, asmuch as to businesses, cutting across the boundariesof country, culture, and language. One of his recentinnovations was a holistic method to judiciously intertwinevarious solutions to deliver exponential bottom lineresults to companies.Eli leaves behind a huge treasure trove of knowledgefor the TOC community and the world to use. He oftensaid that his personal goal was to enable ‘the world tothink’. He did that, exceedingly well. And, through therich legacy he leaves behind, will continue to do so.CII will especially miss Dr Goldratt.Raman FibreScienceIntelligent MaterialsDO YOU HAVEAR&D PROBLEM?Do you need to improve your product?Do you need to reduce your product material costs?Are you looking to develop a new material?Do you need to create value-added products fromyour by-products or wastes generated?Contact us at:Raman FibreScience Private Limitedwww.ramanfibre.com18 | July 2011 Communiqué

tributeRemembering Eli...Chandrajit Banerjee,Director General, CII,recalls CII’s long andfruitful relationship withthe Management GuruIn November 1999, CII’s Quality Summit presented theTheory of Constraints to Indian Industry by inviting Dr EliGoldratt to India. His hour-long address in New Delhi waspowerful, loud and clear. Eli Goldratt and his Theory ofConstraints gradually gained popularity after that.We had met Eli in his home in the Netherlands threemonths earlier, to invite him to address the Summit, as hewas particularly insistent that if we needed him in India,we would need to convince him ‘why’ we needed him.That meeting lasted five hours, followed by an eveningmeal. Selling India to him was easy.. the next step wasselling TOC to India ...Eli invested in India based on his faith and belief in theIndian corporate sector. He believed that Indian CEOshave a high degree of commitment based on a longterm vision and are willing to work very hard for atleast two to three years to transform their companiesthrough TOC.The TOC is a new way of thinking, consistent with TotalQuality Management. Indian Industry, which was alreadypracticing TQM, found it relatively easier to adopt thisconcept. Eli worked with some of our large membercompanies and made a big impact. These companiesbelieve that turning to TOC made a huge difference! Eliwas motivated to spend even more time in India.He spent good quality time in India to develop capacity:publishing and releasing books, selling videos, creatingnet-based services leading to successful companiesand TOC champions... He also conducted publicseminars and worked with companies to help in thecontextualization of TOC for India. He appreciated andrespected Indian values and culture and evolved solutionsthat would work for India. Under Eli’s guidance, someof the world’s best TOC experts also worked in India tocreate ‘TOC learning and practicing companies.’A decade later, in 2009, Narayan Sethuramon, ManagingDirector, WS Industries, brought CII and Eli together fora three day seminar ‘Now and in the Future’ in NewDelhi. CII partnered with Goldratt Consulting for theseminar, and with the Tata Management Training Centrefor promoting TOC training programmes and events.Each of his seminars became a book launch event, ashe wrote everything that he experienced, and felt thatwould help people get better insights into solving theirproblems.In the last few years, there was urgency in him. Consciousof the fact that most people in his family did not survivebeyond the age of 60, once he reached that age, hestarted preparing for the end. Even when he was dying,every conscious moment was spent at his computer,working on his two books. He called people whom hewanted to teach whatever he had not been able to do, tohis death bed. Eli refused to take chemotherapy, becausehe wanted his mind to be focused and clear. He did notstop smoking his pipe, although he was battling lungcancer, to keep his mind functional and focused till theend – so that he could continue to share his ideas!CII salutes Eli, the teacher, and believes that thespark he lit will continue to glow…Our President, MrMuthuraman, and President Designate, Mr Adi Godrej,had approached Eli to seek some of his time and helpto set up a new initiative, the ‘TOC Club India,’ to helpspread TOC to the non-corporate sector – schools,entrepreneurs. The CII Institute of Quality intends totake this idea forward in the days to come.Communiqué July 2011 | 19

tributeNow and into the FutureEli Goldratt presented a spectrum of ideas and suggestionson ‘Growth with Stability’ in his special three-day workshopconducted in February 2009. We share some highlights...The financial crisis triggered in the USAin 2008 led to a meltdown across theglobe. India, though less impacted thanmany other countries, saw lower growthrates in the manufacturing sector in thelast two quarters of 2008, as comparedto the previous year.To assist member companies cope withthe situation, CII, in association withEli Goldratt and Goldratt Consulting,organised a three-day workshop ‘Nowand Into the Future – Growth withStability’ conducted by Dr. Eli Goldratt forparticipants from diverse manufacturingcompanies across India on 21-23February 2009 in New Delhi.Eli believed that the real constraint incompanies was management bandwidth.Striving to constantly activateall the resources all the time is not a recipe foreffective operations. A priority system for the shop floorMaking Improvements in Operations• Improvements must take only months to implement,not years.• Resolve the conflict of short-term vis-à-vis longtermimprovements, as there is none.• Focus should be on improving flow throughoperations. Abolish local efficiencies and recognizethat flow concepts are universal, but applicationhas to be customized for each environment.In doing so, one must balance flow, and notcapacity.• Solutions are simple. Avoid complexity.• TQM, TPM, TPS and Six Sigma are useful butnot adequate to address the issues holistically.• Investing in improvement generates cash ten timesfaster than cutting costs.Dr. Eli Goldratt, conducting a workshopin New DelhiOvercoming Obstacles• Obstacles of mind :– I don’t have enough brain-power– Reality is complex– Tendency to blame peopleis required. ‘Buffer-management’is the most appropriate prioritysystem. To start with, a good waycould be to choose a time bufferequal to half the current lead time.The relationship between sales andproduction must be tightened.Making Companies GrowDr Goldratt suggested thatcompanies should plan theirgrowth according to the growthin real wages and not the growthin GDP. Today’s needs have to betotally acknowledged by the client.Growth has to be accompanied byhigher stability.• Emotions and logic need not contradict each other.• I will not sacrifice anybody for my goal, but I willnot sacrifice my goal for anybody.• In an organization, responsibility and authorityhave to match perfectly.• 70% of the sentences with ‘because’ used todayare wrong.• Toyota hired 6000 retired people as mentors tomaintain the DNA of its Toyota Production System(TPS).• Humans have two gifts or abilities:– To generate patterns, rules etc.– To understand reality through cause and effect20 | July 2011 Communiqué

tributeImprovements in Project Environment• Touch time in projects is higher relative to leadtime, as compared to manufacturing.• Projects are huge ‘A’ type structures.• Projects have higher variability.• The problem in projects is inflation.• Standard rule is to reduce the number of openprojects by 25%.• A system has to beput in place to ensurethat every due datecommitment is givenbased on the yet unallocatedcapacity ofthe bottleneck.• Bad multi-taskingis most damagingin managing acompany.• The reduction of‘bad multi-tasking’immediately reduces the touch time.• Set reasonable priorities: the laying out ofpriorities by top management is usually notefficient.• Most delays in a project do not delay the project.• The problem is that ‘safety’ is put at the task level.• All safety should be put only at the ‘projectlevel.’• It is a mistake to think that the project will finishon time by finishing each of the tasks on time.• Parkinson’s Law: ‘Work expands to fill the allottedtime.’• The project buffer should be one-third of the totallead time.• The priority is now set by how much of the taskis consuming into the project buffer.• Real completion is measured by how much ofthe critical chain is done.• In a project environment, typically afterimplementing TOC, lead times are cut by 30%and OTD goes to around 95%Dr. Eli Goldratt in his book ‘The Critical Chain’explained how these elements work in a real businessenvironment.Arun Bharat Ram, Past President, CII, Chairman, CII EducationCouncil, and Chairman, SRF Ltd, with Dr. Eli GoldrattHow can we see the opportunities?• Put your goal in life higher than your impressionof your father’s goal in life.• Eli’s initial goal was to ‘teach the world tothink.’• Description of ‘good luck’ is ‘Preparation meetsOpportunity.’• Description of ‘bad luck’ is ‘Reality meeting Lackof Preparation.’• There is a parade ofopportunity constantlygoing past your nose.Products & MarketsIt is time to develop newproducts at the pace themarket wants! Do wesense these changesin the markets and inour customers? Is ourmarketing suggesting new offers at the samepace?• The lifetime of golf clubs is 3 months.• Development time of new products is toolong.• Today, companies develop more than onegeneration of the same product at the sametime.• When market life becomes less than total supplytime, obsolescence increases.• When obsolescence increases, retailers askfor rebates which reduce the margins of themanufacturer.• In a Make-to-Stock (MtS) environment, whocreates the low price in the market?• Work on customer consumption on a replenishmentbasis.• Excess capacity has to be converted intosales.• Mining equipment is now being sold on a ‘payper metric tonne extracted’ basis.• Any machine which costs more than US$50,000can be sold on this basis.22 | July 2011 Communiqué

tributeAttention Owners and CEOs!! Where do we begin?• Plan your company’s growth according to growthin real wages and not growth in GDP.• The needs of your products and business have tobe totally acknowledged by the client.• Growth has to be accompanied by higherstability.• Stability has to be increased first so that the buy-inof everyone is obtained.– Stability of operations– Stability of sales– Stability of everything• The first action has to be to increase stability whilebuilding the base for higher profits.• A company must achieve Viable Vision in fouryears or less. One indication of this is a companyachieving the impossible at least twice within4 years, while increasing its stability.• Company’s resources:– Top management bandwidth– Middle management stamina• We are limited only by what do we want to do,not what can we do!• Take prudent risks, not real risks.• Strategy is the answer to the question ‘what for?’• Tactic is the answer to the question ‘How?’• It is not at all important what the CEO thinks. Whatis important is what the people think that the CEOis thinking.• Any competitive edge is only for a window of time.• Toyota has proven operational excellence to be asuperior competitive edge. Today they are reshapingtheir future.• Capacity expansion to be done only when thecompany’s lead times are more than industry leadtimes.• In a base growth scenario, don’t try to increaseselling prices.• Enhanced growth is ‘evolution,’ not ‘revolution.’ Itis building on the steps and actions taken duringbase growth.• Clients will pay for Rapid Response because theyare being secured.Book launch: ‘The Choice’CII organised an exclusive session on the occasionof the release of Dr. Eli Goldratt’s book ‘TheChoice’ on 20 February 2009 in New Delhi. Therelease was attended by eminent people frompolitics, government and industry.Ms D Purandeswari, Union Minister of State,HRD, and Mr. Ajay Shankar, then Secretary,Directorate of Industrial Planning and Promotion,(DIPP) Union Ministry of Industry and Commerce,addressed the event.Giving a new perspective to the then prevailingglobal financial crisis, Dr. Eli Goldratt endorsed'Cause and Effect' as an analytical tool andsuggested that companies should minimise theeffects of recession by addressing concerns intheir operating mechanism which may rangefrom supplier apprehension to maintainingsufficient inventory stocks.D Purandeswari, Union Minister of State, HRD, releasing ‘The Choice’, withDr. Eli Goldratt and Narayan Sethuramon, MD, WS Industries Ltd.People in India should not worry as India is emerging as a strong consumer nation. India has entered into aconsumerist spiral which will take the nation into the future, he had said.Communiqué July 2011 | 23

economyanalysisImplications ofthe Retail FuelPrice HikeThe Government hopes to cut down its ballooningsubsidy bill with the recent price hike, but this step islikely to take inflation back into double digits again.In an attempt to mitigate the impact of rising internationalcrude oil prices and cut down the under recoveries of oilcompanies, the Government of India hiked the price ofdiesel by Rs 3 per litre, LPG by Rs 50 per cylinder andkerosene by Rs 2 per litre on 24 June. This implies anincrease of 9% in the price of diesel, 16% in kerosene,and 14% in LPG, respectively, over the previous price.Earlier, in May, the Government had increased the priceof petrol by Rs 5 per litre, or 9%.International crude oil prices have spiraled up in the lastone year. The Spot FoB price went up from US$ 72.65per barrel in June 2010 to US$ 112.44 per barrel in June2011; implying an increase of more than 50%. However,prior to the recent hike, petrol prices had increased byjust 13% and kerosene by 3% since June 2010, whereasLPG prices remained constant and diesel prices in factdeclined by 6% since June 2010.Revision in Retail Selling Prices ofSensitive Petroleum Products in New DelhiSource: PPACPrice Hike since June 2010Petrol 23%Diesel 3%LPG 14%Latest Price Hike since Previous RevisionPetrol 9%Diesel 9%LPG 14%As a result, oil companies had been incurring hugelosses in order to bear the burden of international crudeprice increase. In 2010-11, the under recoveries of oilcompanies were around Rs 214 per day translating intoRs 78,000 crore for the whole year. Of that, they receivedsupport of around Rs 41,000 crore (nearly 52%) from thegovernment. However, this year, the daily under recoveryis already Rs 460 crore per day. For the year 2011-12,under recoveries are expected to be Rs 170,000 crores.Fifty percent of this would imply an additional subsidysupport of Rs 85,000 crores, which is not feasible in thepresent circumstances. According to some estimates,every incremental US$10 per barrel increase in crude oilprice has the potential to increase the subsidy burdenby around Rs 27,000 crores in FY2011.Union Budget 2011 had assumed the overall subsidybill to fall by 12.5% and had budgeted a fall of 9.1%in fertilizer subsidy and a huge 38.4% fall in petroleumsubsidy. However, this appears unrealistic given thepresent situation. In his Budget speech, the FinanceMinister had already stated that government would avoidissuing bonds in lieu of subsidies to oil and fertilizercompanies. Thus, all subsidy-related liabilities will comeunder fiscal accounting, which would have seriousimplications for the fiscal health of the economy.The government has also granted duty reductions due24 | July 2011 Communiqué

analysisto which it will incur a revenue loss of an estimated Rs49,000 crore. It has entirely eliminated the customs dutyon crude oil, reduced the customs duty on products tothe corresponding extent and drastically reduced theexcise duty on diesel.Latest Retail Price Hike and Revision in DutiesRevisionsImpactCustoms DutyCrude Oil Reduced from 5%to nilRevenue loss ofRs 26,000 crorePetroleum Reduced by 5%productsExcise DutyDiesel (HSD) Reduced from Rs4.60/litre to Rs 2/litreRevenue loss ofRs 23,000 croreRetail PriceDiesel Increased by Rs 3/litre Reduce thePDS Kerosene Increased by Rs 2/litre under-recoveriesof Oil MarketingDomestic LPG Increased by Rs 50/Companies bycylinderRs 21,000 croreSource: MoPNG Press Release, 24 June, 2011Government hopes to cut down its ballooning subsidybill with the recent price hike which is understandablein the present macro-economic conditions. However,diesel accounts for 40 % of petroleum product demandin India and is the most widely used transport fuel,in addition to fueling tractors and irrigation pumpsfor farmers. Thus, with inflation in India above 9 %and diesel price up by nearly 8 % on the year, theinflationary implications of the diesel price hike areunavoidable. Broadly, with inflation currently at around9 %, the hike in prices is likely to take inflation backinto double digits again.There are also concerns that inflation would furtherinduce RBI to raise the repo rate by 25-50 basis points.Given that it has already been raised 10 times sinceMarch 2010, there are fears of a significant risk to growth.However, it is likely that the RBI would have alreadyfactored in an increase in retail fuel prices in its earlierdecisions, so that the current hike is not likely to havean additional impact on monetary policy.Communiqué July 2011 | 27

corporate indiataxationTax Issues in Cross Border Transactions:M&A and Transfer PricingWith most globalMNCs and big Indiancompanies operatingacross continents,many of the M&Adeals require efficients t r u c t u r i n g a n dknowledge of thecomplex regulatoryenvironment prevailingin different countries.The conference on‘Tax Issues in CrossBorder Transactions:M&A and TransferPricing’ on 2 Junein Mumbai examinedthe multiple tax issuesfaced in the domainof M&A and transferpricing. It is an areawhich requires specialattention, especially inthe backdrop of effortsto curb black moneyoutflow.P. P. Srivastava, Chief Commissioner of Income Tax, Mumbai; S. Mahalingam,CFO, Tata Consultancy Services, and R. N. Dash, Director General,International Taxation, Union Ministry of FinanceMr. S. Mahalingam, Chairman, CII National SkillDevelopment Council, and CFO, Tata ConsultancyServices, urged the Income Tax Department to introduceAdvance Pricing Arrangements and Safe HarbourProvisions so that transfer pricing litigations andcontentious adjustments to the tune of over Rs 20,000crores are reduced. He also expressed concern overthe General Anti Avoidance Rules (GAAR) in the DirectTax Code, which could again lead to a lot of litigation,and emphasized that corporate tax payers were lookingfor certainty.It is the responsibility of the transfer pricing departmentto protect India’s tax base and prevent any shiftingof profits outside India, observed Mr. R. N. Dash,Director General, International Taxation, Union Ministryof Finance. He assured that the power of surveygiven to transfer pricingofficers would be usedcautiously by the taxdepartment, and theincome tax departmentwould adopt internationalbest practices. The roleof the administrationshould be transparent,with continuousengagement with taxpayers, to ensure thatstrict action is takenagainst those indulgingin malpractices, heobserved.Mr. Dash said thatin order to curb themenace of black money,the Government is in theprocess of establishingtreaty protocols withsome of the tax havens,and the conditionsare being revived toexchange tax information. Having already establishedtreaties with Singapore and Mauritius, the governmentis in the process of concluding such pacts with eightother countries, he said.Mr. P. P. Srivastava, Chief Commissioner of Income Tax,Mumbai, advised corporate and tax professionals to becareful while preparing financial statements. AdvisingChartered Accountants to ensure that the accountsof companies are not fudged, Mr. Srivastava admittedthat many issues related to international taxes are yetto be settled.Pointing out that as much as 70 per cent of the world’stransfer pricing litigations emanate from India, Mr. KetanDalal, Executive Director, Tax & Regulatory Services,PricewaterhouseCoopers, expressed concern over themagnitude of tax issues in India relating to cross bordertransactions.28 | July 2011 Communiqué

corporate indiam & a1st National M&A SummitCreating A FacilitativeRegulatory EnvironmentThe M&A Summit discussed the impact of thechanging regulatory landscape while learningfrom India’s largest acquisitionsfor maximum value creationM e r g e r s a n dAcquisitions (M&A)are one of the largestcontributors to the Indiangrowth story. CII organized itsfirst ‘National M&A Summit'on 23 June in Mumbaito discuss a facilitativeregulatory landscape thatwould provide furtherimpetus to M&A, and sharebest practices in global M&Atransactions. The day-longSummit discussed theimpact of the changingregulatory landscape whilelearning from India’s largestacquisitions for maximumvalue creation.Talking about the changinggovernmental and businessmodels in the country, Mr DK Mittal, Secretary, UnionMinistry of Corporate Affairs,(MCA), described M&A as anintegral part of the ecosystemfor the functioning of afree economy. Explainingthat in India regulationof M&A is done under afew fundamentals, he saidthat the Government hasbeen careful not to put anyM&A: The Prevailing ScenarioA total of 1,131 M&A deals were announced in Indiabetween April 2010 and March 2011, with a cumulativedisclosed value of US$62 billion. This reflects asignificant increase of 60% over FY10, which recorded1,385 deals with a disclosed value of US$39 billion.Few but large deals are back: FY11 is seeingincreased deal value and large billion-dollar deals(12 as against just 3 in FY10), despite a reducednumber of deals. This can be primarily attributed to asignificant rise in valuations in the Indian market dueto ascending market capitalization. Easy access tofinancing, as well as ample liquidity, have facilitatedan increase in deal sizes.Resurgence of cross-border deals: Nine of the top tendeals announced in FY11 are cross border in nature.India clocked 552 cross-border deals worth US$52.4billion, reflecting a significant 84% share of the totaldeal value in FY11. Inbound deal activity constituteda 68% share, and outbound deal activity constituteda 32% share in terms of deal value.Natural resources rule: Of 12 billion-dollar deals, 7were recorded in the natural resources sector — 5in oil and gas, and 2 in metals and mining, primarilybecause of rapidly increasing commodity prices. Thetwo sectors cumulatively accounted for approximately49% of the total M&A deal value in FY11. Financialservices, retail and consumer products, technologyand industrial products were the most active sectorsin terms of deal count. Together, they accounted forapproximately 44% of all deals in FY11.Source: CII-E&Y paper: Transactions 2011 –Setting the stage for the next era of M&Arestriction on acquisition byIndian corporates outsideIndia. The Securities andExchange Board of India(SEBI) and the CompetitionCommission of India havenorms to regulate thetakeover of Indian companiesby foreign companies, wherecapital is much cheaper.The idea is that regulationshould not be restrictiveor destructive and that theregulatory framework shouldhave a soft landing, whichthe Government has beenable to achieve, he stated.Mr Mittal said his Ministrywas aligned to the needsof the corporate sector andone of its key jobs is to bringharmony among variousregulators and reduce theproblems faced by business.On the issue of reportingstructures by differentregulatory agencies, he saidthe MCA, SEBI and RBI areon the same page in termsof reporting requirements,and if anything is changed, itwill be changed for all three.He gave the assurance that30 | July 2011 Communiqué

m & acorporates will nothave multiplicity ofreporting formats.Mr Mittal said thatcompetition lawsare also applicablet o g o v e r n m e n tinstitutions and PSUs.A committee to draft anational competitionpolicy has been setup and a draft will beup for review soon,he said, adding thatParliament wouldreview the CompaniesBill in the monsoonsession.Addressing the Valedictory Session, Mr. Anurag Goel,Member (Combinations), Competition Commission ofIndia (CCI), said the CCI recognizes and realizes thatmerger, acquisitions and JVs are an extremely importanttool for economic growth that needs enabling andfacilitation. The CCI is proactive in scrutinizing mergerswith a positive outlook where they look to partner withIndian industry. Urging industry to come forward andtell CCI how the two can cooperate, he stressed thatpartnership and trust between the two is vital.Putting Indian business into global perspective, Mr.Adi Godrej, President Designate, CII, and Chairman,Godrej Group, saidthe 20 years sinceliberalization haveseen the competitiveframes of referenceoverturned. Indiancompanies today haveto compete with thebest in the world. In aninterconnected world,businesses have tothink big, act fast andtranscend geographicboundaries by M&A,to stay globallycompetitive, he said.Yet, Mr Godrej advisedcaution consideringthat over 50% of allmergers in the nationhad failed to achievetheir stated objectiveand have lost money.Hence, unless therewas a strategic needfor M&A, there wasno sense in going forthe same, he said.Calling for legitimateregulation of M&Awithout it beingr e s t r i c t i v e o rbureaucratizing theprocess, Mr Godrejvoiced industry’sfears about the impactof merger controlregulations; the statutory time limit for M&A approval,which at over 7 months is one of the longest in the world;alignment of multiple regulations to ensure that companiesare not inconvenienced by varying standards; etc. Pointingout that Indian companies would need high inflow of capitalto build scale rapidly and compete successfully with MNCs,he sought further liberalization of policies in key sectorslike insurance, multi-brand retail and real estate.Adi B Godrej, President Designate, CII, and Chairman, Godrej Group, Ranjan Biswas,National Leader & Partner, Transaction Advisory Services, Ernst & Young, D K Mittal,Secretary, Corporate Affairs; and Zia Mody, Chairperson, CII M&A Forum, andFounder & Sr Partner, AZB & Partners, at the 1st National M&A Summit in MumbaiMs. Zia Mody, Chairperson, CII M&A Forum, andManaging Partner, AZB Partners, applauded theconsultative approach adopted by the MCA and CCIin finalizing combination regulations.Mr. Mittal also released a special Summit themepaper: ‘TransactionsOptimizing• Optimizing asset portfolio• Delivery of synergies and effective2011 – Setting thestage for the nextera of M&A’ jointlyintegrationd e v e l o p e d b yThe Capital Agenda: Building Competitive AdvantagePreservingStress and distress — e.g., liquidityissues and turnaround plans• Customer and supplier analysis• Preserving tax assets and minimizing • Improving working capital andcostsreleasing cash• Refinancing or restructuring debt, • Optimizing capital structureequity and other obligations• Optimizing tax and corporate• D e a l i n g w i t h s t a k e h o l d e r structurerelationships and pressure• Dispute resolutionInvestingRaising• Acquisitions and alliances • Fundraising (equity and debt): IPOreadiness, rights issues, PE, private• Planning and structuring transactionsplacement and capital marketsto optimize stakeholder return• Optimizing funding structures• Focused due diligence to mitigaterisk and drive value• Asset divestment• Asset valuations• Infrastructure projects• Cost– and tax–efficient structures• Cost– and tax–efficient structuresSource: CII-EY Paper Transactions 2011 – Setting the stage for the next era of M&ACII and Ernst &Young.The paperanalyzes the currentM&A environment,i n n o v a t i v e d e a ls t r a t e g i e s , t h eimpact of regulatoryintervention andcapital availability,and avenues ofi n v e s t m e n t a n doptimization, whilemapping the latesttransaction statisticsand trends.Communiqué July 2011 | 31

m & aSector-wise M&A OutlookOil and Gas: Abuzz with game-changing deals: Outbound rush expected tocontinue. On the inbound front as well, India’s spiraling energy needs presentlucrative opportunities for global oil companies.Metals and mining: Globetrotting for resources: Outbound M&A activityexpected to continue with its current momentum. Consolidation in the sectoris expected to continue driving domestic deal activity.Telecommunications: Activity in promising segments: The recentimplementation of mobile number portability is expected to fuel the tariff war.Consolidation could become imperative. DoT’s upcoming release of the NewTelecom Policy is expected to ease M&A norms and bring significant policychanges around spectrum fees, licence renewals and licence conditions.Pharmaceuticals: Action on all fronts: Expected to see increased inbound dealactivity. Overseas companies could complement their Indian counterparts byproviding R&D capability and financial muscle, while Indian companies lookingto divest their non-core divisions could capitalize on the robust valuations thatthese pharmaceutical majors offer. Domestically, M&A is expected to be drivenby consolidation as companies become increasingly interested in acquiringmanufacturing assets to tap economies of scale or enter niche areas forspecific capabilities.Financial services: Banking on consolidation: RBI’s discussion papers onissuing licences to corporate houses looking to set up banks, and on thepresence of foreign banks in India, favour the wholly-owned subsidiary routeof operating in India, over the present route of operating through branches.Some substantial action is expected to be taken on these discussion papersresulting in increased competition. Banks are expected to look aggressivelyat branch-network expansion and boost their pan-India presence by buyingout smaller banks.Technology: First mega deal in the sector: IT companies are expected toacquire companies with specific capabilities in different streams. Mid-sizedIndian IT companies, which are finding it difficult to grow, could well be thepotential targets for foreign as well as domestic players. Further, global ITmajors with limited presence in India could explore acquisitions in the Indianmarket for less expensive alternatives. On the outbound side, the rising debateover outsourcing in the US could compel Indian IT players to seek strategicacquisitions across Europe and the Asia-Pacific region and, thus, reduce theirdependence on the US.Retail and consumer products: Continued deal-making: Expansion of India’sburgeoning middle class with its high consumption capacity has attracted manymultinational companies to India. This trend is expected to continue. One couldsee intensified action on the outbound deal activity front as well.Diversified Industrial Products (DIP): Rebound in cross border deals: Inboundactivity is expected to maintain its current momentum. On the outbound front,companies are likely to try and strengthen their presence in developed marketsand acquire companies with advanced equipment or manufacturing bases.Domestically, power companies may take the vertical integration route acquiringbusinesses in the cables and wires or transformers segments.Source: CII-EY Paper: Transactions 2011 – Setting the stage for the next era of M&A32 | July 2011 Communiqué

corporate governanceperspectiveWhistleblower Helplines: A Toolfor Good Corporate GovernanceWhistleblower Helplines not only act as an effectiveinternal early warning system for organizations to detectand check malpractices, but also help create anon-threatening environment for persons to reportactivity detrimental to the organisation’s interestsThere can be no denying the fact that the mostcommon method of detecting occupational fraud orunethical behaviour within an organization is feedback ora tip-off from an employee, customer, vendor, associateor anonymous source, as they are usually the first onesto perceive it. The other is by default or accident-whichis often too late, resulting in loss of reputation, credibilityand confidence in the organization.Corruption, unethical behaviour and fraud do not occurin vacuum. There are people who know what is goingon but choose to remain silent. If such people breaktheir silence and report fraud by relaying the informationto the key personnel within the organization, then theexposure of the organization to potential financial loss,criminal proceedings, litigations and adverse publicitycan all be checked.No matter how much the HR Department might wantto believe to the contrary, perhaps the single biggestdeterrent for people who wish to expose wrong-doingwithin their organization is the fear of recrimination postrevelation of their identity. This is precisely the reasonwhy a secure and confidential whistleblowing system isessential to enable stakeholders to easily communicatetheir concerns with their top management.Whistleblower Helplines not only act as an effectiveinternal early warning system for organizations to detectand check malpractices but also help them create anon-threatening environment in which anyone whoperceives any activity detrimental to its interests feelsfree to report it. By opening an additional channelof communication, they complement the internal andexternal audit system and strengthen the existing systemof checks and balances within the organization. Moreimportantly these helplines augment the organization’sinternal risk radar and help it capture and mitigate risks.Besides, by demonstrating a willingness to listen, theorganization not only nurtures a business culture ofhonesty, integrity and compliance which is recognizedas a key driver of brand, reputation and performance,but also conveys the message that it takes fraud andmisconduct seriously.While many organizations have framed whistleblowerpolicies, most of them require the whistleblower to firstdisclose his identity and then assure him of protection.It is debatable as to whether such a condition actuallyencourages or, to the contrary, ends up deterringwhistleblowers. Organizations fail to realize that given thevarious modes of communication and different forumsavailable today, one cannot possibly prevent or prohibitanyone from reaching out and expressing concernsexternally or anonymously.Thus it is in their interest ifwhistleblowers express their concerns internally throughan institutionalized mechanism so that they can checkthe situation before it spirals and affects their reputationand bottomline. Instead of shying away from receivinginformation, organizations ought to strengthen theirinformation receipt and processing systems.The possibility of receiving a ‘flood of information’ oughtnot to deter an organization from being receptive. Thisconcern must give way to confidence in the ability to siftthrough the information and identify what is meaningful.A friendly whistleblower policy aided by a secure andconfidential helpline and a sensitive processing mechanismare vital for effective proactive vigilance and also a visiblemanifestation of the organization’s commitment towardstransparency and good governance.This article was contributed by Amit K Paul, Founder of theCorporate Whistleblower Initiative-India’s first web-based helplinefor receipt of confidential information from stakeholders,www.cwiportal.com. The views expressed are the author’s. He can bereached at amit@akppartners.comCommuniqué July 2011 | 33

msmesmanufacturingA 12 member MSMEdelegation, led by MrUday Kumar Varma,Secretary, Micro,Small and MediumEnterprises (MSMEs),and Mr RameshDatla, Chairman,CII National MSMECouncil, visited theUnited States during20 - 24 June. Themission was a giantleap in sectorallyconnecting IndianMSMEs with theircounterparts in USA,to explore commercial opportunities between them. Theprogramme was jointly coordinated and supported bythe Embassy of India in USA, CII, and the Ministry ofMSME. The delegates, from across the country, hadinterests in Information Technology, Defence, HomelandSecurity and Clean Technology.In Washington DC, the delegation met with Mr. FranciscoSanchez, Under Secretary, US Department of Commerce,and Ms Karen G Mills, Administrator, US Small BusinessAdministration, and apprised them about the need tocreate an institutional mechanism between US and Indiafor small businesses. Such a mechanism, they said,would engage CEOs from midsize companies in eachcountry to work towards facilitating a policy-enablinge n v i r o n m e n t f o rSMEs, highlight theconcerns of MSMEsin USA and India,leverage technologyand sourcing, findopportunities forbilateral commercialengagement, and,as well, strengtheng l o b a l s u p p l ychain managementsystems.CII MSME Mission ExploresOpportunities with USAEarlier, during ameeting with theCII delegation, MsM e e r a S h a n k a r ,Indian Ambassadorto the United States,urged MSMEs tocreate projects inthe US markets toeffectively leveragethe vast financialresources availablethere. With the USeconomy lookingpromising after the2008 economic crisis,the time is ripe forIndian MSMEs looking to acquire (or otherwise buildrelationships with) foreign firms in order to leveragetheir market network and business relationships, shefelt. Another reason for acquisition might be for gettingaccess to IPR and technology (including factory floorprocesses and quality control). Strategic acquisition of theforeign firm’s human resources and skills, or embeddedprivileged access to procurement (government or withspecific private firms) and natural resources could beother objectives for acquisition, she added.Members of the CII SME delegation with Francisco Sanchez, Under Secretary, USDepartment of Commerce, (seated, left) and Uday Kumar Varma, Secretary, MSME,India (seated, right)Indian mid-sized firms are yet to significantly engagewith their counterparts in more advanced countries,given their lack of risk taking ability, information, and thecapacity for managing global engagement in a sustainedmanner, said Mr UdayKumar Varma. TheIndian governmentis giving seriousthought to facilitatingthe acquiring offirms abroad, andIndian medium sizedindustries would gainthe most from suchfacilitation, he added.Members of the CII MSME delegation with Meera Shankar, Ambassador of India tothe United States, and Uday Kumar Varma, in Washington DCMr Varma said ac o m p r e h e n s i v eCommuniqué July 2011 | 35

msmesprogramme to identify and help acquire US SMEs byIndian mid-sized firms would be a win-win for both parties,and will be possible once an institutional mechanismis set up between MSMEs in the two countries. India’snational manufacturing policy envisages the setting up ofa special fund to help Indian firms acquire firms abroadwith specifically these objectives, he added.Mr Ramesh Datla, Chairman, CII National MSME Council,noted that US MSMEs have long expertise in theirdomestic market, and Indian MSMEs are already lookingto invest/acquire them as they develop supply chainslinking India and the US. Such JVs and acquisitionsare helping Indian firms to build on their US partners/acquisitions business networks and get a better idea ofproduct development for the US market, he observed.The contribution of MSMEs in trade engagement as wellas cross border M&A is increasing. Involving companiesfrom both sides will help in achieving bilateral tradetargets. CII is strongly in favour of constituting anMSMEs CEO Forum to address the specific needs andinterests of small and mid sized companies, said MrGurpal Singh, Deputy Director General, CII.The CII delegation, during their visit to WashingtonDC, also met with Mr Aaron Brickman, Director, InvestAmerica, Ms Holly Vineyard, Deputy Assistant Secretary,US Department of Commerce, Mr. Joe Bhatia, President& CEO, ANSI, Mr. Mark Pearl, President & CEO,Homeland Security and Defense Business Council.They also visited the US Green Building Council andthe International Finance Corporation.MSME Conclave: Challenges & SustainabilityFinance, Marketing,Exports, Technology, Quality,and Skill up-gradation, arethe major challenges facingthe MSME sector, which isconsidered the backboneof industrialization in India.To brainstorm and discussthese challenges, the CIIHimachal Pradesh StateCouncil organized the MSME Conclave with the theme‘Challenges and Sustainability’ on 17 June in Baddi,Himachal Pradesh. The Conclave was organized jointlywith the BBN Industries Association.Mr Virbhadra Singh, Union Minister for MSMEs, and MrKishan Kapoor, Minister for Industries, Himachal Pradesh,participated in the Conclave, which was attended bymore than 150 MSME representatives from throughoutthe state.Mr Singh accepted the long-pending demand for settingup a Tool Room for skill development, and sanctioneda Tool Room to be established with 90% funding by theMSME Ministry to a maximum limit of Rs. 9.0 crore, withthe remaining 10% to be borne by industry through aSpecial Purpose Vehicle. Land for this was committedby the State Government.Mr Singh also spoke about the implementation of theCredit Linked Capital Subsidy scheme for assistingMSMEs for technology upgradation. The schemeprovides 15% capital subsidy on institutional loans up toRs one crore. To facilitate credit for MSMEs, he said thatRajiv Malhotra, Chairman, CII HP State Council; Virbhadra Singh, Union Minister for MSME; andKishan Kapoor, Minister for Industries, Himachal Pradesh, at the MSME Conclave in Baddithe government is implementing the Credit GuaranteeScheme which covers up to 85% on collateral-free creditfacility for loans up to Rs 100 lakh to ensure better flowof credit, by minimizing the risk perception of financialinstitutions in lending without collateral security.The Conclave was also addressed by Ms Harinder Hira,Additional Chief Secretary, Industries, Himachal Pradesh,and Dr Shyam Aggarwal, Development Commissioner,Union Ministry of MSME. Mr Raman Saluja, Chairman,Regional Committee on MSME, CII (NR), Mr RajivMalhotra, Chairman, CII Himachal Pradesh StateCouncil, and Mr Arun Rawat, President, BBN IndustriesAssociation, and Convenor – MSME Panel, CII HimachalPradesh, also spoke.There were thorough discussions on financing and creditratings with representatives of the country’s leadingfinancial institutions and rating agencies. The Conclavealso featured presentations by representatives of theNational Institute of Design, highlighting the importanceof design, and describing the Design Clinic Scheme forMSMEs, initiated by the Union Ministry of MSME.36 | July 2011 Communiqué

msmesConnecting Women EntrepreneursThe integration of womeninto Global Value Chains (GVCs)is integral to the growth ofMSMEs, and is in line withthe practice of Diversity andInclusivity being implemented bybusinesses across the globe, saidDr Shyam Agarwal, AdditionalSecretary and DevelopmentCommissioner, Union Ministryof Micro, Small and MediumEnterprises (MSMEs). However,there should be no compromise on quality and merit, andthese would always stand above gender in any businessor an economic decision, he declared, at the Conferenceon Connecting Women Entrepreneurs, organised byCII in New Delhi on 8 June.Dr Agarwal said his department was fully committedtowards facilitating the growth and development of womenownedenterprises, and explained how the implementationof various schemes (for capacity-building, strengthening ofdatabase and advocacy by industry/enterprise associations,etc) was actually aiding this process.Mr Rakesh Rewari, Deputy Managing Director, SmallIndustries DevelopmentBank of India (SIDBI),said that small businessesare a good source ofinnovation, creativity,competitive pricing andquick and agile businesspractices. Buying fromwomen-owned businessesunlocks not only women’spotential, but also thepotential of corporations and governments, he said.Ms Elizabeth Vazquez, President & CEO, WEConnectInternational, observed that Supplier Diversity is beingimplemented by corporations because the age-oldsystems, where the ‘large’ buy from the ‘large,’ haveleft almost no place for smaller vendors to compete.Many large corporations now have a supplier diversityprogramme to be more competitive, with more dynamicand innovative supply options, thereby reducing costsand demonstrating return on investment. Corporateswhich are serious about encouraging Women OwnedEnterprises (WOEs) into their Global Value Chains,commit a certain percentage of their annual procurementElizabeth Vazquez, President & CEO, WEConnect International; Rakesh Rewari, Dy. MD, SIDBI;Dr. Shyam Agarwal, Addl. Secretary & Development Commissioner, MSME; Ramesh Datla, Chairman,CII National MSME Council, and Gurpal Singh, Deputy Director General, CIIRitu Raina, General Manager, Bharti Walmart; Saagarika Ghoshal, CPO,Reliance Entertainment; Jayashree Satagopan, Vice President –Interventional & Surgery, GE Healthcare, and Anupama Arya,National Co-Chair, CII Young Indiansto their Supplier Diversity and Inclusivity programme. Thediversity spend is tracked by the corporates, and evenmentioned in their annual reports, she added.Earlier Mr Ramesh Datla, Chairman, CII National MSMECouncil, said that in consonance with CII’s theme of‘Business for Livelihood,’ its agenda for MSMEs this yearwould focus on Suppliers Diversity and Inclusiveness,which was in line with the CII sub-theme of AffirmativeAction for the year. He said the participation of womenin supply chains introduces new competition to existingsuppliers. Including women-owned businesses in thisarena brings particular value, as women make the majorityof consumer decisionsand understand marketrequirements, he said.Mr Gurpal Singh, DeputyDirector General, CII,explained that that theobjective of the conferencewas to inspire corporationsand governments to adoptinclusive procurementpractices, in light of the Draft Procurement Policy ofthe Ministry of MSME. With the economic slowdowncausing a rethink in global sourcing, the time is ripe toembrace supplier diversity, in particular sourcing fromwomen as vendors, he added. This conference wasalso a forum bringing together corporate, governmentand opinion leaders committed to empowering womenthrough trade, he said.The deliberations during the conference focussed ontopics such as: The Business Case for Supplier Diversityand Inclusion in India, Draft Procurement Policy forMSMEs - Creating Business Opportunities for WomenEntrepreneurs, and Empowering and Integrating Womenas Vendors in Global Value Chains.Communiqué July 2011 | 37

sectoral synergiesagriculture & food processing industriesFood Processing Industries: Issues & ConcernsCEOs of the Indian FoodP r o c e s s i n g I n d u s t r yparticipated in an interactivesession with Mr. AshokSinha, Secretary, FoodProcessing Industries, on22 June in New Delhi.The key issues discussedrelated to• Efficient supply chainmanagement• D e v e l o p m e n t a n dAshok Sinha, Secretary, Food Processing Industries, withPiruz Khambatta, Chairman, CII National Committee onFood Processing IndustriesSession on Food Regulatory Issuess t r e n g t h e n i n g o ffood park models• Encouraging backwardlinkages• Priority Sector Lending• Capacity-building and skilldevelopment• Development of efficientR&D centres• Tax relaxation for the FoodProcessing sector.CII’s NationalTask Forceo n F o o dR e g u l a t o r yA f f a i r sorganized anI n t e r a c t i v e V N Gaur, CEO, FSSAI, and Vivek Bharati,Chairman, CII National Task Force on FoodSession withRegulatory Affairs, and Executive Director,Mr V N Gaur,Pepsico Holdings India Pvt LtdCEO, FoodSafety & Standards Authority of India (FSSAI) on 22June in New Delhi.The deliberations highlighted the need to institutionalizea consultative mechanism for Industry’s periodicengagement with the FSSAI, considering their scientificknowledge and expertise, especially after the SupremeCourt’s directive on excluding industry experts fromscientific panels.CII urged the FSSAI to adopt a defined proceduralframework for bringing in new regulations and standards;and provide a feedback window on the basis ofacceptance/rejection of Industry recommendations toensure transparency in the regulation making process.Other key issues put forth to Mr Gaur included:• Developing a comprehensive manual for samplingand protocol of analytical methods• Reviewing Schedule 4 relating to GMP/GHPunder FSS Regulations to make it practical andimplementable• Reviewing the requirement of analyzing all chemicaland microbiological contaminants on a monthlybasis• Multiplicity existing within various ministries, especiallyon issues related to amendments leading to labelingchanges• Urgent need to initiate work on pending CCFSapprovals.CII NationalCommittee on SugarFor the first time, CII hasconstituted a National Committeeon Sugar, chaired by Mr Ajay SShriram, Chairman & Sr. MD,DCM Shriram ConsolidatedLtd.The basic objective of the committee is to streamlineall policies related to the sugar industry for the bestadvantage of farmers, industry and consumers,and to ensure a buoyant growth to the sector. Thecommittee, comprising around 30 CEOs from thesugar industry, met for the first time on 29 June inNew Delhi to discuss key issues in the sugar industryand chalk out an action plan for the year.Some of the key issues discussed were raw materialprices and availability, sales volume and sellingprices of sugar, stocking of sugar, levy obligations,packaging material, export - import of sugar, ad hoccontrol, cash flow planning, and so on.38 | July 2011 Communiqué

agriculture & food processing industriesStrategies for Indian Dairy SectorMilk production witnessed a significant growth of4.5% per annum after Operation Flood, making Indiathe largest producer of milk in the world. As per theEconomic Survey 2011 of the Government of India,the production of milk in India for 2009-10 (provisionalestimate) is 112.5 million tonnes. Dairy as an economicactivity now fits in most appropriately into the country’sstrategy for increasingfood production, rurale m p l o y m e n t a n dequitable distributionof income. The dairysector contributesaround 7% of GDP, and19 million people aredirectly and indirectlyinvolved in dairyingfor employment andlivelihood.T h e s e c t o r i scharacterized by very small dairy producers owningone to three milch animals and is largely a rural basedactivity. Dairying is based on family labour, crop residuesand natural grasses and is mostly a supplementarysource of income to producers. Around 750 lakh ruralfamilies are engaged in dairying activities.To deliberate on issues related to the Indian DairySector, the CII National Committee on Dairy, chaired byMr M K Jalan, Chairman,K e v e n t e r G r o u p ,organized an interactives e s s i o n w i t h M r BPrashant Kumar, Director,Animal Husbandry& Dairy Development, Government of India, on24 June in New Delhi.Mr Kumar gave a brief ofthe various governmentschemes available inthe Dairy sector. It wasagreed that there is acritical need to createpublicity across thecountry, around thevarious schemes.Some of the otherissues deliberatedw e r e i n c r e a s i n gproduction and productivity; need for investment in dairyinfrastructure; breed improvement through availabilityof quality feed; animal safety, milk safety standards,trade, etc.M K Jalan, Chairman, CII National Committee on Dairy, and Chairman,Keventer Group; Krishan Goyal, Co-Chair and Promoter, Modern Dairies; andB Prashant Kumar, Director, Dept of Animal Husbandry & Dairy, Govt of IndiaThe session, which was attended by around 30 CEOsin the Dairy Sector from across the country, provideda platform for the industry and government officials todiscuss much-needed reforms for the sector.Cold Chain Development for Apples in J&KCII has presented a ‘Feasibility Report for ColdChain Development for Apples in J&K’ toMr Omar Abdullah, Chief Ministerof Jammu & Kashmir. A CIIteam, led by Mr B Thiagarajan,Chairman, CII National Task Forceon Cold Chain Development, andPresident, Blue Star Ltd, presentedthe report to Mr Abdullah in Srinagaron 17 June.The report has been prepared with theobjective to create a modern system forprocurement, processing and storage,supported by refrigerated logistics, tocreate a cold chain infrastructure in the State ofJammu & Kashmir. The infrastructure so developedwill have a multiplier effect on inviting privateinvestment in cold chain projects in the applebelt of the state. Three projects have beenproposed, one each in Anantnag and Sopian,in the heart of the apple orchards, and amarket hub at Jammu.CII also suggested to the Chief Ministerto create a small Core Group comprising3 members from the State Government,and 3 members from the CII NationalTask Force on Cold Chain Development, to takethe project forward.Communiqué July 2011 | 39

media and entertainmentsectoral synergiesSAMVAAD CBFC 2011Cinema andCertificationPrithviraj Chavan, Chief Minister of Maharashtra (centre) with Pankaja Thakur, CEO, CBFC; Rakeysh Omprakash Mehra; Mukesh Bhatt;Yash Chopra, Film Makers; Amit Khanna, Chairman, CII National Committee on Media & Entertainment and Chairman, Reliance Entertainment;Ramesh Sippy; Shyam Benegal, Film Makers; Leela Samson, Chairperson, Central Board of Film Certification; Shabana Azmi;Kashi Shantaram, Rituparno Ghosh, Film Personalities, and Rajiv Takru, Additional Secretary, Ministry of I&BThe Central Board of Film Certification (CBFC)and CII jointly organised Samvaad CBFC, an interactivesession on Cinema and Certification, on 14 June inMumbai. The conference brought together doyens ofthe Indian film industry, including Yash Chopra, RameshSippy, Shyam Benegal, Mahesh Bhatt, Mukesh Bhatt,Shabana Azmi, Prahlad Kakkar, Anurag Kashyap,Rituparno Ghosh, Rakeysh Om Prakash Mehra, SudhirMishra, Mita Vashishth, and Akbar Khan, amongst others,along with representatives of civil society.The CBFC online system of application was inauguratedby Mr Prithviraj Chavan, Chief Minister of Maharashtra,who was the chief guest. The system enables producersto apply online for the Film Classification Certificate.Mr Chavan asserted that the Maharashtra Governmentwould work with the film fraternity. Welcoming the CBFCinitiative to sensitize and familiarize its regional officerstowards appreciation of world cinema, he suggestedthat Samvaad could be institutionalised into an annualevent.Ms Leela Samson, the new CBFC Chairperson, promisedto bring in more transparency in the Board’s operations tousher in a change from film certification to classification,which would enable film makers to reach out to atarget audience group. Applying for classification of afilm would soon be possible online in various regionalcentres of the country, she said. Ms Samson said thatCBFC is also looking at introducing a new fee structurefor documentary films and guidelines which are differentfrom feature films. She also called for interactive andcandid discussions on the finer sensibilities of ourmulticultural society, without curbing artistic expressionsand creative freedom.Mr Rajiv Takru, Additional Secretary, Union Ministry ofInformation & Broadcasting, said that the Ministry wouldconsider the CBFC chairperson's view of changing theCentral Board of Film Certification to the Indian Boardof Film Classification. The changes envisaged in theCinematograph Bill aims that films be certified accordingto content so that they are viewed by different age groupsor under parental guidance for those age groups, ratherthan the censor, cutting and deleting scenes.The interactive session deliberated on the much-neededchanges to be adopted in the Cinematograph Bill 2010,to be tabled in the monsoon session of Parliament.A majority of the film makers favoured self regulationCommuniqué July 2011 | 43

media and entertainmentrather than censorship offilms by CBFC. They alsomade it clear that once thefilm is certified and clearedby CBFC, the film shouldnot succumb to externalforces while being releasedin theatres.Mr Amit Khanna, Chairman,CII National Committee onMedia and Entertainment,pointed out that the CensorBoard has to be proactive,calling for a complete rehaul of the decision-makingprocess at CBFC.Industry veteran Yash Chopra wanted societal changesto get reflected in CBFC’s film certification process.The key issues in focus included:• CBFC move from certification to classification:Classification is about identifying, recognizing andcatering to the needs of different audiences that will helpEminent film-makers Yash Chopra; Rakeysh Omprakash Mehra; Ramesh Sippy, andShyam Benegal, at Samvaadthe film industry reach out to its target consumers• Corrective measures to check the growing trendof violent and sexually explicit content in regionalcinemaSuch changes and steps by CBFC will educate audiencesabout the medium and enable them to accept the artbetter, besides making them better aware of globalcinema, it was felt.44 | July 2011 Communiqué

competitivenesstowards excellenceCII-Avantha Centre forCompetitiveness for SMEsCII President visits CentreB Muthuraman, President, CII, and Vice Chairman,Tata Steel Ltd, & Chairman, Tata International Ltd; andChandrajit Banerjee, Director General, CII, on a visit to theCentre in ChandigarhMr B Muthuraman, President, CII, and Vice Chairman,Tata Steel Ltd, and Chairman, Tata International Ltd,visited the CII-AVANTHA Centre for Competitiveness forSMEs, in Chandigarh on 28 May. Mr Chandrajit Banerjee,Director General, CII, accompanied the President.Describing his visit, Mr Muthuraman said, “I am happythat I came here. The kind of work the Centre is doingfor SMEs is very good.”HR Mission to GurgaonThe Centre organized a one day HR Mission for SMEson 31 May to observe the best HR practices beingfollowed in Maruti Suzuki India Ltd, (JD Power AwardWinner) and Jay Bharat Maruti Ltd (Best SupplierAward Winner). The senior management of both thecompanies showcased their innovative and successfulHR practices through presentations and interactivesessions to the team of 20 mission members fromcompanies across the country. The mission-membersalso visited the plants.Energy AuditA four day energy audit was carried out from 13-16June at the Exedy India Ltd plant in Greater Noida.The audit team found that various heaters and motorsremain in operation throughout, although the processruns for 50% of the time. Improvement for control onmotors and heaters, requiring very low investmentwas suggested. Also, the plant team was facing theproblem of a very hot environment near the furnace.The root cause of the high temperature was identifiedand corrective actions were suggested. Successfultrials were undertaken for direct reduction of energyconsumption through voltage optimization of facility,electrical distribution system, etc.The recommendations for energy saving, which arealready being initiated by the company, could lead tofinancial saving of more than Rs 50 lakhs.HR Mission Members in GurgaonCommuniqué July 2011 | 45

towards excellencequalityDeveloping GlobalFood Sector SuppliersFood Safety Model 2011 RevisionsWith the in-built competitive edge of wideavailability of raw material, land, skills, manpower andentrepreneurship, the opportunity for the Indian foodsector to become the food factory of the world hasgreatly widened, bringing with it the need for the speedyimplementation of a comprehensive Food Safety Model,befitting global suppliers.A select team from the CII Institute of Quality (CII-IQ),under the guidance of Mr Uttam Chatterjee, Chairman,CII Expert Group of Food Safety and Quality (FSQ), hasbeen brainstorming on the elements required to evolvethe revised CII Food Safety Award Model 2011.Food Industry RequirementsA revised model is needed to address the speedyimplementation of the following three aspects:1. Customised criteria for each of the identifiedcategories• Food processing companies, restaurants and theirkitchens, hotels, catering, institutional canteens,food courts, meat shops, sweet shops, food retail,confectioneries, vending and dispensing, streetvendors2. Assessment of Capability as Global Suppliers• For each criterion, globally endorsed key FoodSafety practices and sector-specific GoodManufacturing Practices, relevant and impendingstatutory and regulatory requirements of India’sFood Safety and Standards Act (Rules andRegulations) together with excellence criteria, andsocial compliance, need to be incorporated aseasy to understand check points which could beutilised for self -assessment as well as externalrecognition through a national award3. Promotion of the Model• Continue to enhance promotion of this Modelthrough a self assessment kit and the CII Awardprocess• Assessment criteria will be customised based onthe nature of the business and segmented bysize, thus providing the opportunity of 12 Awards(for Small, Medium and Large), and various levelsof certificates of recognition as decided by thejury.CII Food Safety Model 2010 to 2011: The TransitionCII Food Safety Model 2011Having a defined scope of Food Safety and keepingthe industry and global requirements in mind, theCII Food Safety Model 2010 has been revised to CIIFood Safety Model 2011. While the 2010 checklistswere broad in scope and were based on the GFSIGuidance Document food safety practices only, the2011 model addresses comprehensive requirements tocreate global Indian suppliers. Besides including keysocial compliance and improvement initiatives, the 2011checklists for assessment are far more exhaustive, andhave been developed based on GFSI approved FoodSafety Standards.Self-Assessment Kits: Checklists for Internal Useand External RecognitionComprehensive checklists comprising pre requisiteprogrammes, HACCP, food safety management systemstructure, improvement initiatives, statutory and regulatoryrequirements, social compliance for all criteria (1, 2A/2B,46 | July 2011 Communiqué

quality3 for large and SMBorganisations) have beendeveloped. Trainingon these hasbeen launched.These checklists,being exhaustiveSelf Assessment Kitson Food Safety, alsoprovide an opportunityto companies to seeknational recognition through theCII National Award for FoodSafety.Building Capability of FoodSafety AssessorsCII is developing a pool ofFood Safety Assessors amongindustry experts, with exposure toimplementing global food safetyand quality standards. These wouldserve as in- house resources forthe industry, through a tried andtested model of participating inexternal assessments in applicantunits of the CII National Award forFood Safety.CII-IQ conductedthe first ‘CII FoodSafety AssessorT r a i n i n gWorkshop’ inNew Delhi on19-20 May, tolaunch and promote the initiative across the country and develop awider pool of assessors. Forty four Assessors from industries like AdityaBirla Retail, Amrit Foods, Bhavan’s Research, Britannia, Haldiram’s,Eastern Condiments, Kellogs, Kraft, McDonalds, Marico, MetroCash and Carry, NSFSafety & Certification,PCI, Perfetti, PernordRicard, Tasty Dairy,and Tata GlobalBeverages attendedthe workshop.The workshop wasrepeated in Bangaloreand Mumbai on 26-27May and 9-10 Junerespectively.“CII has taken this mammoth taskof rolling out Food Safety Awardsat a national level. It is not merelyan exercise of recognizing the bestin class, but the hard work thatgoes behind this great initiative ofidentifying and training the auditorsfrom the industry on a single platformand motivating them to participate inthe project. Also greatly appreciableis the maturity the award processitself has undergone within one yearof its launch.”Seema Atreya, VP, Haldiram’s(Senior Assessor, CII National Awardfor Food Safety 2010)Assessor training programme in progress in New DelhiAward SchedulesThe site visits for the CII NationalAward on Food Safety have beenscheduled for July and August2011. The Award announcementhas been planned duringNovember 2011.For further details, please contactanju.bist@cii.in or refer to CII-IQwebsite www.cii-iq.inCommuniqué July 2011 | 47

towards excellencesustainable developmentThe sustainable way of doingbusiness is fast becoming businessas-usual.Sustainability challengesare the biggest opportunities onoffer, and companies need to reflectthis in their business strategies.These challenges, however,demand a radical shift in corporateroles and responsibilities.A group of 15 senior executives representing diversesectors attended the 4th edition of the ‘Business LeadersProgramme’ organised by the CII-ITC Centre of Excellencefor Sustainable Development in association with theJohnson School Centre for Sustainable Enterprise at CornellUniversity, USA, from 21-24 June in Noida. The programmeemphasized the alignment of sustainable business withbusiness strategy and helped the participants define prioritiesto build both sustainability and business value.This prestigious senior executive education programme wasled by internationally renowned Prof. Stuart L. Hart, SamuelC Johnson Chair in Sustainable Global Enterprise, andProfessor of Management, Cornell University. One of theworld's top authorities on the implications of environmentand poverty for business strategy, Prof Hart, with the lateDr. C.K. Prahalad, also wrote the path-breaking article, ‘TheFortune at the Bottom of the Pyramid’ on how businesscould profitably serve the needs of the poor.The participants worked with Prof. Hart to identify the keysustainability strategies required for long-term businesssuccess. The group learned about the latest sustainabilitytools including product stewardship, stakeholderengagement, green leap, and embedded innovation,blending rigorous strategic logic with the ‘view from thesustainability lens.’ They were challenged to look beyondlow-hanging fruits - environment-friendly processes,community relations, and supply chain management –to identify new markets inclean technology and thebottom-of-pyramid, to developa sustainable value portfoliofor their businesses.The programme started witha moderated discussion onhow business can help createstakeholder (societal) value.The group discussed theevolution of the sustainableBusiness Leaders ProgrammeProf. Stuart L. Hart,Cornell UniversityUSAS. Sivakumar,Chief Executive - AgriBusinesses Division,ITC LtdParticipants at the Business Leaders Programmeenterprises of the 21st century, andProf Hart explained the concept of‘Triple Bottom Line.’The corporates were encouragedto develop a vision not only forwhat the company is trying toaddress and how they relate it tosustainability, but also for wherethe most appropriate markets canbe found. The un-met needs of those at the base ofthe economic pyramid may present the best opportunityfor firms to define a compelling trajectory for futuregrowth.‘The Great Convergence’ concept, explained Prof Hart,recognises that successful BoP strategies must beenvironmentally sustainable.During the ‘learning team’ sessions, participants mappedthe sustainability portfolios of their own businesses, identifiedthe gaps, and designed strategic initiatives, which werepresented on the final day. With the help of facilitators, theteams tried to connect the dots and view the sustainabilityframework through the business lens. They provided valueportfolios of various sectors, and also analysed a case studyof Tata Nano on the Sustainable Value Framework.The sharing of experiences brought out the conceptuallinkages between renewed vision, existing capabilities,and strategic initiatives. Each participant had a clearlydefined area of expertise, which made it easier todefine the ‘business case’ for sustainability, and theirSustainable Value Portfolio.The Business Leaders Programme equipped the groupwith practical knowledge along with modern-day tools andframeworks to turn strategic ideas into actions for creatingsustainable business. In order to examine the best practicesof some of the world’s most sustainable companies,a session with guest facultywas organized, wherein Mr.S Sivakumar, Chief Executive,Agri Businesses Division,ITC Ltd and Vice Chairman,ITC Infotech Ltd, describedthe company’s globallyacknowledged e-Choupalinitiative. This unique businessmodel synergies long termshareholder value creation withenhancing societal capital.48 | July 2011 Communiqué

green businesstowards excellenceCII Sohrabji Godrej Green Business CentreGreen Power 2011The 10th edition of Green Power, held on 7 - 8 Junein Bangalore, focused on the Renewable Energypolicy in India. The aim was to attract more corporateinvestments in the RE sector, and explore financingmechanisms and latest technologies on green powergeneration.Material Cost ManagementA seminar on Material Cost Management was organisedby the CII-Total Cost Management (TCM) Division on 14June in Chennai. The seminar discussed the economicsof material management, concept of design impacting thematerial cost, and methodology of operations impactingthe consumption pattern of materials.PaperTechThe Centre,jointly with theIndian PaperManufacturersAssociation,organised the5th edition ofK S Kasi Viswanathan, Chairman, PaperTechPaperTech 20112011, and Dy MD, Seshasayee Paper &on 24-25 June Boards Ltd; Madhukar Mishra, President,Indian Paper Manufacturers Association, andin Hyderabad.MD, Star Paper Mills Ltd, and T S Appa Rao,The inaugural Principal Secretary, and CIP, Industries &Commerce, Andhra Pradeshsession wasmarked by the release of a Best Practices Manual, ‘Pulp& Paper industry –Volume 4,’ a compilation of over 35best practices implemented by the sector.South Korean Ambassador visits CentreMr. Kim Joong – Keun, Ambassador of the Republicof Korea, visitedthe Centre on22 June. Hewas escortedon a GreenBuilding tourand was briefedon the energyefficient, ecofriendlyands u s t a i n a b l eKim Joong – Keun, Ambassador of thefeatures of theRepublic of Korea, at the CII-Sohrabji GodrejCentre.Green Business Centre, HyderabadIGBC Chapter in CoimbatoreCII-IGBC launched its 12th Chapter in Coimbatoreon 24 June. The CII- IGBC chapters facilitate fasterand wide spread of green building concepts tothe key stakeholders and provide a platform fornetworking and cooperation at the regional level.The chapters also interact with the government andurban development agencies to facilitate adoptionof green buildings.IGBC local chapters in Ahmedabad, Bangalore,Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune,Kochi, Goa and Vadodorara spread the IGBC visionat the regional level.CII-Israel Joint DeclarationA joint declarationbetween CII andthe Ministry ofIndustry, Tradeand Labour, Israel,on cooperation inWater Managementand Technologiesw a s i n k e d o n2 8 J u n e i nHyderabad.M r M a h e e d h a rReddy M, Ministerf o r M u n i c i p a lA d m i n i s t r a t i o n& U r b a nD e v e l o p m e n t ,Andhra Pradesh,was present on the occasion.S Raghupathy, Executive Director, CIIGodrej GBC, and Oded Distel, Director,Israel NewTech, inking the JointDeclaration, as Maheedhar Reddy M,Minister for Municipal Administration &Urban Development, Andhra Pradesh;Mouneer Agbariya, Counselor – EconomicAffairs, Embassy of Israel;Yithak Kiriati, Director, Agrotechnology,Water & Environment, The Israel Export &International Cooperation Institute, andM K Patodia, MD, GTN Industries, look onMr S Raghupathy, Executive Director, CII Godrej GBCand Mr Oded Distel, Director, Israel NewTech, signedthe Joint Declaration.The Joint Declaration aims to facilitate• Promotion of business opportunities• Business missions• Exchange of best practices• Partnerships in major events related to waterconservation and management• Cooperation activities in the field of watertechnologiesCommuniqué July 2011 | 49

leadershiptowards excellenceCII-Suresh Neotia Centre ofExcellence for LeadershipProject Management Certification WorkshopProject Management certification is considered one of themost demanded credentials for managers in technologyand systems driven operational processes. A certificationworkshop, with elements like Project Analysis, ProjectMapping Techniques, PERT, CPM and Project RiskAnalysis, was conducted from 2-4 June.Workshop on OSHA: Job Safety & Hazard AnalysisHeld on 18 and 25 June and 2 July, this workshop, hadtool kit-based features such as Root Cause Analysis,DMAIC, Design Approach, Deming Cycle, PDCA (Plan-Do-Check-Act) Applications and Statistical Approach inOptimisation for Business Paradigms. It covered CTQsand VOC (Six Sigma Customer Excellence Model),SIPOC Model, Process Mapping (As-Is Process), DataAttributes (Continuous Versus Discrete), Poka Yoke(Mistake Proofing), Failure Modes and Effects Analysis(FMEA) and Cause and Effect Analysis (Ishikawa).Production & Operations Management ToolkitOccupational health and safety (OSHA) programmesidentify hazards and measure health and safety perils,set compatible safety controls in place, and providerecommendations on avoiding accidents to managementand employees in an organisation.The OSHA workshop, held on 16 -17 June, offered an indepthexposure to strategy, with tactics like selecting thejob to be analyzed, breaking the job down into a sequenceof steps, identifying potential hazards and determiningpreventive measures to overcome these hazards.Six Sigma Certification WorkshopsAssociated with manufacturing, specifically statisticalmodeling of manufacturing processes, Six Sigma is abusiness management strategy aiming to optimise outputand ensure error-free production by identifying anderadicating the causes of errors. It uses a set of qualitymanagement methods, including statistical methods,creating a special infrastructure of people within theorganization (Black Belts, Green Belts, etc.). Six SigmaCertification workshops help companies implement SixSigma processes in their organizations and foster qualityoptimisation across verticals.Operations Management ensures long-run success of theorganization through the efficient utilization of resources. Itrequires an optimal mix of both strategic and tactical skills.Specifically designed for middle to senior level executives,the workshop, held from 22-24 June, covered topicslike Capacity Planning, Breakeven Analysis, Forecasting,Aggregate Planning, Tactical Scheduling, Location Strategies,Inventory Management, Design of Goods and Services, ShortTerm Scheduling, Johnson’s Rules, and more.Strategic CRMCustomer Relationship Management has attained the roleof a strategy aimed at managing a company’s overallinteraction with the customers, clients and sales prospects.From re-attracting former customers to building a newclient base, well developed and implemented CRM cangreatly reduce the costs of marketing and client serviceby empowering person-to-person interactions, as well asusing technology to organize, automate, and synchronizebusiness processes.Designed particularly for middle to senior level customersupport and marketing managers in Retail and IT, thiscertification programme held on 28-29 June, offeredintensive exposure to CRM Concepts, Application Areaof CRM, E-CRM and Microsoft Dynamics through handsontraining on the software.Communiqué July 2011 | 51

towards excellencetraining and developmentCII-Naoroji Godrej Centre of ExcellenceCompetency-based Interviewing SkillsThis programme, held on 3-4 June, providedparticipants with the knowledge and skills to conductan effective interview using the ‘Behavioural Model’approach.It covered the assessment and selection process,hiring strategies, types of interviews, competency-basedselection, interviewing skills, behavioural assessments,reference checks, etc.A good number of Line Managers and HR Managerswho are responsible for talent acquisition programmesin their organizations attended the programme.Achieving Excellence From WithinThe workshop on ‘Achieving Excellence from Within- Capability Enhancement and Growth Through SelfDiscovery,’ held on 7 – 8 June, addressed executivesacross hierarchies, who are aiming for excellence, andare keen to enhance their personal productivity and thatof their team members. The objective of the workshopwas to ‘delve deeper into one’s self, discover the sourcewithin and leverage it’ to excel both as a professionaland as a person.Faster New Product DevelopmentThe New Product Development & Commercialization(NPD&C) process has assumed greater strategicimportance as competition intensifies, technologygets upgraded and product half-life gets drasticallyreduced. Compressing NPD&C lead time is the key tocompeting successfully. A programme held on 10 – 11June discussed:• Innovation and NPD• Concept of customer value and the Stage & GateProcess• Deploying the “QFD Tool’ to get customer voice intoyour product• Applying project management tools• Lean Thinking in new product introductions• Understanding Cost of Delay• Partnering with suppliers• Experience• Compressing NPD & C time: pitfalls and specificsteps to improve individual / team performanceProject Planning Management & ControlWMG Module on 'Project Planning Management & Control'CII, under its partnership with the WarwickManufacturing Group, now known as WMG, Universityof Warwick, UK, organised a specialised module of 5days duration, conducted by faculty from WMG, on13 – 17 June.The module treated the management of ‘projects’in the widest context of organisational activity withspecific (limited) objectives and time scale, andconstraints. It encompassed both product developmentand ’change’ projects, indeed, any sort of project. Itprovided an appreciation of the issues and currenttechniques for successful project planning andcontrol. It provided some coverage of the place ofproject teams in the organisation, and looked brieflyat the ‘soft skills’ required of the Project Manager,structured around a practical computerised simulationexercise performed by the delegates in teams.However, the main focus was on the ‘hard skills’of Project Management including project definition;work-breakdown structures; estimating; scheduling;networking, critical path analysis; budgeting andcosting; monitoring; reviewing and controlling. Itplaced heavy emphasis on ‘Earned-Value Monitoringand Control’ and ‘Project Risk Management.’52 | July 2011 Communiqué

training and developmentHoning Procurement Negotiation SkillsAt the programme on Procurement Negotiation SkillsThe programme, held on 17 – 18 June, focused onbenchmarking procurement competency. It discussedhow to:• Reduce/slash the overall delivery time• Demarcate the areas of responsibilities between thebuyer and vendor• Reduce/slash time involved in the formalities of qualityand quantity check, delivery and payment follow-uptime and the like• Rate performance and give points for vendorperformance and rank their position.It also discussed steps to enable a vendor to become‘vendor-stakeholder’ of the company.The participants were middle-level purchasers from allsegments and sectors of industry like manufacturing,selling and buying, inventory management, logisticsplayers, airlines, as well as cargo handling units (sea,air and surface mode) and major courier transporters.Customer Relationship ManagementCustomer Relationship Management (CRM) is acombination of Business Process and Technologythat seeks to understand a company's customersfrom multiple perspectives to competitivelydifferentiate a company's products, services and solutions.The CRM programme on 23 – 24 June covered topics whichwere useful to all functional disciplines in a company.Lean AccountingLean accounting is a mechanism for measurement inLean enterprises. It enables bridging the gap between theinitiatives and the reporting mechanism for sustainability.The programme held on 24 – 25 June shared the basicsof Lean Thinking, as well as the role of Cost InformationSystem and Cost Measurement, with senior managementofficials from operations and finance.Emotional IntelligenceThe workshop held on 28 – 29 June was designed tohelp managers understand the important EmotionalCompetencies of Self Awareness, Self Management,Understanding and Handling People, and use them inday-to-day activities to bring about excellence at workand at home.Managing Risks and Uncertainties in ProjectsThe programme, held on 30 June – 1 July covereddifferent aspects of Project Management, to facilitatebetter planning and execution of projects.Advertise in CII Communique, to reach the top management of Indian industry every monthMechanical Details & TariffFULL PAGE Charges per release BACK COVER Charges per releaseSize, 23 cms (height) by 17 cms (width) Size, 23 cms (height) by 17 cms (width) Rs 28,000 / US$775Left hand position Rs 15,000 / US $ 450 FRONT/BACK INSIDE COVER/PAGE 1 Rs 23,000 / US$650Right hand position Rs 20,000 / US $ 575 Size, 23 cms (height) by 17 cms (width)DOUBLE SPREADHalf pageSize 23 cms (Height) by 36 cms (Width) Rs 35,000 / US$ 1000 size 11 cms (height) by 17 cms (width) Rs 8,000Note: All advertisements are non-bleed.Communiqué July 2011 | 53

1. This Invitation for Bids follows the General Procurement Noticefor this project that appeared in UN Development Business IssueNo.733, 31 August 2008. The Federal Republic of Nigeria andthe Republic of Cameroon has received loans from the AfricanDevelopment Fund toward the cost of the Transport FacilitationProgramme on the Bamenda – Mamfé – Ekok - Abakaliki – EnuguRoad Corridor and it intends to apply part of the proceeds of thisloan to payments under the contract for Design & Build of A NewTwo Lane Bridge over the Cross River at the Cameroon/NigeriaBorder (Ekok/Mfum) with Approach Roads - Contract No. 01/JTC/Cameroon-Nigeria/2011. Any payments made under the proposedcontract will be subject, in all respects, to the terms and conditionsof the D&B and related documents, including restrictions on theuse of ADB funding and conditions to the disbursement.2. The Design & Build (D&B) bridge project includes a new TwoLane Bridge over the Cross River of approx length 276 m withapproach roads (single carriageways of approx. 1.5 km length)on either side of the bridge. The width of the bridge carriagewayshould not be less than 11.0 m.Two types of bridge design are proposed as the main worksand these are:Alternative A: Pre-stressed Concrete continuous Box Girder(Integral or Semi-Integral) Bridge type with Approach Roads orAlternative B: Suspension or Cable-Stayed Bridge withApproach RoadsThe contract completion duration is 18 months.3. The Employers represented by the Road Sector DevelopmentTeam (RSDT) now invite sealed bids (“Bids”) from eligibleand qualified entities (“Bidders”) to provide the design-buildreferenced above (the “Works”), which is being offered as afixed price contract. Bidding will be conducted through theinternational competitive bidding procedures specified in thecurrent African Development Bank’s Rules of Procedure forProcurement of Goods and Works and is open to all biddersfrom eligible member countries as defined in the Rules.4. The Bidding Documents consist of the following:Part 1 – BiddingProcedures:Part 2 – EmployersRequirements:Part 3 – Conditions ofContract & Contract Forms:INVITATION FOR BIDSIFB No. 01/JTC/IFB/Cameroon-Nigeria/2011 May 2011FEDERAL REPUBLIC OF NIGERIA,REPUBLIC OF CAMEROON, ECOWAS/ECCAS/CEMACDesign & BuildA NEW TWO LANE BRIDGE OVER THE CROSS RIVERAT THE CAMEROON/NIGERIA BORDER (EKOK/MFUM) with APPROACH ROADSSection I - Instructions to Bidders (ITB)Section II - Bid Data Sheet (BDS)Section III - Evaluation & QualificationCriteriaSection IV - Bidding FormsSection V - Eligible CountriesSection VI – RequirementsSection VII - General Conditions ofContractSection VIII-Particular ConditionsSection XI -Contract Forms5. Interested eligible bidders may obtain further informationfrom and inspect the bidding documents at the Road SectorDevelopment Team at the address stated at end of this documentcommencing May 31, 2011 from 09.00 to 16.00 hours localtime during working days.6. A complete set of bidding documents in English language maybe purchased by interested bidders on the submission of awritten application to the address below and upon payment ofa non-refundable fee of Naira 10,000.00 or its equivalent in anacceptable convertible currency (USD, GBP, Euro CFA). Themethod of payment will be by Bank Draft or Certified Cheque.The set of bidding documents will be handed over upon receiptof payment.7. Bids must be delivered to the address below by 14.00 hourslocal time, August 31, 2011. All bids must be accompaniedby a bid security amounting to Naira 60 million or anequivalent amount in a freely convertible currency. Latebids will be rejected. Bids will be opened in the presence ofbidders’ representatives and anyone who choose to attend atthe address below on August 31, 2011 at 14.15 hours localtime.8. Bids shall be valid for a bid period of one hundred eighty (180)days after Bid Opening.9. Post-qualification will be based on meeting all the followingminimum pass/fail criteria regarding the Applicant’s generaland particular experience (successful experience as amain or principal contractor in the execution of at least twoprojects of a similar nature and complexity comparable to theproposed contract within the last five years), personnel (theApplicant must have suitably qualified personnel with a minexperience of 12 years in the execution of similar works) andequipment capabilities (the Applicant should own, or haveassured access through hire, lease, purchase agreement orother means to key items of equipment in full workingorder, and financial position (the Applicant shall demonstratethat it has access to, or has available, liquid assets, lines ofcredit and other financial means to meet the constructioncash flow).10. Clauses relating to Preference for Domestic or Regional Biddersare not applicableThe Unit Manager,Road Sector Development Team (RSDT)6, Niagara Close, Off Erie Crescent, Off Nile Street,Maitama, Abuja, Nigeria.Attn: Engr. L.A. Audi, Unit Manager, RSDTTel: +234-7034044403E-mail: unitmgr.rsdt@yahoo.co.uk or unitmanager@rsdt.gov.ng54 | July 2011 Communiqué

BiotechnologyIndia Pavilion in BIO 2011, USAArun Singh, Deputy Chief of Mission, Embassy of India,Dr MK Bhan, Dr Vijay Chandru, President ABLE, & Chairman andCEO Strand Life Sciences Ltd, and Dr Rajesh Jain, Chairman, CIINational Committee on Biotechnology, and JMD, Panacea BiotecLtd, releasing the India Pavilion Exhibitor Catalogue at Bio 2011Dr MK Bhan, Secretary, Biotechnology, India, inaugurating the IndiaPavilion at Bio 2011 in Washington DC, USADr. M K Bhan, Secretary, Biotechnology, India,inaugurated the India Pavilion at the BIO exhibitionin Washington DC, USA, on 29 June. The Pavilionwas jointly organised by CII and the Association ofBiotechnology Led Enterprises (ABLE) with the supportof the Department of Biotechnology.Mr Arun Kumar Singh, Deputy Chief of Mission, Embassyof India in the United States, Dr Rajesh Jain, Chairman,CII National Committee on Biotechnology, and Joint MD,Panacea Biotech Ltd, and many other dignitaries werepresent at the inauguration.The BIO International Convention is the world’slargest annual event for countries to showcase theirbiotechnology strength to attract global players forpartnership, investments and business development.India put up a great show at the exhibition, with theparticipation of many industries and state governments.The India Pavilion drew immense interest among theglobal biotech players for collaborations.The yearly exhibition was preceded by CII's 10th BiotechMission to US. About 45 Indian delegates participatedin the mission, jointly led by Dr Bhan and Dr. Jain.The delegation had the opportunity to visit premierinstitutions like NIH, University of Maryland, JohnHopkins University, etc, and had fruitful interactions andbusiness meetings.InnovationGlobal Innovation Index 2011The Global Innovation Index 2011, a CII and INSEADDr. Naushad Forbes, Chairman, CII Innovation Council, and Director, Forbes Marshall Inc.; Lynn St Amour, President/CEO, Internet Society(ISOC), Dr. Francis Gurry, Director General, WIPO; Prof. Rolf-Dieter Heuer, Director General, European Organization for Nuclear Research(CERN), Prof. Leonid Gokhberg, First Vice-Rector, Higher School of Economics (HSE) and Director, HSE Institute for Statistical Studies andEconomics Knowledge, and Prof. Daniele Archibugi, Technology Director, Italian National Research Council, and Professor of Innovation,University of London, at the launch of Global Innovation Index 2011 in GenevaCommuniqué July 2011 | 55

knowledge & innovation initiativesCountryGlobalInnovationIndex2011GII 2011 Ranking ( Top10 and India)InnovationOutputSub-IndexInnovationInputSub-Indexstudy on ranking countries on innovation, was releasedin Geneva on 30 June for the year 2011. The studyis an annual effort to analyze different enablers forpolicy makers and other stakeholders like industry andinstitutions to evaluate their actions and impacts vis-avisother nations.Created in 2007, the GII examines how countries leveragetheir enabling environments to stimulate innovationresults. Five pillars constitute the innovation inputsub-index: institutions, human capital and research,infrastructure, market sophistication and businesssophistication. The innovation output sub-index iscomposed of two pillars: scientific outputs and creativeoutputs.From an Innovation efficiency index of 101 in2010, India has improved its ranking to 9th thisyear. Overall contribution by input factors—politicalstability, regulatory environment, human capital,research and development, infrastructure, marketsophistication and business sophistication—coupledwith an improvement in scientific and creative output,has led to this stupendously high efficiency indexfor the country.In terms of the Innovation Efficiency Index, the reporthighlights those countries that achieve more fromInnovationEfficiencyIndexGlobalInnovationIndex 2010Switzerland 1 2 3 12 4 7Sweden 2 1 5 6 2 3Singapore 3 17 1 94 7 5Hong Kong (SAR) 4 12 2 66 3 12Finland 5 6 6 35 6 13Denmark 6 7 7 47 5 8United States 7 5 11 26 11 1Canada 8 10 8 54 12 11Netherlands 9 3 16 13 8 10United Kingdom 10 9 10 50 14 4India 62 44 87 9 56 41GlobalInnovationIndex2009less, as well as those thatlag behind in fulfillingtheir innovation potential,which means the ratio ofthe output score over theinput score. Three BRICcountries are among theTop 10 on InnovationEfficiency.India ranked 62 in theoverall innovation Indexthis year, compared toits last year’s position of56. Switzerland toppedthis year’s ranking,gaining three spots fromits position in last year’sGII, with Sweden andSingapore in the 2nd and3rd positions, respectively.This year’s Top 10 listis dominated by Europewith six countries andincludes Hong Kong(4th), the United States(7th) and Canada (8th).China is the only emerging economy to have reachedthe Top 30 on the GII (29th).Dr. Naushad Forbes, Chairman, CII InnovationCouncil, and Director, Forbes Marshall, said,“Today the whole world is talking about innovationin all forms starting from industry to governmentto society. After the recent economic slowdownthe focus has shifted clearly towards thedeveloping regions not only in terms of a boomingpotential market but also as a hot spot forfrugal innovations. Measuring this shift isimportant to know how we are doing, GII is astarting point to do that and unquestionably in theright direction.”Mr Soumitra Dutta, Roland Berger Professor of Businessand Technology at INSEAD, and editor of the studysaid, “Innovation is critical to driving growth in bothdeveloped and emerging economies, especially duringa time when the global economy is still in a state ofrecovery.”Apart from CII, this year the other three knowledgepartners in GII are Alcatel-Lucent, Booze & Companyand the World Intellectual Property Organisation(WIPO).56 | July 2011 Communiqué

Affirmative ActionIndia’s growing economic prowess can only becelebrated when all its citizens can be part of thesuccess story. CII, has since 2007, been committed toencouraging industry members to adopt the CII voluntarycode of conduct on Affirmative Action. This is integralto the organization’s vision of a society that is moreequitable and cohesive.Amara Raja Batteries LimitedAmara Raja Batteries Ltd. (ARBL), an Amara Raja– Johnson Controls Company, that is a technologyleader and a large manufacturer of lead acid batteriesfor both industrial and automotive applications, hasundertaken to improve the quality of life of those fromsocially disadvantaged sections of society by up-skillingand continuous training employees to enhance theircapabilities and competitive skills.The ARBL employee workforce profile for the last 3years is presented in the table below:Percentage of SC / ST EmployeesJanuary 2008 January 2009 January 2010TotalHead SC/ST %CountTotalHead SC/ST %CountTotalHead SC/ST %Count1766 233 13.1937 2030 256 12.6108 2559 373 14.576245 11 4.4898 327 17 5.19878 404 21 5.19802208 25 12.0192 269 25 9.29368 324 32 9.87654172 15 8.72093 249 32 12.8514 324 43 13.2716135 2 1.48148 222 7 3.15315 197 15 7.6142181 6 7.40741 154 6 3.8961 36 8 22.22222607 11.2006 3251 10.5506 3844 12.7992The composition of SC / ST employees at various levelsof the company’s hierarchy is:A. Management Staff 33B. Non-Technical Staff 13C. Technical Staff 21D. Workmen 360E. Others / Management Trainees 05Education & Training for Employability &EntrepreneurshipA complete transformation of villages by encouraginginclusive growth continues to be the focus area ofthe group. Keeping in perspective that 54% of India’spopulation is youth, the group has invested in providingemployable skills with value based education and onthe job training.Till 30 April 2011, a total of 1463 unemployed ruralyouth had undergone quality training under thisscheme of the company. Of these, 1393 havebeen employed by Amara Raja itself in variousdepartments.Currently, 1364 unemployed youth are undergoingtraining under the ARTS scheme in the company. Ofthese, 320 trainees belong to SC/ST communities.EducationAs a part of its Corporate Social Responsibility,the company provides education facilitiesat the primary and secondary level by establishingfully equipped education institutions in remotevillages in the vicinity of company premises. Onesuch institute is at Karakambadi and the other atPetamitta, in Chittoor District of Andhra Pradesh.A total of 850 students study in these institutions,261 at the secondary level and 589 at the primarylevel.As part of its Affirmative Action initiatives, thecompany has provided 100% concession in tuitionfees to 20 students belonging to SC /STcommunities.To develop the skill levels of the employees,training programmes are being implementedas per the directions of the Government ofAndhra Pradesh. At present, three SCcandidates are undergoing apprentice training in thecompany.There is every reason to believe that in time, focusedinterventions such as these will help match opportunityto capability, offering SC/ST candidates access toemployment that requires specialized skills andtraining.Communiqué July 2011 | 57

Yi NationalT h e E n v i r o n m e n tinitiative of Yih a s p l a y e da k e y r o l ein generatinga w a r e n e s s ,e s p e c i a l l ya m o n g s t t h estudent community,o n s i g n i f i c a n tc o n t e m p o r a r yenvironmental issues.EnYironment website launched by theYi Vadodara chapterOn the occasion of World Environment Day on 5 June,Yi undertook many activities across its chapters, fromKashmir to Vizag, and from Ahmedabad to Nagaland.These included sessions, panel discussions, cleanlinessdrives, tree plantation and seed ball making activities.This year, 23 Yi chapters from across the countrycommemorated World Environment Day and directlyimpacted more than 13000 people.Young Indians Coimbatore Chapter, in association withCognizant Coimbatore, organized an awareness sessionon ‘Saving the Sparrows’ on 4 June, as a run-up toWorld Environment Day.In Erode, a poster on ‘Conserve Water’ was releasedby Mr C Kamaraj, District Collector.Release of ‘Conserve Water’ poster in ErodeYi Goa, in association with the Mineral Foundationof Goa, Department of Forests, and the VivekanandEnvironment Awareness Brigade supported a NatureWalk to Savari Waterfalls in Netravali, Sanguem Goa.Around 80 student volunteers from various schools inGoa and other nature enthusiasts trekked up to thewaterfall for a clean-up drive. They brought down morethan 130 kilos of garbage like plastic bags, wrappers,pet bottles, plastic cups, plates and containers, glassbottles, beer cans, metal containers and other nonbiodegradablewaste. The garbage was delivered to arecycling centre in Panjim.Commemorative signboard installed by Yi members at awaterfall in GoaYi Hyderabad celebrated World Environment Day with aunique workshop on ‘Building your own Organic Kitchen’at a mango farm on the outskirts of Hyderabad.World Environment Day celebrations in Madurai, inpartnership with Kalyani Associates, Anamalai Agenciesand ARAS Appliances (P) Ltd included distribution ofstickers and pamphlets on environmental awareness,distribution of tree saplings to automobile dealers, freeemission check-up for two wheelers, distribution ofjute bags, and an environmental awareness campaignthrough SMS.Yi Pune supported the scattering of 50000 seedballs inand around the city.The Vadodara Chapter launched a website www.enYironment.com. to make people think about issuesof environmental importance.Chapter Round -upCoimbatoreThe Health Platform of Yi Coimbatore facilitated therenovation of the Periapodhu Primary Health Centre inValanthayamaram on 23 June. The initiative involvedproviding equipment for the operation theatre and agenerator to make it functional without disruption.On 27 June, Yi, in association with KG Hospital,58 | July 2011 Communiqué

yiGoaOn 12 June, Mr. Atul Jadhav, President, Goa BargeOwners Association, addressed Yi members on TeamBuilding and Entrepreneurship.MumbaiCPR & First Aid session in Coimbatoreorganized a CPR and First Aid demonstration sessionfor the fire brigade of Coimbatore Region.A session on ‘Grooming of a Military Leader – A NavalPerspective’ addressed by Commodore Amar SinghBaghel, Commanding Officer, INS Agrani, and President,Naval Selection Board, on 28 June, gave a detailedexplanation about the ethics, values and groomingprocess that are behind a cadet’s growth and evolutioninto a military officer.ChennaiYi members at the Renault Nissan Factory in ChennaiMore than 40 members from Yi and CII Chennai visitedtwo automobile manufacturing companies: RenaultNissan & Hyundai Motors India Ltd, on 10 June.ErodeOn 17 June, CII and Yi Erode organised a BestManufacturing Mission to Toyota Kirloskar Motors andTata BP Solar Ltd to understand their manufacturingtechniques and innovative practices.Albert Almeida, COO, Hungama Mobile, with Yi members in MumbaiMr Albert Almeida, Chief Operating Officer, HungamaMobile, shared his experience on ‘Mobile Revolutionand Role of Value Added Services,’ on 30 June.Hungama's domestic and international mobile businesscovers entertainment, platforms applications, creatingconvergence opportunities in media, entertainment andmarketing.PuneOn 7 June Yi Pune organized an orientation session forthe students of the Symbiosis Institute of InternationalBusiness (SIIB).On 10 - 30 June, a collection drivecollected old school books, bags,toys, clothes, etc for distribution tounderprivileged children.Finally, on 30 June, Ms Meeran ChaddhaBorwankar, Commissioner of Police,discussed the role of Police in cityrelatedissues.RaipurMeeran ChaddhaBorwankar,Commissioner ofPolice, PuneMission members from Erode at Toyota KirloskarCancer Awareness Camp in RaipurA Cancer Awareness and Check-up Camp was heldfor industrial workers and staff at RR Ispat Ltd on10 June.Communiqué July 2011 | 59

AsiaChinaIndia-China Bilateral Trade (Jan-May 2011)Trade Value ChangeTotal trade $29.3 bn Up 17.1%India’s imports from China $18.5 bn Up 24.7%India’s exports to China $10.8 bn Up 6.1%India’s deficit$7.7 bnSource: http://www.customs.gov.cn/publish/portal0/tab1/info304902.htmSession on China's 12th Five-Year PlanCII IBF China on 2June organized aninteractive session onChina's 12th Five-YearPlan in Shanghai. MsMary Boyd, Director,Shanghai Corporate Network, EconomistIntelligence Unit, the Economist Group,who was the guest speaker, spoke onimportant aspects of future developmentand the impact on key industries thatforeign companies are engaged in,Mary Boyd,Director,EconomistIntelligence Unit,The EconomistGroup, Shanghaiin China. Her presentation also focused on the variousdevelopmental policies China will adopt during the 12thplan period. Around 50 representatives of various Indiancompanies attended the session.6th China-South Asia Business ForumA CII delegation led by Mr Sandipan Chakravortty,Past Chairman, CII (ER) participated in the 6th SouthSandipan Chakravortty, Past Chairman, CII (ER) speaking at theChina South Asia Business Forum at KunmingAsia Business (CSAB) Forum on 5-6 June in Kunming,Yunnan.CII, in association with CCPIT Yunnan, organized anexclusive session on ‘Doing Business in China’ during themeeting. Mr Chakravortty made a detailed presentation onthe booming Indian economy and the investment potentialfor Chinese companies in various sectors in India. Healso invited Chinese enterprises to participate in CII’sBiz Bridge – the largest engineering and manufacturingtrade fair in India’s Eastern Region.Mr I M Pandey, Consul General of India in Guangzhou,suggested that infrastructure, power, and automobileswere some key sectors that Chinese companies couldconsider for investing in India.India- China Business & Investment SeminarThe Consulate General of India, Shanghai, jointly with CIIand the Municipal Government of Yangzhou, organizedthe ‘India-China Business & Investment Seminar-Opportunities in IT, Engineering & Allied Sectors’ on11 June in Yangzhou, Jiangsu. The seminar gaveRiva Ganguly Das, Consul General of India in Shanghai, with participants at the ‘India-China Business & Investment Seminar’ in Yangzhou60 | July 2011 Communiqué

eportChinese companies interested in investing in India anoverview of the FDI policy, basic tax and business laws,financing options etc. Ms. Riva Ganguly Das, ConsulGeneral of India in Shanghai, led a delegation of 80participants from more than 50 Indian companies andbanks located in the Eastern China Region to Yangzhou.The delegation was received and hosted by Mr. XieZhengyi, Mayor of Yangzhou. Senior representatives ofDeloitte, State Bank of India, Thermax and NIIT madepresentations at the Forum.Foreign Investment in Real EstateA total of 23% of foreign investment in China wentinto the real estate sector in 2010. The ratio of foreigninvestment in the property sector has remained wellabove 10% over the past 10 years.Service TradeChina is drafting a five-year plan to promote trade in itsService sectors, with a projected service trade volumeof $600 billion by 2015. In 2010, China's service tradereached $362.4 billion, twice that of 2005, and rankedfourth in the world.China tops in Gold OutputChina remains the world's largest gold producer for the4th consecutive year. Its explored gold reserve ranksthird in the world. The world’s explored gold reserve isapproximately 100,000 tons, of which South Africa, asthe world's largest owner of gold resources, has 31,000tons, Russia 7,000 tons and China 6,328 tons. In 2010,China's gold output reached nearly 341 tons.Economic Indicators ( May 2011)CPI Up 5.5%(34-monthhigh)Retail salesof consumergoodsPPI Up 6.8% PMImanufacturingsectorIndustrialvalue-addedoutputFixed assetinvestment(Jan-May)New banklendingFiscalrevenueFDI (May)Up 13.3%Rose 25.8%to 9.03 trillionyuanShrank to551.6 billionyuanUp 34% to1.061 trillionyuan$9.225 billion,up 13.43%Imports (Jan-May)Exports (Jan-May)Total trade(Jan-May)Trade surplus(Jan-May)FDI (last onedecade)Rose 16.9%to 1.47trillion yuanDropped to52%$689.412billion, up29.4%$712.375billion, up25.5%$1401.787billion, up27.4%$22.963billion, down35.1%$653.14billion, up@9.5% p.a.Mobile Phone UsersFrom January to May, China's total mobile phonesubscribers increased by 51.1 million, more than halfof which came from 3G users, to 910.1 million. Thenumber of 3G subscribers rose by 57% to 73.8 millionin the first five months. From January to May, broadbandsubscribers grew by nearly 10% to 138.5 million, whiledial-up users decreased by 129,000 to 5.77 million.Showbiz MarketA PricewaterhouseCoopers (PwC) report expects Chinato overtake Germany this year to become the world'sthird-largest entertainment and media market withspending hitting $96 billion. Overall spending in Chinaon entertainment and media grew by 13.9% to $85.5billion in 2010.POSCO PlantSouth Korea's top steel producer Posco will build a jointventureplant in China's northeastern province of Jilin tomeet the booming demand from the region's auto industry.The new plant, to produce 200,000 tons of auto steelpanels annually, will be completed by July 2012.China Holdings of US DebtChina, the largest foreign holder of US Treasuries,bought more federal bonds in April for the first timesince October despite concerns over the US debt level.China's purchases of US debt rose $7.6 billion to $1.15trillion. Japan remained the second-largest foreign buyerof US debt, holding $906.9 billion at the end of April.JapanJobless Rate UpJapan's unemployment rate rose in April for the first timein six months, while the nation's factory output posteda weaker-than-expected rebound following the Marchearthquake and tsunami. The April jobless rate climbedto 4.7% from the March rate of 4.6%. The number ofjobless people in Japan stood at 3.09 million in April,down 300,000 compared to a year earlier.Reconstruction CostsThe central and local governments will need to spend14 -18 trillion yen over the next 10 years to financereconstruction following the earthquake and tsunami,according to the Japan Research Institute.Signs of RecoveryThe Japanese economy has been showing signs ofrecovery three months after the massive earthquake andtsunami, according to Finance Minister Yoshihiko Noda.Communiqué July 2011 | 61

eport"The supply chain (of industrial products) is about to berestored while consumer confidence is on a recoverytrack," he said.Wage Cut for Public ServantsThe Japanese government has adopted relevant bills forcivil service reform, featuring an average annual wagecut of 7.8% until March 2014. If implemented in July,the government plans to allocate some 200 billion yenin expected reduction for the current fiscal year for thereconstruction of areas devastated by the earthquakeand tsunami.Increased Iinvestment in East ChinaEast China's Jiangsu Province has become a populardestination for Japanese investors as they areincreasing investment outside the country as part ofJapan's efforts to transfer production capacity afterthe massive earthquake and tsunami. Jiangsu saw theestablishment of 80 Japanese-funded businesses witha total investment of $2.14 billion between mid-Marchand the end of May, a rise of 31.1% over the sameperiod last year.NSK Japan’s China InvestmentJapan's NSK Ltd will invest US$300 million to build aplant in Anhui province, China, in October 2011, thecompany's biggest investment in an overseas plant sofar. NSK, Japan's first bearing producer founded in 1916,produces automotive products, precision machinery andparts, in 40 manufacturing plants in 12 countries.Lending SchemeThe Bank of Japan kept its key interest rate unchangedat zero to 1% and expanded a lending programme tobolster the disaster-hit economy. It will offer commercialbanks 500 billion yen in new credit as part of a measureintroduced last year to fuel economic growth.Economic Growth Forecast RaisedThe IMF raised its forecast of economic growth inJapan for 2012 to 2.9% from an earlier projected 2.1%,expecting a recovery from the March earthquake andtsunami. The IMF also downgraded the forecast for 2011to minus 0.7% in terms of real GDP.Current Account Surplus DownJapan's current account surplus plunged 69.5% from ayear earlier in April. While the drop was much smallerthan the 80% forecast by economists, it was the smallestsurplus for April in 26 years. The surplus in the currentaccount fell to 405.6 billion yen ($5.0 billion) in Aprilfrom 1.33 trillion yen a year earlier.Quake Damage EstimatesDamage to buildings, roads and ports from the largeearthquake and tsunami in March is estimated to be at 16.9trillion yen ($209.8 billion), according to the Cabinet Officeof Japan. Damage to homes and factories is estimatedaround 10.4 trillion yen, while damage to rivers, ports androads is expected to be about 2.2 trillion yen.Republic of South KoreaHyundai Motor's Indian Market ShareThe market share of leading South Korean automakerHyundai Motor Co. in India rose to the year's high inMay on brisk sales of its new passenger car. Accordingto the Korea Automobile Manufacturers Association,Hyundai Motors sold 31,123 cars in India in May, up14.6% from the same period last year.Economy to Expand 4.5%The Korea Institute for Industrial Economics and Trade(KIET), expects South Korea's economic growth toexpand by 4.5% in 2011, compared to 6.2% in 2011,as the steady pace of the global economic recoverycontributes to more exports.Exports UpSouth Korean exports are expected to surpass theUS$500 billion mark for the first time this year, helped bythe steady pace of global economic growth, according toa report of Samsung Economic Research Institute. Thereport expects South Korea to ship out $555.7 billionworth of goods this year, up 19.2% from 2010.Trade SurplusSouth Korea posted a trade surplus for the 16th straightmonth in May, fueled by strong exports of petroleumproducts and wireless communications devices. Thetrade surplus was US$2.2 billion last month.Current Account Surplus with ChinaSouth Korea posted a record current account surplus ofUS$52.8 billion with China in 2010 as exports to Chinahit an all-time high.SingaporeMr Tarun Das, Former Chief Mentor, CII, visited Singaporefrom 13-16 June. During his visit, he had wide-rangingdiscussions with senior ministers of Singapore includingEmeritus Senior Minister Goh Chok Tong, Law andForeign Affairs Minister K Shanmugam, and EducationMinister Heng Swee Keat.Mr Das also met Mr George Yeo, former Foreign AffairsMinister, Dr TCA Raghavan, Indian High Commissioner to62 | July 2011 Communiqué

eportSingapore, Ambassadors-at-Large Tommy Koh and GopinathPillai, Mr S Dhanabalan, Chairman, Temasek Holdings, andProf Kishore Mahbubani, Dean, Lee Kuan Yew School ofPublic Policy at the National University of Singapore.The discussions ranged from exchanging views onAustralia & New ZealandNew ZealandOn his first visit toIndia, the Rt HonMr John Key, PrimeMinister of NewZealand, expressedhis appreciation forIndia with its youngp o p u l a t i o n , i t svisionary approachand its attitude ofrelentless toil. MrKey, who visitedIndia with a strongbusiness delegation of 25 Industry captains from differentsectors, assured his support in aggressively pursuing theFTA between the two countries by 2012, at a businessmeeting organized by CII and other industry bodies on28 June in New Delhi.Mr Anand Sharma, Union Minister of Commerce andIndustry, India, assured Mr Key that his Government believedin partnership. This visit will give a new momentum to therelationship between the two countries, he said, praisingNew Zealand’s prowess in sectors such as Technologyand Energy, and its excellent food processing technologies,which could serve as a benchmark for India. Mr Sharmaalso noted the presence of the huge Indian DiasporaCIS & RussiaRussiaA 22-member CII CEOs delegation, led by Mr BMuthuraman, President, CII, and Vice Chairman,Tata Steel, and Chairman, Tata InternationalLtd, traveled to Russia for the St PetersburgInternational Economic Forum 2011. This was thesecond consecutive year that CII organized theCEOs delegation to the event. Many of thedelegation members addressed various sessionsof the Forum.The delegation also participated in the IndiaRussia Business Dialogue on 16 June, whereindiscussions were held on economic and commercialdevelopments in India-Singapore relations and the Indianeconomy, possible areas of cooperation between Indiaand Singapore, and CII’s initiatives in and with Singapore,including the recently-held fourth round of the India-Singapore Strategic Dialogue, among others.Anand Sharma, Union Minister for Commerce & Industry, India; Rt. Hon. John Key,Prime Minister of New Zealand, and Ajay Shriram, Chairman, CII National Committeeon Sugar, and Chairman & Sr MD, DCM Shriram Consolidated Ltd, in New Delhiin New Zealand, andacknowledged thecountry as a favourited e s t i n a t i o n f o rBollywood, Tourismand Higher Education.India, he said, wasbattling the challengeof sustaining highlevel of growth, whilecoping with climatechange, food inflation,etc.M r S t e p h e nwho wasFlemming, former New Zealand cricketer,also present on the occasion, said cricket has been anadhesive bringing the two countries together.Mr Ajay Shriram, Chairman, CII National Committeeon Sugar, and Chairman & Sr. MD, DCM ShriramConsolidated Ltd, identified areas of collaboration thatIndia and New Zealand need to kick start, such assimplification of rules of investment in non conventionalsources of energy; collaboration and technology inputs inagriculture, dairy and development of the wool industry,and research programmes in biotech and bio pharma.The FTA he suggested, should include the servicessector and investment in its ambit.Sergei Ivanov, Deputy Prime Ministerof Russia, with Anand Sharma,Union Minister for Commerce &Industry, India, in St Petersburg,RussiaSergei Cheremin, Minister forEconomic Development of MoscowGovernment and B Muthuraman,President, CII, and Vice Chairman,Tata Steel, and Chairman, TataInternational LtdCommuniqué July 2011 | 63

eportcollaborations in specific sectors.CII, in partnership with the Department ofIndustrial Policy & Promotion, also organizedan Indian Reception for the Forum delegates, whichEuropeSloveniaMr Borut Pahor, Prime Minister of theRepublic of Slovenia, visited India from13-6 June, with a strong 40 member officialand business delegation. This was the firstvisit of the Slovenian Prime Minister toIndia since their independence in 1991. CIIorganized business seminars with Mr Pahorin Mumbai, New Delhi and Bangalore.Addressing the seminar in New Delhi, theSlovenian Prime Minister invited investmentsfrom India in various sectors. “In spite ofthe global economic crisis, trade betweenIndia and Slovenia grew 15 % in 2010 overthe previous year, a quarter billion euros of trade shouldbe multiplied,” he said.The Slovenian government is encouraging its businessmento search for business opportunities in the fast-growingIndian market. “India is Slovenia’s second biggest tradepartner in Asia,” said Mr Pahor.Ms Preneet Kaur, Union Minister of State, External Affairs,Latin America & The CaribbeanTrinidad & TobagoA Business Forum on the ‘Roleof the Diaspora in Building a NewPartnership between India and theCaribbean’ was held on 31 Mayin Port of Spain, the capital of theRepublic of Trinidad & Tobago (T& T). A 26-member CII businessdelegation joined Mr Vayalar Ravi,Union Minister of Overseas IndianAffairs & Civil Aviation, India, tocelebrate India Arrival Day in T & T,and attended the Business Forum.Mr Vayalar Ravi and Mr StephenCadiz, Minister of Trade & Industry,T&T, inaugurated the Forum, whichhad business sessions on investment opportunitiesbetween the two countries and the role of disapora,was attended by about 350 people, representingthe governments and industry of both India and Russia.Mr Anand Sharma, Union Minister for Commerce andIndustry, India, was the Guest of Honour.Borut Pahor, Prime Minister of Slovenia; Vladirmir Gasparič, Director General, Ministryof Foreign Affairs, Slovenia; and Banmali Agrawala, Executive Director - Strategy &Business Development, The Tata Power Company Ltdurged both sides to identify potential areas of synergiesand take bilateral relations to a higher level.In Mumbai, the Prime Minister of Slovenia addressedan exclusive, high level CII-CEO roundtable to discussinvestment and trade matters between India and Slovenia.Over 100 business to business meeting between theSlovenian delegation and top representatives of Indianindustry in Mumbai were facilitated.Vyalar Ravi, Union Minister for Overseas Indian Affairs & Civil and Aviation, India, with theCII business delegation in Trinidad & Tobago. Also seen: Malay Mishra, High Commissioner ofIndia, Trinidad & Tobago, and Ashook Ramsaran, Executive Chairman, GOPIO, (3rd and4th from left respectively)as well as presentations and factory visits by thevisiting Indian delegation. The event was organised64 | July 2011 Communiqué

eportby CII, the High Commission of India, the OverseasIndian Facilitation Centre (OIFC), the India-Trinidad &Tobago Chamber of Commerce (ITTCC), and the GlobalOrganisation of People of Indian Origin (GOPIO).India, as one of the largest and the most dynamicemerging economies, has proved itself to be a key driverof global growth. Its sustained growth can be attributedto strong service sectors, emerging knowledge spheres,high number of qualified people and a huge youngpopulation, said Mr Ravi. He said that globalisationhas been one of the major facets of India’s growth.Trade and investments have grown with the rest of theworld. Exports of goods and services have both beenon the rise.Ms Kamla Persad Bissessar, Prime Minister ofT&T, invited investments from India in Education, ICT,Pharmaceuticals, Sports, Packaging & Printing, FinancialServices, and Wellness. Tobago was being developed asa centre for healing, and this would require investments,she added.Mr Malay Mishra, High Commissioner of India, describedthe opportunities available for Indian business in T&T.North AmericaCanadaCII-OIFC Delegation to Mini PBD in CanadaA six member CII-OverseasIndian Facilitation Centre(OIFC) delegation, led by MrDeep Kapuria, CMD, HitechGroup, visited Toronto from8 – 10 June coinciding withthe Mini Pravasi BharatiyaDivas. The delegation, inaddition to attending themini PBD, had meetingswith CII’s MoU partners,the Canada-India BusinessCouncil (CIBC) on 8 Juneand the Canadian Councilof Chief Executives (CCCE)on 9 June.Dr. A Didar Singh, Chairman OIFC, and Secretary,Overseas Indian Affairs, with Asha Luthra,Convener, PBD-Canada 2011CIBC hosted a reception for the delegation on 8June, addressed by Mr Arun Maira, Member, PlanningCommission. The reception provided a great networkingopportunity for the delegation members with Canadianindustry. The CCCE hosted the CII delegation on 9June, with discussions led by Mr Sam Boutziouvis, VicePresident, Economics and International Trade, CCCE.Mr Stewart Beck, Canadian High Commissioner to Delhi,pointed out that Canada-India economic relations are nowat their best ever. A CEPA could be a building block intaking Canada-India relations to new heights, and thesecond round of discussions are scheduled in July 2011.There is a possibility of signing a Social Security Agreementand Foreign Investment Promotion & Protection Agreement(FIPA) soon. He also briefed about the promotion of tourismbetween two countries and the resumption of a direct AirCanada flight to India. Canada-India cooperation in shaleDeep Kapuria, Chairman, Hitech Group,and leader of the CII delegation to Canada withSam Boutziouvis, Vice President, Canadian Councilof Chief Executivesgas, agriculture and food processing, supply chain,and the knowledge economy could take economic andbusiness relations to a different level. The discussionsalso covered nuclear engagement and infrastructuredevelopment between the countries.The Mini Pravasi Bharatiya Divas was inaugurated byMr David Johnston, Governor General of Canada, andMr Dalton McGuinty, Ontario Premier, along with MsPraneet Kaur, Union Minister of State, External Affairs,India, on 9 June in Toronto. Over 550 delegates attendedthe first such significant conference, focusing on theIndian diaspora in Canada.The conference was the first of many large events plannedfor 2011 – designated the Year of India in Canada. CIIdelegates addressed various PBD sessions deliberatingon engaging diaspora youth in Education and Innovation;business prospects of Canada-India trade, and innovationand economic development.Communiqué July 2011 | 65

eportUnited State of AmericaGlobal Partnership InitiativeCII organized a reception for a USdelegation led by Mr Kris Balderston,Special Representative,GlobalPartnership Initiative, Office of theSecretary of State, USA, on 20June in New Delhi. The discussionsrevolved around the ‘GlobalAlliance for Clean Cookstoves,’ apublic-private initiative to improvelivelihoods, empower women,and combat climate change bycreating a thriving global marketfor clean and efficient householdcooking solutions. The Allianceis seeking partners to provideleadership, funding, expertise,in-kind resources, and/or othersupport to advance this mission.CII invited interested representatives from allstakeholder communities to join the discussionand offered full support to this initiative. CII briefedthe US delegation about other innovative initiativesincluding the PPP model focusing on skills throughthe National Skills Development Corporation, the ShivNadar Foundation’s project to create entrepreneurship,where corporate houses provide monetary supportto young university students to go to nearby villagesand guide the villagers to earn their livelihood bybecoming self-dependent, solar lanterns, Chotu Koolrefrigeration systems, Swach water purification filters,and others.Meetings with Mr Robert BlakeCII organized a meeting with Mr Robert Blake,Assistant Secretary for South Central Asian Affairs, USSanjay Budhia, Chairman, CII National Committee on Exports;Beth Payne, Consul General of USA; Robert Blake, Asst Secretary ofState, South & Central Asian Affairs, US Dept of State; andR K Agrawal, Deputy Chairman, CII (ER), in KolkataKris Balderston, Special Representative for GlobalPartnership Initiative, US Dept. of State, withChandrajit Banerjee, Director General, CIIDepartment of State, on 20 June in New Delhi. Mr Blakewas accompanied by Mr. Michael H Fuchs, SpecialAdvisor to the Secretary of State; Mr. Mathew Lowe,Special Assistant to the AssistantSecretary; Ms. Mary Tarnowka,Deputy Economic Counsellor,US Embassy; Mr. Sandip Mehta,US Embassy and Ms. AnnalieseHeiligenstein, Economic Officer,US Embassy.The discussions were primarilyfocused on West Bengal, whereMr. Blake had earlier addressed CIImembers, and had meetings withofficials in the new West Bengalgovernment. The West Bengalgovernment is seeking help fromBengali expats, for investmentsand expertise for the state.Mr Blake noted that building infrastructure and cold chainstorage remain on the development agenda. Educationand vocational training programmes – following the PPPmodel, would result in generating jobs for India’s softdividend of young people.On boosting India-Afpak trade, Mr Blake spoke ofreviewing the ‘negative list’ with Pakistan. India,Pakistan and Afghanistan trade and road linkagescould lead to India’s trade with Central Asian countries,he said.Climate Change and EnergyTaking forward the discussions on US-India bilateralcooperation in climate change and clean energy, Track2 teams from USA and India (New Delhi and Mumbai)got together through a video-conference on 7 June.The video conference was an avenue for informationalexchange in anticipation of the next in-person meetingtentatively scheduled for September. The stakeholderson each side gave an overview of recent developmentsin India and the United States on Climate Change;and discussed priority areas of cooperation in cleantechnology; adaptation mechanisms and efforts towardsimproving scientific understanding.India-Us NewsWealth Creators: India has emerged among thefour fastest wealth creator countries in the world andits growth momentum is expected to gather furthersteam going forward, according to the annual GlobalWealth Report of the Boston Consulting Group. Thereport lists the US, China, the UK and India as the66 | July 2011 Communiqué

eportnations showing the largest absolute gains in wealthin 2010.India-US Bilateral Investments: India and the UnitedStates have agreed to ‘fast-track’ technical negotiationsfor an early conclusion of the bilateral investmentagreement they are negotiating.Cut in Import Duty on American Pistachios: Indiahas agreed to slash duty on import of Americanpistachio from 30 % to 10 %, according to the UStrade office.Corporate WatchGE India to invest Rs 700 cr: GE India, the subsidiaryof US-based industrial giant General Electric, willinvest around Rs 700 crore to set up a multi-productmanufacturing facility at Chakan near Pune.Amul to spread wings: The cradle of India’s WhiteRevolution, the Kaira District Cooperative Milk Producers’Union Ltd, or Amul Dairy, plans to enter the US andEuropean markets, by setting up manufacturing basesoutside India.Momentive R&D centre in Bangalore: US-basedMomentive Performance Materials Holdings LLC (formerlyGE Bayer Silicone), a specialty chemicals and materialscompany, will open a new regional business headquartersand a global R & D centre in Bangalore.Aditya Birla - Columbian Chemicals deal: The AdityaBirla Group has acquired the Atlanta-based ColumbianChemicals Company. The acquisition, which catapultsthe Aditya Birla Group to the world’s top carbon blackproducer, was made at Rs 3937 crore.NBRI’s Global Aliance: The Lucknow-based NationalBotanical Research Institute has entered into a globalalliance with the Indian subsidiary of US-based ProterraInternational for developing bio-fertilizers from organicwaste.Moser Baer Solar Ltd: Moser Baer Solar Ltd has signedan agreement with Munro Solar for the distribution of itssolar photovoltaic modules in the United States.Aecom Buys Green Building Firm in India: AecomTechnology Corp., a US-based technical and supportservicescompany, has acquired Spectral ServicesConsultants for an undisclosed sum. Spectral is aDelhi-based mechanical, electrical and plumbinggreen-building consultant; its projects include DelhiInternational Airport and the TCS office complex inAhmedabad.Mindlance opens Chennai Office: Mindlance, a NewJersey-based IT infrastructure service provider, is settingup an office at Chennai, as a part of its ongoingexpansion in India.PE Investment: The investment of $500 million in Indiansteel pipe manufacturer Welspun group, by US-basedApollo Global Management, clearly indicates that Indiais an unavoidable destination for global private equitymajors.Carlyle invests in Visen Industries: International assetmanager, The Carlyle Group, has invested $25 millionin emulsion manufacturer Visen Industries through anaffiliate.Foreign investments in Indian MFs: India has allowedforeign investors other than FIIs and NRIs to invest upto $10 billion in equity schemes of Indian mutual funds.The $10-billion investment ceiling is meant for a newcategory of qualified foreign investors or QFIs. Thesecover individuals, companies and pension funds thatare neither Non-Resident Indians (NRIs) nor ForeignInstitutional Investors (FIIs) and their sub-accountsregistered with SEBI.Zydus acquires US pharma co: Ahmedabad-basedZydus Cadila is acquiring a US-based generic pharmacompany for $60 million, which also includes purchaseof two generic drugs – Micro-K and Potassium ChlorideER capsule products.Mahindra Aerospace: Mahindra Aerospace Pvt. Ltdis scouting for a technology partner to make aircraftcomponents at its proposed plant in Bangalore. Theirfocus is on an expedited certification process, equityas well as technical collaboration.IBF Members In The NewsDr Reddy’s Labs: Dr Reddy’s Laboratories has launchedthree generic drugs in the US market. The drugs areused to treat central nervous system disorders andwere all approved by the US drug regulator recently.Jubilant drug discovery pact: Jubilant DiscoveryServices Inc., a US based subsidiary of Jubilant LifeSciences Co, has entered into a drug discovery alliancewith Janssen Pharmaceutica N.V. to deliver preclinicalcandidates to Janssen. The alliance is set to span aninitial period of 3 years and will focus on multiple targetsin neuroscience.TCS to Boost US Staff: Tata Consultancy ServicesLtd. expects to hire more than 1,200 Americans thisfiscal year through March 2012 to diversify its talentpool as well as counter anti-outsourcing sentiment inthe US. Tata Consultancy, India’s largest outsourcingcompany by sales, has nearly 1,900 local employeesin the United States.Communiqué July 2011 | 67

EastWorld Environment Day5 June, Jamshedpur, Bhubaneswar, BalasorePlantation of saplings in BhubaneswarIn Jamshedpur, World Environment Day was observedin keeping with the global theme of 'Nature at yourService'. Ms Himani Pandey, Deputy Commissioner ofPolice, flagged off a walkathon. Tree planting, launch ofjute bags to kick start the ‘No Plastic’ campaign, andthe release of a booklet titled 'Facts on Environment'were other highlights of the event.CII Odisha State Council and Yi Bhubaneswar Chapterorganized a ‘Plant a Tree- Plant a Life Campaign’and planted more than 100 saplings to mark WorldEnvironment Day.Fifty fruit bearing saplings were planted in the ‘Go-GreenCampaign’ in Balasore.BiharHR Conclave16 June, PatnaThe HR Conclave, with the motto of orchestrating thebackbone of a company’s profitable improvement byaptly grooming the ‘human potential’ had Mr AnjaniAnjani Kumar Singh, Principal Secretary, HRD, Bihar; Nirmallya Ghosal,Chairman, CII Bihar State Council; and Dr U K Singh, DirectorGeneral, IIBM Patna, at the HR ConclaveKumar Singh, Principal Secretary, Human ResourceDevelopment, Bihar, as the Chief Guest.Skill Development: Focus Bihar23 June, PatnaThe Roundtable on Skill Developmentdiscussed how Bihar can develop intoa major skill empowered territory. MrM V Subbhiah, Janardan Singh Sigriwal, Minister forPast President, Labour Resources, Bihar, was the ChiefCII, andChairman, Guest, while Mr M V Subbiah, PastNSDC President, CII, and Chairman, NationalSkill Development Corporation (NSDC) and Mr DilipChenoy, MD & CEO, NSDC, also spoke.ChhattisgarhManagement with a Difference14 June, RaipurA special session on ‘Management with a Difference’with Swami Anubhavanandaji highlighted the need andrelevance of value-based management in the presentcomplex and fast changing environment.JharkhandSafe Work Culture10 June, JamshedpurThe seminar on ‘Towards Optimising Safe Work Culture’focussed on Safety, Industrial Hygiene and Job Stress.Experts also gave recommendations on BehavioralSafety, Fire Safety and Road Safety.Focused Improvement Concept16 June, JamshedpurKobetsu Kaizen, or the Focused Improvement pillarof TPM, minimizes the types of losses with activitiesthat maximize the overall effectiveness of equipmentprocess and plant. A workshop was held on Bottom LineImprovement through Focused Improvement Concept.OdishaMaterial Planning10 June, BhubaneswarThe training programme on Material Planning for68 | July 2011 Communiqué

egionsManufacturing Competitiveness provided participants abetter understanding of material management conceptsand best practices.Food Mart10 June, BhubaneswarFood Mart, a Buyer – Seller Meet on Food Processing,focussed on the scope of foodprocessing in India, agro processing,branding, and market linkages. Mr KN Khatai, Commissioner-cum-Director,Directorate of Industries, Odisha, wasthe Chief Guest.Interactive Session onBalasore15 June, BalasoreIn an interactivesession with Dr AB Ota, Collector &District Magistrate,Balasore, membersd i s c u s s e dt h e o v e r a l ldevelopment ofthe city.Workshop on Environment Law24 June, BhubaneswarThe Workshop on Environment Laws, organised inassociation with the CII-ITC Centre of Excellence forSustainable Development, enabled the participants tounderstand the environment legal requirements andsubsequently strengthen their environment compliancestatus through appropriate implementation.West BengalInteractive Session on Japan3 June, KolkataDr A B Ota, Collector & DistrictMagistrate, Balasore; andArindam Gupta, Chairman, CIINorth Odisha Zonal CouncilRanaveer Sinha, Chairman, CII Eastern Region; Akitaka Saiki,Ambassador of Japan to India; and R K Agrawal, Deputy Chairman,CII Eastern Region, in KolkataMr Akitaka Saiki, Ambassador of Japan to India,addressed CII members on ‘Indo – Japan StrategicPartnership: Towards mutually complementarydevelopment.’North Bengal: Destination Next4 June, SiliguriSession on North Bengal in SiliguriA session on ‘North Bengal – The Destination Next’discussed the development and future of NorthBengal.Session with Partha Chatterjee22 June, KolkataMr Partha Chatterjee, Minister ofCommerce and Industry, in the newgovernment of West Bengal, interactedwith industry members on creating along-term strategy for the economicgrowth and industrial development ofthe state.Port Infrastructure & LogisticsPartha Chatterjee,Minister ofCommerce &Industry, WestBengal24 June, HaldiaThe seminar on Port Infrastructure & Logistics deliberatedon transloading, a procedure through which draftproblems can be addressed. Experts at the seminarsaid that transloading is the future of the Haldia DockComplex.Investment Awareness24 June, KolkataThe seminar on Investment Awareness deliberatedon the Dos and Don’ts for investments in banking,insurance, primary and secondary markets andmutual funds, company deposits, and the buy-backprocess.Interactive Session on SMEs30 June, KolkataMr Lakhsman Guguluthu, CEO, BSE-SME Exchangehighlighted the benefits of listing under the BSE-SMEplatform. He also spoke about Market Maker SEBIGuidelines.Communiqué July 2011 | 69

egionsNorth EastAssamCII meets Chief MinisterThe North Eastern regionand Assam are now areas ofincreasing importance. Two CIIdelegations called on Mr TarunGogoi, Chief Minister of Assam,to congratulate him on his thirdconsecutive electoral victory andto discuss areas where CII couldcooperate with the governmentto work for the development of the state.On 24 June, a CII delegation led by Mr Nayan ManiBorah, Chairman, CII North East Council, and MD,Oil India Ltd, with other members including Mr AbhijitBarooah, Co-Chairman, CII North East Council, and MD,Premier Cryogenics Ltd, Mr Dipak Chakravarty, Chairman,CII Assam State Council, and MD, Numaligarh RefineryLtd, Dr Bhupati K Das, Immediate Past Chairman, CIIAssam State Council, and Ms Nellie Ahmed Tanweer,Member, CII North East Council, and Managing Trustee,Maria’s Public School, met Mr Gogoi.Mr Borah said that the last decade reflects the growthstory of the state and the election results demonstratethe mandate of the people for peace and prosperity. Headded that confidence among industry and corporatesis high and a stable government will generate greaterinterest in the state. Being the largest economy in theNorth East, Assam has to show the way for others toemulate, he said.Earlier, on 7 June, another delegation, which included DrBhupati K Das, Mr Abhijit Barooah, Mr Ashish Phookan,NorthTarun Gogoi, Chief Minister of Assam, with (L-R) Nellie Ahmed Tanweer, Member, CII North EastCouncil, and Managing Trustee, Maria’s Public School, Indrani Kar, Deputy Director General, CII,Abhijit Barooah, Co-Chairman, CII North East Council, and MD, Premier Cryogenics Ltd, Nayan ManiBorah, Chairman, CII North East Council, and CMD, Oil India Ltd, Dr Bhupati K Das, Immediate PastChairman, CII Assam State Council, and Dipak Chakravarty, Chairman, CII Assam State Council, andMD, Numaligarh Refinery Ltd.Chairman, Tourism Panel, CII Assam State Council, andMD, Assam Bengal Navigation, and Mr Anupam Deka,Chairman, MSME Panel, CII Assam State Council, & MD,SRD Group, called on Mr Gogoi in Guwahati.The Chief Minister emphasized that the state’s policyimperatives were based on the concept of inclusivegrowth. The development of small and cottage industries,and the economic well being of artisans working on bellmetal, handicrafts, jewellery, and pottery, was thereforea priority.The CII delegation apprised Mr Gogoi on the CII themeof Business for Livelihood this year, and assured himof CII’s keenness to work with the government on along-term strategy for sustaining economic growth anddriving investment and job creation in the state.The action areas placed before Mr Gogoi includeHealth, Education, Skill Development, Entrepreneurship,Manufacturing with a special focus on MSMEs,Infrastructure, Agriculture and Food Processing. TheChief Minister said his government would roll out variousinitiatives relating to these areas in a phased manner.CII HRM Summit22 June, ChandigarhThe HRM Summit 2011, themed‘Leading the Next Wave of Growthin India,’ discussed the new role ofevolving leadership and the needfor accelerating the talent in pacewith business development. Mr AquilBusrai, Chairman, HRM Summit,and CEO, Aquil Busrai Consulting,and Group Chief HR Advisor, JindalAquil Busrai,Chairman, HRMSummit, & GroupChief HR Advisor,Jindal Steel &PowerVinod Sawhny,Executive Director& CEO, BeetelTeletech LtdSteel & Power, called for industryinstitutioncollaboration to createquality employable skill power andgroom leaders for tomorrow. MrVinod Sawhny, Executive Director &CEO, Beetel Teletech Ltd, said thatmanagement partnership betweenorganisations and HR managers wouldenable the transformation of humanassets into financial assets reflectingon the company balance sheets.70 | July 2011 Communiqué

egionsEdu Summit 201129-30 June, ChandigarhThe CII Edu Summit focused onthe effective implementation of RTE,strengthening the link between schooland vocational education to boostskilled labour input in the economy,and financing models in education.Addressing the conference, Mr KapilSibal, Union Minister of Human ResourceDevelopment, announced the roll outof the National Knowledge Centre toconnect 31000 colleges in the next2 years. The Centre will also provide1100 courses, which have already beendeveloped, to the students free of charge, he said. TheMinister added that, for school education, a NationalMission has been set up, which will use technologyto the fullest.Fully supportive of the CII agenda of agenda of integratingskills with education, Mr Sibal said his Ministry too hasinitiated the process of developing a National VocationalEducation Qualifications Framework (NVEQF) andproposes industrial training courses in 9th and 10thgrades in specific subjects.Emphasizing the need for forging linkages betweenindustry and academia, Mr Vijay Thadani, Chairman, CIINorthern Region, and CEO, NIIT Ltd, described CII’sforth-coming project - the University–Industry Congress,engaging with Vice Chancellors of 25 Universities. CIIwould also take delegations to universities in Britainand Australia. On the policy side, CII has submittedits recommendations on two important Bills on HigherEducation – the National Commission for HigherEducation, and the Research Bill, he said.Mr Sibal released a report titled ‘Catalyzing Growth:Education Sector in the Northern Region’ preparedjointly by CII and PwC.Coinciding with the conference, a two day displayprovided synchronization between knowledge andapplication in education, bringing business, academiaand students together.Realty 201110 June, New DelhiThe 7th edition of Realty 2011- an InternationalConference on Real Estate, focused on growing realestate needs, supported by strong macroeconomicfundamentals, which will necessitate additional amountof liquidity into the system. Encouraging small investorsDr Sudhir Kapur, Chairman, CII NR Committee on Skills & Education; Harpal Singh,Conference Chairman and Mentor & Chairman Emeritus, Fortis Healthcare Ltd; Kapil Sibal,Union Minister of HRD; Dhiraj Mathur, Executive Director, Pricewatershouse Coopers PvtLtd; and Vijay Thadani, Chairman CII (NR) and CEO, NIIT Ltdto invest, mopping up large sums through REITs (RealEstate Investment Trusts) and REMFs (Real EstateMutual Funds), and use of green technology were keyrecommendations.Mr Sunil Kumar Singh, Jt Secretary (Housing), UnionMinistry of Housing & Urban Poverty Alleviation, spokeof introducing the single window system, and providingaffordable housing for the urban poor, and associatedinfrastructure. The conference highlighted the needfor effective implementation of the Jawaharlal NehruNational Urban Renewable Mission (JNNURM), integrateddevelopment of infrastructure services, securing linkagesbetween asset creation and maintenance for long termproject sustainability.A report titled, ‘Future Cities- the choices that we maketoday’ prepared jointly by CII and Grant Thornton lookedat how Indian cities should address the challenges ofsustainable growth, quality of life and climate change.Anshuman Magazine, CMD, CB Richard Ellis South Asia Pvt Ltd;Sunil Kumar Singh, Jt Secretary, Housing; and Harpal Singh,Conference Chairman, Realty 2011 and Mentor & ChairmanEmeritus, Fortis Healthcare LtdMembership ConnectMr Vijay Thadani, Chairman, CII (NR) traveled to differentstates in the region to interact with members on statespecific issues to set up CII’s micro agenda. He sharedCII’s multi pronged strategy for the year to build asustainable, futuristic and inclusive North.Communiqué July 2011 | 71

egionsMeeting with Omar Abdullah, Chief Minister of Jammu & KashmirIn Jammu & Kashmir, Mr Thadani met Mr Omar Abdullah,Chief Minister, and presented the CII Skills Study reportfor nine districts in the state. Skilling, Agriculture andTourism have been identified as three core areas forJ&K.In Himachal Pradesh, Mr Thadani informed membersabout unique CII services such as the online portalcalled My CII.Mr Thadani met with Mr Rajendra Bhanawat, ManagingDirector, RIICO Ltd, in Jaipur, and identified 5 areasimperative to state growth: state-level reforms; skilldevelopment and education; infrastructure; agriculture,and water. Mr Thadani also disclosed that CII will soonset up a skills development centre at Bhiwadi for whichland has already been allotted by the government.CII is setting up four Centres of Excellence on Skillsin the Northern Region and five University-IndustryPartnerships, including one in Uttar Pradesh, saidMr Thadani, at the interaction in Uttar Pradesh. Meanwhile,the Confederation is starting a skill developmentprogramme in association with the British Council andAditya Birla Group in Sitapur district, to train 1,500students of industrial training institutes (ITI) students intwo years, he said.Mr Thadani, met with Mr Subhash Kumar, Chief Secretary,Uttarakhand, and discussed the CII agenda in the state.Identifying MSMEs and Competitiveness, SkillDevelopment and Education, Environment, PolicyAdvocacy and Affirmative Action as the five coreareas of work in Uttarakhand, he said the focuswould be on rigorous implementation of the pricepurchase preference policy for MSMEs, linkingUttarakhand to the Eastern Freight Corridor, andcreation of Special Tourism Zones.Sharing the CII agenda with members in Jalandharand Amiritsar, Mr Thadani said CII will set up aSpecial Task Force for Affirmative Action in Nawanshahrand consider training 1500 underprivileged youth inPunjab in 2011-12. To attract investment into the state,CII is organising ‘Destination Punjab’ in Amritsar inOctober 2011, he said.ChandigarhDrug Abuse Day26 June, ChandigarhCII observed Drug Abuse Day by organizing plays onthe disastrous consequences of Drug Abuse at the NGO,Snehalaya, a home for children at risk. The inmates wereeducated the children about various health hazards andthreats of drug addiction. Garments, shoes and sportsequipment were also distributed to the children.DelhiMeeting with Sheila Dikshit30 June, ChandigarhVijay Thadani, Chairman, CII (NR), with Sheila Dikshit,Chief Minister of NCT of DelhiVijay Thadani, Chairman CII (NR), with Subhash Kumar,Chief Secretary, UttarakhandA CII delegation led by Mr Vijay Thadani, Chairman, CII(NR) called on Ms Sheila Dikshit, Chief Minister of NCTof Delhi. The delegation briefed her on the initiativesplanned by CII Northern Region specifically for Delhi.The Chief Minister agreed to form a Joint Task Force withCII to work for the sustainable industrial development of72 | July 2011 Communiqué

egionsthe state. She also asked CII to organize programmesfor SMEs in Delhi.HaryanaEnergy Efficiency16 June, FaridabadHaryana has energy savings potential of 622.4 M.Under the CII-BEE series, a workshop on ‘EnhancingCompetitiveness through Energy Efficiency’ shared bestpractices in the Auto Component sector.Jammu & KashmirInspiring Young Hearts17 June, SrinagarHighlighting the importance of entrepreneurship,interpersonal and communication skills in today’sprofessional world, Mr. Vijay Thadani, Chairman, CII (NR)and CEO NIIT Technologies Ltd. inspired 100 youngpersons at the Business School, Kashmir University.Solar Lanterns for Leh RehabilitationSenior staff from the MCM DAV College for Women donating31 Solar Lanterns for Leh Relief Rehabilitation to RM Khanna,Past Chairman, CII (NR)SouthInteractive Session with Mr Anand Sharma3 June, Bangalore11June, HyderabadRajasthanClimate Change & Renewable Energy16 June, JaipurDiscussing the modalities of a greenand clean India, the conferencefocused on Climate Change,Renewable Energy and GreenBuildings. Dr Jitendra Singh,Minister for Energy, and MrRam Lal Jat, Minister of Statefor Environment and Forest,Rajasthan, the Guests of Honour for theconference, released a report on‘Green Energy less CO2.’Computer Training for Police Personnel20 June - 25 June, JaipurA week-long basic computer training programme wasorganised to curb increase in cyber crimes, and creditcard and other frauds.Uttar PradeshHow to be a Star PerformerDr Jitendra Singh,Minister for Energy,Rajasthan24 June, LucknowThe workshop guided individuals to discover ways tosharpen their abilities and achieve desired results. Thepurpose of the session was to bring about a behavioralchange in managing professional matters which inturn lead to a significant increase in performance andproductivity.expressed concern about the rising food inflation, andcalled for reinventing Indian agriculture.Members’ Meets10- 24 June: Bangalore, Mysore, Vishakhapatnam,Hyderabad and PuducherryRP Singh, Union Secretary, Industry & Commerce; Anand Sharma,Union Minister for Industry & Commerce; and TT Ashok, Chairman,CII (SR), at the interaction in HyderabadThe interactive sessions with Mr. Anand Sharma,Union Minister for Commerce & Industry, addressedvarious issues related to industry and trade. Mr SharmaMembers’ Meet in BangaloreCommuniqué July 2011 | 73

egionsMr T T Ashok, Chairman, CII Southern Region, sharedthe various initiatives / activities planned by CII SouthernRegion during 2011-12, with CII members in differentcities across the region.Conference on Mining24 June, HyderabadSession on Japan16 June, ChennaiMr Akitaka Saiki, Ambassador of Japan in India, duringhis visit to Chennai, met CII members to exchange ideason further strengthening bilateral co-operation.Andhra PradeshNext Gen Finance Leaders8 June, HyderabadThe seminar gave an insight on finance-led transformation,and CFO challenges and solutions in the new economy.It also discussed corporate governance in sectors suchas IT, pharma and biotechnology.Delegation to UK20 – 21June, HyderabadA CII delegation visited the UK. Ms J. Geeta Reddy,Minister of Major Industries, Andhra Pradesh, made anelaborate presentation on the industrial policy initiativesof the state to industrialists in the UK. The delegationvisited Brunel University and their innovation centersand discussed possibilities for collaboration. Threetrade delegations have agreed to visit Andhra Pradeshto explore investment opportunities in the State.Session on Republic of Korea22 June, HyderabadMr. Kim Joong – Keun, Ambassador of the Republic ofKorea, described the economic and growth scenario ofhis country and briefed members on Korean investmentand trade.College Excellence Mission23 June, HyderabadUnder the Hyderabad College Excellence Cluster, amission visited ITW and Mahindra & Mahindra, toshowcase the best practices of the manufacturingindustry to college faculty.Mission members at ITW IndiaP. R. Naik, Executive Director, BEML; G. Srinivas, Jt Secretary,Mines; Jay Galla, Chairman, CII Andhra Pradesh; and Tushar Pandey,Group Executive VP & Country Head, YES BankThe conference, organized in association with theGovernment of Andhra Pradesh, focused on theopportunities available in the state for the industriesassociated with the mining sector. Mr G. Srinivas, JointSecretary, Union Ministry of Mines, shared the new policyof the Government to improve and reduce the country’sdependence on import of cooking coal.KarnatakaThe Women Context7 June, BangaloreSrilatha Batliwala, Scholar Associate, Association for Women’sRights in Development; Priya Chetty-Rajagopal, Convener, WBLF,and VP & Partner, Stanton Chase International, and Meena Ganesh,MD and CEO, Pearson Education ServicesThe launch of ‘The Woman’s Room’, organized by theWomen Business Leaders Forum (WBLF) on ‘The WomenContext – Definition of Happiness and Success,’ debatedand deliberated on the changing definition of happinessand success in today’s fast paced world.Conference on XBRL24 June, BangaloreXBRL (eXtensible Business Reporting Language) hasemerged as a popular and effective alternative forreporting and analysis in a number of countries, andimplementations are growing rapidly around the world.The conference on XBRL discussed the future of financialreporting and analysis in India.KeralaKerala Rubber Convention-201114 June, KottayamThe conference, with the theme of ‘Sustainable Rubber74 | July 2011 Communiqué

egionsManufacturing & Processing’ discussed the Kerala RubberConvention that would create a platform to showcasetechnology, ideas and solutions in rubber processing stagesand help rubber planters, MSMEs, regional and nationalplayers to attain sustainability and competencies.PuducherryMeetings with Government6 -8 June, PuducherryA CII team ledby Mr T T Ashok,Chairman, CII,Southern Regioncalled on Mr.N Rangasamy,Chief Minister,P u d u c h e r r y,a n d M r. RChandramohan,Chief Secretary,Puducherry, on 7 June to submit a report on the mediumterm agenda for the development of Puducherry. Thereport covers key areas like industrial estates developmentand allied infrastructure, private investment promotion,special incentives for MSMEs, market development andpromotion, human resource development and labourreforms, power reforms, urban renewal, governance, anda revenue model for the state under the GST regime.A day earlier, on 6 June, CII members met Mr RChandramohan, to discuss the constitution of aConsultative Committee to give inputs to the Governmentof Puducherry for the new industrial policy 2012.On 8 June, CII met Mr G Malar Kannan LabourCommissioner, Puducherry, to discuss skill de4velopmentand employment generation.Tamil NaduRetaining Tamil Nadu’s Edge16 June, ChennaiN Rangasamy, Chief Minister, Puducherry,with T T Ashok, Chairman, CII, SouthernRegion; Meenakshi Kumar, Chairman, andK S Shetty, Vice Chairman, CII PuducherryR Dinesh, Vice Chairman, CII Tamil Nadu; T T Ashok, Chairman, CIISouthern Region; C. Shanmugavelu, Minister for Industries, TamilNadu; and N K Ranganath, Chairman, CII Tamil NaduThe roundtable discussed the key findings of the CII -McKinsey & Co. study on ‘Retaining South India’s Edgein India’s Growth Story.’ Thiru C. Shanmugavelu, Ministerfor Industries, Tamil Nadu, said the State Governmentwould come out with a sector-specific industrial policy toaccelerate growth and place Tamil Nadu in the forefrontof development.Tamil Nadu Manufacturing Outlook29 June, ChennaiThe session gave members an opportunity to interactwith top manufacturing industrialists from sectors such asauto & auto components, pumps, textiles, MSME, leather,electronics and education. The session deliberated onhow Tamil Nadu can retain its competitive edge throughquality, design, innovation and next practices.Zones and DistrictsChennaiGreen Walk5 June, ChennaiThe Green Walk on World Environment Day was flaggedoff jointly by Ma Subramanian, Mayor, Corporation ofChennai and Dr Vikram, Film Actor.Finance for MSMEs16 June, ChennaiSeminar on Finance for MSMEsThe seminar reviewed and analyzed the financeavailability and funding opportunities for MSMEs.Lean Manufacturing21 June, Chennai26 June, CoimbatoreThe workshops created awareness on the powerfulconcepts of lean system thinking, and the use of itstools for business growth.CoimbatoreBest Practices Mission20 May, ChennaiA CII mission visited Hyundai Motor India Ltd & SchwingStetter India Pvt Ltd to understand their best manufacturingCommuniqué July 2011 | 75

egionsand supply chain management systems. The participantsalso gained a thorough understanding of the Just in TimeTechnology (JIT) implemented by Hyundai Motors.Session on VAT24 June, CoimbatoreThe session focused on eligibility to credit and utilizationunder Tamil Nadu VAT and CENVAT regulations, refundschemes for exporters of goods and services andoperational challenges, current controversies relatingto credits and practical watch points.ErodeManufacturing Mission17 June, BangaloreThe Mission to Toyota Kirloskar Motors & Tata BPSolar Ltd, Bangalore, gave members an opportunity tounderstand the latest manufacturing techniques.KarurDyeing and Processing Park14 June, KarurThe interactive session was held to understand thefeasibilities of setting up a Dyeing and Processing Parkin Karur.help industries handle the various issues related tologistics.KrishnamachariSrikkanth,Chairman,National SeniorCricket SelectionCommitteeTrichySession with Kris Srikkanth24 June, TrichyThe session with Kris Srikkanth,Chairman, National Senior CricketSelection Committee and well-knownformer cricketer, inspired studentsto be innovative, passionate andpositive to be successful and attaintheir dreams.Quality in Education24 June, TrichyThe session with the CII Institute of Quality highlighted thefundamental standards to be maintained by educationalinstitutions in order to build their reputation.Creative Schools, Developed Nation24 June, TrichyCII Green Walk19 June, KarurThe Green Walk created g awareness about environmentissues amongst the general public, and the ‘Go Green’concept.MaduraiManufacturing Excellence Mission21 June, MaduraiThe mission visited Fenner (India) Ltd & TVS SrichakraLtd to understand their manufacturing excellencepractices.MysoreMeeting of Zonal Past Chairmen15 June, MysoreThe meeting deliberated on a wide range of issuesranging from industrial development to MSME schemesto CSR activities and more.ThoothukudiSmart Logistics Strategies28 June, ThoothukudiThe workshop explored smart logistics strategies toSession on ‘Creative Schools’The session on ‘NextGen Teaching in Schools’ apprisedschool principals and faculty members in and aroundTrichy about the need for imparting new technologyin schools.VishakhapatnamSession on Direct Tax Code Bill2 June, VisakhapatnamThe session on Direct Tax Code Bill discussed thepossible impact of DTC when implemented.Ties with USA6 June, VisakhapatnamAn interactive session with Ms. Katherine Dhanani, USConsul General, Hyderabad, discussed trade andinvestment between the industries in USA andVisakhapatnam.76 | July 2011 Communiqué

egionsWestGoaImproving Process15-16 June, PanajiThe process approach, process-oriented organizationstructure, functional oriented organization structure,concept of efficiency and effectiveness, were discussed,explained and clarified with examples from the Production,HR and Finance functions by Mr P K Bandopadhyay,Faculty, Goa Institute of Management.GujaratInvestment Opportunities in Canada3 June, VadodaraMr Hart Kaminker, Canada-based Barrister and Solicitor,described the issues related to setting up a businessunder the Investor Program (a new Canadian Governmentinitiative) and identified various business opportunitiesin Canada.Interaction on Mining & Labour Safety Act7 June, AhmedabadThe Parliamentary Standing Committee on Mines &Labour Safety Act invited suggestions from the mineowners on the Amendments in the Mines Bill 2011, whichwould be examined by the Committee for necessaryalterations, if any.Workshop on Corporate Etiquettes8 June, BhavnagarThe workshop updated representatives of industries inand around Bhavnagar about the etiquettes followedby different countries.Seminar on Exports22 June, BhavnagarThe seminar updated industries in and aroundBhavnagar about important issues relating to exports,the government perspective on export, avenues forfinance, and logistics for export.Maintech 2011At the Inaugural session of Maintech 201124 June, VadodaraMaintech discussed how critical industrial tools like bearing,pumps, turbines, etc can be made greener and moreenvironment friendly, to meet the emission norms prevalentacross the globe. The focus of the conference was onProactive Maintenance practices related to Bearing.CII-IBM Faculty Development Programme15, 20, 28 June, Rajkot, Surat, Vasad, MehsanaFaculty Development Programmes (FDPs) were conductedin colleges of various cities of Gujarat, such as Rajkot,Surat, Vasad(Vadodara) and Mehsana. The trainingprogrammes trained the faculties to operate the relevantsoftware, giving the institute a platform for collaborationwith IBM and other institutes.Madhya PradeshEnergy Management3 June, BhopalThe training programme imparted awareness abouthow to achieve and maintain optimum energyprocurement, and how to minimize energy costs/wastewithout affecting production and quality.Session on Defence Procurement9 June, IndoreThe exclusive interaction with Rear Admiral A K Verma VSM,Additional Director General, Quality Assurance, broughtthe Directorate of Quality Assurance (DQA), (WarshipProjects), DGQA, New Delhi, and CII members togetherto identify emerging demand for defence equipment, andalso to update members about the vendors registrationprocedure, quality parameters, procurement and inspectionprocedures, payment terms, etc.Industrial Motivation Campaign15 June, ChhindwaraThe campaign was held to identify and motivatetraditional / non-traditional entrepreneurs with potentialfor setting up MSMEs, to lead them towards selfemployment.Mr M L Belwanshi, Acting General Manager,District Industries Centre, described the Madhya PradeshGovernment schemes for entrepreneurs as well as forself employment. Mr V P Shukla, District ProgrammeOfficer, KVIB, Madhya Pradesh, spoke on the PrimeMinister's Employment Generation Programme.Biomass Energy Systems28 June, IndoreThe workshop on ‘Non-Baggasse based Cogenerationfor Solvent Extraction Plants’ was held to encourage thedeployment of biomass energy systems in industry as anCommuniqué July 2011 | 77

egionsalternate to thermal and electrical energy requirementsand also to understand the policy initiatives of thestate / central government to promote biomass basedcogeneration as an alternative mode of energy generationin industry.Maharashtra9th MRM – National Hybrid Cluster3 June, PuneEight companies participating in the Hybrid Cluster areexperiencing extraordinary results after successfullycompleting 1S, 2S and Total Employee Involvement (TEI)practices. This session, attended by representatives ofall the eight participating companies accompanied bytheir respective department heads of Quality, focusedon Quality Assurance (QA) and Quality Control (QC).CII – IIT Industry-Academia Collaboration9 June, MumbaiCII, in collaboration with IIT, organized a seminar onIndustry-Academia collaboration, with a fine focus onR&D. Scholars interested in industry collaboration fortheir research, presented their work to an industrypanel comprising of companies from different areas ofspecialization.Mutual Fund Summit 201122 June, MumbaiConference on Logistics24 June, NagpurWith the theme ‘Moving ahead the logical way,’ theconference underscored the need for infrastructuredevelopment to push the growth engine of logisticsindustries in the Vidarbha Region. The conferencefocused on Nagpur as the next logistical hub. Despiteexcellent multimodal connectivity by air, rail, and roadwith all parts of India, Nagpur still it has a long way togo to achieve optimization of logistic cost to come tothe level of developed economies.Real Estate Conclave24 June, MumbaiAnuj Puri, Chairman, CII Real Estate Conclave, and Country Head,Jones Lang LaSalle; Ajay Piramal, Chairman, Piramal Group;Adi Godrej, President Designate, CII, and Chairman, Godrej Group;and Firdose Vandrevala, Chairman, CII National Committee on RealEstate & Housing, and CMD, Hirco Developments Pvt LtdThe Conclave aimed to identify the steps that need to betaken to decisively integrate the Indian real estate growthstory into the global script. A report, ‘Indian Real Estate– Charting a Global Course: The Essential ecosystem fora Sustainable Future’ was released at the event.BANKing TECH Summit 201128 June, MumbaiH N Sinor, Chief Executive, Association of Mutual Funds in India;Milind Barve, Chairman CII Mutual Fund Summit 2011, and MD,HDFC Asset Management Co. Ltd; Gautam Mehra, ExecutiveDirector, PricewaterhouseCoopers Pvt. Ltd; and U K Sinha,Chairman, SEBIThe Mutual Fund Summit 2011 covered a wide rangeof topics like Distribution Strategies and Regulations,Changing the Face of the Mutual Fund Industry,Exploring New Frontiers, The Domestic and InternationalLandscape, Fostering Growth of the Mutual FundIndustry, and the Way Forward. Inaugurating the Summit,Mr U K Sinha, Chairman, SEBI, also released the CII-PwCReport on ‘Indian Mutual Fund Industry – DistributionSpectrum and the Changing Business Environment.’ TheSummit also included an exclusive CEOs’ InteractiveRoundtable on ‘Opportunities and Challenges: The RoadAhead for the Mutual Fund Industry.’Robert L Lattimore, Executive Director, PricewaterhouseCoopers Pvt.Ltd; N Chandrasekaran, Chairman, BANKing TECH Summit 2011and CEO & MD, Tata Consultancy Services Ltd; Dr K C Chakrabarty,Deputy Governor, RBI; and Praveen Toshniwal, Chairman, CIIWestern RegionThe 6th edition of the BANKing TECH Summit wasinaugurated by Dr K C Chakrabarty, Deputy Governor,Reserve Bank of India, who also released the CII –PWC Report on ‘Changing Rules of the Game throughTechnology.’78 | July 2011 Communiqué