Africa - New playground for Chindia

February 2010 came with events which shows African love for both China and India.
Africa is clearly being identified as next growth markets and is being eyed by Indian and Chinese companies for expansion. We have seen news of active acquisition in field of Oil and Gas and also automobiles, example Mahidra and Tatas setting up shops in South Africa as part of MEA region strategy.
Next in line is telecom business landscape. Chinese and Indian players are currently first and second biggest markets by subscribers in the world and growing at a fast pace.
Wireless story has been successful in both the countries, and private wireless brands like Bharti and Unicom have made healthy balance sheet. There is surely an interesting scene building up in telecom in Asia region. Global telecom brands are actively looking options to enter both these markets whereas domestic telecom brands need to look outside to expand for growth. Bharti aggresive bid for MTN confirmed global ambitions of Indian players to buyout in other markets.
What best can be options for expansion than Middle East and Africa region. MEA telecom landscape had been monopoly driven by state owned incumbents till late, but with MEA countries opening market for new players in both fixed and mobile space, telecom opportunities are showing in ample.Market previously controlled by State incumbents, limited telecom services, low teledensity are just good starters for any telecom players to jump on the opportunity.
Therefore, for China and Indian telecom players, MEA region is a good bet, seeing region proximity, telecom congomelarate opening in multiple countries in MEA, valuations, opportunity are some of parameters to lure them for acquisitions.
An invisible race has just started between Chinese and Indian players to enter MEA market, with Bharti bidding for Zain African operations and China Unicom bidding for Nigeria Telecom.Valuations of both these deals are high like $10bn for Zain and $2bn for NITEL, still these valuations are seen positive by analysts for these players.
I am seeing telecom landscape in MEA and Chindia region wherein, you will have few big brands controling major of the market say 5 years down the line. This is in assumptions that M&A in Indian telecom landscape will kickoff as expected in 1-2 year timeframe.
Africa is surely next playground for Chindia telecom brand to develop and showcase their business muscles.

Google threatens to exit China..Really!!!

Here comes one more piece of thriling news in 2010.... Google, one of the fast growing company threatens to exit China, one of the fastest growing economy!!! give me a break

Story of censorship and rule of hitlership in not a new thing in China.Google entered the same China knwoing all this really well. Then one fine morning it wakes up and says...Hey!! I was actually not aware of such a thing like innocent school boy not knowing that shouting is punishiable crime in school ;)
And it happens, Google faces some issues as yet another company in China and it cried Foul...it cant get funnier than it.
Why did such a giant took that big leap knowing that water is not clean in there..and if you are theree in water why shout that you are getting wet due to water around.
This is 2010 PR stunt for this giant which again gives it much required freee attention, increase Brand value and trust me brand identity is a big money business in millions of $$$$..
you get highest hits, SEO, analyst coverage talking about your great products for free while writing about the pain to faced in China.
And I have no qualms with Google, after all I am impressed with their marketing strategy ;)

They surely Rock as always!!!

Infosys buys Axon for $753mn

Finally, IT giant announces its strategic acquisition of Axon, SAP consulting for $753mn all cash deal. There has been lot of talk about Infy planning acquisition since it was sitting on lot of cash and required some strategic inorganic growth.

With Axon, Infy is expected to gain strong foothold in SAP consulting market, a high paying service offering and also it will help diversifying its revenue contribution coming from US. Axon has its 55% revenue coming from Europe and 45% coming from US geos. It also has operations in Malaysia.

On other hand HCL too has announced its $20mn acquisition of Control Point, telecom software services vendor.

IT giants are increasingly looking for inorganic growth to increase their presence. This can also be seen as Indian players dominance in IT versus Chinese counterpart. Chinese IT companies are still in stage wherein they are playing resourcing game, on other hand Indian IT players are moving into value chain game with strategic acquisitions.

Olympics 2008 in China- What a opening!!

I was really amazed by seeing opening ceremony organised by China at Olympics 2008 in Beijing.
For simple thing which we saw, the fire cracker show, it took 4 years of practise to organise crackers fired from 1000 locations in Beijing to display those spectacular looking show. Not to forgot other opening ceremony show...all was great!!
China has surely proved it that it has come of ages and is surely stepping fast in developed country league

New transport policyin China to reduce pollution

China has recently introduced new transport policy to reduce pollution and be better prepared for Olympics 2008 in Beijing.
As per the new policy, most Beijing vehicles will only be allowed to operate on alternating days from July 20 to Sept. 20 to reduce air pollution during the Olympic Games.Cars with odd-numbered license plates will operate on one day while those with even-numbered license plates will operate on others. This system was succesfully implemented during the 2004 Games in Athens.
But this idea has some loopholes. One clear idea is to buy one more car with other number, odd or even. Though only rich can afford this idea.
I think more work for home should be encourage for profile which doesnt require always to be in office. This can be good way to keep some cars off from road.

China is set for Olympics 2008

New Beijing expressway after odd/even transport policy

Global Environment Awareness

With global warming started showing danger signals, countries are making keen investment to save environment.
Latest is China- They have decided to control number of mountaineers climbing on Mt Everest every year. With 1000s of climber taking on the peak, Mt Everest is witnessing pollution which is leading to fast melting of glacier. China now will be issuing permits to limited climbers every year.

Global Inflation riding on the bull now

Inflation- Thats a global word now.
China, India are feeling most pressure from it and fighting to cool it down from double digit figure to sub 5% levels. With rising crude prices and OPEC not in mood to increase demand, I guess these two emerging markets will have to struggle for some more time with Inflation numbers.
Western markets too are feeling the pinch now, people in west are reducing their long drives and expenditures.
Interesting thing however is that dreaded word "Recession" is no more heard. There is still sense of optimism in global market of things recovering back in medium term and everything will be alright.
I feel too there are chances of the above facts. OPEC meeting last sunday resulted in divided views by members which means crude is soon going to see correction in prices. Saudi and Kuwait are pro-demand increase so as to fill the demand-supply gap.

Blanket ban on shopping plastic bag in China

Sometimes it is good how communist form of govt can really benefit country and environment..China has imposed complete ban on plastic bags from June 1,2008.
World Environment Day should give some thought to Indian govt to think about this option in India too. I would say we should promote jute made bags since they are enviromently friendly and also promote employment oppys.

Telcos growing across boundaries

Where will be next billion subscribers coming from?

As an execution step towards the answer, telcos are all set with cross boundaries growth.

AT&T, one of the early entrant in Indian market made a decent profit of around $250mn after selling its stake in Idea back in early millenium. Thats a different story that current value of same stake is more than $2billion.

AT&T is standing right there waiting for its chance to enter Indian market again. Phenomenon of strong Indian telecom story is definately attracting major player across geography.
The reason is beyond just putting its dot in emerging market map. It is about getting balance sheet strong by matching up slow growth in current geography with fast emerging market for players in saturated market.For emerging market player, it is more to quench their thirst for larger play and ambitious plans.
With Middle east too witnessing fast growth in telecom sector after recent liberisation by the government, players in those region have realised the importance of moving out from reginal shell and spread its business in similar markets.
Etisilat recently confirmed its plan to enter Indian market through an Indian player, it is already in talks with Spice Communications, Datacom to name a few.
Also, there has been lot of unseen synergy which players like MTN and Reliance are working on, after Bharti opted out of race for MTN.

Similarly, players in middle east are actively working on buying stake in Indian wireless players and new greenfield players. This reaction from Middle east players came into picture after Vodafone's strategic acquisition of Hutch India to get emerging market as part of its growth plan. Major players like MTN, Qatar Telecom , Etisilat are all eyeing pie in Indian market since their hoem market will soon start witnessing lot of comeptition from new players. It becomes very important to open international strategy to make sure revenue dependency is not region focused.
Interest developed by middle east players in India and vice versa has opened one more dimension of growing business attractions between middle east and India for telecom landscape. This is an exciting step since it was not predicted or talked about option.
Major telco like Bharti and Reliance have been trying continously to enter Middle east market. They have been trying by bidding for licences but in vain. So now, they see ruote through mergers and acquisition as the best way to spread their expansion plans.
With western players actively eyeing Indian market, middle east players working aggresively to move out from regional shell and Indian players working on their global expansion plans, Telecom landscape is clearly geting more eventful and exciting.

Oil..Oil...Oil.. That is latest news in every circle

Today crude is trading at $130 and see no sign of retreat to lower number. OPEC still claims that they see no problem in supply-demand gap, whereas countires across globe are witnessing huge oil crisis.Most effected are ofcourse emerging nations like India and China. Commodity is highly dependant on oil prices since majority of tranportations means are based on oil and slight increase in oil results in a direct propotionate hit on inflation numbers.
Analyst say that they see some corrective measures coming into picture by year end, and that crude should be down to $80/barrell price.
Now, what has to be seen if how economies are going to take the balanced approach to minimise the impact of crude hit

China Inflation at 8.7%

China came out with their inflation figure and it is 8.7% which is actually a high figure. Inflation is directly linked to price rise including commodity prices which effects country growth trend.
This shows that in globalised world, however secluded a country remains cannot be left alone from global economic signs like slowdown or growth.

China too has been impacted by slowdown in western world and has seen 15-20% correction their markets too. Time to see how China copes with its image to maintain its country business in coocon environment policy.

Formula1 - Delhi - 2009 ..... Its Official!!

India has won the rights to host Formula One race in 2009... its official now

Indian govt have to be on their toes now for getting required infrastructure in place within 2 years timeframe which is a big challenge. But I feel we can do it :)

Its race against time now... China we are going to be there too ;)

Chinese govt all set to check population

Yesterday on BBC ( http://www.bbcworld.com I watched this documentary on how China is keeping check on its growing population and at the same time taking care of citizens.
The documentary covered one aspect featuring incentives given by chinese govt to people who have girl child. In China, it is law to have only one child. People who go for second child are not given any incentives. On other hand, people who get girl as their first child are allowed to go in for second child. The reason being most of China is base on agricilutre and rural areas, where parents support in their old age from their son.Govt funds education of girl chidl till she grows up to look after her parents.
The second aspect showed how young people are moving towards big cities like Beijing to work and earn more money.They covered one family whose boy has moved to Beijing to work as labour and earn $4 a day from which he saves money and send it back to its family in village.

With Olympics due in 2008, China is moving fast with its infrastructure and development.
China surely catching up fast with global economy... India any lessonss??

West -- Outsourcing is globalisation;Accept it

Outsourcing is no more sales pitch of Chindia. It is globalisation.West started the phenomenon to save cost in IT leveraging Indian IT skills, and now when Indian companies are developing new innovative models, wherein they are providing customers ways to provide better services to their customers.

SO, ultimately it is people in west who are getting the advantage.And it is not just service advantage, but even employment in countries like US/Europe will increase. If companies will gain through better efficiencies, they in turn will hire more people to cater to their growing business.