Kochi termination to cost BCCI Rs 20k cr
New Delhi, Sept. 20: Former IPL commissioner Lalit Modi maintains that termination of contract with Kochi team will cost BCCI Rs 20k crores. "Kochi now being terminated - a further loss of 1500 crores to BCCI. Compounded by reduction in Media Rights. My estimate 2000 crores. Who is responsible for this mess now? Current President and outgoing President for sure. Who will they blame now for this. Where is the accountability and who will take responsibility," a PTI report quoted Modi as writing on his twitter page. Terming himself as a self-proclaimed whistle blower about the shady dealing related to Kochi, Modi wrote in his blog: "Now, 18 months later, the BCCI has terminated the Kochi contract on the basis of an unpaid bank guarantee which, according to new President, N. Srinivasan, "....is not capable of being remedied."

"As a consequence, the BCCI now stands to lose more than US $300 million by virtue of reduced commercial revenue because Kochi's suspension means fewer teams and therefore games - not to mention a loss of credibility for the IPL itself," he said. Modi stated that he now wants to know as to who will own the responsibility for this mess. "It is a situation that could have been avoided but what it shows is that the unsubstantiated accusations made against me suggesting I imposed 'onerous' conditions purely to try and manipulate the bidding process towards my preferred bidders has been shot to pieces."  

India’s tea imports down 22%
New Delhi, Sept 20: India's tea imports declined by 22% to 5.19 million kg in the April-July period of the current fiscal, a PTI report said referring to data released by the Tea Board. The country had imported 6.62 million kg of the brew in the same period last fiscal. India, the world's largest consumer of tea, imports the leaves solely for the purpose of re-export to other countries. The dip in imports thus signals less re-exports. India's tea imports from China, Kenya, Malawi, Vietnam, Sri Lanka, Iran, Argentina and Nepal declined in the first four months of the 2011-12 fiscal.

Imports of tea dipped by 19% in July, 2011, to 1.67 million kg from 2.06 million kg in the year-ago period. In the January-July period of the current calender year, imports of the brew fell by 19% to 9.42 million kg from 11.64 million kg in the same period of the previous year. India, the second biggest producer of tea in the world, accounts for about 28% of global tea production and 14% of trade. There are about 1,600 tea estates in India. The industry employs more than two million people.

FICCI’s high hopes on trade with GCC
Dubai, Sept. 20: India is looking at Gulf Cooperation Council (GCC) states, notably Qatar, with great expectations and hopes to improve trade volumes with the region. "There has been a massive growth in India's business with Middle East nations and it is poised to grow in view of the growing requirements of both sides,"  Additional Director (Arab states & Central Europe) Goutam Ghosh of the Federation of Indian Chamber of Commerce and Industry (FICCI) has said, according to a PTI report. "While Indo-Qatar trade was worth only USD 1.1 billion in 2005, it grew to approximately USD 5.6 billion at the end of the first quarter of this year," Ghosh told the Gulf Times on the sidelines of a meeting organised by FICCI in association with the local Indian Business Promotion Network (IBPN).

He said India is focusing on expanding its share in the small and medium enterprises (SME) segment of GCC states Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which the country considers the strength and backbone of its economy. "More than 60 per cent of our industry comprises SMEs and their share is expected to grow further in coming years as more and more entrepreneurs are keen on investing in SMEs," he said.

Ghosh observed that the trend in GCC states, including Qatar, to shift their focus from hydrocarbon industries will help attract more investors from countries like India. "One of the top priorities of the FICCI-led ongoing mission is to increase India's presence in the products and services sector," the newspaper quoted him as saying. With more Indian companies showing interest in the region in diverse areas, India hopes to achieve better results in trade with GCC states in the next few years.

India's skill and expertise in a range of businesses that are familiar and beneficial to GCC entrepreneurs would help the countries record substantial economic growth in the next decade, he said, adding that even while seeking cooperation in setting up joint ventures in both countries, India would help local entrepreneurs gain expertise and knowledge in areas appealing to the locals. "While the UAE used to serve as the hub of all business activities from India, now all the GCC states have built up direct trade with our country," he said.

Private US firms eyeing BRIC market
New Delhi, Sept 20: Private firms in the US plan to target BRIC countries and other fast-growing markets such as Indonesia and South Africa to expand their business over the next one to two years, According to a survey by PwC, a PTI report said. The survey titled, 'US Private Company Trendsetter Barometer', 51 per cent of US private companies with an international presence plan to do business in BRIC countries (Brazil, Russia, India, and China) in the next one to two years.

In addition, 66% of the respondents are targeting other fast-growing markets such as Indonesia, South Korea, South Africa, Poland, Turkey and Mexico. Overall, 74% of the respondents with a global presence have set their sights on emerging and fast-growing markets. The PwC survey captures the views of 236 CEO/CFOs with private companies (128 in the product sector, 108 in the service sector) that report an average enterprise revenue of US$ 278 million annually.

The overwhelming reason for foreign expansion was to broaden their customer base, as cited by 80% of the respondents, whereas just roughly one-quarter of the respondents (24%) are eyeing international markets to lower their cost base. Other reasons cited for going abroad include facilitating better servicing of global clients (43%), compensating for slow growth at home (33%), and being where competitors are (26%).

Interestingly, 51% of all the US private companies surveyed plan to do business abroad in the next one to two years and 48% already have an international presence. "Historically, companies expanded into international markets to lower their manufacturing and sourcing costs," PwC Private Company Services practice Partner Ken Esch said. "The international expansion we're seeing now is well beyond cost arbitrage. It's about increasing sales and accessing new markets to grow the top-line. To achieve those goals, many of our clients are looking abroad, compensating for weakened demand at home," Esch added.

The surveyed executives also estimate that during this one to two-year time frame, international sales growth (14.8%) will outpace domestic sales growth (11.6%). The top challenges to operating abroad are finding the right business partners (68%) establishing adequate cross-cultural management (64%) and finding sufficient local talent (56%). Other challenges that were cited by the respondents include security risks (49%), local regulatory requirements (48%) and corruption (46%). These challenges were particularly endemic to doing business in BRIC countries, according to the survey respondents.