INDUSTRIALIZATION

Industrialization is a process of social and economic change whereby a human society is transformed from a pre-industrial (an economy where the amount of capital accumulated per capita is low) to an industrial state. This social and economic change is closely intertwined with technological innovation, particularly the development of large-scale energy production and metallurgy. Industrialization is also related to some form of philosophical change, or to a different attitude in the perception of nature, though whether these philosophical changes are caused by industrialization or vice-versa is subject to debate. The world's first industrialized city was Manchester in northwest England. HISTORY OF INDUSTRIALIZATION History of industrialization the beginning of 19th century marked the dawn of the machine age before that goods are manufactured by hand. E.g. Cotton Mill of Philip & Lee, Manchester- Boulton & Watt- 1801. Cite Industrialle- Tony Garniers1904. INDIAN INDUSTRY Indian Industry Indian economy is one of the fastest growing in the world. Its GDP growth rate is 9.2% with a GDP of rupees 177000 crore, which is the fourth largest in the world. India, the 12th largest economy in the world possesses a foreign exchange reserve of USD.177.00 billion. The country is fast adapting to industrialization, the speed of which is measured as the second fastest in the world. The major industries of India are automobiles, cement, chemicals, consumer electronics, food processing, machinery, mining, petroleum, pharmaceuticals, steel, transportation equipment, and textiles. In the post liberalization era the country has capitalized on its vast pool of educated, English speaking manpower to become a major power in outsourcing, Information Technology, financial and biomedical technology research, banking & insurance, and real estate development.

INDUSTRIAL DISPUTES ACT, 1947: The Industrial Disputes Act, 1947 came into existence in April 1947. It was enacted to make provisions for investigation and settlement of industrial disputes and for providing certain safeguards to the workers. The Act contains 40 sections divided into 7 chapters. Chapter I deals with the title, definitions, etc. Chapter II contains the various authorities under the Act. These authorities include Conciliation Officers, Labour Courts and Tribunals. Chapter III contains the main scheme of the Act such as reference of disputes to Labour Courts and Industrial Tribunals. Chapter IV lays down the procedure, power and duties of the authorities constituted under the Act. Chapter V contains provisions to prohibit strikes and lock-outs, declaration of strikes and lock-outs as illegal, and provisions relating to lay-off and retrenchment and closure. Chapter-VI contains provisions of various penalties under the Act. Chapter VII contains miscellaneous provisions. CLASSIFICATION OF INDUSTRIES On The Basis Of Source of Raw Materials used: 1. Agro based: cotton, woolen, jute, silk textile, rubber and sugar, tea, coffee, edible oil. 2. Mineral based: iron and steel, cement, aluminums, machine tools, petrochemicals. According To Their Main Role: 1. Basic or key industries which supply their products as raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting. 2. Consumer industries that produce goods for direct use by consumers sugar, toothpaste, paper, sewing machines, fans etc. On The Basis Of Capital Investment: 1. Small scale industry: having rupees one crore as the maximum investment on the assets of a unit. 2. If investment is more than one crore on any industry then it is known as a large scale industry.

On The Basis Of Ownership: 1. Public sector: owned and operated by government agencies BHEL, SAIL etc. 2. Private sector industries owned and operated by individuals or a group of individuals TISCO, Bajaj Auto Ltd., Dabur Industries. 3. Joint sector industries which are jointly run by the state and individuals or a group of individuals. Oil India Ltd. (OIL) is jointly owned by public and private sector. 4. Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both. They pool in the resources and share the profits or losses proportionately such as the sugar industry in Maharashtra, the coir industry in Kerala. Based On the Bulk and Weight of Raw Material and Finished Goods: 1. Heavy industries such as iron and steel. 2. Light industries that use light raw materials and produce light goods such as electrical industries.

MANUFACTURING INDUSTRY
Manufacturing industry refers to those industries which involve in the manufacturing and processing of items and indulge in either creation of new commodities or in value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serves as a finished good for sale to customers or as intermediate goods used in the production process. EVOLUTION OF THE MANUFACTURING INDUSTRY Manufacturing industries came into being with the occurrence of technological and socio-economic transformations in the Western countries in the 18th-19th century. This was widely known as industrial revolution. It began in Britain and replaced the labor intensive textile production with mechanization and use of fuels. WORKING OF MANUFACTURING INDUSTRY Manufacturing industries are the chief wealth producing sectors of an economy. These industries use various technologies and methods widely known as manufacturing process management. Manufacturing industries are broadly categorized into engineering industries, construction industries, electronics industries, chemical industries, energy industries, textile industries, food and beverage industries, metalworking industries, plastic industries, transport and telecommunication industries. Manufacturing industries are important for an economy as they employ a huge share of the labor force and produce materials required by sectors of strategic importance such as national infrastructure and defense. However, not all manufacturing industries are beneficial to the nation as some of them generate negative externalities with huge social costs. The cost of letting such industries flourish may even exceed the benefits generated by them.

MANUFACTURING INDUSTRY IN INDIA The manufacturing industry in India has all the qualities which enhance economic development, increase the productivity of the manufacturing industry and face competition from the global markets. The Manufacturing industry in India is believed to have the potential of improving the economic condition of India. INDIAN MANUFACTURING INDUSTRY: RESEARCH FINDINGS Studies conducted on the manufacturing industry have concluded that India has a working population of 75%. Out of this, only 600 million have acquired education till middle school. Due to this reason, the manufacturing industry in India, which is labor intensive, can provide the requisite number of employment units in the country. Studies have indicated that the productivity of the manufacturing industry in India is approximately 1/5th of the productivity in the manufacturing industry of United States of America. It is about as compared to the productivity levels in South Korea as well as Taiwan. Labor productivity has escalated only to a small extent in case of India in comparison to United States of America, on the contrary, labor productivity has increased manifold in countries like Taiwan and Korea. MANUFACTURING INDUSTRY IN INDIA AND EXPORTS Exports of manufactured goods in India accounted for 75% in comparison to exports of manufactured goods all over the world. Owing to the performance manifested by the export sector in India, the scenario indicates that there is less competition in the manufacturing segment. Absence of competition is also established by the fact that in spite of reducing the tariff in the early and mid 90s, India continued to be one of the protected economies of the world. Contribution of India's export towards international market grew from 05% to 0.7% during 1990 to 2000. During the same period, Malaysia, China, Thailand and South Korea, registered almost double increase in exports.

AGROBASED INDUSTRY
The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilize and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses. The agro-industry mainly comprises of the post-harvest activities of processing and preserving agricultural products for intermediate or final consumption. It is a well-recognized fact across the world, particularly in the context of industrial development that the importance of agro-industries is relative to agriculture increases as economies develop. It should be emphasized that food is not just produce. Food also encompasses a wide variety of processed products. It is in this sense that the agro-industry is an important and vital part of the manufacturing sector in developing countries and the means for building industrial capacities. The agro Industry is broadly categorized in the following types:  Village Industries owned and run by rural households with very little capital investment and a high level of manual labour; products include pickles, papad, etc.  Small scale industry characterized by medium investment and semiautomation; products include edible oil, rice mills, etc.  Large scale industry involving large investment and a high level of automation; products include sugar, jute, cotton mills, etc. The development of agro-based industries commenced during pre-independence days. Cotton mills, sugar mills, jute mills were fostered in the corporate sector. During the post-Independence days, with a view to rendering more employment and using local resources, small scale and village industries were favored. The increasing environmental concerns will give further stimulus to agro based industries. Jute and cotton bags, which have begun to be replaced by plastic bags, have made a comeback. It is the right time to engage in mass production of low cost jute/cotton bags to replace plastic bags.

The agro industry helps in processing agricultural products such as field crops, tree crops, livestock and fisheries and converting them to edible and other usable forms. The private sector is yet to actualize the full potential of the agro industry. The global market is mammoth for sugar, coffee, tea and processed foods such as sauce, jelly, honey, etc. The market for processed meat, spices and fruits is equally gigantic. Only with mass production coupled with modern technology and intensive marketing can the domestic market as well as the export market be exploited to the fullest extent. It is therefore imperative that food manufacturers understand changing consumer preferences, technology, with modernization, innovation and incorporation of latest trends and technology in the entire food chain as well as agro-production, the total production capacity of agro products in India and the world is likely to double by the next decade. India is the second largest producer of food in the world. Whether it is canned food, processed food, food grains, dairy products, frozen food, fish, meat, poultry, the Indian agro industry has a huge potential, the significance and growth of which will never cease. Sea fishing, aqua culture, milk and milk products, meat and poultry are some of the agro sectors that have shown marked growth over the years. Linkages between members of the food supply chains and prevailing policies and business environments to take advantage of the global market.

INDIAN MINING & MINERALS INDUSTRY

The metallurgical and mineral industries provide the basic raw material for industrial development. India is a country with vast geographical diversities that provide a variety of mineral and metal resources. India has known deposits of over 2000 minerals, and currently produces about 90 minerals including metallic, non-metallic and fuel, and also some 20 minor minerals. The country's mineral sector at present operating over 3300 active mines producing coal, iron ore, limestone, lignite, bauxite, copper, lead, zinc, etc. The production per year is about 650 million tonnes contributing a whopping Rs.60, 000 crores to the national economy. The sector employs 290 million workers in the organized and unorganized sectors together. Apart from this figure, about 70 million workers are indirectly employed depending on mineral industry. The government had introduced various mineral and mining policy resolutions including the Minerals and Metals (Research and Development) Act to provide adequate guidelines for the sustainable development of Indian mining industry. Analysis of Indian Mining Industry STRENGTHS:  With the aim of encouraging investment in mining industry in India, the government offers a wide range of concessions to investors engaged in the mining activity.  India is the world's largest producer of mica; third largest producer of coal and lignite; and also ranks among the top producers of iron ore, bauxite, manganese ore and aluminum.  The availability of cheap labour for the industry offers a major attraction to the global players.  India offers low labour and conversion costs.  India still has a large quantity of untapped high quality reserves.  India exports iron-ore to China and Japan on a large scale.  Strategic location: India's Proximity to the developed European markets and fast-developing Asian markets for export of steel, aluminum also offers an added advantage.

WEAKNESSES:  India still does not have properly developed infrastructure facilities in the sector.  The mining technology is often outdated.  Low innovation capabilities  Labor force is highly un-skilled and inexperienced.  Lack of R&D efforts and training and development

CASE STUDY
Bharat Petroleum Corporation Limited
Bharat Petroleum Corporation Ltd. (BPCL) is one of the oldest public sector petroleum and refining organizations in India. The company was also the pioneer to introduce LPG as the cooking fuel in India. Having three refineries, BPCL is a Fortune 500 Company engaged in Refining, Marketing and Distribution of Petroleum products and exploration of Oil / Gas. BPCL has a Paid up capital of Rs. 300 crores with Government of India having 54.93% share and the rest being with Foreign Institutional Investors (FIIs), Financial Institutions, Employees and other Investors. BPCL produces a diverse range of oil products, from auto fuels, petrochemicals and solvents to aviation turbine fuel & specialty lubricants and markets them to hundreds of industries and several domestic & international airlines. It caters to the needs of a large customer base with around 8000 industrial customers both from the public as well as the private sector. According to the result of a survey conducted by Hewitt Associates in January 2001, Bharat Petroleum was ranked among the top 10 employers in India. The organization has set a benchmark for its efforts in Human Resource Development and in acknowledging and treating its employees as an intellectual asset. The turnover of HPCL for the year 2005-06 was Rs 74,044 crores. Bharat petroleum is also the first public sector company to implement Enterprise Resource Planning successfully with value chain and customer relationship management.

RELIANCE INDUSTRIES LIMITED

Reliance Industries Limited (RIL) is India's largest private sector company. It is one of the most reputed companies excelling in many areas like:      Exploration and Production Petroleum Refining and Marketing Petrochemicals Textiles Retail

EXPLORATION AND PRODUCTION RIL is one of the very few companies engaged in deep water drilling, exploration and production of oil and gas and working towards bridging the gap between demand and supply of energy in India in congruence with the national priorities. RIL is also the first Indian private sector company to discover large natural gas reserves. RIL holds 34 domestic Oil & Gas acreages and has commenced test production in a block in Yemen. RIL also has 5 coal bed methane (CBM) blocks. RIL has recorded the success rate of 74 % in terms of the discoveries made till date. RIL also has a joint venture with British Gas and ONGC, (RIL having 30% interest) to develop the proven Panna-Mukta and Tapti oil and gas fields.

PETROLEUM REFINING AND MARKETING The processes undertaken by RIL for petroleum refining are: Alkylation Bottom of the Barrel Processing Catalytic Cracking Delayed Coking Distillation (Atmospheric and Vacuum) Hydro treating Oxygenating

RIL has the following types of refineries: Topping Hydro skimming Cracking Coking

PETROCHEMICALS Petrochemicals business of RIL covers: Polymers Polyester Polyester intermediaries Other petrochemicals including Liquefied Petroleum Gas

Reliance's polymer business is integrated with its cracker facility at Hazira and its refinery at Jamnagar. Reliance manufactures polypropylene, polyethylene and Poly Vinyl Chloride. Reliance is among the top 10 plastic producers of the world. "Sclairtech" Solution Polymerization Process of Du Pont, Canada has been successfully adopted by the RIL. Reliance is the largest producer of polyester fiber and yarn in the world and is also undertaking R&D in the sector. RIL has its own 'Product Application and Research Centre (PARC)' at Mumbai, catering to the needs of plastic processing industry and is fully equipped with state-of-the-art technology. RIL has also well-established marketing and distribution network consisting of regional offices, resident sales offices, dealers and agents throughout India ensuring a wide market reach and easy accessibility for the customers.

INDIA ENERGY INDUSTRY

The energy sector has become a matter of more concern over the years due to the fast rising petrol and diesel prices over the Globe. Heavy reliance upon the conventional fossil fuels has give birth indefinite headaches for the economies over the globe. So the need of the hour is to rely more upon the non-conventional sources like Sun, Wind and Bio Mass. According to Ministry of Non-conventional Energy (MNES) Sources, the renewable sources accounted for 7169 MW, representing 5.7 per cent of the total power generating capacity of the country as on 31st December 2005. This included 7088 MW of grid interactive and 81 MW of distributed power through Biomass Gasifier and energy recovery from waste. In addition, based on renewable sources 2195 villages and 594 hamlets have been provided with electricity. As many as 38 lakh family type biogas plants, 3902 community/institutional/night-soil-based biogas plants and 35.2 million improved chulhas have been set up. These have helped to meet the decentralized energy needs of the people in rural and remote areas.

NON- CONVENTIONAL ENERGY INDIA Wind Power Out of the total contribution of renewable sources to the power generating capacity, wind alone accounts for a major chunk of 4434 MW. According to industry sources the figure would have crossed 5200 by March 31, 2006. In fact over the past few years wind energy industry has developed fast, thanks to active participation of the private sector, a package incentives and promotional policies of the MNES and financing through Indian Renewable Energy Development Agency (IREDA). The capacity addition by wind farms has far exceeded the 10th Plan target. Fourth in the world after Germany, USA and Spain in wind power generation, India's potential for wind power has been assessed at 45000 MW assuming 3 per cent land availability. The potential for grid-interactive wind power would be around 15000 MW if sites having wind power density in excess of 300 Watt/sq. m at 50-metre hub-height are considered in keeping with international practice. Wind power turbines and components are manufactured indigenously by a dozen manufacturers and after meeting local needs are even exported. In areas dependent on diesel-based electricity wind-diesel hybrid projects are being taken up. Water pumping windmills are also being promoted.

Solar Energy The contribution of solar power at 1748 MW may not be much compared to the vast potential. There are two routes to tap solar energy-one is the thermal and the other is photovoltaic. The focus of the solar thermal power programmed is on research, design, development, standardization and demonstration on all aspects of the current and emerging technologies. A large solar dish has been set up under a research project at Latur in Maharashtra to provide process heat for milk pasteurization. Similarly a number of R&D projects have been taken up to tap solar power for different purposes, including food processing, drying of farm commodities, water heating and cooking. Six lakh solar cookers have been produced. Two thousand concentrating dish cookers and 12 community cookers and 1.5 million sq m of collector area for water heating systems have been achieved. Under the solar photovoltaic programmed 55000 street lighting systems, 3.4 lakh home lighting systems and 1566 kW of power plants have been set up. Besides these, 5.4 lakh solar lanterns have been produced. One of the constraints to greater exploitation of solar energy is the low efficiency of photo voltaic cells. Research should be stepped up to increase the efficiency levels of PV cells. Bio-fuel The bio-fuel programmed has evoked wide interest and the Southern Railways, for instance, have been running two passenger locomotives with 5 per cent blend of bio-fuel. They have planted 75 lakh Jatropha saplings along the railway line. Some States have made available wasteland to Self Help Groups for energy plantations. At the recent South Asia Conference on Renewable Energy President Dr Abdul Kalam observed that the power generation capacity should be increased from present level of 130000 MW to 400000 MW by 2030 to meet the development targets. Of this increase, 50,000 MW should come from hydel projects, 50000 MW from nuclear plants and 55000 MW from large solar energy farms. The balance should come from other non-conventional sources and conventional coal or gas based thermal power plants.

AUTOMOBILE INDUSTRY IN INDIA

Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the foreseeable future. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the autocomponent and auto ancillary industry then the number goes even higher. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Heavy vehicles section is dominated by Tata-Telco, Ashok Leyland, Eicher Motors, Mahindra and Mahindra, and Bajaj. The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., and Yamaha etc. In the initial years after independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Some of the major characteristics of Indian automobile sector are:     Second largest two-wheeler market in the world. Fourth largest commercial vehicle market in the world. 11th largest passenger car market in the world Expected to become the world's third largest automobile market by 2030, behind only China and the US.

TELECOM INDUSTRY IN INDIA

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. The telecom sector is also afflicted by a number of restraints. These include:  Sluggish pace of reform process.  Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost.  Limited spectrum availability. But notwithstanding these constraints, telecom sector has undergone a revolution in the past decade and has played a major part in bridging the ruralurban divide.

TOURISM INDUSTRY IN INDIA

Tourism industry in India is on a great boom at the moment. India has tremendous potential to become a major global tourist destination and Indian tourism industry is exploiting this potential to the hilt. Travel and tourism industry is the second highest foreign exchange earner for India, and the government has given travel & tourism organizations export house status. Travel & tourism industry's contribution to Indian industry is immense. Tourism is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in India both directly and indirectly through its linkage with other sectors of the economy. According to an estimate total direct employment in the tourism sector is around 20 million. Some of the salient features of the Tourism Policy are:  The policy proposes the inclusion of tourism in the concurrent list of the Constitution to enable both the central and state governments to participate in the development of the sector.  No approval required for foreign equity of up to 51 per cent in tourism projects. NRI investment up to 100% allowed.  Automatic approval for Technology agreements in the hotel industry, subject to the fulfillment of certain specified parameters.  Concession rates on customs duty of 25% for goods that are required for initial setting up, or for substantial expansion of hotels.  50% of profits derived by hotels, travel agents and tour operators in foreign exchange are exempt from income tax. The remaining profits are also exempt if reinvested in a tourism related project. Apart from this, government has taken several other measures for the promotion of tourism. A multi-pronged approach has been adopted, which includes new mechanism for speedy implementation of tourism projects, development of integrated tourism circuits and rural destinations, special capacity building in the unorganized hospitality sector and new marketing strategy.

TEXTILE INDUSTRY IN INDIA

Textile Industry in India is the second largest employment generator after agriculture. It holds significant status in India as it provides one of the most fundamental necessities of the people. Textile industry was one of the earliest industries to come into existence in India and it accounts for more than 30% of the total exports. In fact Indian textile industry is the second largest in the world, second only to China. Textile Industry is unique in the terms that it is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing. Textile industry in India has vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women and the disadvantaged. Indian textile industry is constituted of the following segments: Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles, Woollen Textiles, Handicrafts, Coir, and Jute. Strengths of Indian textile Industry  India has rich resources of raw materials of textile industry. It is one of the largest producers of cotton in the world and is also rich in resources of fibers like polyester, silk, viscose etc.  India is rich in highly trained manpower. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very reasonable rates.  India is highly competitive in spinning sector and has presence in almost all processes of the value chain.  Indian garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. Outlook for Indian textile Industry The outlook for textile industry in India is very optimistic. It is expected that Indian textile industry would continue to grow at an impressive rate. Textile industry is being modernized by an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. India can also grab opportunities in the export market. The textile industry is anticipated to generate 12mn new jobs in various sectors.

HOTEL INDUSTRY IN INDIA

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. In recent years government has taken several steps to boost travel & tourism which have benefited hotel industry in India. These include the abolishment of the inland air travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft. The government's recent decision to treat convention centre s as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel rooms. According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fueling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years. This will affect the competitiveness of India as a cost-effective tourist destination. To overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms, currently in different stages of planning and development, which should be ready by 2012. Hotel Industry in India is also set to get a fillip with Delhi hosting 2010 Commonwealth Games. Government has approved 300 hotel projects, nearly half of which are in the luxury range. The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and midmarket hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

PHARMACEUTICAL INDUSTRY IN INDIA

Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. It provides employment to millions and ensures that essential drugs at affordable prices are available to the vast population of India. Indian Pharmaceutical Industry has attained wide ranging capabilities in the complex field of drug manufacture and technology. From simple pain killers to sophisticated antibiotics and complex cardiac compounds, almost every type of drug is now made indigenously. Indian Pharma Industry is playing a key role in promoting and sustaining development in the vital field of medicines. Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and vaccines is met by Indian pharmaceutical industry. A number of Indian pharmaceutical companies adhere to highest quality standards and are approved by regulatory authorities in USA and UK. Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units and is very top heavy. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. There are also 5 Central Public Sector Units that manufacture drugs. These units produce complete range of pharmaceuticals, which include medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. India is largely self-sufficient in case of formulations. More than 85% of the formulations produced in the country are sold in the domestic market. Some life saving, new generation under-patent formulations are imported, by MNCs, which they market in India. Over 60% of India's bulk drug production is exported. The balance is sold locally to other formulators. The future of Indian pharmaceutical sector looks extremely positive. Indian pharma companies are vying for the branded generic drug space to register their global presence. Several Indian pharmaceutical companies have acquired companies in the US and Europe and many others are raising funds to do so. For example, Ranbaxy acquired Romania's Terapia, Ethimed NV of Belgium and GSK's generic business Allen SpA in Italy. Dr Reddy's acquired German generic drug maker Betapharm. Companies like Glenmark Pharma, Lupin, Aurobindo and Jubilant Organosys are on the lookout for lucrative acquisitions.

CASE STUDY
BIOCON
Biocon is a fully integrated biotechnology enterprise focused on the development of biopharmaceuticals. With its outstanding scientific knowledge pool, proprietary technologies and world-class facilities, it is delivering "value differential" solutions to its partners and customers in more than 50 countries. Biocon is committed to find biotechnology solutions for the patients of diabetes and cancer. On March 8th 2007, Biocon launched its Nephrology Division and a comprehensive range of renal therapy products. This Nephrology Division will find solution to kidney disorders through progressive research and new therapies. While doing this, it will use the highest standards of biotherapeutics. The company is achieving excellence through:     Intellectual asset creation State-of-art manufacturing capabilities International benchmarks for the quality and regulatory systems Development of Human Resource through training, mentoring and empowerment

The company was founded on 29th November 1978. It has emerged from an enzyme manufacturing company to a fully integrated biopharmaceutical enterprise, which is focused on healthcare. It possesses a rare combination of proprietary fermentation technology and research skills. In 1979 it became the first company to manufacture and export enzymes to USA and Europe. In 1996, the company's proprietary fermentation plant had commercial success that led to 3-fold expansion. In 1998, the company became an independent entity when Unilever agreed to sell its shareholding in Biocon to the promoter. In the year 2000, Clinigene, which is a subsidiary of Biocon, was set up to pursue clinical researches and developments. And in the year 2003, Biocon became the first company to develop human insulin on a Pichia expression system. In 2004 it introduced new generation bio-insulin-INSUGEN. In 2006, Biocon launched India's first cancer drug- BIOMAb EGFR.

QUARTERLY REPORTS OF BIOCON Quarterly Results (Rs. in Millions) Dec 2006 Sept 2006 (3 rd quarter) Sales Turnover Other Income Total Income Total Expenditure Operating Profit Interest Gross Profit Depreciation Tax Reported PAT 2140.75 22.69 2163.44 1471.86 691.58 19.33 672.25 160.99 36.16 475.1 (2nd quarter) 2191.06 10.46 2201.52 1651.37 550.15 18.45 531.7 156.52 15.45 359.74

Dec 2005 (3 rd quarter) 1723.97 19.88 1743.86 1272.39 471.46 3.68 467.79 57.04 82.82 327.93

ANNUAL RESULTS OF BIOCON Annual Unaudited Results (Rs. in Millions) Sales Turnover Other Income Total Income Total Expenditure Operating Profit Interest Gross Profit Depreciation Tax Reported PAT (12 Months) 6,463.62 157.99 6,621.61 4,535.67 2,085.94 19.93 2,066.01 180.92 141.22 1,743.88 (12 Months) 5,018.82 15.64 5,034.46 3,405.45 1,629.01 15.68 1,613.33 138.53 228.08 1,246.73 % Changes 28.79 910.28 31.53 33.19 28.05 27.14 28.06 30.6 -38.08 39.88

AVENTIS PHARMA LIMITED

In May 1956, Aventis Pharma Limited was established as Hoechst Fedco Pharma Private Ltd. With 50.1% holding of paid-up share capital, Sanofi-aventis is the major shareholder of Aventis Pharma Ltd. Aventis is currently present in over 100 countries with its global headquarters in Paris, France. The total employee strength worldwide is about 100,000, including 11000 scientists. Product portfolio of Aventis includes medicines in the area of cardiovascular disease, thrombosis, diabetes, bone disease, epilepsy and cancer. It has 20 research centers in three continents, with R&D budget of about 4 billion euros. Aventis Pharma Ltd. India has 2 state-of-art manufacturing facilities at Ankleshwar (Gujarat) and at Verna (Goa). The company is working to bring innovative products so as to make the necessary treatments more widely available. In India it has employee strength of about 1840. QUARTERLY RESULTS OF AVENTIS Quarterly Results (Rs.in Millions) Dec 2006 Sept 2006 Dec 2005 (3 rd (2nd quarter) quarter) 2572 2364 156 90 2728 2454 1885 1745 843 0 843 43 262 709 1 708 42 227 (3 rd quarter) 2375 78 2453 1656 797 0 797 43 257

Sales Turnover Other Income Total Income Total Expenditure Operating Profit Interest Gross Profit Depreciation Tax

ANNUAL RESULTS OF AVENTIS Annual Unaudited Results (Rs. in Millions) (12 Months) (12 Months) Sales Turnover 8,581.00 7,864.00 Other Income 295 218 Total Income 8,876.00 8,082.00 Total 6,340.00 5,719.00 Expenditure Operating Profit 2,536.00 2,363.00 Interest 0 1 Gross Profit 2,536.00 2,362.00 Depreciation 172 168 Tax 913 777 Reported PAT 1,451.00 1,485.00 % Changes 9.12 35.32 9.82 10.86 7.32 -100 7.37 2.38 17.5 -2.29